USA > Tennessee > History of Tennessee, its people and its institutions > Part 24
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462. The Act of 1837-38 .-- In 1837-38, an act was passed increas- ing the proportion of stock to be taken by the State to one-half, but limiting her total liability to $4,000,000. It was at this time that the fourth Bank of Tennessee, the greatest banking institution ever con- ducted in the State, was chartered, its purpose being "to raise a fund for internal improvements. and to aid in a system of education."
463. First Railroad Construction .- Through the influence of Senator James H. Reagan, of McMinn County, afterwards a dis- tinguished citizen of Texas, the Legislature granted a charter of incor- poration to the Hiwassee Railroad Company, in 1836, for the purpose of constructing a railroad from Knoxville, through the Hiwassee dis- trict, to the southern boundary of the State. The road was surveyed and ground broken in 1837, being the first work ever done on a railroad in this State. In 1848, the charter was amended and the name of the corporation changed to the East Tennessee and Georgia Railroad Com- pany. The road was not completed until 1856.
Two years later, the East Tennessee and Virginia Railroad, from Knoxville to Bristol, was completed. The two now form the magnifi- cent trunk line from Bristol to Chattanooga, known as the East Ten- nessee, Virginia and Georgia Railroad. The Hiwassee road was twenty years in building.
In the meantime, largely through the influence of Dr. James Over- ton, afterwards known as "Old Chattanooga." the Nashville and Chat- tanooga Railroad was chartered, in 1845. Under the successful management of Vernon K. Stevenson, its president, it was completed in 1853, and was the first railroad operated in Tennessee.
464. Internal Improvement Receives a Temporary Check .- In 1840, all laws authorizing the State to take stock in internal improve-
' Phelan's History of Tennessee, p. 284.
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HISTORY OF TENNESSEE.
ment companies were repealed, and the question of completing the work already begun was referred to a board of special commissioners, named for that purpose. In all cases of applications for State bonds in payment of the State subscription, after the passage of that act, the affairs of the companies making such application were subjected to a searching scrutiny, and if they had not conformed to the law, aid was denied, and the Attorney General filed bills to forfeit their charters. In this way, the State was saved a large increase in her indebtedness, and the corporations already aided put on a safer footing.4
465. The Act of 1852 .- In 1848, an act was passed by which the State was to assume only a secondary liability as endorser of the mort- gage bonds of the railroad companies. This proving unsatisfactory, the act of 1849-50 was passed, providing that the State should issue its own bonds to the company, and take title to the road to secure their payment. But this act was not sufficiently guarded.
Finally, the act of 1852 was passed, under which almost the entire State aid to railroads was granted. Under this act, when any railroad company with a bona fide subscription sufficient to grade, bridge, and prepare the whole extent of its main line for the iron rails, had prepared a certain extent of its roadbed, it was entitled to receive $8,000 of the six-per-cent bonds of the State, to be used in ironing and equipping the road. These bonds were to have the force and effect of a first lien or mortgage on the road. its franchises and equipment. Under this act, with its subsequent amendments. about $14,000,000 of bonds were issued. prior to the Civil War, making the total issue to railroads up to that time about $15.000.000.
466. The End of State Aid to Internal Improvement Companies .- The Civil War produced great irritation in the conduct of public affairs. The Reconstruction Period was disastrous not only in fomenting sec- tional animosity, but also in adding largely to the public debt of the State. From April, 1866. to December, 1868, more than $14.000.000 of bonds were issued under the acts of 1852 and 1854. The State debt at the beginning of the war was $20.363.406.69. The Brownlow administration. just after the war, increased it, altogether. about $21.500,000. This made a total indebtedness of $41.863.406.69, at a time when the State was least able to pay. the assessed value of her 'taxable property having shrunk from $389.000,000, in 1860. to $225,-
"Message of the Governor of Tennessee to the Twenty-Fourth General Assembly of the State, Nashville, 1841.
259
INTERNAL IMPROVEMENTS.
000,000, in 1867. When the Constitutional Convention met in 1870, it concluded the long chapter of internal improvement legislation by the provision heretofore cited, which prohibited the General Assembly from loaning the credit of the State, or from becoming an owner of the stock of any company or corporation.
467. Counties and Municipalities .- Some of the counties and municipalities had heretofore pledged their credit to an extent which alarmed the prudent element of their citizenship. So jealous had public sentiment become that the convention limited the power of counties and municipalities by throwing around its exercise the following safeguard : "The credit of no county, city, or town shall be given or loaned to or in aid of any person, company, association, or corporation, except upon an election to be held by the qualified voters of such county, city, or town, and the assent of three-fourths of the votes cast at said election.""
