The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1879-07-24


nized as a valid debt, and the bonds to be
scaled are specifically enumerated in the
law. They are as follows:
Capitol bonds... BE-. .......... 8 AS, 900
Hermitage Bonds. ..-.-..-.. 200
Agricultural Bonds. .... Is, eco
Union Bank Bonds ......... q. .......... lbs, 600
Bank of Tennessee Bonds. 2l4,O00
Bonds to Turnpike Companies 14l,GOO
Hiwassee Railroad Bonds. .--...-.-. $50, goo
East Tennessee & Georgia Railroad Bonds $4,000
Memphis 4 LaGrange Railroad Bonds-.---- 6S,OOO
Ante Railroad Bends s,5SS 900
Post Railroad Bonds 1890. 2,G3S GOO
Funded under Act of 1S66.............-.. 5000
Funded under Act Of 1868 .-........-.....- 569OOO
Funded under Act Of 1873 4,o61OOO
The railroad bonds referred to in this
schedule were issued in aid of the railroad
enterprises then struggling into being, and
with the money thus realized near 1000
miles of railroad were secured and built,
adding millions to the taxable wealth Of the
State and saving fabulous amounts of money
to our people in the matter of transpOrta-
ion-eVen in our county the sum of 81, goo
year. 1t is a common error that these
bonds are held exclusively by rich bank
ers and corporations, on Wall street.
No matter where they are held
they are, all the same, the just
debts Of Tennessee, and she Is this day en-
jOying the benefit of them. But the fact is
that compared to the whole amount, the
number Of our bonds held north of Balti-
more is inconsiderable All the worldly
wealth of many a good man in your own
State, and many W dow and orphan in this
and other States, is invested In these bonds,
and beggary awaits them all alike, if this
compromise, by which they give away half
their debt, be rejected. 1t is an error, also,
to suppose that these railroad bonds are the
debt of the railroads and not the State, If the
litigation against certain roads should
terminate adversely to the roads, the roads,
60 instonG, become the creditors of the State,
and the State is still bound to the roads for
the whole amount they may be compelled to
pay the bondholders, in every case where
the roads have discharged their indebted
ness to the State in substituted bonds In
the legislation under which these bonds
were issued, the State became the sole
debtor, and reserved to itself and to
itself alone, statutory mortgage on the
roads, their rolling stock, fixtures and
The bonds were issued to bearer and embody
simply the obligation of the State TO pay
them; and nowhere in the vast body of leg
islati0n on the subject is found a line or
a word that intimates lien or mortgage on
the roads for the benefit OF any man or cor
PoratiOn who should become the holders Of
these bonds. Indeed, it Is impossible to tell
from Inc lace oil any one OIL the DbuuS 10
what railroad company it was originally is
sued. In the original legislation the
State reserved the right to legislate in any
necessary manner for it's own protection,
and this element inheres in the contract it
self and is part OF it. so that all persons
who bought the bonds took them with full
notice that the State reserved to itself lien
which it might at It's option relInquish to
the railroads in any manner deemed neces-
y,
ton in the original contract, it seems, would
put a tinality on the question. The idea that
any bondholder of this class has lien upon
the railroads of this Stale to pay the debt
which the State alone owes, whether
pressed in good faith or held IN teyTOrem
over the roads to secure, pro hue rice, their
powerful aid in having the public debt adj
justed, is in my Judgment a fallacy which
the courts will in due time explode. 1t Ger
tainly never entered the mind of any Legis-
lature, or Governor, or Attorney General of
this State, whose official duties required the
most careful consideration of this bond ques-
ton in all its phases, that any man or cor
poration held lien, either equitable or
legal, upon the railroads of this State as the
mere holders of the bonds issued by the State
to it's railroads. 1t is a conceded prin-
ciple under the doctrines OF equitable
liens and subrogations that when Obiiga-
ties for its payment pass with 1t TO the as
signee. But suppose the original mortgage
has in his contract stipulated the reserva-
ito of a right to relinquish his securities to
the debtor-and he does actually do So
then the lien of the mortgage is forever
gone and upon what principle can the as
signee evoke a lien? And this is the exact
status of this question. The railroad COM
panies who have discharged the States
lien in substituted bonds, are for
ever acquitted of all indebtedness to
the State, and the bondholders can
look alone to the State, their sole debtor,
from the beginning to the end. But human
Judgment is falIible, and if | am mistaken
in this, the fact still confrOnts us that, if the
railroads who have discharged their indebt-
edness to the State, are again compelled TO
pay, the State is bound in law and morals
to reimburse them. The people then have
no great concern with this embroglio between
the bondholders and the railroads. They
have nothing to say at the polls bat that we
will accept the generous proposition to pay
debt of $24 900 600 with So, 900, 900 in thirty
year bonds at four per cent. interest, and let
all creditors come in and fund their debts
under the new contract, and II any should
stand aloOf under the idea that they cen
make their whole debt out of the said roads,
then that is not your matter. You, at least,
have done what you could. But If 1t should
turn out that the bondhOlders' litigation
should succeed, then the railroads viii be
the bondholders and the creditors OF the
State, and the avenue to accept these terms
of compromise will still be open to
them. In any aspect of the question,
this settlement will be wise, judicious,
and benefcent to you and the generations
that are to come after you; and the very
fact that the debt is adjusted upon a basis so
honorable in you, and so generous in your
creditors, will, in my judgment, put a new
face upon things in Tennessee. We want,
above all things, to increase our wealth--to
build up our waste plaees-to open the
bowels of our mountains-to clear up and
cultivate our vast domain of unopen lands
To do this we must put ourselves in a con-
lition to invite capital and immigration
within our borders. Wecannot do so with this
hanging about our necks. When
The invitation goes forth now, these people
mock at your hospitality, and say you want
hem to come and help you pay this enor-
nous debt, or share the disgrace Of nom
payment. A thrifty emigrant, In search of
new home, first enquiries the amount of |
he public debt in the country where he |
iesires to go, and what burthens Of taxation |
lie will buy with the land ne purchases. If |
hese burihens be light he will, other /
hings being agreeable look about him /
or homestead. II they are heavy, he /
will falter and hesitate, and then go |
way TO some more inviting country. If he |
Ne an honest man, and sees Reputation even
n the dim distant future, he will turn away
n disgust. For he knows that the State IS /
he people, and the people are the State,
nd that a State once dishonored, like a
7oman'z daffiaI 4. Hfah.uorefl !