Year: 1872

loaned or given, hut that the state fur.
nisbes the money. The question natur.
slly arises where is the money to come
from. 1t is certainly not nov III the
treasury, and not likely to be there soon
from finances arising from taxation.
Though the bill itself is silent upon this
poipt i. is not denied by those urging it's
/ passage that the state must borrow the
money. In other words, the state must
loan its credit to raise the cash. The
exact language Of tho constitution is "the
credit of the state shall not be given or
loaned in aid OF any person, association
or corporation"


The prohibition is against loan of the
state credit in aid Of any corporation.
Those who maintain the constitutionality
of the bill seem to understand this pro.
vision as if it forbade the loaning Of the
credit Of the state to corporation, or, in
other words, that the constitution only
prohibits the issuing Of bonds of the
state directly to these corporations but
such is not the letter Of the law. TO say
that the state could not issue its bonds
payable directly TO the corporation, but
might issue them payable to bearer, the
bearer negotiating the bonds and placing
the proceeds in the treasury Of tho state
for the express purpose Of being paid
over to the corporation, is indeed strange
reasoning. According to this theory the
trainers Of the constitution intended sim.
ply to preh.Lit the state from issuing
bonds directly to corporation 10 aid Of
it, by which such corporation would be
compelled to go to the expense Of nego.
,iating them, and would necessarily lose
the discount, if any, but that the state
might issue bonds, have them placed in
the hands Of its own agents for negotia
uon, lose whatever commissions or dis
counts there might be, and having Oh.


aiued the cash hand it over in aid of the
corporation. Although the mbers of
the committee signing this report have
never been peculiarly y impressed with the
wisdom displayed by those who framed
our present organic law, yet they cannot
attribute to them such absurd couclu.
sions.


2 Even if the provisions of the bill be
within the purview Of the constitution,
yet the minority Of the committee believe
1t would be iupoli,ic to permit it to be.
come law. a railroad debt of ST.
100000 still remaining after all the
roads have been disposed of, if not of
itself sufficient to condemn tho pending
bill, certainly does not encourage US to
repetition of such an experience. State
aid should not be granted to local roads
That is short sighted policy that does
not reach beyond the borders of the state
in the establishment and maintenance of
a system of railroads tor travel and trans.
pOrtation Of freight. A state cannot be.
come very rich or powerful by simply
contining Its trade to its own border.
Its exports are its principal reliances for
the accumulation Of wealth. While
local improvement should be encouraged
it is confidently believed that it would be
unwisc for the state to grant the pecu
mary aid for such purposes. If state aid
is to be resorted to for the development
Of resources and the advancement of our
state in material prosperity, We should
reach out for the trade beyond our Dor
dcrs. This bill derives its strength from
The fact that it is proposed to build short


lines Of roads in the different section. Of
the state. The whole SlS 5000 900 in
tended to be expended will be absorbed
by companies organized to build a few
miles Of road to towns and localities away
from the main lines Of travel. The roads
that would inevitably be built would be
of local importance only OF course Ger.
tain through lines would take advantage
OF the law, and get some of the money.
but all of these roads will be completed
at no distant day by private enterprise
and capital. In fact, all roads, whether
local or otherwise, which are demanded
by the trade and travel of the state, or
the particular region to be benefited, will
be constructed in due time in the same
way, with such local aid as the impor.
tance Of the road to be constructed de-
mands.


3, 1t is confidently urged by the
minority of the committee that it would
not only be unwise and inexpedent, but
unjust, to grant the proposed railroad
aid, or in other woads invest S18, 900 900
in scheme of such uncertain results,
without direct expression of the people
upon the subject. Ever since the adop-
ton of the constitution in 1865, the
public mind has rested satisfied that no
more state debts for railroad purposes
could be createi. They furnished the
money to bnild the trunk lines of road,
and they now find that all the original
safeguards thrown around the donation
when made, fifteen or twenty years ago,
are swept away ; tho roads have gone
into the hands of private corporations
and the debt is left to the tax PAYERS.
This they patiently endure. believing
that many benefits have been derived
from the outlay. But they have had
sufficient of this. They have confidently
believed for seven years that the railroad
debt could not be coustitutioualy in.
creased. This belief has given repose to
the public mind on the subject. So calm,
indeed, was the feeling of the people