Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-12-02
From the Cincinnati Gazette.

will surprise the ardent advocates OF that assocla
ton of spectators, and confirm the fears and pre-
dictions of those who knew the original MANAGERS
of the enterprise too well to trust them. The Re
publican saws:
Recent Developments in relation to the move
mauta of this rompany have heen Of a remark bic
character well calculated 10 create profound sen-
satiOn, not only among those who are p'cunlarilY
Interested in It's nperatious aad the public abroad,
hut particularly 10 the people Of Texas, who had.
within the lest few months, been induced to believe
that it was in prosperous condition, and to prom
se themselves the most g tterng results from its
labors Our rea6ers will recoIiect that some time
last spring the domicil of the comp my was trans
ferred from New York to New Orleans, and that Mr.
George s. Yerger OF Mississippi. called to pre-
siae over it's destinies. They remember his report
of its financial condition, which, with the high
character he bore for his integrity and ability, the
associ tons with which he to BE- surrounded,
and that it was to be hereafter a Southern enter
prise in the hands of Southern men, gave it ex-
traOrdiuarv impetus. The New Orleans press was
exuItant. Column after column WIS poured forth
by the leadng journals of that city upon the char
acter and quail fcations of Mr.. Yerger, and the
facilities with which fortunes w"re to he made by
the investment of money in this enterprise.
We are informed by these journals that the Of
fees where this stock was offered for sale were
crow led from morning till night by greedy pur-
chasers and in short time the gratifying intelli-
gence wss announced that 5000 600 in cash had
been raised to prosecute the work Then follow
ed the arrival Of the iron ani two locomotives, all
on the ground, paid for, and ready for the road,
considerable portion of " ch was graded
Doubt and distrust gave way before these evl
dences of prosperity, confidence and determine
ton Evrn We, who had been satisf d that there
was an amount of "dead weight" on tie conc IN,
amounting to millions, and who lad placed no con-
id"nce in Mr. POST report of October, 1886, came
I he haf vi m IA ZEN.
that astute men would not be k ly to hazard their
Judgment or invest their capital in falling and
bankrupt enterprise, and hence we herame con-
vert out and out believer, in the Southern Pa
cifc Railroad Company. So far so good. Affairs
mt on charmingly for several months, until the
crash in the North, and the rec-Dt suspensions ia
New Orleans. No apprehensiOns of danger exs
ted here, bee use it was thOught there were sew
eral hundred thousand dollars in the city awaiting
drafts from this section. jung Of the constrrna-
ton, which manifested when the news came
Ike ''clap of thunder in clear sky" that
all the drafts sent below, and which reached New
Orleans on the llth ana 18th inst, had been pro-
tested.
1.-THE failure of Nessrs Stillman, Allen & Co.,
of New York, is said 10 have occasion these
protests. And We deem it proper to say that We
have seen a lett FROM New York, dated the 9th
inst. to a distinguished member of the railroad
company here. aud which he thinks written in
good faith, in which the promise is made to furnish
SOU,UUO specify, 70 pay on the u''NLS OF the com
plDy, and for present operations
On the 18th or 18th OF the present month, Mr.
Yerger the President of the road, made bis ap-
pearanca in Marshall and remained several days
during which time We observed that something
usual was going on. The day after he lett
derstOOd that the Massrs. Brown had closed their
contract with the company, and that the President
and Directors here had executed deed of trust,
which was recorded in the County Clerks Office,
together with a memorandum of the contract with
the Messrs. Brown. These documents occasion.
ed considerable interest and excitement, and
many of our readers and the friends and stoekhOld
ers of the road wOuli like to them, we publish
them entire.
Here follows a deed of trust execut d by George
s. Yerger President of the Southern Pacific Rail-
road Company, as party of the first part, TO Benz
Long VIM Bradfeld and ]. X. Yerger, as party TO
the second part, wherein oil the lands of the COM
lauy within the county OF Harrison, together with
he whole road bed of the road between Marshall
md the Eastern terminus at Swenson's Landing,
he iron laid down or on hand along the line, the
wo locomotives, the chairs, spikes and cars, and
III the franchises and privileges of the company
within the State of Texas are "bargained, sold,
transferred, conveyed and released" to the said
party of the second part, to the payment of
list of debts Their nafter Damed, reserVng the
igit to contract preferred debt to the amount Of
$50 900, for the purpose of carrying forward the
york necessary to save their charter from for
eturP.
The Republican proceeds to comment upon this
document. We quote:
This deed of trust is in many respects an extra
ordinary aud in xpljeahle document II will be seen
hat a sale of the charter, privileges and property
IF the company is contemplated. In other words
hat in the event of failure TO raise the necessary
unds 20 pay off the debts enumerated that the
concern is to be sold out in January.
Il is understood here that this step has been ia.
ken (withOut reference, perhaps, TO the detas)
with a full knowledge and SANCTION of the directory
below What is its object or purpose Is not clear
" known or defined. 1t is said that over issues of
stock have been made by the original controlling
parties in the North to an immense amount, sufi
cient to form incubus TO PROSTATE the comp4n,;
that hunireds If thousands of dollars OF stock
held Y persons who never gave anything for it
that the books of the company have never been re-
moved from New York TO New Orleans, an that,
cons, queutly, it is not possible TO ascertain how
much stock has been issued and sold It's there
for indispens bly, necessary that the whole affair
SHOULD be sold out and chanze hands. In the new
organic alton the real debts OF the company are to
be recognized also all the legitimate stock upon
which assessments have been made. How they
are to make this discrimination in stock, and to
sep rate the good from the bad, aud wheth there
is an immense amount not specified or known, upon
which cash has been paid, remains to be seen.
Others again suppose that it is simply intended
uey market to raise sufficient money in Texas to
finish the twenty miles OF road, and the c1ar.
Ter. That then the lands from the STATE will ne
Available 10 pay the debts Of the company and set
all afoat again.
No mstter what may be their object il is certainly
extraordinary that IN a decd of trust the President
and Directors should have provided for themselves
IA preference TO the actual creditors of the CON-
oany. They have not only done this, but have
given preferences for stockhold r., for whose beue
&c also il appears the road aud its charter is TO
Iold out. Several AMOUNTS are to be paid, il is
stated in this document to certain parties, without
Mentioning the consideration.
These gentlemen are known in this community
IS the holders of hats commonly known as paid
took :" which embraced a portion OF the purchase
or the sale of she Texas charters. Can the road
,e sold out for mch obectsP II IL not, why
vas this deed of trust given? The Dir, ctors meet
q New Orleans 10 December ensuing, and it is due
O themselves as well as TO the stockholders, that
here should be general overhsuling of she affairs
e the company, and that what Is done should be
lone openly and above board. The real financial
condition of the company should be published TO
he world.
The actual Indebtedness of the company is said
lot to be very great, and can be easily met when
he go, 600 acres of land are secured from tue
tate by the completion Of the first twenty miles
( the road But be it remembered that this il a
natter of no little moment aud apprt eEsio0- The
wenty miles have to be eOmpiet anu in running
rider by the 10th OF the ensuing February, aud the
question is, can it be dOnes But about sixteen
r seventeen miles OF track 70 be laid. IL wall re-
uire active and vigorous exertOns. In the mean
ime, Mr. Grant has gone 70 work, portion Of the
Boney required has been raised aud 40 efforts will
10 spared 70 save the charter.
eEs- Senator Gwin will, al an early day OF the
esson, utrojuee bills into Congress, which be IS
ow preparing for she Organization OF the territory
e - -. a ,t,s. .ts-r;tr-v ~ Sire Nsdrs Vis