Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-02-13
TIE DEBT OF TENNESSEE.
What the EnectOfthe BOndhOId-
ers' Suit Against the Rail-
roads in the United States Su.
preme Court Will BE.


New York World.
A World reporter called, yesterday
upon Mr.. Edward l.. Andrews, one OF
the counsel in the suits pending
against certain railroads in Tennessee
ana now on appeal in Washington al
the instance Of combination oI
bondholders, and asked him the pa
tute and present condition Of the suits
instituted By the committee Of Tennes.
see bondholders,
an 1879" be replied, "Messrs
Eugene Kelly & Co., e. d. Morgan 4
Co.. Peter Geddes and others presecu
ted bills in equity in the United States
Circuit Counts TOR the several districts
of Tennessee. The object of these
suits is to enforce statutory liens,
inspired by the General Assembly Of
Tennessee, on The railroads receiving
aid in State bonds. 1t was always
expected that the questions in
volved would be tried before the
Supreme Court Of the United
States. In the first instance the
cases were presented to a District
Judge, and the bondbolders promptly
appealed to Washington. As it
would require two years TO reach the
causes in the present crowded condi-
ton of the docket a motion to ad-
vance them for hearing at the present
term of the Supreme Court has been
noticed by the bondholders' commit.
tee. These are the same suits in
which Charles 0'Conor gave an opin-
ion referred to by the World some
months ago and we're brought in pur-
suance of his written opinion"
What will be the next step in the
proceedings
"The application to advance is to be
heard on Monday, the 9th OF March,
one Of the regular motion days of the
Supreme Court"
what are the relations of the
suits TO the question Of the settlement
of the State debit"
THE tendency of these litigatiOns
forms an important factor in the finan
cial affairs Of Tennessee There is a
large party, if not the dominant one,
which is opposed to any acceptable
compromise of the State debt until
the final decision upon the issues in
these causes. The State bonds re
ceiyed by the railroad companies Of
Tennessee both before and since the
war form the major portion of her
debt. The railroad companies claim
to have settled with the State by the
purchase at deprecated prices and the
delivery to the State of a quantity Of
her obligations. However, the present
Legislature seems to have objections
to the fnality Of this arrangement, as
the measure which apparently meets
with most favor with it proposes to
pay the State debt proper 10 full and
the issues to railroads at the rate OF
fifty per cent of the principal and
three per cent interest in a new obi.
CATION without security. Indeed, the
journals of the last session OF the Leg
islature contain many protests against
the State paying anything at present
on the bonds issued to railroads.
The position taken by the protest
ants is that it was never intended
that the State should pay anything on
these issues, but that the railroads
should pay them, principal and inter
est. 1t has, therefore, become q con-
dition precedent to any arrangement
of Tennessee's finance that decision,
one way or the other, should be had
upon the liability of the railroad
property for the satisfaction Of this
debt" (
What has become of the tie COM
promise and how will the bonds issued
under it be affected"
THE present Assembly is inimical
to that measure. Should the occasion
arise, it is probable that steps will be
taken to secure the return to the
owners of such Tennessee bonds
issued to railroads as may have been
delivered TO Mr.. Polk and his fellow
funding commissioner in exchange for
the new compromise bonds"
The amount of State bonds issued
to railroads, appears by the circular Of
MessrS: Kelly, Terry and associates,
is as follows:
East Tennessee, Virginia and
Georgia Railroad Company's
system ...,-.,~.......;.....,,...... s s,55o,OOO
Forty two per cent Eccrued in
1.49l. 900
TOtal.....;....;....,.;............,.s 5Oil. 600
Louisville and Nashville Railroad
Company sy.tsm ........-,;,..:.... 8 O.O52, 900
tsisst............~.,...........,...... 2,5H,s $40
TStsl,;-....;;...;....,;;..;;......,; 1855, $40
The Mobile and Ohio Railroad
Company. $4,000
InLLM-LNLn % A.