Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1879-05-01

tennessee and Her Creditors.

AOnnCSScc sAhhN AAcE OFetitOFS.
Saturdays New York World con
tains the following communication
To the Editor of the World It i
important that the holders of Ten
nessee bonds should fully understand
the facts in regard to the status of tn,
debt, as well as the situation in thai
State. Under the internal improve.
ment act of 1852 the State reserved
the right in issuing bonds to railroad,
and turnpikes to legislate SO as to pro.
tect herself against loss. For more
than thirty years the State has held
herself primarily liable for the pay-
ment of the debt, and the idea of her
acting in the capacity Of a trustee for
the bondhOlders is the offspring OF the
suits recently inaugdrated AGAINST GER
tain railroads. In the exercise of her
reserved powers as specified in the
original act she has appointed %receiv-
ers when default of interest occurred
and under the same reservation in
1860 she authorized insolvent railroads
to discharge their debts in fall by the
payment Of bonds of the State of any
series or number. Under this act
the solvent railroads have paid dol
lar for dollar of their debt to
the State. The insolvent railroads
have been sold by the decree Of her
courts in suits to which the holders of
bonds were made parties and their
debts paid pro tanto, and their ac-
counts with the State closed. the State
assuming the loss, which was very
heavy. The question of a lien uron
the railroads in favor of the bondhold-
ers thus practically applies to about
$1,000 900, assuming Tennessee couriq
and Tennessee lawyers to be compe-
tent to construe their own laws. Pur-
chasers are also protected in most
instances by the statute Of limitations
by reason Of seven years actual and
%peaceable possession. But if this
were not true, and the bondholders
could get possession Of the inselyent
road, a pro rata upon their actual
value would not pay the bondbolder
more than thirty cents on the dollar
Therefore the practical lien oues-
ton being limited to about one-fourth
Of the bonds, and the unanimous LEGAL
mind of Tennessee, backed by legal
talent equal to any in the United
States, being averse to the asserted
lien in favor of bondholders, there
are some questions it behooyes the
creditors generally to consider.
All the bondholders, whether claim.
ing a lien or not, should desire the
State to fix this basis of settlement r.
as the State credit element of Tenne,,
see unequlvocally assert, it is the best
that will be offered. That would en-.
able those not interested in the lien
question to nut their bonds upon a safe
footing 1t would prevent those
claiming and seeking 10 assist a lien
from sustaining a total loss of their
bonds in the event of unsuccessful
litigation, which they would in all
probability have to sustain with the
powerful railroad interests hostile to
them, as it would certainly be after
tedious and expensive LITIGATION over
the question. From active and poten-
iial friends OF State credit they would
be made more active and potent enc
niles o. the bOndholders. If the lien
should be established it is not improb-
able that the State would insist that
they should take the insolvent rail-
roads and turnpikes and cancel the
entire debt in that way. It would he
sound business discretion for the
bondholder, before he inyokes the
sword Of justice, to provide a%gainet
perishing BY it.
The creditors may all rest assured
that State credit men, who have borne
the brunt Of the fight and taken The
abuse Of repudiationists at home. will
not have their ardor for an honest
settlement increased by having dirt
thrown upon them at this end of the
line because they have not done more
when they declare that more thew
could not do. Friendly relations are
not generally promoted by unjust inn.
putatons and unwarranted criticism
All the creditors will act wisely in
throwing no obstacle in the way Of
those who have stood between them
aud reputation, and permit this ncs-
ton TO be ratified by the people of tha
state. There is necessity for haste
about saying they will not accent 4
Those who wish to do so can have
ample time and opportunity for that
after they see what kind of A law i
passed in completing the settlement
and what provision it makes for the
prompt payment Of the interest.
Captain George Il. Wallace. Of tho
American ship Edward O'Bren. has
been presented with a silver Jug at a
meeting Of the Liverpool Local Mar
inc Board, in Acknowledgement of his
humanity to a ship-wrecked crew.
whom he rescued while voyaging from
Liverpool to Norfolk, Va, on the 10th
of October last. Eight days later
Captain Wallace rescued the CAPTAIN
and crew item in alp of the American
bark Clarence, from New York for
London, which he found in a sinking
state. As Captain Wallace had his
family on board the ship, besides a
full crew and two shipwrecked crews
-ifty-two persons in all-there was
much difficulty in accommodating
them. Captain Wallace also assisted
another vessel and supplied her with
rvafnr