Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-08-31
THE ANTI-BATE TRIO
The GubernatOrial Canvass Opened at
Bristol by Hawkins, Beasley and
,Fussell.
4 Review of the State Debt from the
Boilers Standpoint as Set Forth
by Their Leader.


| might have been by a good deal, and tn
Bate men are in no wise alarmed, but rathe
encouraged by the demonstration. Hawkins
as head Of the trinity, opened, followed b,
his right bower, Beasley, while the LEI
bower, RUSSELL, brought up the rear. Tn
team worked together very nicely for tn
first public trial, and played into each other
hands like professionals. OF course they oc
cssionslly made mistakes, but all thai crude
ne-s will wear off in time. Right here you
correspondent would suggest to these gentle
men that it would perhaps be better for thei
cause If they could occasionally get up
little Misunderstanding between them, as thu
people naturally become suspicious wher
hey show up their hands 20 plainly. Now
as to the speeches. Neither Hawkins mol
Beasley said anything that was particularly
noticeable, their speeches being merely re
iteration of what they have said elsewhere
IN the State, your section included. Fassel
was, of course, the star of the evening, anC
therefore 1 will devote myself TO him
The gentleman, after going through tbs
usual preliminsries, wsrmed himself up fol
about fifteen or twenty minutes on national
politics, the woes of American citizens in Brit
ish, prisons and other kindred subjects, com
monty denomiusted "the topics of the day,
proceeded TO demolish Bate, toady to Hawk
ins, fraternize with Beasley, and show Ito hil
own satisfaction) that he (FusselD was the
new Moses sent tolead the Democratic hosts
from the Egyptian wilderness of ignorance
darkness and defeat to the bright canaan OF
prosperity and success. Ii was grand; 1t was
soul-stirring; and as he warmed with his
subject, and wiped the psrspiration from his
Olympian brow, it was sight 10 make glad
the heart of God and man. 1t may have
gained him one or two votes, but doubt it.
The State debt, the real question at issue,
was finally reached, and he delivered himself
as follows:
In entering upon the discussion of the
Questions that to-day agitste the public
mind, the first which probably demands our
attention is the question of the bonded in
debtedness of the State. While there is no
reason, moral nor legal, why any certain
amount of the State deDt should be held and
denominated estate debt proper" in contra
distinction 10 other OF her obligations, yet,
as such a discrimination has been made, and
the question is to-day presented, we will
adopt the term in discussion, in order to ar
rive at a clear and distinct solution of what
is generally termed vexed problem. 1t is
not my purpose, indeed | do not deem it
necessary to discuss the State debt at length.
One of my competitors, Governor Hawkins,
agrees with me that the settlement enacted
by the last Legislature shall stand and be
carried out in good faith. Another of my
competitors, General w. B. Bate, is opposed
to the present settlement, aud is in favor of
reopeniug the question and submitting in its
stead another settlement, paying what he
calls the State debt proper in full, and pay
ing on what he calls the railroad debt fifty
per cent. of the principal with three per cent.
interest. am in favor Of accepting the settle
ment because il Is settlement agreed on by
the Legislature and by the creditors of the
State; because it makes no unjust discrim-
ination in the different classes OF debt, but
treats all creditors alike. The humble and
the most distinguished fare alike So far as
the amount is concerned, the settlement pro-
posed by my competitor, Genersl Bate, is
more than the legislative settlement. The
State debt proper is IN round numbers S.
100000, and the railroad debt $40, 900, 900,
fifty per cent. of which is Sl0,000,000, max
ing in all Sl8,000,000. The amount under
the legislative settlement is $l6,800,0 900, or
sixty per cent. of S2S,O0O,00O. But even If
the settlement proposed by General Bate be
what he himself states it'd 100000 to be
paid in fnIl--it leaves $4,000, 900, or the
half OF S24 ,000, 600, railrosd debt at three per
cent, making IN all 81 600 900, with $500, 900
annual interest. The annual interest on the
legislative settlement is $500, 900 for the first
two years, 1872 600 for the next two years and
S840, 900 for the fifth year. At the expiration
may be paid, and then, il we have paid
that we can pay off our Indebtedness in
three per cent bonds. In right, justice and
honesty the settlement advocated by me ex-
ceeds the other as far as that exceeds it in
dollars, and infinitely more. The legislative
enactment is q settlement; the Readjusters'
is mere proposition. The State could have
settled the debt, with the consent of the cred
itors, at $12,000,000, and now General Bates
party proposes to pay S15,009,000, according
to their own showing, and $l3,000,000 ac-
cording to legislative settlement. How i'm
p1rtant, then, that this question be not re-
opened.
