Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-04-10
THE TENNESSEE BONDHOLDERS
Advised by their Executive Committee
TO Decline the Offer Made by the
Legislature of. Fifty Cents
In FOur Per Cent
BOnd-O'COnOr's
Opinion the
Cause

New York Herald, April 9th: The pub
LEGATION OF Charles O'Conor's opinion re-
gardlUg the bonds issued to railroad compa-
MES by the Tennessee Legislature, published
in the Herald on Friday, has produced a
marked effect In financial circles. The bond
holders feel reinforced IN their resentment
of the proposal to give them a meager pit
lance for their due, and it is probable that
very few, if any, of them will accept it. A
member of the Tennessee bondholders' COM
mittee said yesterday that not a single init
nation of willingness to submit to any
thing but the Coe award had been heard.
After reading Charles OConor's opinion,
he remarked, mo one can doubt that
the bondholders have the first lien upon the
railroads. The committee on Friday adopted
the following report, which is addressed to
each of the bondholders:
New YORK, April 4, 1879.
SIR-Your committee respectfully report that, pur-
suant - The resolutions adopted at a meeting OF
November. 1878, they published in the Tennessee
new papers, for some time before the legislature
met In January last renewal of your offer to COM
promise with the State on the terms and conditions
of the Coe award, q: to accept new six per ceLt
and Interest of her outstanding bonds the coupons
for interest on the new bonds TO be payable semi
annually and to be made receivable for all taxes and
dues to the State at their face value after maturity
addition to publishing this offer In the Tennessee
General Roger A. Pryor to Nashville to present the
same to the Legislature. The chairman of your
ceptance. Both gentlemen were well received by the
governor and By members of both houses of the leg
1sature, but your proposition was rejected. Your
committee have since the return home of Mr. Kelly,
their chairman, been in correspondence by mail
the subject of reduction OF the terms Of compro-
mise submitted through General Pryor. Hearing
that bill before the legislature to compromise
the debt fifty cents the dollar in four per cent
bonds, your committee telegraphed to that body
protesting against The assumption that compro-
mise could be effected at fifty cents on the dollar
but express sing the opinion that the bondholders
would modify the Coe award SO that the compromise
bonds therein named should for the nrst four years
draw but four per cent. Such a concession would
have given the State time TO adjust her taxation
which is now and for the past two years has
been but One-teEth Of one per cent Without heed
Ing this suggested concession or the protest or your
Committee against the assumption that settlement
could effected by Tennessee with her creditors at
nifty cents the dollar the legislature passed. and
the governor has approved. bill 10 compromise the
debt at fifty cents on the dollar In bonds bear
Nashville This bill or proposition is first to be
accepted by the bondholderS and atteIWard ratified
pass law to make it effectuaI Your committee re-
cOgnlZe how important IL Is that bonds issued In
tennessee investors For the express pu. pose Of
making such bonds desirable for Tennessee invest
Srs T9 i Is well sn9TG t % 6 nj ,b nov buy the
be largely held at home as sa1e and remunerative
ana ID fS S 6S as
large part OF their claim as forty per cent, your
committee nave urged ana insisted tnat the coupons
! OF compromise bonds shall be made receivable at
their face value for all taxes and dues to the State
stipulated In the C06 award, and also tnat TeHnoS-
Is amply able to pay much more than you offer to
| accept. Your committee, therefore, recommend
that the proposition of the legislature to compro-
mise at fifty cents on the dollar In four per
| cent bonds be not accepted by the bondholders.
/ II offered to the committee 1t will be respect
/ fully declined. In conclusion, the committee beg
leaYe to remind yeu that II Is the opinion OF some Of
the most eminent lawyers in the country among
them Charles OConpT, of this city (whose opinion
to that effect is published 10 the New York Herald OF
this morning., that the bonds of Tennessee issued
In aid of the completion and equipment OF the rail-
| roads under the intsrnal Improvement act OF 1852
| and acts amendatory thereto first lien on the
roads to which they are issued the Internal improve
ment act of 1852 being statutory mortgage on the
| their payment and the payment of Interest upon
| them as the same becomes due.
But, in regard to the statutory llen your COMMITTEES
are considering the best means for Us enforcement
| EUGENE KELLY,
| Chairman OF Committee.
THE RAILROADS AND THE BoNDHoLDERs
Chattanooga Times: "In the New YorR
| Herald of the fourth instant we note ar
elaborate opinion of Charles O'Conor, o.
New York, in which he demonstrates hi
own satisfaction at least-that the railways
of Tennessee are liable as security for about
fifteen million dollars of the outstanding
State bonds and accrued interest. Thii
opinion is that OF the employed and paiC
consulting attorney Of Mr.. G. Amory Ste
vens, who has already begun suits to sublec
the roads to the payment of these bonds
1t is not saying too much to say that Mr.
? O'Conor has forestalled judicial determine
J ton, or that he has won any branch OF ri
lawsuit by trying il IN the newspapers. IL
has no objection to big fees, and he sees
: corpulent wad of greenbacks in pros
ipective if his fifteen million dolla