Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-05-24
The southern Pacific Railroad.

stantially, that in the winter, Of 1872, the
Legislature of Texas Incorporated company
under the name of the Texas Western Rail-
road Company, giving the same large land
bounty, eight sections to the mile, upon GER
tain conditions. ROBERT j. WALKER and T.
BUTLER KING were the principal operators in
this enterprise, the former taking some eight
or ten millions of the stock in his own name.
The company held its business Office in the
city of New York, and there transacted all
its financial operations. Messrs. WALKER and
KING spent much of their time in Texas in
1852 and '53, and finally obtained condi-
tional loan of money from the State OF Texas,
to build the first section of the road. One OF
the conditions was that the company should
indemnify the State by deposit of bonds
with the Treasurer of the State, to the amount
s3OO,00O The deposit was made, but the
bonds proving worthless, the loan was never
completed. In the meantime agents were
passing through various sections of the coun-
try. obtaining stock subscriptions the
road was being commenced and slowly pros
ecuted. The New York company was rather
dark in its transactions, and the impression
became current that it was engaged in de-
liberate attempt to diddie the community.
How much stock they obtained, and how
much money, we have no means of knowing.
The company, at any rate, soon after, went
down. After the necessary diplomacy, new
company was organized, with the consent OF
the State of Texas, under the style of the
Southern Pacific Railroad Company, which
took tie place and franchises Of the old COM
pany. To this new company the State dou-
bled the proposed land bounty, and subse-
quently consented to loan the company $4,000
per mile, in money, to carry forward the
work. In March or April, 1857, the office of
the company, with all its books, papers, &c.
was removed to the city of New Orleans, and
GEORGE S. YERGER, elected President. The
newspapers throughout the South teemed with
favorable notices of the new company, while
the company itself was proposing to receive
stock subscriptions, to a limited amount, in
various sections of the South-Mobile, Mont
gomery Charleston, Knoxville Nashville,
Memphis, Louisville, st. Louis, Natchez, &C.,
were the principal points at which books were
opened. This subscription was intended to
build the first section of 20 miles of the road,
whereby the Texas land bounty and money
loan would be secured, which would furnish
ample means to build the road. The stock
holders, in this new issue, were required to
pay $500 per share, and receive certificate
for 500, all paid in. Thus the road was to
be constructed, and the stockholders to realize
fortunes.
But it now seems that even this liberal offer
was not sufficient to secure sum to complete
the first 20 miles, which was required by the
charter to be done by the LIST of February,
1858 and hence resort was had to a loan of
$4,000. This was obtained on deed of
trust on the entire effects of the company,
and it, with the salaries of certain officers of
the Company, and contractor accounts, were
secured in the trust deed which was made
Oct. 10Th, 1857. The road was then prosecut-
ed with success and the first section complete
within the time required nv thn rhartnr st.
-. A. 49, bonus and loan. just as |
a.. 20 accomplished, and the magnificent |
prospect is opened to the stockholders of a |
literal fulfllment of all promises, the compa-
ny is found to be wholly without means, and |
the payment of its dues are demanded under |
the deed of trust. And now the whole effects
of the company, together with all their rights,
privileges and immunities, are advertised to
be sold on the first day of June, prox. As to
what the liabilities and means of the company
actually are, at the present time, we have no
better information at hand than was ascertain
ell by a meeting of the stockholders at Louis
vile, on the 18th inst, and published in the
Louisville papers. as follows:
An interesting interchange of information
and of opinions as TO the condition of the
Company took place, during which the follow
ing facts were accurately ascertained
The whole amount of the present liabilities
of the Company does not exceed 100000
Its assets are
~ miles of road running order worth say 5000 900
instruments be received from stock 25O,Ou0
Bonds mortgages &c. ACKNOWLEDGEMENTS. $50, 900
Lands already purchased. 22O,090
sl,5iO,OoO
Upon the completion of three miles more of
the road the Company will be entitled to 256,-
600 acres of land. which estimated at only
two dollars per acre, will yield the sum of
$4,000.
A contract has already been made for the
construction of so miles, making in all 20
miles of road for which there will have to be
paid in cash Sl2, 900 per mile, and the total
cost of which may be safely estimated at not
more than So, 900 per mile. Upon the COM
pletion of this contract the company will be
entitled to 400, 500 acres more OF land, which
1t the very low estimate of 50 per acre, will
yield 1921 500.
Upon the completion Of this contract there
fore, the company will have seventy miles of
The road in running order, and, after the pay
nent of all Indebtedness, will have surplus
assets, even at this low estimate, amounting
20 about 50 100000.
From the statements made, it appears that
the deed of trust was executed by the Presi-
lent ostensibly to procure the completion of
the first twenty miles of road in order To Sc
.ure the charter Ii was originally intended
20 cover only about $40, 900 of the debts, but
has been covertly made TO include all the in
iebtedness OF the company, but the parties
Who are understood to be urging a sale under |
he deed coutroi claims not exceeding $780,
100. 1t was stated by the President of the
company, in his circular Letter of January
asst, that these debts had been provided for,
md il was subsequently reported that the
Iced of trust was cancelled.
Ii appears however, that the claims and
he deed still exist, and il is presumed to lac
he object of parties urging the sale, to take ;
advantage of the provisions OF the deed 10y
orcing summary sale without notice 10 The
or to any of the directors who !
re not in collision with them, and, by be-
oming the purchasers of the road, TO secure
O themselves the untold wealth to be derived
rom it,
This meeting estimated the demand under /,
be deed of Trust at 100000; but Com
Mite of the directory at New Orleans, few '
lays ago, reported that the amount required
o cancel the deed OF trust was abolt $3.50, 900,
'hich report was concurred in. "There Is $
omething rotten in Denmark" evidently, and c