New-York tribune., 1882-02-14
TENNESSEE BoNDHoLDERS INDIGNANT

The recent decision of the Supreme Court of
Tennessee holding the Funding Act to be unconstitu-
Ona because il makes the coupons receivable for taxes
has excited great Indignation among the holders of the
bonds They declare that the decision is surprise and
wrong and the fact that the tenor Of the decision has
been known for week they simply outrage
The bondboders committee has taken action since the
decision of the court published and the members
SAID yesterday that they did not what there TO
do. Dispatches from NASHVILLE received by the
committee, asking the bOndhOlders TO accept bonds
without the tax provision Some Of the bOndhOlders ex
pressed unwilinness to yield the point because they
could reason, they said, why they should surren
per interest for per cent precisely the
terms
John T. Terry, OF F. D. Morgan & Co., who il member
Of the committee said yesterday: No in Nashville
ont Of it, for that matter doubted that the decision
would be favorable to the boDdhOlders SO great was
the general cOnhdencehat prominent bank in Nashville
recently issued printed circular letters soliciting the
privilege of funding the bonds The decision is unfoN
tunate not alone for the bondhoders but for the State
The point that the State is perfectly able 10 its
debts and knows It. 1t has II 100000 in itstreasury and
this is being increased constantly by receipts from
When this settlement begun five years ago,
the state was poor, but although circumstances have
changed there are just enough in the state to
hide behind propositions for compromise that
had been previously made. 1 not
that the bondholders would not do well TO refuse all
offers OF settlement. and hold their original bonds;
to insist fact upon the payment of principal and in
crest according the letter and spirit the bond We
have struggled for years for the provision making
the coupons receivable for taxes because wanted
some guarantee in consideration of what to
render At first The question of its consti utonaity
arose and submitted TO the best lawyers In Tennes
see, WHO gave opinions that such law would be cOnsi
tutional II Is "A singular unsiance, have been
tuld to-day, that the state Constitution OF
lsG7'69 expressly allowed coupons to be received for
taxes and thai tie railroad companies, desiring TO de-
press bonds which they were buying succeeded in
having the clause repealed. That Is what call OF
coming home roOst. OF course the decision has
been known for a week and probably longer; there Is
no doubt that there has been corruption somewhere.
When the bonds began 10 decline week 10 said
that the free sales de for foreign account That
was merely to conceal the operations OF the
siders."
Thomas " Evans president OF ne Natlonal Mechancs
Banking Association, aud native Of Tennessee, said
that he sorry The dec sion had been unfayOrabe al
though he had questioned the advsabilty o. insisting
upon he fax provision when the Funding Act was be
thc Legislature. He expressed great confidence
that law without the clause could be passed by
q large majority and that the interests of tne bond
holders would he equally safe In reply inquiries he
added " cannot think the court has been corrupted.
bu il is ain that Of the Judge leaked ouly
know OF them-Judge Ewing-lnd when learned
that he would favor the cons u iOnaity of the law
felt certain mat the Court would agree with him. for
esteem him an upright judge. did not II any OF my
bonds and the decision was rs great surprise to Inc
to anyone"
would be to make the STATE Republican. 1t said that
Thousands OF Democrats would vote the Republican
ticket now II only for the purpose OF rebukng the Low
Tax party.