3 See Constitution, Article II, Sections 29-31.
.
260
TOPICAL ANALYSIS.
TOPICAL ANALYSIS OF DIVISION II.
I. Partisan Politics- Revolt Against Jackson - Rise of the Whig Party .- (a) David Crockett ; Hugh L. White; John Bell ; Newton Cannon. (6) James K. Polk ; Felix Grundy ; John Catron ; Cave Johnson.
II. Whig Success - Cannon, Governor - White Carries State for President.
III. Democratic Success - Polk, Governor.,
IV. Whig Success - Jones, Governor for Two Terms.
V. Democratic Success - Polk, President - Aaron V. Brown, Governor.
(a) Annexation of Texas ; Mexican War ; Tennessee, the Volunteer State.
VI. Whigs Successful Again - Neill S. Brown, Governor.
VII. Disintegration of Whig Party- Know Nothings - Andrew Johnson, Governor.
VIII. Isham G. Harris, Governor for Two Terms.
IX, Secession - Tennessee Last Southern State to Secede - East Tennessee Favors Union.
X. Provisional Army of Tennessee -Contest for Kentucky - Belmont - Fishing Creek.
XI. Tennessee the Battle Ground - Fort Donelson - Shiloh - Andrew Johnson, Military Governor.
XII. Cavalry Raids - Morgan - Forrest.
XIII. Bragg Occupies Chattanooga - Invades Kentucky.
XIV. Bragg Returns to Tennessee - Battles of Murfreesboro, Thompson's Station - Retreat to Chattanooga.
XV. Final Contest for Tennessee - Chickamauga -- Knoxville - Missionary Ridge - Tennes- see Evacuated.
XVI. Forrest- Four Raids in West Tennessee -- Raid in Middle Tennessee.
XVII. Invasion of Tennessee by General Hood - Battle of Franklin - McGavock Cemetery.
XVIII. End of the War - Incidents of the Surrender.
XIX. Tennessee Soldiers in Other States.
XX. Tennessee's Record in the War .-
(a) Statistics ; Federal Leaders ; Confederate Leaders ; Sam Davis.
XXI. Reconstruction - Union Conventions - Proclamations - Constitutional Amendments. XXII. Brownlow's Administration - Political Factions - Legislation .-
(a) Tennessee Admitted into the Union.
(b) Partisan Bitterness.
(c) Increase of Public Debt.
(d) Election Laws.
(e) " Brownlow's Militia."
(f) Loyal League.
(g) Ku Klux Klan.
(2) Public School Law.
XXIII. Senter's Administration - Irritation Allayed - Ku Klux Disband - Militia Disband - Loyal League Disappear .-
(s) Senter Candidate for Re-Election ; The Coup de Main ; Confederates Allowed to Vote.
(c) Senter Re-Elected ; Democratic Legislature.
XXIV. Constitutional Convention - Accepts Issues of War - Prohibits State Aid to Corpora- tions - Extends Elective Franchise - Limits Powers of Executive - Ratified by People.
XXV. Democrats Come into Power.
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DIVISION III.
TENNESSEE UNDER THE CONSTITUTION OF 1870.
CHAPTER XLIV.
DEMOCRATS IN POWER-BROWN TO HAWKINS.
468. Democrats Control All Departments .- At the general election. November, 1870, Gen. John C. Brown was elected governor, with a Democratic Legislature.
469. Governor Brown's First Administration .- The previous Democratic Legislature had paved the way for the political reorganiza- tion of the State. The attention of the new administration was devoted to pressing economic questions, and especially to the State debt. The
comptroller reported that the State debt reached the enormous sum of $41,863,406.69. There were important questions relat- ing to the railroads and the penitentiary. This Legislature continued the policy of leasing the penitentiary, and passed acts to authorize railroads to consol- idate, to establish a Bureau of Immigration, and a Bureau of Agriculture, to create the offices of Superintendent of Prisons, and of State Geologist, to revise the chancery system, and to ap- portion the State into Senatorial, Representative, and Congres- sional Districts. Governor GOV. JOHN C. BROWN. Brown was reelected to a second term of office, in 18;2, with a Legis- lature Democratic in both branches.
262
HISTORY OF TENNESSEE.
