The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1881-03-23
THE GOVERNORS MESSAGE.
Formal Submission of the Bond
holders New Proposition.
Its Acceptance by the General
Assembly Strongly Urged.

EXECUTIVE OFFICE, NASHVILLE
March II, 1881.-Gentlemen Of tn
Senate and House of Representa-
tives: | desire again to call your at
tention to our State debt, and t
urge upon you the great impOrtanc
Of providing promptly for its pay
ment or adjustment, upon sucl
terms and in such manner as may
be alike just to our creditors ant
honorable to the State.
l will not undertake to repea
what is stated upon this subject il
the biennial message which ! haC
the honor to transmit to you under
date of the 24th Of February last
but would most respectfully direc'
your attention thereto.
The principal of the bonded in
debtedness of the State now out
standing is S2O,2O6, 1900; the inter
est past due and remaining unpaid
amounts to S6,336, $50; making in
the aggregate the sum of $26,542,-
$50, and to this, as | understand
may be added a contingent liability
of $755,000 on account of bonds
supposed to have been lost or de-
stroyed.
The interest now past due and un-
paid, has accrued since July l, 1875.
Thus it will be seen that the inter
est annually accruing upon our in
debtedness amounts to something
over 100000.
For the payment Of both principal
and interest, the faith and credit of
the State, have been most sOlemnly
and authoritatively pledged. In the
message before referred to, after de-
claring "that to my mind there can
be no well-founded question as to
the moral and legal obligation of the
State for the ultimate payment of
these bonds. | stated further, Il
am happy to know that under the
misfortunes surrounding us, there
has been, and, | believe there is still,
disposition upon the part Of some
Of the holders of our bonds to ap-
proach an adjustment Of this matter
in a spirit of iberality" | did not
then feel authorized, or at liberty to
suggest any basis of settlement, but
felt that a matter which must be
left first to the voluntary action of
our creditors and secondly to your
practical wisdom and sense of JUS
tice.
| now have the honor to submit
for your consideration voluntary
proposition for the adjustment Of
our Indebtedness, made under date
of March 4, 1881. by a committee of
the holders of our bonds, represent
ing, as l believe, nearly three hun
dred bondholders, residing in the
United States and Europe, and own
ing, as | have assurance, a majority
of the outstanding bonds Of Tennes-
see, which is as follows, to-wit:
"The bonds and interest coupons
thereof, up to and including the
ones due July 1, 1881, to be capital
lied and new compromise bonds Of
the State to be issued therefor, bear
ing date July l, 1881, payable nine
ty-nine years thereafter; but re-
deemable at any time after five
years at the pleasure of the State,
with interest at the rate Of three (3)
per centum per annum, payable
semi-annually, in New York, on the
first days Of January and July in
each year, and the coupons for said
interest on said compromise bonds
to be made receivable at and after
maturity for all taxes and debts due
to the State of Tennessee"
To this proposition there is an
neXed a note of concurrence signed
by a portion of the constituents of
said committee, owning or repre-
senting bonds to the amount of 49,
$4,000, also a statement that others
of their constituents, whose names
are also given, holding or represent
ing bonds to the amount of S2,561,-
600 "have concurred by letter"
making in the aggregate $6,030,0O0,
besides the interest due on that
amount.
The committee state these are
Hsuch Of their constituents as they
have been able to communicate with
on the subject in the limited time
Zone week. at their disposal since
coming to a conclusion among them
selves.
One of my predecessors, to-wit,
Gov James d. Porter, by his mes
sage to the first extra session of the
Fortieth General Assembly of this
State, submitted the recommenda-
tions made by a committee of arbi-
ters appointed at a meeting of citi-
zens held at the clearing house in
the city of New York in January,
1877, after a conference with a COM
mittee appointed by said General
Assembly, which was as follows, to-
wit ::'That after adding the arrears
of interest the aggregate amount of
the State debt should be re-adjusted
by the issue Of new bonds at the
rate Of go per cent. of the total
amount, I. e., for every sum of 81 900
new bonds should be given in ex-
change and full settlement for $500
or for proportionate amounts, the
new bonds to carry 6 per cent, pay
able semi annually in the city of
New York, the principal payable in
thirty years, the interest coupons to
be received by the State for all
taxes" The committee of arbiters,
after having considered the matter
in all its bearings, said the compro-
mise recommended by them was
Gust and fair both to debtor and
creditor Gov. Porter urged its
acceptance, but it was declined by
the General Assembly.
Supposing our present indebted
ness to be S27,000,000, sixty cents
on the dollar will amount to S16.-
100000, and the annual interest
thereon, at the rate of 6 per cent,
would amount to 1912. 900 while