As requested we beg to submit herewith a synopsis of what
We consider necessary in the way of a contract between us for the
construction of the proposed Railroad. Of course this is merely an
outline covering the more important points and is for the purpose of
giving your associates some idea of the necessities: All matters of
detail to be agreed upon before contracts are drawn.
You will see that it is out idea that the Railroad be built by
ourselves as contractors and we do this for the reason that there are
things to be done which we,as individuals,might: do and which it would
be unwise for a Railroad Company to do.
We assume that there is no necessity-of going into the question
of the benefits whihh would accrue to the Port of Fernandina by the
construction of such a road,as that has already been realized by you,
but the present plan,we think,is one which while costing the minimum
for terminals at Jacksonville promises to tap the best business
tributary to Fernandina.
You,of course understand that we have in view the active manage-
ment of the property for a term if at least five years or as long as
the resule of such management is satisfactory.
As soon as your associates return we would suggest that the matter
be taken up and a conference arranged,as prompt action is desirable.
Yours very truly
SYNOPSIS OF THE PROPOSED AGREEMENT
lst; You and your associatesare to organize a Company for the
purpose of building and operating a Railroad etc.,which:.shall have an
authorized capital of say $500,000.00 and with authority to issue first
mortgage gold bonds bearing 6% interest at the rate of $12,000.00 per
mile of road built.
2nd: The Railroad Company is to make a contract with the subscribers
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hereto to build said railroad for which the contractors are to receive
$600,000.00,one' half in stock and one half in first mortgage bonds.
3rd: You and your associates agree to take from us $200,000.00
of the capital stock at par,one half of which is to be paid in cash as
the work progresses and the balance($100,000.00)to be given for the
River front property and franchises which you now own,amounting in all
to some. 10,000 feet of water front.
4th: It is understood that for the present the issue of stock
shall not exceed $300,000.00,the remaining $200,000.00 authorized to
be held by the Railroad Company and issued as needed for improvements,
5th: You and your associates are to assist the contractors in
every way possible in getting franchises,etc.from the City of Fernan-
dina as well as to guarantee to the contractors free of all cost a
right of way through the City of Fernandina and to at least five miles
from the City limits.
6th; The Contractors are to agree
A, To build and eqiip a railroad from the City of Fernandiha to
Grand Crossing and make a physical with the A.V.& W., J.& S.W. and
Plant System at that point. The Railroad to be standard in every par-
ticular and laid:with 60# steel railds.
B, To furnish ample side track and station facilities at the
different points along the line.
C, To furnish ample yard facilities at Grand Crossing..
D, To provide ample and proper station accomodations,yard tracks
and docks at Fernandina for the convenient handling of Naval stores,
Lumber,Cotton and all other bulk freightand to provide a means of
handling phosphate as economically and expeditiously as any now in
use,either by erecting an elevator or by building storage room with ele-
vated tracks for unloading and storing by gravity. The capacity of
said phosphate house not to be less than..the one now in use by the S.A.L
E, To make all arrangements necessary for the conduct of traffic
such as making traffic agreements devising rates,etc.,which agreements
shall,of course,be subject to approval by the directors of Railroad
Company or the proper officials appointed by them.