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
Chcraw 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
t9n slls, s,.ioafl'stock, held by his company. Mr..
T0whscnd argues that It was manifest that
Charleston intended to do no more for the
sEasd, but would stand back and let the North
Carolina Interests lead OF. He continues as
follows:
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 o general In
tercst was aroused In favor Of the cnterprise
10 sustain this, and to assure our North Caro-
lima friends that we were in earnest It was de-
cidcd at the meeting Of directors In Cheraw
august az ilth TO organize and send out corps
raise, by the sale ofsome of our llfcless 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 vexa-
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
the 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
before been any question raised Us to our title
TO the stock. If the company owned the stock
the board had q perfect right to sell It in the
best and highest market. That Charleston was
not the point to negotiate IN advantageous
sale, Is evident from the fact that the North
eastern Railroad stock, which has been re-
garded as much better stock, wns quoted and
SCI sGil1ng IN g at me m time this negotiation was going
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 go on with the work, and yet no offer or In
timation of an offer ever came from that quar-
ter: And finally, two ofthc Charleston directors
were present when the sale was ordered
voted against the sole, but did not offer to bet
ter the bid. They did suggest hypothecation,
out seven OF the directors preferred to sell.
happen to know all that has been said about
the object or this purchase is erroneous. The
STOCK was bought as an Investment, and have
the very best authority for saying that no dis
crimlnation will ever be made against Charles
ton by the proprietors of this stock. But it is
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-
ton Railroad Both are distinct corporations,
owned by different stockholders, and pre,,
SIDE sided over by different boards OF directors,
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 tho "milk In the cocoanut.n why, it
is said, (and presume will hardly be denied,)
that the president Of the Northeastern Rail-
road offered the purchasers of this stock, In
terest ut the the rnte of seven per cent per
annnm am on the entire Investment, for the Sim
pie control Of their proxy for two years! It is
iair TO conclude, therefore, that 1t Is profitable
t9 the Northeastern Company to control the
GulleGlRiR rt0If IfqllEnaaa 9E that en- en-
nearly 5000 for tho simple privilege Of repre-
senllIg 4ol3 shares for two short years.t t-It is
apprehended, no doubt, that new stockholders
will find out that they have Just as much right
to run 1t, as separate and Independent con-
eern, as the proprietos of any other railroad