MINNESOTA. 



521 



mained until, in 1868, he was elected Prince 

 of Servia, to succeed his grand-uncle, Michael 

 III., who had been assassinated. He did not 

 assume the government himself, however, un- 

 til August 22, 1872, up to which time the gov- 

 ernment was carried on in his name by a re- 

 gency of three distinguished statesmen. Even 

 at this time the hope was expressed by the 

 Servians that Prince Milan would succeed in 

 establishing an independent Servian Empire 

 free from all connection with Turkey. During 

 the war of 1876, the more ardent Servian patri- 

 ots believed the time for establishing the inde- 

 pendence of Servia to have come, and Prince 

 Milan was proclaimed King of Servia by Gen- 

 eral Tchernayeff's army. The Prince was, 

 however, forced, by the disapprobation of the 

 great Powers of Europe, to disavow this act. 

 Even during the war with Turkey, rumors of 

 conspiracies to place Prince Karageorgevitch 

 the representative of a rival family, and the 

 reputed author of the assassination of Prince 

 Michael III. on the throne were floating 

 about ; and, after tfye Servian reverses of 1876, 

 another conspiracy was said to be gaining fa- 

 vor, to unite Servia with Montenegro under 

 the rule of Prince Nicholas of that country. 

 In 1877, Prince Milan was urged by the public 

 feeling of Servia to unite with Eussia against 

 Turkey, and was evidently only restrained from 

 this step by the influence of Austria. In 1875 

 he married Natalie de Keshko, the daughter 

 of a Russian officer, by whom he has one son, 

 Alexander, born August 14, 1876. 



MINNESOTA. The question of the dis- 

 puted bonds outstanding against the State was, 

 perhaps, the most important topic of public 

 discussion during the past year. It has claimed 

 the attention of the people of the State for 

 nearly 20 years. The history of this matter 

 is given in the ANNUAL CYCLOPEDIA, for 

 1875, article MINNESOTA. It will be sufficient 

 to state here that the bonds in question, 

 amounting to $2,276,000 of the $5,000,000 

 being authorized, were issued in 1858, and lent 

 to railroad companies upon the authority of an 

 amendment to the Constitution, made in that 

 year. Soon after receiving them the com- 

 panies failed to comply with the conditions upon 

 which the bonds were granted, and payment 

 was refused by the State. In 1860, another 

 amendment to the Constitution was adopted, 

 "expunging" the amendment of 1858, and 

 providing that " no law levying a tax, or mak- 

 ing other provisions for the payment of princi- 

 pal or interest of the bonds denominated Min- 

 nesota State Railroad Bonds, shall take effect, 

 or be in force, until such law shall have been 

 submitted to a vote of the people of the State, 

 and adopted by a majority of the electors of 

 the State voting upon the same." Before this 

 amendment was adopted, the mortgages held 

 by the State had been purchased, and the 

 mortgaged railroads bought by the Govern- 

 ment at nominal prices. In May, 1871, a 

 popular vote was taken on a proposition for 



settlement by arbitration of these claims, when 

 21,499 votes were oast against and 9,203 in 

 favor of the proposition, the total vote being 

 less than half the average vote of the State. 



The subject was again taken up by the Legis- 

 lature in 1877, in response to the proposal, 

 made by a holder of a large amount of the 

 bonds, to exchange them for a new issue of 

 bonds, and for an equitable adjustment of the 

 interest due. The total amount of the principal 

 and interest of the disputed bonds exceeds $7,- 

 000,000. The act of the Legislature, approved 

 March 1st, constituted the Governor, Auditor 

 of the State, and Attorney-General, and their 

 successors in office, a Board of " Commissioners 

 of the Public Debt of Minnesota," with power 

 " to do all acts necessary to carry into effect 

 the provisions of this act, whether such duties 

 are specifically prescribed, or are, in the opin- 

 ion of the Board, incident to their duties." 

 The commissioners were authorized to prepare 

 bonds to be known as the "Minnesota six per 

 cent, bonds," of the denomination of $1,000 

 each, dated July 1, 1877, payable in 80 and 

 redeemable in 20 years, with six per cent, in- 

 terest, payable semi-annually. The terms on 

 which these were to be exchanged for the old 

 bonds were prescribed as follows : 



SEO. 4. Whenever the commissioners of the pub- 

 lic debt shall have notice that any holder of Minne- 

 sota State railroad bonds wishes to make the ex- 

 change of bonds provided for in this act, they shall 

 cause to be engraved and printed such number of 

 bonds as they may deem necessary, and when bonds 

 are surrendered for exchange they shall cause to bo 

 executed for issue equal to $1,750 of new six per 

 cent, bonds for each Minnesota State railroad bond 

 so surrendered, and for each bond having attached 

 85 or more half-yearly-duo coupons, and all other 

 coupons pertaining to such bond not due on the first 

 day of July, eighteen hundred and seventy-seven 

 (1877), said* commissioners shall deliver to the partv 

 so surrendering a new Minnesota six per cent, buna, 

 with full coupons attached, equal in amount to $1 ,- 

 600, with interest from June 1, 1377, but in case 

 there shall be less than 85 past-due coupons with 

 any bond, the amount of new bonds given in ex- 

 change shall bo reduced ratably for the missing cou- 

 pons, and the new bonds so accepted shall be in full 

 of all claims against the State on account of the prin- 

 cipal and interest of the bonds so surrendered, and 

 for any portion of $1,000 that may arise in any ad- 

 justment, the commissioners may deliver a full bond 

 and receive the difference in cash, at par. for such 

 fraction, or, at their option, they may pay the holder 

 of such bond or fraction the amount due him in 

 cash at par. 



810. 5. The difference between the amount of 

 new bonds prepared for issue and the amount re- 

 quired to bo delivered in exchange for each of said 

 old bonds, being $200, shall be reserved for the use of 

 the State, and constitute a fund to provide for and 

 pay interest u it may become parable on such new 

 Minnesota six per cents, as may DO issued, and the 

 said commissioners are authorized t/> sell or hypothe- 

 cate the bonds so inuring to the State, for the pur- 

 pose of providing for such interest. 



SKO. 6. That the judgment* and internal duo 

 thereon, referred to and recognized by the Lejrula- 

 turo of the State of Minnenota, by chapter one hun- 

 dred and fifty-two (152) of special lawn of 187, aro 

 hereby recognized, and shall be liquidated and treat- 

 ed by the commissioners of the public debt in all 