470. Governor Brown's Second Administration .- In the year 1873, a severe epidemic of cholera visited the State, accompanied by an epidemic of yellow fever. The Thirty- eighth General Assembly, upon the rec- ommendation of the governor, passed two important measures; the one, "to estab- lish and maintain a uniform system of public schools"; and the other, to fund the State debt. The responsibility which Governor Brown assumed in throwing his whole influence in favor of these meas- ures demonstrated his wisdom and cour- age. There was much opposition to the school law. and especially among Governor Brown's immediate supporters. It cost him, at the time, the loss of valued HON. JOHN M. FLEMING, Superintendent Public Instruction. friends; yet, the present generation honors his memory for his unselfish bravery in establishing our present school system. This system was put into efficient operation by the State Superintendent, Hon. John M. Fleming.
A strong opposition was, also, offered to his financial policy. In spite of this, his influence was sufficient to secure the enactments which he recommended. During his two terms, the bonded indebtedness was reduced from $41,863,406.69, to a little over $20,000,000 ; a large float- ing debt was liquidated; an act was passed to fund the State debt at par; the payment of interest was resumed, and the credit of the State was fully restored. Other important economic legislation was enacted. Having served two terms with distinction, Governor Brown declined to be a candidate for reelection. In 1874. Hon. James D. Porter (Democrat) was elected governor, with a Democratic Leg- islature, and was inaugurated January 18. 1875.
GOV. JAMES D. PORTER. 471. Governor Porter's Administra- tion .- Governor Porter served two terms. extending from 1875 to 1879. Early in his administration, the Funding Act of 1873 was repealed. The Democratic party was divided in refer-
263
BROWN TO HAWKINS.
ence to the State debt. It was urged by one wing that a large part of the debt was fraudulent, and especially that part created during the Brownlow administration. The other wing urged that the credit of the State demanded that all debts should be paid which had been incurred by the recognized authority of the State. Governor Porter repeatedly urged upon the Legislature to make a final adjust- ment of the State debt, and to provide for paying the interest.
In 1877, the Legislature suspended the payment of interest on the State debt, and reduced the State tax from 40 cents to 10 cents on the $100, and appointed a commit- tee, consisting of John H. Savage, G. W. HON. JAMES E. BAILEY, United States Senator. Martin, Jesse Arledge, W. E. Travis, and Lewis Sheppard, to confer with representatives of the bondholders. An adjustment was proposed, to the effect that the debt should be funded at the ratio of sixty cents on the dollar, and bonds given, bearing six per cent interest. An extra session of the Legislature was called to con- sider the proposition, which convened December 5, 1877, but failed to reach a final adjustment.
In 1877, Hon. James E. Bailey, of Clarksville, one of the ablest men of the State, was elected United States Senator. Messrs. E. E. West- brook and Benton McMillin were appointed commissioners to negotiate with Kentucky for the purchase of the peculiarly located country included in New Madrid Bend. Kentucky, however, declined to enter- tain any proposition on the subject. During this administration, a number of important economic measures were adopted. Provisions were made for the organization of corporations. "The four-mile law" was passed, prohibiting the sale of intoxicating liquors within four miles of an incorporated institution of learning, except where such sale was protected by the charter of an incorporated town. In consequence of the terrible epidemic of yellow fever which prevailed in 1878. the State Board of Health was created. The powers of this Board have since been enlarged. and it has been of great benefit to the State.
Governor Porter was a warm friend of public education. The system grew in popularity under the wise supervision of Hon. Leon Trousdale. Teachers' Institutes were used as popular agencies, the State Board of Education was created, the Peabody Normal College was
264
HISTORY OF TENNESSEE.
established, and Governor Porter was elected a member of the Peabody Board of Trust. The injudicious bill abolishing the office of County Superintendent of Schools, after passing both Houses, was defeated by the wis- dom of Governor Porter, who disposed of it by a pocket veto, by which good deed he won the esteem of all friends of education, and the gratitude of the State. Thus was defeated the last serious effort against the system of public schools. Governor Porter declined reelection at the end of his second term, and Col. A. S. Marks was elected governor.
HON. LEON TROUSDALE, Superintendent Public Instruction. 472. The Administration of Gov- ernor Marks .- During the two years of this administration, the State debt was the pressing issue. The Fund- ing Act of 1873 had been repealed after bonds had been issued under it to the amount of $6,657,000. The status of the debt was unsatisfactory and confused. The payment of interest had been suspended for several years, and the credit of the State was suffering. The Democrats were divided on the question of funding the debt. One wing favored funding the entire debt, and providing for the payment of interest. Another wing was opposed to funding the entire debt, claiming that a large portion of it was fraudulent, and that the State was unable to bear the burden. Various expedients were proposed, and every shade of opinion was expressed. Finally, a law was passed by the Legislature, providing for funding the debt at the ratio of fifty cents on the dollar in bonds bearing four per cent interest ; the said law to be sub- mitted for ratification or rejection to a vote of the people. The election was held August 7, 1879, and the proposed law, popularly styled "the 50-4 propo- sition," was defeated by a vote of 46.704 for "acceptance," and 75.755 for "rejec- tion."
