Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-05-21


I have received several letters from Nash
vile and other points of your State. LlakiDg in
quries cOncernipg The true condition Of the af-
airs Of the Southern Pacific Railroad eompa-
ny-I have therefore eonclu' ed t. ask a place in
your columns for TIE following, which ] believe
70 be true ststemeut Of facts. Many of the t
liens of Tennessee and readers of yonr paper ere
are stockholders in this company, and therefore in
terested in knowing its cond tion. 1t is not neces-
sarY for NE to back to the foundation of the diff
fealtis, in which the company has been invelved,
further than TO say, that sometime in the month of
November, 1857, the Company found itself III del t.
and in need Of money TO ccnIleie tire first twenty
miles Of road 10 view of these facts the Pres deIt
executed deed Of trust conveying the rosd bed,
chartered rights and franchises of the company, TO-
gether With its rolling oek aud other property TO
trustees for the payment of its debts and the s6ear
ing Of money sufficient 10 roseeuie the work. Un-
der this deed sale Of the prope;F therein spec fed
took place on the let Of June, 1858. The purehs.
imme iistely organized aud formed JOINT Stock
Company, under the provisions of the act of tie
legislature Of December l9ih, 1857, and styled
themselves the New Southern Pacific Railroad Com
parry. The Old Company deni, d The validity of the
deed Of trust and the sale under it, and iosti ut d
suit TO set them both aside. This suit has been
compromised between the parties. TIE Old Compa-
ny sgFeei G to pay the judgments which have been
recovered against it; and then in regular install
ments the delts due the New Company, being prin-
cfpaiiy the 0ett5 embraced IN the ue6u OF trust.
The New ComIa any, their part, agreeing to
lease all title ca m they msy have acquired to
the properly by the sale of June l, 1857.
On the faith of this compromise the suit of the
Old Company against the New c. mpany has been
dismissed, aud th articles Of agreement have been
signed By both parties. think am safe ia say
ing tht all litigation from this is at an end
There can be no doubt bat that this compromise as
been entered into good faith, and will be faith
fully carried out. There was smother suit pending
against the Company in our Dnriet Court that
seemed to excite some sPprehensioDs in the minds
of those who have written on the subject. sllude
to the Suit of the State of Texas against the Gem
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 10 tn power and right of the
Auorne VEG General or werner bring the suit un.
der the Ell ting laws of State, up on ex-
ception to plaiit ifs pc iton. And after hearing
full discussion upon the question, his Honor-Judge
FrsEer-dismissed the suit and gave it IS his opin-
ioD that power existed either IN the constitution
any sw of he ate, 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 snIul charter, was
The power that ortseI il, viz, the Legslsiure-
solemDly declaring that the contract between the
State aud corporation had been violated and direct
ing that suit should be commenced in court of
Competent jursdic ion, 10 ascertain the fact And
the state set asi lie lis contracts unless il clearly
appeared that some gross aud palpable violation of
the charter had been committed The opinion of
Judge Frazer, is clear, lucid and suggests itself to
he unbiased mind, with force that is impossible
to be resisted That THE opinion will be sustained
by the Supreme Court, l ia INK is beyond doubt
But independent OF this one question, Judge
Frazer reviewed one by one the different causes
Of for eiure with the force and poger that eharac
terzes al his decisions, and gave it as his opinion
that most of the alleged causes of forfeiture had
been waived by legislative enactment. Even grgn-
ing taat the Supreme Court will reverse the dec-
sion of the District Court, and declare that the
power existed in the Governor order, and the At
General to bring the suit still the charges
caunot be sustained LIST. Because they have been
waived by legislative eRac,meat, AMI second be-
cause he State will not be able to prove the case as
laid in It's petition.
An act Of the Legislature, passed February Z
1858. authorized the company TO hold its meetings
such times aud places es they saw proper-cesr
ly indicating that the company might bod such
meetings either within or wi hout 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 Stste the attorneys for the de-
fence are unanimous in the opinion, after careful
examination of The authorities, that this is cause
of forfeiture Of charter; but that meetings of
the State at least mere utilities, and that the
State has q jurisdiction over them The other
opinion that the suit for forfeiture cannot be sus-
tanned upon all or either of them. The citizens
generally have taken the matter in hand, aud 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 spprehensions
concerning this suit and rest satisfied that it needs
only united energy snd exertiln to carry the road
into completion. l an of the opinion that the diff
cuties 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 severe but valuable lesson
The eyes of the stockholders have been opened to
the reckless and profit. ate course Of exJendi ure
that has characterized his company-acing tbr ugh
some Of III oficisls--snd cps have been taken to-
wards retrenchrqent and re orm. The annual ex-
penses of the company in The way of sasries have
been cut down from The enormous sum of eighty
Thousand dollars TO twenty thousand. The large
issues of stock have been curailed 10 its real none
tsry value. The company from It's inauguration,
has never presented so much Vitality and lie It's
recent diff ;ulties have been the of drawing
the eyes OF capitalists to the pracucabhi'y of the
enterprise since the adVen agss il pres for the
inve tuent of capual. Some of the f s. houses,
both nth and Sou h. have expressed willingness
to leud their all the company SO coon as it may
be rid Cf its difficulties, and furnish the money
upon re 4soa 8be terms 10 carry the work
l here give what consider to be true stStement
of the 6fs 70 of this company, aud believe with
those engaged in it that hgnt may now be seen
ahead. J. 7.
The % CONGRESSIONAL DIsTRIcT-"RIGHT SIDE
UP I'm the last Issue of our paper published
the letter Of James VI. McHenry deolin ng the
N ~ bo n If