Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-11-15
THE STATE RAILROADS.

THE STATE RAILROADS.
On the Priority of Lien Held by She
state I'm Her Railroads, and the
eraI Government.
We present below an abstract contain
ing the essential portions Of very able
letter Of Gen. Jerry T.. Boyle, Presidentof
the Evansville, Henderson and Nashville
railroad to Gov. Brownlow, regarding the
rights Of the State and her railroads.
against the exorbitant demands of the gen.
eral government against them, and the
preposterous attempt to enforce sGch claims
by military edict. II is important, not
only to railroad stockholders, but as a legal
question involving great principles:
STATE OF TENNESSEE EXECUTIVE De-
PARTMENT, NASHVILLE, Nov. 10, 1867
To the members Of the Legislature-GEN-
TI.EMEN: On the recent visit of the Con-
gressional Committee ON Southern Rail
roads TO this place, | requested Gen. Boyle,
President of the Evansville, Henderson
and Nashville railroad, and Hon. VIM.
Bosom, member of the House Of Repre-
sentatives TO represent me and the inter-
esls of the State before said committee.
They presented in substance the document
which herewith present to you, from the
pen of General Boyle, which he has kindly
furnished at my special request. 1t is a
document ofgreat importance, and will ma
terially aid you in any action you may take
in reference TO the subjects treated therein.
The facts, figures law and arguments pre-
sented are worthy Of your careful and se-
rious consideration.
w. G. BRowNLow,
Governor ofTennessee.
NASHVILLE, Nov. 9th, 1867.-To His
Erceilency Cor w. c.. BrOlcnlOp: SIR: In
accordance with your request, | waited
upon the Congressional Committee on
Southern Railroads while in the city,
and submitted TO Mr.. McClurg, the chairs
man, for their consideration, the views and
opinions before presented by me to your
EKcellency, and which l now respectfully
deliver to your Excellency in writing as
requested by you.
In 1852 the State of Tennessee began an
extensive system of internal improvements,
and the Legislature enacted the law en-
titled, An act to establish system of in
ternal improvements in this State" APP
proved February llth, 1852.
Under the first and tenth sections of this
act, liberal and generous aid was given TO
fourteen roads of the State, and by subse-
quent acts the benifcent provisions of the
law were extended to all other railroads in
fata fhnr 1f fha
railroads in Tennessee became the recipi-
ents of State favor and aid.
BY the third and fourth sections of this
| internal improvement law the State Of Ten
nessee creates and reserves a lien upon
each road for the amount of bonds of the
State issued to the respective roads, and
for all interest which may accrue on said
bonds, in the following words: And when
the whole of said road shall be completed,
the State of Tennessee shall be invested
with lien, without deed from the COM
pany, upon the entire road, including the
stock, right of way, grading, bridges,
masonry, iron rails, spikes, chairs, and the
supentructure and equipments, and all the
property owned by the company as Incl
dent to or necessary for its business, and
all depots and depot stations, for the pay
ment of all of said bonds issued to the COM
pany, as provided in this act, and for the
interest accruing on said bonds"
And in order to render the lien of the
State exclusive and prior, and to secure the
State of Tennessee for the amount gener-
ously loaned to the companies, the Legis-
lature further enacts in the concluding
clause Of the 4th section. "And after the
Governor shall have issued bonds for the
first section of the road, il shall not be law
ful for said company to give, create or con-
yey to any person or persons, or body cor
porate whatever, any lien, incumbrance or
mortgage of any kind which shall have
priority over or come in conflict with the
lien of the State herein secured and any
such lien, incumbrance or mortgage, shall
be null and void as against said lien OF
mortgage Of the State, and the said lien OF
mortgage of the State shall have priority
over all other claims existing or 10 exis
against said company.
If any force is given to language, anc
any regard paid to the law of State, there
cannot rest doubt in the mind Of the mos
ignorant or the most skeptical, that tht
: State Of Tennessee has pre~existing prio
lien and superior equity for the securemen
! of her claim over all other claims, of an,
I and all parties, whosoever or whatsoever
This prior and superior equity in right o
your State, must and will be recognized
and enforced by the courts of the Unite'
States.
After your State expended many mil
lions of dollars in the building of ihes
roads, the rebellion broke ont, and dis
astrous civil war pervaded and desolate'
| the Southern States. Your State beinI
part Of the theatre Of war, the military all
b thorities took possession of the territory o
Tennessee, and of the railroads in the State
4 Before the Federal armies moved upon tn
capital of your State and took possession G
the railroads, these reads might be diyisa
BILE into two classes First, those that ha
complied with the law of the llth of Feb
ruary, 1852. bv paving the interest this
had accrued on the bonds of the State i:
sued to the roads; and, second, the road
that had failed, and were not able to pa
.e the interest on the bonds issued TO then
Y and which roads passed into the possessio
a and control of the State, under the 9th SCI
ton Of the act of February llth, 1852.
: The paper then refers TO the WinchesI'
y and Alabama, and Edgefeld and Kentuck
4 railroads az having been, under the lie
N and mortgage created by the act of 1855
the property Of the State, when they We
taken possession of by the United Stat
government, and adduces the figures
. show that the claims of the State for Il
use of these roads, if as it should Justly b
is considered an offset against the clain
5 of the United States government, will con
:, terbalanoe the latter claims.
n 1t then proceeds to consider the case
IN the Nashville and Chattanooga railros
4" and all Others belonging to the first cla
or those which by meeting the State int
est due on aid, had not become subject
the State lien; and shows that the bon
a exacted from such companies operate b
as secured mortgages, and that in go
lat faith with the understanding at the til
- the bonds we're executed, the. United Stat
ms should allow for the use Of the roads VIII