The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-02-26

and formulated abroad and comprehensive
plan, which will provide not only for
present wants, but for the better and more
complete consolidation OF the existing
terminal system and for its future necessi-
ties.
BONDS TO BE ISSUED.
"a mortgage has been prepared secur-
ing an issue OF $25, 100000 Of 8 per cent
bonds, covering all of the stocks and bonds
now owned by the company and certain
Others, which are to be acquired by pur-
chase or exchange, and which are specific
ally designated in the mortgage. Five
millions OF these bonds have been sold for
the purpose OF paying for the Georgia
stock and TO clean up the floating debt.
Six million two hundred thousand dollars
will be held by the trustee TO meet the 0
per cent. bonds, which are prior mort
gage upon some of the assets. Five
million dollars will be held to exchange
for the terminal preferred stock, il at any
time such exchange can be made upon
equitable terms. Seven hundred thou
sand dollars will be held to exchange for
the balance OF the Richmond q Danville
stock now outstanding; 1900, 600 to ex-
change for the East Tennessee, Virginia q
Georgia first preferred stock which is now
outstanding In order to get in this stock
and the Richmond & Danville stock sew
eral millions OF terminal common stock
will have to be issued and given in addi-
ton TO the bonds $1,000, 900 will be held
TO exchange for the bonds Of the Georgia
Company Of like amount,
''These are the leading features OF the
new plan, the details Of which would oc-
cupy great space"
MAY ask, Mr.. Dooley, the objects Of
the consolidation"
''In lSS0the Pennsylvania Railroad Com
pany controlled and had for many years
controlled the Richmond & Danville Rail-
road. 1t extended from Richmond to Au-
gusta, Ga. In 1872 the road from Char
lotto to Atlanta was controlled by the
Richmond q Danyllc, but went into bank
ruptcy and had 10 be abandoned.
AFTER the death of Tom Scott the Penn
sylvania railroad people gave up all hope
OF extending the Richmond d Danville
Tom SCOTS idea was 10 extend il to the
Mississippi river and connect it with the
Texas Pacific.
Finding that the Pennsylvania people
would do nothing and that Richmond was
being cut oil and in danger Of losing its
trade withthe South, party OF Richmond
gentlemen, among whom were Logan, Blu
ford, Bryan, Stewart. Palmer and myself,
assOciating themselves with Mr.. William
T. Clyde, Of New York, formed a syndi.
cate TO buy and extend the Richmond &
Danville.
BOUGHT FROM THE PENNSYLVANIA.
"rhey purchased the majority of stock
from the Pennsylvania Railroad Company
and proceeded, rs soon as practicable, to
lease the Atlanta and Charlotte and the
York River railroads II was found that
the Richmond q Danyille had neither
the capital nor the franchises TO carry out
the views OF the syndicate. They there
upon procured the Terminal charter and
organized a company with $1,000, 900 capi.
tai.
There were several incomplete sl,ele-
tons OF roads tributary TO the Richmond q
Danyillc which were needed to protect its
TANKS aud give 1t through connections.
The Terminal Company bought the Co.
lumbia q Grcenyillo, the Blue Ridge,
the Western North Carolina, tho Asle-
vile * Spartanburg, the Knoxville d
Ohio, aud the Oxford q Henderson rail-
roads. IL constructed the Richmond q
Mecklenburg and completed the Western
North Carolina across the mountains TO a
connection with the East Tennessee, Nir-
ginia & Georgia at Point Rock. In q
few months the capital stock OF the Ter.
minal was increased TO SJ,OOO,OOJ all paid
up, dollar for dollar.
1--WE then, in 1881, undertook 10 buy
the East Tennessee, Virginia x Georgia,
and were negotiating for is purchase when
it was bought by Scney, Brice q Thomas,
who made a higher bid. Al that carly day
We recognized The necessity Of that road 10
the Richmond system. There Il only
twelve miles difference in distance from
Knoxville TO West Point, via the Richmond
* Dlnylle, and from Knoxville 10 Norfolk,
via the Norfolk & Western.
"Ncst Point las every facility for COM
mcrcc that Norfolk has, and Is better
port because 1t IL flesh water aud there
are no por, charges"
"llow did you come 10 get the Midland
Roadg"
"The Virginia Midland was next &C.
quirrd because the Baltimore x Ohio,
which controlled that road, was threaten
ing 10 extend southwark aud TO cut off
lIchmond's trade with the Southwest.
The Virginia Midland cost 5000, 600 Of
cash. This ncccssitatcd the increase OF
the capital stock Of The Terminal Company
10 Sl5,0110OO, Sl0,OO0,OOO Of new stock
being sold 10 the stockholders for -, 800
OJl About the same time We proceeded
to carry out Tom Scolts idea Of carrying
the road TO the Mississippi River. which
WIS done by constructing the Georgia Pa.
cilc from Atlanta by way Of Birmingham,
Columbus and Grccnville."