Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-03-30

mated at 5000, 900 by the President IN thu
hands OF The Peoples Bank. - Al
LIST any man of figures find flaw in ths
correctness of this statement, or its figures
as derived from the first annual statement
of the President now before us, If he can
invite the especial attention of the
proxies, Railroad Commissioners and State
Directors to these facts. Come, gentle.
men, to the facts; no eUGsSog, equSc0c0tS0n
or circunlJOcutSon. We state facts. Meet
them with facts, not argument or rhetoric
on the outside. I. 800 .-- - -
The great length of the report, its varied
arguments upon variety of subjects,
however calculated if not intended to draw
OF the mind from the real salient points
and gist of the thing, yet stripped of all
verbiage, leaves the prominent facts that
we have 20 miles of road built to Lebanon,
and with over one million eight hundred
thousand dollars assets. We have $40
cdsh only ttatis available and contingent
hope Of some 5000, 600 in State bonds worth
now less than GA cents on the dollar, and the
company now owe, that must be provided
for soon, $40, 431. 20 and LIST of June will
have $35, 10000 more interest to pay.
With these facts You can consider the wis
dom of retaining the present management
Of the road. go. -. 49,.
As for the Presidents chimerioal plan OF
raising the wind, by the oompanys' is
suing its bonds to correspond with each
bond delivered by the State to the road,
and to place it upon the market, supported
cOElGterGHy by the deposit Of State bond
of same amount and date, this is too simple
to catch any practical man, whether Dor
rover or lender. This is no place nor time
for the discussion of this theory. 'Sufice
it to say on page % of large printed
argues that by this plan the State is not
injured, and the purchaser can be no
sufferer, and the company would be gamer.
Wonderful plan, to help all parties. What .
pity We can't all see it. 1.-THE State, as prin-
cipal creditor, has a claim against the
company by prior lien (retained in char
ter) for more than the road is to0rth, the
question very naturally arises, how or in
what manner the State, the purchaser or
the company, is to be benefited. The
State has first mortgage, which must be
paid before the company can transfer its
road or assets. The company have moth
ing left to pay with, and cannot, by any
legal possibility, transfer to q second or
third creditor, a power superior to that
they hG0e, and reserved by the State in
the very charter under which they have
organized, hence the purchaser has no
greater security for the payment of his
loans, than any mere blank paper would
afford, other than tie State bond he holds
as collateral. II, as the representative of
q NOr,r1anv 0xyinn mara thar he hos avry
means to pay, and that means all covered
by mortgage, she commits the innocent
folly of issuing her bonds, who, think you,
that has sense to take care of his means,
would be induced to give any more for
those bonds, than for the bonds of the
State, Endorsed by the road in its unfn-
ished condition to-day, is bankrupt:
To our minds this only asks the COM
pany to 90 to the expense and mortifca-
ton of issuing bonds that will be harmless,
Ce7y, OF of just giving taOo bonds that
represent the same amounts, dates and
securities.
Certainly the company don't expect in
any very short time to make divi-
dends that will pay interest, much less
principal, of the cost of their road,
and if the Presidents ingenious
brain has rscked itself to very torture, he
could, in our Judgment, have oontrived no
more certain way Of bringing the road into
disrepute than this. Bot we will not now
pursue this extraordinary scheme. We
submit this hurried review most respect
fully to those whom it may concern, as our
honest convictions.
The President assumes the cost of the
Nashville and Chattanooga Railroad to be
about 1923, 500 per mile; the Tennessee
and Alabama road about $21, 900; the
Nashville and Northwestern road about
$50, 900; built, we think, during the war,
and partly by the Federal Government,
with immense stealages as we have heard.
he puts the Tennessee and Pacific road at
$25, sci. A per mile. We challenge any
one conVersant with figures to take the
statements we have referred to as made by
the President, and reduce the bonds of
State and counties and private subscrip-
ton to cash, at the estimates made by the
report, to-wit: State bonds at GA cents in
the dollar, and Wilson and Davidson county
bonds at 20 cents in the dollar, and make
1t less than $41, 843. 70 per mile less the
$40 cash and the contingency of 5000, 600
State bonds. In this review have ''naught
extenusted or set down aught in malice, !"
but all in the interest of the road, the
State and stockholder
EVENING SESSION.
The stockholders were called to order at
2 O'Clock P. M, when Col. Waters with
drew his cali for the previous question and
also his motion to adopt the report of the
committee.
The following resolution, adopted by the
Board of Directors at their meeting during
the recess, was then read by the Secretary
of that Board:
"Whereas, 1t is understood to be claimed
by certain parties that failure to pay install
ments called has absolutely forfeited the
stock on which such calls have been made,
together with all payments made on same
and all liabilities to further payments on
stock:
Therefore, Resolved by the Board of
Directors of the Tennessee and Pacific
Railroad Company that such an impression
is injurious to the interests of the com
pany, and that to the full extent necessary
to fix upon subscribers of such stock liza
bility to pay the same in full, all such
claimed forfeiture is in each and every in
slant revived and that the company will
claim the payment in full of all such sub
seribed stock" a ... .. -
"This resolution is adopted in order to
enable the stockholders to accomplish the
business for which they are assembled, and
not from recognition on part Of the Board
of its necessity to enable collection of such
stock. - .
''And it is expressly understood that
the Board of Directors do not admit that
such stock is forfeited or that the claim OF
the company is in any manner injured
against the subscriber and stakeholder by
such want of payment, but on the con-
trary claim that such stock is not forfeited
and that the company has full right to col
lect it as the same has or may become pay
aJls." .- ..
After reading the above resolution Judge
Whitworth remarked that he should inter.
pose no objections in regard to the man.
ner in which votes should be cast.
Judge Phillips, of Wilson county, then
moved that the report Of DR.. Kelley's COM
mittee be adopted, and By an unanimous
vote the motion was carried.
Judge Glenn remarked that the reports
of the President and officers Of the road
were before the meeting, and asked what
should be done with them.
Gen. Nancy then arose and said that be.
fore these reports we're finally acted upon
he would be in favor of the adoption of q
resolution simply stating that the reports
were received as information. In ex.
PLANTATION, Gen. Nancy referred to