Polk_Letter_048_49868

La Grange Feby 13. 1840

Sir,

Enclosed is a transcript of the proceedings of the Directory of the LaGrange and Memphis Rail Road Company relative to the Supplemental act of last session for the purpose of obtaining the sub scription authorised

There is some difference of opinion as to the meaning of the 7th section. Our charter presented Nine Directors, and under the act of 1836. the Governor appointed three, and under that they must be stockholders. If it is meant by the late act that the appointments must be made with reference to the act of 1838 the state directors must not be stockholders. It is of but little con sequence what construction is given provided the board is legally constituted. I suppose it was not intended to increase the number of directors, but it was overlooked that there was an odd number

If three additional members are appointed it will require 7 to make a [illegible] and I shouldl be pleased if you would appoint them from this neighborhood, as the offices will continue to be kept in LaGrange

I have not yet seen Mr [Col] or Mr Williamson in order to get their views

I send you a copy of our last reports

Respectfully Eastin Morris

[illegible] [illegible] James K Polk

Nashville Tenn.

2/12/1840

Special Session of the Board of Directors of the LaGrange and Memphis Rail Road com pany, at the Rail Road office in LaGrange on Wednesday the twelfth day of February 1840 present Eastin Morris, President George Anderson Directors Ed Davis J Yancey George W. Adams, Cashier & Secty

The President laid before the Board an act of the General Assembly in the words following to [illegible]:

An act supplementary to the acts "to incorporate the LaGrange and Memphis Rail "Road Company" "section 1. Be it enacted by the General Assembly "of the state of Tennessee That the President and "Directors of the LaGrange and Memphis RailRoad "Company are hereby authorised if necessary to "increase the capital stock of said company to "any amount not exceeding Two Million of dol "lars, to enable the company to complete the main "road from Memphis to LaGrange, the branch from " Moscow to Somerville, the extension of the branch " from LaGrange to the Mississippi state line in "the direction of Tuscumbia, or to the Tennessee [illegible] " in the direction of Chattanooga or for the purpose "of constructing any other branch or branches "which the directors may deem it [expedient] to "establish in the counties of Shelby, Fayette, Hard eman, McNairy and Hardin" "Sect 2. Be it enacted that all real estate owner "or hereafter purchase by said company over "and above the ground necessary for the road "and depots, as prescribed by the charter shall "be subject to taxation in the same manner

"as land owner by, individuals. And all lands "which may be purchased or obtained by du "ration at the [illegible] of the road or branches "or at the principal depots shall be sold for the benefit of the individual stockholders "Sec.3. Be it enacted that the company are hereby "allowed until the 1st day of January 1842 to "complete the main stem of the said road from "Memphis to LaGrange and the branch from Moscow "to Sommerville" "Sect 4. Be it enacted that hereafter it shall be the duty of the Bank of Tennessee to pay the "semi annual interest accruing and to accrue upon the bonds of the state of Tennessee, heretofore "issued and hereafter to issue for account of "stock owned by the state in said road "Sect 5. Be it enacted that the Governor is hereby "required to subscribe for twelve hundred and "fifty shares in addition to the stock now "owned by the state in said company, being "an amount equal to the present subscription "by individuals provided this act shall not be "so construed as to authorise the company to claim "or the Governor to issue more than two hundred "and fifty thousand dollars in the state bonds "And the whole of that amount with are equal "amount raised by individual shareholders shall "be laid out upon the main road from LaGrange "to the Mississippi and from Somerville to "the main [illegible] of Moscow. And provides "that the state shall have a lien upon the pro "bate property of each stockholder, until the "whole of such stockholders stock is [illegible] [illegible] "Also the state shall have a lien upon all "the property of said company including land "owned and town sites purchased and donated "as hereinbefore provided for, as a security to the state that all the stock held by in

"=dividuals in said company is good and solvent and will be paid" "Sect. 6. Be it enacted That the Bonds for said "twelve hundred and fifty shares shall be payable thirty years after date, and bear an interest of "five per cent per [annum] pay able on the first "of January and first of July of each year "at such place in the United States as the "President of the Bank of Tennessee may de "signate. Said bond to be made pay able to "the President and Directors of the Bank of "Tennessee and to be endorsed by the President "of said BAnk an delivered to the President "and Directors of the said road" "Sect 7. Be it enacted That upon acceptance "of the conditions specified in this act the "Governor of the state shall appoint an "additional number of Directors on the part "of the state which will make the states "Directors equal in number to those elected "by the private stockholders in said company "Sect. 8. Be it enacted. That the Bonds issued "under the provisions of this act shall be "issued in Insurance of the 23rd section "of an act passed January 19th, 1838 entitled "an act to establish a state Bank, to raise "a fund for internal improvement and to "aid in the establishment of a system of "educational"

"Passed January 27th 1840

Jonas E. Thomas Speaker of Ho Reps. Levin H Coe Speaker of the Senate

Whereupon it was unanimously resolved and solemnly ordained by the Board that this corporation accept of the condition specified in said Act, together with all

and singular the privilege grants + liens therein contained, and order the same to be entered of record, as a supplement to the charter of the company And that a copy under the common seal of this com= pany to be certified to the Governor of Tennessee

I, George W. Adams, Cashier and Secretary of of the LaGrange and Memphis Rail Road company do hereby certify that the foregoing is a true copy of the proceedings of the Board of Directors as the same remains of record in my office

In testimony whereof I have herewith set my hanf and affixed the common seal of said company at LaGrange the twelfth day of February One thousand eight hunfred and forty.

Geo. W. Adams Cash Eastin Morris President of the LaGrange & Memphis Rail Road company do hereby certify that George W. Adams is the acting cashier and Secretary of said company duly appointed and qualified agreebly to the charter & the ordinances of said company and that the signature is evidenced by the Common Seal of this cor poration

In [illegible] whereof I have hereunto set my hand this 12th day of February 1840 Eastin Morris President

Geo. W. Adams [Cash]