Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-10-11
Railroad Commissioners,

We make the following extract from the
report of the Railroad Commissioners to
the Legislature yesterday:
In regard to the Nashville and North
western Railroad your Commissioners re-
port that they received a proposition from
the Nashville and Chattanooga Railroad
Company, and Z. W. Cole and his associ-
ates to buy said road for the sum of s., 400
900 in bonds of the State with coupons of
January, 1871, and subsequent ones at
tached, the State TO agree TO pay the debt of
the Nashville and Chattanooga Railroad
Company against said Nashville and North
western Railroad claimed to amount to
$4,000 in currency, but which debt the
Nashville and Chattanooga Railroad Com
pany, as part Of their offer, agree may be
paid by the State with 100000 of bonds
of the State.
This proposition in consequence Of the
sltperSededs of the Supreme Court, your
Commissioners have been able to accept
conditionally. Your Commissioners have
felt themselves authorized to and have ac-
cepted this proposition, deeming it for the
best interest of the State for them 10 do so.
The substance Of the bid of the Nashville
and Chattanooga Railroad Company, and Z.
W. Cole and his associates, is that they will
give s., 100000 in bonds of the State with
January, 1871, and subsequent coupons at
tached; one-fourth payable instanter, one
fourth in one year, one-fourth in two years,
and one-fourth in three years. But out of
the first and second payments are to be tax
en- bonds sufficient to pay the debt to the
Nashville and Chattanooga Railroad Com
pany as lessee ofSaid Northwestern Railroad,
h. So SIa
preferred debt. This debt as claimed
by the Nashville and Chattanooga Rail
road Company amounts TO $4,000
currency, for which in this trade
the said Nashville and Chattanooga
Railroad Company agree to take 500, 900
in bonds of the State, the value of which
this day at market price is only $42O,OO0, 50
that there is left under said purchase, clear
to the State, 81, T00, 900 in the bonds Of the
State. The first payment has been made
under this purchase, and satisfactory bond
given for the remainder. Your Commits
siOners regard this as an executed, complete
and final sale of this road so far as the State
is concerned, subject only to the condition
that the Supreme Court may reverse the de-
cree of the Chancellor. They have so ac-
cepted the bid.
1t may be that your Commissioners may
not be able at any future sale, soon to be
attempted, of the remaining unsold roads
to get bidders at such prices that your Com
missioners will Fill justified in selling.
Your Commissioners not feeling author
lied by existing laws to bid for these roads,
for and on behalf of the State, would most
respectfully suggest to your honorable bodies
the propriety of comforting upon your Com
missioners the power to bid the minimum
price for the unsold roads, at any future
sale that may be attempted of them, if in
their opinion the public interest shall make
such a course eXpedient, and with the further
power, in case they become the purchasers
of any of these roads for the State, after
wards to sell the same for the best price
they may be able to obtain; and your Com
misSoneTS ought, in their opinion, while so
holding any road for the State, to take pos
session of the same, and run it though agents
appointed by them, by lease or otherwise,
for the best interest of the State until sale
is effected. In this way a total sacrifice of
the interest of the State in these roads may
be prevented
Your Commissioners would also call the
attention of the Legislature to the fact that
no provision is made for the cancellation or
destruction of the bonds and coupons of the
State when received by them. 1t might be
advisable to appoint committee charged
with this duty, who, in connection with the
Governor and Comptroller, might burn the
coupons and cancel the bonds, keeping q
record of the bonds so cancelled, and pre-
serving the bonds in cancelled condition
in the Office of the Comptroller, If In the
! opinion Of the Legislature this course shall
he deemed advisable for the public good.