AR, L&N 7/1/1861 P (Sup)

Annual Report of the Louisville & Nashville RR
as of July 1, 1861
President's Report
 
President and Director's Supplement Report
 
No. 1
 
   On the 4th of July our Passenger, Freight and Construction Trains operating in the State of Tennessee, were seized by the military of that State, by order of Governor Harris. Several telegrams took place in relation to the seizure, which were published, with the President's communication to the Courier, herewith republished for the information of the Stockholders, together with a subsequent letter from Governor Harris, and the reply of the President, and a communication from the Governor's Private Secretary, acknowledging that the Governor had received the President's reply. Governor Harris has not replied to the President's letter of the 15th of July, but has retained the engines and rolling stock of the Company which the State had seized, and is, and has been, operating the forty-five miles of the road in that State.
   The report of A. Fink, Esq., Superintendent of Machinery and Road Department, states the number and value of engines seized; also the number and value of the passenger, baggage and freight cars seized; also the quantity of wood and other articles, and the value thereof -- $110,277.14.
   The report of Willis Ranney, Esq., Secretary of the Company, states the expenditures made upon the forty-five miles of road in that State, and the amount contributed as Stock and Tennessee State Aid Bonds to its construction in Tennessee, without any charge for the equipment.
   Bu the action of the authorities of the State of Tennessee, the company have been deprived of the use of the forty-five miles of road in the State, and of the motive power and rolling stock seized, and the wood and other materials, costing the Company $1,949,662.40, and worth to the Company, in connection with the balance of the road, at least eight per cent. per annum, and the cost after keeping the same in good condition and repair.
   The road with the wing to Nashville, and the one to the State line, in the direction of Clarksville and Memphis, possessed decided capacity for a large passenger and freight business, with the advantage of cheap operation. The loss of the connection with Nashville, and the seizure of so large a portion of the freight cars, has seriously affected the business of the Company, and will continue to do so until the road and stock, and the relations of the States, shall be restored.
James Guthrie
President
 
[For the Louisville Courier]
The Louisville & Nashville Railroad
Editors Louisville Courier:
   I see in your paper of this morning extracts from the Nashville papers, and your comments, justifying the seizure of the part of the Louisville & Nashville Railroad in the State of Tennessee, and the freight, and down and up passenger trains, on the 4th instant, by a military force under the command of General Anderson. It is assumed by you and the Nashville papers, that the engines and cars of the company were being removed from the Nashville end of the road for the purpose of depriving that end of the road of its fair proportion of the equipment. The assumption is without any just foundation. The company have always kept at Nashville all the motive power and rolling stock required for the business at that place. They were running two passenger trains into and out of Nashville daily, and had been running for the last two months two daily freight trains in and out of Nashville, and occasionally a third freight trains.
   The Company always kept an engine on repairs in that State, and generally a switching engine at Nashville, and when, as within the last few days, the freighting business required but one daily train, and not even that, they loaned the Edgefield & Kentucky Railroad Company an engine.
   The freighting from Nashville North, was never one fiftieth part of what it was to that place, and Tennessee had just stopped the shipment of cotton, tobacco, rice and turpentine, over the road, so that there was no freight coming from Nashville, and but little going there, and no business requiring more motive power and cars than were every day at that place.
   The stalls and shops of the company were at Louisville and Bowling Green, and all the repairs of engines and cars were done at these places, but the company kept at Nashville a person to examine engines and cars, for the purpose of ascertaining all was right before they were allowed to go out.
   The shops and stalls were placed at Bowling Green in order that it might answer for the line to Nashville, and the line to Clarksville, saving the expense of duplicating the buildings, and, to some extent, the employees.
   The assumption that the Nashville end is entitled to a greater number of engines and cars than has been employed on the road in that State, on account of the stock taken and the contribution of State aid, is also without any just foundation.
   The main line of the road has already cost about $36,500 per mile, and the stock subscription in the State of Tennessee, amounts to $600,000, and the State aid to 560,500, in all $1,160,500, and making the cost of the forty-five miles in the State of Tennessee upwards of $480,000 more than Tennessee contributed to the road, if we distribute the cost pro rata throughout the whole route. In fact, including the tunnels, bridge over the Cumberland river, right of way and cost of depot grounds, the cost of the forty-five miles in Tennessee is near $10,000 per mile greater than the pro rata cost of the whole road.
   About the 1st of July, General Anderson, of Tennessee, made an order on Mr. Baldwin, the depot agent of the Company at Nashville, that the Company should keep a greater amount of their motive power and rolling stock at the Nashville end of the road, which order was communicated to the Superintendent at Louisville, and by him to the President. There being no provision in the charter to the effect that the Company should be subject to the military orders of Tennessee, the order was not complied with.
   On the 4th of July the up freight train, and the up and down passenger train, was seized by the military of Tennessee, under the orders of General Anderson, and the same day the following telegraphic dispatch was received from Depot Agent Baldwin:
   "J. B. Anderson, Supt.: Mail and passenger trains have been stopped. General Anderson desires me to say that he will exchange trains with you, viz: you to telegraph to me that a passenger train has left Louisville to come through to Nashville; he will start a passenger train from here to go through to Louisville. General Anderson further authorized me to assure you that in the event of your deciding favorably upon my proposition in relation to the locomotives, the passenger trains will be permitted to run without interruption."
   To this the President replied: "No answer could be made; but before the answer could be sent, telegraph No. 2 was received from Mr. Baldwin, to-wit:
   "I received from General Anderson the following communication:
   "'Mr. Baldwin: I desire you to communicate to the President of the Louisville & Nashville Railroad Company the assurance that any locomotive or train that may come down to Nashville from Bowling Green or Louisville, shall be permitted to return unmolested. This arrangement will secure uninterrupted transportation until a satisfactory arrangement is made. The engines and cars now here must be retained.'"
   To this the President replied: That we could have no guarantee that our trains would not be interfered with by others besides General Anderson, who was supposed to be acting under orders.
   On the 5th the telegram No. 3 was received from Mr. Baldwin, under the signature of Governor Harris.
 
