Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-11-24

SdH suIrenueT tDelr charters and accept Lne
benefits Of the new order Of things provi-
'ded for in the new constitution, and they
will be within reach Of the general laws Of
the Legislature.
But there is still another point which /
desire to present, and ii is this: the State Of
Tennessee has an established policy which
Is to divorce itself from railroads. 1t would
have been better for the people If the con-
nectiOn between the railroads. and the State
had never existed. The railroads would
have been built as well without as with it,
for demand keenly felt is sure to be sup
piled. We have lived TO see the error Of
eur way-and now it becomes the duty of
this Legislature and of every goodcitize to
assist the State in its efforts to retrieve its
falling fortunes, and to recover its lost posi-
ton. This policy of the State clearly an
nounced is the first and most important step
in the right direction. 1t is sound in reason
and just to the people of the State. None
are so bold as to controvert this. Then
why should this policy not be sustained?
The Memphis and Charleston railroad
which is at the door Of this House anxious
ly waiting to receive the benefits of the bill
under consideration, is indebted to the State
Of Tennessee on account Of bonds issued in
eAG VI 10 NOAolAutlAOA lCcA wv AAAtfOAo
Of dollars. Under the law allowing rail-
roads to retire their Indebtedness, the Mem
phis and Charleston Road can 60 into the
market and buy the bonds of the State at
sixty cents, and with this deprecated pa
per it can pay its debt of two millions, which
stands in the account this day charged against
burdened people dollar for dollar. Is this
not a concession to the Memphis and Charles
ton Railroad? Is this not a privilege
golden pportunity-which it should avail
itself of, particularly as the State and the
people, who in their day of prosperity con-
tributed so freely, as it were, of their very
sweat and blood, in enriching this corpora
ton, now that the hour Of adversely has
come implores it to do so?
A corporation is soulless thing, and its
greed is inOrdinate, and hence we see the
Memphis and Charleston Railroad spurning
the wishes Of the people, standing forth in
open defiance, and at war with the known
policy of the State, and yet it is here asking
from a Government whose laws it treats
with contempt, and from bleeding cred
itor whose cries it refuses to hear, that
new franchises and new powers for evil
be conferred upon it. Now, what IS
the amendment which l have proposed
to this bill. 1t is simply this, l say to the
Memphis and Charleston Railroad and to
all other roads occupying similar relation to
the State-pay me what thou owest first,
and then by all appropriate legislation we
will contribute to your wealth and prosper
ity. Is there any thing wrong in this? But
/ am told in reply that the Memphis and
Charleston Railroad debt is not due. 1t is
doubtless true that the series of bonds issued
to that road are not due, yet it is an intereSs
bearing debt, the bonds are outstanding
against the State, and the interest is annu
ally accruing. The principle involved re-
mains unchanged, the policy of the State
and the duty of the road to retire its indebt-
edness remain the same. ask again, is
there any thing wrong in the proposed
amendment, and why should it not be
adopted? am told that if adopted it viii
kill the bill; then indeed that would be a
most happy cOnsummatiOn of this matter,
and one, for the good ofthe people, heartily
to be desired
But let me recur again to the policy Of
the State as l have declared it.
1t is a sound policy, it should be
understood and sustained. Every dol
lar you add to the indebtedness Of a
State, l care not in what manner, is an as
sault upon its credit, and every dollar you
take from its Indebtedness but adds to the
value of its securities. If the State Of Ten
nessee is indebted in the sum of thirty mill
lions of dollars, it is just that much put in
the scale against her credit; and such, in
fact, is about the amount of our indebted
ness, ten millions of which is due from the
railroads. We have heard it said upon this
floor, and upon the streets, and we have
read it in the newspapers Of the day-it is
sounding in the air, it is all around us-that
the honor of the State must be preserved.
Well, there is an everyday principle of hon
esty in that; but hOtc shall it be preserved,
"that's the question" and "there's the rub"
1t is said the only way and the safest and
the surest lies in securing the passage of a
high tax bill. Yes; grind the people a little
more. But beware, my friends, that you
do not with this upon another milestone,
crush the energies and liberties of your peO-
pie. We must preserve the honor Of the
State, and we will not be driven
from the performance Of this duty,
although this same sOnud
does come as a knocking cry from Wall
street, where our bonds, locked in iron
safes, are the fruitful sources of speculation
and fortune. Let us do our duty, never
theless. Our cOnsciences and an honest
constituency will approve the performance
of duty; but let us make no mistake. The
honor of the State must be preserved, but
not by crushing the people. That is not my
plan. Let us say to these defiant railroads,
pGy me UbGt thou Quest, and then the honor
and the credit of the State will be secured.
Would not our bonds then be worth some
thing more in the market? You cannot
answer this argument by saying large pOr-
ton of the States debt is secured by liens
and mortgages upon railroads. The man
who lends us money makes no inquiry
about mortgages. He will say: al know
nothing Of your mortgages. Your debt is
so much, and your taxable assets so much,
and that fixes your standing in the market
The railroad debt is weighing upon the
honor and credit of the State this day as an
incubus. Then why should it not be re-
moved? But these roads are not go
ing to pay so long as they can |
ground and there are inducements to them |
not to pay. The debt due from these roads |
is an interest bearing debt, and under the |
liberal legislation Of the State they are |
allowed to pay this interest in coupons or |
bonds of the State Well, the result ofthis |
is that they are forced upon the market |
the lowest price possible, a sufficient amount |
of the State securities with which to pay !
their interest. Their object will be, of |
course, to buy at the greatest discount posi- |
bic, and hence they will resort to all means
within their power to depress the value of |
the States securities; and when the rail |
roads put forth their strength who can |
measure it? You cannot tell "the way of |
a ship in the sea, nor of an eagle in the air." |
neither can you tell the length, nor the |
breadth, the height, nor the depth Of the |
means for the accomplishment of its ends, |
that are within the reach of a railroad cor
poration. They have more ways than |
widows with which to circumvent the OBJ
jects Of their desire, and though the heavens
fall they will achieve their purpose.
But the necessity for buying each year an
amount of State bonds, sufficient for the
payment of their interest is the occasion for
still more extensive transactions, and hence,
they are uniformly, and viii be until their
debts are repaid, spectators and traders on
State securities, and here the field is at once
opened up for the display of their vast power,
and in formidable array they assault the very
itself, and behold all things bend
before their mighty sway. Now, ask you
win they voluntarily retire from this fruit
full field? Certainly not. Their CORPORA