Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-02-22

ter OF 1911 we had an incrsas8 Of nine per
cent. At 3 meeting Of stockholders, We
settled thet we had . dividend in sight.
But \ folloWed2 Through the foods
In Virginia we could trace q declinsIon
OF ten Der cent for the fiscal year ending
June, lS1l. This year our receipts will
be less. The completion Of the North
western rosd took from as three -fourths
OF the products Of the trade of the North
west from the Atlantic States Within
the last year the Selma, Roms and Dalton
railroad has been completed, making
their connection by the way of Selma and
Rome. When the Alabama snd Ohasts-
noogs road is successfully worked We will
be tapped again, they getting what Is
most profitable to us-ths passenger traf-
nc. for It viii mozt sssuredly take that
route. That is one reason why I am IN
favor Of the lease. 1 saw danger
ahead. The Pennsylvania company
control b line from Jersey City
TO Richmond, With the exception Of q
snort hns which they are nov building
They are controlling a line to Charlotte.
North Carolina, Then they are building
3 / to Atlanta. Should we then stand
by and see his corporation go below Us
and ultimately cut us Of entirely, OF shall
We go and get three per cent. dividend for
nVe years and six per cent guaranteed after
that time, She Security company taking
care OF q interest. We have now an in
creased bonded debt growing out of the
interest during the war, the purchase Of
rolling stock and the rebuilding Of the
road. It will take q corporation and q
strong q to pay all of this interest and
psy q dividend. I have said that these
parties own connecting roads By
the wsy Of Richmond to Atlsnts,
and they own the majority of stock
in the East Tennessee and Georgia
n Now, sir, VIZ have TO offer them
some tnducsment. So far a. their capital
10 concerned, q own capital Is five mil.
hon dollars. They are gentlemen Of the
highest capital and resources. Suppose
ten OF these gentlemen were TO put down
tWo hundred or ever y hundred thou
. dollars apiece. One million dollars
would buy the controlling interest In your
road. Two million i've hundred thousand
dollars, at forty cents, controls your road
NOW DO we not stand in some danger OF
thar They could buy two million five
hundred thousand dollars for one million
dollars, and then give the stockholders
Whas they pleased. The profits upon the
which the General refers TO- admit
promise we'll, yet ct the same time we do
not know what effect they viii have upon
Tennessee. As to the increase upon the
bonded debt, who would pay the INTEREST,"
would guard them against any in
crease but what was absolutely necessary.
LIST as look st our local business. Be-
lore the war We produced $50. coo bales OF
cotton per sunum on the line OF the Mem
phis and Charleston railroad. Since the
war Is is now reduced to 50, 600 bales.
About n acre In three of the open lands
is now under cultivation upon the lins Of
the road. We trust to get the land set
tied up but cannot succeed IN getting q
foreign population to come here. whereas
tne negroes are being drawn to the rich
lands Of the Mississippi and its trlbuts-
ries. l hope this company, with the re-
sources 81 their command, viii stimulate
immigration to this part Of the country.
We sent an agsnt out to Europe for this
purpose but he returned bsfOre his time,
reporting that it was useless to incur the
expenditure 20 induce settlers to come
here.
Now as to the contract. There was q
committee Of four appointed to go to
New York We made the best Offer
We could under a contract. We put that
contract in form. When we returned
here / wanted q reservation for the road
m~sterials. When looked into the float
ing debt OF the company I wanted to free
the o from this incumbrance and 1
stood up for the reservation Of 500. 900.
