New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1859-05-02

Company shall be transferred to sueh persons as the
last Board Of Directors Of the Old Company may de-
sgnate subject to all the conditions liabilities aud
entitled to all the rights Of the Old Company under
promise
IL. The New Company shall not make any further
contracts and are to maintain their present status
one OF the defendants in the State SUITS until is
w, uisPosea OIL giving our company all the bene
L. Two companies pledge themselves to carry out
IN good iaith the terms of this settlement neither
can pc 6enentted by violating its spirit and meaning
To- Ihey agree, II necessary, to make on liberal
terms any supplementary agreement that NAV be
found necessary to carry out this agreement to pro
tect the rights Of the parties; and to construct the
IA. All items embraced in schedule A. which have
or may be paid BY or for the Old Company are to be
credited on the gross indebtedness stated in the set
emsnt and stock IN the New Company shall issue
ior the same considerable amount of which has
been already settled and is now held by the Old Com
pany, OF this Indebtedness.
II Will be seen by the terms of this settlement that
6oth companies are united in interest in defeating the
that purpose.
y VIII also be that both are united in friendship
ana good faith to carry the OUT to build the road
anu M ,h 18th the public good the oganza
llon OF Inc New Company may be continued and pre-.
served, and may finally take the place and stand of the
0ld Company, thereby becoming the Southern Pacific
railroad Company. There are some weighty consider.
a1lohs ior this view Of the subject There might posi-
bly, be in the opinions of some grounds Of for.
teiture good against the Old Company, which would
not he good against the New Company. In that
event. our stockholders who have, and do now come
10 our help and rescue, would only have to march
INTO this ark of safety. and leave their rebelious
brethren in the ruin pending over the Old Company.
Such rescue for the one, and loss of the other
would be only just and merited 1t is hoped, how.
ever mat all In spirit Of justice will promptly
spond to now retrieve the company and provide
means to progress with the road. 1t will be further
seen That upon the payment security therefor of
one hundred thousand dollars, we get the absolute
we should pay our debts. A great company cannot
expect to obtain and preserve the confidence of the
public only by strict adherence to the great prin
ciples OF Justice and integrity. Upon this palladium
1t can stand, and construct for itself name as imper
lshable as its great work.
| The New Policy-Reduction of Stock:
| After we had accomplished so much for the relief
and solid prosperity of this company, we deemed it
put right to inangurate new policy of administra-
ton, in conformity to the expressed views of our
stockholders at the Louisville Convention in Noven-
Der last In attempting to adopt policy, it became
paramount object in our judgment, that it should
oe sound, and such an one as the enlightened ndg.
ment Of the business world would approve as sound
and solid. We had to look to our condition, our
wants, necessities our rights, and duties and strike
out from these elements path that all could travel
ana one That would offer inducements to our paying
| stockholders and the capital of the world seeking
secure and profitable investments Upon full and
mature consideration we had the courage to do what
TO our Judgment seemed the best for all relying upon
your judgment and capitalists generally for our SUP
port.
1t appeared to us that we should reduce our CAPT
tai stock one half thus bringing it down to sum not
exceeding sl,25oooo Our property and our assets
after the payment of our liabilities, which did not
exceed 100000 now reduced, since the adoption of
our late policy, by the conversion of debt against
the company, into its stock, at par, by creditors,
amounting to about $40 900 leaving our liabilities
thereby 1lu uipIto inn
the wisdom of the policy lately inaugurated
Ihis reduction is applicable to all our outstanding,
forfeited and surrendered stock it reduces onehalf
both the nominal and actual stock issues of the COM
pany In the valuation of property a large item
is 256000 acres of land at the rate of l6 sections
per mile, for % miles of finished rood which is esti |
mated ny the surveyor at the value of from FIVE to
ten dollars per acre but for our purpose now we es
innate at the low price of 50 per acre. See summary
appended hereto.
These lands are already surveyed and located and |
the field notes returned, and the same are in cond-
ton to be patented, upon dismissal of State suit
The road now built is estimated to be worth $685..
900.
We have other assets and property worth about
four hundred thousand dollars. Nothing here is said
OF the value OF the charter, which is estimated by
calculating and pradent minds, to be worth MIL,
LIONS OF DOLLARS.
Whatever may be the. value of the property and
franchises of the company, all belong to the stock.
holders and only to them The stock represents these
values, and carries them by assignment and transfer
1t alone takes the dividends and profits of the com.
pany and as long the proper relation is preserved
between the stockholders it can make no difference
whether the aggregate quantity of stock is represent
ed by one quantity or another-bya greater or less
number OF shares If it makes no difference in the
aggregate, it makes none in the integral part.
1t is the same thing to A. if you say he owns the
one-tenth Of one hundred, or onefifth of ffty It.
therefore, follows that the reduction of stock does
neither make the holder the richer or the poorerbnt
it has these beneficial results brings the stock m
to par, and makes it sought after by capitalists If
we sold it before at 81 so per share, we sell it at
s. per share, the par value thereof 1t brings the
stock down to the basis of the value of the property
and upon this basis our stockholders or other capital
sts may safely, and will greedy invest. 1t removes
the idea of fancy or bogus stock which has exten.
sively existed in the public mind; and it shows that
we intend to be governed by sound practical views of
business in the future management of the company.
We have authorized the sale of stock, to produce
= 800 900 for the purpose of paying off every dollar
of our debts, and buying negroes, and constructing |
the work with rapidly and certainty.
=, Arrangements will be made to sell this stock
throughout the United States until the required
amount of money is raised. The privilege of exclu
sive purchase for ninety days is given TO our own
stockholders to take all this stock. If they will not
do it, then we will offer it to others, for we must have
the money to free the company from debt and to pro-
gress with the work 1t is expected that every stock
holder, who has not already done So will at an early
day lend to the company fifty cents per share ppon
the whole number of shares now held. Some have
done this; their money has been and will be nsed to
| |
If all expect to share in the salvage all must con.
tribute equally If, however, any one will remain OBJ
stlnate and disregard common interest and A com
mon duty, thus abandoning his own interest in the
wreck as well as that of his associates he cannot and
must not expect to share in the salvage or in the re-
suits OF their contributions! 1t would not be lust and
right to permit him And if I would protect (Which
wonld gladly do, if l could) those noble men who
have stood by me aud held up my hands and con.
.rihnted their money, would not permit me to do so
Such an obstinate and perverse stakeholder must look
out for himself he has left the company and his
associates to dol And it may be we'll enough to fore
warn all such that the legal means and power are at
oand to cut him off under the laws of Texas, The
judgments heretofore existing against the Old Com.
Dany have been purchased and transferred to me- for
he benefit of all who have contributed their money.
md this policy can he enforced by sale Thus
new company can be organized The organization of
he New Company can be preserved and all who have
contributed money! either by loan the purchase Of
stock, can go into it. In either way, the refractory
nay be cut off; or, if he is permitted to retain his
interest in the company, his stock, under the new
policy, must be reduced two thirds instead of one half
which surrender will enable all to help who cannot
ender pecuniary aid to save all he hes invested in
he road, with vast ultimate returns All must prompt
y act I!
Reduction of Salaries, ,
We have reduced the salaries and expenses from
10000 down to about $l3 900. Economy in the ex-
'endltures OF money must be practiced by this com
,any, before you and the world can have confidence
n it. We must have droDes or sinecures Officers
must expect do their whole duty for reasonable and