Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-04-30
THE CHARLESTON RAILROAD
Convention OF Stockholders to Consider
the Question Of Releasing the
Southern Security
Company.

Statement by General Rather-COn,
tiOn of the Road Now Compared
with What it Was when
Leased.
Statement by Mr.. r. j. Wilson, Of No
York, as to How the Security
Company Failed The
Fulure-Etc.
The stockholders of the Memphis an
Charleston railroad company met
Assembly hall, in this city, yesterda
) morning, for the purpose of Tatifyin
the action of the board of directors
accepting the surrender Of the lease
said road by the Southern Security con
pany. The meeting was called to orde
by General J. d. Rather, president c
the company, of Tuscumbia, Alabams
who moved that Colonel William John
son, Of Charlotte, North Carolina, b
appointed chairman of the convention
The chair appointed George Robertson
and Carrlngton Mason secretaries.
After the chairman had stated th
object of the meeting, which, as abov
stated, was to ratify the directors ac
-ceptance of the surrender of the lease @
the road by the Southern Security com
pany, Messrs. John Robertson, of Her
nandO, Mississippi, and Charles P
Cabaness, of Huntsville, Alabama
were appointed a committee on proxie
and personal stock.
On motion the meeting adjourned t.
two o'clock, in order to hear the repor
of the committee
AFTERNOON SESSION.
Upon reassembling the committe,
made the following report:
MEMPHIS, Tenn, April %, 1874.
The undersigned committee appointed
to examine the proxies. and register tn,
/ personal stock represented in the pres
/ ent meeting of stockholders. do hereby
report that the stock representedamount.
to $50, III; represented by proxy, SD.
/ 545, making total of Sl33, 7I6.
Respectfully submitted,
JNO. ROBERT=ON
CHAS. p. CABANESS,
Committee.
CONDITION OF AFFAIRS.
General Rather said as early as Feb
ru8Ty last this company was notified by
the Security company to appoint Joint
committee to adjudicate affairs. The
company appointed the president and
Messrs. Brinkley and Garth, who pro-
ceeded TO Philadelphia, and were told
by the Security company that they
wanted to surrender the lease-were in a
state of disintegratiOn, aud anxious to
surrender this lease. The Southern Sc
curity company was willing to surrender
to the Memphis and Charleston railroad
three thousand one hundred and fifty
acres of land on the line of the road, q
claim of twenty-six thousand dollars
against the Ripley railroad, and also
their claim for damages in the company
falling to issue consolidated mortgage
bonds. The directory was notified to issue
bonds last May. The committee was ap-
pointed to visit New York to execute
the mortgage and issue the consolidated
bonds. The committee, after reading
the mortgage, were of opinion that its
requirements exceeded the terms of the
contract. One condition asked was that
the Memphis and Charleston railroad
company should keep the bonds free
from the United States government tax
now existing or thereafter to be i'm
posed. Another condition was that a
failure to pay within thirty days should
work forfeiture of the whole indebted
ness. The committee thought that to
incorporate these conditions in the
bonds would be to exceed their authority,
The Security company agreed TO extend
. he q fA1l
that the committee would refer the mat
ter to the stockholders who were called
to meet in this city last June, but failed
to do so because of the prevalence of
the cholera. The matter therefore was
adjourned over to the regular annual
meeting which assembled last August
in Huntsville, Alabama. The stock
holders at that meeting instructed the
committee appointed heretofore to act
in the matter. The committee then
went to New York to have incorporated,
as required in the face of the bonds, an
agreement to keep the bonds free from !
tax, that the Memphis and Charleston
road should be Unidentified, and that
the whole debt should become due i'm
default of payment for six months.
When the committee reached New
York to comply with the contract and
execute its instructions relative to the
mortgage and issuance of the consoli-
dated bonds, the Security company was
not ready, as the bonds could not be
printed until for some time. The COM
mittee agreed on the bonds, in the sums
Of four hundred thousand dollars for the
purchase of the Winchester and
Alabama railroad, twelve thousand
dollars as expenses Of printing the
bonds, attorney fees, etc, and two
hundred thousand dollars for the sink |
ng fund paid to the State. The commit /
zee asked that in future, instead of the /
essees paying the sinking fund account /
o the State, they should make the pay
Dents direct to the Memphis and Charles
on company, as it was stipulated in the
erms of the contract that they should
make the payment to their financial
gent when demanded to do so. Previous
D that time the sinking fund account
ad been coupons. The Southern Secu-
ty company claimed damages from the
iemphis and Charleston railroad COM
any because they had failed to issue the
onds at the time required by the con-
act. This delay a issuing the bonds
ad rendered it impossible to negotiate
ne same; hence the damages. However
ley did not wish any litigation, and de-
red TO Obviate this by agreeing
} execute mutual releases of
ne lease and claims for damages.
he following paper, which he would
sad, had been finally signed, and the
irectors wished it to be read before the
While the paper did not
ecure what was due, still the only uues-
on to be solved was whether the stock
olders would take back their property
r let it remain longer in the hands of
De Southern Railway Security company,
'hich was now insolvent, although
ley once had seven million dollars,
-hich they claim had been dissipated,
nd owed no debt except that to the
Iemphis and Charleston road, which
ley claimed was not due, as ii would
e set off by their claims for damages
lstained in the failure to issue the con-
)lidated bonds.
TERMS OF THE RELEASE.
General Rather then read the follow
lg document, which explains itself:
Towing TO objections of the commit
ee the contract of rescision is not pub
shed to-day.l
COMPARATIVE CONDITION OF THE
ROAD.
Colonel Estes wanted to know the
condition of the road, and
vhen it was leased.
General Rather said, on the whole the
pad was not in as good condition now
5 when leased. The rolling-stcck is
bout as good now as then; several new