Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-01-19

jority report, the other a minority report
at the evening session Of h convention,
as follows:
The minority report states that, ''not
being able to agree 20 the report concurred
In by the majority OF said committee, beg
leave respectfully to dissent therefrom,
and In lieu of the resolution adopted by
said majority the undersigned, without
giving the many reasons which influence
them, beg leave to substitute therefor ne
following resolution:
Resolved, by this convention, that the
proposition to lease the Memphis and
Charleston railroad by the Southern Rsil-
way Security company be. and the sam 9
lie hereby rejected"
[Signedl ]. B. MOORE.
r NJ. PATTON"
MAJORITY REPORT.
The report OF the majority Of the COM
mittee was as follows:
Resolved, That this convention do here
by assent 20 the lssss by the Memphis
and Charleston Railroad compan to the
Southern Railway Security company on
the terms Of the original agreement CUB
mitted to this convention, dated ard
signed on the 10Th day of January, 1872,
as modified by the agreement thereunto
attached snd marked A B G, and dated
and signed on said 10Th day Of January,
1872.
Resolved, That the said lease be amend
ed By incorporating therein the following
stipulasicns, to-Git: That the Southern
Railway Security company shall pay to
the Memphis and Charleston RailWaycom-
psny the cash value Of the road materials
the latter msy have on hsnd the Isl day Of
July, 1872, supposed TO be about 100000,
or in some other way arrange 2 same TO
the satisfaction Of the board of directors
OF the company go IS to enable said COM
psny to pay OF its floating debt; and also
by Incorporating therein the following
stipulation, to-Wtt: That the lessee shsn
continue to operate the shops In Hunts
vile, Alabama, to toe full extent Of tbs re-
quireDents OF the eastern division of this
road, and the board OF directors srs here-
by authorized ard directed to execute and
conclude ssid lease IN the terms and con-
ditions shove stated. Be Il further
Resolved, That the acceptance OF this
proposition shsil be made by the said
Southern RsilWsy Security company
within thirty days Of this date.
GOVERNOR PATToS's SPEECH.
Governor Patton spoke at length IL
behalf of the minority report. He was
opposed to the contract considered: ed
verted TO the early history Of the rosd, to
the difficulties encountered by its build
ers; the tolls Of the people snd their
unRnimity, and the universally Of the
diffusion Of the stock, Dividends are
looked for with anxiety by many widows
and orphans. Tae stock was once pro-
ductive, and the road evsn paid profits
before Is was finished. The war had
! changed all this; the stock IL now unpro-
duc5iVe, and has only paid two or three
per dividends since ths war. The
process of railroad consolidation now
obtains everywhere. he was not for
allowing the Southern Security cOmpzn
70 take possession Of the road, unless thev
1 EnnE all Ffa n1Tm-a h. ukEaD NNfE1n AanAn
in East Tennessee that recently came into
possession Of the company. The PROPOSE
ton to sell or lease the road was q new
thing; there was nothing said about such
things six months ago. At that time the
attention Of the stockholders and all those
Interested in the road was directed to the
subject OF building up those connections
sad making them available 50 feeders.
He had the utmost confidence in the
integrity anu enterprise OF the directors:
he knew that many years he sustained
them in their efforts TO make and estsb-
Iish connections. He never dared to
question their judgment. In less thar
SIX months the proposition eomss up to
sell Out-not to put those roads and con-
necticus to thsir intended uEes; not 80
have them put in such effective working
order As would secure the gggrandlz5msnb
Of our roRd-but to sell out. I under
stand Inst This form OF CONTRACT was
drawn up with the unanimous consent OF
the directors. What are the stipulsCions
OF that coatrSct, covering twenty pages
OF g pamphlet That we give 500, 900 |
worth Of property for nothing. Thai We
give the dness lot of wood that he ever
saw, low lying along the road between 1
Memphis and Huntsville FOR nothing /
The report of the majority, 1t Is true, de-
mand payment Tor those In cash. l ssy
Let this SScun5 mpsu AXE all, AXE /
the three roads, which will be Of no use 20
US after the TRUNK line shall have bssn
rented cut, or take nothing. Lst them
take the boae with the meat. The
Leaves $500 coo Of our property
in Tennessee On our hsnds, and proposes
to cede TO the Trust company all that is
yalusbls Of the property Of this company.
They rejecs tbs road rom Dechsrd, snd
leave il on our hands. The argument
is that the company may sell that road
when finished; but who will purchas
stxsy-oue miles Of railroad running from
nO-Whsncs and going no-Thithsr? II
fourteen months from row we hsvs the
remote prospect OF getting that read
turned over TO Us in g finished state-rs
mots contingency. Tbs contract proposes
to give ibis Trust company an outfit with
rnad worth 500, 000, and get nothing.
Mr. Presidents, what do you get? What
do they put IL, in the way OF money, in
consideration OF ali the vsluabls fran
chises which they expect to get from as?
They take The road as an experiment. and
If IL pays, they promise to give Us three
per cent? Il 1t does not psy nothing.
You are asked to give up your stock, not
bSing guaranteed q cent for years. We
are asked to give IL up on 3 promise Of
three PSF cent dividend for Eve years ana
six paI cent. for a great number OF years
afterwards. Are we sure OF getting III
Gentlemen, II you do not want q dividend,
the widows and orphans do. They can.
afford to look ahead four or Eve years
and live upon the hope Of getting some
thing.
But why sell out az all? Is it because
people from New York and Baltimore.
who are said to hsve influence, want 10
run the road and make 1t productive?
We have good men running the road now. ]
You say you are SO tired Of waiting for a {
dividend that you sre willing to do any
thing to get nd of IL. Whist bstter will
you be when you shall have got rid Of TT ]
Is there any reason In the world for going !
70 BJston and New York 20 find men Ia
whose hands you wish to place ten mil
ions of property-men who are not OF us !
Of whom we know nOthing7 Our :
road is now built, completed; 70 don't !
need to lay out any more money on 1t. l
There is no better road In sny country. !
we now TO give It up without any I
money sny cash down lease IL 9
)ub 70 parties VINO EOmls 70 pay :
/ dividend, and thus acknowledge that we e
,snnos run q railroad oursslves4 List !
hem take b bone with the meat: We {
will be left with sdouble set Of machinery o
two boards OF directors, for under the I
of the proposed Lessee, We must Y
our directory. Now, If we could 2
lot make the road pay q dividend with Il
me boardlofdirectOrs, how are we to get a :,
with the expensive machinery y
# two boardsS Do not let any gentle ?
nan here believe for a minute that we '
re to get three Per cent. ThsrS Is no :
iuaraRtee of thsss Even il that could 9
70 psidi it is liable 70 run into some other Z
AdivideDd Ia about the most 4
thing in this instrument. This q
} altogether a one-sidsd affair I nsvsr y
een anything 50 much like the handle of y
jug SIS thiss It says turkey, turkey" q
II the timeon one sids, and "crow, crow" Z
. Persistently on the other, Thst contract q
not oneI would make individually with 4
ny corporation, 1 doubt very much If 81
here Is q man here who would make q con- y
rsct ofthat sort DC bis individual account. o
here seems 70 be sn opinion that common =
msy be dealt with more y
than priYate propertys x
will make Sometimes bargains q
I'd agreements In oorporsrions ths "
}sy would not dream Of doing In 70
concerns. He never saw %
lch q prospscs Of msking money p
fth more certainty and facility thai %
lis lease rave tbe Trust company with
Ut giving snything In return. What 81
Ike 3 promise Of three per cent. dividend
q road that used 70 pay four per cent tr