Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-06-01
THE RAILROAD INNEST1-
CATION.

Repart Of the Cassassa3ttee en- the East
Tennessee and Western North
CaiOIina Railroad.
The Committee find from the examina-
ton IF the records in the Office of the
Secretary of State, that there was issued
to said road, four hundred thousand dol
lars iEthe bonds of the State of Tennessee,
beingfour hundred bonds of one thousand
dollas each. .
Thyy find that said bonds were issued
in thee separate installments. The first
instalment was one hundred and fifty
bonds issued ON the 2Sth day of April,
1868. under the authority of an act pass
ed Dc. 10, 1866, entitled ''An act to
amend an act, passed Jan. Is, 1866, en-
titled an act to establish a system of inter-
nal improvements, passed Feb. II, 1882. "
The aid act of Dec. 10, 1866, provides
that the bonds issued under it, are
to be issued "upon the same penal8
ties and conditions, as the act
of Jan. Is, 1866, which act is amend
atory of the act passed Feb. IL, 1852.
The second section of the act passed Jan.
| IS, 1866, provides that the said bonds
shah in no event be sold or exchanged at
less than their par value" The act passed
Feb. II, 1859, provides "that when the
company shall have procured bona .fde
subscriptions for the capital stock, In said
| company, to the amount sufficient to
! grade, bridge and prepare for the iron
rails. the whole extent of the main trunk
line proposed to be constructed by said
company, and it shall be shown by said
| company to the Governor of the State
that said subscriptions are good ana
s0Ir,eyy; and whenever said company
shall have graded, bridged, and shall have
ready to put down the necessary tie beams
for the reception of the rails, and fully
prepared section of thirty miles of said
road, at either terminus, in good and
substantial manner, with good materials
for putting in the iron rails and equipments,
then the Governor, after being notified
that the foregoing requirements of the law
have been complied with, and that there
no prior lien existing, by the affidavit
of the President and Chief Engineer OF
the road, shall issue bonds.
The law of 1852 also requires "that the
bonds shall not be used by said company
for any other purpose than for procuring
the iron rails, chairs, spikes and equip,
ments, for the particular section graded
and ready for the rails, and for putting
down said iron rails"
The same act also prOVives that 1.-THE
Governor shall not issue the sameS unless
upon the affidavit of said President and 8
resolution of a majority of the Hoard of
Directors for the time being, that sale
bonds shall not be used for any other pur'
pose than for procuring the said iron rails,
chairs, spikes and equipments for saic
sectien, and for putting down said iroI
rails"
The several foregoingrecited provisions
is the law, which, in the opinion of the
committee, applied to the issuance ant
use of this, the first instalment of ont
hundred and fifty bonds.
The second installmC1t vas one nun
dred bonds, issued on the S0th day o
July, 1868, under the authority of an &C
passed Dec. 7, 1867. The 10th section
of said act provides ''that these loan
shall be made in like manner and undo
the same conditions imposed by the inter
nal Improvement laws of the State" TIL
said act also, in the section appropriatin!
these one hundred bonds, provides ''tha
they shall be issued for bridge buildln
exclusively"
The 9Th section of the act passed Feb
26, 1852, entitled ''An act to charter til
Chattanooga, Blue Springs and Clevelant
Railroad, " and which provision is incOrpC
rated in the Cd section of the act passe
Feb. s, 1854, entitled can act to amenr
an act passed Feb. II, 1852, entitled a
act to establish a system of internal i'm
provements;" that said company shall pre-
cure bona tide, good and SoLUert sui
scriptions, in amount sufficient to grade
prepare the timbers and prepare the whol
line of road proposed to be CONSTRUCTED
ready for the reception of the iron; an
these facts shall be certified by the Coz
ernor. by the written affidavit of Ii
President and Chief Engineer, and also b
maiority.of the Directors, before Il
Governor shall issue the bonds provide
for in this act.
! In the opinion of the committee, Il