Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1871-08-18
ALABAMA AND CHATTANOOGA ROAD.
Stanton Writes Letter-GOv. Lindsay In
an awkward Attitude, il Reports
no Trup

d. n. Stanton, President of the Alabama
and Chattanooga Railroad, has written a
long letter to the New York Tribune, i'll
which he gives history of the operations
of the Company, and charges Gov. Lind
say with ways that are dark and tricks
that are vain" From his statement it ap-
pears that the Governor was on the
Make" and that, to that end, he sought
an interview with him (Stanton), which
Stanton states as follows:
On the 9Th day of April last Gov. Lind
say authorized Messrs. Duncan, Sherman
& Co., of this city, to pay the interest on
5 ZOO, 900 worth of bonds, 81, ,000,0 of
which were bonds of the Alabama and
by the State of Alabama, and 2,000, 600
were State bonds loaned to the Company.
Prior and following this advertisement, l
asked Gov. Lindsay, in the presence of
Mr.. A. &. Lippitt, what course he intended
| to pursue on account of the payment of
this interest He informed me he was not
ready to commit himself on that matter.
Subsequently Mr.. Nathaniel Mckay came
into the office of the Company and told
me he desired an interview. / asked him
| the nature of his business. He told me
| that he had had, on several occasions, long
conversations with Gov. Lindsay respect
ing the matter of our railroad. He said
| that Lindsay had requested him to come to
me and say that if | would make it an Ob-
| ject to him Lindsay he would not take
the road away from the Company, but if |
declined to do so he should instruct his
| officers to seize it, and that would virtually
destroy the value of the stock, and shut
out those who held claims generally against
| the corporation.
He said that Lindsay told him he had
full and absolute power to do as he choose
in the premises, which was to leave the
road in the COmpany's possession or take
it awav from them. He said that Lindsay
considered himself very popular with the
people of his State, and whatever he did or
advised them to do regarding the matter,
they would acquiesce in. He stated that
Lindsay had told him that he had great
confidence in our capacity to complete the
road and operate it so as to make it very
remunerative. He said that Lindsay told
him he believed we had q great desire to
make it a success, and could do so if We
were allowed to keep control of it, and
that eventually we would make very
large sum of money, beside paying all the
liabilities of the Company, but, in order
to induce him Lindsay to allow us to
keep possession we must make payment
ducement to have him let the road alone.
| asked him how much Gov. Lindsay
wanted. He said he did not know exactly,
but Lindsay requested him to get the Com
pany to make proposition. L told him L
would not, and would not advise the Com
pany to. | stated to him that if Governor
Lindsay wanted anything he must state
the amount He said that I ought not to
expect Lindsay to make a proposition over
his CiUnotnra fold
him that if he desired to be paid did not
consider him. ANY to good to tell what he
wanted. asked Mckay how he knew so
much about LindSay's wants relative to
this matter He informed me that they
were ScOtchmen and that Scotchmen had
great confidence in each other; beside, he
said that he had taken the Governor to
ride behind his fast horses A; that he had
dined with him at several places, and that |
he had taken him to various places of |
amusement, the character and names of
which L will refrain from mentioning, but |
allow the people to judge. / finally cut |
Mr.. Mckay off from the subject of his |
conversation by telling him that the Com |
pany would not make a proposition and |
that they could not pay any money. He
said: "Well, then Lindsay declares that |
he will take possession of the road, ;"
though he told me he would see Lindsay,
mite proposition.
Meanwhile [ took occasion to see Gov.
Lindsay, and asked him if he would give
me assurance in writing that he would not
interfere with the road. In reply, he
stated he had not made up his mind fully
as TO what course he would pursue. He
asked me when / thought the earnings of
the road would be sufficient to pay the in
terest. | told him my opinion was that it
H.o inf nd Of |
operating until after July, 1871, and per-
haps not until after January, 1872. He
says: Well, [ will see what [ can do. [
have not fully made up my mind. You
have a great enterprise, and If you can
manage to keep control of it, it willfinally
be very remunerative to keep l then
left him, and the next day Mckay called
at the office He said Lindsay had in
formed him the night before as to what he
wanted. He then went on to state the
amount, the most of it being in ready
money, and the balance in First Mortgage
Bonds. l repeated my first answer, that
the Company had no money, and had sold
their First Mortgage Bonds. Mckay then
said to methat thestockholders must make
the payment. | told him l did not know
what the stockholders would say about it,
and whatever he had to say further touch
ing this matter must be said to the Direc-
GOTS anu SIOckuOlueTSi ue dSheu Iue WHdC
time would suit them to meet him; l told
him that Lewis Rice, of Boston, and A. c.
Lippitt of New London, Conn, Directors
and stockholders, were stopping at the
Fifth Avenue Hotel, and that he could see
them there that night if he chose to. He
met them, and was present. He drought
paper which he said was written at the
dictation of Gov. Lindsay, a copy of which
is as follows:
Correct copy Of memorandum handed d. "
Stanton By Nathaniel Mckay, IN regard to
consideration, &c.
S15,000 cash.
5000 May l. - a....
5000 June l.
5000 July |.
S100OO0 Second Mortgage Bonds
100000 Stock.
Intnrest IN Sacnnd Mnrtrane Ronds nn1aran-