Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-01-19

selves anu Iney QeclueU lldL al IhN
were legally issued" and the report u
the Comptroller shows that they bought anu
paid in the most Objectionable bonds hrst,
as they were the cheapest, and TINS was |
done in great part before an lnVeStls"-
ton was had.
This precipitate action upon the part
of the solvent railroad companies serious
" embarrassed the action OF the LeglSi%-
ture, and that embarrassment was aug
mented by threatened military govern
ment, which was then asked tor by Tue
members of the Lower House OF congress
from Tennessee.
The preston as to the lien OF the poii0
holders is now pending in the courts;
In 1869 the Just debt for which the tax
pavers had to provide was comparatively
small, while the debt of the solvent roaos
was large, but by manipulation the solvent
railroads undertook to transfer their debt to
the tax-payers and relieve themselves.
Under duress from the threatened over,
throw of the State Government by Federal
interference, and believing that they had
the ability to provide for the payment OF the
entire debt, the taxpayers submitted TO the
Grave wrongs which had been done them,
rather than impril their liberties, and sub
iect themselves to unfriendly criticisms.
| But debt difficult to bear in the begln,
ming, and constantly argumented by fraud
| and funding. while all values were rapidly
denreciatinr, became at last too great Ter
| them to bear and they went down IN the
! hopeless effort.
AT no time slice the fuhdiug act
have the tax payers been able TO pay
! the interest upon the nominal public
| debt. An examination will disclose
the fact that there Was no legitimate
! pavment of interest before 1870. The
interest was pad by borrowing money,
bv appr0priatiDg the assets or the
Bank of Tennessee, by selling bonds
to raise money, and fa~Hy by taxa
ton.
In 1873, when the payment Of inter-
est was resumed, it was estimated that
the taxable property of the State
would nov be 500 100000 In fact, it
il but little over $500 600 GOO. The
! bondholders appreciate the fact that
the debt can not be met. and long since
q omUrOmise would have been had,
but for the fact that the holders Of the
bonds of the solvent railroads regarded
their bonds still lien uDOu the roads,
and until that question IS settled ali
verseIy to them, they will never otfer
a COMPROMISE within the ability Of the
Taxpayers.
Tie confusion of the just debt Of the
State with the questionable and fraud
ulent debt, has resulted dleastrousiy t.
her interest aud reputation. There
has never been q time when the State
was not able and willing to pay tbs
interest upon her just Indebtedness
but by uniting all. payment has been
M ade i'm possible.
T. u ail
eral branches of our State debt, can a
least be approximately distinguished
and il Sc, they ought to be Glstln'
guished, and permit each branch o
the debt to stand upon its own merits
and be djusted accordingly; and FOL
this purpose an appropriate COMMITTED
t should investigate ali the facts con
nected with the debt, and repOT
, thereon, III order that the justice OF tb'
case of the state may be exhibited
aud intelligent action had. All Hort
at an adjustment of the debt hereto
, fore have failed, and that failure Ia
resulted from the fact that the msr
, itorious debt and The uIjust debt have
been equally recognized, ana until
plan is adopted founded in justice &
all, If is apparent no satisfactory rtsui
: will be reached.
Uniform legislation by the Genera
I Government in favor Of capital aht
I, against production, has not OuIy de
e preciated values i'll the SGatI, but Ia
S paral1 zed more or less every indus
t trial pursuit.. Consequently, the sub
/ iect Of the State debt presents itself a
4 a most inaUS pici0us time for ADJUST
e ment, yet il Is ObsiOls that some ste
r should be taken to solve The difficult.
! and rem0ve all just occasion for re
: progch.
= An Investigation will disclose tha
{ the public debt is divided into th
!. following branches. stated in tie 0rde
i of Their merit: First, the primar
q debt If the State, and dietingutshe
4 as the STATE Debt proper. This part c
: the debt embraces the bonds for tn
= Capitol and Hermitage, the only prop
e erty now owned 10y the rtate, as TN
j result of lis investment. Second, ia
. bonds loaned The Agricultural Bureau
l, Third, the bonds loaned turnpike an
IL plank road Companies before the wal
u All of this property has been sold an
J. the proceeds turned over 10 the bono
&c holders. Fourth, the bonds loaned
g solvent Railroad Companies. Thes
1t companies own their roads and tax
d all the profits Fifth, the pOstwa
1t bonds. All Of the property purchase
h with them has been sold and the pre-
ceeds paid the bondhOiders.
r It appears, therefore, that all of tn
property purchased with the proceed
- of This vast deb except the Capitt
= aud Hermilase, has gone into tn
r hands Of tie Federal government, tn
u bondhO!d,r- AMI the Railroad Con-
l, NAMES while the State has nOthIn
IL but the deDt aud he obiOquy resuitin
2 from her ii.aDllIty to pay l.. To
e amount real q II from the public prop
y erty in Tennessee by the Federal Gov
e ernment can only be approximate
d estimated. The net earnings of tn
e Louisville ana y 4shville Road for n
Is wear ending in June, 1863, largely ex
+ Gee drd 50 coo 00G. For the same peri0
:. for some months after, aud for nearl
- two years before, tie General Govern
ment was Operating all the othe
a roads of the state, aud took al tn
% profits, besides removing public prop
. erly amounting III value to nearl,
$1,000 600.
e All of this property and its profit
q had been put in pledge by the state a
q the primary security for the paymeh
. of the bondhOlter, and at last what
. ever injury the bondholder has sus
~ tanned, resulted from the Injustice q
y the Federal Government ia refusing
5. To nav what was Justly due for tn