The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1885-11-11

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Company, held in Aiken on Wednesday, No:
vember /, the following report was submitted
by Gen. johnson Hagood, the President OF
the company:
President TfagoOd's Report.
AIKEN, S. c., November 4, 1885:
To the Directors and Stockholders Of the
Carolina, Cumberland Gap and Chicago Rail;
way! In 1882 there were five duly chartered
and organized railroad companies In the re-
spective States OF South Carolina, North Car.
plna, and Tennessee and Kentucky, whose
franchises, If united, gave an almost air line
connection between the South Carolina Rail.
road at Aiken and the Kentucky system OF
roads at London in the last named State. the
obvious interests of these several roads LED to
their consolidation under the name. OF: the
Carolina, Cumberland Gap and Chicago Rail-
The roads that now constitute the South
Carolina division OF the consolidated railway
had, while existing separately, raised and ex,
pended in construction between Aiken anu
Pickcns Sj9,150. This work had been done
cheaply with convict labor, and was eSt1ma-
ted by competent engineers much higher J. IN
actual value. They had also acquired, by 40
nation or purchase along that portion OF the
line, rights of way, depotsites, &c. They had
q small floating debt, and assets consisting
chiefly Of uncollected subscriptions exceeding
beyond South Carolina consisted chleHy OF
contingent subscriptions, not then or now
available, and their liabilities were little or
nothing. &.
How the Road was to be Built.
The organization OF the consolidated com.
pany took place at Grcenville. >. o., upon the
;nth September, lSS2, the President anu quo
rum Of the directors named IN the artlcles o
merger and consolidation being present. a
carefully prepared draft Of first mortgage anu
trust deed, under which the Farmers Loan
and Trust Company, OF New. York, was trus
tee. was submitted. a similar drait OF a sec.
ond mortgage and trust deed, ErovldlnS ioi
the issue or income bonds, was likewise sun
mitted. These forms were adopted, the fresi
dent directed to execute the deeds. and WIZ
liam Fl. SchOfieid, of New York, elected nnan
cial agent of the company, wltn power OF eS.
sale of It's bonds and stocks. The approval o.
the sales was reserved by the company, ana
the proceeds were to be deposited Win the
trustees, to be used only for purposes o. con
Atlantic and Northwestern. Construction
Company, Of New Jersey, for the constructors
of the railway throughout It's entire lehgti
was then submitted, cNamir ed and adopted
agent was and remains the President Of the
Construction Company. Upon inns Inc reslg
nations of the President and directors nameo
in the articles Of merger and cOnsolldat!oi
of the present direction, and the meeting ad
journcd.
The Contract Of the Construction
Company. -
The company had thus adopted well.de
fined policy and the President and directors
rs now constituted were lett to execute IT
Tbis nolicy finds expression In the Sallen
features of the construction contract. Thest
are: ...
to build and turn over to the railway COLI "ii
I'd. It is to receive therefor, subject to exist
| ing liens, the assets now on hand or tnat ma
| hereafter accrue to- the railway company. i
is also to receive the proceeds of sales OF mort
gage bonds and all the capital stock OF th'
railway company, with inconsiderapie eA
ceptions.
mcncc within reasonable time after the eX
ecution Of contract and complete ana Iuli!
equip from 50 to 100 miles Of the railway with
| In one year from the commencement OF WORK
To this is subsequently added prGVlSo ina
tho Construction Company shall not o
obi igcd TO commence work until a satisiitcto
| nv Contract for the sale OF the mortGas'
bonds of the railway shall have been made.
4th Pending construction, ana comi"e1G,r manI
pmny Is to pay the official salaries anu onc
expenses Of the railway company.
In carrying, out this scheme inc nmamc'a ,ne a
agent proceeded at once TO tne discharse r, hret
appended, gives the details OF his work X, t
date. The expenses connected therewltl
have been borne by himself aEd are no
chargea6lc upon the railway. -
The Construction Company availed itself
the proviso OF the contract in relation to tn
commencement of work. For short tim
and to Il limited extent 1t provided for the eA
then by corrcspon dcnce and conference wit
Its officers was learned Its inability TO compl
with It's contract relative to the Aiken once
or TO commence construction before a favora
HE conclusion of the negotiation for the sal
of the railway company's bonds was reached
The Directors Try New Plan-.-Th