EVANSVILLE HENDERSON & NASHVILLE RAILROAD
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Nashville Division 1874
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The St. Louis and South-Eastern Railway Company (consolidated), as operated in the States of Kentucky and Tennessee, is the Evansville, Henderson and Nashville Railroad Company. It was incorporated by special act of the Kentucky Legislature, January 27, 1867, and was authorized to build a road from Henderson to the Tennessee State line in direction of Nashville, to purchase railroad and franchises from any railroad company necessary for running and operating its road jointly with any other road, to receive franchises from the State of Indiana to connect with Evansville, and to contract with companies, or the Slate of Tennessee, to purchase, run, or operate any .railroad in Tennessee, to bridge the Ohio River at Henderson, or to run ferry-boats. In 1858 an amendment was made to this charter by the Kentucky Legislature conferring upon the Evansville, Henderson and Nashville Railroad Company all the franchises, rights, and property of the Henderson and Nashville Railroad Company, incorporated under the act of 1851 and the amendments thereto; and among the powers thus conferred was that of consolidation. The capital stock was fixed at 4,000,000, of which one-half might be preferred, and the company was empowered to issue 2,000,000 mortgage bonds, and to receive subscriptions to its stock or.bonds from the various towns or counties through which the road might be located. Under this charter the road was built from Guthrie to Hopkinsville and from Henderson to Madisonville, but the company became embarrassed-in its operations, and being unable on its own responsibility to complete the remaining link in the line between Madisonville and Hopkinsville, contracted with a person called Hanson for building that portion of the road, equipping the railroad, and liquidating all outstanding obligations. In consideration of the faithful performance of this contract the Evansville, Henderson and Nashville Railroad Company agreed to turn over to the contractor (1) 800,000 first mortgage bonds and 100,000 bonds of the city of Evansville; (2) 1,000,000 preferred stock; (3) a lease of the whole railroad until Januaiy 1, 1877. It was further covenanted (4) that for all payments of indebtedness above 100,000, and for all payments made for right of way, that the contractor should receive " per cent, preferred stock at 50 cents on the dollar; (5) that at expiration of the lease payment should be made to the contractor for the value of all equipment over and above 200,000; and (6) that he should nominate at each annual meeting a majority of the directors, and for that purpose, if necessary, should hold enough common stock (on which dividends should be deferred) to control a majority vote. This contract as made with Hansen was subsequently assigned to the American Contract Company, by whom the road was built and opened for through traffic in 1872. The unexpired term of the lease included in the contract assigned to the American Contract Company was assumed in June, 1872, by Winslow and Wilson, who subsequently transferred the same to the St. Louis and South-Eastern Railway Company of Illinois and Indiana, and on October 1 articles of consolidation were agreed on whereby the whole road between Henderson and Nashville came under one management. The Edgefield and Kentucky Railroad Company was incorporated by special act of the Tennessee Legislature, passed February 13, 1852, and by it the company was granted all the powers and privileges, and was subjected to similar restrictions to those enumerated in the act of 1845 incorporating the Nashville and Chattanooga Railroad'Company. Authority was given to construct a road from Nashville on the, north side of the Cumberland River to the Kentucky State line, and at that point to connect with any other company empowered by the Legislature of Kentucky to build a railroad from Henderson in the direction 1 f Nashville. The capital stock was originally fixed at 300,000, in shares of $25 each, but the privilege was given of increasing it to double that amount. This act was amended in November, 1853, so as to authorize an issue of stock not exceeding in the aggregate $1,200,000, and a further amendment, as of December, 1855, legalized a further issue of $800,000, making the entire capital stock $2,000,000. In the same year (1855) the Edgefield and Kentucky Railroad Company was authorized 10 unite with the Louisville and Nashville Railroad Company in the construction of a bridge over the Cumberland River at Nashville, and also to build a common track from Nashville to a point not more than 10 miles distant from that city. To aid in the construction of this bridge, the State of Tennessee loaned the Edgefield and Kentucky Railroad Company $100,000 in State bonds. The provisions of the "internal improvement act" were also made applicable by the same legislature to the Edgefield and Kentucky Railroad Company, and it became entitled to receive, whenever 30 miles had been graded, bridged, and made ready on the iron, and when the governor had been satisfied that bona tide subscriptions had been made to the stock sufficient for grading the whole line within the State, $8000 per mile in State bonds. Said bonds were to be used in the purchase of iron, spikes, etc., and were to constitute a primary lien upon the road and all its property. In granting this aid, it was provide 1 by the legislature that the semi-annual interest upon the State bonds should be regularly paid by the company, and that in case of failure to pay the interest for two successive years, the road, with all its franchises and property, might be sold by State commissioners, and the proceeds applied towards reimbursing the State against any loss. The road from Nashville to Guthrie was built under this charter and its various amendments, but in consequence of the war breaking out soon after its completion, and a prostration of business incident thereto, the company were unable to meet their engagements with the State, and the