Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-08-04
UNION AND AMERICAN.
EDGEFIELD AND Kentucky
RAILROAD.


Board of Directors of the Edgefield and
Kentucky Railroad Company is dead, be-
cause the stockholders declined 10 pur-
Chase the road. Suppose they had de-
clined to purchase bank, or TO build e
new markeihouse, would that have killed
the Board of Directors9 According to
the reasoning of the Banner, they GER
tainly could not have survived the shock.
Some of the best legal minds in the State
say that the corporation has all the pow
ers end functions it ever had under the
charter, and will so continue until the
property and franchise of the company
are sold, and decree entered confirm
ing tie gale. The law created the
corporation, and the law will dissolve ii.
This question the Banner and the legal
profession must settle. But why raise
these legal questions amongst the stock
holders, that will have TO be settled by
the courtE2 II is charged that the Board
OF Directors have raised the question of
increasing the capital stock of said COM
pany from $3.50, 900 to 81, 200, 900, Upon
this subject the Banner is not informed.
Now, 80 far from the charge being true,
the stockholders at their meeting IN Nash
vile on the 12ib of June, 1871, adopted
as sn amendment to their charter,
amongst oihtrs, an act passed by the
Legislature, on the Sth day of No
vember, 1858, entitled an act TO
amend the charter of the Edge
field and Kentucky Railroad COMPANY,
which act states specifically that the cap
i;al stock of said company shall be ST.
200, 900. The stockholders in their ac-
ton rlfcr to the date, page and title of
said act, and unqualifedly adopted ard
accepted it as part of the charter, and
Davidson county voted for il, and at the
same time an agreement was drawn up
ard signed by part of the stockholders,
looking to the neaO company in which is
Incorporated the substance of the amend
ment increasing the capital stock. 1t
then appears that so far from the
charge being true, that the Direc-
tors nave raised the question of increasing
the cspital stock of eaid company
to 81, 200, 900, they are only carrying out
the specific instructions of the stockhold
CTS. Then if there is any watering If
stock, it is an act already performed
6y the stockholders, and not enc pro-
posed by the Directory as charged.
Amongst the many and leading arguments
used by the Directory and business men
Of the stockholders to increase the capital
stock, wss this, that it would establish
basis of CIT dit upon which the company
could if they chose, Issue bonds and raise
money to pay for the road, and to enable
the small stockholders 10 save their stock
in the old company By paying it in calls
as is usual in stock companies, as
the great object of the State acting
as parent toward q child, was to give
these individual stockholders chance to
save Whist they had lost Now, ii is
known to sll who have investigated the
question, thst it will require st least
$500, 600 TO make the first payment to the
State, and the repairs that are compelled
TO be made on bridges, etc, on the road.
Assuming $500, 600 as the stock, are not
the Individual sn ckholders liable to be
called upon st oDce for every dollar of
their stock This of course closes them
out, unless they are rich. With basis
of 81, 900, 600, q call of twenty five per
cent. upon the stock will produce
$500, 600, the sum absolutely re-
q1ired, making g vast difference 10 the
payment to be made by Davidson Coun.
ty as s,ockholder and the individual
stockholders. The first proposition viz
tually excludes nine-tenths of The indi-
vidual stockBe ders, the last securing the
renewal of nearly al the Individual stock
in the new company. /. is admitted by
al that the capital stock must be raist d
at some time. Why not now, and secure
ali The original stockholders in the new
company The 81, 200, 600 basisis not more
than the cost under the decree, and TIE
amount necessary to make i a first class
road. This being done, sac esS will fol-
low, aid independence Is certain.
The Directors of the Edgefed end Ken
lucky Railroad Company are all large
stockholders, all citiz- Us Of Robertson
and Davidson counties, al Tennesscesns,
men of cspscty and integrity, and We
are satisfied lsboring in Every possible
manner to secure the road permanently
for our OaOn home people and jealousy
waichiul Of our home interests. When
it is known that no corporation nor indi-
vdual who is not stcCkhOldeT II the
old company can own stock IL the new
company, except by consent of the stock
holders, the warning IF tie Banner
to the business men of Nashville, that
when the capital stock is increased the
road pas CO into the hands of a hostile
monopoly" Is gratuitous. If it is in
tended for guess il IS reckoning with
oui its host, but if designed as refec-
ii Il upon the friends of the proposition,
II IL simply false, STOCKHOLDER.