Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1872-11-15
RAILROAD MATTERS.
Meeting of the StockhoIders-..A Lively
Session.
The Security Company and Gen. Malone
Fully Discussed.

|
terday morning at 10 o'clock, Jos. r. An
derson, Esq, in the chair. se a-G-1.
Col. Baxter moved that the report of the
President be taken from the table.
| Judge Barton moved that the stockhoId-
ers proceed to the election of Directors.
Mr.. Ingersoll hoped that the report
would be discussed before going into the
election, or at least that some questions be
answered.
Col. Baxter stated that under the pro-
visions of the charter the election must
take place before o'clock. -r. Ega
Judge Barton suggested the eXpediency
of opening the polls at once, which would
allow the discussion to proceed, and if any
gentleman desired to change his vote he
would be permitted to do SO. .
/ Judge Barton renewed the motion to
| take the report of the President from the
table, and Col. Baxter moved its adoption.
adding that the present board invited full
discussion as to the report and he hoped
the gentlemen would talk freely.
Major Webb opened the discussion. He
appeared as a stakeholder and not as the
| feed counsel of Gen. Malone, whom he
didn't even know. AS regarded the pur-
chase of the railroads mentioned in the
| Presidents report, the act was illegal and
| good title could not be made to the road
| in North Carolina, which tapped the con-
| tinuation of Tom Scott's line at Salisbury.
| Even if this was not the case, the stock
| holders were asked to ratify q suicidal act
| in the purchase of that line, which was in
competition to their own and cut off travel
and freight from MorristOwn to Bristol,
rendering SO miles valueless, by diverting
traffic from its natural channel.
The railroads had been purchased by
bonds issued..to retire the State debt. The
| s., zoe, 900 issued to liquidate the State debt
was all right, but the remainder of the
So, 900, 900 issued had been used to buy
roads which they had no right to buy, and
even if the stockholders ratified the
purchase, it would not be binding.
NJ. & G. railroad stock was valued at
40c or 45c, but as soon as the Southern Sc
curity company leased it, the stock went
down to 29c. Capt. Jaques, it was assert
ed, run that and our line, and if this was
true, in little while our stock would fall
in a like manner. 1t was a matter of
dollars and cents with him. '+ e@
Col. Baxter explained that the reverse
was true of the M. and G.. Road. The
stock was worth 90 cents on the dollar, but
on a guarantee from the Security Com
pany of dividends, it had appreciated great
ly. A like appreciation bad occurred with
our own stock, which was now worth go
cents.
Mr. Webb said he thought he understood
the matter and his views were different
from those of the counsel for theeDireetors.
He dwelt at length on the power conveyed
to another line leasing this road, and
showed how it could discriminate against
it in through freights.
Col. Thornburgh was of the opinion
that many of the wrongs complained of
were imaginary If there had been any
transfer of stock he was not aware of it.
He differed from Major Webb as to the
legal points advanced regarding a valid
title to other lines. He did not under
stand from the Presidents report that the
stockholders We're asked to ratify the pur
chase of single line of road. He made
an able defense of the management of Mr..
| Wilson, and charged that Gen. Malone
was arbitrary and wished to manage his
road to the disadvantage of his connec-
tions, which made it necessary for this
road to have competing lines to Norfolk,
and thus compel Malone to come to terms.
At this point Mr.. Wilson suggested that
by the proposed connection, Knoxville
freights could reach the sea board at Nor
folk by easier grades and in about the same
number of miles. The report did not claim
purchase of the North Carolina roads.
1t was simple loan to secure connections
so as to be beyond the control of General
Malone. The loan was amply secured and
the proposed transaction was an open, fair
and advantageous one.
Mr.. Ingersoll said that there was dis
crepancy between the views of the Direc-
tors counsel and the report of the Presi-
dent, extracts from which he read, and
asked what the report did mean if it was
not to be literally construed?
A POWERFUL SPEECH FROM PRESIDENT
WILSON.
President Wilson impaired the desired
infor nation, and showed that the North
Carolina road had cost forty times the
amount paid for it, which was bound in a
prior lien for only $40, 900. He said that
he was willing to impart fully any in
formation in his power to stockholders.
He challenged any man to show that, as
| President of this company he had to the
extent of a single farthing prejudiced the
interests of a single stockholder. He in
vited investigation into his official acts.
He thought if men would come into this
meeting divested of the prejudices and in
terests of their position as paid lawyers of
Malone, and as intelligent stockholders
investigate this report, he could satisfy
them that the contracts made to secure the
cooperation of the North Carolina roads
with this road were the most judicious
ever made for the company, save the late
retiring of the State debt which saved the
stockholders a million and a-half of dol
lars, and which, in his Judgment was a
capital business transaction. He was satis-
fed that the increased business brought by
the North Carolina roads would amount
to $500, 600 annually. In conclusion he
repeated his challenge to his critics, to
show that he had jeopardized anybody's
interests by his administration, or had
, failed to faithfully protect the interests of
his stockholders.
His speech was delivered ddispassionately,
earnestly, forcibly, respectfully to his crit
les but with crushing effect. He proved
s himself as graceful and fluent speaker
4 as he is able and discreet as business
man. p. ."
Mr.. Ingersoll then asked by what au-
thority the North Carolina Road had been
4 aided by the payment of the 100000 in
e gersoll and others would diyest themselves
Y OF the character of Mahone's attorneys and