Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-10-19
THE RALEIGH RAILROAD.
Card from John Donovan, President
statement of the Present EOndi-
ton aud the Prospects OF the
Enterprise.
The Report of tbe Committee of the
County Court RevieWed-FRcts and
FIgures-ScmethInE Must
he Done-EtC-

EDITORS APPEAL-Much has been
said lately, through the press, a. 70 an lnNes-
LEGATION INTO the affairs OF the haIelgh rail-
road. As little II known about the report, eX-
cept some few extracts IN the AUdtdnehe; as
I am one most interested, Snd with the We"
OF setting myself right, will BREEZY lay pc
fore you a r. " facts ana figures taken from the
Extract: "Mr. Donovan came into control
OF the road in 1873 Bonds indoeed by the
county were issued in July, lS2.' 80 was
not party 10 the issuance OF the bonds.
Extract ION taking the P Tsiee eTs;su1 ar
sls.3Sl and according to his showing, the
bonds realized for the road, 81 .sS3. MI Don
Oyan shows his books and vouchers Wnlcn
exhibit as paid out by him. So 6s3. AS 10 Mr..
DOuoyan's connection with the road, we nho
less 10 complain OF than We expected when
We entered upon this Investigation, ana nhd
nothing in him TO complain of; and IL ap-
pears 10 us that II Others had shown the conn,
dence and energy he has display Ell, tne roa9
would long since have been com pleted and
regularly paying the interest on the bonds.
Extract: "MT. 4. NJ. Apperson desired TO
make a statement, which be desired trans
mitted to the court. He thought the county |
had caused this difficulty TO the ROAD by moot
lug the question OF repudIatlng me oondsi
that IL ought to have kept faith, rather than
aggrayate the npeTfections in the BONDS, II |
any existed; ana that he believes that II the |
county had gone and paid the oonss sno cou- |
be meeting her liabilities; that ne tAppersOn) |
called upon the chairman, Esquire blecklS; |
I'm Piled yiTn, and that the bonds were as |
good as the county" AS rumors have oeen |
Raleigh hotel, all OF which has nearly been |
furnished by me, / will give an extract from |
the committees report bearing thereon: |
Extract-Much has been said In this con- |
motion to establish the idea that the Raleigh |
hotel company was built out OF the railroad
funds. We took testimony on this point and |
are clearly Of the opinion mat thefe was no
connection between them
have borne and listened to theie false ru- !
mors for years / have asked for this invest- |
gazing committee, feeling that state
ment from such source would nave
more efrect1 than denial Oh mine
This unfortunate "a lroad and hote~ has been
tTaduced from its inception. Mark the wor7s
OF the committee: ave ind less to complain
of than we expected" Even the committee
alton on the part OF some persons 70 destroy
and cry rwn the very ponds that they them,
rumor 1 regret 10 say that they apply 10
some members of the county court. Now,
sir, will let the foregoing extracts De my
m6tter. l will now, sir, give you the eondi-
ton of the road end the cause of Its embar-
easements. The road is ironed and equipped
from the National cemetery to Raleigh, and
has been running for over Two years; ana IL
is traded bridged and was tied out rear
the National cemetery to Auction street,
Memphis. The moneys expended by me as
shown from the commissioners report g
S37 .6g3 and expended by my predecessors,
S2Oi 90: total expenditures, S57 ,69S. After eI
hausting the first money deposited by
Mr. White for equipment, ] was at the
bypothecate, or raise money on the bonds at
home. l then visited New York, and re-
NAMED there some weeks attemptin to nego-
tiate a sale of Inds. utterly failtd About
This time received news OF the yellow feVerI
and almost stimuli taneOusly the Jay Cook sus-
peuslod. L thought then, good bye to all rail-
road securities. 1t is well known we nave not
recovered from the terrible effects OF these
disasters, but still hoped and kept the little
road alive, feeling that b tier days were COM
ing. On the twelfth day OF July 1873, the
bonds, by resolution of the directory, In view
of my large advances, passed into my hands,
having loaned about seventy hve cents on
the dollar on them, figure which | was in.
structed to sell at. / did not intend to apply
these bonds TO my individual use Gas is we'll
known to the directory but when could ap-
preciate them to their proper value, the pro
ceeds were to be applied to ironing Inc road
AS an evidence OF this fact visited Chicago
in April, 1874, and had partially closed a con-
tract with The Angle iron company 10 iron the
road Tor $1,000. The proposition and CORE
spoudence were before the committee. Ali
but about this time the last feather
back. Just on my arrival home from
Chicago, l was served with writ
commonly known IN these parts as an lnJuncs
ton, sued out by the county ofhoialii enJoln'
ing the officers of the railroad from In any
manner using these bonds, which were in
doIsed by the county who pledged their credit
by their sign and seal that they would pay
these bonds and coupons at maturity. AL
though having something TO do with injunc-
fully surprised at this proceeding. Now mark:
in July. is72, the bonds were issued; the In
junction was sued out in May, 1874, or nearly
two years after. / instantly realized. the ter
rible eject and disaster that woult follow.
