USA > Tennessee > Williamson County > History of Tennessee, from the earliest time to the present; together with an historical and a biographical sketch of Maury, Williamson, Rutherford, Wilson, Bedford and Marshall counties, besides a valuable fund of notes, reminiscences, observations, etc., etc. Vol. 1 > Part 38
USA > Tennessee > Maury County > History of Tennessee, from the earliest time to the present; together with an historical and a biographical sketch of Maury, Williamson, Rutherford, Wilson, Bedford and Marshall counties, besides a valuable fund of notes, reminiscences, observations, etc., etc. Vol. 1 > Part 38
USA > Tennessee > Rutherford County > History of Tennessee, from the earliest time to the present; together with an historical and a biographical sketch of Maury, Williamson, Rutherford, Wilson, Bedford and Marshall counties, besides a valuable fund of notes, reminiscences, observations, etc., etc. Vol. 1 > Part 38
USA > Tennessee > Wilson County > History of Tennessee, from the earliest time to the present; together with an historical and a biographical sketch of Maury, Williamson, Rutherford, Wilson, Bedford and Marshall counties, besides a valuable fund of notes, reminiscences, observations, etc., etc. Vol. 1 > Part 38
USA > Tennessee > Bedford County > History of Tennessee, from the earliest time to the present; together with an historical and a biographical sketch of Maury, Williamson, Rutherford, Wilson, Bedford and Marshall counties, besides a valuable fund of notes, reminiscences, observations, etc., etc. Vol. 1 > Part 38
USA > Tennessee > Marshall County > History of Tennessee, from the earliest time to the present; together with an historical and a biographical sketch of Maury, Williamson, Rutherford, Wilson, Bedford and Marshall counties, besides a valuable fund of notes, reminiscences, observations, etc., etc. Vol. 1 > Part 38
USA > Tennessee > History of Tennessee from the earliest time to the present , together with an historical and a biographical sketch of from twenty-five to thirty counties of east Tennessee, besides a valuable fund of notes, original observations, reminiscences, etc., etc. V. 1 > Part 38
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The early pioneers depended upon trails and streams for their routes of travels, but with the growth of the settlements better means of com- munication became a necessity. Streams that were navigable for canoes and small boats.might be entirely unfit for commercial purposes until
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336
HISTORY OF TENNESSEE.
the obstructions which had accumulated for centuries were removed. The narrow trails winding through the forest over hills and down deep ravines were impassable to the vehicles of civilization.
So early as November, 1785, the General Assembly of North Carolina adopted measures for the better protection of the Cumberland settle- ments, which from their isolated position were peculiarly exposed to Indian depredations. It was enacted that 300 men should be embodied for the protection of those settlements, and that when assembled at the lower end of Clinch Mountain the troops should cut and clear a road from that point by the most eligible route to Nashville, making the same ten feet wide and fit for the passage of wagons and carts .* Dur- ing the year the road, as directed in the act, was opened. Hereafter, instead of by the long and circuitous route through the wilderness of Kentucky, the people from the Atlantic section reached the Cumberland through the new road which ran by the way of the Crab Orchard and the Flat Rock. Two years later the road was found insufficient for the pur- poses of the vast immigration which was pouring into the country. Ac- cordingly at the representation of the members from Davidson and Sumner Counties the General Assembly of North Carolina authorized the militia officers of these counties to appoint two or more persons to examine, survey and mark out the best and most convenient way from the lower end of Clinch Mountain to the settlement of Cumberland, and to order out the militia of these counties to cut and clear the road so marked. The regiments were ordered to be divided into classes and parts of classes, beginning with the first, and so on in rotation, till the road should be cut. A tax was also assessed to defray the expense of opening the road. Under the provisions of this act the old road was widened and cleared, and a road leading into it was soon afterward cut from Bledsoe's Lick. The following year provision was made for still further improving these roads, and also for exploring the route making a road through the wilderness lying between the Cumberland settlement and the Holston counties. From this time, as the exigencies of the country demanded, other roads and channels of communication were opened, and as the country still further filled up and developed the question of internal im- provement became one of the most important topics for the legislators. Under that head were included the construction of roads, the improve- ment of rivers and harbors, and later the building of railroads. For several years after the adoption of the United States Constitution there was much difference of opinion as to the right of the National Govern- ment to appropriate money for this purpose, the Federalists as a party
* Ramsey.
