History of Alabama and dictionary of Alabama biography, Volume I, Part 98

Author: Owen, Thomas McAdory, 1866-1920; Owen, Marie (Bankhead) Mrs. 1869-
Publication date: 1921
Publisher: Chicago, The S. J. Clarke publishing company
Number of Pages: 756

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In 1866, steps were taken to rehabilitate the road and to carry out the plans formu- lated by its ante bellum promoters, and an act was obtained from the legislature validat- ing the consolidation of the Alabama & Ten- nessee River Railroad Co. with the Dalton & Jacksonville Railroad Co., of the State of Georgia, so as to form a new corporation known as the Selma, Rome & Dalton Railroad Co., which should be governed by the charter of the Alabama & Tennessee River Railroad Co., for the purpose of constructing and 'operating a railroad from Blue Mountain to Dalton, Ga., by way of Rome, as an exten- sion of the old Alabama & Tennessee River Railroad.

The history of the Alabama & Tennessee River Railroad Co. from the close of the War to its consolidation with the Selma, Rome & Dalton, is thus sketched by Hardy, pages 109- 110: "In 1867, a contract was made with Mr. A. D. Breed, of Cincinnati, to complete the road through to Dalton, Ga., and the Alabama and Tennessee River Railroad, and two corporations in Georgia, were merged into the Selma, Rome and Dalton Railroad. Capt. E. G. Barney, the agent for the lessee, was made general manager of the road, and under his management it was finished to Dal- ton, in 1869. . F. A. Delano, of New York, succeeded General Joseph E. Johnston, as President, and Hon. John Tucker, of Phila- delphia, succeeded him in 1870. He contin- ued President until the spring of 1873, when the road was thrown into the Chancery Court.

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HISTORY OF ALABAMA

Up to this time Capt. Barney continued Gen- eral Superintendent, and Mr. M. Stanton, Assistant Superintendent. Hon. Thos. A. Walker was made Receiver, and a short time after Hon. John Tucker was associated with him. Judge Walker continued as Receiver until two years ago, when he resigned, and Mr. Tucker has continued since that time. Mr. John B. Peck was Superintendent under Receivers until August, 1874, when Mr. M. Stanton was appointed, and held the office until his death, February 21st, 1879. Mr. Norman Webb has since been appointed.

"As previously stated, the first locomotive put upon this road was on the 10th day of May, 1851, called the 'Alabama,' and on its first trial, for ahout four miles, the loco- motive, tender and a flat car were decked with ladies, of the city, the engineer being Harry Van Pelt, and conducted by John Hodges. This locomotive was of thirty tons power, and of Norris, Philadelphia, build. The second was the 'Tennessee,' received in 1852, from the Globe Works, in Boston. In 1853, the 'Coosa,' and in 1856, the 'Walker Reynolds,' and 'Shelby,' were put upon the road. Wm. Waddill & Co. were the principal contractors to Dixie, and J. C. Riddle & Co. from thence to Montevallo. In 1852, the present immense shops of the company were commenced in the city, and have gradually increased in capacity since. The first engine put in the shops in 1852, runs the machinery of the shop in 1879, which proves that these works have been in good hands."

On March 1, 1870, an act was passed to ratify and confirm a contract dated September 15, 1869, between F. H. Delano, president of the Selma, Rome & Dalton Railroad Co., and John Everitt, of England, Wm. H. Forney, James Crook, Peyton Rowan and Thomas A. Walker, of Alabama, for the sale of the Ala- bama & Tennessee River Railroad's fran- chise, right-of-way, roadbed, etc., between Jacksonville and the east bank of the Coosa River at Gadsden. On June 14, 1881, the Selma, Rome & Dalton Railroad was sold to the East Tennessee, Virginia & Georgia Rail- road Co. for $2,200,000, equal to 40 per cent of its outstanding first-mortgage bonds.

