The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1871-04-27
OuR RAILROAD.
Terms Of the Eease 70 :. \. Z. .

submitted to she Stockholders at this place
on the 4th proxlmo, for their ratification:
"The n. 3 .. R. r. Co. OF the che part,
lessons, and the L. & n. r. r. Co. of the 9th
er part. lessees, have made the following
CONTRACT or LEASE:
The Nashville and Decatur Railroad Com
pany does heTeb y lease to the Louisville and
Nashville NailTO Rd Company its line ofToad
from the city of Nashville, in the State Of
ft nnessee, to Decatur in the State of Ala
bsma, for the term of thirty 1907 years from
the day they take charge of il, with all ifs
franchises and privileges, right Of way, road
bed, together with contract with Memphis
and Charleston Railroad for right of way o.
yer the road and bridge Of said company at
Decatur, section and depot grounds and
buildings, water tanks, rolling stock, ma
ehiI shops. etc but exsluding and xcept-
Ing from he lease the Mount Ple~aut branVh.
The mOneye1 asSets. chooses IN action, mate
rial on hand, stock in other corporations, the
claim against the United States Government
f01 damages to the Mount Pleasant Branch,
re well as the real estate Of the company not
Necessary for us e in the running Of the road.
But these assets reserved from the lease, OK
cept the Mount Pleasant Branch, and the
claim against the Government for damages
thereto, viii DC applied as hereinafter PIOVi-
ded, TO the payment of the debts Of the les
soTs. And said lease is made npon tbs fol-
lowing terms and conditions, viz:
First Tho track road bed, railing, 6ridg
es, buildings, and All other fixtures to be in
speceed at the commencement of the lease,
and fully described, and at the termination
ofthe lease a like inspection to be had, and
the lessees shall return the road IN the same
condition as at the commencement of lease,
or pay the difference if of less value; and all
the rolling stock and movable property to be
valued IN gold at the beginning Of the lease.
and seTviceable rolling stock and property OF
like value in gold TO be returned at the expi-
ration OF lease. or the amount paid in gold.
The property, mOneyed assets and chooses
in action of the lessons, on hand when the
lessees take charge of the road, other than
the Mount Pleasant branch, and the claims
against the U s. Government for damages
to said branch, shall be used and applied to
the exilnguishmenb of the debIs of the
lessons. If he Mount Pleasant branch shall
be rebuilt of the same guage as the Nashville
and Decatur road the lessees bind themselves
to take charge oft aud run and keep it up to
the expiration Of the lease, free of charge to
the lessons, the earnings of said branch be-
longing to the leSsees.
Second. In consider alton cf said lease, the
Louisville aud Nashville Railroad Co., agree
and Obligate themselves to take charge of
said road and its property, on the LIST day Of
July, 1872, Cor sooner If both parties desire
it, and keep the same IN good repair and
condition, and run said road to the full end
and term of said lease. They assume, obh
gate and bind themselves to pay all tho deb S
and liabilities of said lessons, in which is in
cluded their bonded debt secured by mort
gage or otherwise, and their floating debt,
both not exceeding the aggregate, two mill
lion four hundred and fifty thousand dollars
{ 50, $50 ,000) and said lessees assume and oh
igate themselves to pay the interest on said
debt as it acerues, and provide the sinking
fund for the payment of the bonds under ex-
isting contracts and pay the bonds at matu-
Fity. And the lessees also agree to execute
all the contracts and agreements of tie les
sors, such as contracts with express compa-
MES, telegraph lines, etc., and they shall
make all repairs and imp ovements neeessa-
~ to the preservation and running of said
road, at their own expense, but no improve
ments in the way Of permanent buildings,
etc, shall be made without consulting the
lessons. and if the lessons and lessees cannot
agree whether the improvement shall be
made, an umpire shall determine the qucs-
ton, which umpire shall be selected by the
pa. ties. The lesseeS agree and ObligRte
themselves to pay to the stockholders of tie
Nashville and Decatur Railroad Company
six & 81 per cent annual dividends, pay able
semi annually, commencing with the South
and North Ala. Road that is from the time
the track is laid on the whole line), on the
present stock of said company, amounting
70 one million FIVE hundred and twelve thou
sand one hundred and eighty -four dollars
and eleven cents( 81 81 ,1S4 ID for the first
two years, unless the South and North Ala.