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337
HISTORY OF TENNESSEE.
favoring it, and the Republicans advocating the opposite policy. The opinion of the former finally prevailed, and a system of internal improve- ment was inaugurated. The General Government, however, undertook only works of national importance, while those of a more local nature were left to the individual States.
The agitation of this subject after the organization of the State was begun as early as 1801, during the administration of Gov. Sevier, who, as well as all the governors succeeding him to 1837, made it a special point in their messages to the Legislature to urge the adoption of meas- ures for the construction of highways and the improvements of the navigable streams. The delay in making appropriations for this purpose was occasioned by the opinion prevalent among the farming community that it would be to the exclusive interest of the commercial class .* Gov. Carroll, in his message to the Legislature of 1829-30, after review- ing the work done by the General Government and some of the other States, asks: "With these bright examples before us, does it become Tennessee to be idle?" The Legislature undoubtedly thought that this interrogatory deserved a negative answer, as they appropriated $150,000 for removing the obstructions in streams, and for other improvements. Six commissioners were elected to constitute a board of internal improve- ments, with power to appoint a civil engineer to superintend the work; $30,000 was to be used in West Tennessee, and the remainder divided equally between the other two divisions of the State.
The constitution of 1834 declared that a well regulated system of internal improvements is calculated to develop the resources of the State, and to promote the happiness and prosperity of the people, there- fore it ought to be encouraged by the General Assembly. In 1836, in compliance with the above section of the constitution, a general system of internal improvements was established. The act provided that when two-thirds of the capital stock of any company, organized for the purpose of constructing any railroad or macadamized turnpike within the limits of the State, had been subscribed, the Governor, in behalf of the State, should subscribe the remaining one-third, and issue bonds bear- ing 51 per cent interest; therefore with the founding of the Bank of Tennessee a more extended system was adopted. Under this scheme the State became subscriber for one-half of the stock in all rail- road and turnpike companies, provided that the whole amount of stock taken by the State had not reached $4,000,000. The profits arising from the State stock, in the various companies, was set apart to constitute a fund for the redemption of the bonds issued. In addition to the above
*McMinn in his message to the Legislature in 1817.
338
HISTORY OF TENNESSEE.
$300,000 was appropriated for improving the navigation of rivers, to be divided equally among the three divisions of the State. Under these acts there were issued to the various turnpike companies bonds to the amount of nearly $1.500,000, and to railroads, about $S00,000.
By the latter part of 1839 a reaction had set in against the internal improvement schemes. It was found that the State was becoming ยท heavily involved in debt, and that the results were not commensurate with the outlay. Many of the improvements were of permanent value and general importance, but the law was open to abuse, and charters were frequently granted for local and unimportant work. The profits arising from these companies were small, and the bonds issued to them still form a part of the State's indebtedness. Had the charters been granted with greater discrimination, and the work placed under efficient superin- tendency, the results would have been more satisfactory.
In January, 1840, all the laws authorizing the Governor to subscribe
: stock on behalf of the State in internal improvement companies were re- pealed. This, however, was not to interfere with any work heretofore commenced and carried on in good faith. The governor, comptroller and attorney-general were constituted a board to examine the reports of special commissioners, and to decide upon the policy of completing any work already begun. This board was afterward made to consist of the comptroller, secretary of state and the president of the Bank of Ten- nessee.
