New-York tribune., 1879-04-23
rrNNESsEE ND ITS RONDS.

A committee appointed by the citizens OF
Nashville has succeeded in elicting what IN
some notices is called resolution of assent
by the bondhOldeIs to the proposition made
by the state of Tennessee. 1t is important,
not only 10 genuine bOudhOlders but to those
who are concerned as to the credit CT other
states, to know just what this performance
means. Upon narrow examination 1t does
not appear that the gentlemen who have eX-
pressed their assent to the latest proposition
hy the State of Tennessee represent any con-
siderable proportion of the bondholders, or
are. indeed. bondholders at all, as far rs we
are able 10 discover. They represen in point
of fact. the railroads against which suit has
been brought for the recovery of money bOr-
rowcd upon the bonds indorScd hy the
State. Some of them are officers OF these
railroads, some directors, some bondhoiders,
some stockholders, but those who have been
zealou,ly soliciting the signatures Of boudhold-
ers of the State OF Tennessee for some days
past viii doubtless bear testimony that they
have met with vey slender success.
1t was said at the recent meeting Of "bond-
"holders." so-called, chat the State Of
Tennessee was really poor and de-
served sympathy because it was unable TO
pay Its Indebtedness A sufficient reply Is that
tax Of less than fifty cents on one hundred
dollars. even at the present low assessment
of property in Tennessee, would suffice TO pay
interest on the whole debt of the State, dis
putcd bonds included. The State, if poor at
all. Is p0o1 mainly through its own fault 1t
is rich in lands, rich IN resources, rich in geo.
graphical position, rich in railroad connections,
i e., yial, ind. nd
merce. If the State had not labored 20 de-
stroy its own credit, if it had not refused to
nav one-teuth of the tax which many prosper
Gus Northern communities pay without a
murmur, there would be no thought of dis
trusting the securities of the State of Tennes-
see. The dominant party in that State is a
patty of repudiators; consequently the State
Is poor, discraced and dishOnored.
Certain of the bondholders, having labOred
for years in vain to obtain a decent settle
mcnt from the Legislature Of the State, have
appealed to the United States courts. They
are fortified by the opinion of Charles
OConor, III which be holds chat the railroads
of the state, for whose aid the bonds Of
the State were originally issued, are TO
this day liable for the full amount
of bonds and interest unpaid, and that the
State is merely in the position of n default
inc or dishonest trustee. This opinion was
not at first held by large proportion of
the hondholders. The attempttO secure Il sat
isfactory settlement from the State was pressed,
even at the last session of the Legislature, with
ont success. The committee representing the real
bondholdcIs, of which MIR. Eugene Kelly was
chairman. made offers which were far more
liberal than reasonable, but were treated with
contempt and insult. As its ultmatum, the
State proposed to give $50 in new bonds
hearing four per cent interest as a salts
faction for 500 in old bonds bearing
six per cent interest, with some years
interest accumulated and unpaid. This i'm
pudent proposition Mr.. Kelly very naturally
declined to notice. At a meeting of the real
bondholders, held last week, it was resolved
not to accept this proposition, and to unite in
sustaining tho suit against the railroads for
recovery of the money due.
Those who are interested in the railroad
properties are naturally alarmed. They are in
large measure responsible for the nOn-per-
formance of its obligations by the State.
Men of great influence in that State, they
have failed or refused to exert that influence
for the support of its credit Now that
they find their own interests endangered
we see them strongly represented by
the committee now here. This committee.
quite naturally, manifcsts an extraordinary IN
terest in the welfare Of the Tennessee bond
holders. The poor bOndholder for the first
time finds himself treated with great suayity;
he is literally dined and wined, and strongly
pressed TO be generous toward q PROSTATE and
impecunious State. Inasmuch as the actual
bondholder does not assent to any great
extent other gentlemen who are in
.terestcd in the railroads come forward
and play the part of bondholders before the
public and assent very loudly. Meanwhile,
those who are the real holders of a very
large proportion of the bonds Of the State
look upon the movement with considerable
indi1nation. 1t seems to them very like a
tlick 20 induce them to part with q large pro-
norton of their claims for nothing. If they
have, as Mr. Charles O'COnor reports, a valid
claim against the properties of solvent rail-
road companies Of Tennessee, they can col
lect every dollar that is due.