Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-05-22
Texas Correspondence.

Texas Correspondence.
MARSHALL, Texas, May 8, 1859.
1 hsVs received Several letters from Nash
vile aud other points of your State, Iaking in
quiries concerning the true condition Of the af-
airs of the Southern Pacific Railroad compa-
| N.Y. have therefore concluded to ask place in
your columns for tie following, which believe
to be a true statement of fects. Many Of the cit
1 liens of Tennessee and readers Of your paper are
are stockholders in this company, and therefore in
terested in knowing its condition. 1t is rot neces
sary for ne to 90 back 70 TIE foundation Of the diff
! feulti.s, in winch the company has been involved,
further than TO say, that sometime in the month of
November 1857, the Company found itself il de- t,
end in need Of money TO complete IT. first twenty
miles Of road la view of these facts the Pres der
executed a deed Of trust, conveying the road bed,
chartered rights ard franchises Of he company, to-
gether with its rolling stock aud other property, 10
trustees for the payment of its debts, and the secrr
ing of money sufficient 10 prosecute the work. Ur-
der this deed sale Of the propet7 therein spec fed
! took place on the LIST Of June, 1858. The puroha
ers imme liaiely organized and formed Joint Stock
Company, under the provisions of the act of tie
Legislature Of December 18th, 1857, and styled
! themselves the New Southern Pacific Railroad Com
| paDy. The Old Company deDitd the validity of the
deed of trust and the sale under it, and instiiut I'd
! suit TO set them both aside This suit has baen
compromised between the parties. The Old Compa-
ny agreeing to pay the judgments which have been
recovered against ii; aud then in regular inst al
ments the debts due the New Company, being prin-
| cpally the debts embraced in the deed of trust
| The New Company, on their part agreeing to re-
lease oil title or ella m they may have acquired to
the property by the sale of June /, 1857.
On the faith Of this compromise the suit of the
! Old Company against the New Company has been
dismissed, and tn Articles of agreement have been
signed By both parties think am safe in say
ing ihat all litigation from this source is at end
There IAN be no doubt but that this compromise has
J ham into unod faith and uiil ho foiF
fully carried out. There was another suit pending
| against the Company in our Diitriet Court that
! seemed to excite some spprehensiOns in the minds
of these who have written on the subject | allude
to the Salt of the State of Texas against the Com
pany for forfeiture Of its charter. This suit has
been called and disposed of. at last SO far as the
District Court is concerned.
! The question to tn power and right of the
Acknowledgement Governor 10 bring the suit I'M
der the existing laws of our State, up on ex
ception to plaintiffs petition And after hearing
full discussion upon the question, his Honor-Judge
FrsEer-dismissed the suit, and gave his opin-
ion that no power existed either IN the constitution
or any law of the State authorizing the Governor or
Attorney General to bring the suit; and that in the
| absence of direct law upon the subject, the only
power that could abrogate and annul charter was
| the power that crested it, viz, the Legislature
! solempIy declaring that the contract between the
State and corporation had been violated, and direct
ing that suit should be commenced in court of
competent jurisdiction, to ascertain the fact. And
that the court would entertain suit on behalf of
the State set aside its contracts unless it clearly
appeared that gross and palpable violation Of
| the charter had been committed. The opinion of
Judge Frazer, is clear, lucid and suggests itself to
the unbiased mind, with force that is impossible
to be resisted That this opinion will be sustained
! by the Supreme Court think is beyond doubt
But Independent of this one question, Judge
! Frazer reviewed one by one the different causes
Of forfeiture with the force and power that charso
terizes all his decisions, and gave it his opinion
that most Of the alleged causes of forfeiture had
been waived by legislative enactment. Even grant
| ing that the Supreme Court will the deci-
sion of the District Court, and declare that the
power existed in the Governor to order, and the At
torney-General to bring the suit. still the charges
cannot be sustained LIST. Because they have been
waived by legislative enactment, and second be-
the State will not be able to prove the
laid in its petition.
An act of the Legislature, passed February z,
1858, authorized the company to hold its meetings
at such times and places as they saw proper-clear
" indicating that the company might hold SUCH
meetings either within without the State. 1t is
unnecessary for me to discuss this question, and
will add that this being Of the principal causes
relied upon by the State, the attorneys for the de-
fence are unanimous in the opinion. after careful
examination of the authorities that this is
Of forfeiture Of charter; but that meetings ont of
the State are at least nullites and that the
State has jurisdiction over them. The other
charges are Of like nature, and the council of
opinion that the suit for forfeiture cannot be
tanned upon all either Of them The citizens
generally have taken the matter in hand, and have
by resolutions and petitions requested the Governor
to dismiss the suit, and we have every reason to
believe he will comply with their request. Foreign
stockholders may now lay aside all apprebeRsions
concerning this suit and rest satisfied that 1t needs
only united energy and exertion to carry the road
into completion. / of the opinion that the diff
culties through which the company has passed will
in the end prove its salvation. Certainly this will
be the means of doing much good. Experience has
taught the company a severe but valuable lesson.
The eyes Of the stockholders have been opened to
the reckless and prohigat course of expenditure
that has characterized this company-acting through
some of It's oficials-snd steps have been taken TO-
wards retrenchment and reform. The annual ex-
penses of the company in the way of salaries have
been cut down from the enormous sum of eighty
thousand dollars to twenty thousand. The large
issues of stock have been curailed to its real none
tsry value. The company, from its inauguration,
has never presented so much vitality and life. It's
recent difficulties have been the means of drawing
the eyes OF capitalists to the practicsblity of the
enterprise since the advantages it presents for the
investment of capital. Some Of the first houses,
both North and South, have expressed willingness
to lend their aid to the company so soon it may
be rid of its difficulties aud to furnish the money
upon reasonable terms TO carry on the work.
here give what consider to be a true statement
of the affairs of this company, and believe with
those engaged in it that light may now be seen
ahead. J. 7.
THE On CONGRESSIONAL DIsTRIoT-"RIGHT SIDE
UP"-In the last issue of paper we published
the letter Of James W. McHenry declining the
nomination of the Democratic Convention at Gin
ten. We regret that Mr. McHenry is impelled to
this course from "Causes of a private nature" We