Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1872-01-25
Lease OF the Memphis
and Charleston Road.

In Memphis last Friday, the
stockholders OF the Memphis and
Charleston Railroad, in conven.
ton, ratified the lease OF that road
to the Southern Security Compa-
ay, Of which Tom Scott is Presi-
dent, for ninety-nins years, by
vote Of FIVE 10 one.
We append that article Of the
agreement which relates particu-
IarIy to the Winchester and Ala
bama Railroad
ARTICLE EIGHTH.-And the said
lessee hereby specially covenants
and agrees to assume a certain
contract between 81. j. Wioks and
Jas. J. Donegan, for and on be-
half of the Memphis and Charles
ton Railroad Company, and Thos.
Sharp ct a., under date July 22d,
1871, for the purchase and opera
ton of the Winchester and Ala
bama Railroad, and to pay to the
lessor, in a note at ninety days
from the ratification Of this lease,
sixty thousand dollars, and a furth-
er sum of two hundred and twen-
ty.five thousand dollars to the
State of Tennessee, in bonds of
the State, with coupons attached
of January lst, 1871, and after,
at that time, or at the times fixed
for the payment to the State of
Tennessee, as recited in said con-
tract, at the option OF the said
lessee and also two hundred
thousand dollars Of Memphis and
Charleston Railroad stock, or the
current market value of eight
thousand shares of said stock, of
the par value Of twenty five dol
lars each, at such date as the
lessee may elect, to deliver the
stock or its equivalent in Dash, as
Aforesaid, such date of election
not TO be later than the time spec
flied by the Court OF Chancery,
as specified in said contract, and
the lessee is to receive aud be en-.
iitIcd to all the rights and prlvil-
iges Of IL stockholders OF said
Winchester and Alabama Railroad
for and during the term Of this
lease and the said lessee further
agrees to construct u line OF rail
road between a suitable point OF
connection with tie existing track
of the Winchester and Alabama
Railroad, and Fearn Switch, on
the main line of the Memphis and
Charleston Railroad, about FIVE
miles east of Huntsville, a dis
lance Of about twenty miles, and
to complete the same ready for
use by the thirty-hrst OF Deem
Der, 1873.
In consideration Of all Of which,
the lessee is to receive the sum
of nine hundred thousand dollars
of the new seven per cent. consol-
idated mortgage bonds, being part
of the FIVE million five hundred
thousand dollar bonds, bereinbe-
fore provided to be issued, said
nine hundred thousand dollar
bonds TO be delivered 10 the lessee
as follows, viz, upon the payment
of the aforesaid note for sixty
thousand dollars, and the two hun
dred ind twenty-five thousand
dollars of Tennessee bonds, the
sum of three hundred thousand
dollars Of said consolidated bonds
shall be delivered to the lessee !
and when the two hundred thou
sand dollars Memphis and Charles
ton stock, or the cash equivalent
thereof, are delivered by the lessee
in accordance with the terms OF !
the decree to be made, or when
said stock or its equivalent shall
be handed over TO the Memphis
and Charleston Railroad Compa- |
ny, a further sum Of one hundred
thousand dollars of said consoli-
dated bonds is to be delivered to
the lessees from time to time, as
the work progresses or materials
are furnished for the new line from
Pearn's Switch to the point of |
connection with the Winchester
and Alabama Brsnch. Or upon
the request, in writing, Of the
lessee at any time, the said five
hundred thousand dollar bonds,
or my part OF them, shall be
sold, aud the proceeds of such
sale shall be held in such way or
in such depository as may be salts
factory to both parties, and to be
paid over to the lessees, from time
to time, respectively as the work
above referred to progresses, upon
the joint order of the presidents
of the respective parties to this
contract.
IG Yarmouth, the Radical
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