No more aid was granted to corporations by the State until 1852, when the Legislature again passed an act creating a general system of internal improvements. It provided that when railroad companies had graded a certain amount of track, that bonds, to an amount not exceed- ing $8,000 per mile (afterward increased to $10,000), should be issued to equip the roads. For the security of this loan, the State held a lien upon the road and its franchises. The companies were required by the act and its amendments to provide for the payment of the coupons on the bonds as they matured, and also a sinking fund to pay the bonds themselves. This, at the time the bonds were issued, it was thought the companies would be able to do; and it is probable, had the war between the States not occurred, the public expectation would have been realized .* In any case, it appeared as if the State's investment was sufficiently se- cured, since the lien which was held upon the roads was in the nature of a first mortgage, and took precedence over all other claims. But the general depreciation in values, and the unproductive character of much of the property rendered the sale of the roads, at anything like their actual cost, impossible. From the statement of Gov. Bate, it appears that
*Governor Bate.
339
HISTORY OF TENNESSEE.
twelve railroads, to which $20,502,684 of bonds had been issued, were sold under judicial proceedings instituted by the State, with a loss to the State of $13,804,684. The following are the roads with the respective amounts annexed to each, which made up the sum of this loss.
Amt. issued to road.
Amt. for which road sold.
Memphis, Clarksville & Louisville.
$2,953,795
$1,700,000
McMinnville & Manchester.
1,091,578
300,000
Nashville & Northwestern.
4,541,129
2,400,000
Edgefield & Kentucky.
2,0S1,429
900,000
Knoxville & Kentucky ..
2,816,176
350,000
Cincinnati, Cumberland Gap & Charleston.
1,657,208
300,000
Winchester & Alabama
1,790,536
300,000
Rogersville & Jefferson.
532,013
23,000
East Tennessee & Western North Carolina
448,000
20,000
Tennessee & Pacific.
1,220,530
300,000
Knoxville & Charleston.
816,500
150,000
Southern Railroad Company
553,790
Totals
$20,502,684
$6,69S,000 $13,804,684
Loss on sale
Under the various internal improvement laws there was granted, or loaned to railroad companies, bonds to the amount of over $29,000,000, for the whole of which the State became responsible. If the amount which the State received from these roads is alone considered, the in- vestment must be regarded as a gigantic failure, but the benefits result- ing indirectly from these roads should not be overlooked. Gov. Hawkins, in discussing this subject, used the following language: "Subsequent re- sults demonstrate the wisdom and foreisght of the projectors of this grand system of internal improvement in our State. Under the encourage- ment which was thus given, various railroads were projected and con- structed within the borders of our State. As rapidly as the several com- panies could meet the conditions of the law, the bonds were issued, placed upon the market and sold. Our State immediately, as if awak- ened to a new life, took rapid strides in prosperity. The aggregate value of taxable property in the State, as shown by the comptroller's report for 1855, was $219,012,051.81. . In 1861 it had increased to $368,202,050, a gain of $149,189,998 in six years."
No bonds were granted to railroad companies after 1867, and the constitution of 1870 forbids the loaning or giving of the credit of the State to any corporation or company, although it reaffirms the section of the old constitution which declared that a well regulated system of inter- nal improvement is calculated to develop the resources of the State and to promote the happiness and prosperity of the people, therefore it ought to be encouraged. The constitution of 1870 also prohibits the State
F
340
HISTORY OF TENNESSEE.
from becoming a stockholder in any company. This, however, does not interfere with the rights of counties or incorporated towns to vote aid to railroads or other enterprises of a like character. Previous to May 26, 1886, the principal railroads of the State, with the exception of the Illi- nois Central system and the Mobile & Ohio, were five feet gauge. The question of reducing them to a conformity with the standard gauge had been agitated for several years, but nothing in this direction was done until the spring of 1886, when a convention of railroad officials was held in Atlanta, Ga., and the matter taken up in earnest. It was decided by the convention to adopt the gauge of the Pennsylvania Road, which is four feet and nine inches, and during the last week in May the change was made. The Mobile & Ohio Road changed its gauge in the fall of 1885.
The following table shows the receipts and disbursements of the State government from 1837:
YEAR.
Receipts.
