Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-08-12
THE CITY.
NASHVILLE AND CHATTANOOGA
RAILROAD.

of the Nashville and Chattanooga railroaC
was held yesterday. On motion, Haydor
March, of franklin county, was called Il
chair, and COL George Rice appointed sec
Rotary.
Spencer Aiken, II. Newman and G
White were, on motion, appointed com
mittee on proxies.
The eighteenth annual reports of the
President, Directors and officers, were read
and received.
Mr.. Cole offered the following resolu-
ton:
Resolved by the stockholders in meeting
assembled, That the Board of Directors
this day elected, are authorized to lease for
term of years the Nashville and North
western railroad, the terms Of the lease TO
be fixed by said Directors.
Resolved further, That said Board Of
Directors be authorized 10 make any such
arrangements with the Tennessee and Pa
ci6c railroad in reference to depot connec-
ton or rail communication that they may
deem advantageous to the company, for a
term of years.
The resolutions were adopted.
Mr.. Cole read the following letter from
the Quartermaster General at Washing
ton: --.---.-.-
QUARTERMAsTER GENERALS OFFICE,
WASHINGTON, D. C. Aug. 8, lS69.-E. W..
COLE, President N. & C. r r. Co.
SIR:-In consequence of the failure Of
the Nashville and Chattanooga and Nash
vile and Northwestern railroad compa-
MES TO pay their Indebtedness 10 the Uni
ted States, on account of purchases OF roll
ing stock and other railway materials,
according to the terms of their bonds, or
to make provision for its payment upon
any terms satisfactory to the United States,
/ have appointed Mr.. ]. B. Van DyDe,
Receiver for the United States, of said
company's railroads, with full pow
er and authority TO enter upon
and take possession of and con-
troll and operate said railroads, and to col
lect all the revenues of said railroad COM
panies, and to apply the same to the
pay ment Of said Indebtedness,
until the same shall have been
paid in full, or until further orders from
this office. | have therefore to request
that you will cause to be delivered to Mr..
Van Dyne said railroads, the rolling
stock and other materials, and property
thereto belonging, that he may enter upon
the discharge Of his duties without delay.
Very respectfully, etc, NJ. c. MEIGs,
Quartermsster General, BreVet Msjor
General U. s. A. ..f.. aHt
Mr. Bass offered The following pfeam-
bic and resolution: .-r..
Whereas, A demand has been made
upon this company by the Quartermaster
General of the United States,
Whereas. Said demand is founded
upon the bond referred to in it, and of
which copy had jlst been laid before the
stockholders for the first time; and where
as the stockholders believe said demand
and the claim upon which the same is
predicted, 10 be unjust and without legal
foundation or authority, and therefore not
binding upon the company, therefore,
Bel Resolved, That it be and is here
by referred to the Board of Directors, to
take such action 10 resisting said demand
as they in their discretion shall
think proper, under the advice of such
legal counsel as they may call to their aid.
The resolution was adopted.
The following resolution offered by
Sam. d. Morgan was adopted:
Resolved, That the account published
by the War Department Of The United
States, showing the amount due TO this
company for the use of its road, etc, be
published in connection with the resolu-
tion on the subject. of the debt due from
this company to the United States, this day
offered by Mr.. Bass. ... %
The stockholders then adjourned to P.
M. TO receive the vote. .--r r
The stockholders met again at 5 p. NJ,
when the following resolution, offered by
Col. John Frizzell, was adop ed unani-
mously: .s. .e
Resolved, That the thanks of this meet
ing be rendered to the Chairman, Secrsta-
ry, the Judges and Clerks of the election
and the committee on proxies, for the i'm
partial and disinterested discharge of their
duties, and that the directors be requested
to furnish each of them with free passes
over the road for one year. ..
Ga motion of Col. FrizzelI, the conven-
ton adjourned sine die.
In order to enlighten our readers in re-
gard to the defence made by the railroad
with reference to the bond given to the
government, ETC., we extract portion Of a
letter from E. w. Cole, President, to Gen.
]. J. Dana, q. S, A, Washington, written
in November last, and adopted by the
Board Of Directors as a memorial to the
United States government l1 slt Q. 'i
The Nashville and Chattanooga railroad
extends from Nashville to Chattanooga, q
distance of ISL miles its capital stock
is the sum of s., 1916, 434 GA. Its indebt-
edness to the State of Tennessee is 81 ,94l, :
600, which amount is owing TO the State
for aid in it's original construction, and
subsequent appropriations, and for which
the State has lien, or FIRST mortgage upon
the road, rolling stock, end all its appur-
tenances. That you may the more clearly
understand the character of this lien,
| which is prior to all others, i herewith
send you copy of the law, by which il
was taken, and marked (A.) Now in order
to discharge this lien, and to create sink
| ing fund, as the company is required
| to do, under the penalty of the ap
pointment of a Receiver, the road
must pay, besides the ordinary and
extraordinary expenses of running, the
sum of $l55,2S annually; counting thu
sinking fund at only 2 per cent, it will BE-
4per cent. in 1870. This debt was originally
the sum of 81 ,696, GOO, and by the 18th sec
ton of the charter it ia provided that Thu
| Board of Directors shall not exceed, il
their contracts, the amount of the capita
of the corporation, and of the funds which
the company may have borrowed ant
placed at the disposal of the board; and il
case they should do so, the President ant
Directors, who may be present at the meet
ing at which such contract or contracts, 81
exceeding the amout aforesaid, shall b
made, jointly and severally liable for III
excess, both 10 the contractor or contract
ors, and the corporation" / do not quot
the above to insist upon the invalidity Q
the bond, because my present policy is t
buy from the government, If possible. ~
ture peace and prosperity for the road
without regsrdto technicalities, or even mic
calculations, but at the same time l waiy
none of the rights Of the company or stock
holders, and only request to say, that IN
der a strict construction OF the above char
ter, the Directors were only authorized q
create new Indebtedness TO the amount G
| $3.50 434 GA. The bond held by the gov
eminent against this road was given 70
the sum of 81, 5S7, l57 OF, and was executes
under the following circumstances: by a
order dated August 8, 1865, signed by tn
Secretary of War, and directed 10 Maj &c
George ii Thomas, he was directed to re
linauish control over all roads in Tennes
see upon certain conditions, one Of who
| was: Tabular statements will be made {
all expenditures by the government 70
| repairing each road, with a full statement {
receipts from private freighls, passage an