Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-02-09


sccumulated-that is, between April Ia.
1851, and May 26, 1865-ought not to b
paid By the people of Tennessee. Neverthe-
less, this interest was funded under the set
of 1865, and in part refunded iu 1S7aess.
gether with portion of the Just debt of the
State 1t ought, also, TO be stated that the
ante beLfum railroad debt was created at D
time when the people of the State possessed
nearly twice as much property a. they now
do 1.-THE loss having been caused by the warl,
although nearly twenty years of peace have
interviewed.
SOME OF THE EQUITIES OF THE STATE.
II will be remembered, as before stated,
the post-bellum railroad debt was contracted
at time when numbers of the best citizens
and largest taxpayers Of Tennessee were ar
bitrarily and wrongfully deprived of q voice
in the conduct Of public affairs; and, as has
been heretofore suggested, this hiatus, or al
least irregularity, in our State government
was known to the purchasers of our bonds,
who, because of this irregulariiy in State
government, at the time of issuance and sale
of large part of these bonds, bought them
at greatly reduced prices. and paid for them
in the then cheap greenbacks. Without at
tempting TO detail the evidence of previous
investigations, it may be stated that many
of these bonds were issued wrongfully and in
violation of law. Further, the Impoverished
condition OF Tennessee was a fact to be consid-
cred in dealing with our public debt. No
Southern State has been so much devastated
and impoverished by the war. The credi-
tors themselves realized this to be true,
when, in 1877, . large portion Of them,
claiming TO be majority, profered to ac-
cept settlement at sixty cents on the dol
lar, stating that when all the circumstances
under which the debt was incurred, and
peculiar condition of affairs in the State,
together with its present ability and future
resources we're considered, il was Just, alike
to creditor and debtor. How can such credi.
tors now complain OF proposition made by
the taxpayers growing out of the same facts
as those conceded to exist BY the bondhold:
ers? On this ground in part the govern-
ment OF the United States, as it ought 10
have done, abated large portion of its
claims against Southern railroads, and did
it under the advice of letters from Gov.
Brownlow, Hon. Horace Maynard, and
other national characters. This devastation
of war, this usurpation and misrule OF
Slate government by irresponsible parties,
Immediately following the war; the tardy
effort and failure to fully recuperate from it,
as we'll as the doubtful authority OF those
ephemeral State governments BY which
bonds were recklessly legislated into exist
ence, and as recklessly put into circulation,
has been recognized and acted upon by the
holders of securities of other Southern
States, as q just and equitable reason for au
abatement in the amount OF debt; and while
some have settled for much less, / doubt il
any Southern State has settled this class Of
Indebtedness upon terms more liberal TO the
holders of her bonds than the terms pro.
posed by Tennessee. IHdeed, according tc
statistics shown in Porter's Public Indebtedness
published last year by act of Congress, nc
Southern State has paid, or agreed to pay, &C
much on the dollar as Tennessee-with but
one or two exceptions.
THE TERMS OF THE FIFTY-AND-THREE SET
ELEMENT.
Upon the other hand, there were thos,
who believed the entire bonded debt to be Z
valid obligation on the State, and that Ten
nessee was abuniantly able to pay the same
| The sincerity with which large masses o.
1 our countrymen have maintained their views
and the pertenacity and bitterness with
| which they have contended, have resulted
| unfortunately to the creditors and disas
trously to the State. The just debt remains
l unpaid, while the volume of bonded deb
disputed and 10 be adjusted has steadily in
creased. The people, realizing that th.
| opinions OF rival factions were sincere anc
fixed, and that the interest of the creditor
and the welfare OF the State demanded
de6nitive settlement upon some terms, re
| solved upon basic, and have declared il il
the most authoritative and unmistakab
terms. Accordingly, in my opinion, i
| only remains to carry the settlement int,
effect. A settlement which is not based upor
the peoples consent, is only settlement, so
| called. But one in accord with their viii
and desire, as it has been most firmly ex
pressed, will permanently endure, and thus
not only be fruitful TO the creditors, bu
bring repose to the State, as like causes can
not again occur to disturb the relation o
confidence between them. Accordingly,
suggest settlement upon the following
terms: The payment OF the State debt prope
in full, less war interest, in bonds runninl
- years, same interest per annum tina
the original bond called for. and those hell
in good faith, as hereinafter explained, b,
education and charitable institutions, ant
| the twenty-nine bonds of the widow o
President james K. Polk, be settled in lik
manner; and in view of the fact of tn
/ gradual decrease in the rate of interest OF
all public securities, I suggest that all six
five and Eve and one-fourth per cent. bond
be payable in as short period a
practicable. also suggest that tn
remainder, or contingent debt" b,
settled at fifty cents on the dollar, principa
and interest (including war interesD o.
bonds to run for thirty years before due, wit
privilege of earlier redemption, and TO bea
interest al the rate of three per cent. per ar
mum. As a necessary sequel to this, it
further suggested that your honorable body
in order TO carry out in good faith the term
of the settlement, provide for such means a
may be necessary 10 promptly meet the in
terest as it accrues upon the bonds so issued
and as this alone can be done by the lev
and collection OF taxes, you are invoked I
act with clear understanding of our situa
ton, and with all possible economy. 1t is
that for reasons interviewer with the hister
of our country, the twenty.nine bonds OF M
J | Polk have been since 1875 made an e.
ception of, and six per cent on them has bee
paid annually by the legislative votes an
| approvals Of executives OF all parties. TIL
| encouragement of education has always bee
the policy of the people OF Tennessee, an
should strengthen as We advance in progre
and increase in population. Over $4,000
| of bonds 1.-THE exact amount as well as tt
! holders of the same are easily ascertainec
! are held by educational and charitable il
situations Of Tennessee. With view to ell
| couraging as far as possible such institution
1 understand it to be the desire of the pc,
pie of Tennessee to pay such bonds as al
held by them in full, regardless of the ella
Of bonds 10 which the same may
3 long. Believing it encouraging TO the eau
| of education, and carrying out the will
the people in regard thereto, 1 suggest &
0 heretofore in this) that such bonds be funde
| in full, in interest-bearing bonds of san
rate as those they substituted. But to gusl
against impoeitions date in the past ant
| rior to that at which this distinction
dealing with bonds was made, should be fix,
| upon to ascertain the institutions that sha
be considered holders of the bonds and ben
: iciaries of this exception.
, | TAXATION AND THE sEAL-MINERAL HON
|, The governor also urges that the Sta
shall return the $4,000 paid for the S10C
!, 600 of bonds Issued by the State to the Mi
eral Home Railroad Company, and which
r very properly refuses to recognize.
{ He recommends the taxation of all pro
e erty, real, personal and mixed, according
an equitable basis, and that every species
:, property, when not specially exempted
y statute, not excepting that operated und
charters and owned by corporate bodi
: should be taxed according to its value,
Q cluding railroads.
He also suggests an enactment prohibitii
!. the removal, in time Of peace, of the seal
l. the State beyond its limits, as was done
7; the Funding Board under the sixty-and-
u act-who took the seal to New York to al
2 it to the new bands.
g A RAILROAD COMMISSION.
ri The governor also recommends the ena
: ment Of Railroad Commission, the duty
/, which shall be, among other things, TO res
' late, as far as practicable, the tariffs of ira
# portation on railroads, and such other K
rs dred duties apPertaining to this vast inter
ia as may be deemed proper to impose up
:. them. He suggests that this commission
4 | composed of three capable persons; d