Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-03-07
ence Of any special significance having been

Il
come now to the last point made by the commit
tee on behalf of the State, and this is urged not
tluentto that issue but as ilustrs tive Of the injury
suffered by the State In consequence OF her c)nnec
ton with the internal Improvement enterprises OF
the State and especially in the forced sale of the
railroads uadeT foreclosure OF the statutory NOR
| As understand the history of this transaction,
viewed In the gdt thrown upon 1t by the legislation
bearing upon the subject and the official records OF
the state the sale or the defauiting railroads was
clearly an unavoidable necessity Receiver had
been appointed by State authority and placed in
charge OF these roads and under their management,
as stated IN me 9ca report OF Comptroiler Penny
roads, sustained loss averaging S25C0 Uer day.
As the agents appointed on behalf OF the State to
conduct the foreclosure OF the mortgage and super
intend the sales, presume It will be conceded by
petent and of more rreproachable Integrity of char
acter could not be found in the State, outside Of
it, than Robert J. M'Kinney Francis B. Fogg and
Archibald Wright, and TO these added the gov
ernor, the secretary of state and the comptroller
To these defaultng railroads the state had made an
advance in her bonds amounting to S14,62S,0 1000,
and upon the foreclosure of the mortgage, the gross
proceeds of sale amounted to only 1893 600 in the
hands OF the State. showing loss Of S7,930.000
But does this heavy loss aIly imply fraud or
Acknowledgement on the paIt of those repTeS 5nting
the State? But these roads had not only shared in
the general depreciation OF property values through
paratively dsmantled and diapldated condition,
Quirng large disbursements for repatrs and If 1t be
alleged that the state should have bid them In at the
sale thus avoided sacrifice, the answer is that
roads and with what success has been shown; and
as Of the roads that actually bid 10 by the
proved a burden on her hands that she was soon
anxious 10 be relieved of But ii 1t be supposed that
| S669S,000 was a wholly inadequate price for the
| roads, It may be well to bear in mind that the
present assessed value of these roads with all
| commissioners on behalf of the State, ana among
whom are two members of this body, the honorable
senators from O6ion and Giles Is as shown by the
In closing my remarks on this topic. one slgnif-
cant query may be maGe-I1 the bonds of the State,
which these statutory mortgages were intended to
secure, Illegally issued, for any other
| principle of law or equity could she undertake to
forecIOss the mortgage? The debt is the principal
| and it is solicism that the commonest
| understanding eau appreciate, to talk of selling
the property covered by mortgage to void debt
and in this very act Of taking possession of the roads
| and finally selling them under the mortgage, has
not the State permitted herself to direct and un-
avoldabe recognition of the validity of her bonds?
| And now having reviewed in detail The prominent
| grounds eff defense made by the committee on be-
half of the State submit that they not such de-
lenses as the people of Tennessee Will be satisfied
| with, and yet they have right to conclude, from
| the ability of the committee and the industry they
| have displayed-thOse at least making majority
| report-that all has been said that can be said
that question, and what Is the result? Not that the
State has been wronged and defrauded by her cred
itors the holders of her bonds but by the incOm
her own sworn official representatives, running back
through long series OF years and exhibiting de-
upon our civilization and a TeprOach TO republican
/ institutions
The report of the committee the further fact that
the defeseS suggested In behalf of the State al
most wholly of technical character, such as no
dsputing debt would voluntarily or as matter If
choice avail himself of, and that to say the most
for them, they of doubtful efficacy or validity;
that while the State has, 1t may be, been the victim
OF fraud and Encouragement in her affairs, her out
standing obligations are not entirely without cOnsid
Grafton, the magnificent structure in whose halls
| we are new assembled, and as some OF our literary
and charitable institutions, and that even
| as to }, the railroads, whose deiinquencies
i they were oday bloted suddenly out Of existence
it would be the tnf1iction upon our citizens OF
calamity that would oveTtop, so far social
oymentS and the Industrial interests and develop
ment and progress OF our State are concerned all the
accumulated losses and disasters of the war.
In closing this tmlnoIlty report trust may be
allowed to say that while l concede ito each and
every member OF the committee pure and patriotic
motives in the course they have pursued and the
that L may nghtfully claim no less for myself. /
have endeavored to look at the question from the
standpoint of Judge acting under the binding obi
cations Of an oath, and while my opinions may be
dissented from, and my positions deemed gntenaRle.
