Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-18

expenses of the present Legislature.
Passed.
PRIVILEGE TAX.
The consideration of the privilege tax |
oill having been made the special order, it !
was resumed. The filling of the blank hx-
no the rate of the ad valorem tax being the |
question at the time of the last adjourn
ment, the chair announced that motion
had been made to fill the blank with forty
five cents on the hundred dollars OF assess
ment, and that another motion had been
made to fill the blank with forty cents.
Mr., Patton moved to fill the blank
with thirty-fve cents.
The question being upon the motion 10
fill the blank with forty-fVe cents, it was
no. agreed to.
The question then being upon filling the
blank with forty cents, it was not agreed
to.
Mr.. Snipes entered motion to reconsld-
er the vote rejecting the motion.
The question then being upon the motion
to fill the blank with thirty five cents, it was
Mr.. Snipss moved to reconsider the vote
had upon Saturday by which the Senate
refnsed to fill the blank with fifty cents.
The motion was agreed to and the vote was
reconsidered.
The question then recurring upon tne
motion to fill the blank with tltty cents, II
was agreed 10 by the following vote:
Yeas-Messrs. Allison, Brandon, 20 ul-
ter, Hughes, James, Jones, McConnen OF
Blount, Mcconnell of Trousdale, Moody,
Richardson, Tillman and White-l2.
Nays -Messrs. Hamilton, McCall, NC
Kenna, Milton, Morgan, Patton, Smithson,
Spipes, Warren and Speaker Lacey-lO.
Mr.. Mcconnell of Blount, offered as an
amendment to the tax bill, a provision pro-
hibiting Tax Collectors from receiving In
payment of taxes notes OF tbs Bank OF
Tennessee, issued on or after the 9th or
Nav, 1861, and also making it the duty OF
the Attorney General to resist the payment
of said notes by all legal defense, through
the courts. Agreed TO.
Mr.. Morgan offered as an amendmenf
provision subjecting the property OF rail-
road companies to taxation after the limita-
ton of exemption from taxation shall have
expired. Agreed to-.
Mr.. Warren offered the following amend
| ment:
The tax collectors shall receive in pay
ment of taxes, gold, silver, United States
currency, national bank notes, old issue oil
the Bank of Tennessee and State warrants.
| Agreed to.
The question being upon the passage OF
| the bill on third reading, as amended, IL was
passed by the following vote:
Yeas-Messrs. Allison, Brandon, Coul-
ter, Hughes, James, Jones, Mcdonnell o.
Blount, Mcconnell of Trous iale, Morgan
Patton, Richardson, Robertson, T1lman
and White-14.
| NaYs-Messrs. Hamilton, McCall, NC
Kenna. Melton, Moody, Smithson, Snipes
Warren and Speaker LACEY.
Mr.. Mcconnell, of Trousdaie, moved to
reconsider the vote just had, and immedi'
ately moved to lay the motion on the Ia
bic. The motion to lay upon the table Wa
agreed to.
PROTEST.
Mr.. Smithson, on behalf of himself anC
Messrs. Morgan, Melton, Warren, Snlpes
Hamilton, Lacey and Mckenna, presente'
the following protest, which was read D.
the clerk:
| Protest against the passage of Senate bill NJ
| 2lI entitled can act to fund the past gu
bonds and coupons of the State ana sustain U
credit thereof"
The undersigned Senators, in exercise
their constitutional right, present this.thel
protest, against the passage of Senate bl
No. 21l, entitled San act to fund the pas
due bonds and coupons of the State an
sustain the credit thereof"
Said bill in substance provides that a
past due bonds and coupons of the Stat
Shall be funded in State bonds bearing in
terest at six per cent per annum.
| Irxoh hnnhS Pnnn0nQ
to s.. .2S6. .654. This sum does not nov
hear interest, there being no interest upo
interest. Nor could it ever bear interest
unless the State expressly agrees to pay it
Said bill proposes to put said sum OF %,
2S6, ,654 at interest. The annual lntere:
thereon will be about $317 10000. Tt
bill proposes to pay this sum annually fc
forty years.
At the rate of fs317, 10000 for forty yeal
the people will pay above Sl9, 9,2l6,OO0
90 interest and still owe the S5,2o6, ,6o4.l
now proposed to be funded. Tbs interes
that will be paid on interest, under this bi
in forty years, will nearly pay the bonde
debt of the State.
{ Under this bill the taxes will be so big
that the people cannot bear any addition;
, tax for a sinking fund and the tax of 81
3 242,OOO annually to pay merely the intere
, ON the State debt becomes perpetu
t in addition to the tax necessary to pay Il
current expenses of the State government
On the contrary if an annual siDkir
fund of S317,200 were raised and apple
: to the payment of the past due bonds al
coupons, the whole past due debt would
. paid in a little over sixteen years, and att
g the payment of the past due debt, could
4 applied to the reduction of the principal
/ the remaining debt.
@ This is what the undersigned desired
|. do. They favored aud would have vote
: for the passage of the Senate bill introduc
d by Senator SmitSson in lieu of said Sena
e bill No. 2I1 on the 4th of March, 1873, e
i titled Gan act to provide sinking fun
and pay the past due bonds and coupons
o But it was the intention of all OF The u
5 dersigned to amend said bill in lieu so as
8 provide an annual sinking fund of S3lI
n 200, instead of S500,000. In addition
: the passage of a bill providing for sinkir
d fund the undersigned would have provide
s for the payment of future interest on &
J. outstanding debt which could have be-
f done with precisely the same money requl
e ed under said bill No. 211, for the sinktl
fund we desired was just u
annual interest on the past d
debt funded by said bill No. p
In the opinion of the undersigned, ''fnr
ing" will not permanently and ultimate
improve the State credit, but will requ
heavy saxes to pay the interest on the pu
A. lie debt, without reducing it in the lea
,s and probably ruin the State credit in
:, end.
- =, They do not think it just to take frC
a a the people thirteen millions of interest up
~ ~ interest, and at the maturity of the bon
- . leave them with $5,286,654 of interest S
10 hanging over them.
= Instead of funding the past due debt, t
y undersigned proposed to let it stand, and
~ provide an annual sinking f1nd of at le
~ $4,000 with which to pay it of. By I
20 means the whole past due debt could
" paid off in few years, instead OF pay
~ $317,200 annually for forty years and lie;
as ing it still hanging over the people at
Of maturity of the bonds.
" If a sinking fund of S317,200 had bt
adopted, the tax necessary to raise it wo1
10 have been precisely the same as that nee'
sary to pay the annual Interest on the d
he proposed to be funded: Under the fund
/ I'm. l. - tla 1aofh I'm n