The Van Buren press., 1860-03-23
Rnilroads In TonnAnooo.


cerning the progress of railroads. Last
week we alluded to the laws Of Tennessee
upon railroads, remarking the splendid re-
suits they had produced. and promising to
publish . synopsis of them. recommending
some notifications which might be necessa-
ry to render them applicable to the condi-
ton of our STATE. We present below, with
ont comment. however, the substance of
the General Internal Improvement Law,
passed in 1852, and amended in 1854, the
results Of which are shown. by the recent
report of the Railroad Commissioner to the
Legislature. to be most satisfactory and cred
table to the State. In no instance has the
State been called upon to pay dollar of in
terest or principal, and it probably never
will be. The railroad system of Tennessee
has grown up under these laws to such a
magnitude as to carry its accommodations
to nearly every part of the State. We re-
commend aspirants for legislative honors,
aad those interested to preserve the follow
ing. which are the leading provisions
SEC. I. Provides that whenever q rail-
road company shall have procured bona Jfde
subscriptions to the share capital to an
amount sufficient to grade, bridge, and pre-
pare for iron the whole Of the main road
proposed, and when it shall have been
shown to the Governor of the State THAT
said subscriptions are solvent, and the COM
pany shall have graded, ETC., and shall have
the necessary timbers on hand, and fully
prepared thirty miles for the superstructure,
and there shall be no lien on the same) by
the written afidavits of the president or
chief engineer of the company, together
with that of competent engineer by the
Governor appointed at the cost of the COM
pany, coupon bonds of the State of Tennes-
see to an amount not exceeding $1O, 900
per mile on said section shall be iss;ued
payable at such place iu the United States
as the president of the Company shall des-
ignate, bearing 8 Ger cent. interest PAYABLE
seml-annual!!y and not having more than
~, nor less than 80 years to mature.
sec. ii. Provides that the bonds shall be
used Tor no other purpose than the purchase
81 iron and equipment for the said section
OF road, and the president must make afi-
davit, and a ma jority of the directors pass
a resolution to such effect, and the Govern
or shall have power to appoint a sworn
commissioner, in conjunction with the pres.
ident in negotiating the bonds for the pur
pose aforesaid and to act otherwise where
the interests of the State may require it.
SEC. Ill. Provides that the bonds shall
be first lien on the section or sections Of
road and equipment for which they NAV
have been issued, and the State upon the is.
suance of the bonds shall be invested with
said lien without deed from the company
for the payment of both capital and inter
est as they become due.
Sec. ~. Provides for the issuance oi
like bonds for successive sections, and thai
if the last section of the road shall be less
than 20 miles, Or if the whole road be les.
than 30 miles, bonds Of the State shall b,
issued pro rata and when the whole 1oat
shall be completed, the State shall be in
vested with lien, without deed, from
the company upon the entire road, includin1
the stock, right Of scay, grading, bridges, ma
sOnry, iron and the achole superstrucfure ano
equipments, and all the property opnedby til,
company necessary for its business, for tn,
payment of said bonds and after the bond
are issued for the first section, it shall moi
be lawful to create any lien which shall
have priority over or come in conflict will
the States lien.
SEC. '. Provides that the company shall
deposit in the Bank of Tennessee, at Nash
vile, at lea st 15 days before the interest be
comes due, an am punt sufficient to pay tn,
same, or satisfactory evidence that the sam,
has been paid or provided for, and on fail
ure SO to do. the Comptroller shall report
the tact, and the Governor appoint a suita
ble person to take possession of and contro
the property and assets of the defaultins
company. In the meantime the controlleJ
Is to pay the interest, ETC., and from time te
time report to the General Assembly.
Sec. vi. Provides that if the company
fail or refuse to pay the bonds when due
the governor shall notify the Attorney Gen
leral of the district in which the principal of
fice of the company is situated of the fact
and thereupon the Attorney General shall
forthwith file bill against the company il
the name OF the State, In the Chancery OF
Circuit Court of the County, setting fortl
the facts. and the Court shall make ali
such orders and DEGREES as may be necessa
ry to protect the State against any loss b,
ordering the property of the defaultine
company to be placed in the hands of Re
eelver, ordering the sale of the road. etc. o,
otherwise as may be deemed best for the in.
terests of the State.
Sec. VII. Provides that at the end offivt
years from tha completion Of road. the
company shall set apart one per cent upon
the amount of bonds issued to the companv
and shall use the same in the purchase o.
the bonds of the State, which bonds tbf
company shall pay into the State Treasury
after assigning them to the Governor. and
the bonds SO paid shall be q credit on the
bonds issued to the company and shall bf
held by the State as a sinking fund. Should
any company fail to comply with this section
IT shall be proceeded against as provided in
the 9th section Of this Act.
Sec. VIII. Provides that the President
OF each company shall report semi ANNUALLY
under oath to the Governor, setting forth
the final condition of the COMPANY and
said reports shall be consolidated eyerv two
years and laid before the Governor by the
LIST September. and the Legislature at the
next meeting.
Sec. TX. Provides that it shall not he
lawful for any officer of q company to en-
gage IN any speculation, or dealing in any
real estate, ON or along the line, or at either
terminus Of the road until after the road is
completed and every officer of a compa-
N.Y. before entering upon duty as such,
shall take an oath in writing that he will
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