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

DOuu Va bObbo OdbcNttAftAAAiE Va AtiNfcN Ac-
sued under the funding act of 1866,
or the funding act of 1873, into
which interest ON railroad bonds ac-
cruing during the war, or since 1866,
entered, from the fact that until the
present Comptroller and Secretary of
State rame into office, no account
showing it was kept. A reasonably
accurate estimate of the amount Of
interest on the railroad bonds issued
before the war, funded in 1866, and
compounded in 1868, and recompound-
ed in 1873, could be made, but it
would require length of labor and
time which were not at the command
of your committee. The same is true
concerning the interest on postwar
railroad bonds, funded under the act
of 1873. 1t would also be possible,
by a more extended research and la
Dor, to approximate the amount of the
outstanding debt, principal and inter-
est, which as present direct burden
upon the State, is directly attributa>
ble, with respect to its immediate le-
gal creation, to the act of 1866, the
act of 1868, and the act Of 1873.
The State. under the act of 1856,
issued 110 bonds amounting to Sl16,-
$50 for this amount OF stock in the
Lagrange & Memphis railroad. Af>
terWards, and ugder the net Of 1888,
ninety more bonds amounting to S9l,-
$50, were issued for State stock in
said road. These two sums aggregat-
ed make S207, 800 stock in it belong
ing to the State. What has become
of this stock is not definitely known.
The Memphis and Charleston railroad
was incorporated by an act passed Feb.
2, 1916, and, as your committee learn,
this road absorbed the Lagrange &
Memphis. The 41st section of the act
Incorporating the Memphis & Charles
ton road in its provisions, refers to the
/ transfer of the State stock in the La
grange and Memphis to the Memphis
] Il Charleston. 1t is claimed that the
Memphis and Charleston has account
ed and settled for this stock But
your committee have been able to
| find no record evidence in the arch-
I ives of the State as to when, how
and upon what basis it did So. And
we would suggest that the proper
| State officer he directed to institute
search for this interest and if found
unaccOunted for, make it realize for
! the State all that properly and legally
/ belongs to it.
/ The State also, under the act of
/ 1888, took S651 900 stock in the Hi
awasse railroad and issued its bonds
therefor. The East Tennessee q
! Georgia road was chartered and the
Hiawasse road after receiving 449
stock bonds from the State became the
property or was converted into the
East Tennessee Il Georgia, the latter
road receiving the 2U2 remaining
stock bonds authorized to be issued to
! the Hiawasse and agreeing for the
State to have SOL 900 in it instead
! of the Hiawasse.
/ Four hundred and twenty-five thou
sand dollars Of the principal of this
stock Of the state hts been disposed
of, as will be hereafter detailed
Whether the remaining 1926, 900 has
been legally accounted for is not
known to your committee. In this
connection your committee would call
attention to the following foot note
to page of Comptroller Blackburn's
report for 1869. Referring to the
East Tennessee d Georgia road, he
says:
"The stock owned by the State in
this railroad is reduced from $3.50, 900
to 1925, 900 as above by the act of
May "a, 1866, appropriating s425,-
900 of said stock for the benefit Of
certain turnpike companies, retaining
a lien on same. The names of these
turnpike companies. with the amount
loaned each, will be found under the
head of Bonds loaned turnpike COM
panies.' The East Tennessee& GeOr-
/ gia road asserts that the original stock
/ in said road was scaled down so that
the State interest was reduced down
from S650,000 to S425,0 but the
State having issued her bonds for
$3.50, 900 and no portion OF them hav-
ing been returned or cancelled, the
above charge is made to balance the
bond account, although the claim
may be worthless.
Your committee have been able to
find but one obscure act, that Of Feb.
+, 1S48, sections 3 and 6, authorizing
the sealing" of the stock in the East
Tennessee d Georgia road. But what
action was taken Hereunder, by whom,
when, who represented the State, and
what method or basis Of action was
adopted, we have been unable to find
out. While all the stock Of the State
in this road may have been fully ac-
counted for, still, in view Of all the
facts, we suggest that the proper State
officer be directed to look into the
matter, and, if the States rights have
not been fully, fairly and honestly re-
spected, assert tEem.
Your committee cannot close this
report without calling attention to the
startling results of the States connec.
Iion with internal improvements and
corporations. The facts of the situa.
ton in this case, independent Of the
testimony, show all along the line, a
disposition on the part OF many cor
porations to evade the strict provisions
of the law designed to protect the
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