Alabama and Georgia Railroad .- The next oldest Alabama corporation which became a part of the East Tennessee, Virginia & Georgia Railway Co. was the Alabama & Georgia Railroad Co., organized in Alabama by the legislature, January 19, 1850, with Miles W. Abernathy, Daniel Bush, Benjamin C. Wiley, Elisha Simmons, James Crow, Wil- liam Scott, H. H. Allen, George L. Alexander, William L. Terry and Seaborn J. Whatley as incorporators, for the purpose of building a railroad from Jacksonville, Benton (now Calhoun) County, to the Georgia line, to con- nect with a road projected from Rome, Ga., to the Alabama line, to be built by a company organized under the laws of Georgia. The Alabama company's authorized capital stock was $400,000 in $25 shares, which might be increased to $500,000 when necessary.

Selma, Rome and Dalton Railroad .- This charter was really nothing more than the

means of empowering the Georgia company to build a portion of their road in Alabama. Nothing was done, however, within the five years limit, and on February 24, 1860, an act'was passed to revive the charter with George C. Whatley, Miles W. Abernathy, James F. Grant, William Scott, Neal Fergu- son, John R. Graham and Walter Bellingslew as president and directors, and under the new corporate name of the Jacksonville, Rome & Dalton Railroad Co., for the purpose of con- structing a railroad on the line located by the Alabama & Georgia Railroad Co. It was stipulated that at least three directors of the new company should reside in Alabama. Sec- tion 9 of the act provided for the consolida- tion of the Alabama & Georgia Railroad Co., of Georgia, and the Alabama & East Tennes- see Railroad Co., of Alabama, under the style of the Dalton & Jacksonville Railroad Co.

This company was later merged with the Georgia & Alabama Railroad Co. to form the Selma, Rome & Dalton Railroad Co., which, in turn, was absorbed by the East Tennessee, Virginia & Georgia Railroad Co.

Alabama and Mississippi Rivers Railroad. -The next company, in point of age, which was merged into the East Tennessee, Virginia & Georgia Railway Co., was the Alabama and Mississippi Rivers Railroad Co., organized by authority of the legislature, February 7, 1850, to build a railroad from a point near Cahawba to a point near Uniontown. The in- corporators were Richard C. Crocheron, James D. Craig and Allison Saltmarsh, of Cahawba; Joseph R. John, J. Price and Rich- ard H. Adams, of Uniontown; E. D. King and William A. Jones, of Marion; its authorized capital stock, $1,000,000 in $100 shares.

The main purpose of the organization of this company was to comply with the pro- visions of the act of Congress, September 4, 1841, vesting the two per cent and three per cent funds in the State, in trust, for the construction of a railroad as described in the act. The charter was amended on February 4, 1852, so as to permit the terminus to be changed from Cahawba to Selma; the exten- sion of the road to the Mississippi line; and to authorize the directors to horrow money for the company.

An act to lend $100,000 of the two per cent fund to the company was passed Febru- ary 9, 1852, conditioned upon the completion of 30 miles of grading, and the execution of a bond. This act was amended on February 16, 1854, so as to entitle the company to re- ceive the amount of the loan when it should have constructed and put in running order as much as 14 miles, or one-half of the road between Selma and Uniontown.

An investigation was ordered by act of February 21, 1860, as to the use made of the proceeds of bonds issued by the company for the purpose of buying rails. On February 25, an act was approved which authorized the loan to this company of its prorata share of the two per cent fund, amounting to $9,- 477.47 and the accrued interest.

On December 5, 1861, an act was passed to transfer the loan, theretofore authorized

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HISTORY OF ALABAMA

to the Selma & Gulf Railroad Co., and with its consent, to the Alabama & Mississippi Riv- ers Railroad Co. upon condition that the money should be used only for the purchase and laying of rail, and that the State should be secured in the loan by ample bond.

The legislature, November 29, 1864, changed the name of the company to the Selma & Meridian Railroad Co., and raised its authorized capital stock to $2,000,000. This amendment of the charter was supple- mented by an act of January 16, 1866, con- ferring power upon the board of directors to put the additional authorized shares upon the market, and authorizing executors, adminis- trators, or guardians to subscribe for such stock out of trust funds.

