The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-09-23

For the purpose of defraying extraor-
binary expenses, the state may contract
debts, but such debts shall never In the
aggregate exceed $3.50, Co.,"
Another clause was put into section 10,
which was as follows:
1.-THE credit Of the state shall never
be given or loaned in aid of any individ-
ual, association or corporation.
1t was the intention of the trainers of
the constitution to prevent the Legislature
from ever using the credit or funds of
the state in aid of any private enter
prise and these provisions effectual1y
accomplished that end.
when they became convinced that the
roads could not be built with the aid
that congress had extended, and as this
work was also looked upon as the only
hope of financial relief the case became
a desperate one, which could only be
remedied by the most extreme measures.
The promoters Of the railroads soon
discovered one, an amendment of one
section of the constitution which prchib-
tied the credit of the state being given
or loaned to any one, and at the first se5-
Vened on December 3. 1S57, an act was
passed proposing such amendment, to
be submitted 10 tire people for ratitica-
ton. The Importance of this amend
ment. and its effect and consequence
upon the future of the state demand
that give il nearly in full 1t changed
Section 10, as It was originally passed,
and made it read as follows:
Section TO- The credit of the state
shall never be given or loaned in aid of
any individual, association or corporation,
except that fo~ The purpose of e1spedlting
the construction of the lines OF railroads,
in aid of which the congress OF the
United States has granted lands to the
territory of MINNESOTA the governor
shall cause to be issued and delivered to
each of the companies in which said
grants are rested by the legislative as
Sembly of Minnesota. The special bonds
of the state, bearing an interest Of seven
per cent per sIlulln, payable in amount
not exceeding twelve hundred and fifty
thousand dollars, or an aggregate amount
to all of said cOmp2flieS not exceeding
five millions OF dollars, in manner follow
ing. to-wit'
The amendment prescribed that when
ever ten miles OF railroad was graded SO
as to be ready for the supcrstructure,
it should receive S19G 200 of the bonds,
and when ten niles shout ! be completed,
with the cars trimming, the Company so
completing should receive another $4,000
of the bonds. Until each company had re-
ceiVed its quota H'he BINDS we're to he
denominated Estate Dailroad Bonds" for
the payment of which the faitf. and cred
it of the state was pledged The rail-
road companies were to pay the princi-
pal and interest of the bonds, and to
secure such payment they were to pledge
the net profits OF their respective roads,
and to convey to the STATE the first pa
sections of land they received; and to
deliver to the state treasurer an amount
of th0ir FIRST mortgage bonds equal to the
amount OF bonds received by them from
the state, and mortgage to the state
their roads and franchises. This was all
the security the companies could give,
but the underlying difficulty was that it
had 10 value whatever. There were no
roads, no net profits or other profits. The
lands had no value whatever except such
as lay in the future, which was de-
pendent on the construction of the roads
and the settlement of the country. TIE
bonds of the companies, of course, pos
sessed Only such value as the property
hEX tad in md
the mortgages were Of the same charac-
ter. The whole schema was based upon
hopes. to which the slightest application
OF sober reasoning would have pro-
nounced impossible of fulfillment. Rut
the country was hungry and willing to
seize upon anything that offered sem
Nance of shadow or relief.
The proposed amendment was submit
ted to the people for adoption or rejec-
tion at an election 10 be held April Is,
1858 In order to fully comprehend the
condition of the public mind. it should
be known that the cons titution. with all
the safeguards that / have mentioned,
had only been in force since Oct. 10. 1857.
a period of about six months, and had
81 against it's adoption.
The campaign preceding the election
pie flooded the state with speakers doc
uments, pictures. glee clubs. singing
songs of the delights of riding on
the Rail" and every conceivable arti-
ment. 1t was carried by a vote of 2jG23
in favor Of its passage to 6,732 against.
To give an idea of the intense feeling
that was exhibited in this election, it is
only necessary to state that In tae city
of Winona there were 1,192 votes cast in
favor OF the amendment, and only one
vote against it. This negative vote, to
his eternal honor, be it said. was cast by
Thomas Wilson, afterwards chief jus
tee of the state, and now a resident Of
ST. Paul.
Tn, =,
of this amendment the railroad campan-
les claimed that they could issue first
mortgage bonds on their properties to an
indefinite amount, and exchange them
with the state for its bonds, bond for
bond. but the governor, who was Hon.
Henry II. Sibley, construed the amend
ment to mean that the first mortgage
bonds of the companies which the state
was to receive must be an exclusive first
lien on the lands and franchises OF the
company. He therefore declined to is
sue the bonds of the state unless his
views were adopted The Minnesota and
Pacific railroad company, one of the land
grant corporations, applied to the SUI
pren1e court of the state for writ of
issue the bonds. The case was heard,
and two members of the court holding
the views of the applicants, the writ was
issued. / was member of the court at
that time, but, entertaining opposite
views from the majority, I filed a dis
senting opinion. Any one sufficiently
case reported in Volume Two of the Min
nesota Reports, at page thirteen. This
decision was only to be advisory, as the
courts have no power to coerce the ex-
ecutive.
The subject is fully treated in Judge
Flandreau's History. but space forbids
furthe7 extracts. What have quoted
amply proves that no party feeling or
politics entered into the matter of the
issuance of these honds. The state was
in desperate need, and hoped for relief
by these bonds, and foolishiv issued
them, the folly being chargeable quite
as much to one party as the other, and
it is gross injustice to lay the blame on
the Democracy.
The amendment to the constitution
which permitted the issue of the bonds
was itself repealed about the time that
the 81, 275, 600 of bonds spoken of by Audi
tor Dunn Rad been put out, and no more
We're issued.
Another amendment to the CONSTITUTE
was also made, forhidding the payment
! toned by vote of the pe3ple, which for
| about twenty years operated to reDuii-
ate Am, as the people on several coca
sions refused to sustain them. AS the
state became strongly Republican after
| the first election in 1857, and has remain
1 ed so up to the election of Gov Lind in
1893. sometimes giving majorities as high
| IS 10000, the disgrace of reputation rests
entirely upon the Republican PARTY The
/ effect of this Reputation upon the state
] is described by Judge F'landreau in his
history as follows
Attempts Were made to obtain the
| sanction of the people for the payment OF
/ these bonds, but they were defeated unti
| 1t became unpleasant TO admit that one
| was a resident of Minnesota Whenever
! the name of Minnesota was heard on the
/ floor of congress as an applicant for IA
4 vors, or even for justice, it was met by
! the charge of reputation. This was at
/ era of OUT history very much to be re-
4 GREETED.
TRUTH LOVING DEMOCRAT.
st. Paul, Sept. %.
To 0Den n Dancing SchoOI