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

ZIG.
Quite a number of these bonds
were taken up before the war. some
have been taken in ard cancelled since,
and some have been renewed under
the funding acts of 1866 and 1873.
There are still outstanding, by vir-
tue of renewals, funding, ETC.. of the
bonds issued to the Union Bank l25;
of those issued to the Bank Of Ten
nessee, 2l4; of those issued to build
the Capitol, 493; of those issued to
/ purchase the Hermitage. 35; Of those
issued to Agricultural Bureau, IS;
! of those issued to the various turnpike
companies, 72S; of those issued for
stock in Hiawassee Railroad, $50; of
those issued for stock in the Lagrange
e. Memphis Railroad, 6S; and of those
for stock in the f. 7. & Ga. X. r.
IA.
Hence there are outstanding, of all
the bonds ever issued and constituting
debt proper against the State, in
/ the sense Of that term as used before
the war, 2,105, amounting to 81, 105,-
! 600.
The remainder of the 81 ,00S bonds
/ outstanding, to-wit: 1S,903, are bonds
which were issued before and since
/ the wat in aid Of railI Dads, under the
act of Jan. 80, 1850, and the act of
! 1872, known as the General Inter-
nal Improvement Law, and various
subsequent amendments thereto, most
of them enacted since the war. aud
bonds issued under the acts of 1866,
1868 and 1873, to discharge or refund
past due bonds and interest. In Or
der, however, to answer the last clause
/ of the first point, or interrogatory, Of
/ the Senate resolution. as to what part
of the outstanding bonds are post BEL
| lam bonds, it is necessary 20 give a
/ short resume of the issuance of bonds
to railroads, and the operation of the
/ funding acts of 1866. 1868 and 1873,
/ and of the acts Of 1869 and 1870, al
! lowing railroads to retire their lad ebt>
edness. There have beer issued to
railroads before and since the war.
/ 1924 bonds. OF this number S51
~are issued to the Hiawassee and the
e.. grange and Memphis railroads for
state stock therein. Thirty two bonds
were issued ta the Louisville, Cincin-
natl d Charleston railroad, but that
enterprise did not get well into life,
and these 80 bonds were never used
ard we're returned for cancellation.
Hence there were 28,351 bonds issued
in the shape of loans to railroads.
For the payment of the interest and
principal of these bonds the roads
were primarily liable, and the State
only secondarily so, if at all.
OF these Is. 351 bonds, 14,30S were
issued before the war under the In
ternal Improvement law of 1912,
and its ante-war amendments, except
. $50, which were issued to the East
/ Tennessee d Georgia Railroad Com
pary under the act of Jan. 80, 1850,
which is substantially similar to the
act of 1882; and 1898 We're issued
since the war under the act Of 1851 2,
and various acts passed by the Legis
lature since the war amendatory there
of.
There are outstanding of the IA sos
bonds issued before the war, as State
aid, 1888. and of those issued since
! only 1858. There were issued under
the act Of 1856, 4,94 bonds, to fund
interest that accrued upon bonds du-
ring the war and up to the lst Of Jan
1856, and the bonds that had matured
and of these bonds thers are outstand-
ing 2,246.
Under the act of 1868, 2,200 were
issued and used by the Comptroller in
raising money to pay interest and ma
turing bonds. Thus transaction
amounted in substance to funding the
interest and the matured bonds. OF
this series there are outstanding 500.
Under the funding act of 1873, g.
641 bonds were issued to fund past
due interest and maturcd bonds, and
of these 6,641, there are outstanding
1867. Hence, of the outstanding
bonds, 10, 800, that is, $40, ,320, 900,
are post bellrm bonds.
The second question to respond to
in the Senate resolution, is 2. "What
was the nature and extent Of the obli-
cation incurred by the State by issu
ing each class or series of bonds;
whether the State was directly liable
for said bonds, or Was only the endor>
ser on a great part Of the same, or
loaned the same to certain railroads
and other incorporated companies; and
whether the conditions of the States
endorsement or loan of said bonds have
been complied with? ~
In reply, we beg to say. "that the
q ,O0S bonds outstanding, lS,903 are
bonds issued to railroads; bonds issued
under the funding act of 1866; bonds
issued onder the liquidaling act of
1868, and bonds issued under the
funding act of 1873; and of this Is,
903 bonds IL, ,221 were issued to rail,
roads under the internal improvement
law of 1912, and amendments there
to, as before stated. and were prima-
ry charge upon the roads; aud if 4
charge at all, against the State, were
so only secondarily. 1t is to be OBJ
served that we are directing our an
swer 10 the second inquiry upon the
assumption that it, as did the first,
addresses itself to outstanding bonds.
The laws under which these II, ,22l
| l.. 4. ....... .....l ,.oo,,i.oI nortni-,