This road suffered like all others from the devastation of the War. It lost its shops and depots at Selma and Meridian, and its bridges over Cahaba River and Valley Creek. Practically all of its assets at the close of the War were in Confederate bonds and currency, and the company found itself virtually bank- rupt. It was' reorganized and efforts made to rehabilitate the property under the lead- ership of Gen. W. J. Hardee, who was elected president. In 1869 the bonds of the com- pany fell due, and being unable to pay them, the affairs of the corporation were put in charge of Sam Tate as receiver. Mr. Tate continued in charge until 1870, and was suc- ceeded by John Hardy. In 1872 it was sold by order of the United States Court, and bought in by Col. James Robb, of New York, for the bondholders, for about one and a half million dollars. The purchasers reorganized under the name of the Alabama Central Rail- road Co. It was transferred to the East Ten- nessee, Virginia & Georgia Railroad Co. in 1882, in consideration of the purchase by that company of a majority of its stock and all its bonds.

Alabama and East Tennessee Railroad .- The Alabama & East Tennessee Railroad Co. was chartered by the legislature, February 20, 1854, to build a road from Jacksonville, on the Alabama & Tennessee River Railroad, to the Georgia line in the direction of Cleve- land, Tenn. Its incorporators were Edward L. Woodward, Benjamin C. Wiley, Dr. Court- ney J. Clark, William B. Martin, Daniel D. Draper, of Benton (now Calhoun) County; John M. Hendrix, Benjamin Yancey and F. M. Hardwick, of Cherokee. Its authorized cap- ital stock was $1,000,000 in $25 shares. The charter was amended on February 7, 1856, to extend the time for beginning construction to four years.

This company was consolidated with the Alabama & Georgia Railroad Co., of Georgia, on February 24, 1860, to form the Dalton & Jacksonville Railroad Co.

Selma, Marion and Memphis Railroad; Changes of Name; and Early Railroad Efforts in West Alabama .- The Selma, Marion & Memphis Railroad Co., which was eventually absorbed by the East Tennessee, Virginia & Georgia Railway Co., was the outgrowth and enlargement of several earlier efforts at rail- road building between Selma, Ala., and Merid-

ian, Miss. The company was originally char- tered as the Marion & Alabama River Trans- portation Co., for the purpose of building a plank road, or railroad, from Marion to the Alabama River. Its incorporators were E. B. King, William A. Jones, William N. Wyatt, John Lockhart, Jesse B. Nave, Isham W. Gar- rott, William Hendricks, Andrew B. Moore, and Woodson Cocke. By an act of February 2, 1854, the name was changed to the Marion Railroad Co., and the powers of the company restricted to the construction of a railroad.

These organizations, however, did not rep- resent the earliest attempts at railroad build- ing in that territory. Companies under differ- ent names were chartered between 1834 and 1840, to construct railroads on various por- tions of the route, as follows: the Cahawba & Marion Railroad Co., January 18, 1834; the Demopolis & Woodville Rail Road Co., January 9, 1836; and the Greensborough & Marion Rail Road Co., February 1, 1839. Some grading was done at different points, but little was accomplished and the enter- prises were all abandoned, although the or- ganization of the Cahawba & Marion Railroad Co. was maintained for six years.

On February 17, 1854, the charter of the Marion Railroad Co. was amended to author- ize the increase of the capital stock to $1,000,- 000, and the extension of the road from Ma- rion to an interesction with the Northeastern & Southwestern Railroad. In 1855 the por- tion of the line between Marion Junction and Cahaba was dismantled and the rails sold to the Alabama & Mississippi Rivers Railroad Co.

A further amendment of the charter, Feb- ruary 6, 1858, authorized an extension from Cahaba to a junction with the Mobile & Girard Railroad, and extended the time for completion of the road until two years after its passage; it also changed the name of the company to the Marion & Cahaba Railroad Co.

On February 2, 1860, the name of the com- pany was again changed to the Cahaba, Marion & Greensboro Railroad Co. On the 24th, its charter was again amended so as to change the time of the annual meeting of the stockholders to the second Monday in March; to authorize the construction of a bridge over the Alabama River near Cahaba; to extend the road from Cahaba to Montgomery; to in- crease its capital stock to $2,000,000.

During the War the iron belonging to this road was impressed by the Confederate Gov- ernment to be used in completing the Ala- bama & Mississippi Rivers Railroad between Selma and Meridian, which had been seized for military purposes. In 1866 Gen. For- rest became president of the company and continued in that capacity until his death. The company shared in the State's endorse- ment of railroad bonds and, largely with the means thus obtained, completed the road to Greensboro.