Let US see it's effects: had borrowed money
from parties in this city on the bonds, Tor
which notes were given; these notes matured
about the time and shortly after the lnjunc-
ton was issued. To illustrate its effect upon
the values: E. NJ. AppeTson's note matured
the very day; he ordered the bonds sold that
day, which was done az twenty cents on the
bouds as collateral at nifty cents on the dol
lar. 60 on with the other holders, who sold at
about one-fOurth their value. My Policy in
hypothecating the bonds was with the
view OF approaching Them, hoping
value; but alas! 1.-The best laid schemes o.
mice and men gang aft aglee." 1t In not my
desire TO assaii or impugu the motives of
others, but will ask, in all caDdor, what were
the county OF Shelby by this unfortur ate pro-
ceeaing? Why, sir, no officer of the railroad
was applied 10 for statement OF is affairs
prior to the suit, II was notorious that Mr..
White, secretary, and myself could he found
any day, when we would cheerfully have
rendered or exhibited our BOOKS, az was done
before the COMMITTEES. We regret this course
was not pursued, feeling that II the facts were
known to the county officers, this suit would
never have been instituted. Would to God
such had been the case it would have saved
the road from disaster and ruin; saved the
county from litigation, and your hum bic ser
want, who had embarked nearly his all in the
ENTERPRISE, from the financial embRrr 9ssmenE
it has placed him in. Look at the condition
II has placed me in:
advanced the 6,O
Spe Mt on the hotel 10000
Estimate, interest, etc.,...............-.. 1900
salary for two 5000
$500
Receipts from ssS
Balance due ]. 6o1
TdesIre to say l subsequently dissolved the
| Injunction, but too late; the poisoned shalt
LET county
| the bondhOlders, In both State and Fec ral
courts, and Judgment is rendered against her.
| There is no escape from liability on these Sc
| curities Now see the condition she has
placed hel self in. She does not want the rail-
road she has to psy the bonds, and PROBABLY
| all damages resulting from her act. 80 much
| for the county. Now for me; look at that
| side and look at this Hele is one of your cit
| lZens, at the request OF the old organ! EATON,
| reluctantly assuming the mana cement of this
road. Why did he do so? He thought II
would be an enterprise that would bt nent the
| city, the county, and would be some credit TO
| himself. He looked into the assets, and found
! among the principal the fifty thousand dol
| lar Endorsed bonds by Shelby county, with
| her solemn pledge, her broad seal-the sigma
| ture of her chairman. Who would question
their validity? l certainly did not But l
| reasoned: these nearly worth par, with lands
| and other subscriptions, this road could pc
put through; but the lands and other
/ subscriptions were conditioned on
the completion Of the road. Basing his cal
| cuIation on these ideas, he PUSHES in with his
| capital, and after two years had elapsed, and
| this road was in operation, The great county
| OF shelby steps in with an injunction and de-
| stroys all at one fell blow. Do you consider
| this fair deBllng-tO get poor DEVILS money
| and then crush him? Now, sirS, how would
this course and conduct, and tn mode of
doing business staTd tue test Of commercial
| usage? IL is my greatest am bition ano desire
! 10 complete this enterprise and [ shall con
| tinue to do everything in my power toward
| that end. have Fought redress through the
| courts. l assure you f. is my intention to
! prosecute the m to the utmost, until fun and
| ample repRration is obtained both for myself
| and the unfortunate railroad. Very respect
fully, JOHN DoNDNAN,
| President NJ. and r. R. F.. Co.
LARGE LOT OF SLIGHTLY
DAMAGED CASHMERE PANTS
AT FIFTY CENTS ON THE DOLLAR,
Together with largest stock OF
CLOTHING AND FURNISHING GOODS
Ever offered at Retail in Memphis.
ONE PRICE, AND NO DEVIATION.
GRUBBs & AUSTIN, $50 Main street.
T,ErRRTEjS clOaks Iezs than pOSt