Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1868-11-20

Gratis failed to vote They will not likely
be guilty of such neglect in future cleo
tons. Three of the Congressional dis
tricts gave Democratic majorities, and
three gave Republican majorities.
---~-------
WILL. THE LIABILITIES OF TIE
STATE BE REDUCED or IN
CREASED?
A bill is pending before the Legisla-
turc TO sell certain railroads in this State
which have failed to pay the interest on
the bonds loaned them, the sale being
urged on the ground Of reducing the
liabilities Of the State. While this bill
is pending, another bill passed the Senate
yesterday on its third reading loaning the
bonds of the State to various railroads to
the amount of $2,495,000. The effort
seems to be to rush through the bill loan
ing the bonds while that providing for
the sale of the roads that have not paid |
their interest "hangs fire." either in the !
hands of the committee or before one OF
the other house of the Legislature. If
the former should pass it will bring the
liabilities Of the State well up to S4O,-
100000, while there may be doubt as
to any reduction being made by sale o!
the roads. Perhaps the following article
from the Chattanooga Republican (Radi-
cab will throw some light upon the
subject:
"a bill has been introduced into the
| Legislature to force a sale of the North
western, GAINESVILLE, Edgefield, WlncheS'
ter and McMinnvile railroads. We may
be mistaken, but our impression is that
it is CANNON. The State made advances
to these roads ard was empowered to
appoint receivers, and in certain contln-
| gencies to sell the roads. Al the last
regular session of the Legislature the
State entered into new agreement with
most of them, and in the Omnibus Bill
made lavish appropriations to some OF
these and other railroads, but agreed that
none of the roads should be sold unless
they for "two consecutive" years failed
, to pay the State interest. If road
{ for two consecutive years after the
making Of the new agreement failed,
then it might be sold. None OF them
5 have since that time failed for two
5 consecutive years, and they can't
vet be legally sold. 1t IS very
questionable whether they can be sold
l at all legally. If there is any doubt
= about it, the State is not likely to make
f much by the sale. 1t is hard to say
. whether there has been most roguery OF
dunder-headism in the Legislature about
railroads in Tennessee. The Edgetielo
road owed the State 81, ,SOl, oil
Sill, SO4 more than the whole cost OF Its
construction, and it never paid dollar
n into the State Treasury toward the IN
o terest on its loan, but the Legislature
made an arrangement to give it S3O0,OOt
to help it build road in Kentucky, a
the same time STIMULATING that 1t shoujC
e not be sold unless it failed to pay its IN
s terest for two consecutive years. Ih'
. | GAINESVILLE road owed the State 81 ,46S,
y 80 and has been made one of the mail
i arteries of travel in the State, but TO
i some reason did not get an appropriation
= under the Omnibus Bill, and may perhap
be liable to be sold. There may be al
arrangement by which under such sal
T the Nashville and Louisville RailrOat
e COMPANY may buy it at a great bargain
: Ouicn Sa6e? The Northwestern roa'
o owing the State S3,265,0OO neve
had been able to make even running
expenses, but S550000 more wa
=, loaned to it, and a stipulation
a made that it should not be sold unles
C it failed to pay its interest of two con
secutivo years. It can't be sold now
and If it could, would only be bought b,
e the Nashville and Chattanooga or West
+ ern and Atlantic roads at a great bargain
n The Winchester road owed the State 81,
:, lGJ 500 and never made expenses. !
Il got 100000 more last session Of tn
is Legislature under the stipulation that
l. should not be sold unless it failed to pa
;e | interest for two consecutive years.
!, can't be sold. The McMinnVille road g
- from the State Sl,24O000 or $4,000
2 more than the cost Of building 1t.
IS never has paid running expenses, but a
is it did not ask more State aid under th
!. omnibus bill it may be liable to salt
Our Governor desires to save tn
< State from loss, but it Is yer
Id | questionable if the roads can b
4 legally sold. 1t may be a questio
n whether the State SHOULD sell thei
if he could DO so. Have the roads ha
III q fair chance? Have they been proPerl
ID managed VIII their sale aid In til
at development Of the country? We hay
f. no doubt that the suggestions in tn
- Governors message that the railroad
10 that have failed to pay the interest 0
at their bonds shall be sold, springs trol
ly the most praisoworthy intent, and from
l. belief that the powers secured by ii
= State under its prior loans is still intac
- but an examination Of the matter ma
ne reveal that there is doubt in relation
al some of the roads. If the State has til
nd power to sell, and the roads have ne
~ performed their part Of the contrac
~ they will have no right to complain wha
Ut ever may be done.