Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-04-19
THE CHATTANOOGA RAILROAD IN.
RROIIGiO.

| THE CHATTANOOGA RAILROAD NJ
BROLIGO.
A few weeks since, il was announced
that the Governor Of the State had APP
pointed fifteen persons as directors of the
Nashville and Chattanooga Railroad
Company on behalf of the State. The
action took the public somewhat by SUR
| prise, and, when it was discovered that
the persons commissioned were Of the
ultra Radical members Of the Legislature
and their sympathizers, the surprise
merged into surmise that it meant some
political maReuyre. We have no authority
to charge that it did, but the s1rupulously
partizan character of the additional y
directors is, at any rate, an unfortunate
fact Whatever the motive, or the assumed
authority for this step it is calculated to
embarrass the business, and cast
obstacles in the way of the profitable
management Of this great stem line of
railroad. Forbearing further speculation
or comment, however, we propose to give
the laws in regard to the State interest in
the directory, and the facts as they have
thus far transpired
by the General Internal Improvement
act Of 1872, which was made applicable
to the Nashville and Chattanooga rail
road, section 18th provides that the Cow
ernor of the State shall appoint taOo
directors in each railroad company in the
State, which shall be the beneficiary of
State aid in its construction and equip
ment Section 18th extends a certain
amount Of such aid to the Nashville and
Chattanooga Company We are not GER
tain whether this company has received
additional aid since that time or not. In
accordance with that law, however, the
State has been represented always by
the ttoo directors provided for and every
thing has moved on satisfactorily between
the company and the State
On the 9TH Of March, 1867, the Legisla-
turs passed an act to amend the charter
of the Memphis and Charleston Rail-
road Company, of which the following is
the 1th section
BE il further enacted, That the Governor
shall appoint directors in each railroad
company of this State in proportion 10 the
amount Of aid received By said company,
whether the aid has been received by the
issuance of bonds Of the State, or endorsing
bonds of the said railroad companies.
Sec. 10. BE it further enacted, That this
act shall take effect from after its passage.
The power to pass this section is
claimed under section lib of the Code
Of Tennessee as follows
The State ofTennessee expressly reserves
the right TO enact, by the Legislature, all
such laws as may be deemed necessary to
protect the interests of the State, and TO
secure the State from loss in consequence
of the Issuance of such bonds; but so as not
10 impair the rested rights Of The stockholders
Of the companies
Section 34th of the original charter of
incorporation Of the Nashville and Chatta-
nooga railroad, passed December llth,
1915, says
This charter shall be amendable from
time to time whenever the President and
directors shall unanimously petition for
specifying in the petition
the nature of such amendments and when
such amendments shall be adopted by the
Legislature and submitted to the directory,
and be accepted and adopted unanimously
by the President and directors, they shall
be obligatory on the stockholders, and not
otherwise.
On Wednesday last, the Board of Di-
rectors assembled in this city, and the
fifteen Directors appointed by the Gov
ernor presented themselves for qualifca>
ton Their application was referred to a
which reported that:
The committee TO whom was referred the
appointment Of additional directors for the
q Chattanooga Railroad Compa-
ny, unanimously report the following reso-
utions, to-wit:
Resolved, By the Board Of Directors.
hat it is our duty, 'as directors of the |
Nashville q Chattanooga Railroad Com
'any, TO decline TO admit as members of |
he board, the additional directors ap-
pointed by His Excellency the Governor of
Tennessee, in pursuance of the act of the
Assembly, passed March, 1867; and that
We respectfully protest against their ap-
continent, as impairing the vested rights
Il the stockholders of the company under
Is charter.
Resolved, That said additional appointees
e notified Of the adoption of this resolu-
ion.
Resolved, That the action of the beard
: not intended TO impugn the right of the
Governor to appoint two directors as pro-
ided by the act Of 1852.
JNO. p. KING,
Chairman of the Committee.
In uhIaL tho pnvrl,y o,plipf,1 -nt,r,,,l