Railroad company fails to pay out Of It's net
earnings the interest on its bonded debt, IN
which event the said dividend shall be ap-
Piled toward the payment of one half of said
deficiency in the payment of the interest,
and should the half of said deficiency be less
than the said dividends for each OF the two
years, then the surplus of the dividends,
over and above the haaf of the deficiency,
shall be distributed pro rata among the
stockholders, and after the expiration of the
two years, the Louisville and Nashville r, r.
Company agree and Obligate themselves to
pay six per cent per annum, payable semian-
nually, as dividends to said stockholders.
whether said deficiency or any part oft ex-
ist or not. But it is further agreed that
should the result of any pending or future
litigation require the lessons to issue stock in
excess of the amount just mentioned, the
lessees agree to declare and pay to such stock
when Issued the same dividends and IN the
same manner as Is herein contracted to be
paid to the other stock holders; provided,
nevertheless, that the lessons shall in good
faith defend such lihgation and. provided
further, that the dividends IN such addition
al stock shall not exceed fifteen thousand
dollars per annum; and provided further,
that the additional stock to be issued on the
result Of such litigation shall not exceed two
hundred and fifty thOusan (250 ,000) do lars,
and 1t is further agreed that all dividends
shall be paid 70 the lessons, and to be by
them paid to the stockholders.
Third. For all payments of the debts and
Liabilities Of the lesscrs by the iessees, other
than interest accruing after the time wh.n
the lessees. take charge Of the road, the les
secs shall have stock issued to them at the
date ofthe payment. But no stock shall be
issued to them for any payments ofintereste
aceruing after the date at which they take
charge Of the road, nor for any amounts paid
with the assets Of the lessons reserved from
the lease
Fourth. The lessees shall have power and
are authorized TO Issue the second mortgage
bonds of the Nashville and Decatur Road,
not to exceed four hundred thousand dollars
q 400, O0O), but so as not to make tie two
million one hundred thousand (S2.100 ,00O)
dollars of bonds issued to retire the State
debt S secondary liability. bat the lessees,
IN that event, shall pay the principal and
interest Of said bonds without any charge
against the lessUrs, and said lessees shall
have no power or authority to sublet said
road without the actual consent Of the les
sorE.
Fifth. The lessons reserve the right to
compromise and settle all suits and disput-
ed clnims against their company, or against
the original companies composing it's pre-
sent consolidated company, subject to the
ratification of the lessees as to time and
manner of payment.
Sixth. The organization Of TIE company
Of the Nashville and Decatur Railroad Is to
be kept up, consisting OF the President,
Secretary and Board Of Directors, as here
tOfOle, at the expense of the lessces, and the
President and Secretary shall perform ap-
PrOpriate duties for the lsssees on that road
not inconsistent with their duties to the
lessons. And it is further understood and
agreed, that the capitol stock Of the Gem
pany Of the lrssOrs shall not be increased
except as herein provided; and if after all
the existing debts shall have been paid and
eOnvcrte ir.to stock, as aforesaid, the net
earnings of the Nashville and Decatur Rail-
road shall exceed six per cent. dividend on
the cspitRl stock then existing, the said net
earnings shall DO divided among all the
stockholders alike.
Seventh. 1t Is further agreed, that the
iesEees shall encourage the ! cal business Of
said Nashville and Decatur Road, and so
adjust its local tariff anG the working and
business Of the road as 10 develop in the
most thorough manner the local business;
and said lessees shall not charge greater
rates on local freights than are then being
charged on tie Louisville and Nashville
Railroad Ter similar distances, and to make
their rates on through iTeights 10 and from