Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1880-09-09
The Truth About the Bonds.
[Clarksville Chronicle !

L
the State debt, we find ourselves
constantly hampered by theprey-
alent ignorance as to the nature
Of what are called the railroad
bonds of the State. Many men
imagine that these bonds were
issued by the railroads and only
endorsed by the State, and that
therefore the railroads owe the
bonds, and not the State. To
correct such erroneous impress
sions, we have thought it best
to print word for word the face
of one Of these bonds which was
purchased at par over twenty
years ago by gentleman, who
is now dead, and which was in
herited by his daughter, who now
owns it. She is now defrauded
of the income, for the payment
of which ''the faith of the State
of Tennessee is irrevocably
pledged" 'i32
UNITED STATES OF AMEHIcA, STATE OF Ten
EEssEE,-No. 49l2. ntt N"hn
Know all men by these presents that the
State Of Tennessee. acknowledges to owe TO
---, or order, one thousand dol
lars, lawful money Of the United States,
which sum the said State promises to pay In
the city of New York on the first day of
January, 1892, with interest at the rate Of
six per cent, per annum, payable semi an
nually, according 10 the tenor, and upon the
presentation of the coupons hereto attached;
for the performance or which The faith of
the State Of Tennessee is hereby irrevoc-
ably pledged, as this bond is issued in pur-
suance and under the provisions OF an act
of the general assembly of said State, pass
ed at its session of 1872. FoE fc 4
In WITNESS WHEREOF !, Andrew johnson,
Governor of said State, have hereunto sign
ed my name, and caused the same 10 be
.countersigned by the Secretary of State, and
the great seal of said State 10 be hereto af-
fixed at Nashville, this first day of Janua-
ry, 1859. ANDREW JOHNSON,
F. N. W. BURTox, Governor.
I.5di c Secretary of State .-s'1i4
One has only to read the above
to see that it is contract be-
tween the State and the holder
Of the bond, with no reference
to any r. r. company whatever.
1t is true that there is separate
contract between the State and
the railroad company that said
company shall pay the interest
on the bond and the capital
when due, but with that con-
tract the holder of the bond has
no concern whatever; the State
and the State alone is bound tol
the bondholder. 1t is also true
that the railroad company be-
came bankrupt as a consequence
of the war, so that that contract
could not be fulfilled by it. It'll
is also true that to indemnify
itself for having to pay the
aforesaid interest and capital, !
the State put in an execution on
the property of said railroad
company and sold it to new
company which was in no way
bound by the contract made byE
the defunct company. In no
way can these transactions be-
tween the State and the railroad
companies affect the validity of
the bond, which is exclusively
Gas shown on the face) trans
action between the State and
the bondholder. lu. -I-'o
Let it be noted that this bond
was signed by Andrew johnson
as Governor of the State. 1t is
an exact copy of every bond is
sued for railroad purposes for a
long course of years, and such.
bonds have been signed by all
the best esteemed Governors of
Tennessee from Polk to Harris.
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