Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-09
The Full Text or the Bill.
A Bill entitled An Act to Settle the Bonded
debtedness OF the State of Tennessee.

The Full Text or the Bill.
Bill entitled An Act to Settle the Bonded In
debtedneSs OF the State of Tennessee.
WHEREAS, A large part of the bonded in-
cebtedness of Tennessee is composed of interest
which accumulated during the war between the
States, when the people were unable and also for
hidden TO pay the same, and under such cireum-
stances as relieved private trustees from the OBJ
legation to pay interest on trust funds; and,
Whereas, This illegal war Interest was under
the forms of law, funded into six per cent bonds
at time when a large majority OF the citizens of
the tate were disfranchtsed and denied any voice
in the administration OF its government, and has
since for many years borne interest upon interest
until now it constitutes about one-third the en-
Whereas, Over seven-eighths OF the indebted
ness claimed against the state of Tennessee con-
sists of money loaned by the State to railroad COM
panies on the faith and credit OF their property
composing what is known to the people OF Ten
nessee the railroad debt" and constituting
an Indebtedness for the payment of which the
railroad companies were primarily liable as prin-
cipal debtors; and
Whereas, A large part of the railroad debt
arose out of the calamities of civil war, whereby
the railroad companies were unable to accumulate
pronts and their property was destroyed or appro-
prlated to the uses of the belligerents; and
Whereas, Another large part of said railroad
debt" accrued to the State by reason of faithless
management in reckleSsly loaning the bonds of
the State without a compliance with the restric-
tons and Limitations enacted for its protection at
a time when majority of the people Of Tennessee
were not peTunLleO 10 nave q voice. IN selecting
their governing agents; and
Whereas, A large part of the bonds loaned by
the State to railroad companies were, contrary to
law sold at less than half their nominal value for
national currency at a time when its purchasing
power was far below that of coin, and the burden
of the State, by of such illegal sale of its
bonds and the depreciation of railroad property
consequent on the depreciation of the currency
was sreatly increased; and
Whereas, No interest, comparatively, has been
paid on the debt since the beginning of the war
between the states, but the principal has been
wrongfully and unlawfully Increased, as herein
stated, while the accrued interest has been COM
pounded from time TO time BIZ funding the same
under various acts into bonds bearing interest at
a rate double that paid by other Stateaand ma
tons in the money centers OF the world, for the
use of capital aud
Whereas, Owing to the constant accumulation
OF the debt and the indispostion of the people to
submit 10 unjust exactions under the forms OF law
the public credit has been impaired, and specula-
tors have thereby been enabled to buy up the
bonds OF the State at less than half their nominal
value; and
Whereas, For the foregoing reasons the conyie-
ton is deeply rooted in the public conscience that
the larger part of the debt is inequitable and
unjust in its consideration, If not Illegal in its OBJ
legation, and the public creditors have for years
conceded the right OF the State to a reduction of
their claims on account OF its undoubted equities
and
Whereas. By reason of the calamities of war.
resulting In the loss OF half OF the material re-
sources of the State, aud TO that extent diminish
ing the sources OF revenue by reason of the imper-
alive necessity growing out OF the war for an in
crease OF taxes for the support of public school
ana Otner purposes, the people OF tennessee have
and Go entertain the conviction that it is their
right and duty to insist upon recognition of
these equities in any settlement that may be made
oil The pubic debt, and that they are Justified
by good morals and the example OF other free
Stat in looking beyond the letter of the bonds
and paying in their satisfaction such an amount
as the demand of justice and good conscience or
sound public policy may require; and
whereas, By reason OF the differences in the
various propositions OF settlement heretofore SUBJ
mitted by the public creditors and the bitter and
acrimonious controversies growing out OF the dis
eussion oil the question, resulting in injury to the
State, it has become the dug Of the people to put
an end to controversy and improbable negolia-
ton by finally fixing and rendering the amou at
they Wall pay; and
Whereas, A large majority OF the people of
Tennessee have given a distinct expression of
their will on this subject, and declared that, on
the bonds held by Mrs. James K. Polk. and ali
bonds held by educational literary and charitable
institutions; that they VIII pay in discharge Of
The estate debt proper in fall less war interest
and that in compromise OF the remainder of the
debt known to them as the RAILROAD debt" they
Will pay one half the principal and accrued inter
est by issuing therefor bonds of the State bearing
interest at the rate OF three per cent per annum.
Now, therefore,
THE BONDS THAT ARE TO BE FUNDED
SECTION /. BE ii enacted By the General AsseBabEy
of the State Of Tennessee, That all of the bonds Of
were duly signed and delivered by the proper
officers OF the State and the coupons belonging
to ne the bonds ns sb the Min
IA
as the Memphis and Little Rock railroad bonds
and their coupons, are authorized to be capital
lied and funded into new bonds OF the State as
hereafter provided
Sec. 2, And be Il further enacted That the bonds
authorized and intended 10 be funded under this
act are the following, and none Others, namely:
The Agricultural Bureau bonds.