GOV. ALBERT S. MARKS.
At the end of his teri. Governor Marks declined to be a candidate for reelection. The Democratic con- vention for nomination of a candidate for governor was hopelessly
265
HAWKINS TO BUCHANAN.
divided. Hon. John V. Wright was nominated by the "State credit" wing, and Hon. S. F. Wilson by the "low tax" wing. This split in the Democratic party led to the election of Hon. Alvin Hawkins (Repub- lican) as governor.
CHAPTER XLV.
HAWKINS TO BUCHANAN.
473. The Administration of Governor Hawkins .- An effort was made at the beginning of this ad- ministration to settle the State debt on a basis satisfactory to the bondhold- ers. An act was passed in 1881 "to settle the State debt at one hundred cents on the dollar, and three per cent interest, and making coupons receivable for taxes." . The Supreme Court declared this act unconstitutional, and the vexed question was again opened. Three extra sessions of the Legislature were held. At the third extra session an act was passed "to settle and fund the State debt GOV. ALVIN HAWKINS. into bonds at sixty cents on the dollar, with graded interest at three per cent for two years, four per cent for the next two years, five per cent for the next two years, and six per cent thereafter." This act was approved May 20, 1882, and bonds were issued under it to the amount of $8.211,000. Like its predecessors, it was unsatisfactory to the people.
At the beginning of his administration, Governor Hawkins appointed Dr. W. S. Doak as State Superintendent of Public Instruction. Dr. Doak was a descendant of Rev. Samuel Doak, the pioneer of educa- HON. W. S. DOAK, Superintendent Public Instruction. tion in Tennessee. His useful career was closed by death in 1882. He was the only State Superintendent of Public Instruction who died in office.
266
HISTORY OF TENNESSEE.
Hon. G. S. W. Crawford was appointed to fill the unexpired tern. He continued the policy of his predecessor. Col. Leon Trousdale had established the general State Institute at the University of Tennessee. This was the first professional institute held in the State. It supplied to the teachers a summer school of high grade, and was continued through the administrations of Dr. Doak and Prof. Crawford.
The Democratic Convention, which met in June, adopted in its platform a plan for settling the State debt, and nominated Gen. William B. Bate for governor. The ex- treme State Credit wing of the Democratic HON. G. S. W. CRAWFORD, Superintendent Public Instruction. party, known as "the Sky-Blues." nomi- nated Hon. J. H. Fussell. The Republican Convention re-nominated Governor Alvin Hawkins. General Bate was elected.
474. The Administration of Governor Bate .- Upon the strong recommendation of the governor, the Legislature enacted a law for the funding of the State debt, which proved to be the final adjustment of the vexed question. The first part of the act consists of a preamble, setting forth the considerations which influenced the Legislature, defining the different classes of bonds, and the valid- ity of the several classes. The act then provides for settling the "State debt proper," in full, including principal and accrued in- terest, except interest which accumulated during the four years of the war. The bonds issued in funding this portion of the debt were to bear interest at the rate of the original contract. The "State debt proper" included the indebtedness, the validity of which was admitted by all, and embraced nine classes of bonds, as enumerated in the act, and amounted, exclusive of interest, to GOV. WILLIAM B. BATE. $2,118,000, as follows :
Capitol Bonds
$493,000 00
Hermitage Bonds 35,000 00
Agricultural Bonds
18,000 00
267
HAWKINS TO BUCHANAN.
Union Bank Bonds
$ 125.000 00
Bank of Tennessee Bonds.
214,000 00
Bonds issued to Turnpike Companies. 741,000 00
Hiwassee Railroad Bonds
280,000 00
East Tennessee and Georgia Railroad Bonds. 144,000 00
Memphis and LaGrange Railroad Bonds. 68,000 00
Total $2,118,000 00
It was charged that a portion of the remaining indebtedness was tainted with fraud, another portion was illegally issued, another portion was chargeable with equitable offsets. It was, therefore, provided that the remainder of the indebtedness, including principal and accrued interest, should be funded into bonds for one-half of the principal and accrued interest, said bonds to bear interest at three per cent, and to be payable in thirty years, but redeemable at the option of the State, after five years. These provisions applied to five classes of bonds, enumer- ated in the act, and amounted, exclusive of interest. to $18.903.000. as follows :
Ante-war Railroad Bonds
$8,583,000 00
Post-war Railroad Bonds
2,638,000 00
Funded under act of 1866
2,246,000 00
Funded under act of 1868
569.000 00
Funded under act of 18731
4,867,000 00
Total $18,903.000 00
The twenty-nine bonds held by the widow of James K. Polk, and all bonds held by educational, literary, and charitable institutions. on January 1, 1882, were excepted from the provisions of this act. This settlement was accepted by the bondholders, and the entire State debt was ultimately funded under the act. Supplementary acts have subse- quently been passed, but the "State debt" has never since been an irri- tating factor in politics.
