Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-07-11
From the Memphis Eagle and Enquirer.I
in Tennessee-LetIer from
the state Comptroller.
CoMPrRoLLEE's OFFICE,

the State Comptroller.
CoMPrRoLLER's OFFICE
Nashville, Tenn, May 80. 1857.
John. Z. T. SHeed, Esq, Atty General Of Tennessee:
DEAR SIR: Your favor of the goth inst, came
July to hand, in which you request me, as an eli
Ger OF the State to give you an early answer to the
following Undergraduates, viz: " What Is the con-
dition of the different reroad companies in Ten
nessee, what amount of bonds have been Endorsed
by the State and Issued directly to them, and how
have they met their engagements as to Interests,
&c? What are the liabii'i s, and what is the
amount of taxable property 10 the State according
to the last assessment? Are the roads finished
sel-supportiug-or is it likely from present iDdi-
cation, that any of them win become chsrgeabe 70
the State, and thereby affect the credit of the
sames
| reply to the foregoing, can now onlv give you
/ brief general statement of the condition OF the
several roads, and of the liabilities and resources
| of the State Time will not allow me to do more
at present. Ny annual report will appear IN Octo-
| be~ next, when more explicit stat ment will be
! given to the public, and more In detail
First as to the general condition OF roads. The
/ Nashville and Chattanooga Railroad has been for
some time past completed, and is dong large
business. ] his company, understand IRON rella-
Die information, its last annual meeting declared
dividend of three per cent to the stockholders,
after paying its expenses all aceruing interests, and
retaining a sir kingund sufficient for the further lm
proven ut of the roa1; equipment, &C. The whole
State loan to this road is 81 5000 This con-
! pany has always met its interest upon the bonds
| loaned promptly. The East Tennessee and Geor-
ga Railroad was completed about to years ago, and
/ is also doing large, and DOUBTLESS profitable bu-
! sinese. This is of the best constructed roads
| in all the South and will certainly be paying one
The amount the State loaned to this road Is ST.
| 22I 00O This company will, as heretofore, meet
| its Interest with promptness. The Memphis and
| Charleston Railroad has been very recently finished
and is alrta doing good business. This Road
will, in my opinion, be paying one, and Its stock
holders must, before great while, realize from it
handsome dividends. The State loan to this COM
pany is 81, 100, 600, the interest upon which has
| been always punctually met. TIE Mississippi Cen
| trail aud Tennessee Rai!road has probably Oeen fin
isbed to Jackson within the last few days.
! The amount of bonds Issued to this company by
the State is 1914 600, the interest of which has
hitherto been promptly paid. The Road, running,
as it does, through very rich, f1tie aud produc-
tive region-one of the first cotton growing Por-
lions OF the State-there be bus little doubt,
if any, in regard to its doing, very soon, hand
some and profitable business. The Est TeDnes-
see and Virginia Railroad Company, from iniorma-
ton recently obtained, pushing their Road rap
iCly TO completion. More than half the road is al!
ready finished and in good running order. The
| cars are now running above Knoxville to Bulls Gap,
some 81 miles, and on the upper end, 10 the w ataus
river 20 miles. This is one of the most important
roads, in many r. spects, in the State Il consti-
tutes link in the great chain of Railroad which,
when completed, will be nearly 5000 miles in ex-
tent and is destined to DE, from its natural posi-
ton one of the greatest tboroug hares for travel In
the Union. This company has never failed to p y
the interest due upon the loan made to 1t by the
State, and no one, presume, will doubt for mo-
ment its ability to do after the road is finished
The Mobile and Ohio, Louisville and Nashville,
Tennessee and Alabama, and other roads, all
advancing under prospects warrantng the hope of
speedy completion; and by their construction, the
landed property of the State has been enhanced in
value many millions. Not single road has yet
become delaulter but ali have uniformly pail their
Interest, aud with great prOmptness. In regard to
the bonds loaned to the several roads now hnlshed
| consider the State being already unquestiona-
bly, secured against any Ioss- The roads, being
s,lfsupporting, will in my judgment, have not
Ouly the ability to pay the interest and sinking
fund as required by law with which to meet the
bonds upon maturity, their first iustalment of
which has been paid into the Treasury, but will
also pay handsome dividends to the stockholders.
The whole amount of bonds, up to the present
time endorsed by the State aud issued to the sew
era roads and for which it holds statutory liens on
each security, is SIS, 265000.
Secondly, to the liabilities and resources OF
the State. The total State liability, actual and con-
tingen up to the presr date, is So, 337 S56 sc.
This will be gradually increased as the unfinished
roads progress in construction. The actual indebt-
edness OF the State is S4072, $50 &c, and for
W len the State has no source to look to for pay
ment but must ultimately, when the debt natures,
be paid out OF the State Treasury, unless IN the
meantime it is otherwise provided for. The liabil-
ity incurred the part of the State ty Oaning its
credit TO the several Railroad companies together
with the actual State indebtedness, make up the
sum first mentoned-the total liability OF the State.
By reference to the former COmpJrolers Report,
you will see that the total value of all the taxable
properly IN the State for the year 1854 was, $2l9
OIL, O47 81. For the year 1856 the valuation ill.,
creased to 1851 932, SCI 81, or there abouts, the
estimates from some few counties not being exact
ly correct, the increase in two years being about
S38 600 600. Aggregate statements for tue year
1857 have been received up to this date from thr-
ty-twO counties, which show, compared with the
same counties last year, increase of the valua-
ton OF the taxable property of Sic, 100000 II
the balance OF the counties increase in the s .me
ratio the total increase in the State the present
year over the last cannot fall much if any, below
$40, 600 600.
The State, asfyOu are aware, takes no stock 10
any of her Railroads.&c. only loans its credit, in
the shape of Bonds, on graded roads, so far 10
purchase iron and equipments, and lien is there
by executed to the State upon the whole road fix
lures. 1t is hardly probable that any road in Ten
nessee, under the provisions of her internal i'm
provement acts, will ever be undertaken without a
prestige of success before State liability begins,
private means must be expended in grading, and
cross ties procured, which could be obtained only
upon secure projecs. do not believe that any Of
the roads now I'm sned, IN course OF construction
will ever become chargeabe to the State, and
thereby affect It's credit II any of the sever
al Roads should prove to be failure, and become
so, the iron and equipments alone would very near
ly meet the loan; so, in any event. the State could
not be seriously embarrassed. In such case the In-
terest would be promptly paid by the State, through
the Bank of Tennessee; which has ample means 10
do So But l before stated the State loans its
credit only to specific amount 70 each road. after
it graded and the cross-ties procured, which must
be done with private means, Tor the purchase oil
| iron nd
Whole road and fixtures, which has priority over all
others, is executed TO the State
You will excuse me for not being more explicit
and for not giving you the information you desire,
more in detail. The duties have to perform will
not permit ms.to be more so now. / hope, howev-
er, that you will be able, from the i0reg oing state
ment, to form some general idea OF the true cond-
ton of our roads and the resources aud liabilities OF
| the State.
l am, sir, with the highest respect,
Your obedent servant.
JAMES q. LUrTRELL,
Comptroller