Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-06-02
COUNTY AFFAIRS,

Meeting of she Commissioners Yes.
terday-ImpOrtant Report ON th'
Davidson County Sinking Fand.
There was meeting Of the Board o.
County Commissioners yesterday.
The following report of James Whit
worth, Chairman Of the Sinking Fund
Commissioners, was received and fled;
To the Board Of County Commissioners o.
Davidson Couat,,-G RNTLEMEN Ia ODE
dience to your notice and request, |, as
Chairman and Treasurer Of the Commits
sioners of the Sinking Fund for said county,
derived from the dividends on the stock OF
the county in the Louisville and Nashville
Railroad Company, submit the following
report of their action touching said fund,
and shall in a brief way give history OF
the connection of the county with said
company as a stakeholder.
The county Of Davidson, by vote of the
people in 1858, subscribed $4,000 to the
capital stock of the company, and Issued
the bonds of the county in payment of the
same, "a follows, to-Wit: 100000 in 1858,
100000 in 1854, and 100000 in 1855,
having 20 years to run, bearing interest at
the rate of six per cent, payable semi-an-
nually, in the city of New York. The
County Court levied taxes to meet the in
terest and one per cent. sinking fund from
1855 and up to and inclusive of 1862, being
seven years. The railroad company on the
- day of --, 1862, declared a diyi-
dend of one fourth of one per cent, and az
forwards, on the - day of ---, 49,,
declared another stock dividend Of ten per
cent, as appears on Exhibit A. 1t will
also appear from Exhibits A and =, what
dividends in cash have been paid, and when
received and how disbursed, for the details
of which they are referred to, and the same
being matters Of record in your court.
There was, as stated, issued to the Louis
vile and Nashville Railroad Company
$500, 600 in bonds, and Of that sum there
has been taken up and cancelled $50, 600,
as will appear on the railroad revenue
docket and ledger in the County Court
Clerks Office, in which the account of the
coupons and bonds are entered, when taken
up and cancelled. There was in February,
1868, another stock dividend of forty per
cent, which, added to the former stock OF
the county, makes the present stock amount
to 1922, $40. In regard to the stock and
dividends of the county in said company,
the County Court on the 9th day Of March,
1868, passed an order requesting the Board
of Directors of the Louisville and Nash
vile Railroad Company IA copy of which
was sent to them) to pass into the sinking
fund for said county all dividends, whether
of stock or cash, and that the same be held
sacredJor the payment Ofthe principal and
interest due and to become due on the bonds
issued to said company by said county.
Afterwards, On the - day of March, 1868,
The Board of Directors OF the Louisville
and Nashville Railroad Company did pass
a resolution on the subject, by which they
passed into the sinking fund for said county
all dividends not before appropriated by
proper authority into the sinking fund for
said county, a copy of which resolution is
herewith filed, marked C. and made part
of this report. ..
There has been no receipt by the Com
missioners at any time, of any portion Of
the stock dividends of the county, other
than is stated above, but all that does not
appear by said Exhibits A and b to have
passed into the hands of the Commissioners
still remains in the hands of the officers o
the Louisville and Nashville Railroad
Company, for the benefit of the county anC
bondholders. There is an unsettled ques
ton about which there has been much diff
Guilty between the county and the Board Of
Directors Of the Louisville and Nashville
Railroad Company grOWingOut of theman-
ner Of stating the account of stockholders, as
regards the time at which interest on stock
payments should stop. The charter pro-
vides that interest shall be allowed on stock
payments mp to the first dividend. This
provision evidently contemplated the
declaration of a substantial cash dividend
There was no real cash dividend declared
by the company until 1864, when interest
was stopped January, 1862, thus making &
difference to us, of the interest on our bond;
for two years, amounting TO over $4,000
but the company insists that if interest II
allowed to Us, it must be allowed 10 al
| other stockholders, and in that case WI
would not be gamers by the change Of thu
| time at which the allowance of interest wa
discontinued. At first blush this look,
quite plausible, but it does not strike M
mind as exactly fair, or in ac
| cordance with the charter, and con
sequently, "a your representative,
have insisted all the while on
compliance with the charter, and tina
until a substantial cash dividend was de
clared, there was no point at which interes
could or ought TO be stopped, and that an
| dividends declared before 1864, was nc
| such declaration Of dividends as was con
templated by the charter, for this reason
| that If such dividend as was declared,
| a compliance with the provisions OF tn
| charter, then the Board of Directors in on
month after their organization might hav
| declared stock dividend, and made up Oh
| account from that date, and thus have de
feated that provision of the charte
| altogether. This county has so far beef
unable to get this matter adjusted, but
have been able as yoHr representative l.
get committee appointed in the presen
board 20 examine into and report upon th
| same.
| | have thought, aud still hope, that
/ the whole amount Of interest as abOv
stated cannot be had, that we will be abb
TO get some compromise that will take "a
/ our outstanding tax receipts for that roae
which will require about 1000, aud thu
save our people from any loss by reason {
our subscription TO said road.
1t will be seen by reference to the Rev'
nue. Docket and Ledger and papers here
with filed, that there are still Outstandin
| of the bonds issued TO the Louisville an
| Nashville Railroad Company, two hDr
dred and thirty-eight bonds Of $1,000 eacl
and that there are overdue and unpai
about seventy-One coupons Of $50 eacl
which are subject to be presented at an
time, (tweniy-two Of which have alread
been paid since last settlement, whic
leaves balance in my hands OF OIL
S12 40) for payment.
| ID will also be seen by calculation, thu
the interest annually on the OutstandiH
two hundred and thirty-eight bonds will
SE4.280, and IL The company shall ia Il
futnre pay dividends equal To 6 per cen
annually, which know it eIpecisto d
that the dividends reserved will be 81
33S so, which, after paying interest az
commissions, will leave al least $fO,O
the FIRST year, land increase a. bonds al
reti red } with which 10 purchase and r
tire bonds, and 10 that way rapidly take "a
the county Indebtedness and apprecia
its credit 50 that when its bonds IA
due 10 1s63-4-5, il will have hut little III
heulty in extending them. IL this fan
4 - D.. raagi1ad rast4larlv ag believe