Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1886-07-31
PRESIDENT SMITHS PROPOSITION.
a Card From Capt. Herrdon Explaining
What II Was.
TO the Chronicle.

Since the controversy has sprung up
between Major Gordon and the l.. q n.
r.. r., and even before, much has been
said and written about the interview be-
tween Mr.. Smith, President OF the L.
& N. r. r., and the committee OF sub
scribers to the /. A. 4 T., bonds, and
among it all, so little of the real truth,
that as one of that committee, | propose
TO state the facts as l recollect them, so
that while men are forming opinions,
let them do so with the facts before
them. The committee was appointed
at public meeting of the subscribers
to the l. A. & t., bonds, and il it rep
resented any body or any thing, it was
the entire body of subscribers. The
committee we're instructed to open up
negotiations with any and all railroads
from whom we might reasonably ex-
pect assistance in getting the |. A. & 7.
completed.
Our committee communicated with
the officials Of the G. & o. r. r., the
Ohio Valley r. R., and the l.. 4 N. r.
r. Various letters passed with each.
The two first mentioned companies
while always kind and courteous, never
made any proposition, nor did we get
an interview with either. But in COM
pliance with the committees request,
Mr.. Smith, President l.. & N, arranged
for an interview with our committee at
Louisville, which for our own greater
convenience, was changed to GAINESVILLE.
He came down and the committee was
called together in interview with him.
The financial condition of the l. A.
& T., was fully and frankly discussed,
and that from the standpoint OF common
creditors OF the same corporation. It
was agreed that we were in the same boat
financially and the interest of one as cred
itor, was the interest OF the other. Mr.
Smith said that the L. & N. Co., would
be willing to join with our subscribers
to the 5000, 900 of the 1. A. & T., bonds
and buy out the l. A. & t., il Gordon
would consent to its sale; would then
form a new company and fund the old
bonded debt by issuing stock certificates
OF the new company at par, for the full
amount of the bonds held, or entitled
to be held by the L. & NJ, and our sub
scribers would then elect new board OF
directors from GAINESVILLE and along its
line; would aid the new company in
selling its first mortgage bonds to the
amount OF one hundred and fifty or two
hundred thousand dollars, or whatever
amount it might require to rebuild the
first six or eight miles Of road; change
the whole to a standard guage, and
equip it with plenty of engines and
other rolling stock. The road at all
times to be under local board OF direc-
tors or a majority of such.
He was pressed by various members
of the committee on the propriety Of
making the whole debt bonded debt,
instead of part stock and part bond
ed. Mr.. Smith argued against the point
claiming it would be dangerous to try
to float so large bonded debt for sc
short road and claiming that if the
road could earn the interest on so large
debt that it would make the stock val
liable by its dividends, but d failure tC
pay dividends was not so dangerous al
failure to pay interest.
On the subject of completing the roaC
to Princeton, he said he met us by in
structions of his board of directors wh(
had not authorized him to propose
building beyond Cerulean Springs, tt
which point the road was graded. Tha
the people along the line could take al
the bonds if they would, but if the,
could not be sold any where else, hi
company would take them at par for
sufficient amount to complete and equi]
a first class standard guage road to Ceru
lean Springs. He said his compan
could not at this time furnish the none
to build to Princeton, but that the
might be willing to make such an al
rangement some time in the future bu
he was not prepared to guarantee at TIL
time beyond Cerulean Springs TIL
question of the present rates of the
A. & T., were incidentally mentioned
otherwise no mention was made OF th
rates as the questioned rates with all othe
questions was one for the new board {
directors, OF whom it was from the fir,
understood, GAINESVILLE and subscriber
along the line should have the majorit
Mr.. Smith insisting that it ought to
operated in the interest and for the ber
eft Of GAINESVILLE and the people alon
its line. The committee did not recon
mend the proposition, still hoping to a