Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-06-23
OUR NEW RAILROAD
The Kansas City, Springfield and Menu
phis Being Pushed as Fast as I'm
limited Capital viii Permit.
Rails Being Laid at the Rate of Three
Quarters of Mile Per Daytime
Charleston Consolidation.

of general interest to Memphis Just now, an
| APPEAL reporter yesterday called upon Mr..
Newman Erb, the attorney of the company,
at his Office on Madison street, to get any
| items concerning the road that he might be
| willing to impart. Mr.. Erb had just re-
turned from Little Rock, and although some
| what crowded with business, kindly con-
sented to be interviewed, and told the re-
porter to sire away" which he accordingly
| did, as follows:
Reporter-How is the work OF track-laylng
progressing, Mr.. Erb2
| Mr. Erb-We have laid about thirty five
miles Of iron from Springfield toward Mem
| phis, and track-laying is now progressing at
an average rate of three-quarters Of a mile
| day. We expect to commence laying rail
| out from Walnut Ridge within the next
| thirty days.
eporter-How about the work at this
| end OF the line?
Mr.. Erb-We have at this end, beginning
at a point about mile this side OF Mound
| City, twenty-five consecutive miles OF
road-bed graded and all ready for the rails,
| with the exception of some pillng, which Is
being put in. We are making our way
| through the bottoms toward Memphis as fast
as the water will let u.s. and the present indi-
| cations are that the road will be completed
between the Mississippi and st. Francis
rivers by the lst OF November: distance oil
| about forty miles. You gee, we cannot be-
gin laying iron on this end of the line until
the entire road-bed is com plete, and that can
not be done until the water goes down.
Reporter-How many men have you now
employed?
MIR. Erb-We have something over 1000,
and the number will be increased we need
them.
| Reporter-How about your rolling
ETC., Mr. Erb? 1 suppose that has all been
ordered?
Mr.. Erb-Oh, yes. All of our rolling
/ stock has been contracted for, and is now
being delivered. We have already received
ten locomotives at Springfield for the Mem
| phis extension.
Reporter-What do you mean by the
Memphis extension, Mr.. Erb?
| Mr.. Erb-Why, the line from Springfield
to Memphis. The other portion of the road,
from Springfield to Kansas City, you know,
has been completed and in operation for
years.
| Reporter-What effect will your road have
upon the commerce of Memphis?
| Mr. Erb-lt will open up new branches OF
| trade, especially that of grain, the carriage
of which will be one of the main supports
of the road There is no reason why we
should not be able to land grain from the
| West in Memphis at the same price as at st.
| Louis, With the difference of distance in
favor Of the former, and with proper fsciii-
ties for handling, together with her natural
advantages, Memphis must become great
grain market.
Repor.er-Any probability of barge line
to run in connection with your road, Mr..
Erb?
Mr.. Erb-I don't know about that. We
intend to erect an elevator on the other side
of the river, and, if the business will justify
it, of course the bsrges will follow. That,
however, will be governed entirely by the
demands of the trade, and will regulate
| itself.
Reporter-To sum up, Mr.. Erb, 1 might
say, then, that your prospects are favorable
for an early completion OF the road, and that
| everything is working satisfactorily?
Mr.. Erb-Yes, that is about it. III the
weather continues favorable the line will be
in running :order by the LIST of April or
May-Msy at the latest. We are modest in
our way OF doing business; we are moving
along quietly and easily, but are working all
| the time
Mr.. Erb here excused himself, on account
of business, and the reporter, after thanking
him, took mis- departure.
Stock holders Meeting OF .he ~: aud q.
| k. II. to Consider the Il. Il. v. and q.
| Consultations.
The Memphis and Charleston railroad
| stockholders met at 10 o'clock yesterday
morning, at the Casino Hall, to consider the
question of consolidation with the East Ten
nessee, Virginia and Georgia road. General
| Joseph Wheeler was elected chairman, and
L. r. Cruise secretary, and the convention adj
journed to pm.
AFTERNOON SESSION.
The meeting met at 2 pm. pursuant to
adjournment.
