Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1872-12-19
Letter FROM MEMPHIS.
Trouble I'm Financial FCireIes-A Railroad
Company Verging Upon Bankruptcy
Suspicious Transactions.

company Ner&lng upon bankruptfy-
Suspicious Transactions.
MEMPHIS, Dec. 18th, 1872.
Financial circles have been somewhat eX-
cited in this locality, by unexpected devel-
opments. The new President of the Mem
phis and Charleston Railroad has issued
circular letter in which he sets forth the
financial condition of the road in way
not at all pleasant to those interested. Ii
appears from this exhibit that the liabill-
ties of the road exceed its assets by about
$500, 900, and those acquainted with the as
sets represent them as not amounting to
anything near their face value. In order
to save the road, stockholders are asked to
contribute ten per cent. of the amount OF
their stock. To say that such a demand
comes like clap of thunder in clear
sky, would be putting it very mildly. But
q short time ago, dividends were being de-
clared, and it seems very strange that the
road should become so seriously involved
in SO short time. If the road
was in debt then, where did the money
come from to pay dividends? If the Of
ficers of the company. were SO flush then,
why is it SO hopelessly involved now? Did
its former managers borrow money to pay
dividends in order to keep up appearances
to keep up the price of stOck-or has the
business of the company been SO recklessly
mapaged as to account for the present
state of affairs? These are questions that
come up very naturally and people tet0
tdlE. v
Three of the Directors of the road, re-
siding in North Alabama add a significant
>f nira 1lrsr,l nff
issued by Mr.. Rather, (the new President),
to the effect that they have no doubt of the
honest application of the ten per cent. call
ed for, to its legitimate purpose. They en-
dorse the honesty of the new President,
land very Justly we have no doubt, for he
seems to be gentleman of the very high
est Integrity and say he will honestly APP
ply the funds Why, such declaration,
if the funds have been honestly managed
by the former President, who is reported
to have resigned few weeks ago on ac-
count of urgent prfgdte business? All,
thereby hangs tale. 1t looks very much
as if there was large sized cat III the meal
tub.
Whether, in view of past transactions,
these stockholders will respond to the CALI
made upon them, remains to be seen.
Thousands of dollars of the stock is owned,
in North Alabama, by the
estates of deceased persons-by widows
and orphanS-who have been induced to
subscribe to it because it was thought to be
a safe and paying investment, and now
for them to have to come forward and
make further contributions to save the
stock from irretrievable loss as the resulto of
mismanagement, to use no harsher term,
it looks very hard. 1t looks very much as
if some men who have stood high in the
world, as men of honesty, integrity and
financial capacity, have betrayed the con-
fidence placed in them, and have been
playing high game on other peoples
capital. --r.- Pa rE-s.
Col. John Baxter, of Knoxville, arrived
in the city to-day and is being consulted
in connection with q debt due from the
late Memphis Savings Bank to some of its
creditors. Things do not look very
we'll, we ( learn, for the Bank and
Mai. Moses J. Wicks, President of the
bank, announced Immediately upon its
failure, with something of flourish of
trumpets, that he stood ready to discharge
it's obligations out of his private funds. 1t
has leaked out, and present indications
point to ansearly development of the fact
that the assets of the bank, as well as his
private estate, are not much security to
creditors. The assets turn out to be of lit
tie value. near OF several thousand DOL
lars of National Bank stock reported
among the assets that appears to be owned
in Baltimore. Among other assets is $780,
600 Alabama and Chattanooga Railroad
second mortgage bonds. And then there
is $50, 900 notes of the Bank of Chatta-
nooga. Notes on private individuals have
been spoken of, which either do not exist
at all, or have been Cancelled. Upon the
whole, the thing wears an ugly look, and
a bill in Chancery might unearth some
things that would add nothing to the
for honesty, of those concerned.
AS it is proposed to hold the Directors of
the bank responsible for its obligations,
further proceedings may be of interest to
such men as w. b. Greenlaw, Sam. Tate
and others. With such transactions in
the background, as seem now to have
taken place in connection with the failure
of this bank, no one will be surprised that
the principal actors look with some concern
upon the presence of such man as Col.
Baxter, who with other eminent counsel
is to overhaul their transactions. He has
a penchant for unraveling such things,
and unless a compromise is effected, the
public may look fer developments that will
place some of our Tennessee financiers
alongside of Jay Gould, only on smaller
scale. .t lah a w. r,