road became so dilapidated that the aid of the legislature was again invoked; and an act was passed December, 1867, authorizing the issue to the Edgefield and Kentucky Railroad Company of $300,000 in State bonds, said bonds to be applied to the construction of a new depot at Nashville, and to an extension of the road to the coal mines, under the charter of the Evansville, Henderson and Nashville Railroad Company. In making this additional loan, it was provided that the Evansville, Henderson and Nashville Railroad Company should execute their bond and obligations to the State of Tennessee, binding said company to pay the principal and interest of the amount of bonds used in construction of said Evansville, Henderson and Nashville Railroad, and also issue to the State stock of the company equivalent in amount to the bonds used in constructing such extension. It was also provided in the same act that if any railroad company to whom the bonds of the State had been loaned by that or former acts should fail for two consecutive years to pay the interest that might accrue upon the bonds, then and in that case the governor, secretary, and comptroller might, at their discretion, sell said railroad tracks, railing, rolling stock, etc., upon such terms and conditions as they might deem best to secure the interest of the State, and should retain out of the proceeds of said sale the amount loaned originally, plus the deferred interest and expenses of the sale. It appears that the Edgefield and Kentucky Railroad Company were unable during 1868 and 1869 to pay the interest upon the State bonds; and in July, 1870, an act was passed appointing the governor, secretary of state, comptroller, and three other gentlemen commissioners to sell the interest of the State of Tennessee in all defaulting railroads, and authorizing them to accept in satisfaction of any bid at such sale bonds of the State equal in amount to those which had been originally loaned in aid of the defaulting railroad, with accrued interest. It was provided also, that in case the commissioners were unable to effect a sale upon these terms, and thereby protect the State from any loss, then they might receive bids for thirty (30) days, submitting them to the General Assembly, with such recommendations as to them might seem best for the interest of the State, for the approval or rejection of the General Assembly. It was stipulated also, that in any case preference should be given to purchaser or purchasers who would obligate themselves to operate the road so purchased over its entire length from terminus to terminus. Some legal questions appear to have arisen as to the correct interpretation of this act, and in December, 1870, an additional act was passed defining clearly the manner in which a settlement could be made between the State, the delinquent companies, bondholders, and other creditors. It was provided that the chancery court at Nashville should have exclusive jurisdiction to hear, adjudicate, and determine all questions of law and matters of controversy of whatever nature, whether of law or of fact, which might arise touching the rights and interest of either party to the suit; also that all rules, orders, and decrees should be deemed final. The same court was to declare the exact amount of indebtedness of the delinquent railroad to the State, and, further, define what were the duties and liabilities of a purchaser of the State's interest, and what should be the reserved rights of said company, stockholder, or other creditor as against such purchaser under the existing laws of the State. Either party was allowed an appeal from the decision of the court of chancery on a writ of error, and the judges of the Supreme Court were requested to take up and finally dispose of the case in pre erence to all other cases then on the docket, and if not in session, to appoint a special term for the hearing of the same. It was further enacted that the interest of the State might be sold on time, and that the amount agreed to be paid by the purchasers might be discharged in any of the outstanding legal bonds of the State, but in the event of such sale on time it was provided that one-fourth should be paid at once in State bonds, and the remainder in three equal annual installments of State bonds, the purchasers giving at the time of sale a bond with approved security for the faithful performance of their obligations, and paying into the State treasury a sum equivalent to the annual interest upon the remaining three-fourths of the bonds to be thereafter delivered. Failure to pay any installment as it became due would work forfeiture to the State of any payment previously made, and the purchaser's interest would be resold by the State to cover any deficiency. The court of chancery decreed that State commissioners should sell the road, and, acting under orders from the court, should invest any purchaser said purchaser having paid the minimum price fixed by the court with all the franchises and privileges of the railroad company, subject to the State lien. A sale of the Edgefield and Kentucky Railroad, with its stock, right of way, and other franchises, was ordered by the court in June, 1871. The minimum price for purchase was fixed at $900,000 in State bonds, with coupons as of January, 1871. The Edgefield and Kentucky Railroad Company, in their corporate capacity, had the option of purchasing any time within sixty days; but if they failed to avail themselves of this option, it was provided that any number of stockholders, including Davidson County, might form themselves into an association, and might have for thirty days thereafter the right and privilege to purchase the property. In making this arrangement the State assumed to pay debts due from the Edgefield and Kentucky Railroad Company to the United States government and others; also to convey to the1 purchaser its claim against the Evansville, Henderson and Nashville Railroad Company for 200,000, above alluded to. The stockholders of the Edgefield and Kentucky Railroad Company declined to purchase under this decree, and relinquished their rights to any association which