The Worthington advance., 1882-01-05
RAILROAD ADJUSTMENT BONDS.


They Are Now In the Hands Of the State on.
GERS for Signature, Preparing for Issue
About January 2-History Of the Efforts tcr
Negotiation, Ending in the Issue Of Four and
Half Per Cents
From the Pioneer Press, Oath
Inquiry at the State house elicits the fact
that up to the present time none Of tho 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 to the
necessary absence Of the attorney general will
not have concluded its labors before mex
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 state
auditor is diligently engaged in making the
necessary preliminary calculations go that as
snon as the claims commission shall have made
its awards it will take but few days to close
Up the business. All the bonds some 1000 in
number, have been engraved and delivered
and Il large part Of them have received the sig
natures OF the governor and secre
yet been signed by the state audi.
tor Eut this work will be done rs soon as the
other preparations for the issue of the bontl,.
soali have been completed.
1t will be remembered that tho adjustment
act Authorized the governor to settle the old
bonus by exchanging therefor new per cont.
bonds, TO draw interest about the time when
the Old bonds became due, or two
years, from January next, the intere-t
Of the old bonds to he calculated
to that date. But ii also provided that il the
ronlH tiata fho o6;
bonds 81 less rate Of interest than 5 per cent
he might issue tho bonds to draw inter-
est froil january l. 1882, and either exchange
them FOR tho o4l bonds, with interest calculated
to that date. or sci: them in tho market and
pa. the old bonds in cash. The governor
promptly resolved to pursue the latter course
immediately after the passage of the act he
made stl enuous efforts 10 place the now bonds
a: / per cent. but soon found that this was
Impossible In fact, the existing conditi>u OF
the money market was not favorable W tho
profitable negotiation of large amoun: OF
State bonds. Tho holder Of nearly half the old
bonds, Selah Chamberlain, who at first refused
to accept new bonds at less rate Of interest
than per cent. as the act provided, finally con-
sented to accepta 412 per cent bond, and it
was finally resolved to issue the new bonds at
this rate Of interest At 8 meeting held in the
latter part of November by the board of IL
ycstment, consisting of Chief Justice Gilfillan,
the president Of the board of regents, Gen
NlDicS, tEe SOFoFHOT, tU6 state anu1tOr ana the
state trea urer, it was decided to invest some of
the trust funds Of the State in the
new adjustment bonds, and the governor was
authorized to use his discretion in the matter
It has, therefore. been determined that some
$500, 800 Of the internal Improvement land
fund, some 5000 900 Of the permanent uni
versiy fund and about $500, 900 of the per-
manent school fund shall be invested in the
new bonds.
III pursuance of this understanding sone of
the Missouri Is and United States per cents.
in these funds have beOn sent East to
be sold al the market price, the proceeds
to be reinvcste1 in the new State 412 per cent
bonds. Tho State will realize large premium
on those and r;her bonds to be sold, and
pro,i! 0. from $50, 900 to 800, 900 will inure
to the several funds from the transaction. No
difficulty Is likely to be encountered in placing
al! these l12 per cent. bonds at par
About 81 ,OOO,t 600 of the 81, 600, 900 will be
absorbed III the several trust funds above
mentioned, and the remainder will go to the
bondhoders, So, 1000, 600 OF more to Sclah
Chamberlain and the rest to the other credi-
tors who arc entitled TO new bonds of
81 600 or mnltiples thereof. OF course, when
fractional parts Of 81 900 are due, these sums
must be paid in cash, and it is only necessary
therefor for the State to sell such an amount
of bonds as will realize the sum necessary to
pay the $15O, 600 of claims to which the law
limits the awards of tho commission aud the
fractional parts of 81, 600 due to individual
bondholders in excess Of the new bonds which
they will receive. Probably not more than
$500, 900 Of cash will be necessary to par