Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-10-10

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4 Prior to the wsr. tlae Stais hss3 iss,s.ss, d,
our company her bonds to the amount on
S1,455, 900, all Of which were fsithfallV ap-
piled to the purposes for which thew were
1 issued; and, as appears, there has been Is
sued to our company since the war, bonds
to the amount of $1,767, 600, but your me-
Inorialists respectfully submit, the company
ought moi, in Justice, to be held liable for
that portion of the bonds which was issued
to the receivers without authority of law
1 as we believe, amounting Co the sum Of
5000, the proceeds Of which have. at
4 least for the most part, been souan-
dered, and these are the bonds referred
to by an act of the Legislature at the last
session, in which it is declared that certain
| bonds had been issued without the autbo-
rity of Jaw, TO which reference IS hereby
| made. The company has issued and sold
| second mortgage bonds amounting in the
| aggregate TO about $500, 900, and has created
in addition thereto floating debt of about
S274,925.15, without interest. The paid-in
capital stock of the company amounts TO
Sf,150, TO or more, of which the county of
Davidson has paid the sum of $500 900 the
city of Nashville, $4,000; the county of
Humphreys, $4,000; the county of
| Weakley, 100000; and the city of Hick-
man in the State of Kentucky, the sum of
| $4,000, whilst the balance has been Maid
] by individuals living along the line of the
! road. $780,
The fact is notorious that nothing
was realized to the State or stock
holders out of the earnings of the
| road, over and above its expenses,
whilst it was in the hands Of the receiver,
| and the fact is equally notorious that &C
cording to their reports the expenses ex-
ceeded the receipts all the time So il ap-
! pears from the reports Of the lessee Under
the first lease that from September, 1868, TO
Jan. l. 1870, the road failed 20 pay its ex-
penses by S31 ,32S.06, and under the second
lease, from Jan. /, 1870, to Sept. 1, 1877 it
| has failed to pay expenses by 1858, 1ST.6 S,
showing loss under the two leases of 1884,
1904. F4 fn
In view of these facts it might seem
strange indeed, but the fact is, that while
the road was operated by the company, and
only completed from Nashville to johnson
vile, during the year ending June 30, 1867,
the earnings of the road exceeded its ex-
penses between said points the sum of $751;
345.17, and during the same period,
the earnings exceeded the ex-
penses on the western end,
and during the same period n. Burns,
the President OF the company, paid ABOUT
$4,000 of interest upon the bonds of the
State, loaned to the company.
Thus, this singular fact is presented for
your consideration, that while the road was
incomplete, and operated by the company,
it more than made expenses, but after its
completion, operated by receivers and les
sees, the expenses exceed the earnings. We
forbear comment.
As we understand the policy of the State
in granting liberal aid to railroad compan-
les, the prime objects were to stimulate the
industry and enterprise of her people, to
render them independent and prosperous,
and to develop her resources, and we
deem it scarcely necessary to remind your
honorable body that there is great danger if
you permit our road to be sold
to the highest bidder, that it win
be purchased by some railroad ring,
composed Of foreign capitalists who have
no identity of interest with the people of
Tennessee, and thus the dearest interest of
the State may be sacrificed, the most laud- |
able objects of our internal improvement |
system defeated, and the road used for the |
purpose of crushing out the very interests |
which it was designed to foster and encou- !
rage. When this work shall have been &C
complished, will not every proud Tennes-
seean feel the deep humiliation which such |
policy must bring upon us?
Those whose enterprise and industry |
built the road, are citizens Of Tennessee
Most of them are men of small means liv- !
ing along the line Of the road. They feel |
that it certainly can not be in accordance |
with the true policy of the State not only |
to crush them but then to hand them over
TO the tender mercies of ring of moHed |
spectators.
Your memorialists will not attempt |
to disguise the fact that there are |
some persons who are exceedingly anx-
iOus that our road be sold-not, however, !
for the purpose Of relieving the State or of |
preserving her credit, but that they may |
become the purchasers for purposes Of spec
ulatiOn, and of self-aggrandizement.
The stockholders ofthe Nashville and North |
western Railroad, wish to retain and oper-
ate the road in the interest of those who
built it, along its entire line. They are
willing and believe they will be able to pay
a fair and reasonable price for the road
whenever it can be freed from the incum-
branceS now resting upon it. They are IN
able to purchase the road at the price fixed
by the Chancellor, because they cannot
mortgage the road for that amount, and
they believe the same is largely more than
it is worth. Indeed if the result of the ex-
periments made by the receivers and the
lesSees is to be taken as the true test then
it is worth nothing.
In behalf of the stockholders and in con-
sideration of the premises, We would mots
ask that your honorable body
take the matter under favorable considera-
ton, and through your committees or other
wise, as may be most satisfactory, ascertain
the truth of the statements contained in this
touching the history and opera
ton of our road, and what, under all cir
would be fair and reasonable
price to be paid by the stockholders for the
road, its property and franchises /; and so
provide that the true interests of the State
may be protected, and those composing the
may be enabled to purchase and
operate the road; and that you grant to
them all such other assistance as you NAV
deem meet and proper. Yours respectfully,
ALVIN HAWKINS, Pres't
A. ID. KINGMAN,
Y. S. ALLEN,
Committee.