Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-11-04
The Issues Fairly Stated and Fairly
ATgued-All the Candidates Urge
Unity, Harmony for the
Whole Ticket.
The Ticket as il is at the Head Of the AD
peal Should be Voted by Every
Democrat from "Uncle
Sammy" Down,

graduated the Democracy Of Shelby
county in having such q man to repre-
sent the people in the Legislatures; he
also cOmplimepted ths Democracy upon
the excellent character of the other
gentlemen who compose its ticket in this
county. The meeting was somewhat
enthusiastic and listened attentively to
the speakers.
Remarks OF Mr. Lowe.
The question in State politics, which
at the present time almost wholly ab-
serbs every other, is our bonded debt,
and the policy to be pursued concerning
the same. Very little of our debt, If any,
that is now in existence was contracted
before the passage Of what Is known as
the "internal improvement law Of
1852" Here commenced in Tennessee,
for the first time, upon an extensive
scale, a policy which was at least very
questionable under all circumstances.
BY the report of Comptroller Hochet,
made in October, 1885, 1t will be seen
that the State debt proper, was at that
timeonly $4,744,2l9. Solvent railroad
companies were owing $14, 800, ,066, upon
which the State was bound. Insolvent
railroads owed, for which the State was
bound, $5, ,933, ,12l. Assuming that the
insolvent roads were utterly worthless,
the whole amount of the debt
for which the State was bound
to provide in 1866 was $40, ,677, $40.
The solvent railroads were fully able to
pay the amounts for which the State
was bound for them; and the insolvent
ones were able to pay, at least, one.half
of what they owed, and on which the
State was liable. So we see that the
real indebtedness OF the State at the
time the Republican party went into
power was not such that it was likely to
become oppressive to the people. When
the Conservative-D Democratic party
went into power in 1859 they found this
debt increased SIS, 1878, ,246. This in.
crease was caused to some extent by Re.
publican extravaganza in the admins
tration Of the State government, but
mainly by the frauds committed under
color of what was known as the "omni-
bus railroad bills" passed by the Brown.
low legislature. When the legislature
elected in 1869 met at Nashville, they
found the State debt increased this
enormous amount and nothing in value
to show for it; nor was the State pro-
tected by liens upon solvent railroads,
for although the bonds had been
issued by the million yet very
few miles of railway had been built.
The frauds committed upon the State
from 1865 to 1869, under color of these
''omnibus railroad bills,n had been 50
fragrant, and had become go notorious,
that this legislature felt called upon to
take some notice Of the same, and, by
investigation, to ascertain, as for az
possible, how this pretended debt Of
WNa1
The committees appointed to make the
investigation met after the adjournment
of the legislature. The proof taken by
them, and their reports, fill book o.
nine hundred and ninety-twO pages
known as the appendix, 186S-70. These
committees are entitled to the thanks o.
every citizen of Tennessee for the ef'
ficient manner in which they performed
their work. Shelby county was repre-
sented upon them by Hon. Hoses
Townsend, 8 lawyer Of ability, industry
and integrity, and the work OF the com
mittees show that he did much to place
before the people of the State the rea
facts about the creation OF this pre-
tended debt. From the reports of these
legislative committees, it will be seer
that there was during Brownlow's ad
| lo5uCu III JULIUS Vi LAk
State of Tennessee a total of SS, ,5SS, 600
So this much of the increase is here ac-
counted for. Other bonds were illegal
ly issued, but the most glaring frauds
were perpetrated in the issue to and ust
of bonds by these railroads. The condi.
tions to the issuance OF the railroad bonds
| fixed by the acts OF the Tennessee
legislature were as follows: "That the
| ho,, IL. ;,,, 70 hn a0l1 % 1oos
than par; that the proceeds OF saiC
bonds shall alone be used in building the
bridges and repairing said roads, anC
putting them in running order; that the
railroad company shall procure bona fdt
subs criptions for the capital stock in said
companies to an amount sufficient to
grade, bridge and prepare for iron rails
the whole extent or the main trunk line
that said subscriptions shall be good and
SOLVENT Also, that whenever said
company shall have graded, bridged
and already to put down the necessary
timbers for the reception of the rails, anC
fully prepared section of thirty miles
of said road at either terminus, and the
governor shall be notified Of these facts
by affidavit of the chief engineer anC
president, that the specified amount
Vi 6ud1 Oc 1oSuCOY CJCs I'LL
Cooper, Of Bedford, was the chair
man Of the joint judiciary committee
to whom the matter of the Tennessee
and Pacific railroad was referred. He
was one of the most Zsalous high-taz
men in the State. In his report he says
the committee instructed him "tO report
in favor of the passage Of an accOmRa'
pying bill, which declared tn at the $685..
600 issued by the governor of Tennesse
to General Nancy, president, etc., were
Illegally issued, and prohibiting the
comptroller OF the treasury and the treas.
urer Of the State from voluntarily pay.
ing said bonds, or the coupons clipped
from them, or from receiving them In
payment of any debt due and owing the
State of Tennessee in any way" In
their report on the Mineral Home road,
the same committee say: "We are ol
opinion, and so report, that the State oi
Tennessee, having now for the first time,
through its legislative department, dis.
covered and exposed the fraud by which
the wrong was perpetrated, have the
legal right to annul and disafflrm, with.
in a reasonable time, the contract sc
made, and especially can the State Of
Tennessee be protected by legislative
tsClS az olusb hANlu6 bhC JULIUS " pay
In the opinion of the committee, the
purchasers of said bonds can, in NO
sense, be considered bona tfde purchasers
who purchased them from the original
parties to whom said bonds were Issued,
or their agents, at less than par, because
under the law, which they are presumed
to know, there was attached to their sale
the express condition that they should
not be disposed OF for less than
par" This is a sample Of the differ.
ent reports made by the committees.
The bonds were invariably sold for from
fifty to sixty. eight CENTS on the dollar.
The reports of these committees bring
to light the grossest and most fragrant
frauds. We cannot quote further from
the reports, but let il suffice to say that
in some instances where bonds were is
sued not even an experimental survey
was made. 1t is clear, Notwithstanding
the peculiar circumstances which sur
rounded the legislature Of 1669-70, that
they in no manner ratified or affirmed
the debt; but on the other hand they
stigmatized these bonds and placed
their disapprovsl on the records OF the
country. But 1t is said that the legisla-
ture Of 1869 passed a law::allowing SOL
vent roads to pay their Indebtedness to
the State in bonds Of any Issue. This
act has been severely criticised during
this canvass, but 1 submit that
it has not been fairly dealt with.
II will be found ins the acts of
lS69.70, page 81, and "allows any rail-
road company to pay into the State, In
Iok - - IN