Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-11-04
LANDS AND BONDS.

The Act to Apply the Internal Improve
ment Lands to the Payment of the State
Railroad Boz ds.
The people of this state will be called
upon at the election next Tuesday to ap.
prove or reject the proposition to devote
the proceeds of the internal improvement
lands to the payment of the state bonds
issued in adjustment of the old railroad
aid bonds. The following is the law on
the subject:
Ill acs to provide for the Application of
Moneys of the Internal Improvement
Land Fund of the State of Minnesota to
the Payment Of the Principal and Inter-
est of the Minnesota Stale Railroad Ad-
/ justment Bonds.
Be it Enacted in the Legislature of the
State of Minnesota.
Sec. 1. As fast asIany of the internal
the proceeds of the same shall be invested
| thirty-two (32). B of article four ~, of the
/ constitution of the state of Minnesota, and
the same shall be and constitute sinking
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of the principal of the Minnesota state
railroad adjustment bonds, to be issued
under the provisions of an act passed at
the present extra session of the legislature
of the state, entitlad San act providing for
the adjustment of certain alleged claims
against the state;" and the interest on any
bonds or securities in which said fund
shall be invested shall be applied to the
M Of no snfo ~
crues, on the said Minnesota state
railroad adjustment bonds. and all the pro-
creeds of said lands, whether heretofore or
hereafter sold, and whether heretofore in
vested Or hereafter be invested, and held
by the state treasurer, pursuant to said Sec
ton of the constitution, and all interest
which has accrued or may accrue thereon,
or on any OF the bonds or securities in
which the same or any part thereof has
been or may be invested, shall be and re-
main an inviolable fund to be preserved in
the haRds of the state treasurer, the inter-
est to be applied to the payment of inter-
est on the Minnesota state railroad adjust
ment bonds, as it accrues, and the pricipal
to be preserved inviolate as sinking fund,
for the purpose of being applied to the
payment of the principal of said bonds,
at their maturity, until the maturity of
said Minnesota state railroad adjustment
bonds, when it shall be applied to the pay
ment of the principal of said bonds.
Sec. 2. The governor, auditor and
treasurer of state are hereby constituted a
board of sinking fund commissioners, and
are hereby charged with the duty of caus-
ing the provisions of this act to be carried
out, and it shall be their duty to superin-
10, e
cruing on the securities, which are or may
hereafter come into the hands of the state
treasurer under the provisions of said
section thirty-two (32), B, of article four
~, OF the constitution, to the payment of
interest, as it accrues, on said Minnesota
state railroad adjustment bonds, and to
attend to and take care that said fund is
preserved inviolate for the purpose of
this act.
Sec. 8. It shall be lawful to invest any
of the moneys belonging to the said in
ternal improvement land fund in the
bonds to be issued under the provisions of
said act, entitled, "An act providing for
the adjustment of certain alleged claims
against the state.'
Sec. 4. Whenever the principal of the
said Minnesota state railroad adjustment
bonds becomes due and payable at the
election of the state, by the terms thereof
it shall be lawful for said board of sinking
fund commissioners hereby constituted, to
sell and dispose of and convert into cash
the bonds and securities constituting the
said internal improvement land fund, and
apply their proceeds to the payment of
the Minnesota state railroad adjustment
bonds, and to that end the auditor shall
1-ox MT
of the holder of any such bond, which war
rant shall be countersigned by the gov
ernor and paid out of said fund by the
treasurer; and upon the payment of any
such bond by said commissioners, they
each bond so paid the words, "Paid and
Cancelled" together with the true date of
such payment, and each member of said
board shall attach his signature thereto,
aud the same shall be filed in the Office of
the state treasurer as a voucher for such
payments.
Set. s. When any coupons on said Min
neesota state railroad adjustment bonds
are due and payable, the auditor of state
shall draw his warrants in favor of the
holders of coupons, on the treasurer, pay
able at some bank to be designated by
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in the city of New York, payable out of
the interest fund of the said internal i'm
provement land fund, and the treasurer
shall, in sufficient season to meet said
warrant, remit to said bank a sufficient
sum from said interest fund to pay said
warrants. Provided, that if the amount
on hand of the interes t arising from said
internal improvement land fund, at any
time when any coupons on said Minnesota
state railroad adjustment bonds are due
and payable, is sufficient to pay the same
in full, then tho auditor shall ascertain by
computation the pro ratio share of said
intere It fund on hand which each coupon
would be entitled to, and draw his warrant
for such amount in favor of the respective
holders CT said coupons.
Sec. 6. Whenever said Minnesota state
railroad adjustment bonds can, by their
terms, be paid by the state, it shall be the
duty of said sinking fund commissioners
to apply the principal of said internal
improvement land fund, as fast as it accu-
mulates, to the principal of said bonds
and to take up and retire the same.
Sec. z. This act shall be submitted to the
electors of the state of Minnesota, at the