St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-12-03
Gov. Merriam Succeeds in
Placing the Readjustment
Bonds,
and the Railroad Debt Bears
But Three and a Half
Per Cent.
Dramatic Incident in the KC-
ran Murder Case in
Court.
A Bright Nine-Year-Old Tes-
titles Against Her
Father.

held by private parties. These bonds
were issued in 1881 to take up the old
railroad debt that was repudiated. They
were issued for so per cent of the old
debt, with accrued interest added. The
rate of interest was fixed at AZ per
cent, and the state could call them in at
any time after ten years, or could allow
them to remain outstanding thirty years.
These bonds were given for the sum of
s.. 965. 900. but the school fund now
holds S1.9S0,02 OF this amount, while
the sinking fund to provide for these
bonds amounts TO $1,S03, 1882. II. Since
the statement above was made, the sink
ing fund has been increased to such an
extent that now but little over 100000
of these bonds are now outstanding,
and on this amount the interest Will be
reduced per cent after Jan. l.
at the last session of the legislature
bill was prepared at the suggestion of
Gov. Merriam and introduced in the
house by Hon. +. E. Searle, providing
for funding commission, to be made up
of the governor, auditor and treasurer.
1t was made the duty of these gentle
men to call in the old bonds and negO-
tiate new ones at 80 per cent for the
amount. Soon after the legislature adj
journed this committee met and inaug-
urated the work. The new bonds were
Issued with proviso that they could
be called in after five years or
at the end of thirty years, at the option
of the state. This was done for the
reason that it is the policy of Minnesota
to pay off her public debt as rapidly as
possible.
But, while this five-year provision
was and is very good thing for the
state, it did not strike investors so ia
vOrably on that account, and for some
time it seemed almost impossible to
float the new bonds. The work of at
tempting to negotiate the new
315 per ceat bonds was commenced in
Chicago, Gov. Merriam gong down
there in person; but he received no en-
couragementi in the Windy City. and on
his recent trip East he went on to New
York and perfected arrangements with
John /. Blair & Co., by the terms of
which this firm takes hold of the matter.
and OH Jan. l will call III 100000 of
these bonds. for which the new ones
will be given in exchange. An equal
amount will be called Feb. and the
balance on March l.
Now that the whole matter has been
arranged, it seems very simple prop
OSitiOn, but it required a vast amount
of work and no end of patience and ar
gument on thu part of the commission
erS. The trouble all came through the
fact that Minnesota had once repudiat-
ed this debt. On the governors first
trip to New York city he arranged with
Blair IL Co. TO carry out this funding,
but the bank examiner of the Empire
state at this time stepped in. and decid-
ed that the new bonds were not avail
able for savings banks. Argument,
facts and the law were adduced
to 3show him that he was
reversed his decision, aOd on Coy. Mer-
riam'S recent trip the negotiations were
closed with Blair 81 Co., and early in the
new year the state will be paying but
SO per cent interest Oh this remnant of
once colossal debt.
Gov. Merriam naturally feels very
good over this successful cOnSummatiOn
of the work of the funding commission,
as, indeed, he has right to feel, be-
cause of the condition of the money
market and the short time these new
bonds are to run.
The state will save about $4,000 a
year in the way of interest charges on
these bOndS," said the governor yester-
day in answer to question. 1T took a
great deal of work because of the fact
that the old railroad bonds were once
repudiated by the state. Another hard
point to get over was the short time the
bonds are TO run. You see, we can
begin to call in these bonds after five
years, and it is altogether likely that
all of them Will be cancelled within a
few years, as it is the policy of the
state to pay off her debts as rapidly
as possible. The fact that we were able
tOnegotiate these bonds is a high trib
30 Of e.. 81
reason that the situation has beeh sc
East that it has been almost impossible
to negotiate any securities. Blair * Co
will call in 100000 of these bonds Jan
] and 100000 more Feb. /, and the bal
ance March 1. They will exchange the
new ones for the old, and the old bond,
will be cancelled"
The successful floating of the re
mainder of the troublesome old debt o
the state at so low rate of intereS
must be regarded as one of the feature.
of the present administration, and the
passage of the bill providing for anC
authorizing 1t was one of the best act
of the tWenty-SeVenth legislature.
SIN place of the elementary examination
the committee on examinations may at it
discretion accept certificates of successful
examination from other cities or certificate
from educational Institutions of high order
ence."
The report of the committee wa
adopted.
To EconOmiZe.
Mr.. Auerbach brought up the ques
ton of providing Secretary White al
assistant. He thought it reasonable t.
provide an assistant; the board hat
promised him one during seasons of
press of business. He suggested tina
the two assistants allowed the Superin
tendent of schools and the one assistan
allowed the principal of the high schoO
be dispensed with, and that one goo
man be furnished the secretary, VIII
could be called upon to do the work re
Quired by the superintendent and prin
cipal. He made this as business prop
osition. 1t was in the interests of econ
omy. DR.. Bridgman was afraid such
scheme would not work well. Th
superintendent must have an aSSistan
in his Office.
Mr.. Auerbach-There is no reaso
why these officers should not work i
harmony under such an arrangement.
DIR. Bridgman-No; but what is til
need Tor any change?
* Mi. Auerbach-FOr the reason we ar
spending too much money already o
these assistants. There is S125 for til
superintendent ASSISTANTS ana 40
month for that Of the principal of tn
high school. Now, one good man cOul
do the work of the three, as we'll as al
sist the secretary with his work, an
effect a saving of so a month.
1t was decided TO refer the matter
Messrs. Auelbach. Pyle and Bridgma
10 investigate and report.
COngdOn's Concert.
Prof. COngdOn asked the permissio
of the board to train children of Ii
schools so that public concert migi
be given on an early date. He state
that 500 was cleared at the last cOncer
the money being used for purchasin
books for the school library. 1t VIZ
proposed that whatever funds wei
raised by this concert be used for pu
chasing new music for the schools.
Ar Dx-la ot,inotad RI fbncn rafflAli0