Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1876-01-08
IMPORTANT DECISION MADE BY
CHANCELLOR COOPER AT
NASHVILLE.
The Tax-Payers OF Montgomery Coun-
ty Deeply Interested.
The Friends Of the Schools in CIarks-
vile Relieved Of Great Anxiety.

1893 the county OF Montgomery sub
scribed for $25O,0OO, and the city of
GAINESVILLE for 500, 900, of stock in the
Memphis, GAINESVILLE & Louisville
Railroad Company. The bonds of
these corporations were issued and re-
ceived in payment for this stock, and
the interest on the bonds has been paid
promptly every year by taxes levied
upon property of the citizens.
The road at the close of the war was
in ruins ; its trolling stock had been
destroyed and the company was bank
rupt. In 1901 the State of Tennessee
brought an action in the Chancery
Court a6 Nashville to foreclose its
statutary mortgage upon the road, its
property. franchises and privileges,
and at that time but few of our citi-
zens believed that any of the stock
holders would ever receive any direct
profit from their investments in the
road and indeed, the prospects of the
stockholders presented gloomy out
look. The debt of the State secured
by first mortgage exceeded two and one
half millions of dollars; there was
secured mortgage to other creditors,
upon which there was due, of princi-
pal and interest, more than five hum
dred thousand dollars; there was due
to the United States government for
locomotives, cars, &C., bought in 1866.
about $400 ,00G, and to general creditors
at least 100000 more. Moreover,
from 1866 to 1901, the railroad had
been operated by receiver appointed
by the Governor, and during this time
the actual expenses had exceeded the
receipts more than $160, 900.
When the suit was brought by the
State to fofeclose its mortgage, the
directors of the company made repeat
ed efforts to get the general creditors
and stockholders to take an interest in
its affairs and adopt some line of policy
by which their rights would be pro-
tected, but to every appeal they re-
piled only by careless indifference, be-
cause they were convinced that the
affairs of the company were in hope
less condition. After all these efforts
had failed, three of our citizens, Gen.
w. A. Quarles, Hon. Jno. E. House
and Col. j. Il. Bailey, being convinced
that something could be saved from
the wreck of the company's affairs
were appointed by the county and city
agents to sell their stock. These gen.
tlemen spared no effort or time in the
task they assumed. We learn they
made several trips to New York and to
Louisville and other places in their
endeavor to sell the stock, and at last
sold it to the Louisville & Nashville
Railroad Company, at the price of
100000 in State of Tennessee bonds
and Louisville & Nashville Railroad
stock.
But Immediately upon the consum-
nation of this contract, the creditors of
the company were aroused from their
state of inaction, brought suit to re-
cover the property thus secured to the
city and county, upon the ground that
the sale made by the agents of the
county and city was in fact not sale
of their stock, but of the equity of re-
demption in the road.
In the meantime, the city had
donated to the common schools part
of it's interest in the furd, and sold
the remainder to the University in
consideration of ten perpetually free
scholarships. The county retained its
interest and held it as sinking fund
to provide for the payment of its bonds
issued to pay for subscriptions of
stock.
The cause came up for hearing be-
fore Chancellor Cooper at Nashville
early in November, and for the city
and county was argued by Gen. Quarles,
Col. House, Col. Bailey and Arthur
Munford. Alter the most mature con-
sideration, it was decided on Monday
last against the creditors and in favor
of the county and city.
We have never witnessed mani
festation of deeper feeling than upon
the receipt of the intelligence that the
cause was decided in favor of the peo-
pie. Without any concert of action,
the whole community was astir, can
mons were fired, all the bells of the
CITY were rung, the County Court in
session was adjourned, the schools
were dismissed that the children might
share in the general rejoicing and con-
CALCULATIONS, friend met friend, neigh
Dor met neighbor with greetings and
sometimes with embraces. 1t was a
day long to be remembered by our
people, and certainly will not soon be
forgotten by the friends of the schools
or by the taxpayers of the county.