should lie formed for purchase, conditioned that, in the formation of such new organization, each stockholder in the old company should have the right to take stock in the new organization in proportion to his or its stock in the old organization. Certain stockholders, including the county of Davidson, pursuant to the decree of the court, became purchasers in August, 1871, filed the requisite bond as security for the deferred payments in the sum of 1,000,000, and subsequently, in April, 1872, obtained an order from the court of chancery, at Nashville, changing the corporate title of the corporation to Nashville, Chicago and St. Louis Railroad Company. By the same order it was declared lawful for the new company to mortgage its property and consolidate its franchises with those of any other company with which it might connect, either directly or by means of intervening lines, on such terms and conditions as might be agreed upon between the consolidating companies, or to sell or lease its road and property to any such company, whether the same were within the limits of the State of Tennessee or created by or existing under the law of any other State or States. It may be appropriately noted here that in December, 1871, the General Assembly of Tennessee, being desirous of enabling railroad companies to pay their indebtedness -to the State, and complete the construction of their roads, passed an act empowering such railroad companies to mortgage their original property, as well as property acquired by purchase from the State, for the purpose of issuing consolidated first mortgage bonds, the proceeds of such consolidated issue to be applied, first, to satisfaction of the State indebtedness, and secondly, to the construction, improvement, and repair of the railroad, or in liquidation of any other liability that might be deemed advisable by the company It was provided that in issuing such new bonds an amount of consolidated mortgage bonds, equivalent to the State indebtedness, should be deposited with the State treasurer, or his agent in New York City, as security, and that upon substitution of Tennessee State bonds for such consolidated mortgage bonds, the latter should be returned and no longer held as security, while the former should be duly canceled. It was further enacted that such new issue of consolidated mortgage bonds should in no case exceed $20,000 per mile. In accordance with this and previous acts above mentioned, and the new charter and amendment granted by the chancery court, the Edgefield and Kentucky Railroad Company, under its new corporate title of Nashville, Chicago and St. Louis Railroad Company, was consolidated with the lines absorbed by the St. Louis and SouthEastern Railway Company, and the consolidated mortgage authorized by the Legislature of Tennessee has been made, and the bonds secured thereby placed on the market. The third company merged in the St Louis & South Eastern Railway consolidation of Kentucky and Tennessee Railroads was incorporated by special act of the Kentucky Legislature in February, 1870. The original corporate title of this company was the Madisonville and Shawneetown Straight-Line Railroad Company, but this charter was subsequently amended in the session of 1872, and authority was given to change the corporate title to St. Louis and South-Eastern Railway Company (Kentucky Division). Under its charter this company is authorized to build a railroad from Madisonville to the Ohio River, opposite Shawneetown, with a branch to Caseyville, or the main line to a point opposite Shawneetown via Caseyville. The capital stock was fixed at $1,000,000, but authority was given to increase to $2,000,000, or to an amount equal to the whole cost of railroad and equipment. Authority was also given by the act to purchase any other railroad in any other State, or with the consent of a majority of the stockholders, to consolidate with any other railroad company. It was further enacted that the company might issue $2,000,000 convertible bonds, secured by mortgage upon the property and its franchises, and bearing 8 per cent, interest, payable semi-annually. The franchises of this company were merged in the consolidation of the St. Louis and South-Eastern Railway Company, and work on this uncompleted division is now being pushed forward rapidly with the view of securing the shortest available route for traffic between St. Louis and south-eastern cities, and obviating the present transfer by ferry-boat from Henderson to Evansville. The length of this new line will be about 52 miles, including the Caseyville Branch. It may be noted here that the capital stock of the St Louis and South Eastern Railway Company (consolidated), as authorized by the various charters and articles of consolidation, is $16,000,000, of which $10,000,000 is common and $6,000,000 preferred stock. There are also outstanding first mortgage bonds of the St. Louis and South-Eastern Railway Company of Illinois and Indiana to the amount of $3,250,000, bearing 7 per cent, gold interest, and redeemable on November 1st 1896, and $1,000,000 of the Evansville, Henderson and Nashville issue, bearing 7 per cent, interest in currency, and redeemable in 1890. It is proposed to retire these bonds with the new issue of first consolidated mortgage bonds, which will amount to $8,820,000, bearing 7 per cent, gold interest, and maturing in 1902. This new issue is at the rate of $21,000 per mile on each mile of track.
Length Of Road, as built and in process of construction in the States of Kentucky and Tennessee, 198 miles, of which 48 miles are situated in Tennessee and 150 miles in Kentucky.
Connections. At Henderson, with steam ferry to Evansville; at Madisonville, with Kentucky Division; at Nortonville, with Elizabethtown and Paducah Railroad; at Guthrie, with Louisville and Nashville and Great Southern Railroad (Memphis Division); at Edgefield function, with Louisville and Nashville and Great Southern Railroad (main stem); at Nashville, with Nashville and Chattanooga, Nashville and Decatur, and Nashville and North-Western Railroads.
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