Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-01-08

might be remedled by Diminishing the rate OF
commission upon sums in excess OF amount 20 be
specified, say $4,000 OF coo.
sOUBCEs OF REVENUE.
he taxation OF the property OF corporations,
is subject that demands As it VIII dOub tess re-
ceiFe' your most careful consideration. The
system, IS well as the lavish hand with which
she Las granted charters for other purposes,
with 2rge privileges, entities her depleted Treas
ury to the highest Consideration from these OBJ
jects OF her care and libsrality. Yet, strange 70
say, although there is within the limits Of the
State, between seYenty-ave and one hun
drsd millions o. dollars Of railroad
property, the Treasury has realized moth
ing, either from these Companies, or
their stockholders. The major portion Of the
other corporations have escaped taxation, either
thr0il some claim Of exemption in their char
ter, or the iDI ERECTION OF the revenue laws, OF
the inefhcienCy or officers. This is gross I'M us
tce 70 the t0iing thousands Of the STATE, who
support the Government out OF their hard-earned
labo1s, while the corporations grow rich snG Op-
pressive, because Of the leniency of the State
1t Is a plcasur- 70 inform you, that during the
last two years, under the We Y comnendzble eff
forts of the Attorney General, Treas lrer and
Con ptrOler, N any Of these corporations, (other
thar railroads. have been compelled 10 paw
their Just proportion of revenue, and others are
being cOerced 70 discharge this high duty, SO
long disregarded.
It is a question worthy Of grave consideration,
whether charter exemptions FRI N taxation, either
perpetual or for term Of Yeas, made by for
lLlI AEllEElA are u autE our kALlC
law binding upon the State. II unauthorized,
or not binding, 1 respectfully suggest such legis-
lat on as may lead 70 an immediate eftectual
mode Of taxing al corporation property In the
Sfa-e, claiming such exemption, together with
all other property and stocks. Indeed, tx the ex-
emptlOn vas not authorized, CT Is not now bind
ing upon the state, under orr Organanic law,
then the General Assembly has no option under
Art. H., Sec, 2S, which provides that 'all prop
ert1-. real, personal or mixed, shdu Be tr1c d."
Certainly, the stocks in al corpOratiOnss are
taxable, and more efficient measures should be
adopted 70 make them GuGilGble for rereHue.
II is believed that much larger revenues would
be derived from corporations, and at reduced
cOs-, II il were made the duty Of the CompuOl-
lei 0. Treasurer, by rules prescribed by the Gen
erat Assembly, 70 Ascertain the v ilue OF All tax
abba property and assets Interpretations, and col
lect the taxes thereon.
Ihave twice recommended that suits before
Justices Of the Peace should be taxed, or the
law taxing other litigation repealed. Existing
legislation is discriminating in its character be
cause il taxes litigation in courts of record, ard
does not tax proceedings before Justices Of the
Peace.
II there have heretofore been any reasonable
doubts Of yOur power 70 tax litigation, they are
set atrest by the decision OF the Supreme Court
Of Tennessee, in the case of II 4rrisOn Pepper ct
ais. rs T. j. Willis, decided at Nashville, De
ceInber Term, 1872.
When ii is remembered that there are more
than 900 Justices in Tennessee, and that fifty
cases each per annum would be q sma aver
age, yOu can see that very large addition could
be made 70 our revenues by imposing small tax
on these suits, withOutoppressing any individual
and, 70 that extent, relieve specific taxation on
real and personal property.
Many States levy tax Up0n the execution Of
al bonds payable 20 the state. This IS some
times SPECIFIC, and sometimes graduated ac-
cOCding % amount. In Tennessee, we have the
inconsistency OF levylng graduated tax upon
COnv5yances upon real estate, bur impose NJ
burden upon bonds. A light tax levied upon
the execution OF such instruments would add
materially 70 our revenues.
Another considerable source Of revenue, not
heretofore made available, il Tennessee bonds
Although declared taXsble by the revenue law
Of the State, very lew OF them are reached. II,
instead Of assessing the bond as now, and col
lecting revenue upon them as upon other prop
erty, the Treasurer were required 70 retain the
tax when he paws interest, this reVenCe would
be saved without cost 70 the State. Some such
plan would afford great relief 70 the Treasury.
and is Infinitely preferable 70 pending negOtia-
ti1ns between some Of the States and their
creditors TO change their currency interest, at 8
slightly reduced rat, % gold interest, coupled
with pledge 20 pay the principal at an early
day through the lns-r lIn1 utalty OF an onerous
sinking T.Id tax
Your careful consideration Of the question
NAV develop some Just and sat-stac cry plan by
which the very desirable object Of making the
bonds pay q tax, nay b. attained. OF, Il may b
r8u-la-rru lst, both 20 debtor and creultUG, 20
aiiy raJe OF taxation upon the bonds, and pledge
the State % apply it, every yea, in eTtinEu.sh-
m-nt OF the principal debt This would mateTl-
ally contribute TO diminish the amount of our
debt, ana OF course, the line Of interest, and in
his way, relieve the taxpayer. On ths other
hand. it Is believed cur securities, 80 lar from
being Deprecated. would be enhanced by the
confidence iJ would afford fhs holders Of real
iEing the principal as well as the interest Of his
bonds IL Is certainly most desirable that pro-
vision should be made 10 refine cur debt, IS fast
rs NAV be compatible with just sense OF duty
g taJse who bear The burdens.
