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-0ld Tes-
titles Against Her
Father.

NCAI. Will pay UuG O12 pOl COhC ihe'AOSU
on the old railroad adjustment bonds
held by private parties. These bonds
were issued in 1881 to take up the old
railroad debt that was repudiated. They
were issued for 80 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 81. 5000 of this amount. while
the sinking fund to provide for these
bonds amounts TO $1,S03 9S2 II. Since
the statement above was made,t sink
ing fund has been increased to such an
extent that now but little over 81, 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. +. f. 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 311a per cent for the
amount. Soon after the legislature adj
iourned this committee met and inaug
urated the work. The new bonds were
issued with a 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 fivc-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
81 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 on Jan. l will call in $780, 200 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 a very simple prop
OsitiOn, but it required Il 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 ~ Co. to carry out this funding,
but the bank examiner OF the Empire
tate at this time stepped in. and ,iecid-
hot = 1,na l,Nv, d. of xyDil
able for savings banks. Argument,
facts and the law were adduced
to show him that he was
wrong, and the bank examiner
reversed his decision, a0d on Coy. Mer-
RAMS recent trip the negotiations were
closed with Blair IL Co., and early in the
new year the state will be paying but
So per cent interest on this remnant of
q once colossal debt.
Gov. Merriam naturally feels very
good over this successful cOnsummatOn
of the work of the funding commission,
as, indeed, he has a 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 &
year in the way of interest charges OF
these bonds" said the governor yester-
day in answer to question. 1T took {
great deal Of work because of the fact
that the Old railroad bonds were once
repuGiated by the state. Another hare
point to get over was the short time the
bonds are TO run. You see, we cal
begin to call in these bonds after five
years, and it is altogether likely tina
all of them Will be cancelled within {
few years, as it is the policy of the
state to pay off her debts as rapidly
ha fo ot tIaaf oil Al
tonegotiate these bonds is a high trib
ute to the credit of Minnesota, for thu
reason that the situation has beelI 81
East that it has been almost Impossible
to negotiate any securities. Blair x Co
will call in $4,000 of these bonds Jan
and $400.0 eco more Feb. l, and the bal
ancc March l. They will exchange thu
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 til
passage Of the bill providing for an
authorizing it was one of the best act
of the twenty seventh legislature.
SIN place of the elementary examination
the committee on examinations may at II
discretion accept certificates of successfr
examination from OtDer clues or Cefl0caIt
from educational institutions of high orde
accompanied by records Of successful exper
ence."
The report of the committee wa
adopted.
To Economics.
Mr.. Auerbach brought up the que!
tion of providing Secretary White a
assistant. He thought it reasonable t
provide an assistant; the board ha
promised him one during seasons of
press of business. He suggested thu
the two assistants allowed the superb
tendent of schools and the one assistar
allowed the principal of the high schot
be dispensed with, and that one goo
man be furnished the secretary, WI
could be called upon to do the work II
qured by the superintendent and pril
cipal. lie made this as business pro-
OsitiOn. 1t was in the interests of ecOl
omy. DIR. Bridgman was afraid such
scheme would not work well. II
superintendent must have an aSSistal
in his Office.
Mr.. Auerbach-There is no reasC
why these officers should not work
harmony under such an arrangement.
DIR. Bridgman-N No; but what Is ii
need Tor any change?
r Mi Auerbach-FUr the reason we a
spending 100 Lucn iIOu0S dlICouG
these assistants. There is SI25 for Il
Superintemdent'S assistants and So
month for that of the principal of Il
high school. Now, one good man cOu
do the work of the three, as well as a
sst the secretary with his work, al
effect a saving of so month.
1t was decided TO refer the matter
Messrs. Auelbach. Pyle and Bridgmi
10 investigate and report.
COngdOH's Concert.
Prof. Congdon asked the permissi
of the board to train children of t
schools so that a public concert mig
be given on an early date. He stat
that 500 was cleared at the last cOnce
the money being used for purchasil
books for the school library. 1t W
proposed that whatever funds we
l,,- fI,ic oo,,oarf lNa mood for M