Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-01-02
BONDS.
Meeting Of the New York Holders Of Ten
nessee Bonds.
The Plan Devised for the Protection Of their
interests.

4 meeting of the holders of Tennes-
see State bonds was held on Monday
afternoon at the Office of Thomas Den
ny d Co., New York city, at which it
Is estimated $l2, 100000 of bonds were
represented. Mr.. J. J. Donaldson,
President of the Bank of North Amer
lea, presided, and Mr.. A. w. Williams
acted as Secretary. The committee of
five appointed at previous meeting
TO devise a plan for the protection OF
tL9 interests Of the bOndhOlders, re-
ported plan, as follows:
Chat the authorities of the State of Ten
nessee shall appoint a commission of
three, Of which we suggest that the Gov
ernor, Treasurer and Secretary of State
shall be mem bers, and that three be named
by d majority of the asserting bOndhold-
ers. aud these shall elect the seventh.
That this commission shall receive from
the state a transfer OF al the indebtedness
of all the various railroads except two. to
be hereafter named, 10 the State, to be
held IN trust for the following purposes.
That they shall collect promptly when
due, and IN lawful money, from all solv-
euJ roads, the amount due the State as in
terest, sinking fund and principal.
That tho insOivent roads shall fOreclose
and sell at auction, and if the amount bid
for the road is not equal to the amount
due the State, the commission shall have
power TO purchase, and it shall be their
duty 20 purchase said road for any amount
not exceeding the amount due the State.
Whenever the bcndhOiders shall surren-
der their bonds to the commission, to be
held as property of the State, the bonds
and coupons shall be entitled to receive
from the commission receipt and certifi-
cate stating that they have surrendered
such bonds, and that they have an uadi-
vided pro rata interest in the property
held by the commission in the ratio that
the bonds assented by them bear to the
amount Of bonds required to be assented
TO acquire the properly.
And until the amount Of said bonds as
scented 10 said com mission and purchased
by said commission shall equal the
amount said roads are Indebted to the
State, the commission shall appropriate
such money as they shall receive from in
terest, sinking fund and principal, to pur-
chase Tennessee State bonds at the mar
ket price until the bonds purchased and
assented to the commissioners shall equal
the sum due the state, at which time the
asserting bcuCholders shall own the whole
properly Eeld by the commission.
ANY ROAD GetlUl.ing and purchased by
the commission, may be sold on such
ers anu majority OF asserting bondhold-
ers may consent 10.
Tic amount realised by such sale shall
be paid 10 the commission, and be used
by them III the purchase of bonds in the
same II amer as money received from in
Jersst, sinking fund aad principal.
Any Ga'@ulting road purchased and re-
solo by the commissioners shall have all
the chartered rights and privileges orig
i~s ftg-rr sl1srr 4
the purchaser shall have the right to alter
81 amend is corporate name, and TO sell,
lease, consolidate or Join stock with any
other road or rUal- iu or out of the State.
The purchaser shall io rei iuired 10 make
q certificate -taIIg the name assumed, or
the road or roads sold 10, leased or con-
sClids,Ci, aud snail file the same in the
office ot The Secretary Of State.
" hen JHe amount OF assented bands
=nd purchased haa5s shall equal the
amount dne the S-ate, aii money realized
hereafter shall b5 divided with the hold
eTs Of certificates Of assrnted bonds.
In purchasing bonds the certificates of
assenEed bonds shall be a good delivery to
the commissioners.
Mr.. L. \, ConkliR expressed his
confidence in the desire OF the State Of
Tennessee to pay its debts. He
thought that it would be impractical
bic 10 obtain control Of the roads by
the plan proposed.
Mr.. Donaldson, tie Chairman, said
that according to the best knowledge
which the committee was enabled to
obtain, there was a disposition in the
State 10 adopt some such method OF
clearing OF the debt. This debt was
about SIS, ,009, $50, OF which nearly $26,-
UU0, coo Was due tOthe railroads. AS
lar a. could be Judged, the authorities
would gladly accept the plan.
Mr.. Williams remarked that the
heavy debt of Tennessee was equiva-
lent, so to speak, to a mortgage on
each piece Of property within its linn
its. For instance, farms in Tennessee
sold for twenty-five per cent. less than
in Kentucky, all other things being
equal. Naturally, therefore, TenneS-
see would be grateful for any practical
plan of getting rid Of this horrible in
cubus.
After much more discussion it was
finally resolved that the committee of
five be empowered TO appoint sub
committee of three to visit Tennessee,
10 confer with the State authorities as
well as the railroad men, with view
to devising a plan by which the State
debt interest may be regularly paid,
and the principal, when due, refunded
to the lenders. The committee Is
bound TO no specific plan, but will be
guided by the condition of affairs as
they find them.