Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-11-10
The Memphis end Charleston
Lease.
cAleaeo Ilns..

Chtcago Tine.
The Memphis and Charleston rail.
road extends from Memphis, Tenn. TO
stevenson, Ala, a distance of 272
miles. IL has besides twenty miles Of
branches, and it has a contract with
the Nashville, Chattanooga and st.
Louis railroad for the use Of twenty
eight miles of the latter roads tracks
between Stevenson and Chattanooga,
The terms upon which the privilege is
secured is the payment Of $4,000 a
month aud the agreement to keep the
track in repair. The contract will ex
pire October, 1883. The road, says
the New York Times, was very pros.
porous up to the time Of the yellow
fever epidemic 10 1871, aud earned a
10 per cent dividend. The r 7. Will
son syndicate, which at that time was
purchasing roads in the South, bought
a lot Of its stock from dissatisfied and
fearful holders. 1t sent out circulars
asking for proxies 10 use ct the ensu-
ing election. The syndicate took ad-
vantage Of the mower given it by the
proxies, and in June, 1879, leased the
road to the East Tennessee, Virginia
aud Georgia railroad. There was no
fixed rental, but the East Tennessee
was to pay the bonded Indebtedness,
keep the road 10 repair, and il anything
was left il was TO be turned over 10 the
stockholders. The stockholders next
year ousted the officers that made the
deal, and put in their own officers
The Wilson syndicate had in the
meantime sold its stock to the Seney
party, which controlled the East
Tennessee. The stockholders tried
without success to annul The
lease. All the surplus earnings Of the
1 Memphis 4 Charleston were expended
on the road for repairs and in three
years 81, 100000 was spent. The road
has been entirely reballssted, laid
with steel rails its whole length exeepI
eighteen miles, aud newly equipped,
Not only has the surplus been used
up, but the road has been
put ia debt 600. It is capitalized
Tor S5,3l2,T25, and its funded debt i,
A,22,OO0. This is the story as told
hy the officers Of the Memphis 4
Charleston.
There have been efforts recently t
break the lease, aud legal proceeding
we're threatened. Mr.. George i
Seney, who is the head Of the Seney
party. is said to have considered th,
company's case & good one, ant
thought i. best to make terms. II
made q proposition that the leas,
should be surrended if the Memphi
& Charleston would pay of the float
log debt aad = bonus of $1,000 0 MI
Seney agreed to accept AS consoli
dated mortgage bonds at 40, whicl
we're in the treasury OF the company
|, The plan decided upoa by the CON
pany vas to issue new stock eiougI
to raise 100000, all Of which shoul,
be taken by the old stockholders a
twelve dollars a share. That was t
|, be known as the common, and the old
whose par value was twenty FIVE dol
, lars, as the preferred The East Ten
nessee officers concluded that the
VI Juld try and make a different al
rsngement, aud eudeavored to Undue
, the Memphis & Charleston to acceI
= traffic agreement instead of givin
the bonus. The effort did not sue
, coed, aud the old idea was taken VI
1t was found to be necessary to kee
a certain number of the bonds 10 tn
treasury, so a slight change in th
plan was made. Friday was the tim
, set for the cancellation Of the leasI
/ The Memphis & Charleston was t
pay the bonded Indebtedness, tur
over 3O6 Of the bonds at 40. and pa
the remainder in cash.