Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-05-03

II
This msy be attributable to two causes;
first the general depression of trade and
commerce, caused by the war in Europe
and the low price of cotton, and second
ly, the opening up of the railroad lines
west of Nashville has drawn from
4 you large portion of your
comparatively small earnings for
through business This will continue
to be the case more and more as those
roads are improved and kept in good
running order. 1t may be assumed that
the net earnings of last year viii approx
innate the average of what may be ex-
pected in the future, should The South
and North road remain unfinished; but II
must be understood that this does not in
clude expenditures for new iron and con-
struction of bridges, which this year
amounted TO about 500, geo for the for
mer and $50, 900 for the latter. Nor
is the purchase of new rolling stock
included, which must be made next year
or the year after, at fufthest. The COM
pany have made no purchase of rolling
stock since the purchase made of the
United States Government at the close OF
the war, except q few passenger coaches.
Of course 1t is very much worn, and very
expensive to keep in good order, and per-
haps it would have been economy to have
purchased new, but the company did not
have the means to do 80. ~ !.
II is proper to state that the
company has two lawsuits-one with
the United States Government, and the
other with the Tennessee and Alabama
income bondholders, both involving some
| $470, 600. Should both or either of
these suits be decided against the com,
pany before the early completion of the
South and North road is established, the
effect would be TO involve the company
to such an extent as to be almost impos-
sible to extricate it from ruin. In view
of these difficulties it may be well con-
ceiyed the deep solicitude felt by the d.
rectory in every movement connected
with or interfering with the early com
pletion of the South and North Rsilroad,
for our only safety from ultimate destruc.
ton depended upon its early completion,
and when it was ascertained in March
last that that company was unable to go
on with the work beyond Elyton, at
which place they proposed to stop, they
knew that il meant postponement of
the completion of the road to Decatur,
to a point If time that would prove
disastrous to the interest of your compa-
ny, and with every energy in their power
they have sought to prevent that course.
The following may be mentioned as
some of the reasons in favor of the lease:
l. 1t secures the payment of the liabi-
lities of the company of every kind and
character.
2. 1t will render the stock of the COM
pany, amounting to over 81, 500, 900 valu-
able, whereas without it it will remain as
it has been for many years, almost value
less.
8. 1t will pay upon the stock 8 per
cent annual dividend guaranteed, thus dis
tributing upon the line of the road over
$50, 900 annually.
4. 1t secures the construction of the
South and North Alabama road within
twelve months from the ratification of
the lease.
5. The construction of the South
and North Road secures to Nashville and
Middle Tennessee the shortest and most
direct route to the Gulf that can be built,
placing the markets of the towns and
cities of the cotton region of Alabama
and Georgia at their doors, as well as the
trade of the West Indies, Central and
South America, which is mostly provis-
ions.
6. 1t gives to Nashville tive streng
competing routes to Savannah, Columbus,
Montgomery, Selma, Elyton, Talledega,
Tuscaloosa, Pensacola, and every other
important town in that section. AS it is
now, she has but one, and that is
by the Nashville and Chattanooga railroad.
The following table of distances will
prove conclusively that these two routes
must become strong competitors for the
freight and travel to these points, to-wit:
Nashville. via via DiHar.