National Republican. (Washington City (D.C.)) 1872-1888, 1874-03-14
NzsaLsalPPL
MESSAGE OF GOVERNOR AXES ON THE
VICKSBCR9 AND NASHVILLE RAIL

Company, under certain conditions, trust fund
known - the three per cent. and the asri
cultural land scrip, which amount to som'
t320, 200. fff
/ also recommend the repeal Of % much o
an act entitled "An act to amend the severa
acts now in force concerning the 0renads
Houston and Eastern Railroad Company, an
for other purposes" approved January II
1872, as exempts said railroad company and III
acquisitions from taxation. 80
The agricultural land scrip fund was recently
bestowed by the United States to constitut,
perpetual fund, the capital of which shall re
main forever undiminished, and the interest o
which shall be inviolably appropriated by eacl
State, which may take and claim the benefit O
this act to the endowment, support and main
tenance of at least one agricultural college.
The State was authorized at the same TINT
to invest this fund Sin stock of the United
States, or of the States or some other safe
stocks" Has the State done so!
The railroad company to which this fund Il
proposed to be surrendered has not completed
single mile of road. As projected # will,
when completed, extend some two hundred and
fifty miles In this State and about one hundred
and fifty miles I'm the State of Tennessee, max
ing total length of some four hundred miles
The section now being worked on is between
Okolona, on the Mobile and Ohio railroad, and
Grenada, on the Mississippi Central railroad, q
distance of some sixty-6 five miles. It is asserted
that some twenty miles are now ready for the
iron.
judging by its progress to the present time o
number of years must elapse before these sixty
i've miles can be completed and in q condition
to pay interest on its bonds. Were It in work
ing order to-day between Okolona and Grenada
1t would run through but one county untrav-
ersed by railroads, and would be but q feeder
to two great roads.
Its southern terminus is some two hundred
miles from the Gulf of Mexico, and at almost
equidistant intervals the road Is intersected by
three rich and powerful lines, well established,
and in successful operation.
The history of railroads has taught that only
through roads, which carry the products of q
county to, market, are successful, and especially
is this the case in sparsely settled sections; and
It has also taught that new roads are rarely If
ever able to meet the lawful demands of stock
and bondholder.
Is paper railroad, like this one, but little
more than projected, safe investment Is It
one that can, in any reasonable period of time,
from its legitimate business, pay an interest of
eight per cent. to its bondholdersi Is It an
Investment from which the principal can be
withdrawn at VIM II not, IT certainly:is not
the best investment that could be made, nor
even safe one.
In the consideration of this subject, II must
not be forgotten that the V. and N railroad Is
not railroad in reality-it IL but projected
one.
Observe the security extended by that COM
pany to the State. Four hundred (4O0) miles
Of road, at $4,000 per mile, supposed to be .
fair estimate when completed and in good rum
ming order, will cost some twelve millions of
dollars, ($12,0oo, ooo.) The State is expected
to advance to the road $3.50 900, and receive in
return the note Of the company, secured by
fst-mortgage bonds, to the Same amount.
Can this not be regarded a "safe stocksp
Could the United States, in bestowing this
fund for the education Of our youth, have con-
templated such an Investment
The frst-mortgage bonds proposed as collat-
eral security cannot be deemed Of much value,
for other first-mortgage bonds to the amount
of some ten millions (s10, 0oo, ooo) may b r.
sued. In fact, the law places mo- restriction
upon the amount of such bonds.
The experience of the State in aiding rail-
roads with It's trust funds have not been of
such . character - to cause its taxpayers to
contemplate the effects of this law with any
very lively satisfaction.
In our reasoning as to the safety Of this in
vestment We should not neglect to consider,
should the law remain unrepealed, the posi-
BILE action of some future Legislature when
this company, in days Of adversely, appear be-
fore It and pleads poverty or misfortune.
The success of this road can In howise de-
pend on the sum of esd, 900 expected from the
State, which, though Insignificant q compared
to the cost Of the road, 10 highly important to
the State. To Withhold Il cannot embarrass
the road or impede its progress. However, If
It should, then the "stocks'' Of the vicksburg
and Nashville railroad cannot be regarded Is
safe, and the sooner the fact Is known by the
people who are paying taxes in the interest Of
the road the better,
We should be, II possible, more cautious and
In the disposition of the funds of
the State than with our own. Are We pre-
pared, a. individuals, to invest our own funds
in this enterprisei
By the original charter, and by the act of
January 20, 1871, heretofore referred to, the
road is authorized to buy without restriction or
limitation, and all its property and acquisitions,
of whatever character, shall be exempt from
taxation for thirty Year,, or til the road shall
pay . dividend Of eight per cent. to it, stock
holders.
Under such provisions al the roads in the
State can be consolidated, and their entire
wealth, amounting to tenth or hfth Of tho
property Of the State, would b exempt from
taxation. And this. too, though only . small
was passed should be built. Who cannot fore
zee that such corporation would delay for
many year the announcement that the stock
holders were to be paid . dividend Of eight per
PANT, and with such announcement expose
heir millions to taxationi
Railroads, when friendly to the people, are
Of inestimabls advantage; but when used to
oppress them, are quite the reverse. Let this
law stand, and there will spring from It cor
poration which, Il ruled by0he spirit of the
legislation which gave It birth, will, sooner or
later, blight, II not destroy, nearly every other
interest in this State.
The State should protect itself now, when
he task is 20 easy, and not leave Il to the peo-
pie, at some future day, when, outraged and
TO rise In their wrath and show that