The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1879-03-06

cd facts in saying that in nearly every
instance the conditions of the law,
either precedent or subsequent, with
respect to these bonds, were not OBJ
served.
We are directed, in the third place.
bT the Senate resolution, to inquire es
pecially if the great bulk of the pres
ent so-called debt of Tennessee was
not thrown upon the State in violation
If the contract creating, or purporting
TO create, the debt, by the foreclosure
of the mortgage given by railroad and
other companies to secure the State
against the payment of the bonds be-
fore the time specified in the contract
for said foreclosure and sale of the
property upon which the debt was
based. and if il was not by this prem>
ature and forced sale, at a heavy sac
rifice of the property, bound for the
debt, that the debt was thrown upon
the people. We have given this ins
quiry the best thought and investiga-
ton we could, and we are still some>
what at loss how to give specific an
swer. But regarding the inquiry as
directed to the merits of the debt, and
not to the technicalities of its creation
a direct aud truthful response is easily
formulated. The greater part of the
present debt, is the result of vicious
policy and corrupt legislation, super
induced 10y the various corporate bod
les interested in securing aid from the
State.
The immediate law under which t.,
S67 OF the outstanding bonds were is
sued, was the funding act of 1873;
2,246. under the funding act Of 1866;
800, under liquidating act Of 1868;
1888, under the internal improve
ment acts Of 1851 2 and its ante>war
amendments; 2,638, under the act of
1872 and its ante and post war
amendments, and 2,105 State debt
proper under the various acts hereto
fore cited rs authorizing its original
creation. But answering futher and
directly to what we presume was in-
tended to he elected under the third
section of the Senate resolution, We
say that eleven defaulting or delin
quent railroads resold by the State
under the act If 1872. There were
realized from this sale 6,69S, 600,
paid almost entirely in deprecated
bonds and coupons There had been
issued to these eleven roads Sl4 Gas
600 in bonds. Hence there was a loss
of 81 $50, 900 in connection with the
States issuance Of bonds to these roads
/ independent of interest paid and in
terested funded road. When We take
into consideration the amount of pri>
vate, county, or municipal stock ah-
sorbed, or presumably absorbed in the
construction, or in connection with
these roads. in addition to the S14,>
$4,000, advanced b. the State, and
also the positions occupied by and the
combinations of some OF their purchas-
tbs slL lbt N'tdtt II lCuuilCS Il
great deal Of disinterested confidence
to believe that there was no mal>ap>
preparation of the States securities, or
J that there was no interested influences
at work in shaping the loans, and the
conditions Of sale thereunder, which
realized only 6,69S, 900 in greatly
a t.,1 gan,riffaS r., rho
poets Of the question involving the
act of 1869, and the acts of 1870, and
the acts of 1872, ard their relations to
the contract creating or purpOrtiug to
create the debt, and also the legal re-
( lations of the foreclosure of the
mortgage given by railroads and 9th
accompanies t. secure the State against
! the payment of the bonds" to the
contract creating or purporting to ere
ate the debt, your committee deem it
advisable to express no definite legal
opinion; and for the reason that these
matters are now the subject of litiga>
| ton in the Federal courts, between
certain of the bondholders on the one
side and certain railroads ON the other;
and your committee, in its functions
us committee, desires ana presumes
the General Assembly, in its legislative
! capacity, desires to take no side In a
! judicial contest between contestants,
who have heretofore, united, sought
to fix their subject Of contention as a
direct and primary charge upon the
people of Tennessee.
As to the last clause of the section
/ iuquiring IF it was not by this prema-
ture and forced sale at a heavy sacri-
flee of the property bound for the debt,
that the debt was thrown upon the
people" we beg leave to say that, in
our opinion, based upon the evidence,
and correlation of all the legislation
leading up % the forced sale, and the
connection of its subject with other
/ but similar interests, the conditions OF
the sale were secured, and the sale
made Il necessity in order that The
property might be obtained at heavy
sacrifice.
| Fourth, we are directed to inquire
an report what proportion, if any, of
tie bonds of the State were issued and
sold, or either, in violation of the law
authorizing, or purpOrting toauthorlze,
| the issuance OF the same.
To respond to this command, 1t is
essential to refer to the act Of Feb. II, e,
1852, entitled, An act to establish a
system of internal improvements in
this State" For, under this act, and
amendments thereto, of varieus kinds,
all the bonds of the State, popularity
known as loan bonds to railroads,