Disbursements.
Balances.
October 1, 1837.
$ 231,596 63
$ 156,159 32
$ 75,437 31
October 1, 1839.
533,920 73
423,758 01
116,599 43
October 1, 1841.
543,739 79
470,748 75
189,590 47
October 1, 1843.
473,022 01
623,737 27
38.875 21
October 1, 18-15.
576,942 71
506,688 40
109,329 52
October 1, 1847.
710,907 61
642,314 32
177,281 73
October 1, 1849
790,695 53
802,436 66
152,199 11
October 1, 1851.
1,004,004 94
933,431 25
222,771 80
October 1, 1853.
1,202,047 04
1,218,387 04
206,431 SO
October 1, 1855.
1,035,715 22
1,154,307 79
87,839 23
October 1, 1857.
1,451,175 87
1,502,519 04
36.496 06
October 1, 1859.
1,848,094 88
1,704,287 61
180,303 33
October 1, 1865*
129,991 38
130.670 15
October 1, 1866.
1,098,970 55
1,128,986 86
589,950 54
October 1, 1869.
5,386.537 56
5,858,004 06
28,649 43
October 1, 1871.
3,590,926 95
3,142.282 01
159 44
October 1, 1871, to December 3, 1872.
2,420,091 17
2,432,858 00
159 14
January 1, 1873, to December 20, 1874
3,618,703 52
3,290,158 41
328,704 55
December 20, 1876.
4,526,423 76
4,715,795 12
139,332 19
December 20, 1878.
2,000.883 64
1,661,869 79
478,346 04
December 20, 1880
1,144,349 82
1,400,316 47
222,424 39
December 20, 1882.
1,870,224 02
1,584,633 33
508,015 08
December 20, 1884
2,194,886 98
1,765,072 3S
645,214 83
October 1, 1867.
3,50S,586 91
2,948,652 68
*From May to October 1.
The history of railroad enterprises in Tennessee is one of singular and absorbing interest. The movement toward awakening public in- terest in railroad construction, occurred as early as the year 1835, when in the language of Gov. Cannon, "the spirit of internal improvement was abroad in the land." During that year Col. Robert T. Hayne, of South Carolina, whose debate with Daniel Webster on the Foster reso- lutions gave him a world wide reputation, visited Nashville, and in an able address advocated the construction of a railway from Memphis to Knoxville, thence to Charleston, S. C., so as to connect the sea-board with
341
HISTORY OF TENNESSEE.
the Mississippi River, the great inland route of navigation. No attempt however, was made to put the plan into operation.
A
A second effort was made the next year by William Armour, repre- sentative to the Legislature from Shelby County, to unite the Mississippi with the sea-board by constructing a line "from the most eligible point on said river, as near the center of the State as practicable, to the Tennessee River; thence near the center of the State to a point on the Virginia line." October 10, 1836, a convention was held in the Federal court room at the capitol for the purpose of discussing the subject of internal improvement. Sixteen counties was represented, and Col. Robert Allen was chosen chair- man. The session lasted four days, during which time a resolution advocat- ing the construction of the above road was adopted. The subject was pre- sented to the Legislature, which was in session at that time, and $15,000 was appropriated for surveying a route for the "Central Railway." Albert M. Lea was appointed chief engineer, with instructions to survey the line through the State, and to estimate the cost of both a single and double-tracked railway; also, the comparative cost of a turnpike over the same route through Middle and East Tennessee. His estimate placed the cost of a single-tracked road from Perryville, on the Tennessee River, to the Virginia line, at $6,421,718.60, and for the the entire distance, 500 miles, at $7,841,718.60. A double-tracked road over the same route, he thought would cost $11,154,968.60. He also estimated the receipts and expenditures of such a road. Through Middle and East Tennessee he placed the number of passengers to be carried at an average of 100 per day each way, which at 5 cents per mile would produce a yearly income of $1,370,575. The same number of tons of freight, at 6 cents per mile, would produce $1,644,690, a total of $3,015,265. The cost of carrying the passengers at & cent per mile, and freight at 1 cent per mile, would amount to $696,565, which added to the cost of repairs, $659,298.11 makes a total annual expenditure of $1,355, 863.11, leaving a net revenue of $1,659,401.49. The estimates for West Tennessee are made on the same scale, except that the rate for carrying freight is fixed at 3 cents per . mile, and the amount of business is placed at only one-half that of the other division of the State. The net earnings of this part of the road would thus amount to $214,615.96.
