Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-04-08

/ : =
| nifty as to have rendered to 1aa tdE-r OF T.
bonds a lien upon tangible property by Wa
| of InsIrIng prompt payment IN addition &
| It's own pligEted faith. Its true that IN lS5
| Tennessee held a high position. Cer,aini,
| she might, without presumption, have elaine,
| in the worlds money markets the utmOs
| confidence. But these circumstances furnish
| no adequate reason Tor tuning away tron
| the piaIn import OF BE-: promise directed {,
| universal attention bY this public act (scc. -
THE CONTRACTING PARTIES.
The position assumed by the legislation q
1863, as before stated, Is that the only con
tracing parties in this whole legislative sys
TEN of 1852 were the State Oh the one side
and the companies on the other, the actua
money lenders, to whom the bonds were ne
gotiated, being, 1t IS said, total strangers l.
the arrangement. This, Irdeed, Is the on
suitable basis fox the Interpretation Of thi.
slnklng-iund section insisted on 10y the ope-
rators Of 1869. With all irre.evaucies elm.
mated by this brief description Of the posi-
ton taken, let Us look directly at tee prOcass
OF buying State bonds by the debtor comoa-
ny, assigning them to the governor, and pay
ing them into the alleged creditors treasury
as prescribed in this seventh section, anl
compare such prescribed action with the
theory. Ii the company WAS Indebted 70 nc
one but the State, as alleged, tie delivery OF
treasury must necessarily, co. instant, by a /
and operation of law, work an extinction pro
tdHtO OF the principal debt; for, on the as
sumed theory, the company would have nc
more concern with the payment or non-pay-
ment of the outstanding State bonds whIci
1t had negotiated than a merchant, after pay
ing at bank his discounted note has with the
banks circulating bills which he had once
held, but which had passed from hls hand.
and were attoat III unkn0wn and uadIsc0Ysr-
lble hands. But what says this seventh sec
ton! And bonds so PAID il, and the inter
est accruiug thereon from time to time. shall
be held and used by toe Safe as sinking
fund for the payment OF the bonds issued
to the company (section >. These words
plainly show that, II tn conception Of th,
legislature using them, tae dcbs created
10y the negotiation OF these bonds Is
sued to the company" remained unpaid anG
IN tulI force, UotwIt hsta1dng any and al
contributions to the sinking fund. The,
show, also, that the action here prescribed
was only precautionary measure to secure
It's payment. OjAer sections OF the acts
show that the whole Of this outstanding duhs
due to the bOndbolders remained an ObIIra-
ton, the principal and interest Of which
were still to be paid in due course to The
bondholders oy the company. The next
clause OF the seventh section, prescribing
of bonds which had been ISSUED
to the company, should any such be repur-
chased by It and paid into the sinking fund,
shows that the distinction between exit -
gushing debt by actual payment and pro
viding fund il the hands of a banker o.
trustee for its prospective payment at q tn
ture day, stood Out plainly III this immediate
connection before the legislative mind. If
the bonds issued to the company" as
claimed, were IL no wise connected with the
lien, and, therefore, undistlngulshable in eff
lnpff
marked distinction between them and other
State bonds? Why, also, it may be fairly
asked, this special and elaborate contrivance
as to the latter kind Of bonds when paid into
he sinking fund? With interest to be
on them they were to be kept in |
process of constant accumulation THIS is |
Ill sensible enough when the sinking fund = /
TleWed as provision for future payment Of /
debt not get matured, Treating il rs such !
provision, it IS quite reasonable that ii /
houid be kept accumulatlDg until the PERIOD |
It maturity, although in the meantime the !
sSential debtor-the actual borower-ig
onstant'y paying full interest on the unpaid |
ebt to the actual creditor.
FRAUDULENT EVASION.
