Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-05-25
DELINQUENT RAILROADS.
Important Repsrt from the investigating
Committee.
-whOIesaIs Issuance OF State Bonds, and
what was Done with Them.

From the Nashville Banner of Sunday
In the Senate, yesterdTy, Mr.. Dlement-
son, chairman of the joint select Commit
lee on Railroad Investigation, submitted
the report of the Committee on the Ten
nessee and Pacific Railroad, which report
was received and ordered to be transmit
ted TO the House. The committee find,
by records in the office OF the Secretary
of State, that there have beep issded TO
said road eleven hundred and eighty-6Ve
thousand dollars in the bonds OF the
State, being 11S5 bonds of $1,000 each, 300
! of which bonds were issued in accordance
| with the act of May "A, 1866. The others
were issued under az act passed Decem-
! ber Z, 1867.
The report shows that the 1855 bonds
mentioned were received by Gen. George
Nancy as President OF said road, and that
| 953 of them haye been hypothecated as
security for LOANS negotiated for copstrHc-
ton and equipment, and that the remain
| ing bonds are in possession of the COM
pany. That 2eH miles of road is pre-
| pared for iron, and track is now being
| laid; that no work had been done when
the iirst State bonds were issued, but that
| SOL 900 of individual stock had been sub
scribed, and S6Q0,Q00 in cOHqty subserip-
tions; that the 95S bonds were hYpOtbe-
Gated for loans falling due--$293, ,546 July
I /, 1870, apd $50, 900 10Th May, 1870, and to
| be paid befqre the -a5s bonds can be re-
| leased that $4,000 of individual stock
has beef So. n, and that 5000, 900 in bonds
| of Davidson, Wilson and Smith counties,
each. have been subscribed, Ip cOnclu
sion the report SAYS! "The committee
would respectfully call the attention Of
the Legislature to the very limited Sc
curity the State has for the large amount
Of bonds issued to said rOad-sl ,ls5,O0o.
The committee would suggest that it is
highly importantc 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
impending loss"
EAST TENNESSEE AND WESTERN NORTH
CAROLINA RAILROAD.
Mr.. Clementson also submitted tie re-
port of the COMMITTEES. in regard to the
East Tennessee and Western North Caro-
lima Railroad, showing that 500, 900 in the
| bonds of the State had been issued to said
road; $4,000 arising from the interest
thereon, has been paid to the State; that
the company owes interest on the S400, 900
| in bonds from January 1, 1869, to the pres
/ ent time; that fifteen miles of said road
is graded, five miles ironed, and two
bridges completrd; that the road is thirty
and h2lf miles long, and constructor
L so has COSS pAVsOVS per III COh-
clusion the report says:
''Thecommfttee would respectfully sub
NIT that it is clearly evident that the Ex-
ecutive ofthis State, in Issuing the bonds
| to said road, has construed the various
acts appropriating to the same as not be-
/ ing affected by the various ecdnditions,
| limitations and restrictions zIposed by
| the internal improvement kws of the
State, and the construction placed upon
said acts by the Governor, if correct, can
only the more forcibly illustrate how un-
wise has been the policy that departed
from the rule laid down by the Legisla-
tnre that first enacted a law authorizing
the issuance of bonds to railroads. The
committee would respectfully suggest
that it is highly important that some ac-
tion be taken by the Legislature to stop,
on so large a number of bonds for which
the State has so little security, every year
increasing the debt of said road s24, ,O00 by
| interest"
KNOXVILLE AND CHARLEsT RAILROAD.
The report of the committee relative to
the condition OF the Knoxville and
Charleston railroad was also received and
ordered to be transmitted to the House,
The report shows that no State bonds
$1,000 each--have been issued 10 said road,
most OF which have, in disregard of law,
been sold for less than their par value
that all its property is worth about S574,-
25O-Sl35, ,745 less than the principal debt
of the State. The committee recommend
such legislation as may be best deemed to
secure the State against the danger OF
further loss,