Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-10-26

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npmber of our subscribers in Tennessee who en-
stock in this road, while they are indirectly int
cd in the States investment of over half million
dollars. This has induced to keep our readers
nosted on both sides Of the controversy now gong
on between the Kentucky friends Ct the enterprise
In this spirit we reproduce the following communi-
cation of a stockholder . from the Bowling Green
| Gasette Of the oath instant
| MEssRs EDToRs-When the question of the Louis-
vile and Nashville Railroad was first presented to
our people, it was urged by its advocates that it
would be great paying road and that its stock
would be valuable no one doubted the fact and we
sl believed that so great thorOughfare for travel
and commerce as If is bound to be- would not onlv
deyolope the resources Of our country but would
also pay well to the Stakeholder and il was with
this impression honestly entertained that our citizens
subscribed to the road, and voted in favor of our
county subscription. No distPust prevailed as to
the management of the road, and we were exhilara-
ted win the hopes THAI 1t would be fairly and hon
estly conducted. Under q favorable condition of
pubic sentiment it has been completed under as
favorable circumstances usual IN the construction
OF Railroads. Now it is finished may we not ask Its
advocates how long it may be before we begin to get
back something in consideration of our money sub
scrlbed and paid for it ard how much more. and
now much longer shall we continue to pay? We
were induced to believe that after finishing and put
ing the road into complete operation its net earn
lngs would pay the interest its debt and produce
something besides towards pa ing the principal of
It's debt, dividend 10 Stockholders that il will,
II properly managed, there is nothing clearer.
But if the company should continue to build branch
roads and stock them and keep them up upon the
responsibility of the main STEM we in this county
may never hope for dividends. But ii is suggested
that we need have apprehension upOE this point,
as the interest of the company demand no more
branch roads, and the law gives no authority for
branch roads to be constructed kept up upon the
responsibility of the main This may be true that
the interests of the company require no more branch
roads but the interest of Louisville does. And
now, ask. is not the interest of Louisville eXclu-
svely represented in our present board, so far as
the balance of Kentucky stockholders are concern
ed And will a Louisville board represent Louis
vile or represent the company! Are men apt to
do business for others TO the detrment of them
selves? see in a late report of March 80 1860
signed by the VicePresiden Of the board, that the
debt of the main line is S465j,5OO, and is conSt-
tuted of various items, 100000 Of which to
be for the Lebanon Branch Road S2Z5, 900 of which
the company agreed TO pay according 70 said report
but all against the main Seem. If there is no law
aUthOrisng the company to pay for branch roads
how happened il that we have such report, and
when did the company make such agreement and
by what authority! This Lebanon Branch is of no
use to the Company, but is of great use to Louis
VILE, and if the Louisville representatives in the
board true to the interest of their city, they
will extend that branch further than Lebanon.
Don't you believe they will do it? If Louisville
make in any way, by act of legislature or other
wise, the money in the main line available in the
construction of branch roads, the stockholders need
not expect any dividends upon their stock during
the next quarter of a century, and in that event
the suggestion in the resolution of the Louisville
Board connected with their report of last Marchis
good one, recommending to the counties the pro-
priety of ''prOUidng fund TO redeem their bonds a!
maturity, and not to depend upon diUide.dS TO redeem
the same"
Said resolutions and report are here presented
for the benefit of those interested and are the work
of highly accomplished financier.
At a meeting Of the Board of Directors of the
Louisville and Nashville Railroad Company, held at
their Office, March 80, 1860:
ResOlTed That the earnings main stem branches
bapPed the payment Of the interest and completing the
unu me 5s Of August and as thereafter 100000 Of the
net earnings will be sufficient the principal
the funded debt OF the main stem and branches
ORDERED, That the Of 100000 et apart a sinking
fund and applied first to the payment Of the interest,"
lie discharged and that the surplus earnings $4,000
be applied to the Of such debts Of the Company shall
and thereafter shall constitute fund for dividends among the
ResOlred That the foregoing resolution be laid before the
stockholders at their next annual meeting for tir approval
esolced That it he recommended to the several Counties that
have subscribed stock the line and paid
therefore in the bonds Of their respective Counties to provide
und eee their bends and not depend stock dividends
ReS0Iged That the charter as amended and passed in the
States OF Kentucky and Tennessee with such acts and
acts form charter be published in pamphlet for for the
Of the Company and the Information of the stock
holders with statement OF the funded Company, for
The main line and branches and sttemenof the stock ab
tiles 3Ist August 1901 and the above resolution pro-
vdng sinking payment the interest principal
OF the funded debt OF the Company, together with estimate OF
the required receipts yield earnings psy the
sSOO0O, the sinking fund per dividends the
stock.
Said resolutions | am glad are not yet adopted
but they. together with other resolutions on the
same points presented before the stockholders at
their last meeting. by Gov. Helm were referred u
committee to be reported at the next meeting of
the stockholders.
Gov. Helm is repudiated by some as a financieF
and manager of railroad matters: but will be seen
by the system presented in his resolutions that fair
and honest dealings are most happily blended with
great financial skill. here give you the resOlu-
ti0ns offered by Gov. Helm, and think they com
mend themselves, and compare well with any inan-
cal ability exhibited by the report resolutions Of
the board, by any OF their acts.
The following is Helms substitute for Guthrie's
resolutions:
Resolred That true policy that the Louisville and
Nashville Railroad Company after making the prov
son' Tor current expenses repairs equipment, comp ana
the payment Of current yearly interest," the creation Of
become due the bonds Of the company such the
have Covnaed pay. That such sinking fund should
road, which ought from time to time accumulate to
he applied 10 the payment to retire. the liabilities Of the
preeTng its bonds The Of the
ngI he increased diminished the necessity roprety
smade apparent by the earnings Of the road and the to 10
paid.
Rsored That by the provisions Of the charter the earnings
OF the main road cannot be applied the Of the debts Of
the branch roads, the earnings Of the branches applied
TO the payment Of the debts Of the main road those Of
branch for another Wherefore requested by the stnckhod
that the president and Directors the meeting
OF the stockholders present statement exhibiting the liabilities
road ngs expenses and in like
present tie liabilities and income Of each branch, with cal
culsOn based the cent Of the income supposed be
necessary responsibilities their opinion pro-
liable progressive increase Of the earnings Of the road, and
company their by plan Of finance providing for the safe
/ keeping, use and application Of the fund.
es0tTed That good policy requires and justice demAndsW
view to arrest the yearly and accumulation Of stock
the road by levs bonds and
cash subscriptions that dividend be declared early day
possible consistent with the obligations Of the to
make the city and counties the interest their bonds
| SToCKHoLDEG