Telegram No. 3
Executive Department
July 5, 1861
   J. C. Baldwin: You may assure the President and Directors of the Louisville & Nashville Railroad Company, that whenever they place at this end of the line a fair proportion of the locomotive power and rolling stock of said road, and permit the same to remain here, the running and general management of their road shall not be interfered with until it has been determined what shall be a fair proportion. The locomotives and cars now here shall be used within the limits of the State. Yet, if the President and Directors see proper to send any trains through, with either passengers or freight, in the meantime, there shall be interference with them whatever.
Respectfully,
Isham G. Harris
 
On the 6th the President answered it as follows:
Response to Telegram No. 3
   J. C. Baldwin: You will communicate the following to --
His Excellency, Governor Harris:
   The Company have but 37 locomotives in all for 270 miles of road. Of these we never have less than 10 in the shops undergoing repairs. It requires 6 engines for repairs of road, viz: One for each 45 miles of road, and we have always had one for the repairs on the 45 miles of road in the State of Tennessee, which leaves but 21 for the freight and passenger business. One we have loaned the Edgefield & Kentucky road, which leaves us but 20. 
   We have run into and out of Nashville two daily passenger trains each way, which requires four engines between Nashville and Bowling Green, two of which are always in Tennessee, and when our business requires it, we run into and out of Nashville two daily freight trains between Nashville and Bowling Green, which requires four engines, two of which are always in the State of Tennessee, and when any of these engines require repairs, they are put in the shops and others put in their places. Thus you will perceive we have on the 45 miles in Tennessee 5 engines in actual use, besides the one loaned to the Edgefield & Kentucky Company; and sometimes, when the business requires it, a switching engine at Edgefield.
   We have always kept in Tennessee as many engines as the business required, and it has seldom, if ever, been less than on-sixth of the active motive power the Company possessed, which would never be less than the full proportion of the 45 miles in Tennessee, and generally more. We have operated our Memphis Branch Road through by Clarksville to Tennessee river for the accommodation of that road, and have had two engines every day in Tennessee on that branch.
   We have had for over two months a very active freight and passenger business, and at its close both our locomotive and cars required overhauling, and more than the usual number are now in the shops undergoing and awaiting repairs. We have never failed, to the extent of the capacity of motive power and rolling stock, to do the business that offered, and to give equal facilities to all parts of the road. We are indebted to the State of Tennessee for our chartered rights in that State, and feel assured that we have complied fully with the requirements of the charter. The Company would have furnished the motive poser and cars for any emergency the business offering in Tennessee might require, and would have left such motive power and stock as they could have spared for the immediate use, and were surprised when forcible possession was taken of their trains, and a passenger and a freight train not allowed to come through.
   If you operate the road with the motive power and cars you have seized, it necessarily prevents our operating it, because the independent operation of each would result in the destruction of the machinery used by both. We could not consent to carry passengers and become liable for the consequences. We apprehend we shall have litigation on account of the authorities of Tennessee stopping freight after we have receipted for the same and paid charges for loading it into our cars.
   We might agree to keep a train for use between Nashville and points in Tennessee, and operate it daily on a time not interfering with regular trains, and receive guarantees against future seizures or stoppages, and resume our daily through business with the expectation of receiving compensation for the losses we have already sustained.
   As trustees of the stock and bond holders, we can not consent to the seizure of trains, nor their detention.
James Guthrie
President
 
