Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-09-09


ment, they have taken off the falling
due coupon and drawn the money
whenever the city was able to pay the
interest, thus making the city furnish
them the cash wherewith to buy pass
ed due coupons at - per cent. dis
count to pay Indebtedness to the city
which was due from them in cash or
New York exchange.
do not think the city is fairly dealt
with by the purchasers of the stock,
and as she has ample means to en-
force a strict compliance on the part
of the purchasers, | think she should
avail herself of the privilege at the
earliest moment. l herewith hand
you a copy OF the agreement between
the purchasers of the stock and the
city of Memphis for your inspection,
which / would be pleasedifyOu would
examine closely and see if my conclu-
siOns have been correctly drawn.
All of which is respectfully sub
mitted. R. ID. BAUGH,
City Comptroller.
Upon motion the report was re-
ceived and ordered to be published,
and a Committee, consisting of Alder
men Black, MOffet and Cicalla, was
appointed to examine into the matter.
ANOTHER REPORT OF COMPTROLLER.
MEMPHIS, Tenn, Sept. I, 1869.
To the Honorable the Board of Mayor
and Aldermen of the city of Memphis:
Gentlemen: In all the propositions
which have been made by parties to
purchase the stock in the Memphis
and Little Rock Railroad owned by
the city of Memphis, l believe there
never has been any positive agree
ment on the part of parties proposed
to purchase the stock to have the road
completed by any given time. This,
in my Judgment, should be the great
desideratum with the city. The stock
should not pass into the hands of any
company who would not furnish the
means to complete the road, and the
President and Directors of the road
should be required TO give good secu-
rity that the road shall be completed
in six months, or return the stock to
the city. This arrangement can be
made itharespOnsible party through
the President of the road, Mr.. r. G.
Brinkley, who will draw up the con-
tract with the parties purchasing the
| stock, so that the stock will revert TO
the city if the road is not finished in
the six months.
The party proposing to purchase
will deposit the amount OF money
necessary to complete and equip the
road, and pay the city % cents for the
stock.
1t is thought that the stock is worth
more money, and ought not to be sold
tor less than 500, 900. l have nc
| doubt that the stock could be sold al
its par value, say S572,000 TO a party
whose interests it would not be to
! complete the road. But the city
would make money by giving the
stock away to a party who would
| furnish the means TO complete the
road and furthermore bind himself to
EQUIP and complete the road in six
months, and would lose money by
| selling the stock at par to q party
who would give no such guarantee.
If the stock should pass into the hands
whose interests it would not be 10
| complete the road, the city Of Mem
phis would lose all of her trade west
of the Mississippi river, and the whole
of il would be transferred 20 st. Louis,
Our stock in that road IS worthless
! unless the road is completed, and il
cannot be completed without means,
and capitalists viii not put their funds
| into q railroad without q large pros
pectfye interest is likely to accrue to
them. l am instructed by Mr.. r. G.
Brinkley, President of the road, to
| saw to your honorable body that he
will give 2 good guarantee to the city
that the road shall be completed in
six months from the time arrange
ments are entered into between the
city of Memphis and the parties wish
Ing to purchase. i do not think the
city could do better than to make the
arrangements proposed.
The City Attorney informs me thai
injan0tians against the sale of stock,
! taken out by the First National Bank
| can be dissolved at any time the city
may require il.
By the sale of the stock the city viii
accomplish the completion of the
| road, and enable her also to protect
her Stock ~ the Mississippi and Ten
nessee Railroad, which is m%ortgaged
for $4,000, which amount has to be
[ paid in October next.
Believing the foregoing proposition
| 10 lie the best and surest for the COM
1 pietion OF the road, and believing il
to be the only source left the city by
which money can be obtained TO carry
on the city government, thing the sale
ought to be made and relieve US from
our present embarrassed condition.
l have thought proper to make these
suggestions in connection with the
p~r6g0sision made by Mr.. r. C. Brink.
lev, President Of the road, with q
view of calling your attention TO the
importance Of the subject, believing
that yqu viii give it the investigation
which l think its Importance de
mands. Very respectfully,
Your Obedient servant,
X. D. BAUGH,
City Comptroller
Upon motion tRs report was re.
ceived and referred TO the kiE3nct