Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1879-03-13
Tennessee's Debt.
Validity of The Bonds--tlsc Minor
ity Report.

lily AecpOfss
NASHVILLE, March 6.-The
minority report from the Legis-
lative Committee to Investigate
the validity of Tennessee's bond
ed debt was presented to-day by
Senator Clapp, of Memphis. The
report assumes that the liability
of the State upon bonds issued
in her name rests for its decision
on the law and facts Of the case,
as in a controversy between pri-
vate persons. If the Legisla-
ture has not the inherent power
Of making contracts it cannot
communicate such power to its
creatures, private and public cor
porations. The State is the pri-
mary and only party liable for its
bonds. As a legal proposition;
the report cannot understand up
on what ground the State expects
to escape liability as surety or
guatantor on its railroad bonds,
as in the matter of a negotiable
instrument.
As TO funding the war interest
the committee know of no prin-
ciple of international law that.
suspends interest on an interest
bearing debt due by one Of the
belligerents to the other. As to
fraud in the issue of bonds, sup
posing fraud to be established, if
a Legislature pronounce its own
deed invalid, that must be con-
sidered as a mere act of power
which must find its vindication
in train of reasoning not often
heard of i'll the courts Of justice.
The Legislature being the agent
of the people, through whom a
lone they act, its act is the act
Of the people.
Forty witnesses were examined
by the committee, and no proof
sufficient in a court Of justice to
warrant the conviction of a sim
gle member of the Legislature.
in no case does the testimony
show that money or valuable con-
sideration was offered or received
to influence the vote of a mem
Der. The government being per-
petual, while those administering
it change hourly, Tennessee did
not lose its political identity du-
ring the Brownlow regime, the
validity of which has been rec
ognized by Federal and State au-
thorities. The subsequent con-
ditions set up by the majority
committee as an avoidance, could
not affect the validity of bonds
after delivery. AS to post beLtam
| bonds, all the railroad officials to
whom bonds were delivered, swear
that all necessary af1idayits and
vouchers were filed before they
received the bonds.
As to the alleged opinion that
he investigating committee Of
1869-70 were deferred from re-
pudiating any bonds on the
ground Of invalidity from fear CT
reconstruction, the effort made
in the evidence to connect the
holders Of Tennessee bonds with
the movement wholly fails. Nine
years have elapsed, with three
different Governors and Legisla-
lures, all representing the domi-
nant political party, and no eff
fort made to test the validity Of
the bonds. The State has all a
long recognized them by funding
them, and appointing State Di-
rectors Of the Railroad Compa-
MES to which the bonds were is
sued. The State, in foreclosing
her mortgage on delinquent rail
roads, realized over $6,000,000
on roads now shown by the Comp
troller's books to be worth at the
present time, including improve
ments and repairs, not quite s.
100000. If the bonds which
these mortgages were intended
to secure were illegally issued,
or are void, upon what principle
Of law or equity could the State
undertake to foreclose a mort
gage.
The committee in conclusion
recommend, if the State means
to contest the validity of her
bonds, that she have the issue
determined by disinterested
party or one Of her own judicial
tribunals, or without delay ar
range with creditors for settle
ment on terms that can be pro-
posed without dishonor, and as
the condition and resources of