Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-04-21

Otner ROADS Oh ike CHARACTER, JO-Nlt: lne
McMinville and Manchester, the Winches-
ter and Alabama, the Knoxville and Ken
lucky, and the Cincinnati, Cumberland
Gap and Charleston Railroads, which, on
an average, had received a much larger
amount of State aid for construction, and
then permitting a settlement of It's State in
debtedneSs without the costs of a lawsuit,
upon the same basis of proportional pay
ment as had been averaged TO the State from
tAe sales of such other four roads.
The property on line OF this road had
been encountered with its proportion of the
public debt incurred in constructing the
roads with which it was classed, and on the
principle of that impartiality essential to
good government the property benefited by
such other roads should have contributed
in the same manner to the construction of
this. For surely it is proper that the parent
State should deal alike with all its like sub
jects, as for the natural parent to provide
equally for offspring.
The irresistible right Of this proposition
won favor with the Legislature, and an
amendment, in the shape of a proviso to
this effect was enacted as part of the bill
which had been introduced for the sale of
the road under proceedings in Court. The
payments to the State under this proviso,
and in equation with other roads of its
class, would have been about $207. 900 in
bonds with coupons of January, 1871, and
subsequent, attached, but the Commission
ers on part of the State wholly refused to
permit any settlement under the act unless
the company should first deliver every State
bond on hand after the payment of the
company debts, for which they were hy-
pofhecated, and this refusal was accompa-
MED with expression of confidence on their
part, that il such hard terms were not &C
coded to, a settlement less favorable to the
company would be enforced by the Legisla-
ture on its re-assembling in special session.
Apart from all considerations of expedi-
ency, earnest conviction with the cOmpany's
representatives that such construction of
the act did not accord with its true purpose
and effect, prevented any settlement under
it. At called session of 1872, the Legisla-
ture passed an act permitting the stockhold-
ers of the company to purchase the States
entire interest in the road at $780, 600 in
State bonds, with coupons since January,
1871, attached, payable one-fourth down,
balance at one, two and three years. Salts
factory personal bond to be given for de-
ferred payments. This act was accepted
by the stockholders and the purchase Or
dered under its terms has been effected.
Two payments, amounting TO Sl50,000
in State bonds, have been made,
and the bond for deferred pay
ments executed, with John POrterield, j.
w. ParamOre, George Nancy, and Maria Z.
Crutcher, as securities. These payments
include the coupons of January, 1871, while
the express terms of the act provide only for
coupons since JANUARY, 1871, and it IS trus.-
ed that in a particular so plain the excess
of these payments will, without dispute, be
allowed as credits on payments yet 10 be
made. This will afford the company a
credit Of $1,000 in coupons, or about $3.50
in bonds of the character yet due, and at
the same time will be some q per cent.
above the average paid to the State in pur-
chase of the other mentioned roads of its
class.
The claims against Mabry and securities
occurred as follows: Mabry was indebted to
the company in a considerable amount not
satisfactorily secured, and, though possessed
Of a very extensive and valuable real estate,
was in failing condition on account Of large
Supreme Court judgments against himself
and certain securities, also having consid-
cradle property, and with view of making
safe this unsecured liability, these judgments
were purchased after thorough examination
by careful lawyer as to titles and sufficiency
of estate for their full payment, and they
are all submitted as ultimately good par
assets. The money with which they were
purchased had been realized from sales of
State bonds. These sales were made after
passage of the act of December 10, 1871,
authorizing settlement and directing sales
of bonds, and also after act reducing rate
of State taxation, and were in no small de-
gree prompted by anticipation of formida-
| bic efforts TO induce the Legislature to re-
tract the terms of purchase it had enacted,
and a most thorough experience of the great
difficulty Of getting favorable terms of set
Element while possession of the specific
bonds had to be confessed whenever this
| particular was inquired into.
While. gentlemen, the managers of the
company's affairs regret whatever may have
been done or left undOne TO the disadvan-
tage of the trusts confided TO them, they can
| vet look to the logic of results with some
| degree of satisfaction. As a fact, this is
the only road of its class sold by the State
without the stockholders or purchasers be-
ing compelled to supply the means for all
payments. In this instance, two payments
have been made, and the requisite bond ex-
ecuted for those yet to be made, without
even annoyance TO the purchasers I; nor can
the State make n just complaint since it
has been paid a large per cent. more than
was on an average realized from sales of
the others of its class. Very respectfully,
GEO. Nancy, Prest and Sup't.
George Nancy, President, in account Tennes-
see and Pacific neutrality-suspicious.
April 1, 1874:
DR..
Proceeds of s26 bonds sold by Peoples
proceeds Of Isl bond: sold as7c .-.. 49, 9o o.
Proceeds of 10000 Blount county
Proceeds Of 400 Biount county bonds
Proceeds Of Bioant county coupons. ass 90
Proceeds OF note at First National
Proceeds OF mortgage bonds and cash
from K. w. Miller, Treasurer...... 1920 20
s75S,6as 20
CIR.
a /, 'sI93, rs AZ
of aymen 4s, rs A.
and July, Observation-Disclosures. sos 90
Interest paid on loans of October,
Am'nt paid for Mabry;s note. Tor S.
bonds observation-disclosures: 1854 &c
Amount paid Judgment VS.. Mabry and
securities. $500 OF
Amt paid X. W. Miller, Treasurer. 2,G45 s.
Amount paid for right of way........ Cos 81
Amt paid Hasell & Co, bal. on iron
90 o.
Amt paid G. II. Irwin, expenses on
no -
Amt paid Roberts & Puryis......- 80 g
fees, sF7.IG...........-.-.....- 6a 10
Jan. /, ISL, to April /, Is74..e...e.. 9,O25 90
Amt coupons on hand, S32Y90j, less
S4,l4O on hand Jan. /, ISL, and
S13 800 cut of bonds paid State,
leaving a bal. of SIS, 265a6Ic......... 1927 IS
4 past due bonds at Ic............. 2,440 90
45 bonds 70 pay State debt, at 72c.. 32,+0O 90
20 bonds 90 pay State debt, at 73e.. 5i,75 O0
DenOsit lost I'm Peoples' Bank ia "a