The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-10-06
THE CHERAW AND SALISBURY
RAILROAD.
Letter from Major Townsend.


Mr.. D. B. Townsend, the president OF the
Cheraw and Salisbury Railroad, publishes, in
the Chesterfield Democrat long letter, con-
tanning his version of the circumstances at
tending the late sale of Cheraw and Darling
ton Railroad stock, held by his company. Mr..
Townsend argues that it was manifest that
Charleston intended to do no more for the
road, but would stand back and let the North
Carolina interests lead of. He continues as
follows:
In pursuance of this policy, demonstrations
were made along the line in North Carolina in
July, numerous subscriptions were obtained,
payable on demand, for the purpose OF loca-
ting the road Immediately, and general In
terest was aroused In favor of the enterprise
To sustain this, and to assure our North Caro-
lima friends that we were In earnest, 1t was de-
cIded at the meeting of directors In Cheraw,
August llth, to organize and send out corps
Of engineers on the line Immediately, and to
raise, by the sale ofsome of our lifeless stocks,
an important sum Of money to commence the
grading at this end of the line. All of the d.
rectors outside of Charleston voted for the
sale, and but for the extraordinary and veXac
tious suit that has been brought, because of
this sale, the work would now be progressing
finely.
The stock was subscribed and paid over to
che company some six or seven years ago, and
although 1t has been regarded as dead capital
In the hands Of the directors-because no use
could be made Oft heretofore-there has never
before been any question raised as to our title
to the stock. If the company owned the stock
the board had perfect right to sell 1t in the
best and highest market. That Charleston was
not the point to negotiate an advantageous
sale, is evident from the fact that the North
eastern Railroad stock, which has been re-
garded as much better stock, was quoted and
on at $8 to 50 per share. There was another
significant Indication. Charleston had been
strongly represented on the board ever since
this stock was transferred to the Cheraw and
Coalfelds Railroad Company, and her directors
knew how anxious we were to realize means
to 60 on with the work, and yet no offer or in
tinlation of an offer ever came from that quar-
ter And finally, two ofthe Charleston directors
were present when the sale was ordered
voted against the sale, but did not offer to bet
ter the bid. They did suggest hypothecation,
but seven Of the directors preferred to sell.
happen to know all that has been said about
the object Of this purchase is erroneous. The
stock was bought as an investment, and have
the very best authority for saying that no dis
elimination will ever be made against Charles
time for the question to be settled in this State
as to whether the stockholders or other peo-
pie are to run and control the railroads. What
right, for instance, has the Northeastern Rail-
road Company to run the Cheraw and Darling
ton Railroad Both are distinct corporations,
owned by different stockholders, and pre-
sided over by different boards Of directors,
and yet 1t is very well understood
that the Northeastern Board exercises
as absolute control over the Cheraw
and Darlington Road as 1t does over
It's own concern, and this accounts
for the 'milk in the cocoanut." Why, 1t
is said, (and presume will hardly be denied, }
that the president Of the Northeastern Rail-
road offered the purchasers of this stock, in
terest at the the rate Of seven per cent. per
annum on the entire investment, for the SIM
pie control of their proxy for two years! 1t is
fair to conclude, therefore, that 1t Is profitable
to the Northeastern Company to control the
Cheraw and Darlington Railroad, or that en-
terprising concern could not afford to pay
nearly $4,000 for the simple privilege of repre-
sentlRR 40l3 shares tor two short years. 1t Is
apprehended, no doubt, tlIuL new stockholders
viii find out that they have just as much right
to run 1t, as separate and independent con-
Germ, as the proprletors Of any other railroad
In the State.