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

paper, upon the subject OF transferring the
States Stock in the East Tennessee and
Georgia Railroad to The Knoxville and Ken
lucky Railroad Company. Maj. Wallace is
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 it 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
misunderstood and msconstrued 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:
81 am altogether in favor of such transfer;
am anxious as you knOlc, 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 pecunarily interested in the work, and as
citizen Of Knox county, am anxious for
its completion. In the transfer of This sock,
however, have higher obligation resting
on me-the interest of the holders of stock
in the East Tennessee and Georgia Road,
must not be orerlooked, in such transfer, and
can not be by the Legislature, without the
grossest violation of justice to these men,
The transfer, without proper guards and re-
strctions, would be simply turning over the
East Tennessee and Georgia Road with all
its interests into the hands of the controlling
power in the Kentucky directory-when par
celed out to contractors, it would be in no
better condition, as it would be in the hands
ofNolthern men, owning also large amount
of stock in the Kentucky Road, in either case
this Road would be controlled by, and made
subseryent to the Kentucky company
This is a condition of things no sane
friend of this company would ever agree
to.
have limited at what conceive to be the
principal objections to loose transfer of
stock being made to the Kentucky Road.-
| propose as Il 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 of it, 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 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 Stateor the Kentucky
Company, fairer price and better payments,
than any one else.
With some such 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 a
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 the facts,
are dead against the transfer, either with no.
strictons or without. We cannot be mista
ken in this. Some time ago n proposition,
originating at Knoxville, was before the Board
of Directors proposing that the Fast Tennes-
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
subscription would be illegal. We do not
profess to be vcrsed in the subtIetios of |
the law, but we believe the Legislature has
no legal right to dissolve the partnership ex.
listing between the State and the individual |
Stockholders 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 the
obligations resting upon it by transferring its
interest or disposing of it in 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 tran sfer could be made without an amend
mcnt to the charter, and ii 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
m act authorizing the proper authorities to
sell the State Stock in the East Tennessee
and Georgia Railroad wherever, in the esti-
nation of such authorities, the interests con.
cerned would be enhanced by such sale. And if
it is desirable that the States interest in tho
enterprise should cease, that would be the
proper and Legitimate mode of procedure
It would then fall into the hands Of indivd-
uals at something like value, who would feel
that they had an interest in the success of
the enterprise, or the Company, if able, as the
communication before us intimates, could
purchase tat.n fair consideration, and it might
thus be made 10 result to the benefit of all