Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-08-14
THE CITY.
NASHVILLE AND CHATTONOOGA
OF RAILROAD.
The BOARD of Directors Refuse 70 Gem
ply with the Order Of the GUAR
termaster General.
The Company willing to Abide the De
f9sf eisiOn of the Courts. ~


q Several days since, we published in con-
nection with the proceedings of the Board
Of Stockholders Of the Nashville and Chat
| tanooga Railroad, an order from Quarter
master General Meigs, demanding that the
rolling stock and material of the road
should be turned over TO J. B. Van Dyne,
Receiver for the United States, and also
extracted cOpiously from the memorial Of
the President, in defense of the company
in the premises. The action Of the Board
of Directors since that time will be Of ir-
terest to our readers, and we call attention
to the following: lil s5
PRESIDENTS OFFICE, NASHVILLE AND
CHATTANOOGA RAILROAD, NASHVILLE,
Aug. II, 1S69.-Col. J. B. Van Dyne-
Sir have had the honor 10 receive
through you from the Quartermaster Cen
erals Office, the letter Of that department,
dated August 3, 1869, demanding that /
should turn over TO you as United States
Receiver, the Nashville and Chattanooga
railroad.
In answer to this demand beg leave 10
refer you to the annexed preamble and re-
solutions adopted respectively by the
stockholders and the directors Of the CO m
pany.
From these proceedings you will per.
ceive that have but one course to pursue,
and that is to decline compliance with
the requisition of the Quarter master Gen.
eral. si--r :
This I do, and permit me to say that the
action of the Board accords entirely with
my own views Of duty TO the company Of
which am President. The company, as
you will perceive, are willing to abide BY
whatever may be decided by the proper
tribunals Of the country, and certainly. too,
this is in accordance with my own views
upon the subject. herewith furnish you
with copy of the memorial referred to in
the annexed resolution. Your obedlent
servant, -H E. w. COLE, President.
DIREcroR's Room, Nashville and Chat
tanooga K. r. Co., Nashville, Tenn, Aug.
IL, 1S69.-Whereas, At the annual meet
ing of the stockholders of this company,
held on this day, viz August IL, 1869, a
preamble and resolution were adopted as
follows: Lil
Whereas, A demand has been made
upon this company by the Quartermaster
General of the United States, which is as
follows:
QUARTERMAsrER GENERALS OFFICE,
WASHINGTON, D. c., August 3, 1867
Mr.. Z. w, Cole, President Nashville and
Chattanooga Railroad Company, Nash>
Vile, Tennessee: Sir-In consequence of
the failure Of the Nash vile and Chatta-
nooga and Nashville and Northwestern
Railroad Companies 10 pay their indebted
! ness to the United States on account Of
purchases of rolling stock and other rail-
road material, according to the terms Of
their bond, or 10 make provision for its
payment upon any terms satisfactory to the
United States, / have appointed Mr.. J.
B. Van Dyne Receiver for the United
States of said Companies railroads
with full power and authority to
enter upon and take possession Of and
control and operate said railroads, aud 10
collect all the revenues of said railroad
companies, and to apply the same TO the
payment Of said indebtness until said in
debtness shall have been paid in full or
until further orders from this office. /
have therefore to reques. that you viii
cause TO be delivered 70 Mr.. Van Dyne,
Bdiu Tue EOAiiuk btOCh anu OehuA
materials and property thereto belonging,
that he may enter upon the discharge Of
his duties without delay.
Very respectfully, NJ e MEIGs. Q NJ G.
Breyet MajOr-general U 5 Army.
Whereas, Said demand il founded upon
| the bond referred TO in it, and Of which
| a copy has Just been laid before the stock
| holders for the first time; and whereas,
| the stockholders believe said demand and
| the claim upon which the same is predi-
| Gated, to be unjust and without legal
foundation or authority, and therefore not
binding upon the company; therefore be 1t
| Resolved, That it be and is hereby re-
| ferred to the Board of Directors, to take
such action in 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. Now be it.
Resolved, l, By the Directors, in pur-
| suance of said preamble and resolution,
| that the President Of this company be and
| he is hereby directed, for and on behalf Of
| the company to refuse compliance with
/ the requisition aforesaid. Be it
Resolved 2, That in the opinion of this
Board, said requisition should not be com
1 plleu Will, lOE tue IoaSohS Sl'Cu III
memorial addres sed by the President Of
this company to Gen. J. J. Dams, United
States Army, Washington, District Of
Columbia, dated November, 1865. and
adopted By this Directory on the 18Th Of
November, 1868. And especially for the
following reasons:
| l. That the purchase uIon which said
| bond Is founded, was made under circum.
stances amounting to equitable duress-
2, That one of the main inducementI 10
il, and which inducement was offered by
the conduct of the United States, through
its officers, was a belief on the part of this
company that they would be allowed a
Just claim against the government by way
of set-off. fni
8, That the bond itself was execute d
solely in consequence Of threat by the
military authorities of the United States
to seize the road and exclude the officers
| of the company from its management, al d
thereby TO entail ruin upon all the inter
ests of the corporation.
4. That the property embraced In the
purchase was immensely over-estimated.
5. That to large portion of the proPerr
ty the United States had no title.
6. For other reasons that will be here
with offered if necessary.
Be it resolved, 3. That this Board has
entire confidence in the legal tribunals
| of the country, and is willing to submit
the matter in controversy to their arbl-
trament, and to abide their decision.
MEETING IN THE TENTH WARD.
i ~ n