The committee reported as follows: Stock
represented in person, II, 335 shares; by
proxy, 122,731
The secretary then proceeded to read the
proposed plan of consolidation, of which the
| followiuu is a full axDianation.
THE EXPLANATION.
The Memphis and Charleston road is 1921
miles long. 1t earned last year 81 ,342 600,
or about $4,000 per mile. Its first mortgage
debt is 81, 222 600 seven per cent. thirty-year
bonds, lately issued. Interest account per
mile is therefore about $1,000. 1t has now
about S5,3l2 600 of stock. There will be
issued in lieu of this stock under the pro-
posed consolidation 81 ,3S7, 800 income bonds,
81, 1897 800 preferred stock, ST ,312 900 COM
stock, of which the present stockholders Of
| Memphis and Charleston will receive the
following gress amounts: OF income bonds
S3,718 400, or seventy per cent. of the old
stock; of preferred stock S3,71S, 400, or
seventy per cent. of the old stock; OF COM
mon stock S5,3I2 900, or 100 per cent. of the
old stock, which will leave in the treasury as
follows: OF income bonds 669, 100, worth
now fifty cents, 1884 900; of preferred stock
669, 100, worth now twenty cents, Sl33, 800; of
common stock 100000, worth now twelve
cents, S240,S $50, in round figures amounting
to SOS, 800, which will about pay the float
ing debt of the Memphis and Charleston
Company; but as the company owes the debt
to the East Tennessee, Virginia and Georgia
Company, that company. under the proposed
consolidation will cancel that indebted
ness, and give the Memphis and Charleston
road the benefit of any future value these
| securities may have, as they will go into
| If bo bOlo lima md
remain there for some time, as that company
is not compelled to dispose of them at once,
since the East Tennessee, Virginia and
| Georgia Company has no floating debt, but
I has about S5,000,000 in the treasury, or
| about $4,000 per mile surplus. And in order
| to make the Memphis and Charleston Con-
| pany appeal to have an equal amount of
surplus per mile in the treasury, under the
| consolidation the East Tennessee, Virginia
and Georgia Company takes the Memphis
| and Charleston securities at seventy cents
for the income bonds, at forty cents for the
preferred stock, at twenty cents for the
common stock, to-wit: Income bonds, $685.
100, at seventy cents, S46sS7O; preferred
stock, 669, 100, at forty cents, S267 $40; COM
mon stock, 100000, at twenty cents, $780,
| 900; or, in round numbers, 81 ,1S6,010 on
| 1924 miles OF road, or about $4,000 per
| mile; and the East Tennessee, Virginia and
Georgia Company cancels the floating debt
| out OF this sum, which, at these prices, would
! leave less than $1,000 per mile, as the float
| ing DEBT is about 500, 900, while the East
Tennessee, Virginia and Georgia Company
has $4,000 per mile, and owes no floating
| debt. And if the securities which the East
Tennessee, Virginia and Georgia Company
retain should never become more valuable
than at present, then the Memphis and
Charleston Company hiss Just about paid the
floating debt due the East Tennessee, Vir-
ginia and Georgia Company. holder Of
| Memphis and Charleston stock will get
under the proposed consolidation for each
dollar of stock he now holds as follows: In
income bonds, seventy cents; in preferred
stock, seventy cents; in common stock, 100
| cents.
The income bonds are to pay per cent,
as the road will easily earn 1t, which is
20 100 per cent. on the old stock-he fret
dividend ii ,rM hare received sii.ce about 1868
| When this movement was first begun in OPP
! position to the lease, by which the East Ten
nessee, Virginia and Georgia Company holds
the Memphis and Charleston road for seven
| teen years yet TO run, merely giving the
stockholders OF the Memphis and Charleston
| the surplus earnings, should there be any,
but not being bound for any fixed rental or
dividend, the stock of the Memphis and
| Charleston company was at 30c, and had
| been as low as &c. on the dollar; and under
the proposed consolidation the securities
which the holders of Memphis and Charles
| ton are to receive even at the preseut de-