A GLANCE AT THE HISTORY OF RAILROADS IN MISSOURI. 169 
appropriated $11,000,000, in one lump, which bill being vetoed by Governor 
Price, the legislators took the total responsibility on themselves and passed the 
bill over his head. 
In making these loans of Sjtate credit to railroad companies, care was taken 
to provide such means as were thought to be amply sufficient to secure the State 
against any possible loss. Such were the provisions under which State bonds 
were delivered to the companies, only to the amount of their own capital derived 
from other sources, previously expended; the creation of fund commissioners to 
look after the sale of the State bonds and the application of their proceeds ; 
the appointment of a " Board of Public Works," consisting of three members, to 
supervise the operations of the companies in the construction of their roads; and 
especially the creation of statutory liens upon the roads in favor of the State. 
The obligations under these liens were peculiar. The State did not loan money 
to the companies, except some small amounts which were repaid, nor bind them 
to repay her any money. She loaned them her bonds, on which they could 
raise money, and the obligation on their part was to return these bonds to the 
State, and while they were outstanding, to pay to the holders of them, the inter- 
est as it accrued, and the principal at maturity. In default of either of these 
payments, the governor might sell their roads and apply the proceeds to this pur- 
pose. The Missouri Pacific Company had borrowed $7,000,000 of these bonds, 
sold them and used the proceeds in building her road. Being afterward desirous 
of procuring a release of the State's lien upon her property she bought up five 
millions of the bonds, turned them over to the State, and obtained an entire 
release from the whole obligation, by act of the legislature; the consideration for 
the loss of the two millions being (we presume) considered by the body to be 
good and sufficient. In the case of the Hannibal & St. Joseph Company, it was 
provided by an act approved February 20, 1865, ten years after the last loan had 
been made to this company, and six years after its road had been completed from 
Hannibal to St. Joseph, that the cancellation of the State's lien upon its property ' 
might be effected by the payment to the State of money instead of bonds, pro- 
vided the amount paid were sufficient to indemnify the State for "All liabilities 
incurred by reason of having issued her bonds and loaned the same to said com- 
pany," 
Under this policy adopted by the State, and with the aid of liberal subscrip- 
tions to the capital stock of the companies by counties, municipalities and indi- 
viduals, supplemented by grants of lands from Congress, we inaugurated and 
prosecuted railroad building until interrupted by the civil war in 1861, ten years 
after we had commenced the work of construction. At this time we had 800 
miles in operation, but only one of the roads had been completed through to its 
projected terminal point. After the war, it v.'as found that the credit of railroad 
property in Missouri had so appreciated that money could be raised by mortgages 
upon such property without difficulty, and even on mortgages upon projectea 
lines of road to which liberal local subscriptions could be had. Our companies 
were therefore anxious to extinguish the State's lien upon their lines, in order 
