Year: 1879

70 terest at the moment may suggest
Y In my opinion, therefore, the pub
It lie welfare demands that the Ques
Is tion shall be settled.


a A diversity of pursuits and inter
t ests has been the prolific ~'luFce
v dissensi0n upon this question. Gu
o business men are Interested IL sus
h tanning credit, as they make money
y by the use of credit, and hence as q
e rule they have warmly sustained
every proposition looking to set.


tlement of the debt. While on the
r other hand, those engaged in agri.
D cultural and mechanical pursuits
5 have less interest in credit, and
e with no incentive other than the
D obligations of honor and justice Ia
( animate them, they have as a rule
? antagonized every proposition look
, ing to an adjustment that was not
apparently founded in equity and
justice. Hence the conflict. And
now that plan of settlement is
7 submitted to the people which has
! heretofore been deemed reasonable
by the representatives of the agri-
| cultural and mechanical classes it


seems to me that if it is defeated
we will be thrown at once upon n


hazardous sea. know that the
|, people of Tennessee are utterly


opposed to Reputation, and that


they recognize it as poison which


taints the whole history of a people.
! Now il seems 10 me that if we cam


not unite uponrthe proposed adjust


ment that there is no other upon
I which we can likely unite, and


therefore practical reputation viii


be the inevitable result. A part of


our people oppose the adjustment


because it is too high, and part


because it is too low. If a middle


ground between the two extremes


cannot command the approval of


the people, certainly neither ex-


treme may do so.


Recent events have changed the


whole complexion of this question,


and made this the last opportunity


the State will ever have for favor


able adjustment of the debt unless


my judgment is at fault. l will


state my reasons for this conclusion |


briefly. The adjustment proposed |
would not have been adopted by |


the Legislature but for the offer


made by the railroads, and they |


made the offer simply because they /


saw no adjustment would be made


unless they undertook to perform |


their part. Suits were pending I


against them, and while the weight /


of legal opinion was in their favor,


yet they preferred compromise


rather than risk the result of the


suits. Suppose no settlement is


made and the suits are decided i'm


their favor, is it not clear they will


not pay dollar they can avoid ?


On the other hand, if the suits are


successfully prosecuted, the great


bulk of the debt will still be left for


the State to settle, while the rail-


road companies whose property is


sold by the bondholders will be


clamoring and lobbying for indem-


nifty from the State. After the suits


now pending shall have been set


tied adversely to the bondholders,
-all of them will be willing to accept


the adjustment proposed, but there


is something less than three mil
lions in bonds now outstanding is


sued to the solvent roads. The hol-


ders of these particular bonds are


profoundly Interested in defeating


any settlement until the esuits are de-


cided. If they succeed in success
fully prosecuting their suits, the
amount they will receive will ex-
ceed the amount the State proposes
to pay. If they fail in their suits
they expect to participate in the
benefit of any future settlement
which may be made. 1t is their
policy, therefore to hasten their
suits and to postpone q settlement.
The proposed adjustment makes
this line of policy imperative on
their part, since it provides that
day should he fixed limiting the
privilege of funding under the law,
and they know If the adjustment is
ratified by the people that they will
be put to an election as TO whether
they will rely upon the State or the
railroads before their suits can pos
sibly be decided. Consequently the {
will leave no stone un- r
turned to defeat the proposed adj
justment. Their line of policy is
clearly outlined in their recent pub
lished manifesto. In that they seek {
to encourage all holders of bonds is !
sued to railroads to believe that all
the roads are good for the bonds out
when the fact is we'll known
that our branch roads cannot be OPP {
Grated as Independent roads so as TO S
make them pay. AS a further i'm ,
they say the suits will be i,
decided this summer when it is
known that this is impossible. They |
say to the other bondholders that If (
this adjustment is defeated the State 1
will make a better one in future,
when all who know the facts know
it is not true. And finally to defeat I
the settlement before the people @
they say the submission is not legal a
and attempt to coerce all holders of I
bonds to cooperate with
them by declaring that if they do 7
not join in their suits and repudiate d
the adjustment they shall be barred q
Of all benefit from their recovery.
When they did this they drew a =
sword by which they must perish. '
The State has the same right I
to say to them that If they fail to d
accept the adjustment in q given !
time that they shall be barred as
lHCN tidO W shy W ltlctI iGllOW Dbtlu-
holders that if they failed to join f
them they should he barred. III we q
avail ourselves of the opportunity =,
and the whole debt is funded, the p"
railroads will help pay it. If, how
ever, the holders of railroad bonds 90
will not fund then their debt will be !;
barred under the law, and the State ii
will be excused as il gave them a n
,hance to accept all the State should Il
'ightfully pay. IL they prefer to !,
OOk to the roads let them abide n
heir choice. 1T seems to me there 4
ore that the opportune moment for I.
/ settlement is now while the rail
'oads and the bOndholders by reas-
III of the uncertainty of their rights q,
ire both willing to make concessions p
o the State. With the termination -
IF the suits the opportunity will =
PASS away. y


Before attention was called to the a
obligation of the railroads they were n
to do nothing, but now Il
hey offer to contribute to the COM .
non burden to a degree which, il Of 8.
cred at any time heretofore, would
laVe Insured "A settlement. They
allied for long time to do their du-


" hut now when they offer to mar \,