The Security company would not accept
II. They said we must abandon this point,
and we agreed to issue bonds for $500 coo
@-~~8 - R0fCl1FN1U ~ Agkgh ~ 2 1lAA1
money from a debt due US By the United
States government, thereby saving the
necessity of using the SEQ, 900. have no
interest in the lessee other than IS one
wishing the welfare OF the road, but IN
der the proposition to lssss the sparta
branch, il should b5 borns in mind the
Memphis and Charleston railroad COM
pauy is compelled to build this road, and
the only question Is whether we shall do
il ourselves or get SOMEONE else TO do it.
sam TATE
followed Msjor Wieks. he said he bad
been connected with the road from its be
ginning. II it we're in IS bad a condition
as represented Tom Scott could not meet
his obligations. The iron is worn. The
newest is Of March, 1867. Ten per cent.
per Dnum of new iron Is required to
keep up q road. Thirty miles per snnum
must, therefore, be provided for. We
svcid this by laying down steel rails. The
best friends OF the o are those In favor
Of psging stockholders dividends. There
is no other way bat by leasing the road.
They give ak per cent. after i've years
and three per cent or more for tbs FIRST
i've years. LOuisYille New Orleans
lines, and worse, the Psducsh and New
Orleans road viii soon be finished Never
another ticket via Grand Junction will
then be sold. The Mobile, Meridian and
Chattanooga line Is now opened. Three
shorter through Inea are thus in opera
ton. The Western and Atlantic and
Chattanooga end Bristol lines again con-
tract III They must 90 oyer
StsntOn's line 70 Texas. Louisville wants
the Little Rock road, and will get Il il this
contract be not made. Scott takes all cur
western roads beyond the Mississippi.
He viii thus control travel from ths vest
through to New York. Before the war
this consolidation Wss not needed. LEGAL
business won't pay dividends or debts. IN |
TIRES years you viii havs to borrow money
10 pay interest on bonds. Where can you
look for diVidsnds7 II we could control
connecting roads dividends would bs pos
sible We have sought to consolidate with
Norfolk lines, but couldn't do il.
Colonel M0nford read the charter, I
showing that tbs stockholders were su-
thorizsd to make this lease. Decisions
Of courts In favor Of the msjority's power
to hsse, especially OF New Jersey courts,
were referred to. They have often deter
mined the question. The bare PROPOSE
ton TO lease, said Colonel Tate, has added
from s3O0,O00 to 100000 TO the vslus
OF the STOCK. The small stockholders VIII
be the sufferers II tbs lease be defeated,
a $500, 900 viii control the stock. De-
feat this trade, snd the stock goes to thir-
~ cents or twenty-five cents, sud the
ring" viii control dividends as they
please, holding a majority Of the stock.
b contract forcss Scott to Obey the
charters of Tennessee, Alabams and Mis-
sissippi. Il Is said he 'prohts are to be
given TO aliens" They sre bound to pay
interest on bonds and to psy stockhold-
ers. If they fail, ysu take instant pos
session Of tbs road. With the roads they
control, you can't make this road pay
Two million dollars of annual receipts
would be required. You can't get them,
INT Eh1u ran RaOnfnsa nnH nnna< Ia In
creased BY $500. 600 to make the o psy
dividends. They will constantly grow
less unless this trade be made.
THE wIEcHEsTER BRANCH
jerk 500, 900 from the company and
Io1 ind It, and yetyou must pay it
1nder your contract with the owners OF
hat branch. The charter authorizes the
farming out" Of the roRd and its fran
,hises. A lawyer can argue the wrong
i1os Of a question as well as the right, and
Houston shO as it.
LzssEEs CAPITAL.
don't rely on the capital Of the Southern J
Railway company. It has My {
paid up capital of 5000. 600. It is the
lbility Of the individuals composing II to
AIRY out their schemes. Their conrsc-
Ions are omnipotent. Your boerd Of d.
ectors Is paid to prevent the REMOVAL of
our property. The fo-rty-year bonds
which the Southern Security Railway
ompsny gets can't go ssove ninety cents, 4
such bonds generally average from
evenly to eighty cents. The profit on
,ennessee bonds will be lost in building :
be branch by the Southern Security Rail- =
ray company, No company lsastng & :
cad sgrees to pSy tor perishsble property, +
thaY only agree to return ths mate :
lals IS good as those they got when exc :
uttng the lease. Mr.. Tate said that :
oOtt would not agree to pay on this per y