Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-06-22
KNOXVILLE BRANCH RAILROAD.
The Ordinance Proposing TO Aid the
Louisville and Nashville Road In the
Extension OF this Branch Defeated
II

AaOuASNAAAO anu - esoAAHAAAC AeOtseA - DeAO
Extension of this Branch Defeated
by the Louisville City Council.
At meeting of the Louisville CITY Coun-
Gil held on Thursday night last, the ordi-
nance proposing to aid the Louis
vile and Nashville Railroad Com
pany in the extension of the Knox
vile Branch to the Tennessee State line was
agreed bya unanimous vote, together with
the amendment offered by Mr.. Hamilton,
proposing to pay $4,000 of the indebted
ness of the city to that road by loan Of
81 100000 for the term of five years, at an
rejected by unanimous vote, together with
interest of per cent.
Upon a discussion of the proposition,
several members spoke strongly against the
ordinance. The speech of President Long,
in opposition to the loan, is thus reported
by the COlTier-J Journal:
Let us look at the proposition first in
financial sense. We are asked to loan the
Nashville Railroad Company the bonds Of
the city to the amount of two million of
dollars, having thirty years to run, the city
TO pay the interest at 7 per cent per annum
for five years, which will aggregate the
sum of 100000, after which the
Nashville Railroad Company is to pay
the interest and principal or retire the
bonds from her own resources. This is
claimed to be sort of compromise Ordin-
ance in lieu of the ordinance of 1866, by
which the city voted to subscribe by a
direct tax of thirty-five cents to the sum of
one million of dollars to build the Knox
vile extension. This tax was levied for
the year 1867; the amount realized being
about the sum of $192, 900, leaving the
balance yet to be collected of about $685.
600. Now, to pay this tax under the Ordin-
ance of 1866 upon the present rate of assess
ment-say in round numbers of eighty
millions-We will collect each year
that said tax of thirty-fve cents is
levied the sum of $280,00O, which
will aggregate total of $4,000 in three
wears; overpaying the amount now due
under said ordinance about So, 900. In
return for this $4,000 the taxpayer will
get the stock of the Nashville Railroad
Company, which, at its present value, so
cents on the dollar, they will get back $672,-
900, leaving an actual loss to the taxpayer of
$4,000, which amount will be actually
given to the building of THIS Cumberland
Gap and Knoxville extension. While on the
other hand, if this ordinance is adopt
gu, luC JdApdlCl Will IhNO W pay SAAC oaAih
of 100000 in five years for which they get
the stock of the Nashville road, say at its
present value of 80 cents on the dollar will
realize IN return the sum of S56O,OOO, leav-
ing an actual loss under this ordinance if
adopted of $4,000, being $28,0 900 less than
under the provision of the ordinance of
1866 now in force. Such is the result of
financial comparison o: the two ordinances
in question.
Now ifthey were both placed upon the
same footing, and we were fully satisfied
that the Nashville Railroad Company did
intend to call for the collection of the tax
under the ordinance of 1856, wound say
that it would certainly be to the interest
of the city to pass the ordinance, and annul
the ordinance of 1866. But this is not the
case. Under the ordinance of 1866, when
YOU have collected the $4,000 by three
year levy of 80 cents, the liability of the
city ceases and no bonded debt of $1,000,
600 stands against her to depreciate
or weigh down her credit. While
if YOU adopt this ordinance and loan, the
city's credit to the extent of two million of
dollars and pay the interest for five years,
recurring the collection of 100000, the city
still stands liable for the two million of dOl-
lars, and will remain as part of her bonded
debt for thirty years, thus increasing her
bonded debt that amount, which Is bound to
be considered against her by the capitalists
of the world when they scrutinize her tinan-
cial condition. They would be unsound
financiers if they did not do so, for who can
foretell the future?
Is il not possible or even probable that
the city of Louisville might be called upon
TO pay off these bonds at maturity? The
Nashville railroad is sound and prosperous
now, but it may not be thirty years hence.
1t may be then in the condition that the
gentleman from the Seventh Ward, Mr..
Hamilton, thinks that the JetfersOnVille,
Madison and indianapolis railroad is likely
to be il in few years, as cited by him
short time since as an argument why the
city of Louisville should now get posses
sion of the bonds of the city that she
years ago loaned to said road. l apprehend,
however, that the gentlemen does not look
at the two roads from the same standpoint.
am rather inclined to the opinion that he
is preiudced in favor of the Nashville road.
Still, if his position is applicable to the one,
it is certainly applicable to the other.
Therefore, as a financial proposition, l am
decidedly opposed to this ordinance. If we
owe the Nashville Railroad Company any
thing under the ordinance of 1866, which |
do not deny, |, for one, am ready for the
city to pay it.
Yet | do not believe that the Nashville
Railroad Company will ever call for it, not
withstanding the fact that the gentleman
from the Seventh ward states that he is al
most authorized to state that she will call
for it. say, let her call forit if she wishes.
When she does, We will be ready to meet it,
l am now through with the financial
status of the question. Let us look for
moment from a commercial standpoint.
This ordinance proposes to extend, by the
aid of Louisville, the Knoxville road to
Cumberland Gap, TO meet or connect the
road coming west from Norfolk another
Eastern line. Do we, in a commercial or
any iother sense, need this line of road?
VIII it be benefit or an injury to Louis
vile? In my humble judgment, it will not
benefit our city, but will prove an injury.
It will lie building road more for the
benefit of Memphis and the Southwest. 1t
will be the means of building road that
will give Louisville;the gO-by, and cause
diversion of trade from her, rather than
attract her. We now have four lines to
the East: Short Line, Jacksonville and
indianapolis, Ohio and Mississippi, and by
the mail Ing of boats, and will soon have
the fifth line by the Chesapeake and Ohio.
These lines give us all the competition we
need. We are not now,. neither are we
likely 70 suffer for competing outlets to
the East and to the North and also to
the West. We DO, however, need
another outlet to the South. We are indeed
.rfFor;nG tor it, We reaiize its necessity
day after day. . know it to be trTe. |
could cite numerous instaL.- :" '"''y ~.
monstrate the truth of my position on =. 'N
question if time would permit. If we have |
the credit to loan two millions of dollars to |
railroads, let US, in the name Of the COM
merce and future prosperity of our city, |
lend it toward the building Of another road |
South, and not to the Nashville road for !
this purpose.
We have already aided the Nashville road |
to the extent of four and half millions, by |
a vote of the people. We have certainly !
done enough. The Nashville road has done |
much for the city. 1t has been, and is be- |
ing, well managed under the circumstances |
as the only outlet to the South. The Nash
vile road is not more selfish and grasping |
than other mOnopolies. Yet do not think |
it is to the interest of Louisville to be sub |
;actad IN the ruIa ar dictatiOD Of aDV mo- |