Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-10-26

We cOtinue to-day, our extracts from the report of
the Comptroller. It is conveniently prepared
der appropriate heads, that the necessity we are
under Of printing it in chapters nePfeFes less than
it would but for this excellent arrangement of sub
| jeets:
| STATE DEBT RAILROADS. SINKING FUND-The en-
tire indebtedness Of the State Of every description
is Sl6.G43G6666. OF this only S3S44 6O666 consti
tutes the State debt proper, amount which could
be redeemed at any moment if due with the capital
owned by the State in the Bank of Tennessee. All
but 81 900 of the balance of the public debt (Sl2
1873 O00) was loaned TO railroad companies in State
| bonds. or the companies bonds were endorsed by
| the State. There Is no reason why these bonds
sbould not command a preIailW for investment, if
certainty of payment and ability TO pay are induce
ments to capitalists The material prosperity Of the
State her taxable property having increased more
| thans $3.50, 100000, from S2l9Oll,OH to S3I1 2Os,-
| GAL Since the completion Of her first railroad in
lSj4-the statutory lien upon the roads and fixtures
in favor Of the htate-the certainty of payment of
the interest through the Bank Of Tennessee and its
| compulsory payment to the Bank by the roads, by
;br removal Of its officers and Directors if not paid
promptlv-the wise provision OF the Legislature,
rPeatIpg A sinking fund for the ultimate redemption
of tbe bonds recurring two per centum per annum
| mon the amount loaned with prompt process TO
collect; sum so small rs not to embarrass the OPP
CREATIONS of the roads. but large enough to redeem
,,-e1v bond issued before its maturiy-the prosper
i+ ~ the finished roads their actual profit and
conuarativeIy small bonded debt-are material ana
ostnnsible guarantees without appealing to state
pridc that these bonds viii be paid. II the hail
roads were worthless the debt would SILL DC DC
maid The annual interest upon this Railroad
debt is S7G3.72O-tho two per centum, added for
n sinking fund. would make 81 ,OlS,1OO To pay
tbis the present State would be about doubled
a tax much lighter thanmany OF the states now pay
But the Railroads themselves have thus lar SHOWN
an ability TO nay abe interest and the sinking fund
milf
nv their profits as well dividends to the stockh0ld-
ers Ii d0esBOt batter to the State or tbs hpllhodef,
VIII ether the roads make profits for the stockAoqels
or NOT so long the interest ana me SINKING luhl
are certainly made. The STOCKHOLDERS might feel
COMPENSATED Tor their entire loss OF stock by the
cobdnre,nrpt in the value Of tReiF lands through
which the roads pass. The state iensS 70 inc eoul-
panics $4,000 of It's bonds for eac" H4e VI If ~
and additional for bridge aid, making ABOUT S4t'So0
for each mile The cost Of the finished roads, TX
lures and compliments, average about SZLOOO OF
S2S COOPER mile. The State and the bondhoder, berg
interested in the profits only 10 the extent to cover
the interest and sinking fund upon the 9ll'0OO;
would always be safe as long as the road Made
nor cent upon that amount, OF about . per cent
i1pon the whole cost Of the road. And tins per
cent or any per cent. is much more easily made Dy
a Tennessee railroad than northern One--lt costs
about double rs much TO build road there as mere
of course the road there will have to make double
as much as the road here to pay the same interest
| upon its cost. Besides understand there Is more
| canitaI Maid here at the time Of building the road
| than there-here the roads are mostly pad tor at
! the time of building. with the exception OF the
| (abouD 81 900 per mile--there most OF the COM
nanies issue $4,000 or S400UO more bonds OF the
| companies for each mile, bearing too, or > per
cent interest while Is per cent, thus creating
| a further necessity to make more than double as
much as our roads to declare the same profits upon
| the cost The Northern roads are not therefore
comparable to ours as security for investment IN the
stock even and much less so in the bonds they Is
sue and the bonds issued by the state here for
! Railroad PURPOSES having the company ana the
| State both bound in Tennessee.
To illustrate the safety TO the bondhoder, as well
as TO the State it is but necessary TO glance at te
! present condition and operations OF the hnlsheu
| roads in the State-thOsc not noticed having peeR
finished less than year or the facts concerning
| them not readily accessible. The Nashville ana
Chattanooga road fixtures and equipments, cost
| about SIS 900 per mile. The State endorsed her
bonds for 81 G5OOO0 the interest and sinking fund
| upon which amount to Sl32, O0O-the net profits OF
the road for 1853 are S320OOO leaving SlSS,OO0, al
ter paving interest and sinking fund.- TO be dlstr-
| buted among the stockholders.
| The Memphis and Charleston Railroad fixtures and
CONTINENTS cost about S2S,000 per mile State
loaned it Sll0OO00; the road issued S2,OOOO0O OF
| other bonds interest upon the whole and sinking
fund upsn the part loaned by the State S2OSOOO
the net profits of the road for 1859 SGOOOOO leav-
ing 1892 900 to be divided as profits among the
| stockholders.
The East Tennessee and Georgia Road fixtures and
eouipments cost about 81 600 per mile-the State
loaned and endorsed for it 81 $4,000 OF bonds, the
| interest and sinking fund upon that amount are
| sI04 g6O-the net profits of the road for 1889 are
SI62 900 leaving 900 to be distributed among
the stockholders.