The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-05-20
Kansas City, Memphis and BIr.
mIugham,

Charles Merriam, trs asurer, by order
OF the Board OF Directors, Issues TO the
stockholders Of the X ansas City Spring.
field and Memphis Railroad Company
circular which says II is prop 1sed to
construct a railroa1 Of alb cut 260 miles
in 'ength fiom the terminus OF the
Kaueas City, Sp ingfeld and Memphis
railroad, In the city OF Memphis, in a
southeatterly direction through Ten
nessee ard Mississippi 10 the city Of
Birmingham, Ala, connecting there
with the Central lailroid OF Georgia,
the Georgia Pacific, tie L:u'svills an /
Nashville, and the Alabama and Chat
tHnooga railroads. The new company
VIII be called the Kantag City, Mem
phts and Birmingham Railroad Com
pAht. Separate organic atoms will
have to be made in each Of the three
States Of Tennessee, Mississippi ADD
Alabama; but the Mississippi and
Tennessee corporations will be imme-
dihtely consolidated. The consolidat.
ed corporations viii provide the means
for building the entire line, and the
securities herein offered are those OF
that corporation. Those OF the Ala
bams corporation will be taken by he
consolidated company, and will be
pledged with its railroad and other
property to secure its first mortgage
bonds. The whole line will
be managed as single road,
and II legislative authority
can be obtained, the Alabsma corpo-
ration will be merged in the consolida-
ton before the issue OF the securities
hereby offered. The estimated cost OF
the new road, thoroughly built and
fully equipped, with ample terminal
facilities and including interest during
construction, Is So, AGO. $50, or a hiAe
under $22 900 per mile. The Issue OF
first mortgage bonds is 10 be limited
to sos, 600 per mile OF the entire line Of
$50 miles. The bonds are to run forty
years from their date, and to bear in
terest at the rate OF per cent. per an.
mum. In consideration OF the addi-
tional business to accrue to the Kan
ta' City, Sprint field and Memphis
read from business going to
and coming from the new road
and OF the stock Of the new com
pauy to se issued as hereinafter pro.
vided, the Ksnsas City, Springfield
and Memphis Railroad COMPANY is 10
execute a traffic contract with the
Kansas City, Memphis aud Birming-
BAN Railroad Company, agreeing 10
Get aside 10 per cent. OF its gross earn
ings derived from business going to
and coming from the latter road, for
the term OF forty years. The amount
set aside under said contract TO be APP
piled:
|. To paw, II needed be, any inter
eat on the Kansas City, Memphis and
Birmingham Railroad Compauy's first
mortgage 5 per cent, bonds not pro-
vided for by net earnings.
2. To the purchase by advertisement
Of the first mortgage bonds OF the
Kansas CITY, Memphis and Brming-
ham Railroad Company at a price not
exceeding 81 10 and interest.
The stockholders Of the Kansas
City, Springfield and Memphis Rail
loid Company oil record Msy "A, 1885,
at 3 O'Clock pm, are hereby ofIe ed
the securities Of the new company
upon the following terms: For each
ten shares so held, or Iishts thereon,
the holder may sub 'cribe for chs
block, consisting OF five shares, ni
capital stock at 7 az, $500; $1,000 rer
cent forty-year houds at A. par cent,
$3.50; total oil 1850. A like amount
OF stock is 10 be issued TO thu Kaasns
City, Springfield and Mem( his Ra |.
road Company for it's traffic gua,auiee
aud other considerations. Sub Grip
tons will be received for entire blocks,
aud the subscription list and the as
Segment Of rights will close at 3
O'Clock pm June IA, 1885.