Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-02-22
THE TRADE IS mADEi.
The HsmphIs and Charleston Railroad
Leased to the Southern Security
Company.

50MpAhfs
What the Stockholders had 10 Say About
the PrOposltloa-The HestIEg at
the Assembly Hall, Yesterday,
A PropOsltIsH from a Mes York Firm for
the Sparta BranOh-StirrIEg time
Very Strong Contest.
The stockholders In the Memphis and
Charleston railroad company met yester-
day morning at half past ten O'Clock in
the Assembly hall Memphis. Geurge P.
Beirne, Of Alabama nominated Hon.
Jacob Thompson to serve IS president Of
the body. Mr.. Thompson was unsni-
mously elected. Mr. j. 4. Petit proposed,
and Col. L J. DuPre was made secretary.
A committee on proxies wss appointed
by the president. Messrs. Willis Garth and
J. NJ. McAllister 20 represent the eastern
division OF the road on this COMMITTEES,
and Messrs. ]. 7. Petit and @. F. Smith
the western Ed. W. Munford moved
that stockholders In the rosd be permitted
to traverse it on the production Of their
stock certtdcstes At any time during the
week. The proposition was unanimously
agreed to. Mr.. Houston, OF Alabama moved
that the convention adjourn till two
and half O'Clock this evening, that the
committee on proxies may have tins 70
prepare their report. The motion was
adopted and the convention adjourned.
AFTERNOON SESSION.
The committees appointed to consider
proxies reported the stock represented in
the western division OF the road by proxy
was 81, 1908; in person 2 4.508; total ofwest-
ern division 81, 121. Stock of eastern diVi-
sion represented II. $50 shares; in person,
q, OH The whole number Represented
being lbs $50 shares; The whole number
Of shares of stock outstanding being 2I2,-
coo shares; l6 600 shares of stock repre-
sented by informal proxies were rtjscted.
In each case of this sort the holders OF
the proxies were instructed to vote for
the lease.
After these reports were submitted,
General Rsth5T said the board of direc.
tors OF the Memphis and Charleston rail-
road company had requested him 10 sub
nit the following
PROPOSED MODIFICATION
of the terms of contract submitted by the
Southern Railway Security company 20
the stockholders conventions:
"MEEPHIs, January "a, lS72-
SIT Is hereby agreed between this Mem
phis snd Charleston Railroad company
and the Southern Railway Security COM
pany that the lssss heretofore signed,
snd dated January 10, 1872, and msdifca-
ton Of same date, be closed with the fol-
lowing additional modification, VIZ: The
Memphis and Charleston Railroad COM
psny shall issue, in addition to tho bonds
therein agreed to be issued, other 800 coo
of similar bonds, which, or the proceeds
Thereof, may be used in paying the float
ing debt Of b Memphis and Charleston
Railroad company, said Memphis Gnd
Charleston Railroad company paying the
interest thereon, and provided the shops
be kept up at Huntsville, as heretofore
required, subject to the ratification OF q
general meeting of the stockholders, to be
held at Memphis OF the 2lst day Of Feb.
ruary next, and subject to the approval
of the board Of directors of the Southern
Railway Security company.
".aemphis and Charleston Railroad
"M. J. wICKs, President.
Southern Railway Security Oompany,
by B. f. NEWCOMER,
"Vice-Pnesident."
TO BE ACCEPTED IN FIFTEEN DAYS,
It was moved by George P. Bieine that
in case the Southern Railway Security
company accept the above, that it should
be made known within ten days.
Colonel Bradley amended this by sub
stituting twenty days.
Il was finally resolved that within if |
teen days the Southern Railway Security
company should signify its acceptance or
rejection of the contract as proposed to be
modified.
Before reading the foregoing sdtlendum
TO the originally proposed contract Gen |
ersI Rather said he would state that the
proposition to lease as amended by the
stockholders was submitted TO the South |
ern Security Railway company and by /
them rejected. They declined 10 acce5e |
to the amendments passed by that con-
vention, wher6upon the foregoing; paper |
was prepared and agreed TO by The con.
tracing parties. General Rather sRid he l
was instructed by the Board Of Directors |
Of the Memphis n Charleston railroad
company to say that they had approved
the amendments now submitted.
Colonel Brady said he was not present
az the meeting of directors and that he
would have opposed IL.
President Thompson explained the Sta
sus OF b question snd said they must
now determine whether TO aoc1ps the
Colonel Bierne proposed as an amend
ment to the propositions submitted by the
that If the propositions by the
Southern Security Railway company be
accepted the terms define that they
must notify the president OF the Memphis
and Charleston railroad within
fifteen days of this scceptsncs.
Mr.. Rather explained tbs purpose Of the
OF ths $500. 600 bonds additional
the $4,000 originally agreed 10 be is
sued. To this the Southern Security
company assent, the Memphis and
company paying the interest.
RHUunEOR DAuuuNrr 1
then spoke at length against thu whole
contract as proposed to he scceptsd, and
specially against the sugmentza lion of
me bonded bebt by the sum Of 1900, 900.
characterized the contract ss one
we give everything and get moth
-ng. He dePlored the loss Of hsrd.esrned
gains In bUilding the road. Of its success
before the WAY. Each stockholder used to
get eight per cent. he spoke of the
watering of the stock rendered necessary
BY its p~roftableness. He advsrted to the
ossas caused by the war, and of the des-
osrate condition OF the road, 10
he renewal OF bridges and road
beds, rolling stock and 10 the
l~on-psyment Of dividends. We were
to give the Southern Sc
.urity Railroad company means OF run
ing tne road for years wood, et0. The
lrs5 proposition was that these things
to be returned at the close of the 4
easS. Childish. A souIless CORPORATION,
here Is no evidence that the South :
I'm Security Railroad company has
nore than $4,000. He wantsd ev-
dence that the Southern S0ourity
taitroad company was s0methinH more
hsn straw. BE would know something
I the sotVency Of b company. BE s
TODD here the advocate cf the
and orphans, The road {
1900 900 when originally 9
luilt. and at the commonwealth the |
was at psr. At the close of the war :
: was in good condition; but, since, I
hey have only receivsd two little divi- /,
ends, and, without casting any re1ec- /!
ion, the inquiry is: "How Ia it the road !
as got down 60 low that they ars COM $
relled to give IL away on very unsitisfac- E
DRY terms3" 1t wss q one sided con- 2
rset. The proposition is simply this, as 1 9
the contract: We not only I
i've the rosd away with prospective sd- .
bat what do the security oom- q
sny want that we should hand 1t liver to p
hem, with materials for runnins, 1t at r
nce3 They ssy they would return this II
lateral IN ninety-nine years, al II we o
IeTe children. He maintained that s
here is no evidence that more d
han $500 have been paid over Il
y these gentlemen as q corporation. It z
Tas no more than q company Of straw. Z
n making this contract, we ought to <
now with whom we are contracting be- 3
,re we are willing to subscribe thereto, Il
Is stood in behalf of the stockholders, 7
Ie was unwilling to plsca this property q
/ the hands Of a company, where they q
ad no evidence of ever getting TIE divi- II
ends offered, We concede everything, q
nd have the prospect Of getting worry lit u
8. It might benefit b city, but how n
-SH he 70 be paid3 he thought The up q
OF the city should not be at the X
lcrlfce Of the stockholders OF the COM II
my. he guarded Thorn sgainst selling "
lat corporation ten millions without e
avinR 3 guarantees that they would COM b