The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1879-12-25
NEUTRALITY-SUSPICIOUS..
Maj. Sykes Explains Why They Are
Only Loans.


Only Loans.
In GAINESVILLE last week Maj.
Sykes made a railroad speech, and
we clip from the Chronicle that por-
ton of 1t which referred to town or
county subscriptions as loan. 1t
will be remembered that he referred
to this subject in his late speech in
Pulaski. 1t is the best plan ever
suggested upon which to build a
road.
In regard to town and county
subscriptions, Maj. Sykes said he
was not for asking any more than
was absolutely necessary, that he
preferred getting as much as posi-
BILE by private subscription. In
fact, he said there was properly
speaking no such thing as a town
and county subscription; it was q
misnomer; they were, under our
laws, mere loans. He then referred
to Sections 1,155 6 and Z of the
Code, which read thus:
1l55-The Tax Collectors, as fast
as collections are made. shall pay
1156-He shall also, as he receives
the tax, give to each taxpayer a
certificate in such form as the rail
road company may prescribe, show
ing the amount of such tax paid by
him, of which he shall retain a 'du
plicate to be delivered to the Presi-
dent of the railroad company, and
such certificate is negotiable by as
signment or delivery, and with a de
duction of the proportion of the
cost of collection is receivable In
payment of either freight or pas
sage on the railroad in which the
subscription is taken, after the ex-
piration of one year from the COM
pletion of such road.
1157-The holder of such certifi-
Gates to the amount of such railroad
company, is entitled to demand and
receive from the company in lieu
thereof certificate of stock in the
capital stock of such company,
which will give him all the priVil
eyes of any other holder.
These sections of the Code, which
have been sustained by our Su-
preme Court, show that the taxpay
ers can elect either to receive freight
and passage certificates or can get
for them stock in the company. In
most OF the instances of county and
town subscriptions heretofore, they
agreed to turn their tax receipts
into stock, but they could have OBJ
tanned for them freight or passage.
So the law now is, il thus appears,
that they are mere loans. II a man
pays a railroad tax of ten, twenty,
thirty or any number of dollars, he
can use his tax receipt on the road
or transfer it to any other person.
and that person may use it. The
people are really to get back what
they pay. Maj. Sykes said he
would even go further; he would
issue notes or bonds bearing six
per cent. interest and make them re-
ceivable on the road in payment Of
freight and passage. These notes
and tax receipts would become a
local currency and would be taken
by merchants and others in pay
ment of debts or in the purchase Of
goods, because they could be used
on the road in payment of freight
and passage. The fact that such
notes or tax receipts were out
would very greatly increase the
business of the road; fully as
much, he thought, as the amount of
the notes and tax receipt. For IN
stance, suppose a road fifty miles in
le8gth should be built in this man
ner The entire cost of this road,
would be, through this country,
100000; six per cent. interest on
which would be $4,000 per annum.
If the gross earnings of this road
should be, at low estimate, $48,
600, then it could pay for opera
ting expenses $4,000 and take
up easily the $4,000 which was re-
ceivable in freight and passage. If
it should be necessary to borrow
100000 payable in money, then it
would only be necessary to take up
$4,000 in freight and passage
The road could pay it's running ex
penses, $4,000, the interest upon
its debt, $12, 300, and easily take up
the $4,000 of tax receipts and
notes payable In freight or passage.
A railroad company that can pay
for its construction in work to be
zone on the road must be a success. |
The cars have to be run, and the
more business they can do the
greater will be the profits, for it
costs very little more to run full
cars than it does to run empty |
ones.
These tax receipts, which can be
bushes to an extent that will be |
truly ASTONISHING. In reply to a
question he said these tax receipts |
and notes we're debts, and when |
they were paid, the individual
stockholders would own the road |
by fair and Legitimate purchase.
He thought the less money that was
borrowed the better, as it would
enable the company to own their |
own road and not be compelled to
part with it to pay debts. 1t is
much easier, said he, for a road to
pay its debts in freight and pas
sage than in money, and if this ex-
petiment should be tried it will be
a success.