The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1879-03-13
THE STATE DEBT.
Minority Report from the Legisla-
tive Committee to Investigate
Tennessee's Bonded Debt.

Nashville, March "a minority
report from the Legislative commit
tee to investigate the validity of
the Tennessee bonded debt. present
ed by Senator Clapp, of Memphis.
The report assumes that the liabili
ty OF the State upon the bonds is
sued in her name rests upon its de
cision on the law and facts of the
case, and in a controversy between
private persons. If the Legislature
has not inherent powers of making
contracts it cannot communicate
such power to its creatures, private
and public corporations. The State
is the primary and only party liable
for its bonds,as legal proposition.
The report can not understand
upon what ground the State ex-
poets to escape liability as surety
or guarantor on its railroad bonds,
as the matter of a negotiable in
strument. As TO funding the war
interest, the committee knows of no
principle of international law that
suspends interest on an interest
bearing debt, due by one of the bel
ligerents to the other. As to fraud
in the issue of bonds, supposing
fraud to be established, if a Legis-
lature pronounce its own deed in
valid, that must be considered as a
mere act of power, which must find
its vindicatIon in a train of reason
ing not often heard in courts of jus
tice. The Legislature being the
agent of the people, through whom
alone they can act, its act is the act
of the people. Forty witnesses
were examined by the committee,
and no proof sufficient in a court OF
justice to warrant the CONVICTION of
a single member of the Legislature.
In no case does the testimony show
that money or other valuables was
offered or received to influence the
vote of a member. The govern
ment being perpetual, while those
ad ministering it change hourly, Ten
nessee did not lose its political
identity during the Brownlow
regime, the validity OF which has
been recognized by the Federal and
State authorities. Subsequent con
litions set up by the majority of
,he committee es an avoidance,
could not affect the validity Of the
ponds after delivery. As to the
'ost 6elLum bonds, all the railroad
,fIicials to whom bonds were deliv
red, sgear that all necessary aft
lavits and vouchers Fere filed be-
ore they received the bonds. AS /,
o the alleged opinion that the in
committee of 1869 10 |
7ere deferred from repudiating any
,onds on the ground of l1validity,
rom fear of reconstruction, the et-
Ort made in the evidence to con.
.ect holders of Tennessee bonds
With the movement wholly fails.
Zine years have elapsed, with three
ifferent Governors, and 'Legisla-
ures, all representing the dominant
olitical party, and no effort has
cen made to test the validity of
be bonds. The State has all along
ecognized them by funding them
nd appointing State Directors on
abroad companies to which bonds
-ere issued. The State in foreclos-
lg her mortgage on the delinquent
lilroads realized over 100000
n roads now shown by the Con
-oller's books to be worth at the
resent time, including improve
rents and repairs. not quite 50,
100000. If the bonds which these
Mortgages were intended to secure
ere illegally issued, or are void,
pom what principle of law or equi
! could the State undertake to
,reclose the mortgage?
The COMMITTEE in conclusion re-
that if the State means to
Dntest the validity of her bonds,
ne has the issue determined by a
isinterested, or one OF her own iu-
icial tribunals, or without delay
with the creditors for set
ement on terms that can be pro-
Osed without dishonor aud such $
; the condition and resources of
lie State will enable her to comply
it'll. Settlements or suits are the
lly alternatives.