The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1872-02-08

Speech of Hon. S. A. ID. STEELE, IN
the State Senate, January 18th, 1872,
on the Bin to Repeal act Donating ST.
600 per mile to Railroad Companies.

the State Senate, January 25h, 1872,
on the Bin to Repeal act Donating ST.
600 per mile to Railroad Companies.
As a member of the Judiciary Committee,
who concurred in the report on this bill,
wiz: TO repeal the Railroad subsidy.) | de-
sire TO give some of the reasons that infiu-
enced myself. and other mem bers, in re-
commencing its passage. And / here re-
mark. that l am in favor of building Rail-
roads. and all other public enterprises, that
will tend to develop the resources of the
State.
This Subsidy question, is the most inn
portant qaestion, that has been presented
for our consideration, during the present
session. The objects it intends to accom-
plish-the interests that it intends to foster,
give iL an importance that would not other
wise attach TO it. l have said that the
building of Railroads, is the great interest.
in the way of internal improvements. that
claims the attention of our people In fact,
it is the only work of tile sort that is gener-
al in its affects on our whole people,
Hence, any project that has for its object
the building up of a general interest. i'm
presses us favOrably.
| propose that Senators come up to the
question, and look it square in the face
By the provisions of the subsidy bill, four
thousand dollars per mile, is granted and
appropriated, out of any money in the
any railroad that falls within its provisions,
that shall construct twenty-five miles of its
projected line, by the lst Of September 1872,
and shall construct any portion of its
naming line, by the lst OF September, 1875.
BY the 9th Section, it is provided, that
sufficient amount of the qccruing revenue OF
the State. is appropriated, and set apart TO
meet the warrants, as they shall he issued
by the Auditor, under the provisions of the
bill.
s. ,s,%sx
subsidy to the roads, that may avail them
selves of its provisions. If carried out in
good faith, it will result in q network of
railroads, that will greatly improve the
State, and put it on a better footing in this
regard, than other States, now far in adj
vance of us. Let us examine for few mo-
ments this most splendid scheme of State aid.
In the first place, the four thousand dollars
per mile, Is gift TO the roads. 1t is not
Stock, representing an interest in the roads
it is not a debt to be paid back to the
state. IL Is simply gift-a subsidy l
know of no other State having offered sucm
advantages to railroads. The aid rendered
by other States has been by subscription of
stock, Endorsement of bonds, or loans of
money. These claims are charges on the
assets of the roads, and represent the debt
due the State-they charge and cucumber
the assets OF the road, and 20 this extent af-
feet its credit. Not SO under the provisions
of this bill. The four thousand dollars per
mile, is simply gift to- the company. it
is added To its capital stock ana against il
there Is no charge; and hence it adds just
this amount to the credit of the corporation,
and security for its Liabilities.
What effect will this have on the creditofthe
corporations, in the money market, where
their bonds may be offered: 1t will doubt
less, have the effect to appreciate them. lust
to the amount that is thus added To their
capital stock, and will enable them to COM
mand more ready market, and at better
rates. This would put projected road in
this State, on better footing than like
roads in any other Southern State. This
being the effect of this subsidy, it is likely
TO meet our approval, and command our
support. SO tar it can be given, consistent
with our duties as Legislators.
The solution of the problem, involves the
consideration OF two ropositions-eXpedi-
ency and constitutiOnalily.
As TO the first it is eXpedient, so far rs the
financial condition of the State will allow.
to afford all the aid to railroads, that can be
given, within the prohibitions of the con-
stituti0n. | have already shown that this
is the great interest to be built up and fost-
cred by our people, and doubtless every
Senator responds to this sentiment. In con
sidering the question of eXpediency. the
ability of the State financially, to meet the
liabilities to be incurred, under the proViS-
ions of the subsidy bill. is question of the
first Importance. 1t is shown by the Gov
ernOrs Message, that the State debt has in
creased, in the last year. nearly five hun
dred thousand dollars. How has this in
crease been produced? Simply to meet the
current expenses OF the State government,
and the interest on the funded debt. To re-
lieVe the State from this indebtedness, he
proposes to fund the outstanding warrants.
To meet the debt already funded, the
cruing interest, and the current expenses of
the State, not including the floating war
rants, the Auditor demands the levy of
nlne-tenthS of one per cent. al UQtOrefa, on
the taxable property of the State, which l.
more than double the tax levied last year,
At the same time, the Auditors report
shows that the taxable property, from the
assessment of 1870. has decreased from one
hundred and seventy eight millions to
about one hundred and forty millions OF
dollars, being "A decrease of between thirty
and forty millions in one year. Here then
we have the startling proposition, to in
crease tax already more enormous than
ought ever to have been levied on any peo-
pie, one hundred and twenty-five per cent.
and on a taxable property, alarmingly di-
minished. by the eXOrbitant taxation of the
last TWO years The tax being thus increas-
ed at this alarming ratio whilst the taxable
property is diminished ut an equally
alarming ratio. what will be the result OF
this system?
The State tax last year was. nearly mill
lion and IA half dollars. The proposed in
crease will about double that. Add to this
the county TAX, say ABOUT thIec HahuIeu
per cent. on the State, and you have nearly
nine million dollars Add to this. the tax
voted, and to be voted. by the counties and
cities in favor of railroads, and you have
tax on one hundred and forty millions of
taxable property, that is alarming
and such a tax as no other people
on the face of the earth, ever bore. But
when you add to this the amount accrIing
under this subsidy bill you see the very
substance of the STATE being swept away.
Is this not appalling to the legislator, that
desires to see the State built up! In fact.
sir, the bankruptcy of the State, and the
people are staring US in the face
On the question of eXpediency. | hold
that the State is in no condition TO offer this
and. 1t is suicidal policy that builds up
these corporations at the financial ruin of
the State. know that it is true that rail-
roads increase the revenue of the State by
bringing in population and approaching
the value of property. But this being adj
mitted. we are still not justified in grinding
to bankruptcy the State and the people of
this generation, that those who come after
us may have a splendid system of internal
improvements, and have their wealth In
creased. A people who do not learn wisdom
from passing events use their powers to but
little purpose. The system of State aid to
railroads has been adopted by other South
ern States, not by subsidies. but by indors-
ing bonds and other aid and they are now
involved so that generations TO come Will
not see the State debts paid. Their people
are grooming under burdensome taxation.
Is il possible that Senator'S are so far forget
full of their constituents as thus to destroy
their interests? As thus to burden them
for generations to come? Is it possible that
the representatives of the people will close
their eyes 70 passing events-that they VIII
learn nothing from the folly of other States,
but will incur a debt that will hang like an
incubus on posterity. l hope Senators will
pause ere they take a step so fraught with
evil to the State and to the people.
The viii of the people is another impor-
tant consideration in determining the queS-
ton of expediency. We are here 20
represent the people-to express their will.
If there is one act of the legislation of the
last session on which the people have ex-
,,w.asso.J their will more clearly than another