Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1880-09-13

terest thereon to that date, shall be
passed directly to the credit Of the
party having SO paid the same, and be
a release TO the said party for that
amount on the debt due by them TO
the state Of Tennessee.
Sec. 2. Said bonds shall all be can
celled by said commissioner, aud If
endorsed bonds Of any railroad com-
pany shall be cancelled as hereinafter
provided for the cancellation of state
bonds, and shall be delivered over to
said company or corporation, taking
the presidents of said company,Or the
officers of said company, receipt for
the same, which receipt shall be filed,
and a copy Of the same placed upon a
book, which the said commissioner
shall keep for hat purpose; if state
bonds they shall be cancelled and filed
in the office of the secretary of state,
as hereinafter provided.
Sec. 3. That after the first day OF
January, 1860, all railroad companies
or city corporations, who have or may
hereafter receive the bonds OF the
state, or its endorsement of their own
bonds under the general internal i'm
provement law of this state, OF any
other law, shall be required to pay
two and one-half per cent per annum
as a sinking fund, on the amount OF
the bonds so issued or Endorsed by the
state for said company or corporation,
TO bepaid in equal installments oil the
first days of April and October, five
years after the date Of said bonds and
annually thereafter,
Sec. 4. All bonds issued during any
one year shall be dated on the first
day of January Of that year.
See. B. Said companies or corpora
lions maypays said sinkingfund in cash,
or in the like character of bonds hat
may have been issued or Endorsed by
the state for SAID company at their
face or par value.
Sec. 6. If paid in money the com
missioner shall invest it Immediately
in the bonds of the state, and shall
have the same cancelled and fled, as
heretofore provided. Such bonds are
to be of the same character as those
issued to such company or corpora
ton.
Sec. I. The sinking fund, when
paid, in all cases, shall be passed d.
rectly to the credit of said company
or corporation, and be a release to
said company or corporation from that
amount due by them to the state. The
commissioner shall issue q receipt to
each company or corporation for such
payment, retaining a duplicate in a
we'll bound book kept for that pur-
pose.
Sec. s. Each and every railroad
company or city corporation shall pro-
vide the interest semi annually, as
now provided by law, on the amount
of bonds unpaid at the time said in
terest falls due, and not on the origin
al amount issued to or indorsed by
the state for said company, as hereto.
fore provided.
Sec. 8. The commissioner of the
state shall keep a regular account
against each company or corporation,
charging them with the amount Of
bonds originally issued or Endorsed for
said company or corporation by the
state, and creditiug them for the
amount of sinking fund paid, and
shall furnish the treasurer Of the
state a statement of the amount due
by each company or corporation on
the first Of June and December of
each year, hat he may know how
much interest each company or cor
poration has to pay.
Sec. 10. The commissioners Of the
sinking fund shall cancel all bonds Of
the state as soon as paid in, OF pur-
chased, by cutting out the governors
and secretary of states names, and so
defacing each coupon that it cannot
by possibility be used or circulated,
and shall file the same in the score
tary of states Office.
IL. This law shall be in full force
from and after its passage, and shall
repeal all laws in conflict with it, but
shall not be so construed as otherwise
to affect any law on the subject of the
sinking fund, or the payment of in
terest due on state or Endorsed bonds.
Passed March 20, 1860.
Now, let US ask, if the railroads
we're not primarily liable for the bonds
issued to them, why require them to
pay q per cent per annum to the state
for the bondhOlders2 To illustrate
this sinking fund principle, we quote
from the brief Of the attorneys Of the
bondholders, showing how much, of
the original debt could be retired at
one per cent per annum. And our
readers must remember that in the
original act of 1852 only one per cent
was to be set aside for the sinking
fund, but this was increased in 1860 to
q per cent. If one per cent per an.
mum would discharge the debt in 33
years and two months, q per cent
would discharge it in less than half
that number of years. Hence if the
law had been complied with all the
bonds now unpaid would be Cancelled,
and neither the state nor railroads be
troubled with them. Inasmuch as
the holders of the bonds refuse to
accept the compromise, but insist on
sueing the railroads, let them abide
by the result of the suit. But the
people should not force a compromise
| IN most unwilling nrndiinra