Disunion and Restoration in Tennessee: Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in the Faculty of Political Science, Columbia UniversityNeal, John Randolph
History
Disunion and Restoration in Tennessee: Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in the Faculty of Political Science, Columbia University
Neal, John Randolph
Reconstruction (U.S. history, 1865-1877) -- Tennessee; Tennessee -- Politics and government -- 1861-1865; Thesis (Ph. D.)
By an Act of the Legislature in 1852, known as the General Internal
Improvement Law, the Governor had been empowered to issue State bonds
to the amount of $8000 per mile in aid of railroad companies, upon the
following conditions: “1. That the company shall first secure bonafide
subscriptions to its capital stock to an amount sufficient to grade,
bridge, and prepare for the inner rails the whole extent of the main
trunk line proposed to be constructed; 2. That it be shown by the
company to the Governor that the said subscriptions are good and
solvent; 3. That the company shall have graded, bridged, and made
ready to put down the necessary timbers, for the reception of rails,
and fully completed a specified number of miles at either terminus in
a good and substantial manner, with good material for putting the iron
rails and equipments in place, and that the State shall be given a
first-mortgage lien on their property; 4. That the Governor shall be
notified of these facts by the written affidavits of the Chief
Engineers and President of the Company, together with the written
affidavit of a competent engineer appointed by the Governor to examine
the specified section; and shall be furnished with an affidavit of the
President of the Company, and a resolution of a majority of its Board
of Directors for the time being, pledging that the bonds issued to it
shall not be used for any other purpose than that of procuring the
iron rails, chairs, spikes, and equipments, and for putting down the
iron rails on the specified section for which they are issued; and
that the President shall deposit in the office of the Secretary of
State a full and accurate list of all the stockholders, with the sum
subscribed by each and every stockholder.”
Under the provisions of this act, there had been issued, prior to the
war, bonds amounting to $14,841,000. In the main, the conditions
enumerated in the act, were fairly complied with, and the State
protected from all loss.
The close of the war left the railroads, like every other industrial
interest in the State, in a thoroughly demoralized condition. Upon the
first arrival of the Federal troops, they had been seized by the
Government and used for military purposes. A great part of the rolling
stock had been destroyed, and many of the bridges and buildings burnt.
As soon as the restored government was in working order, the railroad
interests turned to the State treasury for relief. This was obtained
through the passage of a number of bills, which professed to be based
upon the Act of 1852. They were known as Omnibus bills, and under
their provisions bonds to the amount of $14,393,000 were issued.
The means resorted to to secure the passage of the Omnibus bills
furnished the greatest scandals of the restoration period. They are
vividly set forth in the following extract from the Report of the
Committee of Investigation appointed by the Legislature of 1879:
Public-domain text, read in full here on John Shaqi.
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