Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1872-12-25
Letter FROM MEMPHIS.
Trouble I'm Financial CIrcIes-A Railroad
Company VcrgIng Upon Bankruptcy
Suspicious transactions.
MEMPHIS, DOC. l6th, Us

Company VcrgIng Upon Bankruptcy |
Suspicious transactions.
MEMPHIS Dec. 10th, 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 lie sets forth the
financial condition of the road in q way
not at all pleasant to those interested. 1t
appears from this exhibit that the liabili-
ties of the road exceed its assets by about
$4,000 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 demand
comes like n clap of thunder in clear
sky, would be putting it very mildly. But
a short time ago, dividends were being de-
clared, and it seems very stranse that the
road should become 80 seriously involved
in so short a 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 1t 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
managed as to account for the present
state of affairs? These are questions that
come up very naturally and people aOiN
tall.
Three of the Directors of the road, re-
siding in North Alabama, add significant
note to the bottom of the circular letter,
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-
h. g =, De-, 4 -
land very justly we have no doubt, for he
seems to be q gentleman of the very high
est integrity and say he will honestly APP
ply the funds. Why, such q 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 argent private business? All,
thereby hangs a tale. 1t looks very much
as if there was a large sized cat in the meal
tub.
Whether, in view of past transactions,
these stockholders will respond to the call
made upon them, remains TO be seen.
Thousands of dollars of the stock is owned,
especially 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
mismanagement,t 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
iidence placed in them, and have beer
playing high game on other peoples
capital.
Col. John Baxter, of Knoxville, arrived
in the city to-day and is being consulted
in connection with debt due from thu
late Memphis Savings Bank to some of it
creditors. Things do not look very
it's affairs. 1t will be remembered tina
Mai Moses j. Wicks, President of tn
bank, announced Immediately upon it
failure, with something of a flourish o
trumpets, that he stood ready to discharg
its obligations out of his private funds. l
has leaked out, and present indication
point to an early development of the fac
that the assets of the bank, as well as hi
private estate, are not much security T.
creditors. The assets turn out to be of lit
tie value. / hear of several thousand dol
lars of National Bank stock reporte,
among the assets that appears to be owne'
in Baltimore. Among other assets is $50,
900 Alabama and Chattanooga Railroa
second mortgage bonds. And then ther
is $4,000 notes of the Bank of Chatta
nooga. Notes on private individuals hav
been spoken of, which either do not eXis
whole, the thing wears an ugly look, an
bill in Chancery might unearth som
.hings that would add nothing to tn
reputation for honesty, of those concerned
AS it is proposed to hold the Directors c
the bank responsible for its obligations
further proceedings may be of interest
such men as w. b. Greenlaw, Sam. Tat
and others. With such transactions i
the background, as seem now to hav
taken place in connection with the failur
OF this bank, no one will be surprised tina
the principal actors look with some concer
upon the presence of such man as Co
Baxter, who with other eminent couns,
is to overhaul their transactions. He ha
penchant for unraveling such thing
and unless a compromise is effected, til
public may look fer developments that wi
place some of our Tennessee financiel
alongside of Jay Gould, only on smallt
scale. w. r.