disappointed 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, in
an amendment of the section of the constitution which prohibited the
credit of the state being given or loaned to anyone, and at the first
session of the first legislature, which convened on Dec. 3, 1857, an act
was passed proposing such amendment, to be submitted to the people for
ratification. The importance of this amendment, and its effect and
consequences upon the future of the state, demands that I give it nearly
in full. It changed section 10 as it was originally passed, and made it
read as follows:

"Section 10. The credit of that 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
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 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:"

The amendment then prescribes that, whenever ten miles of railroad was
graded so as to be ready for the superstructure, it should receive
$100,000 of the bonds, and when ten miles should be completed with the
cars running, the company so completing should receive another $100,000
of the bonds until each company had received its quota. The bonds were
to be denominated "State Railroad Bonds," for the payment of which the
faith and credit of the state was to be pledged. The railroad companies
were to pay the principal 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 two hundred and forty sections of
land they received, and to deliver to the stat