Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-02-14

question oil tennessee ldDllll1 uttIucu W
day. The bill Iiquidating the indebtedness
of the State representing the figure named.
was passed by the Senate on the 9Th OF April,
1881, through Mr.. L. T. Smith, OF Fentress
county, changing his vote in favor OF the
measure. The history OF the debt OF len
nessee is of paramount Interest. In 1857, by
authority Of q general law enacted by the
general assembly, the first bond was issued,
and during the next forty-eight years 648l
bonds, aggregating Sc, All 900 were placed on
the market. OF this number there are now
outstanding 2l05 bonds, OF $1,000 each, to
the payment OF which no opposition has
ever been made by the would-be regulators.
The g, los, 900 is recognized as the
'sTATE DEBT PROPER"
There were issued during the sessions OF
1850 and 1872 under general improvement
laws. 28.251 bonds in the shape OF loans TO
railroads. Under the laws referred to, and
through the aid Of the State, almost the en-
tire system of railroads in Tennessee was
constructed A lien on the roads to secure
the interest was retained by the State, and
the interest was promptly paid till the civil
war commenced. During the four years OF
battle many road-beds were ruined and
vast deal OF rolling stock was removed. Thus
crippled, the roads defaulted in the paymant
of the interest In 1866 4941 bonds were
iEsued to fund interest accruing during the
struggle between the North and South, and
bonds that had matured. Two years later
1900 bonds were issued and were used by the
comptroller in raising money
TO PAY INTEREST AND MATURING BONDS.
Still later, in 1873, 6641 bonds were issued
to fund past-due Indebtedness and matured
bonds. In 1869-70, the general assembly
passed an act permitting the railroads to
iiauidate their Indebtedness in the legally
issued bonds of Tennessee. Bonds greatly
deprecated in value, and the State lost
heavily. In 1870 an investigation into the
validity of the debt was begun, with view
to reputation, but was not carried out In
1872 the general assembly tried to exhaust
the lien of the State in the roads by fore
closing the mortgages and selling them.
Eleven delinquent roads were sold, for which
S6,69S 900 were paid almost entirely in de-
preciated bonds and coupons. BY this sale,
THE STATE LOST S7,950000,
exclusive of interest paid and interest
funded, S14, $4,000 in bonds having been is
sued to these lines. The entire debt consists
of bonds that have been presented, registered
| and renewed, to the amount of so, 81 800;
bonds that have not been presented, regis
tered and renewed, to the amount of $780,,
| 900, and past due interest to the amount of
about Sc O00, 000.. The general assembly, on
| the LIST OF January, 1877 (the day the semi
annual interest, aggregating, 100000, was
| duel, adopted a resolution suspendiDg the
payment OF interest on the debt. A legisla-
tive committee was sent TO New York to con-
fer with the bondhoIders. In ten days the
committee returned and presented a PROPOSE
ton to settle the debt at
SIXTY CENTS, WITH SIX PER CENT. INTEREST
The proposition was rejected. In Deem
Der, 1877, the general assembly met in ex-
ira session to consider compromise on the
basis of 6O-6, the bondholders having for
mally proposed to accept that figure. Three
B shs maSfsf, saiiSlit lss.sssly spent IN mr.
Democratic party adopted platform de Ne
| claring that no settlement should be made
unless submitted to the people, and elected
Albert S. Marks governor on it. The gene
raj assembly of 1879 received from Govern
or Marks a message filled with charges of
fraud and seriously questioning the validity
of nearly the whole debt. A committee was
appointed to inquire into the truth or falsity
of the charges. OF this committee there
were
MAJORITY OF woULD-BE REGULATORS.
The committee, after examining many wit
resses, submitted majority and minority re-
ports. The report of the majority was very
exhaustive and very racy. The gravest
charges were made against many of the most
prominent men in the State, and their exclu-
sive publication in the Banner created much
excitement. Those of the accused who were
living promptly denied the allegations made
against them, and the friends OF those who
were dead quickly came to their defense. In
1879, the general assembly passed bill pro-
viding for the settlement of the debt at
FIFTY CENTS AND FOUR PER CENT. INTEREST
with the provisions that the compromise
should first be accepted by the bondhoIders
and then ratified by popular vote. Soon
after the general assembly adjourned, Gov
ernor Marks proclaimed that bondholders
representing several million dollars had ac-
cepted the terms, and called upon the people
to vote for or against the settlement, on the
9TH of August, 1879. A majority OF $4,000
votes was cast against the compromise, al
though every prominent man and-nearly
every newspaper in the State strongly urged
its acceptance. The Democrats, in 1850,
adopted a platform favoring an immediate
settlement upon the best terms that could be
secured by negotiation with the bondholders.
The would-be repudiators
BoLTED THE CONVENTION
promulgating this platform, and nominated
a full and separate ticket. The result was
that the Republicans elected a governor by
a plurality of thirteen thousand and very
nearly secured a majority of the general
assembly. When the general assembly con-
vened, the proposition TO settle at 1908 was
presented. In the Senate only four out OF |
fifteen Democratic votes were cast in its |
FAVOR. Eight out OF ten Republicans voted |
for it. The would-be repudiators applied to |
the Chancery Court for an injunction re-
straining the Funding Board from Issuing
the new 1908 bonds. The chancellor re- |
fused the application, and they
APPEALED TO THE SUPREME COURT,
hoping that tribunal would declare the law
During the tendency of
the suit in chancery, charges were made by
John j. Vertrees, lawyer, and others be-
longing to the low-tax faction, that Senators
Smith and Barrett had accepted brides to
vote for the bill. Barrett sued Vertrees for
$4,000 for SANDER, but afterward withdrew
the suit. At the extra session OF the gen.
eral assembly last January, held for the pur-
pose OF redistricting the State, Barrett denied
being guilty of the crime charged. Smith
followed in similar strain, and denounced
Vertrees as liar. After the denunciation.
Vertrees attacked Smith in the Maxwell
House, taking him unawares, and shot him
in the shoulder. Vertrees was arrested, fined
IN the city court, and was bound over for
trial by the Criminal Court. The 1908 case
was ably argued before the Supreme Court,
and the decision was awaited with the great
est interest.
WALL STREET TALK.