The Bank of Tennessee bonds.
The Union Bank bonds.
The Capitol bonds.
The Hermitage bonds.
The Turnpike bonds.
The Railroad hOnds pxPeDtiOp Mineral
and the Memphis and Little Rock railroad bonds.
The certificates held by the educational institu.
tons of Tenngssee.
The bonds issued under an act passed November
%. 1865, commonly known as the funding act of
1866, entitled IAN Act to amend an act entitled
AN act to establish system of internal improve
ments in the State passed February IL, 1852.
The bonds issued under an act commonly known
as the funding act OF 1865, passed September 5,
1858 and entitled AN Act to regulate the State
finances"
The bonds issued under an act commonly known
as the funding act Of 1873, passed Marcn Is, 1873
and entitled IAN Act to fund the past-due bonds
and coupons of the State and to sustain the credit
The bonds issued under an act known as the
funding act OF 1882, passed May 10, 1882, and en-
titled An Act to compromise and fund the bond
Sec 8. Be ii further enacted, That the follow
ing bonds, comprising what is known as the
Estate debt proper" namely:
Capitol bonds.
Union Bank bonds.
Bank of Tennessee bonds.
Agricultural Bureau bonds.
Bonds issued to the following turnpike compa-
MES, namely
Nashville, Murireesboro and shelbyville.
Gallatin
Chambers and Purdy.
Franklin and Columbia.
Columbia Central.
Nashville aud Charlotte.
Fayetteville and Shelbyville.
Pelham and Jasper.
Columbia Pulaski and Llkton.
-Clarksville aud Russellyille.
Forked Deer.
Big HatchIe.
Ga.latin aud Cumberland.
Nolensyille.
Ashp0rt.
Fulton. sz
Lebanon and Sparta.
Nashville and Kentucky.
MuIfreesboro and Manchester.
Lebanon and Nashville,
Jefferson.
Carthage and Huntsville.
Carthage and Rome.
Carthage, Alexandria and Red Sulphur.
Dyersburg and Mississippi.
Bristol and Hendricks Creek.
Rogersville and Little War Gap.
Jacksboro and PoweIPs Valley
Manskers Greek ami Springfield.
Bonds issued for stock in the Hiawassee Railroad
Company.
Bonds Issued for stock in the Lagrange and Mem
phis Railroad Company, prior to the year 1910 and
bearing interest at the rate of five and oneQuarter
per cent.
Bonds issued TO the East Tennessee and Georgia
Railroad Company, and being White bonds.
bearing interest at the rate OF five per cent. may
be funded into new bonds of the State at the rate
of eighty per cent OF the prnc and interest of
said bonds, twenty per cent being deducted on
account of war interest it being the intention of
this act TO pay this portion of the debt in full less
war interest, and when any of the foregoing bonds
coupons, described in this section of the orig
inal issue, are surrendered and delivered up un-
der the provisions of this act, the Funding Board
hereinafter created and provided for shall issue
therefor a new coupon bond or bonds of the State
OF Tennessee, at the rate and for the amount of
eighty per cent. of the principal OF the bond or
bonds surrendered, and eighty per cent of all I'M
paid and matured coupons, includi Ig the coupons
maturing January l, 1883, and where any bonds
have matuTed and the coupons attached thereto
terest shall be computed and allowed on such
bonds at the rate the bonds bore from the ma
turity OF the last coupon up TO January l. 1885,
Just as if coupons were attached, but no interest
shall be computed OF allowed on any coupons
THE FUNDING ACTS OF 1873 AND 1882.
Sec. 4. BE II further enacted, That where any
bond or bonds have been issued under the afore-
said funding set of 1873 for and in renewal of any
of the bonds or coupons of the State debt prouer
as described in section of this act, the Fund
ing Board shall issue therefor, upon the surrender
of such bond or bonds with all the unmatured
coupons thereon, new coupon bond or bonds az
the State OF Tennessee, at the rate and for the
matured coupons thereon, including those matur-
ing January 1855, but none maturing thereafter:
PROVIDED, that before said bonds issued ii shall
be made clearly to appear to the satisfaction al
the funding board that the bonds OF coupons pre-
sented to be funded under this section we e
issued under the said funding act of 1873 for and
in renewal of some OF the bonds or coupons tpeci.
fed in the third section of this act and that they
comprised part OF the State debt proper as desig
mated in said section.
Sec 5. Be z further enacted, That where auv bond
or bonds have been issued under the Aforesaid
funding act of 1852 in renewal of any OF the bond,
or coupons OF the state debt proper, as described
DoAds OF coupons which were issued under me
funding act OF 1873 in renewal of any OF the bonds