70 61fsn hhay p mo goS 81
with ali Illegal and unjust debt. am myself
have felt and now feel, the gTieYods pressure OF
taxation ana as S'Tea upon rsct o2 i9
cause of the creditort bondhOlders of the State,
not being their counsel attorney, and never hay
| Ing at any time been the owner OF bond, Federal
| State or municipal.
| MY recommendation, then. regarding the question
of the States Indebtedness in ali ITS aspects is that
| the State, II she means to contest the validity or
her bonds shall at make provisions for having
this issue tried and determined by disiGterested or
| by one of her own judicial tribunals, whose
Judgment 81 all be final and if in favor will ac
Gut MS at the bar OF public opinion throughout the
world that the State snail, without delay, make
| arrangements with the creditors for settlement
| upon such terms We may propose, without dis
| honor, and the condition and present pecuniary
circumstances of the people or tennessee Will en-
Settlement or suit ara it seems to me, the only al
| and am prepared, If 1t shall be
deemed proper TO accompany this minority report
with basis OF settlement which, under the pledges
| given By most of tine members OF the Legislature,
would, in common with any other proposition touch
ing the matter have to be submitted to the people
for their acceptance or rejection, would at the
same time, if could do SO with pTopriety submit
proposition 80 to amend our constitution and laws
to nterpose an ell etual safeguard IN the future
against the es S h and IL h asnP snase s o
nations, States and municipalities ReSPe spp
concur in the foregoing report.
At the conclusion of the reading of the re-
port, Mr.. Ewing offered senate joint reso,
luton for printing twenty-five hundred
| comics of the minority report for the use Of
the senate, sanG-copies for the use Of the
house, to be bound IN the same pamphlets
with the report Of the ajority of the com
mittee.
Mr.Wilson moved a suspension of the rule'
to take up the resolution.
: Mr.. FOLEY said that he did not know tina
it should be included IN the pamphlet witt
, the majority report.
Mr.. Wilson said that he had no objection
: to having the two reports printed side b.
4 side. He had no objection to being put IN 81
I attitude Ct difference win the report JUS
a | read by the senator from Shelby, because l
the report he had submitted was not ground
u ed UPON a sound and right construction o
It law. he did not wish the contrary view to b
: | denied a comparison. Mr.. Wilson was pro
E ceeding TO a review of the points at issue be
Il | tween the two reports when
{ Mr.. Clapp raised the point OF order tina
:. | kl,o .o,acti0y, before the sonata WAS the reSO
}, luton to print; he wished to know If tn
U | senate was now to go into a discussion OF TIT
3 | merits of the State bonded debt or of tn
{ difference between the reports.
h Mr.. Sayage-No; let us have the printing
! Mr.. Wilson stated that he preferred tn
Is contrast between them be shown.
II Il Mr.. 1olley said he had suggested the IN
d propriety of printing the minority report l
e the same pamphlet with the majority, be
\. cause he supposed the latter was already ]
n type, and also that to print both togethe
lie would make too voluminous pamphlet, br
ID if these objections did not apply he wante
them printed together.
OF Mr.. Savage said he wanted both repor
20 printed together, aud also the evidence. b
Re wanted to fight this question squarely. ID
bt insisted that every bond ever issued wi
Us without law or authority, and was void
is The resolution was then adopted.
ne Mr.. Wilson offered a resolution that Il
OF reports of the majority and minority OF Il
at committee appointed to investigate tt
"a validity of the State bonds, and all bon,
he and resolutions relating to the State debt,
Of referred to the committee on finance, wa
he and means, with request to report prop
We sit.on locking to the adjustment of &
nd State debt, and that they be request,
he | to report this week; he wanted some ui
nd tiuct proposition with regard to the soluh
ri Of the debt problem before the senate for d
et cuSsion; they could then discuss the meth
ng or methods by which a solution of the que
,eHs ~, ton could be reached; it could be SUBMIT
"a and discussed in committee OF the whole. /
IN: asked a suspension Of tue ru!es to take
e9i the resolution.
ay Mr.. Morris said he did not oppose the
Ofs fort to reach method OF solution Of
to debt problem, but he was satisfied that
ery finance committee could not agree on
err question, and the result would simply be t