TENNESSEE. 



781 



issued under the funding act of 1873 ; and of these 

 18,903 bonds 11,221 were insuod to railroads under 

 the internal improvement law of 1851-'62,and amend- 

 ments thereto, as before stated, and were a primary 

 charge upon the roads, and, if a charge at all against 

 the State, were so only secondarily. It is to bo ob- 

 served thut we are directing our answer to the second 



inquiry upon the assumption that it, as did the first, 

 addresses itself to outstanding bonds. 



The laws under which these 11,221 bonds were 

 issued required certain specific tilings to be done 

 and certain specified evidences to be filed before they 

 were authorized to be issued ; and certain conditions 

 were attached to their disposal and application and 

 the method and source of their liquidation designated 

 after their issuance. We are well within the limits 

 of established facts in saying that in nearly every 

 instance the conditions of the law, either precedent 

 or subsequent, with respect to these bonds, were not 

 observed. 



The condition of public education during 

 the past year, as compared with the preceding 

 year, is shown in the following statement, 

 which comprises returns from all but three 

 counties : 



purchase the Hermitage, 35 ; of those issued to Ag- 

 ricultural Bureauj 18 ; of those issued to the various 

 turnpike companies, 728 ; of those issued for stock 

 in the Hiawassee Railroad, 280 ; of those issued for 

 stock in the Lagrauge arid Memphis Railroad, 68 ; 

 and of those for stock in the East Tennessee and 

 Georgia Railroad, 144. Hence there are outstand- 

 ing, of all the bonds ever issued and constituting a 

 debt proper against the State, in the sense of that 

 term as used before the war, 2,105, amounting to 

 $2,105,000. 



The remainder of the 21,008 bonds outstanding, 

 to wit, 18,903,. are bonds which were issued before 

 and since the war in aid of railroads, under the act 

 of January 30, 1850, and the act of l851-'52, known 

 as the general internal improvement law, and vari- 

 ous subsequent amendments thereto, most of them 

 enacted since the war, and bonds issued under the 

 acts of 1866, 1868, and 1873, to discharge or refund 

 past-due bonds and interest. In order, however, to 

 answer the last clause of the first point, or interrog- 

 atory, of the Senate resolution, as to what part of 

 the outstanding bonds are post-bellum bonds, it is 

 necessary to give a short resume of the issuance of 

 bonds to railroads, and the operation of the funding 

 acts of 1866, 1868, and 1873, and of the acts of 1869 

 and 1870, allowing railroads to retire their indebted- 

 ness. There have been issued to railroads before Enumeration for 1878 439,214 



and since the war, 29,234 bonds. Of this number, " 1877 442,453 



851 were issued to the Hiawassee and the Lagrange 



and Memphis Railroads for State stock therein, Wm j e p ?"u "' VOTS 



Thirty-two bonds were issued to the Louisville, Number of teachers, 1 Si 8 jvs 



Cincinnati and Charleston Railroad, but that enter- 

 prise did not get well into life, and these 32 bonds Increase 



were never used and were returned for cancellation. Number of schools, 1878 



Hence there were 28,351 bonds issued in the shape 1877 



of loans to railroads. For the payment of the inter- lnmiMP 713 



est and principal of these bonds, the roads were pri- Dumber of enrolled pu'piisYisis: '. i" .'.'.'" i .' i!! .' 255,899 



marily liable, and the State only secondarily so, if .* .* r 'ig-jf 227,643 



Of 'these 28,351 bonds, 14,308 were issued before Increase 28,256 



the war under the internal improvement law of 1851 Average attendance, 1878 



-'52, and its ante-war amendments, except 350, * 



which were issued to the East Tennessee and Geor- increase 46 - 9 75 



gia Railroad Company under the act of January 30, ece i p t s of school money , 1878. $884,086 58 



1850, which is substantially similar to the act of 1851 ^ " " 1877 718,528 42 



-'52 ; and 13,943 were issued since the war under 7^r*T<rTT 



the act of 1851-' 52, and various acts passed by the Increase. fiwv 



Legislature since the war amendatory thereof. Expenditures for 1878 $778,749 41 



There are outstanding of the 14,308 bonds issued ' 



before the war, as State aid, 8,583, and of those is- ^crease $82,67775 



sued since only 2,638. There were issued under the N um ber of private schools in 1878 1,025 



act of 1866 4,941 bonds, to fund interest that accrued 1877 



upon bonds during the war and up to the 1st of ^ 



Under the act of 1868, 2,200 were issued and used 



by the Comptroller in raising money to pay interest increase * 



and maturing bonds. This transaction amounted m Enrollment of private schools in 1878 Bffi 



substance to funding the interest and the matured 



bonds. Of this series there are outstanding 569. i nprww< , 8.289 



Under the funding act of 1873, 6,641 bonds were A JSSS&a^*t^^i^^iflrei.. 2 1 - 9 " 



issued to fund past-due interest and matured bonds; tk 8 1377 17,218 



and of these 6,641, there are outstanding 4,867. - 



Hence, of the outstanding bonds, 10,320, that is, increase.. *'j* 



$10,320,000, are post-bellum bonds. Number of graded schools, 1878 



The second question to respond to in the Senate 



resolution is: "What was the nature and extent Increa8e 



of the obligation incurred by the State by issuing Number of consolidated schools, 1878 



each class or series of bonds ; whether the State was * 1S77 



directly liable for said bonds, or was only the en- M 



nies ; and whether the conditions of the State's en- 

 dorsement or loan of said bonds have been complied ^crease 



W In re'plv we beg to say that of the 21,008 bonds The ) einocrat i c State Convention assembled 

 outstanding, 18,903 are bonds issued to railroads, ^ Nashville August 15th, and continued i 

 issued under S^SitfS^ of island bonds session three days. After a protracted 