On December 31, 1868, the capital stock of the company was increased by law to $4,000,- 000 and the name of the company changed to the Selma, Marion & Memphis Railroad Co.,

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HISTORY OF ALABAMA

and the project enlarged to contemplate the extension of the road to Memphis.

The bonds of the new company were en- dorsed by Gov. Smith to the extent of $720,- 000, equivalent to $18,000 per mile while the law authorized only $16,000. In his message to the legislature, December 5, 1870, the gov- ernor stated that he had endorsed bonds on 40 miles, equal to $640,000. In 1873, the road and all its property was valued at $738,400, only $18,400 more than the amount received from the State. On March 22, 1873, the charter was again amended so as to increase the capital stock of the Selma, Marion & Memphis Railroad Co. to $6,000,000, and to confirm the reorganization of the company.

In 1872 the company did not pay the inter- est on its bonds, and continued to default until 1876. In May of that year the chancery court appointed A. M. Fowlkes, of Marion, receiver. In the meantime, Gen. Forrest made strenuous efforts to liquidate the claims of contractors for work on the road, at the sacrifice finally of most of his personal for- tune. He was succeeded as president of the company by Porter King.

The road was sold under foreclosure July 8, 1878, and was purchased by the bond- holders, who reorganized on October 1 under the title of the Selma & Greensboro Railroad Co. Dr. A. W. Jones of Selma was elected president of the reorganized company.

On December 12, 1881, the company was again reorganized, through the aid of New York capitalists, and its name changed to the Cincinnati, Selma & Mobile Railroad Co. Fred Wolffe of New York was made president. The new company leased the track of the New Orleans & Selma Railroad from Elizabeth to Selma, 10 miles, and completed an exten- sion from Greensboro to Akron, 17 miles, August 25, 1882. On April 1, 1889, the priv- ilege of using the track of the New Orleans & Selma between Elizabeth and Selma was with- drawn from this company by the East Ten- nessee, Virginia & Georgia Railroad Co., which had acquired the former road. The Cincinnati, Selma & Mobile Railroad was pur- chased by the East Tennessee, Virginia & Georgia Railway Co., May 1, 1890.

Georgia and Alabama Railroad .- The Georgia & Alabama Railroad Co. was char- tered by the legislature, February 24, 1860, to build a railroad from the Georgia-Alabama line to Gadsden, and a branch from the main line to Jacksonville. Its incorporators were John T. Stuart, James Montgomery, William W. Little, William S. Acre, Earley Lockey, John W. Ramsey, Adam B. McClung and P. G. Cobb, of Cherokee; J. G. Whatley, William Scott, E. L. Woodward and James F. Grant, of Calhoun County; authorized capital stock, $100,000; and twenty miles to be under con- struction within three years. On February 8, 1867, an act was passed approving the consolidation of this company with the Dal- ton & Jacksonville Railroad Co. to form the Selma, Rome & Dalton Railroad Co., which was later purchased by the East Tennessee, Virginia & Georgia Railroad Co.

Mobile and Alabama Grand Trunk Rail-

road .- The legislature, February 23, 1866, chartered the Mobile & Alabama Grand Trunk Railroad Co., to build a railroad from Mobile northwardly, with branches to con- nect with the Alabama & Mississippi Rivers Railroad, the Northeast & Southwest Rail- road, the Alabama & Tennessee River Rail- road, and the South & North Alabama Rail- road, "and with any other roads which are now or may hereafter be constructed in the State of Alabama." The incorporators were Charles Walsh, W. B. Hamilton, C. W. Gaz- zam, C. C. Huckabee, W. B. Modawell, T. R. Jones, John G. Coleman, Felix Adams, Henry W. Hatch, Dr. E. H. Moren, J. N. Smith, Isom Kimball, Alex. Carleton, John Y. Kilpat- rick, W. H. Tayloe, A. B. Moore, J. R. John, Charles P. Gay, F. B. Clarke and Lewis Troost; capital stock, $3,000,000; and five years allowed in which to commence work. Up to 1872 the company had completed only 60 of the 270 miles projected, and its assets consisted almost wholly of county and city subscriptions and State-endorsed bonds, the latter amounting to $800,000 on a road which was valued at $704,225. On January 17, 1870, an act was passed to confirm the action of the municipal authorities of Mobile in con- tracting to deliver to the railroad company $1,500,000 of city bonds to be endorsed and the proceeds used by the railroad company.

