Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-04-30

spockholder and creditor OF this com
r pahy, having separated from the Secu-
MY company. He thought General
rather had presented the character OF
the matter In very strong light for
the Memphis and Charleston railroad.
he thought the acceptance of the lease
would be beneficial to the Memphis and
charleston railroad. The Southern Sc
curity company had for its object the
consolidation of railroad lines from east
TO west. 1t was headed by men of in
nuence and capital. He thought the OBJ
Jeets laudable, and the capital of the
company was increased from three mil
lion dollars to six million dollars.
Ihey leased many roads and
bought stock of southern roads at
very high rates. They attempted
to build an airline road in North Caro-
Ina, from Charlotte, the home of the
chairman. They were on the eve of
bankruptcy and nothing saved them
save the sale of those interests to the
FensylvaHia Central railroad. Thev
sold their lease in the East Tennessee
ana Virginia railroad, and also their in
terest in the Wilmington and Weldon
railroad. The speaker gave several in
stances Of the injudicious manner in
which money had been expended by the
Southern Security company. He was
not an apologist for the Southern Securi-
! ty company, nor would he be one to
kick thing when it was down. The
/ company went to work in good faith
and had been reduced to its present con-
dltlon because OF iDjudicious invest
ments in southern stocks and bonds. 1t
had returned to the Memphis and
Charleston road every dollar it had
made. An execution against the COM
pany would not get anything.
| The question is whether as
the holder of an income-bond, should
he look TO the Southern Security COM
pany, or to the road itself? After ma
ture deliberatiOn he favored the accent
ance OF the release. True, it left the
road impoverished on their hands, still
in no worse condition than at the time
Of lease, but perhaps two hundred thou
sand dollars better. They should take
the road, ecOnOmise expenses, and en-
large its business, until the country
built up and was developed. Unless the |
country bultup, he confessed he had no |
hopes for the Memphis and Charleston
railroad. He advanced money to Tom |
ScOtt's enterprise of extending the line |
over the Little Rock railroad west. He |
deemed the plan a good one, and Mr.. |
Scott thought ne could carry his finan-
cial plans here with that facil- /
ity that enabled him to accomplish /
his purposes in the north. 1t was ex-
pected to extend the road to Texas, and |
the Memphis and Charleston road had
been leased with good faith for that
purpose. If the Arkansas road could be
extended to Texas this road might be
made great route. The Fulton and
Cairo road was doing good business,
and initiated against this proposed
through line. Mr. Mathews, of New
York, told him that he could get COM
pany to extend the Little Rock road to
Duvall's Bluff and TO Shreveport. The
only hope for the company was to hold
the road until a through line to Texas
could be established.
A COMMITTEE WANTED.
Ex-Governor Patton thought the con-
tract might be referred to a committee
of gentlemen who are not interested in
the road, or the security company. The
convention should consider what was
best to be done. 1t was a question in
volviug millions of dollars 1t would
be legitimate in a deliberative body that
a committee should be appointed to ex-
anime the contract minutely and report
upon it. The whole country was in
vOlved in this railroad. The contract
had been made now; what was best to
be done? He wanted to do what was
best for the interest of the stockholders
and the country through which the road
passes. =
not A HASTY ACTION.
Colonel HASTE, of Charleston, South
Carolina, said the condition of the road
was like a laundering ship, and if the
largo cOu not be saved the lives of
people might be rescued. The Security
was insolvent and it was inn :
,0litic to leave the property in the hands
# irresponsible parties. There was no
eason in retaining the lien as the Secu-
ity company was not responsible. He
hought the question admitted of no de- ,
ay or dought, to decide it now would ]
lot be hasty.
Colonel Estis agreed with Governor {
oatten, and thought it wise to appoint ]
/ cOmmitte, while the lease would be [
'ancelled, still it was wise to deliberate
lpOn the measure. He referred to the ,
nasty action Of the stockholders in max !
ng the lease. He moved to appoint ;
committee Of FIVE to reconsider the
Whole matter and report to this meet
ng either at night or next morning. [
Colonel Hastie said he would with !.
lraw all opposition.
Colonel Estes said the motion contem-
dated an examination of the true con- c
lition of the Southern Security COM C
ANY. d
Mr.. Wilson, of New York, said a e
onger time would be required for an in
elligent solution of the question by the Z
committee. If an intelligent opinion I
vas required longer time was necessary. h
lie asked that Colonel Estes or Gov d
rnOr Patton explain how the committee n
Ould solve the question in so short a
ime. !.
Mr. James T. Sands, of st. Louis, said ! :
e had investigated the subject for seve- .
al days, and was opposed to the appoint y
lent of a committee. :
Colonel Humes, of Huntsville, Ala Il
anna, moved that a surrender OF the
Ease, as submitted by the resolutions of .
1e directors, be accepted. A failure to II
o so would be an act of disrespect to o
le directors. p
Colonel Estes's motion has d
recedence. fc
Colonel Humes said he did not know p
lat gentleman had made a motion.
Mr.. Wilson, of New York, said an ap- q
ointment of a committee would not be d
disrespect to the directors. He tC
fought the meeting had a right to ST
ave an intelligent opinion upon b.
lis subject. He thought the road at "
asst one million dollars better off than b.
hen it was leased. The Security COM y
any had not been unfaithful, Though tN
as many men in business
al been. Misfortune, shrinkage, and
ss, had overtaken everything in
le south-States, cities, and rail-
ads. Had it not been for the .
ase he did not think the Memphis and II
harleston railroad would now be in ex- N
tence. He did not own any stock in
ie eSouthern Security railroad company. ga 19
e was, perhaps, the largest bOndholder eo
the Memphis and Charleston railroad. ee
e doubted if twenty Thousand dollars
,uld be made out of the Security COM r.
my. For eight years, ending June 80, b,
73, the debt had accumulated two v
iIlion dollars. Was it not true two ~
ears ago that this company would run NJ ~
lief to any company which promised b
pay three per cent. on the interest. n
e did not think the meeting as a COM nj
ittee of the whole could gain any ad-
tional information than that reported al
? the directors. 60
Governor Patton said when he made Se
e motion he did not think there would
apy opposition to it. The committee m
q not want to go to New York, but IN IN
uld report by eight or nine O'Clock the pi
~ following. The propriety of making F.
e contract was discussed two days, j.,
Id as it involved millions of dollars 1t Ci
Iould require some time to cancel the n
aca N