Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1879-01-23

meet the interest upon their am
te-war bonds, and thus protect
the taxpayer. Allofihese bonds
were pretended to be issued im-
der various amendments TO the
Act Of 1872, Tie amount is-
sued was $l0,6S3,OO0. There
were honest men in the I.egisla-
tive bedies which authorized this
fraud, hnt their efforts To protect
the State were unayaiIing. But
their manly protests exhibit the
shameful methods employed in
the preparation ofthis vast fraud.
The facts subsequently devel-
oped, in connection with the
Journals ofthe two Houses, show
that appropriations were refused
unless the members. were paid to
make them. 1t appears that
bonds were sold at a large dis
count TO raise money to pay
membersto vote further appropri-
ations. 1t appears Tint with the
proceeds of bonds SO sold a min
lister of the Gospel was employed
to manipulate members Of the
! legislature, and that when he
reached the Capitol, a bill au-
thorizing the issuance Of bonds
had been rejected by decided
majority. In the mcrning he O.
Pencd the proceedings with pray
er; before night the vote was re-
considered, and the next day the
bill PASSED with but two dissent
ing votes. This bill appropriated
So, G00,000 to the ms olyent roads
1t appears that relatives Of
high officials were paid moneys
the proceeds Of bonds, to induce
favorable action in the further is
sSldnce Of bonds. 1t appears that
bonds were sold at large dis
count to pay interest in order tc
canoe! delinquencies. That the
proceeds were used to pay high
salaries to railroad officials; tc
Ipay exorbitant lawyers fees; tc
pay old debts, and in short, APP
piled to an infinite variety Of 9th
or unlawful purposes. Itappears
that the Governor, who was cloth
ed with power to decide when
the law was complied with, dele
gated his power to issue bonds
and that many Of them were sign
ed and issued by one of the sub
ordinates in the City of New
\ ork, The prodigab waste eff
this vast sum can be appreciated
when it is stated that before the
war the State had appropriated
bonds to the insolvent roads. Of
East Tennessee to the amount of
$471 100000. That after the war
for the alleged purpose of protect
ing the taxpayers from paying
Interest on the $471 10000 there
were issued to the insolvent roads
of East Tennessee $4,874, 10000
That when they we've sold they
brought, in deprecated bonds
S76S, 100000, worth not more
$350,000.00 in currency. Phe
same disastrous policy was pur-
sued in dealing with the delin-
quent roads of Middle and West
Tennessee.
By an examination of the u
unanimous report of the Joint Jul
dietary Committee of both Houses
of the Legislature of 186S-70
composed of some Of the best
lawyers III the State in relation
to the validity of the bonds issued
to the Tennessee and Pacific road,
it viii be found that the principle
is affirmed that unless the condi-
tons and limitation fixed by law
were complied with, in the mode
prescribed, that the Governor had
| no power to issue bonds, and if
issued without such compliance
they were void. The same COM
mittee, in its report in relation to
the Mineral Home road, declared
the principle that if the law was
fraudulently complied with, and
the purchasers of the bonds pur-
chased at less than the par value
Of the bond, he and purchasers
from him were affected with no
tice, and the bond void. In his
message of 1875, Governor Brown
declared the principle, in discuss
ing the liability Of the State upon
the endorsement on the bonds of
the Memphis and Little Rock
road, that as the purchasers paid
full price, yet if the Governor
who issued the bonds did not
comply with the law, the bonds
were void. Upon this point he
said, "The execution of these
mortgages and providing Of a
sinking fund, were conditions pro-
cedent to the right and power of
the Governor to endorse said
bonds, and the liability Ct the
State did not attach III the abb
Isence Of a compliance with such
conditions"
Tested by these principles, but
few, ifany, of the postwar bonds
were valid.
The holders of these bonds were
aware that when the government
was restored to the people, and