   The first telegraph from General Anderson was, that he would exchange trains with the Company, the Company first telegraphing him that a train had left, and then he would start a train, and if he decided favorably in regard to locomotives, the passenger trains would be permitted to move without interruption. The second telegraph was General Anderson's assurance that any trains that might come down should be permitted to return, and stating this arrangement will secure an uninterrupted transportation until satisfactory arrangement is made, and cars here must be retained.
   The chartered rights of the Company, as granted by the State, had proved no guarantee of the Company's property in the State, and the intimations of the two telegraphs clearly indicated that General Anderson claimed the right to dictate the operations of the road in the State of Tennessee, and make arrangements for operations as the proprietor of a separate road. The response to the second telegraph brought out the Governor of the State, who was the real actor, and the response was intended to ascertain whether it was really intended to confiscate the road and the Company's property, and to dictate and control its management in Tennessee, and also in Kentucky. 
   Whilst the counties of Davidson and Sumner, in Tennessee, contributed $600,000, and the State of Tennessee contributed her bonds to the amount of $560,500, the stockholders in Kentucky, with the mortgage on the road, have built the road in Kentucky, and contributed not less than $500,000 to the construction of the part in the State of Tennessee, and in addition have equipped the whole road to the extent of $500,000.
   The entire equipment of the Main Stem and branches of the road is as follows: Thirty-seven locomotives; twenty-two passenger cars; nine baggage cars; one hundred and sixty box freight cars, and over one hundred flat cars, mostly used in ballasting and repairs.
   The whole length of the road and branches operated by the Company, including the Bardstown road (seventeen miles,) is tow hundred and eighty-six miles, forty-five miles of which is in Tennessee.
   Governor Harris has not replied to telegraph No. 3, in answer to his of same number.
James Guthrie
President
 