These estimates both as to the construction and operation of such a road, would scarcely coincide with those of an experienced railroad oper- ator of to-day, and they serve to illustrate how little was then known about such enterprises. Railroads were projected on a grand scale, but seemingly with little regard to the demands of the trade and commerce of sections through which they were to pass, or the comparative cost of
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342.
HISTORY OF TENNESSEE.
construction over a less direct route. The engineer of the above road strongly advocated its construction, but the great financial crash of that year rendered a successful movement in that direction impossible.
During the same year that the Central Road was projected a charter was procured for the Hiwassee Railroad, through the influence of Gen. James H. Reagan, representative to the Legislature from McMinn County. The charter required that stock amounting to $600,000 should be subscribed within two years. On July 4, 1836, a railroad convention composed of delegates from all the Northern States, Maryland and the Southern States met in Knoxville; Robert T. Hayne, of South Carolina, was made president. The convention adopted measures for the construc- tion of a road from Cincinnati or Louisville, through Cumberland Gap, up the French Broad River and on to Charleston. This route was not satisfactory to the delegates from Georgia and lower East Tennesse. The delegates from MeMinn County, one of whom was T. N. Vandyke, brought to the notice of the Georgia delegation the Hiwassee charter.
Upon a conference it was decided that by adopting this route, a road from Knoxville, through Georgia to Charleston, could be put into opera- tion before the work would commence on the Cumberland Gap route, and it was agreed that the MeMinn County delegation should go home, open books and secure subscriptions, while the members from Georgia should procure a charter from their State, and meet at the State line.
The delegates from MeMinn, upon their return home, set immediately to work, but it was a new enterprise and one not well understood by the people. The taking of stock advanced so slowly that, in order to prevent the forfeiture of the charter, six residents of McMinn County, Gen. Nathaniel Smith, Onslow G. Murrell, Ashbury M. Coffey, James H. Tyffe, Alexander D. Keys and T. N. Vandyke, agreed to subscribe each $100,000. Upon examination of the subscription books, it was found that $120,000 of stock had been taken, so that the subscription of the six men named had to be reduced to $80,000 each. These men refused to permit an organization of the company until they could distribute their stock in such a manner that the stockholders could meet the calls without embarrassment. This was accomplished within a year, and an organization was effected with Solomon P. Jacobs as president and Ash- bury M. Coffey secretary and treasurer. J. C. Trautwine, of Philadel- phia, was engaged as chief engineer. The road was surveyed and ground was broken two miles west of Athens, in 1837, being the first work ever done on a railroad in the State. With the exception of a few intervening gaps, the road was graded from the State line to Loudon, and a bridge built over the Hiwassee River. Meantime it was ascertained that
343
HISTORY OF TENNESSEE.
$600,000 was insufficient to build the road, and upon application to the Legislature, the State agreed to subscribe stock to the amount of $650,000 in 5 per cent State bonds to be paid upon call pari passu, with the payments of the individual stockholders. The financial embar- rassments of 1837 compelled a suspension, and the company was forced to execute a deed of trust, authorizing the sale of the road. The State filed a bill enjoining the trustees from acting under the deed, and sought to amend the charter. The suit was carried to the supreme court and finally decided against the State.' The debts amounted to about $130,000, and the sum due from the State upward of $80,000, but by skillful management the debts were all compromised and liquidated by the creditors taking one-half of the debt in 5 per cent State bonds, and the remainder in the stock of the company at par. After various unsuc- cessful attempts to procure money to complete the road, the company finally made a contract with Gen. Duff Green, who agreed upon certain conditions to build the road from Dalton, Ga., to Knoxville. Gen. Green after doing a considerable amount of work failed and surrendered his contract. The company then entered into a contract with William, Grant & Co., who finished the road from Dalton to the Hiwassee River. J. G. Dent & Co. built the road from there to Loudon in 1852, and in 1856 the portion from Loudon to Knoxville was completed. Through repeated failures, delay's and litigations the name "Hiwassee" became so obnoxious that in 1848 it was changed to East Tennessee & Georgia.
