The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1870-05-05
IIdIOII ~ IN'V'J
Gen. J. ID. Freeman,
Attorney and Agent of Company,
jackson, Miss.

/
| March -, 1ST0.l
| Gen. J. ID. Freeman,
Attorney and Agent of Company,
jackson, Miss.
DEAR SIR
Enclosed we send you the copy of a reso-
luton of our Board appointing you oul
agent and attorney for the purposes there
| in mentioned.
By resolution of this Board of the 10Th Oct
| 1866, and 10Th Dec. 1867, we empowered the
mem bers of the Mississippi Directory as a
Committee of this Board ''to make a settle
ment with the State of Mississippi of the in
debtedness of this Company, including ,prin-
cipal and interest to date" These loans
were made to the Company by the State OF
Mississippi on various dates in 1857 and 1861
at a time when the States of Louisiana and
Mississippi were at peace with the Federal
Government, and when this Company was
receiving the protection of these States, and
of the Federal Government in the peaceable
enjoyment of their chartered rights. Had
this condition of things remained until the
bonds of this Company became due and pay
able, we should have had no difficulty i'm pay
ing the same at maturity from the earnings
and income of the Road. But the States OF
Louisiana and Mississippi seeded from the
| Union, a war ensued-the Road was inter-
fered with and seized by the Confederate for
ces in the first instance and afterwards by
the Federal forces-the surplus earnings OF
the Road received in Confederate money
were Iost-the rolling stock and bed of the
Road was destroyed to great extent, and an
amount of damage resulted to the Road from
these acts of the States of Mississippi and
Louisiana hard to estimate, but certainly
much more than the Indebtedness of this
Company to the State of Mississippi.
At the conclusion of the war. therefore, the
Company was compelled to ask of its credi-
| tors a novation of its debts, an extension OF
time and a diminution of the claims, in the
way of remissions of interests during the
war and the like. One million of the cou-
pons due on the first mortgage bonds of the
| Company, held by European and American
| Bondholders, have been funded on the Sec
ond Mortgage Bonds at par, without inte-
rest on the said coupons, from their matur-
itv to date of said settlement.
Some debts held in the North have been
settled by paying Second Mortgage bonds at
par for the same, and another large debt at
seventy-five cents on the dollar; but the
debt to the State of Mississippi still remains
unsettled.
Our Committee reported that upon appli-
cation to the Governor, Auditor, and Treas
urer of the State, they found no one author
lied to receive anything less than the whole
amount of the debt in par funds, and this
the Company was unable to pay in conse-
Quence of the circumstances and losses
above set forth.
In this situation, the Road was threatened
with a military seizure, which was only
avoided by negotiations with General Ames,
and finally the Attorney General of the State
of Mississippi brought actions of debt
Us to said State. Not having the means OF
payment, our Attorney was left to devise
such defense as best he could until the State
of Mississippi authorized some one to nego-
ciate with the Agents of the Company in the
premises.
As the Legislature of the State is now in
session, the Company deems that this expla-
nation of their action shall be made to them.
and terms of settlement and ultimate pay
ment be agreed upon, which will be condu-
Give to the public interest and satisfactory To
all parties.
The extension of the Road beyond Canton
is an object of great solicitude to the people
of Mississippi TO be Immediately benefited
thereby
The embarrassments of the Company are
such that this work cannot be entered upon
until some favorable disposition is made OF
the debt due the State of Mississippi.
If this debt could be novated and post
poned and interest accruing during the wal
rebated and the Company allowed the use
of the firss Mortgage Bonds held by the
State as collateral to this debt, the proceeds
of the same to be applied to the building OF
the Road from Canton to Kosciusko, this
work could be completed in about eighteen
months.
The Company would take great pleasure
in making an arrangement Of this kind, and
you are authorized to present the same and
report the result Of any conference on the
subject to the undersigned for the informa-
ton and action of the Board.
I remain, Yours Very Truly,
(Signed,) g. I. BEAUREGARD,
President
A True Copy;
FRANK A. GUYOL.
Presidents Secretary.