Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1880-12-22

the public may have the benefits of it,
and il the contradictory understand
ing between the bondholders and the
people can be explained; l would be
glad to see it. The letter is as follows:
OFFICE OF COMMITTEE
OF TENNESSEE BoNDHoI DKRS,
No. 81 Nassau street, z. o. box $50
New YORK, Dec. Is. 1880.
" d. Meier, Esq MaryUiHe:
DEAR SIR: Your favor OF the Both
ult. has been received and its contents
carefully noted.
You call at.ention to the fact that
in the late circular our committee edo
not refer to any proposition on your
part or the palt of any committee or
holders of the bonds made in 1879 to
accept fifty cents on the dollars al four
per cent Interest," and you ask me to
inform you whether such q PROPOSE
ton was made on the psIt of tae bond
holders" The committee desire me
to say in reply that they never made
such proposition, either at that or
any other time, nor do they know or
believe that such a proposition has
ever been made by any considerable
number Of bona fide bondholders.
A commission of tive Tennessee
gentlemen. appointed by Governor
Marks, after the ADJOURNMENT of
the last session of the legislature came
to New ork for the purpose of ger
suading creditors of the state ID accept
set lement of their claims on that
basis, bat our committee Che only one
authorized to represent the b0ndhQld-
ers) unanimously refused 10 scceIt the
proposition. They refused, not only
on their own behalf, ~ srse investors
in Tennessee bonds, bit also III behalf
OF very large number OF the bona
tide creditors OF the sta'e, by whom
they had been appointed TO "take
such action as may be, IN their judg-
meLt, for the interests Of the bond.
holders, but with the underet lnding
that no settlement less favorable than
the award of the committee of arbilra-
ton be accepted"
The Chattanooga Times enquired Ct
the chairman. Mr.. Eugene Kelly,
whether his committee had accet ted
the 30 per cent proposition.
Mr.. Kelly emphaticaIly replied IN
the negative, and his denial WAS
promptly published ia that paper.
The simple truth OF the matter is,
the mass of the creditors Of the state
did nothing to produce the impression
that a settlement at so cents on the
dollar would be accepted by tlem. On
the contrary, the Committee sent a
protest t. the legislature against the
assumption that settlement could be
effected at so cents on the dollar. The
impression that such sc; tlemeui
could be msde vas produced by the
representatives OF other partier, " no a
that me manifested hardly any cons
Germ wb8tsV for the rights or wis.es
OF the bondholders, and bad the so
per cent. "iniquity u been con
firn;0d by popular suffrage in Tenne8-
sc am quite sure the result would
have sadly disappointed the hopes of
its advOca, e5.
The guests who were SO sumptu0us
ly Ell t,rtained at D-imonico's in 1879
made generous post prandial speeches
in favor Of accep ing that proposition
but il is not believed here that any of
these eloquent gentlenen were bona
fide holders Of Tennessee bonds.
With the exception OF few specuIs-
tors, VINO bought Tennessee houds al
low prices, and possibly a few small
weak holders, frig htened by The fear
Of reputation, we know that the
great body Of creditors have never
been willing to accept fifty It's on
the dollar, even q! six per cant. inter-
est. Perhaps this statement may seem
to conflict with the kilograms accom-
panying Gov. PuIt3E's message 10 the
second extra session Of the legislature
in 1877, IN which Mr.. Stevens, now
treasurer of our commit e, said he
was willing to ACCEPT so and. per
cent and expressed the opinion that
the bOndhOIders would generally con-
cur IN a settlement on that basis. But
a peruaal Of Mr.. Stevens deposition in
regard to this matter, given in the
"a lToad litigation, will convince you
that the proposition 10 settle at so and
6 per cent. like its successor. so and 4
per cent, really enaDated from the
railroads and not the bODdbOIders. /
mail you a marked copy of the depG-
sitiOn referred to, that you may see
for yourself and inform any others
seeking TO understand the origin IF
these propositions, made ott3nsibly 10
the name of the bondholders.
The committee wish me to add that
they appreciate your honest and earn
est endeavors to effect a satisfactory
settlement Of the debt, and they in
dulge the hope that your isbors will
yet be crowned with deserved success.
Should you desire any further infor-
nation, 1 would be pleased to answer
your inquiries.
Yours, very respectfully,
THOS. q. ROBINSON,
Secretary.
Now. in Governor Marks proclama-
ton calling the election for the 9Th
day of August, 1879. he says:
Whereas, by the provisions OF an
act Of the general asse NJ bly,, passed
March 2Sth. 1879, entitled, An act to
set lie the bonded debt of the state," it
is made my duty to submit the PROPOSE
ton of settlement contained in said act
to vote of the people, 1t an election
to be held for that purpose, when the
acceptance OF said proposition by an
equal humber in amount to that rep.
resented in the sixty cents proposition,
submitted to the present general as
sembly, shall have been obtained; and
whereas, it appears that the terms of
said act have been met by the holders
of our securities; now, therefore, I, AL
| bert s. Marks, governor OF the state of