Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-05-31

dollars annually which reduces the amount
which the taxpayers will have TO pay
TO forty and tour. Upon this proposition OF
the railroads will add another word. They
will carry out their pledge simply because 1t
Is to their interest to do so. The legislature
adopted my suggestion and set apart the as
sessment they are to pay to the public debt.
The amount they are to pay will pay the In
terest on five million dollars of the debt as 1t
now stands, and upon two and one-half mill
lion dollars of the adjusted debt. Second,
THE INTEREST
is to be paid at Nashville, and but once
year. Third, large part of the bonds will
be OF small denominations, and if the expert
ment which has been successful in other
States Is equally so with Us they will become
a home currency. l will now state the rea-
sons why think the proposed adjustment
ought to be ratified by the people. For
number of years our State has been
1t has prevented wholesome legis-
lation by absorbing the attention
of our legislators to the exclusion of every
thing else. 1t has undertaken to dictate to
the people what men shall or shall not hold
every office within their gift without regard
to their fitness. 1t has discredited the pub
lie press and paralyzsd its usefulness. 1t has
invaded the pulpit and built strange fires
upon the affairs of religion. 1t has sur
rounded our legislature with INSCRIPTIONS
lobbyists who, to make money for them
selves, seek by legislation to put the bonds
up or down in the market, as their interest
at the moment may suggest. In my opinion,
therefore, the public welfare demands that
the question shall be settled. A diversity of
pursuits and interests has been the prolific
source of dissension upon this question.
OUR BUSINESS MEN
are interested in sustaining credit. as they
make money by the use of credit, and hence
as rule they have warmly sustained every
proposition looking to settlement of the
debt. While, on the other hand, those en-
gagged in agricultural and mechanical pur-
suits have less interest in credit, and with no
incentive other than the obligations OF honor
and justice to animate them, they have as
rule autRgonized every proposition looking to
an adjustment that was not apparently
founded in equity and Justice. Hence the
conflict. And now that plan of settlement
is submitted to the people which has hereto
fore been deemed reasonable by the repre-
sentatives of the agricultural and mechanical
classes, it seems to me that If it IS defeated
we will be thrown at once upon hazardous
sea. l know that the people of Tennes-
see are utterly opposed to repudia-
ton, and that they recognize it as a
poison which talnts the whole history of
people. Now, it seems to me that if we can
not unite upon the proposed adjustment that
there is no other upon which we can likely
unite and therefore practical reputation will
be the inevitable result. A part of our peo-
pie oppose the adjustment because it is too
low. If middle ground between the two
extremes cannot command the approval of
the people, certainly neither extreme may do
So 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 judgment is at fault. | will state my
reasons for this conclusion briefly: The adj
iustment proposed would not have been
| adopted by the legislature but for the offer
made by the railroads, simply because they
saw no adjustment would be made unless
| they undertook to perform their part. Suits
were pending against them, and while the
weight of legal opinion was IN their favor,
! yet they preferred compromise rather than
risk the result of the suits. Suppose no set
| Element is made and the suits are decided in
their favor, is it not clear they will not pay
| if the suits are successfully prosecuted, the
great bulk of the debt will still be left for
| the State to settle, while the railroad COM
| panies whose property is sold by the bond
holders will be clamoring and lobbying for
| indemnity from the State. After the suits
now pending shall have been settled adj
versely to the bondholders, all of them
will be willing to accept the adjustment pro-
posed, but there is something less than three
| millions In bonds now outstanding issued to
the solvent roads. The holders of these par
| ticular bonds are profoundly interested In de-
featlng any settlement until the suits are de-
| clded. Ii they succeed N successfully prose-
/ cutting their suits the amount they will re-
ceive will exceed the amount the State
proposes to pay. If they fail In their suits
| they expect to participate in the benefit of
any further settlement which may be made.
1t is their policy therefore to hasten their
suits and to postpone settlement.
THE PROPOSED ADJUSTMENT
makes this line of policy imperative on their
part, since 1t provides that day should be
| fixed limiting the privilege of funding under
! the law, and they know if the adjustment 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, these
bondholders will leave NO stone unturned
to defeat the proposed adjustment.
IN their recent published manifesto.
In that they seek to encourage all
holders of bonds issued to railroads to
| believe that all the roads are good for the
bonds outstanding, when the fact is well
| known that our branch roads can
be operated as independent roads 80
as to make them pay, As further
|
decided this summer when it is known that
| this is impossible. They say to the other
! bondholders that if this adjustment is defeat
| ed the State will make a better one in the
future, when all who know the facts know it
is not true. And finally to defeat the settle
ment before the people, they say the submis-
| sion is not legal, and attempt to coerce all
holders of railroad bonds to cooperate with
them by declaring that if they do not join in
| their suits and repudi2te the adj ustment they
shall be barred of all benefit from their re-
covery. When they did this they drew a sword
| by which they must perish. The State has
| the same right to say to them that if they
| fail to accept the adjustment In a given time
that they shall 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 opportunity and the
whole debt is funded,
THE RAILROADS WILL HELP PAY IT.
If, however, the holders of railroad bonds
| will not fund, then their debt will be barred
under the law, and the State will be excused,
/ IS it gave them chance to accept all the
State should rightfully pay. IT 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 bondholders, by
reason of the uncertainty OF their rights, are
| both willing to make concessions to the State.
| With the termination OF the suits the oppor-
tunity will pass away. Before attention was
called to the obligation of the railroads, they
were proposing to do nothing, but now they
offer to contribute to the common burden to
degree which if offered at any time hereto
fore would have insured settlement. They
| failed for long time to do their duty, but
now when they offer to perform it the State
ought to respond to the offer. l have sub
mitted to the comptroller, who is presumed
| to be better able than any man in the State
to know the facts, an inquiry as to the rate
of taxation 1t will require to meet the inter
est, and l submit his reply. After a survey
of the whole question, 1t seems to me that
the bondholders will be paid under the pro-
posed adjustment
ALL THEY ARE ENTITLED TO RECEIVE.
| It appears that the reduction of the debt and