Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1882-01-05
RAILROAD ADJUSTMENT BONDS.

RAILROAD
Thew Are Now In the Hands Of the State Off,
GERS for Signature, Preparing for Issue
About January 2-HistOry Of the Efforts for
Negotiation, Ending in the Issue Of Four and
Half Per Cents.
From the Pioneer PRESS, 24th.
inquiry at the State house elicits the fact
that up to the present time none Ct the Min
nesota State railroad adjustment bonds have
yet been issued and that it is not likely that
any will be issued before the I'd of January
next The claims commission, owing 10 the
necessary absence of the attorney general, will
not have concluded its labors before Bext
| Wednesday, and until that time 1t will be i'm
possible to determine the exact value
| Of the bonds deposited by the several
| holders. or what amount of new bonds shall be
exchanged therefor. None can be issued,
| therefore, till the amount Of deductions to be
| made on account of these claims has been set
| tied. In the meantime, however, the stste
auditor is diligently engaged in making the
necessary preliminary calculations so that as
soon as the claims commission shall have made
| its awards it viii tske but few days to close
up the business All the bonds, some 4, ZOO in
number, have been engraved and delivered
| and large part of them have received the sig
natures Of the governor and secr6-
| tary of state, though but few have
| vet hoen signed by the state audi-
| tor But this work will be done as soon as the
other preparations for the issue Of the bonds
| soall have been completed.
1t will be remembered that the adjustment
| act authorized the governor to settle the old
| bonds By exchanging therefor new per cont.
| bonds, to draw interest about the time when
| tho cid bonds became due. or two
years from 5anuaEy neA5, the interest te 81
to that date But it also provided that if the
| governor could negotiate the adjustment
bonds at less rate of interest than 9 per cent.
he might issue the new bonds to draw infer
! est from January l. .1SS2, and either exchange
| them for the old bonds. with interest calculated
to that date, or sell them in the market and
| pay the old bonds in cash. The governor
| promptly resolved to pursue the latter course.
| Immediately after the passagu-of the act he
| made strenuous efforts TO place the new bonds
| at per cant but soon found that This was
| impossible. In fact, the existing condition q
| the money market was not favorable w tht
| proftsbls negotiation Of q large amount oi
State bonds The holder of nearly half the ole
| bonds Selah Chamberlain, who ct first refused
to accept new bonds ct 8 less rate of interest
| than per cent. as the tproyiGted, finally con.
sented to accept q 4l2 per cent bond5 and il
| was finally resolved to issue the new bonds al
! thls rate Of interest. At meeting held in the
latter part Of November by the board of in
yestment, consisting Of Chief Justice Gllflian
| tue pTeSluSub VI luS DuGi't "a iSSSAtS, SSi
Sibley, the governor, the state aIditor and the
state treasurer, it was decided to invest some ot
| the trust funds of the State in t,s
new adjustment bonds, and the governor was
authorized to use his discretion in the matter.
| It has, therefore, been determined that some
| $500. 900 OF the internal improvement lant
fund, some 100000 of the permanent uni
versity fund and about $50O,000 of the per-
| manent school fund shall be invested in tht
new bonds.
In pursuance of this understanding some O
the Missouri Gs and United States per cents
in these funds have beon sent East Il
be sold at the market price, the proceeds
to be reinvcsted in the new State Gig Dsr cent
bonds. The State viii realize q large premium
on these and other bonds to be sold, and
profit OF from $50, 0,0G0 to 800, 900 will inur
to the several funds from the transaction. NJ
difficulty is likely to be encountered in placin;
all these 412 per cent. bonds at par
About 81 100000 Of the 81 coo. 900 viii b
absorbed in the several trust fGuis abov
mentioned, and the remainder will go to III
bopdhoders. 50, ,000,O0 or more to Selal
Chamberlain and the rest to the other credi
tors vino are entitled to new bonds o
$1,000 or multiples thereof. OF course, whe
! fractional parts of 81 900 are due, these sum
must be paid in cash, and it is only necessar
therefor for the State to sell such an amoun
of bonds as will realize the sum necessary (
pay the $3.50, 600 OF claims to which the Ia,
limits the awards of the commission aud III
fractional parts of 81, 900 due to indivldus
bondholders in excess of tho new bonds whic
they will receive. Probably not more tha
$500, 900 Of cash will be necessary to pa
these.