Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1880-11-11

amounting to $5s, $3.50, leaving to the
credit of profit and loss account, S87 .651. %.
It Ia believed that there will be consid-
cradle increase In gross revenue for the
current fiscal year, but the expenses of
improvement in track; by replacing iron
witk steel rails. ballasting track. snd
additions to rolling stock, will be
| considerably more than last year, q
portion, however, of the expenditure to be |
paid for in the current fiscal year, for inns
provement and betterments will be provid.
ed for outside OF the earnings of the road |
by the Sale of stocks ordered by the stock
holders at their called meeting held on the |
9th of October.
Feeling that the capital stock did not |
properly represent the cost of your road, |
| much of the net earnings heretofore having |
gone into the improvement of the property, |
the stockholders at the called meeting on
/ the 9th Of October resolved to increase the
capital stock to SIS GOO GOO 90, assigning to
each holder of stock 150 per cent. of the
increased stock, upon the payment to the
| company by the stockholder, of 3Oper cent
of the par or faue value of said stock. This
| assessment was made necessary to M ct
bonds and other liabilities of the company,
which matured during the last fiscal year
and provide means for increased outlay TOT
steel rails. and large increase of rolling
stocK, which is badly needed by the COM
pany. This action on the part of the stock
|
your directors have been informed. At
the same meeting the board Of directors
were instructed to buy the Selma, Rome
: and Dalton railroad from the syndicate.
which purchased it in June last at Selma,
Ala, if it could be done for ~, 26O, OO w,
payable in per cent. fty year registered
coupon bonds of this company, and also to
buy the balance of the stock In the Geor-
gis Southern railroad. The board of
directors referred both these questions to
. the committee advisory to the president,
with power to act. and have received its
report, and have also received propositions
from the owners of the above roads for
! their sale, which are submitted to the stock
holders herewith for their action at this
Of the 1877, OOO.C0 Of the company's
8 bonds maturing 1st of July, about S307.
8 coo have been redeemed. leaving ZOO.
which have not been presented, but will
be redeemed on presentation.
r, It is gratifying to be able to report
z that after most elaborate and able
= argument before his honor. Judge Witty,
z holding the United States circuit court, the
case Of the Tennessee internal improve
ment bondhol ers against your company
D a ID others similarly situated, has been de-
cided in favor of the railroads. Judge
B Witty, of Michigan, was selected by
both sides. on account of his eminent legal
s,tsinments, to hear the case, and as we
5 have stated, the case was argued in May
= last, at great length, and with consummate
D ability on both sides He held the case
under consideration until October, and
then gave his opinion, in which he decided,
Il that according to the origi al act of 1851
and 1852. the Tennessee bondholders never
= had any claim upon the railroads. His de-
| cision is clear and decisive of the question.
u The expenses of this prolonged and
IVY litigation have. been considerable.
and will enter into the accounts of the
y company during the current fiscal year.
81 Notwithstanding the yellow fever cpl
y demic which prevailed in Memphis FRI n
early in July to N )vemb Der, 1879, the gross
earnings of the Memphis and Charleston
railroad. which is leased by YOU
company amounted to-. 81 COG, 27O. 4
Operating expenses. better.
ments and improvements OF
property ........... 164 ~ e
Leaving net profts.................. 2l8. 299 2
To Which amount should be
added old rails released dur
ing the fiscal year and on
hand CD Goth of June, but
since sold, amounting to-. :. 44.625.0
Increasing the net earningst to. 1852, 94. 2
Which shows a deficiency of about $45.
90 in the years operations, after payinl
operating expenses, bet1erments and i'm
pr"vements of property and interest Of
Is bonded and floating debt and exchange.
There was. however, an unusual amour
of steel rail laid on the road during tn
fiscal year and charged to expenses, and
is estimated that the extraordinary expend
iture for steel rails during the fiscal yea
have given an increased value to the prop
erty of about one hundred thousand dol
lars, while the expenditures have sbou
IL sufficed to maintain the property. If thi
be correct, the operations for the yea
would show the following result to-wit:
Amount of net proceeds as
70 stated .............. ........ 262 9 a
Add increased value of property l 0,0O0O
$780,, 924 Z
Less accruing interest on bonded
and floating indebtedness of
the company during the year, 1907, 787. s
Leaving as net gain on years
operations .........."................ DO, 1866
le The general improvement in business wi
Id ensure q large increase of revenue fror
ng this road, and it is believed the amount wi
as be sufficient to carry on the present I'm
K provement of that property, in laying stet
K rails and adding to its rolling stock, and {
's meet its entire interest liability for the cur
rent year. It is contemplated to lay dow
on that road, during the current fiscal yea
5000 tons steel rail, and add 10) freigt
ars and several locomotives to its rollin
II stock, after which 8 less annual outlay wi
be required to finish laying its track in stet
~ rails and add q sufficient amount of rollin
stock to accommodate the increasing bus
nass of that road.
Since the close Of the fiscal year ne,
contract has been made between til
Memphis and Charleston railroa
company. with the assent of tn
81 company as lessee, and the Mas hvil
Chattanooga aud St. Louis railway for t.,
unexpired time of the contract existing be
tween the Memphis and Charleston raj
road company and the Nashville an
Chattanooga railroad company. whic
would have terminated in June 1888. TIL
new contract provides for a royalty
$5,C0I per month, to be paid by the Mem
phis and Charleston railroad company fc
the joint and unrestricted use by the NJ EN-
phis and Charleston railroad company
the track between Stevenson, Ala, an
Chattanooga, Tenn, and the Nashville
90 Chattanooga and ST. Louis railway binG
itself to keep said track 10 first class orde
the Memphis and Charleston railroad CON
pany having the right to run upon its ow
schedules between Stevenson, Ala, an
Chattanooga Tenn, and by which col
tract the Memphis and Charleston railroS
practically terminates a. Chattanooga il
stead of Stevenson as heretofore.
It is believed that this new contract wi
be Of great benefit TO the Memphis an
Charleston railroad, as it ha. heretofol
labored under many disabilities on aecoul
an of the old contract, which cramped its OF
$50 4aS