Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1880-04-21

Chicago division. The branch was 10
run from Nashville, Tenn. through
Owensboro, Kentucky, to Evansville,
Indiana, q distance OF l57 milee. The
plan was to build the new road In the
best possible manner. laying steel
rails over 1871 miles of the route. To
procure the means necessary for the
work. II was proposed TO issue bonds
at the rate OF $l4. 900 for each mile of
the road. These bonds were to be
$1,000 each, TO run 40 yesrs, aud to
bear interest at the rate OF per cent
payable semi.annuslly In gold. They
were to be secured by first mortgage
upon the rosd, its rolling stock, e.c.
Col. E, w. Cole, president Of the
Nashville, Chattanooga and st. Louis
railroad company, came to this city last
October, and laid the scheme before
q number Of capitalists, who approved
Of 1t. A syndicate was formed, and on
October goth, Its members agreed to
take up the bonds at 80 cents on the
dollar. The agreement between the
parties was that the bonds should be
deposited with the Central Trust COM
pany as trustee, which should issue
them to the syndicate ia proportion as
the money for the building OF the new
road was paid. The contract provided
that $50, 600 should be paid to the rail-
road company on November !, 1879;
$l00, 900 on December /, 1879, and
$3.50, 600 on January |, 1880 The re-
mainder of the sum subscribed was TO
be paid in whenever called for by the
railroad company. The names of the
members of the syndicate and the par
value OF bonds they subscribed are as
follows: George l. Seney, $685.. 600;
Kuh, Loeb & Co., $3.50, 000; Edmund
D. Randolph (president(, $3.50 600;
Kountzs Brothers, $3.50. 900; F. ID.
Tappau (president), $3.50 900; James
Bnel, SIS 900; Roosevelt & Sons, $3.50
000; Julius Hallgarten. SIS 900; w. T.
Walters, Baltimore, Sl00, 900; ]. 3. Ken
nedy Il Co., $4,000; @. g. Williams,
$25, 600.
Soon after the contract was made be.
tween the syndicate and the railroad
company a controlling interest in the
Nashville, Chattanooga and 81. Louis
road was obtained by The Louisville
and Nashville railroad company,
whose interests Were opposed to the
building of such branch road IS bad
been devised. 1t was then detel mined
that the projected branch road should
not be built. The syndicate proposed
to carry out their port of the contract,
but the new managers Of the Nashville
and Chattanooga refused to accept their
money and issue the bonds they de-
manded. Early in March the Louis
Vile and Nashville company entered
into an agreement with the Nashville,
Chattanooga and St Louis company,
by which the former corporation
agreed to pay the members of the syn.
dictate any damages suffered by them
through the non.performsnce of
the contract made last October. A
letter was written by Mr.. James A.
Roosevelt, OF this city, on March IS,
to Mr.. a. Victor Newcomb, who is now
the president Of the Louisville aud
Nashville company, asking how the
agreement between the two companies
would effect the Interests OF the sub.
scrlbers 10 the bonds of the projected
branch road, Mr.. Newcom answered
that the Louisville and Nashville had
mo tangible proposition to make" to
them, but would meet them "in fair
and liberal spiFlt.n 1--WE shall have,n
he wrote, "a variety Of bonds to bring
upon the market, which, without any
reflection on the Nashville and Chat.
tsnooga bonds, / think will be more
desirable. You must bear In mind
Nt.~s 49, ~~--S-~-sr -----J~ vriAL4 The
Nashville and Chattanooga road. Our
| matters with that road hsve been ia
such chaotic condition that il has
been simply impossible for me to take
this matter up. You must also be
aware that the bonds can not be Issued,
as the road 10 not 10 be built. 1 am not
aware that your contract specifies any
time when the Nashville and Chatta-
nooga shall deliver you the bonds.
This letter settled 1t that the syndi-
cate were not TO get the bonds for
which they had subscribed. Tie New
York capitalists now claim 10 have
suffered loss Of from ~ to IA per
cent. on the par value of the bonds,
as Judging from the market prices of
similar securities, they consider they
could now sell the Nashville and
Chattanooga bonds--if they had them
at from 102 to 104, while the price
they agreed to pay for them was 90
per cent OF tnelr par value. -Four
suits for damages have therefore been
begun in the supreme court In this
city by members of the syndicate
against the two railroad companies.
The principal action Is brought by
Mr.. George L. Seney, who subscribed
for $69S, 900 worth of the bonds. He
estimates his damages at 800, 600 but
asks judgment for SIS. 200. Messrs.
James A, Alfred and William E.
Roosevelt estimate their damages at
s3l, 600 and sue for $4,000; Messrs. J.
8. Kennedy & Co. claita judgment
for $25 600, after suffering damages
which they place al $4,000; Messrs.
kountze place their present damages
SIS 900 and sue for S25. 600. On the
application of Messrs. Shearman 4
Sterling, attorneys for all the plain
tiffs, Judge Donahue yesterday Issued
attachments against the property OF
the defendant railroad companies In
this city. The attachments were inn
medistely served upon the Metropol!-
tan Bank, the Bank OF Commerce, the
Gallstln Bank, the Continental Ma.
tiOnal Rank Drpxal Morpan A. N