Executive Department
Nashville, Tenn., July 12, 1861
 
Hon. James Guthrie
President
Sir,
   Your favor of the 9th inst., received by General Anderson upon yesterday, has been, with its contents, laid before me. Upon reading it I am somewhat surprised to learn that you await further communication from me. Upon the 5th of July Mr. Baldwin waited upon Mr. Seymour, who handed me your response to General Anderson, to whom I delivered the assurance contained in what you designate as telegram No. 3. Shortly afterwards Mr. Baldwin waited upon me at my office, and read to me a paper writing, which, I have no doubt, is the response as printed, to said telegram No.3; but I did not understand it to be a communication addressed to myself, and when it was read, I but repeated, substantially, my former assurance. Within a day or two thereafter, Mr. Baldwin left the city, as I am informed by General Anderson, with the view of ascertaining and removing all difficulties that might be in the way of a mutually satisfactory adjustment. He has not returned, and I am not acquainted with any steps or suggestions he may have taken. In the absence of any information from him, I must suppose, from your favor to General Anderson, that you await, as stated, further communication from me.
   The position of the State, and the attitude of the Government with which she is now connected, makes the necessity of protection to her citizens and their rights against the probabilities of attack from the Federal Government, a paramount consideration with all her officers, and especially those whose charged duty it is to afford this protection.
   It had been reported to General Anderson that there was a withdrawal of locomotive power and rolling stock upon the part of your road from this end of the line, and to such an extent that, upon the morning the trains were detained, that, with regular running of the trains, there would have been at the hour of 6 1/2 o'clock A. M. but one solitary locomotive of your road within the limits of the State of Tennessee. This being the fact, when that officer looked beyond to the extraordinary movements at Louisville, and the constant apprehension prevailing even in that city, that your road might be occupied by Federal troops, he could not have well done less than he did, and this, too, without questioning the motives or reasons of the Directory of the Board. Supposing the Federal Government, in their hostility to Tennessee, to have had the same knowledge possessed by General Anderson, and their willingness to take advantage of it, he was warranted at least in not trusting to the ability of the Company to provide against the consequences which might reasonably have resulted from such action. I am further informed by him, that his efforts to have with your agent a satisfactory understanding in regard to the proper proportion of rolling stock and locomotive power for this end of the road, failed. As you are aware, and have stated, the State of Tennessee had a heavy pecuniary interest in the road. With pride Tennessee saw it completed, not alone for the pecuniary profit therein, but for the higher consideration of being bound to Kentucky, whose people are felt to be one with us in interest, in affinity, in fortune, and in destiny. Feeling thus, you may appreciate the apprehensions and jealousy of our people at any demonstration that threatened to make what they conceived to be a bond of affection an instrument of their destruction. In view, then, of the fact, the demand of the authorities of the State for such reasonable proportion of rolling stock and locomotive power as would be just and equal to any emergency that the protection and interest of her citizens might require, without injustice to Kentucky, was, and is, submitted to be right and proper, and we are loath to believe that any unfriendly feeling to the State has brought about the present posture of affairs, or exists to prevent an arrangement whereby Kentucky, not being injured, Tennessee will and may be protected.
   I have to repeat to you the assurance heretofore conveyed to you through Mr. Baldwin. If the Company will keep at this end of the road a reasonable and just proportion of rolling stock and locomotive power, I will protect your road, and the interests of your Company against all opposers, with the whole power of the State. Should the State demand from your Company any service, it is not expected it will be done without making such compensation as may be fair and reasonable. She does not seek to confiscate or destroy any right. Her demand of her constituted authorities is, that they shall, at all times, but more particularly now, when threatened with war upon her borders, take such steps as will secure the protection and safety of her citizens. This duty is rightfully expected of me. I shall attempt its discharge, and it does not seem to conflict with yours to your Company. A satisfactory adjustment, therefore, is within your control. I am not so thoroughly conversant with the number of your engines, rolling stock and business, as to be enabled to determine what would be a just proportion of stock, &c., to all parts of the road; but this may be easily ascertained, if you are willing to keep here such proportion as may be absolutely necessary to the safety and convenience of Tennessee.
Respectfully,
Isham G. Harris
 
Office Louisville & Nashville R. R. Co.
Louisville, Ky., July 15, 1861
 
His Excellency, Gov. Harris
Nashville, Tenn.
 
Dear Sir,
   Yours of the 12th inst., in answer to my telegram to you, through Mr. Baldwin, of the 6th, has just been handed me. Your previous communication, through Mr. Baldwin, was the cause of mine of the 6th, which is identical with the one published in my communication to the editors of the Louisville Courier. It was specific in the details of the information furnished, and intended to put you in possession of the facts, and to satisfy you that General Anderson had acted upon a mis-statement of the facts, so far as the action of the Company was concerned, and under the expectation that both he and you would have also learned that the information about the seizure of the road by Federal troops was also incorrect, and that you would at once have ordered a restoration of the road and our engines and rolling stock, which had been seized by General Anderson, it was supposed by your order.
   I could not account for your having left Nashville for West Tennessee without answering my telegram. If you had read the dispatch you would have seen it was addressed to you, and known an answer was expected, and a restoration of the property of the Company sought from your sense of justice and right. I very much regret you left without ascertaining the real contents of the dispatch.
   The same day General Anderson seized the engines and trains, some rails were taken up near the Kentucky line, and trees felled across the track, and a Superintendent appointed by him to take charge of the road and operate it, which was afterwards withdrawn, and Mr. Baldwin appointed to take charge of it under General Anderson. thus Mr. Baldwin became the agent of General Anderson, whose orders he must have obeyed or been dismissed. He did not come to Louisville at the instance of this Company, nor as its agent, and presented no authority from you or General Anderson, and could not have been expected to settle the seizure and its consequences.
   I do not propose to discuss with you whether the seizure by General Anderson would have been justifiable had the facts conformed to the information upon which he acted. The supposed state of facts not having existed, we had a right to expect that you would have directed the property of the Company to be restored, and compensation made for the losses the Company had sustained.
   When Tennessee granted the Charter for that part of the road within her boundaries, and contributed to its construction, both Tennessee and Kentucky were sister States, under the Federal Constitution, and component parts of the United States, and besides were knot together by many acts of mutual courtesy and hospitality, and when the road was constricted, no doubt it was hoped by the inhabitants of both States, that it would tend to unite their commercial interests, and bind the people together in lasting friendship. The people of Kentucky expected the charter granted by Tennessee would be held as sacred as the charter granted by Kentucky, and would equally secure the rights of all interested in its stock, and the trade it was expected to promote, and will be greatly disappointed should the result be different, now that Tennessee has made a new alliance, and has armed men on her borders, and prepared herself for war, which Kentucky has not.
   We think General Anderson was vested with no power to control the management of the Louisville & Nashville Railroad, and had no right to determine and direct what amount of motive power and rolling stock should be kept in Tennessee. We know we had always kept in the State what was necessary for the business, and that we are ready to furnish whatever should be required for the business, and that if General Anderson thought Tennessee would require more than the business of the Company made necessary, that it was a matter of arrangement with the President and Directors, and of compensation for extraordinary service, ant that a mandate to a subordinate was not the right way to approach a friendly corporation, acting for the citizens and stockholders of both States.
   The action has been fatal to the interests of the stockholders of both States, and to the trade of the citizens, and may tend to weaken the kind feeling that has hitherto existed. There has been no hostile feeling in the management of the road to the citizens or interests of Tennessee, and no foundation to the unfriendly feeling your Excellency seems so loath to believe. Tennessee has always had a just proportion of the motive power and rolling stock, and it is submitted the constituted authorities of Tennessee have no just cause of complaint; and as you assure me there is no wish to confiscate the property, or destroy the rights of the Company, we desire you to restore the road, motive power and rolling stock, and make compensation for the losses we have sustained and make known the additional motive power and rolling stock Tennessee wants and agree upon what shall be paid for it.
   We can not operate the road in connection with General Anderson, or any one else, because it could not be done without endangering the machinery and rolling stock, and endanger the lives of passengers and the safety of property entrusted to our care.
Very respectfully,
James Guthrie
President
 
