Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-03-04

e reserves. The committee are Of the OPT
: ion that neither this nor any other Il
, esTUpS inc assertion OF the rights anu eqt
ties of the people against any part OFT
f debt. In response to the fourth commar
Of, the Senate resolution, we say that WI
: scarcely single exception, the II ,22l on
standing bonds amounting 10 $ll,22l,OO
issued before and since the war, under ii
act of 1852 aforesaid, and its amendment
as aids Hereunder to railroads, were Il
sued or sold, or both in violation of il
conditions and restrictions. Hence the
payment. settlement, or adjustment rest
or should do so, not upon the assumptio
Of their legally authorized contract valid
ty, nor upon any ethical sanction, but upo
| the determination and conclusion of a wis
State policy. This, observing present re
lations and their antecedents and properl
torecasting the future, will adopt with re
ference to them that which is mos
equitable and for the best public welfare
| With respect to the 2,246 outstanding bond
| OF the series issued under the act of 1861
to fund interest accruing during the war
| your committee have no hesitation III say
ing that they were authorized by al
act passed when passion and demoraliza
ton were prevalent; when the voice anC
will of the people of the State were IN
heard and unheeded in her council halls
and that It's enactment was the result either
OF a mistake of law, or criminal ignorance,
or still more criminal disregard of the
rights and welfare of a PROSTATE and
disfranchised people.
As to the 1867 bonds outstanding OF
those issued under the funding act of 1873,
quite the larger number of them embrace
either directly or through the result Of leg
lslatl7e transmutatIOn or substitution the
Interest or the principal of the bonds here
lnbeiore specified, as having been issued to
railroads under the act of 1852 and its
amendments, and of those issued under the
funding act of 1866, and the liquidating act
Of 1868. 1t is impossible to identify the
exact bond or bonds outstanding of those
issued under the funding act of 1866, or
the funding act of 1873, into which inter
est on railroad bonds accruing during the
war, or since 1866, entered, from the fact
that until the present Comptroller and Sec
rotary of State came into Office, no account
showing it was kept. A reasonably accd-
rate estimate of the amount of interest on
the railroad bonds issued before the war,
funded in 1866, and compounded in 1868,
and recompounded in 1873. could be made,
but it would require length Of labor and
time which were not at the command of your
The sameI jftrue concerning the
interest on postwar railroad bonds,
funded under the the act of 1873. 1t
would also be possible, by more extended
research and labor, to approximate
the amount Of the outstanding
debt, principal and interest, which as a
present direct burden upon the State is
directly attributable, with respect to its
immediate legal creation, to the act of 1866,
he act of 1868, and the act ofl873.
The committee having answered as to
he special questions of the Senate resolu-
ions, as fully as they were able to
10, in the time in which it was deemed |
proper to devote to it, in view Of the desire |
If the Assembly to have report, will I'M
Ter the general tenor of the two resolutions, |
,all the attention Representatives to GER
ain matters worthy Of their consideration.
The State, under the act Of 1886, is
ued ITO bonds amounting to $lI6,2j0 for
his amount of stock in the Lagrange and |
Memphis Railroad. Afterwards, and under
he act of 1888, ninety more bonds,
to $9l ,250, were issued for
State stock in said road. These two sums
make $2O7, 500 stock in it be-
onging to the State. What has
,ecome of this stock is not
definitely known. The Memphis and
Charleston railroad was incorporated by an
ct passed Feb. 2, 1916 and, as your com
nittee learn, this road absorbed the La
range & Memphis. The 4lst section of
ne act Incorporating the Memphis &
charleston road in It's provisions, refers to
ne transfer of the stock in the Lagrange &
Iemphis to the Memphis & Charleston. 1t
claimed that the Memphis & Charleston
as accounted and settled for this stock.
tut your committee have been able to find
0 record evidence in the archives of the
tate as to when, how and upon what basis
did so. And we would suggest that the
roper State officer be directed to institute
earch for this interest and if found unac-
)unted for make it realize fer the State all
lat properly and legally belongs to it.
The State also, under the act Of 1888,
ok 800 900 stock in the Hiwassee rail. I
ad and issued its bonds therefor. The
asst Tennessee & Georgia road was char
red and the Hiwassee road after receiving
70 stock bonds from the State became the
,operty or was converted into the East
ennessee q Georgia, the latter road receiv- {
g the 202 remaining stock bonds author {
ed to be issued to the Hiwassee and
Freeing for the State to have $65l 900 in
instead of the Hiwassee.
Four hundred and twenty-five thou
md dollars of the principal of this
ock of the State has been disposed of,
will be hereafter detailed. Whether I
lie remaining 1927 600 has been le-
lily accounted for is not known TO $
our committee. In this connection |
our com miltee would call attention to G
e following foot note to page Is OF :
0mptroller Black burns report for e
SO. felriug TO the East Tennessee /
Id Georgia road, he says: L
" The stock owned by the State in
is railroad is reduced from $3.50, 900 [
1925 900, as above, by the act of May /
Ock for the benefit of certain turn '
Ike com panies, retaining lien on
me. The names of these turn pike q
aned each, will be found under the v
lad Of Bonds loaned turnpike COM l
.nies' The East Tennessee and 0
eorgia road asserts that the original z
ock in said ROAD was scaled down so |
at the State Interest was reduced .
WI from $3.50 900 10 1925, 900, bat the o
ate having issued her bonds for Ii
SO, 600 and no portion of them v
wing been returned or cancelled, the u
owe charge is made to balance the t
nd account. although the claim may Il
aU0rth 'eSs" g