Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1871-03-19
TIE PEOPLE AND THE DELINQUENT RAIL
ROADS

ROADS.
In the great Chancery cause of the State
against the delinquent railroads, an agreed
case was made between the counsel for the
State and the Knoxville and Kentucky,
Knoxville and Charleston and Rogersville
and Jefferson railroads, by which the first
named road, upon the payment of $780,, 900
in the bonds of the State, was to be re-
leased from all further liabilities OH ac-
count of aid given by the State, un-
der the internal improvement acts of
the Legislature. The other roads, upon
the payment of certain sums named, were
likewise to be relieved from claims held
by the State, created in the manner as
above set forth. The agreement made by
the State, under the circumstances, was
probably as judicious as seemed possible.
But the people, who are interested in these
transactions, do not perhaps realize the
significance of the negotiation so far as it
concerns them, and as il is one of great
magnitude, involving what just now con-
Germs them very much-the monies they
pay in the shape of taxes-a plain state
mept of facts will be interesting and in
structive.
The release of the road from its liabili-
ties to the State, under the terms of the
above agreement, releases the people only
to the extent of the sum paid in TO the
State treasury, namely $Se2, 900 in State
bonds. The amount released by the State
in round numbers is S2,o00, 900, a sum
which, with the interest thereon for the
next twenty years or more, is a total loss
TO the tax payers Of the State. Let us look
at these figures for a moment and see just
what the people pay for this one railroad
transaction. The bonds loaned TO the road
and with which the people are now oner-
ated, as we said before, amount to about
tuo millions. They were issued at differ
ent times since 1855, and payable thirty
years after date. There has been perhaps
two or three years interest paid on them
by the road, but for the general purpose
we refer to the subject, We can, to save
close computation. calculate the interest
for the full term of the bond. A one
thoutand bond, bearing six per cent. in
terest and running thirty years, at ma
turity, If redeemed, costs the State Just
two thousand and eight hundred dollars.
Two thousand bonds, the number the
State loses IN the Knoxville and Kentucky
railroad, at maturity, will therefore cost
US just FSue millions, elr hundred thou
sand dollars. This Is the sum the
people lose by the transaction be-
tween the Knoxville and Kentucky
Railroad and the State of Tennessee. If
the latter should be able to redeem her
bonds before maturity, why of course we
would have less to lose, but az she prob
ably viii not, the above Is about the sum
we sink in that investment. The amount
in the Knoxville and Charleston Road, and
Rogersville and Jefferson Is much less, and
in the aggregate equals about one and
half million.
The above but gives the loss capable of
being computed and realized. If we look
at what we, as city and county, or what
Anderson, Campbell and Blount counties
or East Tennessee counties as whole have
actually lost through the failure to COM
plete these roads, who can calculate the
damage inflicted? Suppose the Knoxville
and Kentucky road with the bonds appro-
priated had been finished to the State line
two years ago, as it ought to have been,
and there been met by road from Louis
vile or Cincinnati, how many more thous-
and population would Knoxville have to-
day. How much would have been the in
f,o In a1Y1n Of foo% 80
In, or contiguous to the city? How much,
reader, would you have been benefited
How much would your neighbors and
your friends? Add these together and
see how magnified our loss becomes. Just
look at our losses in these respects alone,
and you will see the interest the people
have in understanding these questions.
If under the sale or compromise now to
be closed these roads are put into the hands
Of men who will complete them, we be-
lieve the State has done as well In selling
them as could have been expected, but if
they are not to be finished, and we are not
TO be benefited any by the change, the
roads have made profitable trade, |
but the people been outrageously worsted. !
A DISPATCH to the New York Tribune, |
from Concord, states that If the election |
for Governor goes to the New Hampshire |
las then, 18th inst, seemed probable, } Leg
islature, Republican viii be chosen. The |
contest in the First Congressional District |
is so close that the official count will have !
to decide it.
THE Washington Chronicle, taking the |
New York Worlds figures of the New |