Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-02-16
CUMBERLAND AND OHIO RAIL
ROAD.
The Details of the Lease 10 Northern
CaDi6alfsts.

C8DtHah1Sts.
The Gallatin Examiner of yesterday pub
fishes letter from Col. ]. j. Turner, Di-
rector in The Cumberland and Ohio Rail-
road from Sumn.r county, giving full
statement of the arrangement entered into
by the construction party, Shich contract is
subject to the approval OF stockholders.
The letter is as follows:
As number of articles have appeared in
the Louisville and Nashville papers as to a
contract agreed upon at Louisville last
week between the President and Directors
of the Cumberland and Ohio railroad, of
the one part, and Massrs. Fitz gerald and
Malleyy of the second part, who represent
a railroad construction company from thu
State of Iowa; and as these articles are a
mere surmise at slid contract, the original
of which have in my possession, and a
number of errors have crept into these ar
ticles, l will give an exact outline Of this
contract.
A stockholders meeting has been called
to ratify or reject the contract, and l am
desirous, as the Director from Sumner
county, to know the sentiments of the JUS
tees and tax payers upon this subject. The
contract is substantially as follows:
/. The right of way is to be furnished
for the entire road, to the construction C m
pauy free of cost.
2. Three Trustees to be appointed by the
Cumberland and Ohio road to hold the
bonds, but the same not to be paid out eX-
cept upon the completion of sections and
the certificate of Chief Engineer of rail
road.
3. The construction company are to build
the road from the short line railroad to Gel
latin aud the extensions to Nashville and 10
Louisville, Madisoa and Cincinnati; when
the men are furnished for the local work,
the extensions to be paid for at the same
rates as of the main line.
A. The construction company are TO re-
ceive, rer mile, for the graduation, mason
~, bridge superstructure, cross ties, IRON
ing complete, ballast, telegraph lines, full
equipment of rolling stock for the entire
road, station and engine houses, and repair
shops and tools, and everything complete
for q first class road, $4,000 per mile; the
same TO be paid as follows; $4,000, at par,
in county bonds, per mile; $4,000 at par
per mile, in first mortgage bonds; $4,000
per mile of stock in the COMPANY; and the
the capital stock never TO exceed $50, 600
per mile, and the mortgage debt never to
exceed $25, 900 per mile.
5. The construction company lease the
road for % years, and are to pay tue entire
expenses of the railroad, including running
| expenses, interest on mortgage bonds, and
expenses of the railroad company, and re-
turn it in good condition in all things, in
Guiding rolling stock.
They also guarantee to the stockholders,
after Jan. l, 1881, two per cent for the frs.
year, and add ore per cent each year, till
the same reaches six per ce-t, which they
guarantee for the twenty-five year,, and
also any profits made in excess Of this, after
the expenses are paid for running NOR gage
debt and six per cent on the stock OF con-
struction company is 10 be divided and tae
counties to get their pro rata share Of The
same.
These payments are to be satisfactorily
secured, and the stock Of the counties,
towns, and districts is preferred or guar
anteed stock, and much more valuable for
many reasons than is the stock Of the con-
struction company.
6. The Q. & 0. r. Z. Co., have the
right to appoint two Directors il the Con-
struc,ion Company, but the Construction
Company not 70 have any Directors in
Railroad Board till the road is completed,
when they viii be entitled to represent their
stock.
This embraces brief outline Of the COZ
tract, the details bel G left out. The Con-
struct;on Company are to put 100000 III
the enterprise at once, as n earnest of their
good faith and ability to carry out the con-
tract. The Construction Company is com
posed of eight members, all Of whom are
men of ability and large experience as en-
gineers, contractors and bankers, and are
fully able to carry out their contract.
Individually, am Of the opinion that 1t
is such contract as should BIZ approved by
the counties, IS it secures us, Ia tI5e1lty
months, first-class road, fully equipped
aud prepared for local and through bust
ress.
The stock of the counties by this contract
is secured beyond all question IS that was
the leading idea of The President and Di-
rectors, and is carefully guarded and Sc
cured in the contract. 1t is the intention
Of the Railroad add Construction Company
both to finish the railroad to Nashville,
Louisville, and Madison, Indiana, at as
early day as possible. With the arrange
ments now made, and others in progress
of negotiation, am sure that all three OF
these connections can be completed in tloO
years from this time, but l ain not at liter
ty to make public these matters Just now
as to those extensions; bus the sui ct is
being pressed by the company.
J. J. TURNER.