Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-17

Z
people make the most OF the opportunity Of
tered to increase the trade, prosperity and
importance Of Kansas City as a commercial
center.
Plan for the Cancellation of tue Lease
Of the Charleston Road.
The stock OF the Memphis and Charleston
road has been quite active lately, says the
New York World, On rumors that its lease to
the East Tennessee, Virginia and Georgia
Railroad Company wss aboutto be Cancelled.
The Memphis and Charleston road runs
from Memphis, Tenn, to Stevenson, Ala,
distance OF 292 miles, and it has branches sg-
gregating twenty miles or more. It's trains run
over the Nashville, Chattanooga and s.. Louis
road Tor thirty-eight miles, between Stevenson
and Chattanooga, for which the company
pays a rental of 5000 a month, the lessons
keeping the track in repair. This makes the
total OF all lines operated $50 miles.
The Memphis and Charleston railroad Is
now operated by the East Tennessee, Vir-
ginia and Georgia road under a lease dated
June 2, 1877, for twenty years from July /,
1877. The lessees are first to apply the net
earnings to the payment of interest; any
balance TO be paid over to the lessons.
Since July l, 1877, the East Tennessee,
Virginia and Georgia road has taken up and
hold against the Memphis and Charleston
AOdu OOupOus Uu iLo JULIUS ~ luc dmOuut VI
81, OS0,000. 1t has received in earnings for
the Memphis and Charleston road since the
debt has been accommodating about 1886, 900,
leaving deficit of about $4,000, for which
deficit the above coupons are he'd rs Sc
curity. The Memphis and Charleston is,
therefore, about $4,000 behindhand.
This year it is said that the Memphis and
Charleston road will be under great addi-
uonal expense, as very large number of
new rails are necessary, and tive new bridges
will have 10 be constructed TO render travel
over the road safe.
This Memphis and Charleston people are
very anxious, as Wall street slang has it, to
"get out of pawn" and take possession OF
their road and operate it themselves, and the
plan they have adopted is as follows: They
are to pay bonus OF $500, 900 for the cancel
lation of the lease, and $3.50 900 for The in
terest already paid by the East Tennessee,
Virgini and Georgia road; also about $780,
600 for stock held by the latter company,
making a total of 81 100000. The next
thing was to raise this amount, and TO do so
they have decided and have been authorized
by their stockholders 10 issue about S., 000,-
600 in stock and about 100000 in bonds.
This, If placed even at twenty, would give
the required amount.
The interest at present on the Memphis
and Charleston bonds is seven per cent, max.
ing total of 1926, $40 year. This amount
the read has not been able 10 earn since
1878, and in 1881 there was a deficit OF
$l13 so a mile. The gross earnings for the
five months ending November 1, 1881, were
S538, 900, and for five months ending Novem.
Der l, 1882, 1876, 900, making a decrease of
$4,000. By the plan the Memphis and
Charleston road has adopted the capital
stock of the company will be almost doubled.
The Selma and Brunswick Road.
From recent interview we learn that
Mr.. Wolfe is still interested in Southern
railroads, but only as financial manager in
the Cincinnati, Selma and Mobile and the
Brunswick and Albany and proposed Mem
phis extension neither of which are owned
or controlled by The Erlauger or system OF
roads in which they are interested, known as
the Cincinnati, New Orleans and Texas Pa
cifc, Alabama, Great Southern, Vicksburg
and Meridian, Vlcksburg, Shreveport and
Pacific, and New Orleans and Northe astern.
OF his syndicate Mr.. Wolfe says that its
condition is excellent in every degree. You
see the financial transactions incurred in the
purchase of the roads by the Changer Eyndi.
cate are all settled, and have been for six
months past. These transactions amounted to
something like $50, 100000. The roads pur-
chased by us were the Alabams, Chattanooga
and Vicksburg; the Meridian, Yicksburg and
Shreveport, and the New Orleans and North
eastern. Besides these there was the leasing
of the Cincinnati Southern. These roads are
combined under what is known as the Gin
cinnaii, New Orleans and Texas Pacific.
Alter this was perfected the Erlanger Syndi-
Gates work was practically ended. The or
ganization was placed in the hands of Mr..
John Scott, of Cincinnati, who is the re-
| sponsible financial agent Of all these roads.
The Erlanger Syndicate represents e, 900 900,
and do not suppose nybody can doubt its
| financial condition"