Executive Department
Nashville, Tenn., July 20, 1861
 
Hon. James Gutherie
Louisville, Ky.
 
Sir,
   Your communication to His Excellency, Governor Harris, is received. He left for Memphis this evening, and will reply so soon as he returns.
Very respectfully,
Nath. H. Burt
Private Secretary
 
Office Sup't. Machinery & Road Dep't. L. & N. R. R.
Louisville, Ky., October 5, 1861
 
Hon. James Guthrie
President L. & N. R. R. Co.
 
Sir,
   The following is a statement of the value of the movable property of the Company seized on the 4th of July, 1861, by the authorities of the State of Tennessee:
Five Locomotives $42,990.00
Three Passenger and Baggage Cars 7,328.97
Forty-nine Box Cars, fourteen Flats, one Rack and three Caboose Cars 37,133.42
Three Boarding Cars 1,000.00
Material on hand at Edgefield shops 1,191.72
Tools on hand at Edgefield 489.32
Road Tools and Material on Tennessee Division 4,261.51
Cross Ties, 1,889, at 30c 566.70
Wood, 6,669 cords, at $2.00 13,338.00
Five thousand six hundred and fifty years of Stone, at 35c 1,977.50
     Total $110,277.14
Albert Fink
Sup't. Machinery and Road Dep't.
 
Statement showing cost of Road in State of Tennessee, to July 1, 1861
For Lands for Road and Stations $41,101.65
       Depot Grounds 56,897.00
       Graduation and Culvert Masonry 644,103.94
       Bridge Masonry 39,163.74
       Bridge Superstructure 14,113.99
       Railway Super. -- Rails, Chairs, Spikes $292,644.07
                                     Cross Ties 52,267.00
                                     Track Laying 19,365.00
                                      Ballast 46,472.99 $410,749.06
       Engine House and Stations 13,655.37
       Water Stations 2,221.56
       Depot Buildings at Nashville 19,477.07
       Cumberland River Bridge 112,546.27
       Fencing 2,520.10
       Telegraph 928.44
       Engineering Expenses 55,478.43
       Office              " $15,707.70
       Contingent       " 5,129.75
       Legal               " 3,216.36
       Agency            " 3,731.66 $27,785.47
       Discount on County and State Bonds 170,715.67
       Interest Stock Liability on Sumner and Davidson County Bonds 227,927.50
$1,839,385.26
Sumner and Davidson County each contributed $300,000 in County Bonds to the capital of the Company, say $600,000
The State of Tennessee loaned her Bonds to the Company to iron the Road in Tennessee, for which she has a first lien on the 45 miles in Tennessee 450,000
Also, Acct. Cumberland River Bridge 110,500
$1,160,500
Willis Ranney
Secretary

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