Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-12-09
These sales if they could be ratified by
the COMPANY Directory would leave

These sales If they could be ratified by
the Company Directory would leave
in bonds. .-........ S57S,000 90
Hypothetical to Nov. 80, inclusive for 255,55S O.
But it should be noted that on account of
existing statutes threatening the Dire ctors
with individual liability for difference be-
tween par value and the price at which
bonds may be sold by their sanction, it is
impossible to procure such ratification. This
feature is a terrible disadvantage to the
company, since it diSables it from selling at
what might be satisfactorily high price,
without afOrding any protection against
compulsion TO sell at low one whenever
margin is exhausted. These bonds We're
sold by the bank contrary TO a contract, but
if taken back by the company, reckoning in
terest account to date, they would have to
bring about &C., cents at resale to place the
company even. And though there has been
some intimation of willingness on the part
of the bank to annul the sale, it would not
under all the conditions favor the compa-
ny's economy to do so. Thus while the COM
pany in present attitude refuses ratification
of the sale from cause stated, il does so
perhaps against conviction of eypediency.
Though not demanded by your resOlu-
ton, il may be here stated that $4,000 will
most probably cover all floating debt of the
COMPANY. but $4,000 additional could be
advantageously expended in erection of de-
pot at Nashville, and in promoting security
OF track and safety to travel, and about
100000 VIII be required to reach the Smith
county line,so as to be availed of that coun-
tvs stock subscription, 100000.
Anxious to avoid offence by any lack of
brevity. il might be best TO close with these
statements meeting all demands of your res
olutiOn, but as. in some Instances, even with
the fair-minded, there has been, owing to
misapprehension Of facts, undue prejudice
against this road, il is desired TO relieve
of this to the extent that the fullest and
most perfect communication as to its affairs
can avail. Therefore, if admissible, it is
respectfully requested that accompanying
supplemental statement of facts be con-
sidered with, if not as part of, this report.
This request is encouraged by the SUPPOSE
ton that the object of your honorable body
was to elicit the most thorough knowledge
of the roads condition and relations to the
State. Very respectfully,
GEO. Nancy, President.
supplemental Statement
TO REPORT OF GEO. Nancy, PRESIDENT
TENNESSEE AND PACIFIC RAILROAD
COMPANY, FILED DECEMBER, 1871.
State aid has been granted to this road as
follows:
By charter, act passed May "a, 1866, sec
tions IL and 10, $4,000 per mile, and
100000 for bridge purposes on conditions
specified.
By section 8, chapter II, Acts of 1878,
s.. 600 per mile additional, and by section
3. chapter 80, Private Acts Of l86T-S, S., 900
per mile for distance not exceeding 80 miles
from terminus at Nashville, upon condition
that this should first before the Nashville
and Cincinnati Railroad construct track not
exceeding 80 miles from Nashville, with
privilege 10 said Nashville and Cincinnati
Railroad TO unite with and use the same
upon terms equitable and just" Which
conditions hare been complied with by this
company.
These appropriations at the low
est possible estimate will az
Cregate about. .....s........ S3,20O,O00
OF which has been drawn as
stated in report. ........... l,lS5,OOO
Leaving undrawn. ............ S2,Ol5,OOO
In considering the amount of bonds re-
ceiyed. it should be remembered they were
mainly drawn under an act appropriating
upon ike conditions TO almost every rail-
road in the State, and as a fact that all such
others had drawn their respective appropri-
atoms under the acs before this.
II is therefore trusted that faults of the
law win rot be charged to the company.
The right 70 the $4,000 drawn under