Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-05-31
On the Fifty and Four Fight-He Dis
cusses Low Taxes and the Origin
OF the Movement, which was
then Styled Reputation.
A Strong Appeal for the Ratification OF
the Action or the Legislature, the
Most Practical Move Toward
Restoration OF Prosperity
TO the State.
Special to the Appeal

1t was evident from the warm applause he
received that nine tenths of the crowd were
heartily in favor of the settlement of the
debt at that rate. he was occasionally in
terrupted by questions, one OF which was re-
garding the effect the suits against the rail-
roads would have relative to the settlement of
the State debt. He regarded the suits as OPP
perfume, and they would do much toward the
settlement of the debt; the bondholders
connected with the suits had given notice
the other day that those who did not Join
them would be debarred from participating
IN the result of the suit; the people would
agree to a settlement at Fifty cents and four
per cent. interest, aud the legislature might
give certain time in which the State would
fund the bonds, and this would be doing
nothing more than those who had brought
suit against the railroads were doing; at any
rate the suits would probably be pending five
or ten years and the people would not have to
pay interest on these particular bonds during
that time; he believed that the bonds held no
lien on the railroads, but even ii 1t should
be 30 decided, the State would be under OBJ
legation to refund what the railroads had
paid to the State.
Being a pronounced "low-tax" man, and
in no way bound by, or responsible for, the
recent act of the legislature for the compro-
mise and settlement of the State debt, can
afford to utter my MISUNDERSTANDING
myself to the low-tax men-WithOut restraint
as to what should be done at the coming cleo
ton. If we maintain and carry out our
proportions, we, the low-tax men, must sup
port this bill-not that every low-taX man
has in it what be desired. The low-taK men
will prove their sincerity of profession by
supporting this bill.
The speaker here gave history of the low
tax movement, which he dated back to 1873,
at what is known as the Maxwell house John
son meeting, the call for which was signed
[ - lo lob
ecutive committee. Returning to the subject,
Mr.. Colyar said:
The low-tax men in the legislature st the
called session were barely able to defeat e
settlement at sixty cents with six per cent. /;
hut Colonel Savage, Mr.. Wilson, Mr.. Tolley,
Mr.. Gregg, and myself, with most of the low
tax men, voted for fifty cents and four per
cent. interest. The State-c credit pen, with a
! few low-taX men, defeated 1t. Now, Ehen
the State. credit men come to it shall we
abandon it? This would be whimsical.
| Mr.. Bailey came to Nashville on the - day
| of -. 1875, and discussed the question OF
| paying the whole debt, and | replied to him,
| insisting simply that by the loss of property
and shrinkage of values, and the withdrawal
of our circulation, we were not able to pay
the whole debt, and that the loss from q
common cause should fall on both debtor
and creditor. This speech was published
| and, so far rs | know, it met the approval OF
| the low-tax men. In view of these facts, es-
pecially the votes of the low. tax men in the
! legislature, and of Colonel Sava9e's demand
! for a settlement at thirty-three and third
| per cant, with six per cent interest, l ask II
| 1t is not the State-credit men yielding and
coming to the i9g=tay side? Fifty
| cents, with four per cent. interest,", y the
same as thirty-three and a third with SIX,
| 80 far as the annual pay ment of interest is
! concerned. Taere are other questions as to
| the mode and maasef % issuing the bonds,
| and even alleged frauds in p2rti01.Gr cases.
| but the State OF Tennessee being to-day tAa
same corporation 1t was when these irregu-
| larities occurred, the question at once pre-
| sents itself to the intelligent mind whether
| the present agents Of the State can avail
themselves of the Illegal acts CT former
agents, the corporation being the same
! However this may be, the question arises
! whether, in the proposed settlement, al
| equities Of essry cOnceicGbIe character arr
not covered by the asstelfent. Supposns
our debt to be S24, 900. 0oe, cur sunsai llabil
ity Is 81, 440, 600; but instead of paying thi
sum, it is now proposed to pay $3.50, 600
abating $960,000 annually. Can We longe
act up equities of any sort? VIII this no
cover general shrinkage 10 property; war IN
is-est and ali other equltesp 18th tn
greatest confidence l submit this question
to the thinking low-tax men of this State
What have we been demandiDgP Slmpl.
an equitable adjustment. Over and owe
we have proclaimed that We we're not to
Reputation; that a common eaiaiait
should fall on all alike, that the landoWne
should not suffer all, but that the man wiz
| had loaned the money to the State should b
willing to an abatement, so as to make hi
loss equal to the losses of the men who hav
| it to pay The most extreme men on th
low tax aide, making their own calculations
had erected an arbitrary standard of righ
between the bondholder ana tax payer
thirty three and ons-third and six per cent.
in other words, annually foUr hundred an
eighty thousand dollars on the tWenty-Tou
millions, lust what this compromise Is. Th
bondbolders at first demanded, and bot
| parties IN the State insisted on paying al
per cent. on the whole debt, one million fou
{ hundred and forty thousand dollars. Tn
State credit men yielded this point and pro
, posed to compromise at sixty cents, with 81
per cent, making an annual interest OF eigh
hundred and sixty-four thousand dollars
This the ioE-tax men, only little over
! year ago, were allie to defeat by a yer
small majority, but offering Ia lien as a sui
stitute City cents and four per cent, which th
State. credit men refused to agree 70. Now
when the State-credit men come to u
shall we fly, and thereby admit that 1t was re
pudiation aud not an adjustment which W
wanted? There need now BE- no compromi'
or evasion. The question IS now betwee
paying four per cent. on one-half OF the del
and neutrality-suspicious. IN Its wor
form, the debt repudiated with the annoy
ance of having the conflict renewed ever
= two years l submit the question to the il
/ | telligent and thoughtful low-tax men, ha
we not better settle? If we owe anything
don't we owe thiFtg-tLree and one-thlrd cen
on the dollar? Dong justice between ma
and man, can we complain at paying fog
5 | hundred and eighty thousand dollars Tor or
million four hundred and forty thousand do
| lars? The abatement of interest I'm tn
thirty years. is twenty-eight million eigl
hundred thousand dollars, which, with til
| twelve million dollars principal, IMAGES fox;
million eight hundred thousand dollars
our obligations abated. By agitation an
2 | discussion the State credit men have bee
| brought to realize the justice Of = comprC
mise and from the defensive they ha>
turned and assumed the offensive, and urge
? | settlement by which the bondholder sha
lose f,cO-thirls Of his interest for thirt
wears, a loss, including principal, OF ovt
| forty millions. Shall we not agree and en
this long and angry strife? What is to be Il
effect of this vote? 1t the settlement
j | voted down, foF ysars and years we are
e have strife, contention, orIE4in9tiQn and r
! crimination-a renewal of the question
/ each succeeding legislature. This we ha'
l had now fcs several years, and this Wi
4 willing to stand, in Gae hope of reducing t!
( debt within our ability to payj but am n
| willing to fasten upon the State chron
quarrel, arraying the different classes again
! each other for whole generation. Wheth
2 the silent Reputation of our State debt, if
| were possible, leaving no internal disseI
Gions, would so affect 80 abroad as to mat
rally impede our prosperity is a ueStIqp
will not debate; but to repudiate the de-
4 aud transmit the malignity and hate whit
A il viii eagender to our children must great
| impede the growth Of the State and mar Il
= the reign CT New York king, car yaet T
sources give US 20 wealth. But shall We n