Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-01-17
SALE 0FTHE MEMPHIS & CHARLEs
TRN ROAD TO-DAY.

A correspondent, whose note was
received last night, and who is a large
stoekholder in the Memphis and
Charleston road, asks US to state what
we think about the proposed trade.
This would have been done at an ear.
Iier period, but mOdesty forbade the
voluntary obtrusion Of opinions In
reference 70 q question which the
elearest heads Of the South will con-
slider to-dsy with the proposed con-
tract. which we have not seen, spread
before them.
II the soIvency Ct Tom Scott and
associates be questioned, let us mod
estly suggest that eastern capitalists
have weighed his worth, studied his
resources, and are cognizant Of the
plans of the Southern Security rail-
way company. Wall street believes
that at this hour the Memphis and
Charleston road belongs practically to
Tom Scott. Therefore the stock Of
the Memphis and Charleston road,
which has been sold at twenty-nine
cents. and for months was quoted at
from thirty-two to thirty-four cents,
was sold yesterday IN Wall
street at fOrty-three and forty-iour
cents. Our local brokers have
had good margin In this
stock for some weeks past, New
York having more faith In Tom
Scott than our own people, there has
Dseu a wide difference between the
Afsmohis and New York prices. In
fsct. the objections to the sale to Tom
Scott are said to originate with our
local spectators. 1t has been their
policy to subject scott's ring to suspi-
cions. and thus making the sale Of the
mad doubtful, Memphis prices OF the
stock were kept far below the New
York value. 1t was a shrewd dodge
of the SPECTATORS, Tne joke has gone
lar enough. Stockholders should un-
derstsud the facts snd lesrn-those OF
them not familiar with the plans OF
Mr.. Scott, and OF these spectators in
stocks and railEsys-that this sale Is
s foregone conclusion, an absolute ne
cessity.
Suppose the shareholders at the
meeting to-day fail to rstify the pro-
toeoI executed between Messrs. Wicks
and scottP The stock viii fall instant
IL far below its value Of four months
$50. During these months, and while
these negotiations were pending,
every contract and expenditure Of the
company hss been made on the sup
position that the sale would be per-
fecbed to-day. Change the programme,
and protests and nOn-psyments OF
Interest, coupons and Of debts Of all
sorts to the State and to individuals
must follow. But there Is an over
wheIming necessity for the execution
Of the contract contemplated involved
A tbs fact that this same Tom Scott
security company owns the roads
crossing Virginia and the Carolinas,
and designed to have their great ter
minus at Savannah. Georgia railroad
owners viii suffer Tom Scott TO come
no further than the Savannah river. 1t
was his design to run lines Of steamers
from Savannah to Liverpool and New
York, and the Allan line Of steamers
has alresdy been sold to be employed
In this Savannah and Liverpool trade.
Suppose Tom Scott begins at Vicks-
burg, and such negotiations are known
10 be pending, and buy the roads from
Vicksburg to Selma, and from Nicks-
burg to Chattanooga. He viii then
have the Georgis roads between the
upDer and neither millstone-between
his lines coming down from Virginia
20 Georgia on the east and from the
Mississippi river to Georgia on the
west Of that State. How long before
he would force his way across 1t?
Some road would sell out or ScOtt's
ring would build e road. In fact, the
Georgis roads would be IS helpless
As the Memphis and Charleston
becomes, II this proposed trade be
not eonsummsted to-day. StantOn's
Chattanooga and Meridian road must
soon fall into the hands Of railway
monopolIsts, and even then the Mem-
phis and Charleston, unless part and
parcel OF scott's system, becomes val
ueless Ss q through route. In fact,
Tor months past, propositions have
been constantly made by the creditors
OF Stanton and by the State Of Alabama
involving the transfer tOthis Southern
Security company Of the Chattanooga
and Meridian (Stanton's) road. II
Scott be forced to accept in order TO
give supreme value TO his East Ten
nessee lines and in order to find q
southern route TO the Pacific and
20 the wealth Of Texas, the
value Of the Memphis and Charles
ton stock VIII be reduced to ab.
sOlute nihility. A sane stockhOlder
need only con over the pages OF the
last annual report Of the Memphis
aud Charleston company to learn how
impossible It Is FOX this road ever to
pay profits and pay interest on Its vast
debt when shorn by the Memphis and
Louisville, and Memphis, Paducah
and Louisville roads OF all chances Of
controlling traffic and travel from the
west, and cut of by StsntoLss road, In
ssott's hands, from all resources In
she south and 40 Texas. Memphis
and Charleston stockholders have no
option. They gain by the trade rea-
souzbIs certainty, depeHdent only on
the Wisdom and solyency Of the South
ern Security company, Of reasonable
dividends on stock, which certainly
has bsen Watered once. II the pend
ing trade fall, the failure Of the road
and Of its commercial value is an a5-
soIute certainty. Il will not make
enough 70 maintain its equipment,
and such is now, In this degenerate
age, the demand for costly cars, that
no old fashioned economizsr can con-
duct q railways fortunes successfully.
The road might be managed at half its
annual Ouilsys; but nine-tenths Of
those who now travel on it would be
driven to competing lines, with all
their attractive appliances Of modern
taste and comfort. To-day the Men,
Dhis and Charleston road is sustained,
runnino "a Il does nowhere except