St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-27
En1yMAf1 AaAMe 1&au Men and Events
Ilf e. %&GI T1S0s Of Young ST. Paul

the state was to issue the bonds
and turn them over to the railroad
companies at the rate of $4,000 for
every mile graded, but the roads
were to pay the interest and prin-
cipal of all the bonds they received.
Gov. H. H. Sibley refused to deliver
any bonds to the railroad compa-
MES unless they would give first
mortgage bonds, with priority lien
upon their lands, roads and fran
chises in favor of the state. Zone of
the companies applied for a man
damus from the supreme court of
the state to compel the issue of the
bonds without restriction imposed
by the governor. The court, Judge
G. E. Flandrau dissenting, ordered
the governor to issue state bonds
as soon as the companies delivered
their first mortgage bonds as pro-
vided by the constitution.
The bonds of a state without
credit, placed on the market under
such peculiar circumstances, were
not sought after as an investment.
When S2000,000 of the bonds had
been issued not a rail had been
laid and only a few hundred miles
nominally graded. The roads failed,
and all that was left to the state
was the franchises and the linn
tied work which had been done 1t
is not to be wondered at that these
bonds were repudiated.
For while they served as a bas-
is for banking, and the money
passed current in Minnesota, but
was worthless elsewhere In a short
time the banks failed, and this did
not elevate the bonds in the estima-
ton of the people who held their
worthless issue. [ believe the bank
ing house of the late E. S. Edgerton
was the only one that survived, and
that made good the losses of the de-
positors and holders of this state
money.
Every year the number of persons
opposed to the payment of these OBJ
legations became more numerous,
Notwithstanding Gov. Sibley never
ceased to advocate the payment of
every dollar due; and in this he was
supported by many persons in each
party. 1t could not be made a
party issue, for both parties We're
divided on the subject Advocates
for and against their payment were
to be found in every political con-
vention.
p nI.{v- ;Al, l,o1
given Garfield 10000 majority, did
not care to proclaim in their plat
form that it was in favor of a settle
ment of this liability, although a
large number of the party favored
it. In 1881 the Democratic party,
having nothing to lose, boldly an
nounced in favor of any settlement
that could be made with the hold
erS OF the bonds. who in the mean
time had expressed a willingness to
accept fifty cents on the dollar. At
the Democratic convention in 1881 a
plank was inserted in the platform
which was an outspoken expression
in favor Of fair dealing toward the
. bondholders. Having boldly WreS-
tied with this important subject,
the next business was to select a can
didate for governor who was willing
to go before the people as a leader
of 'forlorn hope" and the lot fell
to the writer of this article. l visit
ed numerous points in the state, and
wherever 1 went I was convinced
that a legislature elected on that
issue would never vote to settle
with the holders of the bonds, and 1
communicated my observations to
Gov. j. S. Pillsbury. and told him
that in my opinion the only way to
bring about settlement was to call
an extra session of the legislature.
[ do not know that my recon-
mendation influenced him at all, but
the extra session was called and the
legislature met the question in a
spirit of justice and fairness. By
the provisions of the act the bond
holders were to be paid in money
or other bonds. Gov. Pilisbury con-
ceived the idea that the new bonds
might be repudiated, and in order to
avoid such an event, he sold other
bonds held by the state for the ben
eft Of the schools, and with the
money thus obtained purchased the
new bonds for the schools and paid
the holders of the old bonds in
money This action of the governor
forever settled the question, for no
one in the state will ever dare to
propose the reputation of the bonds
held in trust for the education of our
children.
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