of their honest debts, and to keep inviolate the faith of their respective corporations, there is now no authority of law by which such provision can be made. No tax can be lawfully made or collected to provide the means for paying either principal or interest; any such tax placed upon a tax-roll would not only be void and uncollectable, but might vitiate the entire tax of such corporation.

It has been supposed by many, that these bonds, or at least most of them, were issued under the law of 1869; that the act was passed under circumstances of much popular excitement on the subject of the real or supposed benefits to be derived from the extension of railroad facilities.

It is certainly true, that a portion of the municipal railroad aid bonds now outstanding, were issued under the authority of legislative acts of 1869, but these comprise only a little more than one-fourth of the whole amount now in the hands of parties who have purchased and paid for them in good faith.

It is undoubtedly true, that no small portion of the people of the State, have felt a deep interest in and a strong desire for the construction of railroads, and have been both willing and desirous to grant municipal aid for that purpose.

Whether it is or is not wise to construct railroads, under any circumstances, to a greater extent than can be done by individual or private enterprise, need not be discussed in this connection, but however this may be, the bonds now outstanding are not the result of any sudden impulse, or the excitement of a day, or of any one Legislature.

The following summary will give, as near as may be ascertained, the amount of such securities now outstanding, under the various enabling acts:

Special acts of 1863, and of the extra session of 1864,

approved by Gov. Blair............

$858,600

Special acts of 1865, approved by Gov. Crapo- - - - -

312,700

Special act of 1867, passed over the veto of Gov.
Crapo....

28,000

Laws of 1869, approved by the present Executive..

447,000

Total.....

-$,1,656,300

It will be observed, that one-half of the whole amount was issued under the laws of 1863 and 1864, nearly one-fourth under the enabling acts of 1865 and 1867, and a little more than one-fourth under the laws of 1869.

Our own State has not been singular in passing enabling acts of this character; not less than twenty-two of the States have similar laws upon their statute books; in most, or all of these, the constitutionality of railroad aid legislation has been the subject of judicial adjudication; in all of these States such legislation has been sustained, save in Iowa and Wisconsin, and originally in these also.

The States were but following the example of Congress, which body, as is well known, has made extensive grants of lands belonging to the people, as well as large subsidies in bonds, to railroads. In 1841, Congress gave to the State of Michigan, and to each of eight other States named in the act, and to each new State thereafter admitted into the Union, five hundred thousand acres of public lands, "for the purposes of internal improvement, said lands to be disposed of, and the net proceeds of the sales applied to the building of roads, railways, bridges, canals," &c.

I do not call attention to our own reiterated legislation, to the extensive legislation of other States, and of Congress, and to the sanction given to it by the courts of other States, either for the purpose of expressing an approval of such legislation, or of dissenting from the decision rendered by the highest court of our own State; but simply for the purpose of showing, that holders of bonds issued under the authority of five successive Legislatures, and approved by three successive Executives of Michigan, had good reason to believe that they were receiving securities of value, such as their face indicated, and may justly claim, that the municipalities whose bonds they hold should be allowed and authorized to make provision for their payment.

Under the recent decision of the Supreme Court, all railroad aid bonds, issued by virtue of the various enabling acts con

tained in the statutes of Michigan, are void, and under present circumstances worthless; but it certainly was not the intention of the several Legislatures by which these laws were passed, or the municipalities which have made and issued the securities, to deceive the people, or to procure their money without consideration, by placing in their hands empty, worthless promises. to pay. The Legislatures that authorized, and the people who voted to issue the bonds, supposed they were acting under constitutional and lawful authority.

Although there is now no way of enforcing the collection, and no legal obligation for the payment of these securities, the moral obligations of a State, and of a people, are as binding and should be held as sacred as their legal obligations; the honor of the people of Michigan, and especially of the counties, townships, and cities, by which these bonds have been issued, is directly concerned in the payment of those already sold and now in the hands of honest holders.

The credit of no State stands higher than that of Michigan, and the people cannot afford, and I trust will not consent, to have her good name tarnished by the repudiation of either legal or moral obligations.

As the present emergency could only be provided for by an amendment of the fundamental law of the State, and as constitutional amendments must first receive the sanction of the Legislature, and can only be submitted to the people at a general biennial November election, and as the refusal or neglect to take all proper and constitutional means, to enable the municipalities directly interested, to recognize and provide for their obligations, would be little less than an approval of repudiation, I could not consent by any action of mine, to withhold from the people for two years, the opportunity of making provision for their payment.

I respectfully and earnestly recommend, that an amendment: of the constitution be submitted to the people at the general election to be held in November next, such as will enable the

several municipalities to ratify all such railroad aid bonds as have been issued and delivered to parties in good faith.

Besides the bonds which have been used, and are now in the hands of innocent purchasers and holders, there is another and much larger class, which have been voted, made, and deposited with the State Treasurer, but not delivered to the companies for whose benefit they were designed; of these there is now in the office of the Treasurer, the sum of $3,710,875.80, which might be divided into several classes, but for present purposes I shall consider them as of two classes only:

First. Such as have been pledged to roads that are being constructed, and on which expenditures of labor and money to a greater or less extent have been made, in anticipation of the aid so voted.

Second. Such as have been regularly voted, and deposited with the Treasurer for the benefit of proposed roads, but on which no work has as yet been done.

In some cases, bonds embraced in the first of the two classes named were nearly earned by railroad companies, and had been negotiated and part of the purchase price advanced-before the decision of the Court had been rendered. It is worthy of your consideration, whether good faith does not require provision to be made for this class also.

Whether it is desirable, or the wish of the people, that hereafter, municipalities should be authorized, upon any conditions, to aid in the construction of railroads, by donations, loans, or subscriptions for stock, may well be questioned.

While it is not to be denied that railroads, wherever they can be constructed and properly maintained, are of great convenience and service to the people, and add largely to the value of property, and while it must be admitted that by means of municipal aid they are sometimes constructed where, without such aid, they could not be had, I do not conceive it equally clear, that the principle is entirely correct, and I have serious doubts as to the propriety of its further application. It is for you in your wisdom to decide whether this question shall be

placed before the people for their decision at the approaching November election.

The subjects presented for your consideration, involve principles and interests of the greatest moment, no less than the honor, credit, and prosperity of our noble State. They are not wholly outside of the past experience of the people of our own and other States; the teachings of the past should be most carefully scrutinized, and whatever tends to advance the real prosperity and credit of the State, should be adopted, while that which experience has shown to be unsafe and dangerous, should be discarded.

I submit these important matters for your consideration, with full confidence that your action will be such as will receive the approval of the people.

EXECUTIVE CHAMBER,

Lansing, July 27, 1870.

HENRY P. BALDWIN.

Mr. Boies moved to refer the message to a select committee of three, who shall designate and recommend a reference to the proper standing committees, of the subjects embraced in the message, and that the committee be directed to report forthwith;

Which motion prevailed.

The President announced as such committee, Senators Boies, Rich and Norris.

The special committee to whom was referred the Governor's message, for the purpose of recommending its reference to an appropriate committee, respectfully report that they have had the subject under consideration, and recommend the adoption of the accompanying resolution.

J. K. BOIES, Chairman. Report accepted and committee discharged.

Resolved, (the House concurring), That the subject embraced in the Governor's message be referred to a special joint committee of the two Houses, consisting of five on the part of the Senate and eight on the part of the House.