Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-02-26
THE LEGISLATURE
The Investigation Committee Must
Close and Report Results.
Governor Hawkins Submits His
Annual Message.
A Text of That Portion Relating to
the State Debt.
Special dis patch to the Chronicle.

iDdU the llVe6liRatiO1 COkHLuItteO uIo D"
their labors to q close and report the
result.
HoUsE-Senate bill providing for
the enumeration of qualified voters
passed third reading.
House bill to repeal the act OF 1910 70
regulate contracts b. tween employer
and employe, and IT, impose penalty
for the violation thereof, passed third
reading.
The governors message was read in
both houses.
After giving history of the State debt.
the message is as follows:
Up to the time that Tennessee became in
VOWED in this war, bonds to the amuu of
Sl3, SU9, 600 had been issued in aid of the
various railroads in the State, and so far
but few of them had failed to promptly
prOvids for the interests accruing upon the
bonds loaned them, and no doubt was then
felt but that the lien held by the State was
ample security against ultimate loss;
Suddenly however, the cup of pros
perlty was dashed from our lips. the cslsm-
tiles of civil War overwhelmed our etate.
our labor and commerce were broken up,
society Was disorgan zed, armed no Is
trave sed our country, leaving desolatlon
ia their track; our railroads were de-
stroyed, bridges burned, and, in some. in :
stances, the iron cariied off the rolling
stock was removed or destroyed, our peo-
pie were impoverished, and general
wreck and ruin alone remained.
In 1866, as our State began to emerge
from the darkness and horrors which had
so long hung like pail over its fortunes;
ss it came forth crippled, bleeding, and
mourning the loss OF. many of Its strong
supports, the general assembly, looking
around for means to restore our former
prosperity, and to save the State from the
loss of the large investments 1t had made
in loaning its credit to the various railroad
companies, determined to restore the credit
of our State, and to reconstruct and rehabil
itate our roads. In this determination it
but reflected the general desire of the great
body of the people OF the State without
distiu ction of party.
But how was it to be accomplished. In
| terest had accumulated upon our bonds
during the war, and remained unpaid
The railroad companies were utterly una
BILE to provide for the liabilities. The
State itself was without revenues. and Was
again compelled TO resort to its credit in
the money markets of the world. The
good name of our State aided in this emer-
gency. The past due interest was funded,
the honor, faith, and credit of the State be-
ing solemnly pledged for the payment of
prime pal and interest of new bonds issu d
to rebuild our roads. and place them once
| more In condition to aid in building up the
great agricultural, CONNER, Ial, and Indus
trial interests OF the country.
The tunoipg and new bonds issued un-
der this pressing want of the country
s~elled our bonded liability as reported by
the comptroller at January lst 1871, in
ciudI claims of the United States for
rolling stock, msterial, etc., purchased by
the o.ate for the use of the Edgefeld and
Kentucky Railroad Company, aud the
NJ EN- yhis, Clarkaville aud Loui vile Rails
road Com any, and all unpaid interest to
that dat, $37, ,904 097. 80. This sum also
included bonds endorsed by The State for
various railroad companies to The amount
IF Il, liz, ,0C0.
Deduct'ng from the aggregate sum the
| bonds cid by the U ted States Govern
ment before me rLioned. So7l ,O45 As, and
bonds endor ed by the State as before men
| TONED, %, i72,0,O leaves The actual bonded
| debt OF the State at that date, on account
of bonds Issued TO railr"a companies, in.
Guiding interest. s35 C6,, 052 As
The funding act of March l7th, 1873.
authorized the funding of all past due
| bonds and coupons, and for registering all
| bouus not then due. Since the passage of
this act, the debt has be, largely reduced
| By the sale of delinquent roads. under de-
crees of the chancery court at Nashville.
| A 5 the account now stands, including
inte "est to January lst, 1881, it amounts to
S26.3H, $50.
until comparatively recent period the
| moral and legal responsibility of the State
for the payment Of theso bonds, and the
interest there"n, has hot been seri usly
| qu STONED. They were issued in pursu~
ance of he plain provisions of law. They
bore the great seal of the State of Tennes-
| Sc, and the sign manual of her honore /
governors. The various political parties
We'd with each other in form lating posi-
tive and Q "phatic decarauo in favor
maintaining "the faith and credit of the
State" Our public presses AID other or
gans of public opinion in Tennessee gave
expression to the same views. Capitalists
have been induced. by our sacred pledges,
to pay the bonds and by our repeated ac-
knowled cement of their validity, TO invest
their mon y in them. We are in the full
Enjoyment of the blessings contemplated
by III ir issu snce.
They were once regarded as the best
of securities. therefore guardians holding
the funds belonging to their infant wards
were authorized to invest the same in these
securities. Many Of them are to-day
owned by our citizens. Until recently,
perhaps, no insult would have been more
keenly fet by an intelligent citizen of our
State, proud of her good name. than the
insinuation of purpose upon the part oi
the people to repudiate her just OBJ iga-
tions. Although we have paid no interest
upon our public debt, except upon few
! specified bonds, for period of FIVE years.
l yet have confidence in the Integrity oil
tne masses OF the people of Tennessee, and
tnelr willingness to bear all lust burdens to
: the extent OF their ability.
: Inis estlm 4te of The heroism and sense OF
justice ofour people is trongly fortified by
q n fhnI =
general assembly of 1928, while admits
ting our inability for the prompt payment
of the interest past due, and pro, iding for
the funding itinto new bonds, made the
following strong declaration: That the
faith, honor, and credit of the State il
hereby pledged for the prompt payment OF
said bonds at maturity, and for the pro.
vidng sinking fund for that purpose, and
for the prompt payment of interest on said
bonds, as we'll as the interest on the regis
tered bonds hereinafter provided for, COM
mencing with the interest to fall due on the
| 1st day of July, 1874"
Now it must be remembered. that under
this solemn pledge, made with all the
formalites of law by the legislative au-
thority of the State, and approved by the
Governor, the holders Of past due bonds
and coupons surrendered the n and accept~
ed our new obligations, and nearly the
entire bonded debt of the State was placed
upon the basis of this solemn declaration of