Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-02-04
N
WEDNEspAY. FEB. 4. ls57.
Henderson & NASHVILLE rail Road.

Some few days ago some statements ap-
peared in our City papers in relation TO this
road, quoted from the Evansville Journal"
Ind, which were erroneous.
We were present at the convention of Stock
holders and Directors of this road, which took
place at Henderson, Ky, on the 10th of last
January, where all the facts in relation to the
Issuance and sale of the $e5O,O0 of the bonds
of this Railroad Company in London, during
the summer of 1856, by Sir VIM. Digby Sey.
mour, N p, were publicly exposed, and there
fore We speak advisedly.
Some time in 1854 by the direction of ma
! iority of the board of Directors $3.50, 900 of
the bonds of the company were issued, and
placed in the.hands of Barring & Brother'sLon-
don, for sale,-eitber for money, or iron and
other materials necessary for the equipment of
the road. The power of attorney made by
the board to this distinguished financial firm
was specific and explicit in accordance with
the strict requirements of the charter of said
Company. Thus far all was in conformity to
the only law that could govern in this and
similar cases to wit-the charter of the Rail-
road Company.
Il appeared from letters received by the
Board from this House, that they were una
bic to negotiate these bonds in London, for
the sum and purposes required. Hence it was
deemed advisable by the President W. G. Se-
bree and the Chief Engineer, Charles Sey.
mour, to proceed to London and see if they
could not effect their negotiation. Sir WIN.
Digby Seymour, then member of Parliament,
brother of the Chief Engineer, gentleman
not only of national notoriety, but Of reputed
financial ability, and who had previously me-
gotiated very advantageously, the bonds of
some Indiana Rail road Co., was deemed by
said President and Chief Engineer as proba-
bly, tbs best agent they could employ to nego-
tiate theirs. His position and reputation in
financial circles in England, and his relation to
the Chief Engineer, secured their confidence
and excited their anticipations-they there
fore employed him as the agent of the Ball
road Co., to dispose of the entire amount of
the bonds-$650, 900. Mr.. VIM. Digby Sey-
mour argued TO the President, Mr.. Sebree, the
utter impossibilty of his success, unless he
made to him in the name of the Henderson &
Nashville Rail road Co., an absolute sale of
the bonds without any reservation or condi-
ton. Hence the President did so, after he
proceeded to the legitimate agents of the Com
psny, Barring & Brothers, and procured the
bonds, by giving them a receipt for the same
in the name of the Rail road Co.
1t seems from the letters Of the Hon W. D.
Seymour, after repeated failures to negotiate
the bonds for money or iron and other equip
ments of the road, he finally disposed Of $780,
600 Of them for steamer called the 'Rose,"
which be purposed employing in the transport
talon of men and munitions of war during the
Orimesn struggle. The ship speculation turned
out an abortion from the immediate cessation of
hostilities between the belligerents thereafter,
aud the serious damages inflicted upon the
Rose, being run irto by another steamer while
moving up the Irish channel preparatory to a
trip, which placed her upon the Docks. Sir
VIM. D. Seymour, permitted the Rose to be
sold after the proclamation of suspension of
hostilities, for the mortgage.money then due,
and, he claimed that besides the damages for
repairs, the total loss of the vessel should fall
upon the Henderson & Nashville r. r. Com
pany, while they should also pay him COM
missions for the negotiation.
The present President of the Road, Gov. L.
W. Powell having been elected to this Office
! nao Oh IQ6S ,vban he ,,os Set nforpoad hx
letters from the said Seymour, the Agent, in
July, 1856, of the absolute sale made to him of
the bonds by the former President, Mr.. Sebree,
and the character of his speculation, with all
the accompanying facts, Immediately wrote to
the said VIM. d. Seymour that the whole
transsction-his agency-the absolute sale to
him of the bonds, and bis steamboat specula-
ton, were both informal and illegal, and that
the Railroad Company was entirely irresp0n-
si6Is for the payment of the bonds, or damages
of the vessel, or his commissions. Besides he
demanded of Mr.. Seymour througha newly
appointed Agent IN London, Mr.. Maxwell,
delivery of the residue of the bonds to said
Msxwall--which Mr.. Seymour refused to do.
The Stockholders and Directors at the meet
ing held on the 9th of Jan. last, unanimously
adopted that portion Of the Presidents Report,
which declared the sale Of their bonds by Mr..
Seymour, of London, as entirely null and void,
from the following considerations. First it was
direct and palpable violation Of the 2Sth Sec
ton of the Charter ofth Henderson d Nash
vile Railroad which alone relates to this mat
ter. 1t is as follows:
"28. No contract Of any kind, character or
description, by which the company shall be
bound TO pay any sum Of money, or part with
any right, or property or estate, shall be valid
or binding on the company, or shall be signed
by the president, unless the same shall be els
Their made, confirmed, or approved By a ma
j0rity Of The board Of directors, OF made 10 pur-
suance of authority expressly delegated by
them; and these facts shall appear upon and
be inserted in every such contract, before II
shall be signed and authenticated by the pres
ident.
Thua, from this section of the charter, which
is the only law that can govern in the case, It
seems that to make the payment OF these
bonds Of $4,000 obligatory upon the r. Z.
Company, Mr.. Sebree, the President, should
have been authorized to proceed to London
and take out Of the hands OF Barring g. Bro,
the legitimate sgenls-the $650,000 Of bonds
By a majority Of the BOard Of Directors. The
facts are THAI no Board of Directors over aa.
lhorized Mr.. Ssbres to withdraw the bonds
from the hauds Of this firns; nor have they
since approved Of his doing so. Again, no
no Board OF Directors authorized Nr. Sobree
the then President TO employ Mr.. VIM. d.
seymour As thsir agent Tor the sale OF the