The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1879-01-23

the Agricultural Bureau, for the sum
of $4,000.
2. By six per cent. bonds, loaned
turnpike and plank road companies,
fer the sum of s57, 900.
3. By six per cent. bonds, loaned
railroad companies,-for the sum of
sl3,739,OOO.
After the 9th of May, 1861, there
we're Issued to The Rome and Carthage
turnpike company six per cent. bonds
amounting to $4,000, and to the OHIO
& Mobile railroad company six per
cent. bonds araounting to st72,Ooe.
These bonds we're repudiated in 1865,
but still the Comptroller included
them in the execution of the Funding
Act of 1866, as a part of the Pulic
debt.
The Agricultural Bureau, a part OF
the plank road, and turnpike compan-
les, and two of the railroad com oan-
les were then in default. The whole
amount of the bonds was 81 ,335, 600,
bearing an interest of $50, 100. With
out estim ting the measure Of Che de-
fault, and assuming that no part Of
the interest was paid by the principles
in the debt, the whole interest for
which the State had to provide was
1886, 33G; and after paying It all the
State still received into the treasury,
annually, over 100000 from its in
vestments in excess of the interest it
had to pay to public creditors.
But in fact, all of this delt except
SS7, 900 was the debt Of the two delin-
quent railroad companies, AMI rs 9th
er roads with equal debt and less bus
iness facilities continued TO pay their
interest, it is obvious the delinquency
was but partial and temporary.
The debt recited comprehend5 the
entire liability Of the State existing at
the time, both primary and seconda-
ry, except contingent liability as en-
dorser upon the boH;sS of certain rails
road companies amounting to s2,207-
900.
It appears, therefore, that when the
war began, the public debt was not
only no burden upon. the taxpayers,
but, on the contrary, the investments
made by the State contributed largely
to alleviate the burden of taxation for
the ordinary purposes of government.
The credit Of the State had been 80
eau iously extended to the railroad
companits that the possibility of loss
was remote. The internal improve
ment act of 1872, with its subse,
quent amendments, not only provided
abund ant indemnity for the State, L
faithfully adhered to, but it made the
perpetration of fraud upon the State
impossible. The cost Of the railroads
/ of the State was estimated to be from
| $4,000 to $4,000 per mile. The
law limited the amount for which the
State could become surety for the com
pany to about s11 900 per mile for al
PURPOSES, with Il lien upon the whole
property and its usufruct ftr its in
demnity. Nor was aid III any case tC
he extended until the road was so fal
completed ne to insure its completion
by the application of the amount guar
anteed by the State, and to the enc
that the road, when completed, shoulC
be of such value as to afford un1ues
tionable indemnity to the State anC
protection to the taxpayers, the salt
of a bond under its par value was ex
pressly prohibited, and the actual ap
plication Of the whole proceeds of th'
bonds to the sole purpose prescribed
by law was directly enjoined. By
positive provision Cf the law the pow
er to issue bonds, with which the Gov
ernor was clothed, was made condi
tional, and those conditions were:
/. That there was stock subscribeC
sufficient amount and solvency tograd
and bridge the whole road
2. That given number of mile
were completed.
3. That there was no other lien up
on the road
4. That the bonds were to be exclu
sively applied to the purposes pre-
scribed.
5. That the bonds were not to b
sold for less than their par value.
The law prescribed that all of thes
precedent conditions should be mad
to appear to the Governor by the aft
davits of certain officers of the comps
nv, by a resolution of the Board 0
Directors and by the afidavits Of a
Engineer and Commissioner, eac
- Co.. WI. II .