Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-01-14

oeOonu, complete security 70 the State iOl
that aid.
And this very security, by reservation
ola prior and superior lien upon every
railroad which received bonds in aid of it,
is held forth by our Internal Improvement
Law as the basis of credit for the bonds.
The State pledged herself in the issuing
of the bonds, by the law, to maintain
this lien and enforce it by holding possess
sion of the roads, if they failed to pay the
interest, and to sell them to pay the
bonds. The good faith Of the State is
pledged to this. The bondholders so IN
derstOod when they purchased the bonds.
The people Of the State so understood
1t, for they never believed that they wer:-
to be taxed to pay the interest or prince
pal oil the bonds, until the means arising
from the sale Of the roads had been ex-
hausted.
The State in point Of honor and fact
holds this lien in a fiduciary capacitys
She hold it in trust for the benefit of the
bondhOlders. She honorably has no right
to abandon it or surrende.Git to the com
panies. She ought not to rove faithless
in this trust, but maintain and execute it
as the bondholders understood it, and as
the people of the State understood il.
The bondholder is interested in this re-
source to pay the bonds he holds, and the
people are interested in it, to see that
they are not to be taxed to pay interest
or principal of bonds for which railroads
are pledged by the terms of the law.
Does not, | respectfully submit, the
"sct to abolish the Office Of Receivers of
railroads and for other purposes" now
pending before the Legislature, ignore
the honor of the State, disregard the
plghted faith Of the State to carry out
the principles of the law of 1852, and
maintain and enforce the lien on the
railroads, in providing that the office of
Receiver shall be abolished and the roads
turned over to the companies 4? re-
spectfully invite the attention of the
Legislature to section two, and to section
three of this bill. Section two REQUIRES
the Receiver within five days after the
passage Of the act to turn over the rail-
road, rolling stock, effects, etc, to the
company. Section three requires the
Treasurer of the company forty days
etter coming into possession Of the road,
effects, ETC., to enter into bond, etc, con-
ditioned that the net earnings of THE road
shall be paid monthly into the Treasury
of the State.
Now l submit to the Legislature,
whether this IS not surrender of great
interests Of the State, and an abandon
ment Of q sacred trust without guards or
guarantees. The bonds of the State, any
money arising from bonds or other
sources, as well as all other effects in the
hands Of any other Receiver, are turned
over without any other security, or even
an agreement to account for them, and
the railroad company is to remain in pos
session of them forty days before any
bond is given, and then only bond
to pay the net monthly earn.
ings into the Treasury of the
State. What is to become of the
effects of the road in the hands of the
Receiver, the bonds of the State he may
hold, or other funds or money in his
hands? Is it given to the company, not
to be accounted for? Why is forty days
allowed to give the bond? Is time to be
given to make way with or dispose ofthe
effects, State bonds, money, or other Sc
curities Why is forty days fixed as
the time for responsibility to begin? |
submit to the Legislature, whether the
provisions of this bill are not calculated
to arouse the gravest suspicious.
Besides, the bill ignores the funda-
mental principles of the Internal I'm
proyement law, security to the State and
protection of its interests, and thus aban>
dOns the faithful execution Of the trust
by which the railroads and all their prop
erty shall be subjected to payment of in
terest and principle of the bonds.
If the law of 1852 is defective, supply
its defects, enact laws for its enforcement,
but preserve the important fundamental
principle Of the law, that is, hold the
roads for the payment Of the interest and
principal.
believe that Receivers should be re
quired to perform the duty imposed by
law, and with proper enactments can be
made to do it.
J am not welded to the system of Re-
ceiverS, but l do regard it as all i'm.
portant to the honor and interest Of the
State to preserve, and adhere to, the
great principles of the law Of 1852, and
to faithfully execute the trust arising un-
der that law, and implied by the action
of the State
j am pursuaded, after consultation
with some of the best lawyers of the
State, that the reservation of authority
under the 18th section of the law of 1852
gives ample power to the State to sell
these railroads, and as indicated to you
in my last message, | believe the interest
Of the State will be promoted by sale Of
them.
The views have now expressed have
derived after consultation with eminent
lawyers, and wise, patriotic citizens |
feel no personal interest in this matter.
In regard to the great railroad interest
of the State, and in regard to all other
great interests touching tile welfare Of
the people and honor of the State, | have
acted from a sense Of duty. AN desir-
Gus that the true interests Of tho State
shall be subseryed, and its good faith
and honor remain untarnished.
In conclusion, | would join you in
thanks to God for his blessings upon our
State and her people through the year
just closed, and in prayers to Him for
divine guidance of all her servants, in
all duties to which they may be called,
and for his richest blessings upon you
and all the people of the State
Signed VIM G. BROwNLow
Nashville, Jan. 4, 1869