Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-08-24
THEM. &C.RAILROAD
A Clear and Plain Statement Of the Re-
suits Accomplished by the Meeting
Of the Stockholders
Held at Huntsville on Tuesday, and Of
Those Likely to FOllow-An the Old
officials to be Retained.

The action of the stockholders meeting of
the Memphis and Charleston railroad, at
Huntsville, Ala, on Tuesday, being the sub
ject OF considerable talk, an APPEAL reporter
called upon Mr.. William NJ. Harrington, one
of the directors, who arrived home Yesterday
morning, for any additional facts that he
might be able to give. Mr.. Farrington was
found at his ofics at the Peoples Insurance
Company, and in answer TO the inquiry
What was done at the meeting yesterday?'
replied:
I'm the first place, that you may properly
understand the matter, ] will state that in
1877 lease was executed 10 the East Ten
nessee, Virginia and Georgia road, the details
of which have been published, and since
that time the Memphis and Charleston has
been operated as a part Of that system, and
under their control. For some time past
the stockholders have been wanting to get
possession of the road, and for the purpose
of bringing the matter to a settlement a
meeting was called in Memphis on 22d of
June TO vote on the proposition TO CONSOLE
date. There not being enough stock repre-
sented to act on the 10 after at the Mem phis
meeting, an adjournment was had over to
the 22d of August, at Huntsville, Ala. The
FIRST thing, therefore, that was done by the
meeting was TO vote on the proposition to
consolidate, which was practically unsni-
mously rejected, only one man opposing it,
and he favored cancellation of the
lease through the courts. The question
then came up on the question of
settling with the East Tennessee, Vir-
ginia and Georgia people, and resolution
was introduced by Colonel Colyar, of Nash
vile, which was carried, referring the matter
to committee TO make the best arrange
ments for the cancellation of the lease
Colonel Colyar stated incidentally that the
East Tennessee road would cancel the4eas4i
nm
in all probability, be done. When the stock
holders meeting adjourned the Board of
Directors met. President Stevenson was not
present, and, in his absence, ce-President
Jere Baxter presided. There were also pres
ent of the board Z. Dudley Frayser, G. NJ.
Fogg, w. n. Duncan, c. Y. Swami, w. r.
Rison and myself. A resolution was intro
duced appointing committee to carry out
the recommendations OF the stockholders,
and the following-named gentlemen were
appointed as such committee: President V.
K. Stevenson, Vice-President Baxter, Will
liam NJ. Harrington, j. w. Evans and EI-
Governor Porter. The question Of branch
road was then discussed, and while no action
i. was taken, it is contemplated to build road
from Birmingham to Jun through the Ala
bama coal-feids and intersect the Charleston
road at some point"
what will be the effect OF the action OF
the meeting, Mr.. Farriugton-favorable or
unfavorable?'
81 think decidedly favorable. In fact, the
influence was anticipated and felt before the
meeting. When it was known what action
would be taken, the stock jumped up to
sixty-three and half, higher than it has
been for months. Now, let me call your at
tention to some figures. The reports of the
officers of the road for the year ending June
Both, chow the gross earnings TO have been
81, 133, 072 81 total expenses 81 ,079,7 9l 4S;
interest on BONDED debt, S295, 200; interest ON
floating debt, $42, 2S9 39-from which it will
be seen that, with the interest added TO the
expenses. makes a total of 81, All, 304 81, be-
ing deficit of SOL ,611 &c, which is added
to the floating debt. The management 1.-THE
lessees) claim, however, that 1897, $50 went
to the betterment of the road, which, of
course, improves the property to that amount,
and makes it that much more valuable; but,
on the other hand, S137 900 of the earnings
were derived from the sale of old iron. Thus
you see, that with deficit of that sort ac-
cumulating every year, it would not take
long for the stock to waste itself away, and
the stockholders would get no; hing"
You think, then, that the road can be.
run cheaper;"
Eyes. 1t was stated by Colonel Colyar
that an economical administration could
operate the road at an expense of fifty-five to
sixty per cent. of the earnings, while it is
shown by the figures above that it has con-
sumed over ninety, exclusive of interest, and
with that added, would make it considerably
over 100, which means running at loss"
mention was made in the dispatches
about another issue Of stock. How about
thatW
sit is simply this. The present 81 100000
stock of the road is, of course, common stock,
there being no other. The new issue will
now be common stock, while the old becomes
preferred, which Is explained in the dis
patches referred to. While no plan has been
agreed TO, the present stockholders will have
the privilege of taking the new stock at
eight cents on the dollar"
"You think, then, Mr.. Harrington, that the
outlook Tor the Memphis and Charleston is
hopeful?"
a do. Everything looks that way. With
the new connections-the Memphis and
Kansas City road-and the good crops along
the line of the road, which are better than
for twenty years, there is no reason why the
company should not do well, and BON be-
gin the payment of dividends. The owners,
too, when they get possession, will, Of course,
feel more interest in its well-doing. Take
it all together, the future looks cheerful"
"The fact that the Charleston is operated
as an independent road will have no effect
upon its business, will it?"
"None whatever. Our relations with the
East Tennessee, Virginia and Georgia will
continue of the most cordial nature, and ar
engagements will be made for an exchange
of business. 1t is the intention of the
company to keep the old officials in charge,
and there will be no change in the general
management"
This closed the interview, aud after thank
ing Mr. Harrington for his inform alton, the
reporter departed.