Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-08-09
NASHVILLE :AND CHATTANOOGA
RAHH Rah A N a.fANrmnVER6X

AAAh1lkOAD eoONNhtUb Ek&SHs
Mr.. EDITOR: II has been understood
for some time, that dividend Of five per
cent. had been declared, aud was being
paid to some of the stockholders. How
this is, We are not fully advised, as there
has been no publication made TO our knoWl-
edge, calling on the stockholders to come
forward TO the proper Office and receive
dividends; but the present board have, for
reasons very apparent sent the dividends
by their own officers and agents, all
through the country, and paid them of, as
We believe, in most instances, to their pc
culiar friends We do know that many
stockholders in opposition to them have
applied for their dividends and been re-
fused But it is said they have been or
dered by the government to stop paying.
1t Is strange this order was not received
until after Mr.. Burns, Mr.. Arts Brown,
and it is believed, majority Of their friends
had received their dividends What is to
be the result of this? If we and others
cannot get our dividends, will Messrs.
Burns, Brown, and others retain theirs
There is something very strange in
the whole proceeding. If gentlemen are
qualified to manage the operations of the
road, they should certainly know when to
declare dividends, and should not make dis
ordinations in favor of some and against
others Of the stockholders 1t seems they
have been unfortunate in declaring divi-
dends; for it will be remembered that
dividend was declared at one meeting of
the board, about the time of the election of
the present directors, and the order
was rescinded short time after, by called
meeting Of the board. This was done to
influence that election, because at the time
of the election, the dividend was promised
if the present board was elected: and divi-
dends were declared q short time ago, and
the money sent out among the stockholders
to induce them to vote for the present board,
on the 18th inst. This is very apparent from
the fact that the company hadno money with
which to pay dividends, except such means
as they realized from pledging hypothe-
eating or selling the bonds owned by the
company, that were turned over to the old
board. Dividends should not be de-
clared when the property of the company
has to be disposed of to raise the money
with which to pay them atheavy sacrifices,
but should only be paid out of the surplus
net. earnings of the road. Again, the last
dividends were declared when the COM
pany was due the government of the
United States 81 100000 co. Will not the
government require the company to pay
that installment before it allows the earn
ings of the road to be applied to the pay
ment of dividends, and did not Mr.. Burns
know that fact, and was it not that which
induced him TO be 50 secret and private in
the appropriation of the money to
the payment of dividends? We have
heard it intimated that the government is
threatening to take charge of the road in
a few days. How this is, we cannot say
definitely. We have predicted that Mould
be the result under the present manage
ment, but we did not know it would come
at so early a day. The prediction was
based on the fact that the statement COM
pairing management between the old board
and the present, they show profits of $31l,-
600, but to arrive at this result they had
to exclude from the statement: interest on
both debts, costs of repairs of the freshet and
other expenses, wear and tear of the road
and machinery, amounting to upwards of
100000. This, then, shows an actual
loss of upwards of 100000 in their last
years operations, and besides this, their
road and machinery is in terrible order.
We have been told that Mr.. Burns was
man of so much influence with the govern
ment, that there was no danger of inter-
ference so long as the road was under his
control. We have yet to learn of
any oYerWeaning influence of Mr..
Burns over the government. We
think it is general talk without any foun-
dation for it. He, however, usually just on
the eve of an election, sees great danger
that no one can avert but himself These
impressions he creates in order to make it
appear that he has the ability to grapple
with the government and quiet it down. 1t
is suspected that this is his purpose now,
yet we will wait and see. Ifthere is reali-
ty in the report that the government will
assume control of the road, it is Burns
fault, and on account Of his Encouragement.
STOCKHOLDERS.
2. S. Since writing the above, We have
received reliable information that there is
nothing being done by the government to
take charge of the road at present, as re-
ported on yesterday at the Nashville and
Chattanooga railroad deport by Mr.. Burns
and others. What is meant by such con-
duct? Will they go on with their diyi-
dend paying?