Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-08-11

Nearly all of them required either re
building or very extensive and general re
pairs. Most of this work has been done.
What has been said in regard to the loco
motives will apply with equal force tC
the cars
During the past season the rolling stock
upon the road proved to be wholly made
uuate TO accommodate, promptly, the in.
creasing traffic, and we have been adding
both engines and cars as rapidly as our
financial condition would permit, and the
same policy is recommended to be con-
tinued until the facilities reach a point
that the demands of commerce can be
fully and promptly met, and render obso-
lete the term, 'freight blockade" and
| give your officers full scope for the exer-
else of energy and intelligence in cultiya.
ting and increasing the business.
In addition to putting the engines be-
longing to both roads in good order. and
the new ones already bought, we ordered
last spring ten QO) first-class freight loco
motives from the Rogers Locomotive
Works at Paterson, N. J.-all of them to
be delivered between this time and the LIST
OF November next, so that we will be full
ly prepared to do all the business that
Fay offer. The cost of these machines
will be provided for out of the earnings
of the next fiscal year. -.
During the last year we have added the
following new stock: three 90 locomo-
tlves and one hundred and one 1OD
freight cars besides renewing and rebuild
ing large number of each.
We cannot tell what, if any, influence
the gathering storm of war in Europe NAV
have upon interests this side of the wa
ter. Without some unusual and unex-
pected disaster to those interests upon
which the prosperity of our enterprise de-
ponds, the Directors can see no reason to
apprehend any diminution of income for
the future. On the contrary, some fur
ther increase may be reasonably expected
as soon as the work of placing the Nash
vile and Northwestern Railroad in good
order is completed. The Evansville, Hen
derson and Nashville road is also making
satisfactory progress, and will, when fin
ished, add to the business of the road.
CLAIM OF THE UNITRD STATES GOVERNMENT.
This, as was apprehended by the pres
ent managers, has proved the most i'm
portant as well as the most perplexing
question with which we have had to con-
tend. The bond for over a million and a
half of dollars was given more than four
years and half ago, by our predecessors,
and by stipulation fell due about two
years since. The giving of this bond was
never authorized or ratified by the stock
holders. Any settlement of it upon
principles of equity and Justice had been
refused by the officers of the
Federal Government, to the former mana
gers of your road Notwithstanding the
fact that the mostindustrious efforts were
made by them to satisfy the authorities of |
the Government of the very great over |
valuation of the property sold, and the |
justice Of allowing the company compen- |
satlon for the use of the road for the time |
it was occupied by the national forces
as shown in she sworn testimony of NJ. |
Burns, ESQ.,, who executed the bond as /
President of the cOmpany-that there was |
q want of consideration, and that he would |
never have eXecutedjt but for the firm and |
honest conviction at the time that more than |
enough to cancel the bond would be al
lowed the company by the Government,
for the use of the road. But there seemed |
10 be an immense amount of ignorance on
The part of the Government officials at /
in regard to the actual value
Of the property sold, (Which it is charita-
bic to believe was honest ignorance, or
want of information on their part), and a
seeming stubborn determination on the
part Of the Quartermaster's Department,
neither to recognize any claim for over
of property sold, or considera-
ion for the use of the road; but the
pound of flesh" was demanded in the
.ulfllment of the bond. These were the
surrounding the case at the
ime of assuming control of your road by
he present Board of Directors. We fully |
appreciated the magnitudeoi the situation,
md the unreasOnableness of the demands
made by officials of the Government, yet
he Board of Directors desired to escape
rom a collision with the Government
and if possible, 6uy peace |
nd prosperity for the company, and
With this view, the Board at an
arly day after induction into office,
made out and submitted a case
o the officers of the War Department at
Washington, coupled with a proposition
f compromise. This method set forth
n detail the facts connected with the
Whole transaction, the ex parte valuation,
nd the influences which controlled the
managers at the time in the execution of
he bond, and in various ways attempted
0 show the equity and justice of the case
rom our standpoint. This communica-
ion went through the usual 'Ied tape"
ysLem of the War Department, and at
he end of near twelve months a conclu-
ion was arrived at, that the bond was a
losed transaction, and without legislation
y Congress the department could not
pen up the matter for settlement by COM
'rOmise. In the meantime, important
hanges were made in the War Depart
lent, and gentlemen without information |
pom the subject-st least without
aving heard our reasons and
rguments upon the question-as-
umed control of the War
)ffice, and suits were ordered to be
rOught in the Federal Court against the
Dads in Tennessee upon their bonds, and
motion for Government Receiver for
our road, (under an alleged agreement in
he bOnd) was made, and set for hearing
efOre Associate Justice Swayne, of the
upreme Court, at Washington, on the
tn day of November last; and the Presi-
ent of this company was notified to ap-
ear at the time and place to answer,
'hich was done. No Receiver was ap-
ointed, but a bond, honorable to our
and satisfactory to the Court,
yas given, with Individual security,
which was required) to the Cover nment.
he bill for the enforcement of the bond,
nd collection of the alleged debt had al
eady been filed against the company on
ne equity side of the Federal Court by
rider of the Quartermsster- general The
i'll was promptly answered, in doing
7hich, we made at least SIC material
counts against the legality and equity Of
e bond.
/. That the bond is illegal, null and
old, for the reason, that it was executed
Y the directors without authority from
ne stockholders in violation of the 18th
ection of the charter; its execution also
cling a violation of section of the In
ernal improvement law of Tennessee,
assed by the General Assembly on Feb
uary II, 1852.
9. That the transaction was fraudulent |