On July 1, 1874, default was made in in- terest payments on its funded debt, and for several years thereafter the road was not operated. On May 7, 1883, it was sold under foreclosure and purchased by the bondhold- ers for $350,000. A new company was or- ganized on March 28, 1885, under the name of the Mobile & West Alabama Railroad Co., for the purpose of purchasing the property of the defunct road from the bondholders and making it a part of a line projected by its promoters.

Mobile and Western Railroad .- The Mobile & Western Railroad Co. was chartered by the legislature, also on February 23, 1866, and, apparently, with the same objects as the Mo- bile & Alabama Grand Trunk. Its incorpora- tors were N. H. Browne, W. A. Dawson, E. Jones, J. C. Dawson and Lewis Troost, who were authorized to construct a railroad from Mobile to the western boundary of the State in the direction of Baton Rouge, La .; capital stock, $1,000,000.

There is no record of this company having accomplished anything towards construction of its road, nor does it appear to have had a financial history until March 28, 1885, when a new company was organized with a similar name, i. e., the Mobile & West Alabama Rail- road Co., which purchased the Mobile & Ala- bama Grand Trunk Railroad, rebuilt it and made it a part of its line from Mobile to Selma, 150 miles. The name of the company was changed to the Mobile & Birmingham ' Railway Co., January 27, 1887, and in March a majority of its stock was purchased by the East Tennessee, Virginia & Georgia Railway Co., which made it a part of its system.

A Consolidated System .- The beginning in Alabama of the East Tennessee, Virginia &

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HISTORY OF ALABAMA

Georgia Railroad Co. (later reorganized as the East Tennesse, Virginia & Georgia Rail- way Co.), dates from a lease of the Memphis & Charleston Railroad (q. v.), for 20 years from July 1, 1877. The Selma, Rome & Dal- ton Railroad, 171 miles in length, was pur- chased at foreclosure sale on June 14, 1881. On November 17, 1882, the stockholders of the Alabama Central Railroad Co. ratified the lately consummated transfer and merger of their road into the East Tennessee, Virginia & Georgia Railroad Co.

The affairs of the company, January 6, 1885, were placed in the hands of Henry Fink, as receiver, by the United States Circuit Court at Knoxville, Tenn., as a result of a default in interest payments. On the 8th, upon application of certain bondholders of the Cincinnati and Georgia division, R. T. Dorsey and Gen. E. P. Alexander were ap- pointed receivers of the road within the State of Georgia. Subsequently R. T. Dorsey was appointed sole receiver in that State, a step that brought extensive litigation. In the meantime, a scheme for the sale of the road and a reorganization of the company was proposed and received the consent of a major- ity of the security holders. It provided for a capital stock of $57,000,000, of which $11,- 000,000 should be first preferred, $18,500,000 second preferred, and $27,500,000 common; the first preferred to be entitled to a non- cumulative dividend of not more than 5 per cent per annum, and to have the right for five years to' elect a majority of directors, unless in the meantime 5 per cent dividends should have been paid thereon for two years; the second preferred to be entitled to a noncumu- lative dividend of not more than 5 per cent after the first preferred; and neither of these two classes to be increased except by the con- current consent of a majority of each of the three classes then outstanding.

In accordance with this scheme, the entire property was sold under foreclosure, May 25, 1886, and purchased for the security holders. On July 1, the company was reorganized as the East Tennessee, Virginia & Georgia Rail- way Co. Soon thereafter, the company pur- chased a majority of the capital stock of the Mobile & Birmingham Railway Co., and, under that company's charter rights, built a line from Selma to Mobile.

On April 29, 1887, the new company's lease of the Memphis & Charleston Railroad was cancelled, the control of that road having been acquired by the purchase of a majority of its stock and a large amount of its securi- ties. The Memphis & Charleston was there- after operated independently and under separate management.

The Cincinnati, Selma & Mobile Railway, from Marion Junction to Akron, 53 miles, was purchased on May 1, 1890, and the Rome & Decatur Railroad, from Rome, Ga., to Attalla, Ala., 61.3 miles, on May 10.

