Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-01-14
RAILROADS AND RECEIVERS.
Message from the Governor ina Regard
60 the Evansville. Henderson and
Nashville Railroad and the Edgefield
and Kentucky Railroad.


House Of Representatives | communi-
cate herewith to the Legislature a report
from the President of the Evansville.
henderson and Nashville Railroad Com
pany, setting forth the manner of ex,
penditure ofS200,00 of Tennessee bonds
and other funds received for the construc-
ton of the Evansville, Henderson and
Nashville railroad, from the terminus Of
the Edgefield and Kentucky railroad at
State Line, nOrthward in the direction of
the coal mines and exhibiting the con-
dition and progress Of this important line
OF road.
1t is a satisfactory exhibit, showing
the completion Of twenty-five miles of
road from the terminus of the EdgeGeld
and Kentucky. Railroad, adding that
much to the length OF the Edgefeld and
Kentucky, Railroad, and thirty~two
miles constructed from the Ohio River at
Henderson southwark, with six and half
miles nearly completed, with material
and means to build it to jacksonville,
thirty eight miles from the Ohio River,
being sixty-three miles ofroad completed
and in operation by this date, leaving
1 lulIty -lfift tilil6o " NC DGflb " COInpl6Jb
the road through the coal-felds from
Nashville to the Ohio River, furnishing
another and most important connection
with the Northern system of railroads.
This line Of road is of the greatest inns
portance to our State and people, as it
will supply competing line of transpor>
tation, exempting our people and their
commerce from the unreasonable and ex>
horbitant rates OF an exacting monopoly,
adding a new value to the Edgsfeld and
Kentucky railroad, redeeming the inter-
est Of the State in it, and furnishing an
abundant supply Of superior coal for man.
ufacturing and domestic uses, to Nashville
and large part Of Middle and West Ten
nesSee. 1t appears to me that the report
manifests a faithful and judicious manages
ment of the funds, and the results accom-
| plished show that economy and integrity
characterized the management. The re-
port is submitted for your information
and consideration.
l also communicate for your consider
alton and information report from the
Superintendent of the Edgefeld and Ken
lucky railroad, setting forth the opera
tons of the road from November Ii,
1867, to November l, 1868. together
with a copy of the contract with the
Evansville, Henderson and Nashville
railroad, under which the joint roads
are being operated.
In this connection will suggest that
joint special committee Of the General
| Assembly be appointed to make settle
ment with the present incumbent and
late Receiver OF the Edgefield and Ken>
! lucky railroad. | do this because the
Receiver has refused to settle with the
present incumbent, and expressed de-
sire to settle with Legislative com
mittee.
There is no law known to me making
it the duty of the President of the
Evansville, Henderson and Nashville
Railroad Company, or of the Edgefield
ard Kentucky Railroad. to render re-
ports to the Governor Of the State and
presume it is done in pursuance OF their
sense of duty, and through some chan~
mel to give the information contained in
their reports or the authorities of the
State.
There is prevailing impression that
the Governor has authority to make set
Elements with Receivers and cOerce set
Elements from them, and that it IS his
duty to look after Receivers and take care
OF this great interest of the State. There
is no law giving such authority or i'm
posing such duty.
The Governor has the power Of ap-
pointment and removal Of Receivers. The |
law makes it the duty Of the Comptroller |
to settle with Receivers of railroads.
call your attention to section ll0J Of |
the Code Of Tennessee, which reads as
follows: "Thc Comptroller shall, from
time, settle with the Receiver who shall |
forthwith pay into the Treasury any sur~
plus funds in his hands,
1t would appear that the Comptroller |
has no power to compel Receivers to set |
tie unless it arises by implication from |
the mere grant Of authority to settle. !
Certainly the Governor has no power OF
authority to settle with Receivers, or give
order to enforce settlement. The Legis- !
lature must supply the deficiency in the |
law, and provide the remedy to coerce
settlements.
1t has been intimated that the bonds |
of the State issued to railroads have been |
misapplied and directed to private use,
and in my annual message of the Sth Of |
October, 1867, called the attention Of |
the Legislature to the subject in these
words: al advise the appointment of |
Commissioners by your body to sit dur
ing your session, and make new settles
Ill tHnf h.
may be made to show all settlements
satisfactory, both to the State and the
companies. The expense of such settle
ment will be more than compensated for
by rescuing the accounts from ruinous
oblivion"
In view of doubts entertained as to
the proper legitimate application of the
bonds Of the State issued to railroads, /
feel it solemn duty to urge upon you,
as in former message, the appointment
Of a Board of Commissioners with full
and complete power and authority to
settle with all Receivers, and others who
have received the bonds Of the State, and
compel them, by due course Of law, to
final and full settlement.
In my annual message before referred
| to, in discussing this subject, took Oc-
casion to say, Meanwhile let us guard
against any future increase of the State
| debt by issuance of bonds to railroads,
| unless it be in cases where the interest |
of the State would suffer for want of
! further aid" And in my cOmmunica-
ton to you on occasion of your assem-
bling in your present adjourned session,
| expressed the same views.
The continued failure TO make settles
ment with Receivers, and the detriment
to the public interest arising from such
failure, has led to the opinion that the
office Of Receiver should be abolished,
and probably caused the presenting Of the
bill now pending in the Legislature-and
which has passed one House, to restore
the railroads to the companies. Believ-
| ing that this bill-if it should become
law, will be fatally injurious to the credit
Of the State, beg leave to offer my
T asOns for the conclusion.
The internal improvement policy of
the State, established by the act of Febs
ruary IL, 1852, has been deemed by our
wisest men, of all parties, since its in
auguratien, as prudent. practical and
wise system. By it the State united its
citizens and encouraged them to use their
surplus means to develop the State. She
combined her means with those Of the
| citizens and issued her bonds to railroad
| companies to secure the construction of
| the roads. She indemuifed herself by