Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1880-12-21
Els Condition and the Prospects
OF Finishing the ROad.

A railway meeting was held at the
cotton exchange last evening to CON
slider the condition of the Memphis
and Paducah road, and the incomplete
gap of ffty-four miles between Gov
iOston and Trimble, Tenn.
Of the unfinished fifty-four miles,
it is stated thirty-three miles are
graded and bridged, though some re
pairing would be necessary to render
it ft for iron laying. The line is in
operation from here to Covington, a
distance Of thirty. seven miles, also
from Trimble to Paducah, seventy
five miles more. 1t is estimated that
six hundred and thirty thousand dol
lars will be required to complete the
road. This exclusive Of rolling stock
and other necessaries, which would
cost from thirty to fifty thousand dol
lars more. Six months time, under
favorable weather and other auspices
will be necessary to perform the work.
The present condition of the road as
stated by Mr.. Smithers, the receiver
appointed by the court in Kentucky
last week, aud candidate for the
place in the courts Of Tennessee. He
said the City National bank Of Padu
cah had brought suit against the road
on Is first mortgage bonds, belonging
to the bank, and claimed the principal
to be due by the fling Of the fore
closure suit. The road kept its ac
count at the bank, had $4,000 on
hand and was stopped from paying of
hands last month by having their
checks dishonored. The bauk had a
right to do this, but it was wholly un-
expected to the road managers, aud a
receiver became necessary, ard Mr..
Smithers was appointed. The aim Of
the foreign bopdholders is to complete
the road as early as possible,
and when they acquire proper
title they will finish and equip
IT, putting perhaps $l,2O0OOO
six por cent bonds as FIRST mortgage
upon it to raise the necessary funds,
Hostile legislation in southern states
can 6alv binder the completion of the
road, and the present owners, desiring
to get interest on their investm eut,
which they cannot do while it is cm
barrassed and unfinished. Mr.. .Smithers
gave an emphatic denial to anysubsidy
being paid by the i, 4 n, road not to
finish it.
Mr.. Smithers states that he has
represented the Dutch bondholders
who ogn . large part Of its first mort
gage bonds. The road defaulted on
its bond interest in August 1874. TIE
company made many promises Of
coS:@.nleting the road if the
bondholders 11oc9ld tOrboar, and
this policy was pursued ~ the the
bondholders until it became evident
that an entire reorganization was ne
cessary.
An agreement was made in Janu-
ary, 1876, and sale reached in April,
1877. Technicalities rendered more
legislation necessary, and it YVES not
until April, 1878, that the present
company was formed. The property
was transferred to the company last
January. The original contract pro-
vided for s3,OOO,OOO first mortgage
bonds, of which S2,O49,OOO we're
to be preferred, and the
time having nearly run out these
bonds could not be marketed. For
some gears past the bondholders have
not received a penny Of interest, and
all the road has earned has been ex.
pended upon it. Efforts were made
early in 1879 to arrange for the com
pletion Of the road, but a contract to
that effect existing previously could
not be changed without the consent
Of all the parties concerned. The
Southern railway association, ofwhch
II. S. McComb was president, being being
in litigation, were unwilling to become
party to changing the contract,
30 that enough Of the Sl,Oi9,-
600 Of bonds could have
absolute preference, and be put on tn,