The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1879-03-13
THE TENN. DEBT AGAIN.
Minority Report Of the Conn.,
nfttee Investigating
Its Validity.


NASHVILLE, Tenn, March 6.-The
minority report from the legislative
committee to investigate the validityof
the Tennessee bonded debt was pre-
sented to-day by Senator Clapp, OF
Memphis. The report assumes that
the liability of the state upon bonds
issued in her name rests for its decis>
ion on the law and facts of the case
as III a controversy between private
persons. If the legislature has not
the Inherent power of making con-
tracts, 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
committee cannot understand upon
what ground the state expects to es~
cape liability as surety or guarantor
on its railroad bonds as the matter
of a negotiable instrument. As to
funding war interest the committee
knows of no principle Of international
law that suspends interest on an inter
est-bearing debt due by one OF the
Selligerents to the other. As to fraud
in the issue of bonds-suppOsing fraud
to be established-if a legislature
pronounced its own deed invalid, that
must be considered as mere act Of
power which must find its vindication
in a train Of reasoning not often heard
in courts of Justice. The legislature
being the agent of the people through
whom alohe they can act its act'is the
act of the people. Forty witnesses
were e&amin I'd by the committee and
no proof sufficient in court Of Justice
to warrant the conviction Of single
member Of the legislature. In no
case does the testimony show that
money or other valuables wds offered
or received to influence the vote Of a
member. Government being rerpet,
ual, while those administering it
change hourly, Tennessee did not lose
its political identity during the Brown
low regime, the validity Of which has
been recognized by federal and state
authorities. Subsequent conditions
set up by the majority committee as
an avoidance could not affect the val
iditv of bonds after delivery. As to
post-befuitl Binds, all the railroad
officials to whom bonds yere delivered
swear that all netessaty afidavits and
vouchers were fled before they
received the bonds. As to the
alleged opinion that the invests
eating committee Of 1S69.70 were de
tered from repudiating any bonds on
the ground Of invalidity from fear of
reconstruction, the effort made in the
evidence 10 connect holders Of Ten
nessee Bonds wi.h the movement
wholi7 fails. Mite years have elapsed,
with three different governors and
legislatures, all representing the dom
inant political party, and no effort
made to testthe validity of the bonds.
The state has all along recognized
them by funding them and appointing
state directors on railroad companies
to which the bonds were issued. The
state in forecIosing her mortgages on
delinquent railroads realized over six
million dollars on rods now shown by
! the comptroiIer's books to be worth at
the present tfr1e, including improve
ments and repairs, not quite two and
a half million dollars. If the bonds
AhIch theSs MOI tgages were intended
to secure were illegally issled or are
void, upon what principle of law or
equity could the state undertake to
foreclose the mortgage? The commit
tee in conclusion recommend if the
state means to contest the validity OF
her bonds that she have the issue de-
termined by disinterested or one Of
her own judicial tribunals, Or without
delay arrange with creditors for set
tI5ment on terms that can be proposed
without dishonor and as the condition
and Resources of the state will enable
her to comply with. Settlement OF
suits are the Cnly alternative.