The land grant companies having completely defaulted in all their engagements, there remained for the governor to proceed as required by law to recover to the state the public lands conditionally made over to them. Foreclosure proceedings culminated in the sale to the state of all the franchises, rights of way, property, and privileges of each company for the sum of one thousand dollars. As the electors had by a constitutional amendment declared that the special railroad bonds were no obligations of the state, she was apparently the gainer by the rights of way and the grading done by the companies, but in fact the state was never more than a trustee of the lands. The loss of their properties did not, of course, work a dissolution of the railroad charters, and the companies, or their ghosts, still existed. When the legislature of 1861 was in session they had sufficient influence to persuade that body to give them another lease of life. They had gone down in the common ruin after brave efforts to execute their contracts. By separate acts passed March 4, the state released and restored to the four companies severally all their forfeited properties and assets, free from all claims and liens by the state,—this on certain conditions which did not seem hard. Each company was obligated to deposit a guarantee fund of ten thousand dollars, to begin building immediately, and to have ten miles of road in full operation by the end of the calendar year, and certain stipulated mileages in years following. In these Kalends of March there was no expectation that before the grass should be green on the Minnesota prairies a war cloud would have settled over them. It was no time to build railroads on borrowed money. One of the companies, the Minnesota and Pacific (germ of the Great Northern Railway), made its cash deposit and began work. Late in the season it ran the single locomotive, the William Crooks, which it had purchased, over the fourteen hundred feet of track laid from the St. Paul levee to a storage shed. Its ten thousand dollars were forfeit. All the companies having defaulted, the lands, rights of way, and properties reverted to the state. The desire of the people for railroads did not and could not abate, and there were still adventurous persons willing to risk money for the great prizes lying in the land grants. In the winter of 1862 four new companies were organized, and to them the legislature turned over the grants and rights of way on liberal conditions. The St. Paul and Pacific Company succeeding to the Minnesota and Pacific, built from St. Paul to St. Anthony, and on October 14 advertised for regular business. In 1863 two companies built forty-six and one half miles, and in 1864 three built forty-three and one half miles. Meantime the special railroad bonds remained in the limbo to which the constitutional amendments of 1860 had relegated them. * * * * *