Year: 1879

But these modern financiers and pay-noth-
ing gentlemen say that was all wrong and |
fraudulent-a corrupt job put up in the in
terest Of railroads. But the Legislature !
that passed the law did not 30 regard il, |
they thought that legally issued obligation
of the State was Legitimate payment to the |
State in her own paper and made no differ !
ence to the State if the railroads did pur-
chase it discount.


And upon investigation it appeared that
there wcre about dozen railroads in the |
State that had paid no interest for years on
the bonds loaned them by the State, and
that the State had seized them, as she had
perfect right to do,under the Law. that gave
them existence, and was trying 10 operate
them by receivers so as to save her self from
loss. But this experiment proved a failure,
and was costing the State about g, 500
day for every day they operated them, and
the Legislature agreed at once that this
leak must be stopped. And to accomplish
this desirable object the Legislature resolved
to cut loose from these insolvent railroads
that were running the State to ruin every
day and forclose the mortgage she held on
them and sell them out to the highest bidder
for the relief Of the State


But this duty OF foreclosure and sale was
complicated on, and one that required
much legal investigation and had to be
transacted by commissioners. This commits
sion, the Legislature imposed Oh Judge Nc
Kinnie, of East Tennessee, Judge Fogg, of
Middle Tennessee, and Judge Wright, OF
West Tennessee, in whose legal ability and
moral honesty they had the most unbound
cd confidence. But here again these special
guardians of the peoples rights and liberties
say this was another dishonest job put up by
the Legislature and carried through by
these commissioners corruptIy in the interest
of the solvent railroads.


Now l don't believe that these gentlemen
really think that every body that has had
anything to do with this question hereto
fore has been dishonesty corrupted by the
railroads, but they resort to the argument
| for its force before the people. 1t has be-
come very common of late years to hear
demagogues of the first water appealing to
the prejudices etthe people against rail-
roads to carry point. But it may be true
that some of the solvent railroads wanted
the insolvent roads sold so that they might
| become the purchasers on speculation if
you please. Well suppose they did,is there
anything dishonest in that if they were will
ling to give more than anybody else would ?
But my observation has been that the spccu-
lations failed to pan out very well.


A small experiment of the NJ. & C. r. R.
in that speculation suppose is about a fair
average. Maj. Wicks, the then President
Of that railroad, got phantom into his
head that there was rich deposit of oil up
about the foot of the mountains and that by
purchasing the McMinwille & Manchest, +
and the Winchester & Alabama railroads,
and connecting them with his road, that
they would become not only profitable feed
ers to the Charleston road, but tap this oil re-
gion of so much hidden wealth. But Mai
| Wicks never struck oil and the result was a
$500, 600, and corresponding benefit to
the State. And l venture the prediction
that there is not to-day, one-hah the pur-
chasers of of these insolvent roads but what
would be more than glad to have their
money back and be rid of the roads, fraud
ulent as these gentlemen say the purchasers
were. But the inference is that if those
honest gentlemen that talk so flucutly about
fraud had been in charge of the matter at
that time that they would have held on 10
all these wildcat. roads till yet for fear of
committing a fraud, if it did cost the State
s., 500 per day to hold them.


But fraudulent or not we have the conso-
lation TO know that these transactions ran
the States Indebtedness down from 43 to 10
millions of dollars according to the Comp
trolers' report. And then it was after we
had got the States indebtedness thus reduc-
ed and got cut loose from this elephant of
insolvcnt railroads that was exhausting the
States resources at the rate OF $500 per
day on an average, that we commenced to
agitate the subject of a fair and equitable
compromise. But unfortunately most of the
leading papers in the State and many pol
ticians denounced the proposition as repu-
diation. This led the bondholders to be-
lieve that we intended to pay the last dol
lar, regardless of any frauds or irregularI-
ties, and consequently DESTROYED all hope
of compromise for the time being. And be-
fore anything could be accomplished a
subsequent Legislature passed what is known
as the funding law, and this led the bond
holder to believe thai if there was any fraud
behind it that this act legalized it all, and
of course they would make no equitable
proposition for compromise. But FORUM
ately the Legislature that passed it nor any
other since has had the moral courage to
attempt TO execute it by fevying tax suffi-
cient to comply with its provisions.


This action of the Legislature in refusing
to levy the tax met my hearty approval,
and was delighted to believe that our own
Immediate Representative and other low
tax men had entered fully into the spirit OF
fair and honorable and equitable adjust
ment of our State debt, but it certainly never
led me to believe that they intended to at
tempt the repudiation Of all.


This led the bondholdcr to believe that
VIC were in earnest in demanding an abat'
ment sufficient TO cover all our equities in
the case before we paid anythii G and now |
large portion OF them agree 10 acceptthe
proposition OF 80 cts in the dollIr at per
cent interest.


And now ask in the name of common
sense and common honesty, and in the name
Of old John Savage and J. A. Manson and
every other honest and fair minded man
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