FUNDING THE PUBLIC DEBT.
Min the reUOrL tie laITlrrrOller Will be
found a complete statement Of the execution OF
the act OF March Il, 1873. directing that the
I asst due bonds and sOupO-s, msturlug On or be-
fore the nrst day or January, 1874, be converted
into the new series OF six per cent. bonds, pro-
Vlded for by that act The tables annexed viii
show fully the number Of new bonds is
sued, old ones registered, and the num-
Ter OF each vet outstanding, and what
securities have been taken mp and can
Celled. They also give history OF the bonded
debt OF Tennessee. from which can be obtained
lu desired statistics on that subject The bill
provided that the new bonds and coupons should
be payable in Nashville or New York, at the
option OF the creditor. To meet either demand,
I ordered the bonds, after obtaining bids from
the most reputable eugravers in the United
states. Anticipating that the option for
BONDS payable at Nashville would De very linn
ted, 1 only ordered two hundred OF that class,
none Of which have been called for OF issued,
and of the other, $50, all costing S3.SJO,oo
which was paid on my order upon the Comptroller
Complete registrations OF the bonds presented
Anu AnAliA rs Wei ~ fAl~E taken AN
aud cancelled, viii be found in convenient and
durable form in the proper Offices OF the ENecu-
tive Departments. Duplicates Of each bond
issued, with memCranda attached, exhibiting
the name of the party 70 whom issued, as well
as securities taken up, are preserved in volumes
bound for the purpUSel
The securities redeemed under this act. are
and cancel ed. and await the inspec-
ton Of a committee 70 be appointed by the Cen
eral Assembly, which it is hoped may be done
without delay.
A statement Of these securities Is herewith
submitted.
Six per cent. bonds ................S $4,000 %
Five and quarter per cent. bonds. 1000 90
Five per cent. bOnds..-..-......-... 624-510 % /
Thirty dollar coupons .......-.-.... 9j3 CD 90
Twenty five dollar cOupOns..-..-..- IL $50 ~
In addition 20 the above, interest upon bonds
that never had coupons, but which by express
contract bore interest % maturity, has been al
lowed TO the amount Of Si5,57576, and cash has
been paid 70 the Comptroller 10 make even bonds
to the amount Of Sl,ol4.6i, making an aggregate
funded S6.222.uOl
We refused 10 fund OF register any ofthe !
bonds OF coupons issued 10 "the Mineral Home
Railroad COMPANY" and those known as the |
Valley OF Virginia Insurance Company bonds
We also declined 70 fund or register any Of a !
lot Of twenty bonds, letter i. White, Nos. 4,flZ |
10 49,. purpOrfing by the records 70 have been
Issued in 1856, TO the "MCMinnyille aad Nam
ches er Railroad Company The records Of the |
1ffices Of the Executive department, show that /
bonds bearing these numbers, and Of this de-
,crip'iOn, were issued 10 the McMinnville and |
railroad, but only one bond Of each |
number, while duplicates Of each number have i
been presented for registration. The books do |
not show that such duplicates ever issued from /
this Office, nor was there any law authOriz' ne !
In If issuance, and the matter Is therefore refer
red the General Assembly 10 settle the liabil-
~ of the state, sud the rights OF holders against
the State and as among themselves. Coupons /
clips ca from the bonds Of the city OF Memphis
endorsed by the Little Rock Railroad Company,
rs first endOrser, and the State as second en-
1Jrser, have also been presented for funding,
and have been refused.
ia this connection, IL is my duty to call your /
attention 70 the fact chat the interest upon these
bonds has not been paid for some time by the CITY
Jf Memphis, and no sinking fund has been paid /
IN reduction Of the debt. The assets of the /
Memphis aud Little Rock Railroad COMPANY,
which is first endOrSer, have been 10 a great ex- /
tent absorbed. Hence the demand upon the i
tate as the second endOrs1r. The act Of the Zlst
Jf February, 1876, extending aid TO the Little i
1Ock Railroad Company authorizes the Gov Il
1rGOr OF the state 20 endorse $50 bonds OF she \
,iry of Memphis, for one Thousand dollars each,
Dad Company, pr0rldeG, 1.-THE said Memphis /
md Little Rock Railroad Company should iirst 4
endorse each OF said. bonds. guaranteeing paw
nsut Of principal ami interest OF the same;
and provided TuT.tcI, Slat the city Of Memphis /
hall hrst, by lis proper authorities, execute q
mortgage, giving 90 the state of Tennessee q
priority OF lien on the stock and inter- st OF said
,ity m said railroad company; and prgUiEed fur
her, TIA. said railroad company shall give to the
state of Tennessee a prior lien upon tle-whole Of
he iron and equIpm. mrs upon the first division
lf said road, eNt-nEiHE from " mPhi- 70 St |
u LII act provides further, "Ihat the said city
50nds shall not be 50 endorsed until the prcpe-
OF the CITY of Memphis shall prOyide |
md set apart fund known rs a sinking fund, /