In the thirty years we would pay under
the present settlement SIG 500, 900 of princi-
pal and of interest-$504, GOO per ann Inn for
two years, S672,000 per snnum for the next
two years and $4,000 for the fifth year, and
1904, 900 per anuum for the remaining
twenty-five years, making a grand total of
s32, 592 600. General Bate would pay as
Estimating the State dent proper at
IS, 900 and the scaled at debt at $40 ,00O,-
900, he would pay in principal $1s,00O,000.
for refunding the State debt proper
at the end of five years at three per cent, he
would pay in interest three per cent on So
100000 for thirty years, equalipg S9,000,000;
six per cent. on SS,000,000 for five years,
i, 400, 900, ard three per cent. on same SUN
Tor twenty live years, making Sc J000 900,
thus making a grand total of So, 900 600,
making a difference of $2,S08 900 in favor of
the present settlement.
=
Under act of February IL, 1852, and acts
amendatory thereof, it was intended to per-
init the railroad companies indebted TO the
State to pay off the bonds with accrued in
terest, before maturity, in whole or ia part,
and permitting this to be accomplished by
paying to the State any of its own six per
cent. bonds, regardless Of series or number.
The solvent railroads under provisions of
this act paid on final settlement 10 the State,
including the war interest, $14, SOS ,322 25,
and as before stated the State never lost one
cent by these solvent railroads, not even war
interest. Now, for few moments, let US see
as 10 the delinquent railroads. First is the
act OF July 1, 1870, reciting the act OF De-
cember z, 1857, giving to the governor, secre-
tary OF state, and comptroller the authority,
at their discretion, to sell any of the roads
mentioned in the act, should any of said
roads for two consecutive years fail to pay
the interest on the bonds loaned them. 1t
also provided that the above named State
officers, with Robert J. Mckinney, Francis
B. Fogg and Archibald Wright, should be
to sell such railroads or the
States interest in such OF these roads as had
failed as aforesaid; and said commis-
sieners had full power and authority
TO mske and perfect said sales. The
bids might be discharged and satisfied by
equal amounts of che bonds OF the State
with accrued interest, legally issued by the
State in aid Of said railroad companies or
for any other purpose. At special term of
the Chancery Court at Nashville, appointed
March 4, 1871, the final decree was made.
Eleven delinquent roads were sold under
these judicial proceedings by virtue OF an
act of 1870. The net proceeds of these sales
were Sc, 69S, 600. The amount of indebted
ness OF the railroads was SIS, 593 O29 IL, be-
iDg loss of Sl2,S95, 029 u. The State, as I
have before said, did nos lose cent on the
solvent roaos. The SI2, 895,029 u, with in
terest, will be the entire loss of The Stale on
1000 miles of railroad, which cost $4,000
per mile to build, gave to the State $50 .0OO,-
900 increase in taxable property. But for
this the State must have paid interest on
over S19,000,000. which was reduced, OF
course, by the amount of sales. The tax
ables of the State were thereby enhanced
$3.50, 100000. The States taxable value has
been increased threefoId. And these rail-
roads are taxed their proporJionate parts
necessary TO run the government. Let usfcon-
slider more in detail the benefits which have
resulted to- the State. The year 1916
begins the railroad era in Tennessee. From
1886 to 1874, before the railroad system, we
find decrease in the aggregate value of
lands, slaves, town lois, ETC., 10 the amount of
s., 667 OILS, and from 1912 10 1874 decrease
OF 1857 ISL. Without going into minute
statement of the increase of the value of
property in the State, attributable to
The influence and because of the exist
ence of railroads, We will notice the fact