Money was scarce and “business” sluggish in the extreme. But there was hope. The building of the railroads would scatter large sums of money, immigrants would flow in, and the good times of ’56 would return. The act of the Minnesota legislature of May 22, 1857, accepting the congressional land grant of March 5, provided, as anticipated by Congress, for the distribution of the lands to these four corporations:— First, the Minnesota and Pacific Railroad Company, for building a main line from Stillwater through St. Anthony to Breckenridge and a “branch” from St. Anthony to St. Vincent. Second, the Transit Railroad Company, to build from Winona by way of St. Peter to the Big Sioux River north of 45 degrees north latitude. Third, the Root River and Southern Minnesota Railroad Company, for two lines; one from La Crescent to a junction with the Transit at Rochester; the other from St. Paul and St. Anthony via Minneapolis, up the Minnesota River, to Mankato and on to the mouth of the Big Sioux. Fourth, the Minneapolis and Cedar Valley Railroad Company, for a line from Minneapolis by way of Mendota and Faribault to a point on the south line of the state, west of range 13. The lands were to inure to the companies in installments of 120 sections, upon the completion of twenty-mile stretches of road for the running of regular trains. The constitutional amendment of April 15, 1858, had for a particular object the enabling of the companies to get each its first twenty miles built and receive its 120 sections (76,800 acres). The sale or hypothecation of this land would build an additional stretch, and so on. To make it the easier for the companies so to build, the amendment provided that when any ten-mile stretch should have been graded and made ready for ties and track, the company should receive $100,000 in the seven per cent. special Minnesota state railroad bonds authorized; and, when any ten-mile stretch so graded should be complete with rails and rolling stock, an additional like sum in bonds. Now these bonds were by no means a bonus; they were to be a “loan of credit,” according to the favorite phrase of the day. The companies on receiving them were obligated to pay the interest as it should accrue, and to redeem the principal when due. The most rigorous provisions were made in the amendment itself to secure these liquidations. The companies were required to pledge the net earnings of their several lines, to convey to the state by deed of trust the first 240 acres of land earned by construction, and to transfer to the state an amount of their own company bonds equal to that of the special state bonds delivered. These company bonds were to be secured by mortgages on all the properties and franchises of the companies. Human ingenuity, it was fancied, could exact no sounder guarantees. While the legislature was still in session in the midsummer of 1858, the companies let their contracts, and the dirt began to fly in a manner very cheering to