Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1858-01-02

To the Stockholders of the southern
Pacific Railroad Company.
The BOARD of Directors have been investigating
all the affairs of the Company, with view to ma
king report.
After The organization Of the Company at this
place, in April last some unsettled claims existed
against the Company, and the Executive Commit
tee at New York, who knew more of those claims
than the dire ctory here, we're intrusted with the
dcty of settling them. Rumors of fraud in these
settlements, and of the fraudulent Issue of stock,
and charges that the Executive Committee in N5w
York were issuing stock in lar quantities at one
dollar share or which five dollars a share was
knowledged to have been paid, were widely circu-
lated, greatly to the injury of the oper tons and
prospects of the company. Iniorder to satisfy the
stockholders that such charges re untrue, the
Executive Commit demanded investigation
Of these rumors, when after full investigation of
a committee, there unanimous concurrence
of opinion that no frauds had been committed and
that stocss had been sold and issued either by
the Exc cutve Committee in New York the COM
pany at New Orleans under par, and their report
was concurred in by the Board of Directors. 1t is
not deemed necessary at this time to present full
and detailed account of everything connected with
the transactions of the company. All these par
ticuars will be laid before the stockholders in the
yearly report which will be submitted to them in
due time The company i now believed to be in
b. tier condition thar it at lis organization in
New Orleans in April last.
Ii will b. sufficient to advert TO the pr. sent actu-
al position of the company and Its immediate pros
PEGS with references TO the amount OF money at
toe credit of Capital Stock" for stock issued as
per statement of the President, April, 1857 The
amount then represented was 50, Ala 100 90
To this may justly be added inter
est paid in stock on the above
amount 39345 10
Add stock issued in New Ofleans 1922 7S2 So
Making in all total issue of stock
as of that date to the amount OF 50 $50 9lS 04
But an agreement has been made by
which part of the assets on hand
have been sold. to be paid for in
the capital stock of the company,
and which, when carried out, will
reduce the outstanding stock
to 1885, s94 %
In addition 70 which there is an
amount Of 5000, 600, which the
Board of Directors believe will be
c.ncelled 200 600 90
Thus it leaves the total amount of
stock issued 1896, s64 95
Making actual reduction in stock
issued to the amount of 47O,O63 90
The company have entered into positive con
tracts, which will, the Board believe, insure the
rucrion oftwenty miles of the road by the 9Th
of February mkt. About twelve miles are COM
peted leaving ouy eight more to be finished; ami
as the light miles graded, and all the iron Is
upon the ground. two locomotives, construction
care, chairs, spikes, and everything neres-
sary to complete that distance, the Board have
every confidence that the requirements of the
CT arter will be complied with. Five miles IN adj
clifton to the twenty owe mentioned are already
graded and all the iron and other material neces-
safy TO lay the track is on the spot. As soon
rs these ad ition4l five miles completed
the company will receive $4,000 acres OF land
from the State of Texas. This ldnd has air -ady
been surveyed, and is reported to be Of sup rior
quality. Messrs. j. T. Grant Co, are undrr con-
tract to grade seventy miles of road, and provision
has be. made for the prosecution OF that work to
completion. In October last when the co uTuer-
cial cr-s swept over the lind, creating emoarrass-
ment and failures OF some OF the strongest houses
10 al parts of the Union, the company found il
impossible to raise means either 10 pay their c1-
listing Liabilities or prosecute their work. With a
view of saving the charter of the company, and
to induce parties to loan money to prosecute the
work, at least the extent Of twenty miles, deed
OF trust was executed by order Of the Directors
The ex cution of this deed OF trust had the effect
of inducing parties TO come forward aud iurnIsH
means, whereby the work was uHimpeded IN It's
and the charter protect, d. Arrange
ments have been made by which all the debts en-
bracet in the deed Of trust are provided for, and
by hich the deed Of trust viii be nceled.
Tn Executive Committee of New York having
requested that said committee should be abolished,
the request has been granted ami in future ali con-
tracts and engagements must be made here SUD-
iect to the action Of the Board of Directors.
The transfer Office is rc-opened in New York,
and r ~ Stratton is appointed Assistant SecTeta-
i ,,,..,v 4,
win Post, the Vice-President of the company.
Stock may be transferred on the books of the COM
pany, either at the transfer office in New \ ork,
or at the office in New Orleans, and new GER
tifcates obtained for old surrendered.
Interest certificates c1G ill all cases be Is
sued at either office, but no holder of certificate OF
stock can receive his interest without the presenta-
ton of the certificate of stock which said iu-
terest has accrued. A financial system has also
been adopted by the company, by which 1t Is be-
believed its bonds, secured upon its lands and
property, will take the highest rank among good
securitits either at home aboard, so as to ena-
ole the company to progress without selling more
stock than ordered to be sold last spring
About $500, 600 Of that amount still remains un'
sold, and it is not contemplated to issue any 9th
stock.
In conclusion it is proper to tatethat an install
meHt of fifty share will fall due on the first
Monday of January next ON all stock on which SO
so share has been paid
A il stock on which inst ments not paid will
be iablA sale under the 9th section of the char
er a copy of which is annexed:
SEC. 8. The shares may disposed of, and books
opened for subscription thereto in such manner and
on such terms as said commissioners shall deter.
mine will be for the best interest OF said company
and any ayr, in writing, ty which any person
shall become a subscriber to the capital stock oil
said company, may be enforced against him accord
ing its rms; and if any subscriber shall fail &c
pay airy amount due upon shares subscribed 10y him.
according to the terms of his subscription, the or
ectors may So II at auction and transfer TO the pur
chaser tue ehares of such deli quent; and If the
proceeds of sale shall not be sufficient to pay the
amount due on said subscription, with interest an
charges such delinquent shall be held liable to the
company for the deficiency; and if the proceeds
shall exceed the amount due, with Interest and
charges, said delinquent shall be entitled to tbs
surplus.
Instalments may he paid either at the office II
New Orleans or at the Tranfer ofhct in New York
at the pleasure Of the holder OF scrip stock.
All of W ch is respectfully submitted.
This report was advpted by unanimous vote.
The election of Directors is postponed to the fire
Tues iay in May next, aud will then take place a
the Compsny's office in this city.
BY order of the Board.
GEO. S. YERGER, President.
GEO c LAwRAsos, Secretary.
New Orleans, Dec. 22, 1857.