Brownlow's Knoxville Whig, and rebel ventilator. [volume] (Knoxville, Tenn.) 1863-1866, 1865-11-01
STATE OF TENNESSEE,
EvrcUTIyE DFPAprurr

STATE OF TENNESSEE,
EXECUTIVE DEPARrMET
NASHVILLE, Tenn, Oct Gath, 1855.
Gentlemen Of the Senate and House Of Representa-
tires
In my last message, advised that the Railroad
Companies Of the State be required to pay their in
terest on debts due upon Bonds issued and endorsed
for their benefit. L further advised you that there
is now due upon Railroad Bonds loaned to the diff
ferent Railroad Companies in the State So, 5O9
This is the interest due upon the Bonds endors
ed by the State for the Railroad Companies amount
ing to Sl6,21l, OO0 This is subject of vital i'm
portance to the people of the State and since the is
suance of my message have given it much consid-
Grafton, and have awaited myself of the best sources
of information.
1 am now satisfied that it will be utterly impos-
sble for most of the companies to pay the interest
on the endorsed bonds of the State, and the roads
will pass into the hands of receivers unless the State
provides for the payment Of the interest now due
In word, if the payment of this interest is not
provided for nearly every road IN the State will go
under The first effect of this will be to sweep from
the Thousands of stockholders all they have expend
ed in building these roads Should the State attempt
to run them, there will be extravaganza, waste,
swinding and general corruption, and the State will
have to issue several millions of bonds in that event.
or tax the people beyond endurance to raise the
money to meet this interest and to put these roads
in order If the State should sell these roads they
would be purchased by combination of spectators
from abroad, who will manage them for their own
benefit, without any regard for the honest and pub
lie spirited people who built them.
They would sell for less than half their real value
and finally leave the State to pay the bonds, or q
larger part of them which result is the most that
happen to the State if the roads left in the hands
Of the companies.
What then is the best policy to adopt, and how
shall the State meet the issues2 respectfully sug
90 tha mill
of bonds, to six seven, eight and ten years the
first payment of interest to commence in July next.
Let them be given in payment of interest now due,
upon condition that they are taken at par.
If the Legislature shall think proper, let them be
sold on similar conditions and the proceeds applied
to the payment of the interest on all outstanding
bonds and let there be further lien in favor of the
State each road for the paid for its benefit.
The first effect Of this will be to bring the bonds of
the State up to par value Immediately and to place
the credit and integrity of the State above suspicion
Our people are honest, and will submit to taxation
almost beyond endurance rather than to be disgraced
by the brand of population. The second effect,
however would be to relieve the people of the heavy
taxation now imposed on them, and hereafter to be
imposed them, to meet the interest for which the
State is liable. In the future, when the people re-
cover from the devastations of war, they can pay
two dollars easier than they can one at present.
The third effect will be to the railroads TO the
stockholders.
They can and will meet the current interest as it
arises but they cannot meet it and the back interest
They cam also, in the end pay off the bonds they
mature or before hand by setting apart so much Of
a sinking fund with which to buy in their bonds
Finally, it will the State from all appearance
Of repudiGtion For if the State now refuse to pay
the interest due upon her bonds, which have been
Endorsed by her, and sold upon her credit it will bt
called repudiation let her motives be what they may
The credit of the State will be gone forever and this
must not be allowed. Let us maintain our credit
honor and integrity at all hazards.
Whilst upon the subject of Railroads, allow me t.
say that law should at once be enacted providing
for the punishment of any and all parties conducting
Railroads in this State, enjoying the credit of tht
State who are discriminating in freights, as K
favor the cities of other States TO the prejudice anC
injury Of the large towns of State. Such abuses
should be met by prompt Legislation.
There is in the future wonderful prosperity be
fore US, when our people and roads can pay off thu
State debt with scarcely effort provided we have
the necessary Legislation now, in this, their hour
need. Give the Roads time, aid them now, and, il
the end, the State will not lose dollar. These ar
not only my views, but the views of every intelli
gent man with whom / have conversed.
VIM G. BRowNLOw.