Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-07-09

| rOau. Inc StatS had SAID, Il want my
claims settled and will give the road over
to the company for certain amount. y
And the State had been exceedingly liberal.
She had reached point where she desired
her connection with railroads to cease.
The States debt in the Edgefeld and Ken.
lucky road was between 81, 700, 900 and
100000 in State bordi But
the attorneys for the State said,
sif you will pay US $500, 00C
IN State bonds we viii quit you" The
question with this county now was,
whether it would continue its connection
with the road or lose not only $500, 600,
but also $l93,000 in interest? Besides,
there were 100000 in bonds outstand
ing, on which the interest would have to
be paid Even if the State sold the road,
that did not relieve the county from pay
ing the interest on these bonds, The
county would then have paid nearly $780,
900, and would have the interest on the
bonds to pay, and would have lost all this
if it did not buy the road Judge East
said if he had any doubt about the legality
of the proposition before the court, he
would say take the question to the peo=
pie.
No railroad, the Judge continued, could
be built for less than $500 a mile, and
that was a low average. The gentlemen
| to whom the reference was made in the
case of the Edgefeld Railroad said it was
worth 100000 in State bonds, and it
could pay its interest. The speaker said
he intended TO be perfectly frank in this
matter; Re was discussing his interests as
| a citizen and the interests of the citiz ems
of county. The State had advanced $780,
600 to the Evansville, Henderson and
Nashville Railroad, and the State said to
the E gefeld Road, '''pay over $500, 900
! in State bonds and take this $500, 900
owed by the Henderson Road" During
| the last session a gentleman from the
Henderson Road came to the Legislature
and raid, I'VE will pay you $3.50, 900 for
this $500, 600 debt" The Committee
reported that they had a good mort
| gage and the Legislature authorized pro-
! cesdings to be instituted in the courts OF
! Kentucky to have this mortgage foreclosed
| and would no. take the $50, 000 But
| suppose the county of Davidson gets only
! S150,O0 Then, instead of owing the
| State $500, 900, 1t will owe only $3.50, 900.
| Davidson county owned $500, 600 of stock
in the EdgeGeld road. Citizens of David
! son and Robertson owned Sl53, 900 more.
| Those were the men that would purchase
with Davidson county. One-quarter of the
| $500, coo in State bonds would have TO be
| paid down, and Davidson county would
have to pay her proportion of tlat as 200
| is to 1853, with ate bonds worth about 70
CENTS on the dollar.
sThere was no new company in that, and
no Investment in any new scheme. There
was the same company and the same men,
and the proposition before the court did
not provide for going into any new enter
I prise. Even il all the stockholders sold
I out their stock, that did not make a new
company.
! Tie Chancellor then referred to Gov
| ernor Neill S. Browns opinion, and said
/ that the fair question had not been
! submitted to him, because it was not now
proposed to SO into any new enterprise.
( lis agreed with Governor Brown in his
I opinion, bat that was not the question
now bsfore the court The county had a
( right to save her own interest in the Edge
fsId rosd, and he (the Chancellor did not
know of any law that would c2ntravene it.
! Judge East then read from an old provi-
! sion Of the Code, providing that any coun-
l " might subscribe for stock not exceeding
! In the aggregate cne-ffteenth of its taxa
! bic property. He held also that the COZ =
sJi.usional Convention did not undertake
to ergosft upon the constitution any pro-
visions that would be retrospective, and
besides they had no right to do it. Neither
the Constitutional Convention or the Leg
islGtue had endeavored to say anything IN
regard to the countys management Of her
debts already incurred. Could not the
coanly take $500, GOO for her stock in the
Edgefeli Road if she should receive such
al Cffer? The Legislature could not say
lyon snail lot take what you please to set
lie your debt"
The Chancellor then referred to some
constitutional objections that had been
made. He referred to Section 80, Article
2, of the Constitution, and then to an act
passed at the session of 1S70-71, and held
that neither the convention or the Legis-
lature intended to act retrospectively in
regard to a debt. The Judge then said
that the county after paying its proportion
of one fourth of the Indebtedness to the
State, could mortgage the Edgefeld road
issue bonds maturing IN twenty or thirty
years, and thus do what the Decatur road
and other roads in the State had done. II
the county could not get eighty-one cents
for these bonds when the State was only
getting seveniy-two, he should be very
much deceived and in that way the balance
the th.ee-fouriks Of the debt, could be
paid.
The Chancellor then said that if the debt
could be collected from the Henderson
road, the comfy would not have to use its
stock in the Louisville road, or anywhere
else. Monied men would take the mort
gage bonds whether they bore rate of in
terest at six or eight or ten per cent. if tho
road was worth anything. He further said
that railroads controlled the destinies of
peoples aud of towns, and it was important
( that the Edgefeld road should be secured
: The county owned stock in the Chattanoo-
ga road and had partial interest in tn 9
Decatur road, but there was only one out =
| let TO tho North, and that was the Louis
: vile road, and the Louisville road could
/ afford to buy the Edgefeld road, and take
! mp every rail and never run train on it.
{ If the people Of Nashville de&ted to ship
| nything 10 Chicago they must ship 1t
/ over the Louisville road
J Chancellor East then said that he would
! come to the main p int in this discussion,
and that YVES, that there YVES another pro-
/ vision Of the constitution, namely: 'Nor
shall any county, city or town become a
sockholder with others in any company,
/ association or corporation, except upon a
/ like election and the assent of a like ma
iority.' That was the question put to
: Gov. Brown. But are you going into any
new enterprise2 1t don't say that you have
I 10 right to control your money in an as
/ ISOLATION. The convention would never
/ Eave provided that the County Court
should take no action to control its stock
already secured. Such proposition would
! have been voted down at once.
In conclusion, Chancellor East said he
knew of DO constitutional provision that
! would prevent the county from saving its
I Interest in the road. The county could
stay in The old company, both as a creditor
! and debtor He thought it practical
! plan to appoint some one to ascertain If
! the $50. 600 could not be obtained from
1 the Henderson road. he also thought that
after making the first payment on the
( road, the road could be mortgaged and
bonds issued and exchanged for State
bonds, dollar for dollar, until all the re-
manning Indebtedness to the State was
taken up. The Decatur and other roads
had issued bonds, and only day or two
since the Chattanooga railroad came up to
toe Comptroller's Office with $4,000 in
State bonds, and bought out aud secured
the Winchester railroad
Gov. Blown next addressed the conrt,