Loudon free press. (Loudon, Tenn.) 1852-1855, 1854-01-31
GOVERNOR, MESSAGE.
Observation-Disclosures,
Naslvie. JAN 1854.

VI
body on the 9Th inst, reuesting "His Excellen-
cy the Governor to inFn the House whether
any bonds of the State ave been issued to the
East Tennessee and Gorgia Railroad Compa-
ny, the amount of such ,onds and by what au-
thority issued would ave been responded tc
before this period, had inot been for indisposi-
ton, which has cOnhneCme considerable por-
ton Of the time to my Dom and bed.
A portion of the inDrmation asked for in
your resolution, can befeund by reference to
the 18th and 18th pags Of the Comptroller
report, which was made o the Legislature some
time in the month of October, 1853. The
main object Of your resolution Is | presume,
to ascertain the amount of bonds that have
been issued to the East tennessee and Georgia
Railroad Company since my connection with
the Executive Department The amount of
State Bonds issued to aid company, is one
hundred and thirty thousand dollars, which the
records of the Department will show to all per-
sons who may think proper to examine them.
These bonds were issued to the East Tennes-
see and Georgia Railroad Company. under the
10th and 18th sections Of an act passed on the
18th day of February, 1852, entitled, "An act
to establish system of Internal Improvements
in this State" Soon after my installation as
Executive, Mr.. Campbell Wallace, the Presi-
dent of said company, made application for the
issuance Of bonds under the 10Th and 18th
sections of the act herenbefore recited. The
Executive took up the statute and the apphca-
non for the bonds, and gave them careful and
critical examinations bringing to his aid those
rules for the construction OF statutes known to
the legal profession and after deliberate con
sderatien came to the conclusion that the com
pany was legally entitled to one hundred and
thirty thousand dollars in bonds, it being the
amount of debt incurred for the necessary IRON,
rails, spikes, equipments, &c, bysaid company,
! bona fde and before the passage of the before
recited act.
The Executive had been informed that appli-
cation had been made to his predecessor, by
said Company for the issuance Of bonds, and
that the application had been by him refused.
He was also informed, that the opinion of vari
GUS gentlemen of high legal attainments had
| been given in favor of the issuance of said
bonds. Examination has been made, with the
aid of the Secretary of State, for the opinions
but they cannot be found in any of the lies in
the Executive Department, nor can there be
any evidence found i'll the Executive books or
register, that the said Company ever did apply
for the bonds referred to. These facts under
stood, caused the Executive to be exceedingly
careful in all the steps he was about to take in
reference to said application for the issuance OF
bonds. He, therefore, called upon the Attorney
! General, who is, by the act of 1885, made the
adviser Of the Executive, in all legal questions,
and required when called upon to give his opin-
ion in regard to the manner in which tie law
shall be executed. The opinion Of the Attorney
General as required was given, q copy of
which is herewith transmitted and made a part
of this message. The opinion Of the Attorney
General is methodica, concise and cOgent, be-
ing entirely consOnant with the opinion Of the
Executive, and is by him endorsed, and adopt
ed as the correct Interpretation of the 10th and
18th sections of the act hereinbei0re recited.
In addition to this, your attention is most re-
specially directed to some very important facts
connected with this subject In the first place
YOU are referred to the 18th section of "An act
to charter Owen and Winstead Turnpike Com
panv," passed the 30th of January, 1850, por-
! ton of which is as follows: "That so much of
the act Of the 4th of February, 1913 as requires
the Governor of the State to endorse and guar
antee the bonds of the East Tennessee and
| Georgia Railroad, to the amount OF three hun
| dred and fifty thousand dollars, be, and the
! same is hereby repealed, and instead of said
! endorsement and guarantee, and for the purpose
| of aiding in the completion of the East Ten
! nessee and Georgia Railroad it shall be the du-
| tv of the Governor of the State and he is here
| by required, whenever he is satisfied that the
said Railroad Company has so far progressed
! in the construction of said road, as to make it
] prudent and proper to procure the iron, rails
and equipments, for completing tie same in
sections of forty miles or more. Then, and in
that case, he is hereby authorized and requIr-
ed to issue Coupon Bonds of the State, for an
amount sufficient to pay for the rion, rails and
equipments, to be placed on the sections which
have been so far progressed with.
And in like manner. whenever additional sec
tons of not less than twenty miles in extent
shall likewise be so far progressed with as to
make it prudent and proper, to procure and pay
for the iron, rails and equipments for ccmptet-
ma the same, it shall be the duty of the Cover
nor to issue the bonds of the State, for sufi-
cielt amount to finish such additional section,
until tie ,choLe line Of road from Dalton to the
Tennessee ricer has been completed, under the
same rules and upon the same conditions as
provided for to enable said Company to cont
DIete first section" provided, however, that
the whole amount of bonds which the Governor
of the State is authorized to issue to said Com
pany shall not exceed the sum of three hundred
and fifty thousand dollars, the amount of said
endorsement and guarantee as aforesaid for tie
completion Of said road from Dalton to the
Tennessee rirer"
1t will be very readily perceived from this
act, that the General Assembly set out with the
principle that the State was to issue bonds suf-
iicient in amount to pay for the iron, rails and
equipments, to be placed on the East Tennes-
see river,and Ga. Railroad from Daltcn to the
! Tennessee and that the three hundred and fifty
thousand dollars was considered at the time SUI
ficient in amount for that purpose; hence the
proviso restricting the Governor in the issuance
of the bonds to the three hundred and fifty
thousand dollars. Under the 14th section, the
Governor was authorized to appoint faithful
agent whose duty il was to take control of the
bonds, of the State, so as to see that the same
was applied to the payment of the railroad iron
and equipments, including engines and cars for
the Railroad Company above named. DR.. j.
G. NJ RAMSEY, of Knoxville, was appointed
agent by the Governor who took charge of the
bonds and disposed of them as the law direct
ed, and they were not sufficient IN amount to
purchase the iron rails, chairs, spikes, equip
ments. &c, and he reported that fact to the Leg
isature OF 1872, which report can be found in
the appendix, page POI, to the House journal
of 1872. In that report, Dr. RAMSEY makes
the following statement.
at was ascertained that the State loan itseli
was insufficient in amount to purchase the iron
and equipments necessary to put the road IN
successful operation from Dalton, Georgia, tc
the Tennessee river as the act under which | re
ceived my appointment eridently contemplated
And it was considered essential to the interest o.
+bo Cto+os ord o+ber stockholders as well as tC