Government Records
The Railroad Bonds Commission was created by the Minnesota Legislature on February 28, 1866 [Laws 1866 c5] to find a solution to the redemption of the 7% Minnesota State Railroad Bonds. The bonds had been issued in the late 1850s to help four railroads build rail lines within the state. The railroads, all bankrupt in 1866, were the Minneapolis and Cedar Valley Railroad, the Transit Railroad Company, the Minnesota and Pacific Railroad, and the Southern Minnesota Railroad. The bonds were commonly known as the Five Million Dollar Loan. The Commission was to ascertain and report the names of the bondholders, the amount due each, and the amount originally paid for the bonds by each. The Commission issued its report on January 8, 1867, alphabetically listing the bondholders, the number of bonds owned by each, the date of issue, and the railroad name. It made no recommendation on how to end the state's indebtedness for the bonds. Redemption of the bonds did not occur until 1881.
The bondholders' letters and depositions provide information on the bond holdings of those who testified before the Commission and the terms of surrender the holders were willing to accept, while the files that originated in the State Auditor’s Office relate to the settlement of claims on behalf of the Minneapolis and Cedar Valley, Transit, Minnesota and Pacific, and Root River and Southern Minnesota railroads and a nonrelated claim against the St. Paul and Pacific Railroad. Also a sample of the original $1000 bonds issued by the railroads, originally held in the State Treasurer’s Office.
This collection is indexed under the following headings in the catalog of the Minnesota
Historical Society. Researchers desiring materials about related topics should
Accession number(s): None; 985-142
Catalog ID number: 001704181
Contains minutes, a report of estimated expenses for railroad construction, and the Commission's final report. The minutes include names and addresses of bondholders who appeared before the Commission, their bond number(s) and date of issuance, the railroad involved, and terms of surrender to which the bondholder would be agreeable. Many entries refer to the depositions listed below. The final report lists all bondholders who appeared before the Commission in alphabetical order by surname.
These materials are arranged chronologically.
Originating in the State Auditor’s Office, these files relate to the settlement of claims on behalf of the Minneapolis and Cedar Valley, Transit, Minnesota and Pacific, and Root River and Southern Minnesota railroads and a nonrelated settlement against the St. Paul and Pacific Railroad by Charles DeGraff.
Information recorded includes name and address of the bondholder, bond number(s) of the bond(s) redeemed, railroad for which the bonds had been issued, number of interest coupons redeemed, bond number(s) of the adjustment bond(s) issued, and cash received.
Includes name of the claimants, description of the work or provisions supplied or other debt on which the claim is based, amount of the claim, and time and place that the debt was incurred.
Claims that were disallowed by the commission.
Printed forms acknowledging settlement of the claim; listing name of the claimant, amount of the claim, and the amount paid on the claim. Some of the petitions of individual bondholders or claimants include additional affidavits, pay orders, receipts, transcripts of testimony, or other documentation.
Concerning claims against the land grant of the St. Paul and Pacific by Charles DeGraff and others for debts incurred during construction of portions of the railroad’s line. The relief of these claimants was provided for in two legislative enactments: Special Laws, 1874, Chapter 105, and 1877, Chapter 201.
Originally held by the State Treasurer’s Office, these are a sample of the original $1000 bonds issued by the railroads. The bonds were issued with 50 coupons, each coupon in the amount of $35, attached to the bond. Forty-nine coupons remain attached to each bond.
Signed by Edmund Rice, President; James W. Taylor, Secretary; and E. Farnsworth, Edward P. Cowles, and William H. Welch, trustees.
Signed by J. W. North, President; E. Abbott, Treasurer; and W. R. Marshall and J. G. Farley, trustees. Bond Nos. 526 signed by J. A. Shields, President, and Geo. Loomis, Treasurer.
Signed by H. H. Johnson, President; L. D. Smith or N. P. (Bemus?), secretaries; and William Windom and J. H. Harmon, trustees.