Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-05-22
TENNESSEE LEGISLATURE.
SENATE.
SENATE. '''4
SATURDAY, May q Senate met at 10
O'Clock and was cali ditto order by Speaker
TENNESSEE AND PACIFIC RAIIRolAD.


/ SATURDAY, May Senate met at Il
O'Clock and was cali to order by Speaker
Thomas. -n.os-
TENNESSEE AND PACIFIC RAILROAD.
MIR. Clementson, Chairman of joint
Select Committee on Railroad IaYestiga.
ton, submitted the report of the Com
mittee ON the Tennessee and Pacific Rail-
road, which report was received and
ordered to be transmitted to the House.
The Committee find by records in the
office of the Secretary of State that there
have been issued to said road eleven hun
dred and eighty-five thousand dollars in
the bonds of the State, beng ], 1S5 bonds
of s., 600 each, 800 of which bonds were
issued in accordance with the act of May
| "a, 1866. The others were issued under
an act passed Dec. z, 1867. v. .----
| The report shows Ghatthe ], 1885, bonds
mentioned were received by Gen. George
Nancy as President Of said road, and that
| $50 of them have been hypothetical as
security for loans negotiated for consiruc-
ton and equipment, and that the remain
ing bonds are in possession of the COM
pany. That 291 miles of road prepared
for iron, and track is now being laid; that
no work had been done when the first
State bonds were issued, but that So, 200
of individual stock had been subscribed
and $500, 900 in county subscriptions; that
the 953 bonds were hypothetical for loans
falling due-$293, 546, July l, 1870, and
$50, 900, Goth May, 1870, and to be paid
before the 953 bonds can be released; that |
$1,000 of individual stock has been paid |
in, and that $500, 900 in bonds of David |
son, Wilson and Smith counties, each,
have been subscribed, In conclusion the /
report says: "The committee would re- |
spectfully call the attention of the Legis- |
lature to the very limited security the
State has for the large amount of bonds
issued TO said road-Sl, 1856, 900.
The committee would suggest that it is
highly important that some legislation
should be at once enacted that would pro-
tect the large interest of the State in said |
road and secure the State from very great
loss"
EAST TENNESSEE AND WESTERN NORTH |
CAROLINA RAILROAD.
Mr.. Clementson also submitted the re-
port of the committee in regard to the
East Tennessee and Western North Caro-
lima railroad, showing that 800, 900 in
the bonds of the State had been issued to
said road, $l2, 200 arising from the inter
est thereon, has been paid to the State;
hat the company owes interest on the |
100000 in bonds from Jan. l, 1869,
% the present time; that fifteen miles of
said road is graded, five miles ironed, and
NO bridges completed; that the road is
|03 miles long, and construction so far
las cost $40, 900 per mile In conclusion,
he report says: ''The committee would ,
submit that it is clearly evil
lent that the Executive of the State, in ,
ssuing the bonds to said road, has con-
trued the various acts appertaining to !
he same as not being effected by the i
-arious conditions, limitations and re- {
trictions imposed by the internal !
laws of the State, and the |
obstruction placed upon said acts by the
Governor, if correct, can only the more T.,
orcibly illustrate how unwise has been :
he policy that departed from the rule laid :
own by the Legislature that first enacted 7
law authorizing the issuance of bonds :
D railroads. The committee would re-
lCCIluIjy Su5SCct tLdt IL - ulSIly lLlpOIl- l -
Mt that some action be taken by the Leg I
Stature to stop, if possible, the accumuls- .
on of interest on so large number of !,
onds for which the State has so little :
ecurity, every year increasing the debt of .
nd road $24, 600 by interest"
On motion, the above report was re- -
aiyed and transmitted TO the House. =
KNOXVILLE AND CHARLESTON RAILROAD.
The report of the Committee relative
} the condition of the Knoxville and a
llarlcston Railroad was also received and II
rdered to be transmitted to the House. a
he report shows that 10 State bonds 81
|, 900 each-have been issued to said ! "
,ad, most of which have, in disregard | d
law, been sold for less than
leir par value; that all | W
S property is worth about 1914, $50 o.
l35, 745 less than the principal debt of h
the State The Committee recon-
end such legislation as may be best /
5emcd TO secure the State against the II
anger of further loss. II
At II o'clock the Senate too a recess to | ~
eet the House in Convention and sub
quently adjourned until 10 o'clock Mon -
Nv morning. .