Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-02-07
THE STATE DEBT.
Railroads In Tennessee.
Important Report from the
Committee on the Judiciary
OF the Senate.
The following report was submitted to



the Senate yesterday by Mr.. Lindsey:
Mr.. Speaker: The Judiciary Com
mittee, to whom were referred the va
rious measures before the Senate looking
to a sale Of the different railroads in Tens
nessee who have failed, or may hereafter
fail, to meet the interest on the bonds
issued and lent to them, or their own
bonds Endorsed by the State, have had
the same under consideration, devoting
as much time to their investigation as
other duties would permit and the great
interests involved required.
1t seems to be considered by all that
something should be done. But while
all agree that some remedy should be
applied to relieve the Treasury Of the
State from its present embarrassed cOndi>
ton, there is, as might have been eX~
pected, great diversity of opinion as TO
the proper measures to be adopted to
accomplish the object TO be attained.
First, as to the necessity. Whilst it
IS considered that some remedy should
be applied, it may not be known to every
member of this body and to our cOnslitu
ents and the country, that there is such
an imperious, absolute and overriding
necessity for the removal of the evil as
the committee believe to exist, and will
now proceed to show.
The State debt, including the liabilities
for railroads and turnpikes, was, accord
ing to the Comptroller's report Of the 3O.h
Of November last, thirty four millions,
four hundred and fifty-four thousand,
eight hundred and seventy three dollars
and fOrty>fouT cents. Add to this the
amount borrowed to meet the January
interest say four hundred and fifty thou
sand dollars, being in round numbers,
half the annual deficiency, and you have
as your actual existing debt at the be-
ginning Of the present year, thirty-iour
million, eight hundred and ninety~ons
thousand, esht hundred and seventy
three dollars and fOrty~four cents (S34,
S9l, S73 Az. Thatit may be seen, how
enormous this is, as compared with the
resources, the committee will submit 4
few remarks.
According to the assessments for the
year 1868, the aggregate Of taxable prop,
erty Of every kind was in round num-
bers, two hundred and eight millions Of
dollars, the debt thus being sixteen and
seventy ssyen hundredths per cent. on
the amount thus assessed.
By existing laws bonds arc authorized
TO be issued 10 different railroads to the
amount of at least four million three huns
dred and seventy five thousand dollars
S4375,000), making an aggregate of
thirty-nine million two hundred and
sixty-six thousand eight hundred and
seventy-throe dollars; say, III round
numbers, forty million dollars. This is
equal TO nineteen and twenty-threc hun,
dredth per cent. on the taxable property
of the State. As this is the amount Of
State debt, as it actually exists and au-
thorized by law, the committee might,
on this particular branch Of the question
involved, cease their inquiries, but, as the
condition of the finances Of the State is a
matter of such vast Importance, as well
to the taxpayer as to the public cred
itor, they hope it will not be considered
out of place for them to extend their IN
vestigations q little further, and see what
may be the situation of affairs, should
the various propositions now pending be-
fore the Legislature be passed into laws.
The various propositions without going
into detail, pending before the Legisla~
tuTe at the time Of preparing this report,
amount to the sum of six million dollars,
which, SHOULD they become laws, will
swell your debt 10 ioTty-tVe OF SIX mill
lions At forty. five millions the indebt
eduesS would amount TO tWenty-One and
sixty-three hundredths per cent on the
aggregate taxable property IN the State
At this rate of taxation, farm worth
one thousand dollars could only be sold
by the owner for seven hundred and
eighty-three dollars and seventy cents.
Ii is only worth this latter suH to the
owner although its actual value was one
thousand dollars. 10 other words, the
property of the people Of the State was
!. valued at two hundred and eight mil
II ion Of dollars at the last assessment, II
in fact is only worth to the owners one
hundred and sixty three million.
Suppose an immigrant OF capital should
come to Tennessee, to buy land, and
would call on some man, the owner OF
farm worth ten thousand dollars, he
would be willing to pay for it, owing TO
our enormous taxes only seven thousand
eight hundred and thirty seven dollar.
Can Se 20 home and face cur consttu-
cnts with this state Of things existing
Without doing something to relieve them.
Should We DO so, It Is doubted whether
many Uf Us would return again.
Again, as shown bv our committee IN
aIeport on another proposjtioa before th'
Senate, the annual deficiency IN the re-
GENTS Is NOW nine hundred thousand
dollars, with the present rate Of taxation
and existing Liabilities. This will con
tirue "a be the case unless taxes be IN
creased or something be done 60 TCduc
hs existing liabilities, and The deficiency
will be annually increased by the amour
OF interest paid on such deficiency III
the preceding year. How long can TIN
state OF things exist? The deficiency Ia
1-hesn met heretofore by semi annua
loans; except, perhaps, IN one instance b
an Application Of near thee Eandre
thousand dollars Of what is called III
School Fund. VIII capitalists cOHtinu
TO lend US money to pay interest who
no adCgIa means are prepared TO NEE
the demands Of the Treasury? This Is
grave question, aud the committee al
urehcnd that men Of means will cease t
lend, and the coupons on your bonds mus
20 to protest. Indeed, Ii cannot be e.
pcctcd that our credit can be kept mp an
demands On the Treasury met unless
change in our financial policy be alopte,
In a few years the annual interest thcr,
On viii amount itself to an enormot
debt Ia six years, including the Ia
annual deficiency, the debt on this SEQ,
alone, would be increased five million
and 81 hundred thou.au dollars
These calculations are based on d
actual Indebtedness OF the State but at
To this the bonds authorized 10y law n
not yet ISSUED, and the debt will be .
HANGED by the addition OF some five
SIX millions of principal and an al.
tional deficiency Of interest OF some thr
hundred and twenty five thousand Il,
lars. making the amount of a million =