Surely such a conception is not Taralleled,
Z point OF extravaganza, among the pre-
7nses OF fraudulent evasion recorded In his
Dry, eccentric as from necessity such pre-
- ny o,tGn osen; IaAlnG hotice tEat
~ ~ ~ jLIs imaginary
IL So, ., ~ s.'''5 nOGS roy essen
a, CuC n ms instance
'ivcd that the object might not be under
GOD, and, evidently, with 4 view TO 0GViatr
ny possible misc0ncaa elton, it was directed I
49,, ~ Stat" a! Siioui" % IS pc
81 t .fio ga ~" tng company Inc
~ ~ nc r| eliSn 8eCtloA
ct;c,, ,,ot " tHo 0t'tS' I-a'
- 10 Ao.' :, ~ NC Regarded as
80 Et u 70 'ilo oC''!G general poWet
~ 9ittai Iot LIS own '!u an" comfort,
49,, III - 80 % JuslIoS " ahhihl
10 7 az . 80 3a'9 anG except
90 ~ VI tne sJocHHoioei.
- ~ ., - 80. 'S ~ tLlsi- soc
;a "a ~ HI IMAM 70 1u9StfEe the
~ I'oLl 'Li'ii u ocicty
y Piot,osili I n5 oEeL- adhcIIohed so ire
oiI'. aLu ~ ~ T leIefHllndtioAs
t! esC JuolciaI tilNI'iiai as jiat the law
tors 80 ~ y,iiio az IS MADE
~ ,neo 1tie c!iLracI anu - PafG OF Il m
NJ &C. I,i,'r 'tlS 80 .IiiH VI ir7 con y
VI, 40 tnus constituted cannot De Il
P""e4 ny any subsequent ieGlsia q
d. "oqIu nafdiy ne oec0rous II oc- 4
Ply ATTENTION 10y citing authorities to TINS b
q Gords IN o,a+; no., = - ~ T.
lated in sucn Instance u0,I.r and IN M +.
nee Of pubic statute. Tucy were luIy N
istered in a public office ard gar.,n.rIrsd =,
conformity with thai sfatrtn 81 as n,,r1;sl -,
ably to fix their identity. The staf,,fa m
Jared explicitly tnat s:the bor5s gy'I,'fE -
stitute lien Upon the nrnperfv m ora.- m
to secure their p1yment Nv tho Conn., "
- and couformab!v to CONNIE, ,,s,Cr. -, "
b transactions that lien was Inv tTa s1n,n W.
ute vested" ia the States "a a nnhIic o.,
tical corporation TO effaatnaf. ihaf nI,|eat ~
statute was a constituent part Of a s orY' -
It completed as to each bond bv its saIa - Fl
money. lender. and was as connisIsIT- ~
,orated with and made A narf IF fEof o1l,- -
t as if its ptoyisIoDs. ac55r,ii,,t, ~ ibal. tn
significance. intent and maar.in,, I'll, ter
most thoron0h and YerfaatIr, i-teII;,,;iT s1I
anations had berr u1rjita, y, ~ - ~ tin
he face Of the hond WI 80 go W.; =. OF
simple statement Of fta oo, $500 - pam on
tba STATE and ~ 1871 ca
40 well az 49,, - - - on
re- them the inS;n;aI - ioL1 OF
u rnor - CO.. ,I atIte,. "iLl pe sac
ion 81 ,,oit;adI ~ itS o"h ule'G Iaf
~; IL fdS po-'oio1': Col tlo'@lIoh So vested -;
"a III U:n l piti amy Si[lp the pond- 81
49,, VI az ih'eieSG ~ 1t. OaStlng ASIDE o.,
t ptouS "DETAILS anu thuS reducing the NJ
'ioh 10 It's essential elements Is to an !oH
It. ing
A STATE OUTRAGE. coz
e constitution Of Tennessee vi4hbolds 4 i,i
her legislature any ooVyp~ IN ,,nrrafI1afa az
~ o,,I.,,-a,- - =. F0-F Hlt