475. Economic Matters. - Under the supervision of Hon. Thomas H. Paine, the Teachers' Institutes were restored to the office of popular agencies, in which capacity they had accomplished much good under Superintendent Trousdale. They had recently been used for professional instruction. They were needed in the popular fieldl, where
1 Under the act of 1873. bonds had been funded to the amount of $6.657.000. Of this amount, $1,790,000 were included in the State debt proper, leaving $4,867,000.
268
HISTORY OF TENNESSEE.
Superintendent Paine put them "on wheels," as he expressed it. They became powerful agencies in gaining for the school system the public favor, and planting the interests of educa- tion deep in the hearts of the people.
A law was enacted to create a commis- sion to regulate the railroads. Col. John H. Savage, J. A. Turley, and Gen. George W. Gordon were appointed to constitute the railroad commission.
476. Governor Bate's Second Term .-- At the general elections in 1884, Governor Bate was reelected for a second term. In 1885. the railroad commission law was repealed. In the same year, commissioners were ap- HON. THOMAS H. PAINE, Superintendent Public Instruction. pointed to settle the boundary line between North Carolina and Tennessee; the law was passed to establish taxing districts of the second class, and an appropria- tion of $10,000 was made for the Tennessee exhibit at the New Orleans Exposition.
April 15, 1886, the distinguished statesman and jurist, Hon. Howell E. Jackson, resigned the position of United States Senator in order to accept the position of Judge of the United States Circuit Court. This place had become vacant by the death of the able Tennessee jurist, Judge John Baxter. Gov- ernor Bate appointed Hon. W. C. Whitthorne to fill the vacancy in the Senate. In 1893, Judge Jack- son was appointed by President Harrison a Justice of the Supreme Court of the United States, which position he filled with distinction until his death. August 8, 1895.
477. Governor Robert L. Tay- lor's Administration .- The canvass for governor in 1886 was one of the most remarkable in the history JUSTICE HOWELL E. JACKSON, L'uited States Supreme Court. of the State. The Democratic candidate, Hon. Robert L. Taylor, was known to the people under the jovial title of "Our Bob," and was the most popular stump speaker in
269
HAWKINS TO BUCHANAN.
the State. The Republican candidate was his brother, Hon. Alfred A. Taylor, who was known as an able orator. At every point during the canvass, the people flocked to hear the "two brothers." The fame of the contest reached tothe remotest parts of the Union. The Democratic candidate was elected.
There were no pressing State issues, and attention was directed to Federal pol- itics. The most exciting State event was the vote on the constitutional amendment prohibiting the sale of intoxicating liquors, which was defeated by a vote of 117.504 in its favor to 145,197 against it.
478. Education .- In educational GOV. ROBERT L. TAYLOR. matters there was a marked improvement. which was especially noticeable in the increased number of high graded schools established by municipal corporations.
In 1888, Superintendent Smith called a convention of the public school officers to meet in Nashville. Similar conventions had been called by Superintendent John Eaton, in 1867, and by Superintendent John M. Fleming, in 1873. but no permanent organization had been effected in either case. Under the call of Superintendent Smith, in 1888, a permanent organization was established, styled, The Public School Officers' Association, which has held annual meetings ever since. and has become a valuable factor of the public school system.2
In 1889, the National Educational As- sociation of the United States held its annual session at Nashville, and the city was thronged with educators from all parts of the United States.
The Legislature made a small appro- priation for the benefit of the Tennessee Industrial School. This institution, orig- inally founded and maintained by the munificence of Col. E. W. Cole. who sub- sequently donated it to the State to be
HON. FRANK M. SMITH, Superintendent Public Instruction.
2 See Tennessee School Reports, for the years 1890 and 1801.
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HISTORY OF TENNESSEE.
used as an institution for training wayward children to industrial pur- suits. The State accepted the donation. and, beginning with a small appropriation, has steadily increased it, as the value of the institution became apparent, until it has now developed into one of the most useful institutions in the State.
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