In 1852 the East Tennessee & Virginia Railroad was chartered. The portion of this road in Tennessee extended from Knoxville to Bris- tol on the Virginia line, and formed a connecting link between the two great systems of roads those in the Northeast, and those of Alabama, Georgia and South Carolina. It was completed in 1858, and later was consolidated with the East Tennessee & Georgia. under the name of the East Tennessee, Virginia & Georgia.
The first railroad chartered by the Legislature was the La Grange & Memphis. The company was incorporated in December, 1835, and was soon after organized. Subscriptions to the amount of $250,000 were made by individuals, and, in accordance with the act of 1835, the gov- ernor subscribed $125,000 on behalf of the State. The road was located in September following, and during 1837 the grading of the track was begun. Owing to financial embarrassments and inexperience on the part of the management, the work progressed slowly, and after dragging along for several years, was finally abandoned. February 2, 1846, a charter was granted to the Memphis & Charleston Railroad, authorizing a capital stock of $800.000, and under the persevering efforts of Ex-Gov.
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344
HISTORY OF TENNESSEE.
James C. Jones, the first president, Col. Sam Tate, Joseph Lenow, Minor Meriwether and others, was brought to a successful completion in 1857. In constructing the road the old road bed of the La Grange & Memphis was purchased and utilized.
The Nashville & Chattanooga Railroad was constructed simultaneous- ly with the building of the Memphis & Charleston. This enterprise originated with Dr. James Overton, a man of remarkable sagacity and undaunted resolution. During a contest for legislative honors in 1843. he advocated the building of a road from Nashville to Chattanooga to connect with the Western Atlantic, a road chartered about ten years pre- vious to that time. He failed to enlist any considerable support in what was then looked upon as a visonary scheme, and on account of his en- thusiastic advocacy of the project, he was dubbed "old Chattanooga." Although the efforts of Overton were barren of any immediate results, yet they served to direct public attention to the advantages of railroads. About 1845 the depression which had prevailed so long in business cir- cles began to be relieved. The growing trade of Nashville demanded other outlets than that afforded by the Cumberland River. Other por- tions of the State began to awaken to the necessity of providing better means of transportation, and in this they were stimulated somewhat by the action of Georgia in chartering a road to run from Augusta to Chat- tanooga. The subject was brought before the Legislature, and under the pressure of influential citizens of Nashville, an act was passed December 11, 1845, to incorporate "a railroad from Nashville on the Cumberland River, to Chattanooga on the Tennessee River." The internal improve- ment laws having been repealed, no State aid was granted to this road at that time, but an act passed by the next Legislature authorized the may- or and aldermen of Nashville to subscribe $500,000 to the enterprise. This measure met with considerable opposition, and a bill was filed in chancery to enjoin the subscription to the road or the issuing of bonds by the corporation. On appeal it was taken to the supreme court, and finally decided at the December term, 1848. The opinion delivered by Judge Torley decided that the Legislature of Tennessee had the consti- tutional power to authorize the corporation of Nashville to take stock in the Nashville & Chattanooga Railroad, and that the making of this road was a legitimate corporate purpose of the corporation, acting under the au- thority of the act; thus sustained by the court's decision, the city voted the $500,000 to be expended in the construction of the road. During the two years previous the subject had been thoroughly canvassed through- out the city and a strong public sentiment had been enacted in favor of the enterprise. Most prominent among those to whom this result was
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