The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1879-06-05
THE STATE DEBT.
A Letter from Gov. Marks in Fa-
VSr Of Its settlements j usfice
and Policy Demand the Rrat-
ificatiOn OF the 5O-4 COmprO-
mise by the People.

The jackson Tribune and Sun of
last week contains a strong letter from
Gov. Marks to Hon. John A. Gardner,
in favor of ratification by the people
of 50,4 compromise for the settlement
of the State debt. On account of the
length Of the letter, we can print only
the concluding portion.
Recent events have changed the
whole complexion of this question and
made this the last opportunity the
State will ever have for favorable
adjustment of the debt unless my
judgement is at fault. | will state
my reasons for this conclusion briefly.
The adjustment proposed would not
have been adopted by the Legislature,
but for the offer made by the railroads
simply because they saw no adjust
ment would be made unless they un-
dertook to perform their part. Suits
we're pending against them, and while
weight of legal opinion was in their
favor yet they preferred compromise
rather than risk the result of the suits.
Suppose no settlement is made and the
suits are decided in their favor is it not
clear they will not pay a dollar they
can avoid ? On the other hand if the
suits are successfully prosecuted the
great bulk Of the debt will still be left
for the State TO settle, while the rail-
road companies whose property is sold
by the bondholders will be clamoring
and lobbying for indemnity from the
State. After the suits now pending
shall have been settled adversely to
the bond holders, all of them will be
willing to accept the adjustment pro-
posed, but there is something less than
three millions in bonds now Outstand-
ing issued to the solvent roads. The
holders of these particular bonds are
profoundly interested liz defeating any
settlement until the suits are decided.
If they succeed in successfully prose-
cutting their suits the amount they will
receive will exceed the amount the
State proposes to pay. If they fail in
their suits they expect to participate
in the benefit ofany future settlement
which may be made. 1t is their poll
cy, therefore, to hasten their suits and
to postpone a settlement. The pro-
posed adjustment makes this line of
policy imperative on their part, since
it provides that day should be fixed
limiting the privilege of funding un-
der the law, and they know if the ad-
justment is ratified by the people that
they will be put to an election as to
whether they will rely upon the State !
or the railroads before their suits can
possibly be decided. Consequently
the bondholders will leave no stone
unturned to defeat the proposed adjust !
ment. Their line of policy is clearly
outlined lii their recent published man. |
ifesto. In that they seek to encour-
age all holders OF bonds issued to rail-
roads to believe that all the roads are
good for the bonds outstanding when
the fact is well known that our branch |
roads cannot be operated as independ- |
ent roads so as to make them pay.
AS further inducement they say the |
suits will be decided this summer
when it is known that this is impOssi- |
bic. They say to the other bondhold- |
ers that if this adjustment is defeated |
the State will make better one IN
the future, when all who know the
facts know it is not true. Ana final |
ly to defeat the settlement before the |
people they say the submission is not |
legal and attempt to cOerce all held
ers Of railroad bonds to cooperate
with them by declaring that if they
do not join in their suits and repudi-
ate the adjustment they shall be
barred of all benefit from their recov-
cry. When they did this they drew
a sword by which they must perish.
The State has the same right so say to
them that if they fail to accept the
in given time that they
sh III be barred as they had to say to
their fellow bondholders that if they
failed to join them they should be
barred. If we avail ourselves of the
and the whole debt is
funded, the railroads will help pay it.
If, however, the holders of railroad
boEds will not fund then their debt
will be barred under the law, and the
State will be excused as it gave them
a chance to accept all the Safe should
pay. If they prefer to look
to the roads let them abide their
choice. 1t seems to me therefore that
the opportune moment for settlement
is now while the railroads and the
boldholders by reason of the uncer-
5ainty of their rights are both willing
10 make concessions to the State.
With the termination of the suits the
will pass away.
Before attention was called to the
obligation of the railroads they were
to do nothing, but now they
)ffer to contribute to the common
burden to a degree which, offered at
lny time heretofore, would have in.
'ured a settlement. They failed for a
ong time to do their duty, but now
when they offer to perform it the
State ought to respond to the offer. l
nave submitted to the Comptroller,
who is presumed to be better able than
my man i'll the State to know the
acts, an inquiry as to the rate oftax-
ltion it will require to meet the inter-