Gambar halaman



Manner of 1set.

Be it enacted by the Legislature of the State of Minnesota,

SECTION 10. The credit of this State shall never be given or loaned in aid of any individual, association or corporation, except that for the purpose of expediting the construction of

Loan of Stato the lines of Railroads, in aid of which the Congress of the credit for rallrond United States has granted lands to the Territory of Minneso- purposes ta, the Governor shall cause to be issued and delivered to each of the Companies in which said grants are vested by the Legislative Assembly of Minnesota, the special bonds of the State, bearing an interest of seven per cent. per annum, payable semi-annually in the City of New York, as a loan of public credit, to an amount not exceeding twelve hundred and fifty thousand dollars, or an aggregate amount to all of said Companies not exceeding five millions of dollars, in manner following, to wit:

Whenever either of the said Companies shall produce to. the Governor satisfactory evidence, verified by the affidavits inen

ing bonds of the Chief Engineer, Treasurer and two Directors of said Company, that any ten miles of the road of said Company, has been actually constructed and completed, ready for placing the superstructure thereon, the Governor shall cause to be issued and delivered to such Company, bonds to the amount of one hundred thousand dollars ; and whenever thereafter, and as often as either of said Companies shall produce to the Governor, like evidence of a further construction of ten miles of its road, as aforesaid, then the Governor shall cause to be issued to such Company further like bonds to the amount of one hundred thousand dollars for each and every ten miles of road thus constructed; and whenever such Company shall furnish like evidence that any ten miles of its road is actually completed and cars running thereon, the Governor shall cause to be issued. to such Company like bonds to the amount of one hundred thousand dollars ; and whenever thereafter, and as often as either of said Companies shall produce to the Governor like evidence that any further ten miles of said road is in operation as aforesaid, the Goverpor shall cause to be issued to such Company further like bonds to the amount of one hundred thousand dollars until Special provisioz the full amount of the bonds hereby authorized shall be issued: Provided, That two-fifths, and no more, of all bonds issued to the Southern Minnesota Railroad Company, shall be expended in the construction and equipment of the line of road from La Crescent to the point of junction with the Tran

sit Road, as provided by law. And further provided, that the Minneapolis and Cedar Valley Railroad Company shall commence the construction of their road at Farribault and Minneapolis, and shall grade an equal number of miles from each of said places

of The said bonds thus issued shall be denominated "MinneBesponsibility of State

sota State Railroad Bonds," and the faith and credit of this State are hereby pledged for the payment of the interest and the redemption of the principal thereof. They shall be signed by the Governor, countersigned and registered by the Treas urer, sealed with the seal of the State, of denominations, not exceeding one thousand dollars, payable to the order of the company to whom issued, transferrable by the endorsement of the President of the said Company, and redeemable at any time after ten and before the expiration of twenty-five years from the date thereof. Within thirty days after the Gover

nor shall proclaim that the people have voted for a loan of Conditions of Loan

State Credit to Railroads, any of said Companies proposing to avail themselves of the loan herein provided for, and to accept the conditions of the same, shall notify the Governor thereof, and shall, within sixty days, commence the construction of their roads, and shall, within two years thereafter, construct ready for the superstructure, at least fifty (50) miles of their road. Each company shall make provision for the punctual payment and redemption of all bonds issued and delivered as aforesaid, to said Company, and for the punctual payment of the interest which shail accrue thereon, in such manner as to exonerate the Treasury of this State from any advances of money for that purpose ; and as security there. for, the Governor shall demand and receive from each of said Companies, before any of said bonds are issued, an instroment pledging the net profits of its road, for the payment of said interest, and a conveyance to the State of the first two hundred and forty sections of land, free from prior incumbrances, which such Company is or may be authorized to sell in trust for the better security of the Treasury of the State from loss on said bonds, which said deed of trust shall authorize the Governor and Secretary of State to make conveyances of title to all or any of such lands, to purchasers agree ing with the respective Railroad Companies therefor. Prorided, That bưfore releasing the interest of the State to such lands, such sale shall be approved by the Governor, but the proceeds of all such sales shall be applied to the payment of interest accruing upon the bonds in case of default of the payment of the same, and as a sinking fund to meet any future default in the payment of interest and the principal thereof when due ; and as further security, an amount of first mortgage bonds on the roads, lands and franchises of the respective Companies, corresponding to the State bonds issued, shall be transferred to the Treasurer of the State at the time of the issue of State bonds, and in case either of

said Companies shall make default in payment of either the interest or principal of the bonds issued to said Com-Security for Lons panies by the Governor, no more State bonds shall thereafter be issued to said Company, and the Governor shall proceed in such manner as may be prescribed by law, to sell the bonds of the defaulting Company or Companies, or the lands held in trust as above, or may require a foreclosure of the mortgage executed to secure the same : Provided, That if any company so in default, before the day of salé, shall pay all interest and principal then due, and all expenses incurred by the State, no sale shall take place, and the right of said company shall not be impaired to a further loan of State credit: Provided, If any of said companies shall at any time offer to pay the principal, together with the interest that may then be due upon any of the Minnesota State Railroad Bonds, which may have been issued under the provisions of this Section, then the Treasurer of State shall receive the same; and the liabilities of said company or companies, in respect to said bonds shall cease upon such payment into the State Treasury, of principal, together with the interest as aforesaid : Provided further, That in consideration of the loan of State credit herein provided, that the company or compa Farther condinies which may accept the bonds of the State in the manner tions of loan herein specified, shall

, as a condition thereof, each complete not less than fifty miles of its road on or before the expiratiou of the year 1861, and not less than one hundred miles before the year 1864, and complete four-fifths of the entire length of its road before the year 1866, and any failure on the part of any such c mpany to complete the number of miles of its road or roads, in the manner and within the several times herein prescribed, shall forfeit to the State, all the right, title and interest of any kind whatsoever in and to any lands, together with the franchises connected with the same not pertaining or applicable to the portion of the road Failare or condi by them constructed, and a fee simple to which has not ac- tions crued to either of said companies, by reason of such construction, which was granted to the company or companies, thus failing to comply with the provisions hereof, by act of the Legislature of the Territory of Minnesota, vesting said land in said companies respectively.

[ocr errors]


« SebelumnyaLanjutkan »