In April, 1890, this company acquired a controlling interest in the Alabama Great Southern Railroad Co. (q. v.) by the purchase of a majority of its capital stock. The Brier-

field, Blocton & Birmingham Railway, ex- tending from Birmingham Junction to Bloc- ton, with a branch to Bessemer, a total of 51 miles, was completed and put in operation by the East Tennessee, Virginia & Georgia in the same year. On September 1, 1891, the company purchased a controlling interest in the Chattanooga Union Railway Co.

On June 24, 1892, Charles H. McGhee and Henry Fink were appointed receivers of this company and its leased lines. Samuel Spencer was appointed coreceiver in July, 1893. In April of that year suits were brought for foreclosure under the improve- ment and equipment mortgage and the gen- eral mortgage, and in February, 1894, a de- cree was entered ordering the sale of the road on July 7.

The Legislature of Virginia granted a charter on February 20, 1894, to the South- ern Railway Co. (q. v.), which was an asso- ciation of capitalists for the purpose of taking over the several roads controlled by the Rich- mond & Danville Railroad Co. The organiza- tion of the company was perfected on June 18, on which date the Richmond & Danville was purchased at foreclosure sale. On July 7, the East Tennessee, Virginia & Georgia Railway Co. was also purchased at fore- closure sale, and its subsequent history is a part of that of the Southern Railway Co.

REFERENCES .- Rallroad Commission of Ala., Annual report, 1889 et seq .; Memorial from R. R. convention at Talladega, Sept. 24, 1849, (1850); Substance of remarks by P. Phillips, Esq., Pres. of the R. R. convention, Talladega, Sept., 1849 (1849); Phillips, Report from the committee on internal improvement (1851) ; Letter of the chief engineer in relation to the Ala. & Tenn. River R. R. (1850) ; Reports of the president, directors, and chief engineer of the Ala. & Tenn. River R. R. Co., at the 2d annual meeting of the stockholders, at Talladega. Nov. 18, 1851 (1851) ; Exhibit of the progress and con- dition of the Ala. & Tenn. River R. R. Co., June, 1852 (1852) ; Report of the president and direct- ors of the Ala. & Tenn. River R. R. to the stock- holders, Selma, July 12, 1854 (1854) ; Report of the president and directors of the Ala. & Tenn. River R. R. Co., to the stockholders, 1856-1857 (1857) ; Report of the president and directors of the Ala. & Tenn. River R. R. Co., to the stock- holders, 1858-1859 (1859) ; Facts and figures illustrative of the value of the Ala. & Miss. R. R., by W. S. B. (1851); Charter and by-laws of the Selma, Marion & Memphis R. R. Co. (1870) ; Poor's manual of railroads, passim ; John Hardy, Selma, (1879), pp. 107-110; Clark, "Railroads and navigation," in Memorial Record of Ala- bama (1893), p. 322; Fleming, Civil War and Reconstruction in Alabama (1905), pp. 156, 260; John Allan Wyeth, M. D., Life of General Nathan Bedford Forrest (1901), pp. 617-619; Independent Monitor, Tuscaloosa, Dec. 13, 1870; Acts, 1848, pp. 265-267; 1849-50, pp. 157-140, 159-169, 342-350; 1851-52, pp. 209-211, 216, 344- 352; 1853-54, pp. 393-395, 412-417, 482, 489; 1855- 56, pp. 12, 297; 1857-58, pp. 29, 160, 312; 1859-60, pp. 35, 65, 206-210, 299-302; 1861, called sess., p. 19; 1861, regular sess., pp. 41, 181-182; 1862,

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History of Alabama and dictionary of Alabama biography, Volume I, Part 98

Author: Owen, Thomas McAdory, 1866-1920; Owen, Marie (Bankhead) Mrs. 1869- Publication date: 1921 Publisher: Chicago, The S. J. Clarke publishing company Number of Pages: 756

Author: Owen, Thomas McAdory, 1866-1920; Owen, Marie (Bankhead) Mrs. 1869-
Publication date: 1921
Publisher: Chicago, The S. J. Clarke publishing company
Number of Pages: 756