The home journal. (Winchester, Tenn.) 1858-188?, 1876-06-08
ll'cr the Home Journal,
what Policy Should We Pursue"

lULcIehL upon INC pUIlC N'bE 400
been accommodating for several years,
and tho hO]ndhOIdrrs want thl, interest
added 20 the principal by another iuod
Ing bill. They also want the n'nOliit
Of revenue increased by IRisinS the
rate Of iu%aliOu, charging the mt Of
"prjYIIcgoo,' or WlSmcutJug the OBJ
ircls Of assessment, 1t matters not To-
them who sinks 80 they swim, IArit
mortgage covers the whole State OF
Tennessee, according TO their theory (,
mud, If they had the power, they "ou.p
take everything u poor man has bn'
the cIothc, upon hia back, with rs little
conjunction as IN alligator would eat
Il dog Aud the railroads, for their
part, are determined to prevent the re
peal Of section II, OF. ch Is, Of the
Act Of 1878, which cGeu'pt3 them from
taxation for tea years longer upon
condition that they pay to the State i
per cent. Of their gross earnings.
II railroads we're taxed Ike private
individuals, heavy taxation would be
40 LurdGnsomc to them ~ 10 the pco-
PIE, and they would be directly inter
cstcd IN securing al economical admin
i,tGtjon Of the government, and tue
liberation Of the public revenue, Their
interest would be in conflict with the
interest Of the bondhOldGrs. This Is
what the hOndhOldcrs and railroads
know, And therefore. in order to
avoid a conflict between these wolves,
then tools IN the last Legislature cX-
cmptcl the railroads from taXlllOu for
ten years longer, upon condition that
they turn over u per ccnt, Of their
! gross earnings to the State. And no
doubt the next Legislature will be Sc
riousIy told that to repeal section IL,
Of the Act OF 1919, would impair the
obligation Of a contract and violate
section 10 Of article ] Oh the Federal
Constitution. because it ~ provided in
section ! ! of the Act Of 1919 "thaL the
charters Of all railroad companies &C
ccpLing the provisions Of TINS section
shall be hereby 40 amended that alter
the expiration Of SAID ten years, no *
cmptious Of any property Of said raj.
road company shall exist, but be
placed upon the am footing as the
property OF other corporations or ia
d%ividuals." But unfortunately for the
railroads, and fortunately 10" the pGO-
pie, the Legislature cannot bind the
State when il exceeds the limit OF its
authority. Section 10 Of the Act Of
1873 is clearly unconstitutional. No
where does the Constitution authorize
the Legislature to exempt railroads
from taxation, or 30 accept in lieu
thereof Il portion Of their gross earn
iugs. And when We remember that
not a railroad in the State was legally .
exempt from taxation at the time the
Act Of 1873 WAS passed, and that the
property Of railroad companies stood
upon the same footing rs the properly
OF other corporations and individuals, |
we see how rldICulpuS Is the aforesaid
prOvIsO IN relation to the amendment
Of their charters, There is no IcgaI
impeachment, therefore, in the way Of
the repeal Of sec, II Of cl. Is Of the
Acts Of 1873, and it ought TO be done.
companies should pay taxes
axe other corporations ana individuals,
md when they iMl to do 50. Their
property should be sold like the prop
.rly Of others. This is what the Con-
@tilution requires, and tins would be
Ist, But, nevertheless, railroad con
will labor diligently and secretly
o get men elected to the Legislature
'hOm they can control, and therefore
he people should be exceedingly care :
III in the selection Of their representa-.
ives.
Propositions for a compromise of I
he State debt will possibly be made by {
he bondholdcrs, and this IS II subject /
'hich should be Thoroughly understood
ctore the Legislature meets. Now, [
pom what terms would the people be ,
to compromise? Those who
dvocate reputation say the Statc j.,
Indcr no moral nor legal obligation to
the bondholdcrs anything. Upon
he other hand, the boudholdcrs say
hat they hold the bonds Of the State
or about twenty three million dollars
With interest, amounting in the aggrc-
gate to about twenty SIX million. But
hey have never been able to show
hat the Legislature had constitutional
authority to issue these bonds, nor
hat the law prohibiting the sale ut less !
han par of bonds issued to railroads
vas complied with. This is the way
he case stands. The present owners
| the bonds bought them for about
Drtv cents on the dollar, and we have Z
o doubt that the people Of Tennessee
ave paid about rs much IN interest rs |
he bonds were sold for originally.
We cannot see, therefore, that rcpudia- !
ion would be 4 very great hardship 1
nd, when the bUndhOlhcrs demand
he whole amount Of principal and in
crest, the claim is simply ridiculous. t
such Il proposition cannot be enter J
AIMED Tor Il moment. Nor can we en-
the proposition to pay one-haIi
+ the present debt with interest. The !
onds are worth about forty cents ON $
he dollar. One half of The prcscn. u
CHI would be about thirteen million. Ii
interest ut six per cent. would be
10000 a year. This added to $500, L
% for current expenses would make Il
1850, 900. Now, the taxable proper
of the State is assessed at about