The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1879-03-06
Report Of the Il, . sIatIVe Commit, e
on the state Debt.


The report says the outstanding
bonds which have been registered and
renewed number 20.219; outstanding
bonds not registered and renewed 7S9.
There are outstanding, of all bonds Is
sued before the war, and constituting
the debt pro- e., 81, 100000. The re
mainder Of the q ,0O8 bonds outstand-
ing, to-wit 1S.J03 are bonds issued
before and since the war in aid Of
railroads. OF the outstanding bonds
there are over $1O,000,000 post-bel-
lum bonds,
The committee says that in the i
suance Of 1921 bonds, in nearly
every instance the condition Of the
law was not observed.
Also that the greater part Of the
present debt is the result Of corrupt
Legislation, superinduced by corpor-
ate bodies seeking State aid. The
C mmittee ventures legal opinion
us to the litigation between certain of
the bondholders and railroads to en-
force Il lien Of the former, but declares
that the sale Of the roads was secured
in order that the property might be
obtained at a heavy sacrifice to them
jury Of any bonds issued in violation
Of the law. The committee reply that
ut least seven Of the conditions Of the
law were not complied with. The fun
ding act Of 1873 provides chat only
legally issued bonds be funded. The
committee claims that Sl1, $50, 900,
issued before and since the war, were
issued or sold in violation Of law.
Hence their adjustment should not
rest on any assumption Of Il legally
authorized contract. The act to fund
the interest accruing during, the war
was passed when passion and democrat
ization were prevalent. \ large num-
/ Der OF the bonds outstanding issued
under the funding act Of 1873, embrace
| directly, or through the result Of leg
! lslatlve TRANSFORMATION, the interest or
/ principal of the bonds issued to rail
roads under the act of 1882. The com,
mlttee further charge that the condi-
| tons Of the law were not observed III
the issue Of bonds to turn-pikes. II
1866. when the people were allowed
no voice in the State government; ST.,
941 900 were illegally added to the
State debt. The year following So.
OOO,O 600 more were corruptly added Il
the debt. One man Of influence witt
the Governor got 8O5 bonds without {
warrant oflaw.
a tabular statement is submitted
with the report to show the dispropor
ton between a. number of bonds re
ceived by many Of the railroads anC
the number they were entitled to, a
well as the small amount Of private
stock subscribed, as the official demon
stration Of fraud. That the act O
1869 where the roads were allowed t,
retire their Indebtedness operates as al
estoppel against the people as to tn,
outstanding debt is denied; Legislative
investigation Of that year disclose
frauds iii the issuance Of bonds t,
railr, al. EHorts.to reject the fraud
ulent issue then were paralyzed by
threats Of reconstruction. The repor
does not concur in the assertion tina
ante and past war bonds were sold anG
purchased without distinction. The
report is signed by five of the commit
tee. The other two Senator ClapI
and Representative Smith Of Mem
phis-wiIl submit a minority repor
dissenting from some Of the lega
points advanced by the majority o
thc committee.