The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1856-01-25
THE TRANSFER BILL. AGAIN.

munication from Mai. Z. Wallace, In reply to
a note addressed him BY the editor Of that
paper, upon the subject Of transferring the
States Stock 10 the East Tennessee and
Georgia Railroad to The Knoxville and Ken
tucky Railroad Company. Maj. Wallace Ia
the President Of the former enterprise, and
Whatever he may say upon any matter affect.
ing its interests, may be presumed abroad to
carry with II the weight of his official position.
Without pretending to question the purity
Of his motives and his sincerity of intention,
we must express our regret that he should
have permitted himself to be drawn out
through the newspapers, as he is likely to be
and niisconstrued.. In order
to correct understanding Of his position in
this direction, we quote portion of what
appears in the Wing, promising that it was
written to private individual prior to receiving
the note from the editor Of that paper. AT.
ter referring to the fact that bill to transfer
the Stock had been introduced, he says:
~ nm altogether in favor of such transfer;
nm anxious rs you knop, as any one, for the
speedy building of the Kentucky Road, and
hope the State will favor them and grant any
reasonable aid they may ask. am individu-
ally pecuniarily interested in the work, and as
citizen Of Knox county, am anxious for
its completion. In the transfer of This stock,
however, have higher obligation resting
on me-the interest OF the holders of stock
in the East Tennessee and Georgia Road,
must not be overlooked, in such transfer, and
can not be by the Legislature, without the
grossest violation Of iusiicc to these men,
The transfer, without proper guards and re.
strictions, would be simply turning over the
East Tennessee and Georgia Road with all
lis interests into the hands of the controlling
power in the Kentucky directory-when par.
cellcd out TO contractors, it would be in no
better condition, MS it would be 10 the hands
ofNorthern men, owning also large amount
of stock in the Kentucky Road, in either case
this Road would be controlled by, and made
subservient to the Kentucky company
This is condition of things no sane
friend Of this company would ever ngree
to.
I have limited ut what conceive to be the
principal objections to loose transfer of
stock being made to the Kentucky Road
propose rs n remedy that such stock thus
transferred, shall not be voted on or otherwise
brought to bear in the election Of directors
or in the management of this road until five
years after the completion of the Knoxville
and Kentucky road, and the connection is
made complete with the Ohio River. ] pro.
pose, also, that before any other disposition
shall be made by the Kentucky road to other
parties, Of this stock, or any portion oft, the
same shall be offered on same terms TO the
directors of this company for the space of
fifteen days, that they may have the opportu-
nifty Of protecting the individual share holders
in this company from injury by the inJudcious
sale of said stock. have no doubt of one
fact that is, that this company can afford, and
would pay TO either the State or the Kentucky
Company, fairer price and better payments,
than any one else.
With some sueh wholesome restrictions rs
these, or others that our friends might sug-
gest, have made UP my mind to give the
measure hearty support, without them am
dead against the transfer"
There are two parties, or "partners," inter-
ested in the East Tennessee and Georgia
Railroad-the individual Stockholders and
the State of Tennessee. The Company is
managed by Directory, nine Of whom are
appointed by the individual Stock, and
nine by the State. The President is n
Director on the part of the individual Stock.
holders, and the individual Stockholders, so
far as we have been able to learn, and we
have taken some pains to ascertain facts,
are dead against the transfer, either with re.
strictions or without We cannot be mista-
ken in this. Some time ago a proposition,
originating ut Knoxville, was before the Board
of Directors proposing that the East Tenncs-
see and Georgia Company should subscribe
for large amount of Stock in the Kentucky
Company. That proposition was preferable
to this transfer measure, but it met with no
favor, and was promptly rejected, on the
ground, among other objections, that such
would be illegal. We do not
profess to be versed in the subtleties of
the law, but we believe the Legislature has
no legal right to dissolve the partnership ex.
sting between the State and the individual
in the manner proposed with.
out the consent of the latter-that is, one
member Of the firm cannot, without manifest
injustice, arbitrarily release itself from tho
resting upon it by transferring its
interest or dsposing of it in n manner that
will result to the injury of the other mem.
Der Of the frm-in other words, to appoint
its successor without the consent of the other
party equally interested. We do not believe
the transfer could be made without IN amend
ment to the charter, and it has already been
decided that an amendment to the charter is
not legal and binding without the consent of
the Stockholders. We will readily admit
that the Legislature might very properly pass
an act authorizing the proper authorities to
sell the State Stock in the East Tennessee
and Georgia Railroad whenever, in the esti-
nation of such authorities, The interests con.
cerned would be enhanced by such sale. And if
II is desirable that the States interest in the
enterprise should cease, that would be the
proper and legitimate mode Of procedure
II would then fall into the hands of individ-
uals at something like value, who would feel
that they had IN interest in the success of
the enterprise, or the Company, if able, Us the
communication before us intimates, could
purchase itat fair consideration, and it might
thus DO made to result TO the benefit of all
parties. The proposition to transfer with the
proyision that tho Stock shall not be voted