Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1855-12-12
SKETCH OF THE
SPEECH OF MIR. HATTOv.

On the bill to guarantee TIE payment BIZ the State Of
/ the Bonds Of the city Of Memphis, issued and to
be issued to the Memphis and Lutte Rock Railroad
| Company, Monday, Dec. 10.
/ Mr. HATToN said have very attentively listen.
ed to all that has been said in this discussion both
for and against this bill have felt extremely anx
ious to arrive at correct conclusion upon it-have
considered Of every fact and argument adduced
throwing any light upon the subject; giving to it
the weight TO which thought it legitimatcly enti~
tied, in the formation Of my opinion. Tae result
has been, that now believe as did upon the FIRST
introduction Of the bill, thai it should be passed in
10 a law.
do Lot propose, sir, an extended discussion of
the merits of the bill. The argument in its favor
has been already ably presented by the gentleman
from Hamilton. But, as some gentlemen seem yet
to hesitate how they should their votes, will
in a few words, suggest the course Of reasoning by
which my mind was brought 10 a conclusion favor.
able 10 the bill.
The State is asked to endorse the bonds Of the
city Of Memphis 70 the amount Of $3.50, 900, for
the purchase of iron and rails for the Memphis aud
Little Rock Railroad; the company first endorsing
the bonds and the city Of Memphis and the com
pany giving TO the State specific lien upon the
iron and rails of the road as additional indemnify
What liability would she incur by the endorsement?
What risk would the State run Of having TO paw
the interest of these bonds It fell due, or the
bonds themselves at maturity? This inquiry in.
wolves others They are: l. What provision, if
any, has Memphis made for tho payment Of the in
terest upon these bonds? >. What capacity has
she to meet the bonds themselves at maturityY g.
In the event OF Memphis failing to meet the bonds
and the interest accPuing upon them, what indem
nifty would be afforded by the endorsement of the
bonds by the company, and 10y the lien given upon
the iron and rails Of the road? BY the terms OF
the charter Of the city Of Memphis, the MAYOR aud
Aldermen compelled to adopt an ordnance i'm.
posing special tax for the purpose Of meeting the
interest upon these and other bonds issued by the
city. SO rigid are the terms Of the act OF incopora
ton, IN reference 10 this subject, that in the
event the Mayor and Aldermen should refuse
or neglect TO adopt and enforce such ord
nance, they are disqualified for the performance
Of any other duties as officers of said corporation
nothing that they can do having any force or valid
ty There can be no DANGER then, of the States
having 10 pay any interest upon these bonds
OF Memphis proving unable 10 meet the bonds
at maturity, il seems TO my mind, sir there is no
ground for reasonable apprehension. None! She
is not only one Of the richest, but Of the most
thriving and prosperous cities in the Southern States
Her real estate Is exceedingly valuable, and grow
ing more so every day. Her Navy Yard grounds
and the Promenade recently recovered by suit
together with her other real estate are not worth
les-, now, than s., OOO, 900. Aud If the ratio Of
increase Of the value OF real estate continues for
tcW years longer t has for the few last her real
estate will itself be amply sufficient 10 pay her out
Of debt Her income for the last year amounted
70 $40 600 more than her disbursements, Including
interest on her Indebtedness OF every Character
this excess going TO the discharge @! the principal Of
her debt Another idea that should not be lost sight
Of in estimating the pccuniary condition OF Mem
phis. very large proportion OF Observation-Disclosures
las ha.n created hy stock subscribed ia raIlrU4l-
This stock is valuable. II some Of the roads t Is,
or viii very soon be worth premium. In AL, 10
viii be very near par. The means, then, thus ia
vested, must not be regarded as lost. The iudebi
ciness incurred Ia procuring il Is cancelled, or very
nearly il not entirely So by certificates Of stock
given for Il. in an probability, by the time dc
bonds she has ssged for railroads due, tue stock
Ia the roads will be gladly taken by the holders of
,ie bonds, 10 exchange Tor them, dollar for dollar
This has recently been done ia a number 81 cases
The city Of savannah furnishes an instance Tho
holders Of her bonds have given them for her stock
in various roads, the stock valued a. par. Ncm-
Dbi., then, by taking stock In a number Of roads,
i., not 30 much gone Ia debt, properly speaking.
as made an investment ol her m,sns AID, ,iF
by tac time the bonds nov asked % be endorsed
by Tennessee shall fal due, the stock u ,iIc Mem.
pals aud Ltue Rock road vii Itself De eagerly
-ousht Tor, aud taken in exchange TOR these bouds
n 30, the bonds viii be paid of without Memphis
having 20 make any draw upon her other resources
u o. The road vii have been bulk, costing aer
nothing.
| DO ne, believe, then, Mr. Speaker, that there
eau be any REX 70 the state 10 this endorsement,
even IL We lool Cd alone to Meuphls for indemnity
against loss. But, sic, before Tenuessee endorse
these bonds. the Little Rock and Memphis Railroad
Con'pany endofse them Ilis company has gwen