Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-02-24

ton In Memphis, at which it was determ-
ined to lease the Memphis & Charleston
road to the Southern Railway Security
Company:
Maj. Wicks-As matter Of information
/ would say that Gen. Rather has propo-
sition to build these roads, relieving the
Memphis and Charleston railroad. The
parties propose to do all that the Memphis
and Charleston road have contracted to do,
and to pay for the privilege.
The reading ofthe proposition was called
for, in response to which Gen. Rather read
the following proposition:
THE PROPOSITION FOR THE BRANCH
ROADS.
Tanner, Walker and McAnerney, of New
York, for themselves and association, sub
NIT the following proposition to the direc-
tory of the Memphis and Charleston Rail-
road Company: We will complete the rail-
ways from Tullahsma to Sparta Cor Living
ston, or such point between the two latter
places as we may deSire), and lease the ex-
! elusive right of transportation over the
same for period of thirty or forty years
| from the execution OF. the contract herein
! provided for, in the manner and upon the
| terms following: No grade on the road
shall exceed ninety feet to the mile; the
cuts shall not be less than eighteen feet
wide; the embellishments shall not be less
| than twelve feet wide at the top, and with
proper slope. We will complete all proper
bridging, trestles, etc, put in ali necessary
cross-tieS, and lay down Fish plate rails of
not less than fifty pounds to the yard; this
by or before the first day of January, 1874.
We will furnish our own rolling stock and
operate the roads on our own account. In
addition to building we viii repay to the
Memphis and Charleston Railroad Company
the purchase money paid for these roads,
amounts paid out for work thereon and ma
terials, with ten per cent interest thereon till
paid, to be computed from dates at which
the Memphis and Charleston Railroad Com
pany has paid the same, the whole esti-
mated to be about three hundred thousand
dollars. This payment to be made by
us in thirty days after we are notified that
the bonds hereinafter mentioned are
placed as hereafter provided: The
Memphis and Charleston Railroad is
to issue its first mortgage seven per cent
bonds, principal and interest payable in
gold, to the extent of twenty thousand dol
lars per mile from Tullahoma to Livingston
Cor such intermediate point between Sparta
and Livingston as we may choose), with
semi-annual coupons to pay for the con-
stTuction; to put us in possession of the
roads, depots, right Of way, shops, materi-
ais on hand, any rolling stock it may own
on said road, water tanks, wood sheds, ETC.,
so as to enable us to have free and unem-
baTessed control and enjoyment thereof
during our term as lessees, and to assure our
exclusive right and privilege Of transporta-
ton. Five hundred thousand dollars of
these bonds are Immediately upon the
formal closing of the lease, to be placed in
the custody Of some safe trust company to
be by US designed: they or their proceeds
to be paid by us upon our repaying to the
Memphis and Charleston Railroad Com
pany the purchase money, amounts paid
out for work and materials, with the inter-
est thereon as before mentioned. And the
balance of said bonds to be also placed in
the custody of some trust company in New
York, to be mutually agreed they or their
proceeds to be paid to us as the work pro-
crosses, on monthly estimates to be made
by such engineers as may be agreed upon,
whose charges for making the some We will
pay; and when the whole work is done the
balance of said bonds or proceeds thereof
as may be in the hands of the depository
as belong TO US. We are also to collect and
own all subscriptions made
or TO be made in aid of the
construction of any portion of this
line, and apply them as we see proper in
construction, equipment or otherwise. We
agree to carry out all contracts which the
Memphis and Charleston Railroad Com
panY has hitherto lawfully entered into
in reference to said roads, and perform
them in good faith. We also agree Ito
enable the Memphis and Charleston
Railroad Company to keep its coupon &C
county to pay to said company one thou
sand dollars per annum during the lease,
and an amount sufficient TO pay the semi
annual interest on the bonds issued and
outstanding accruing after they or their
proceeds are delivered to us; and if We at
any time during the lease choose to take
up the bonds thus issued and become
owners of the roads with their franchises,
etc, leased to US, We have that right, and
the Memphis and Charleston Railroad
Company is to cooperate with us in any
practicable method to be agreed upon to
enable us to do so, provided the roads |
shall not have been previously sCld as
hereinafter mentioned. We agree that if |
at any time after the completion Of these |
roads the Memphis and Charleston Rail- |
road Company has a bona fde offer for |
their purchase which it will accept, and |
gives us thirty days notice of the fact /
with all particulars, and we do not choose |
within ninety DAYS after services of such |
notice to become the purchasers, then and |
in that event the said company may sell |
aaid roads, but no sale is to be made to
others without giving us the preference
right of purchase, on as favorable terms as
said company is willing to make with others.
Upon the termination of the lease the roads,
ETC., are to be redelivered in good working
order and condition, and an account taken
of such rolling stock, materials, ETC., as may
be on hand, for which the Memphis and
Charleston Railroad Company is to pay a
fair value if it elects to make such pur-
chase; otherwise we are to sell them as We
choose. We may determine whether we
will close this matter by formal contract
of lease upon the above basis and with such
as circumstances demand.
We reseave the right of delay for that pur-
pose till the first day of July next, at which
time if we determine TO make the same
binding we will, upon receiving a formal
lease as above specified, execute bond sa-
tsfactory to the company in the sum oftwo
hundred and fifty thousand dollars penalty
for faithful performance and compliance
with all the terms of our contract.
February 20, 1872.
TANNER, WALKER, MCANERNEY & Co.,
By Ed. W. Munford, Attorney.
Major Wicks stated, in explanation of the
gentlemen comprising the party proposing
to make the lease, that some of them were
leading oil and iron men of New Y ork and
Philadelphia. 1t was their intention to de-
velop the resources of the country through
which these branch roads run. They pro-
posed to raise a cash capital and divide it
among themselves. He was a member of
the proposed contracting parties. The rea-
son for asking for time, was to allow of LO-
gan, Hunt & Co., of Philadelphia, who
were, perhaps, the largest oil dealers in the
to prospect this country for oil.
To do this they were intending to send
three engines out there, which would,
whether successful oNpot, enatil upon them
an expense of over $4,000. If the oil was
there they would close the lease. If not,
they would not. He stated that there was
eight wells sunk in Overton county, three
of which were dry. The other five were a
success. One of them flowed
1000 BARRELS PER DAY,