Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-01-22
THE RAILROADS AND THE
STATE DEBT.

Gov. Marks, in his message,
states that ''the holders of the ante
war bonds, issued to the solvent
railroads, had a lien upon all the
property and its usufruct of the re-
spectiVe roads for the payment of
the bonds That, Notwithstanding
the general opinion of the illegality
of the postwar bonds, the "railroad
companies decided for themselves"
and paid in to the Comptroller these
post war bonds, under the act of
1869-70, selecting "the most obs
jectionable first" He states that
the question of this lien is now
pending in the counts. The Nashville
american is not able to state in
what Court, but admits that the
bondholders will undoubtedly very
soon commence such proceedings,
in view Of the recommendations and
language of the message. And if
such lien be declared binding and
enforced on the railroads, it is evil
dent that great loss must fall upon
those who, depending on the hons
esty and good faith of the State,
have invested in her railroads, but
also to many of our own citizens.
In this connection It is of interest
now to know by whom and to what
extent these post war bonds were
paid in to the Comptroller. Comp
troller Gaines, in his late excellent
report, furnishes tables from which
we gather the following:
To the Hiwassee Railroad, 449 bonds
of 81 900 each. were issued before the
war; of these IA are still out and past
due.
East Tenn. and Georgia. 1854 bonds
of 81 600 each were issued before the
war, of these 1912 are still out and
none yet due, % in addition were re-
newed under acts of 1866 and 1873;
go bonds of 81, coo each were issued to
Ihis road in 1866, of these 100 were
paid in and cancelled, Z are held by
the University and So are still out.
East Tenn. and Virgins, 500 bonds
OF 81 900 each were issued TO this
road before the war, of these ], 0G0 are
still out and not due, 80 were renewed
unGar .afl nf 1GH ord TO E0O of
$1,000 each were issued in 1866 and '67,
or these 43O have been paid in and can
cancelled, 4 are held by the University
and l1O in all, are still out.
ROgeIsville and Jefferson, l59 bonds
OF 81 Goo each were issued before the
war, of these 106 are still out and none
due; 226 of 81 900 each were issued in
'G6 and IS, of these $50 have been paid
IN, 10 are in the hands of the Univer-
sity and 66 in all still out.
Knoxville aud Kentucky, $50 bonds
were Issued To this road before the
war, Of these l0l are still out aud not
due. of them held by the University;
2,l7O bonds of 81 600 each were issued
10 this road in 'G6, 81 and '6S, of these
1902 have been paid in, 466 are still
out, OF which "A are in the hands of
the University.
Cincinnati, C.G. and Charleston, 49,
bonds of 1000 were issued to this
road before the war; OF these, 90 are
still out, and of them 2 belong to the
University. ,241 bonds of 81, 900 were
issued in lS6667 and '6S; of these $50
have been paid in, and 80 are still
out, of which p are held by the Uni
veIsity.
Knoxville and Charleston, 40 bonds
of 81 600 have been issued to this road.
all in 1867 and '6S; of these sos have
been paid in and 155 are still out, of
which Is are held by the University.
East Tennessee aud Western North
Carolina, 400 bonds of 81 900 were
issued to tins road in 1S66-67 and '6S,
OF which 362 have been paid in; So
are still out, of which are in the
hands of the University.
These are all the railroads In
East Tennessee. 1t will be seen,
from the above, that, if the lien is
enforced, as Gov, Marks intimates.
the E. T., Va. and Ga. Railroad is
held for 1000 ante,war bonds the
ROgersville and Jefferson is held
for LOG ante-war bonds; the Knox
vile and Kentucky is held for 101
ante-war bonds the G. c. G. and
Charleston is held for 90 ante-war
bonds. Total, $500 ante-war bonds.
Thus if Gov. Marks plans sue
coed these railroads will be sold to
enforce a lien to the amount of
S2,599,O0O, which will plainly wipe
out every dollar of private stock
now in them and give them that
much additional burden of debt to