Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-09-05
ON THE WING
interesting Letter from East Ter
nessee.
The :" First Move of StOkes"---Seiz-
ure of the East Tennessee and
Georgia, and the East Ten
nessee and Virginia
Railroads.
The True Statement of the En-
brOgIiO-- -PoIitiealkfairs Etc.

K. TENS,
Gnnfnrnh ar 1910

| EllSllcill d5 OCCd5lOLiGh III tlIo QhlCE
little burgh-the home of T" w. g."
and the rafting ground of w. Is. and
Horace Maynard-by a four line per
sonal +" which appeared in the local Of
the Press and Herald, announcing the
arrival of Col. Chas. w. Folsom, a. O..
NJ, charged with plenary powers from
Gen. Meigs, Q. NJ. G.. U. 5. A, TO
seize and hold the East Tennessee and
Virginia, and the East Tennessee and
Georgia Railroads.&c. one running
from this point TO Chattanooga, a dis
tanee 1l2 miles, and the other hence
to Bristol, Va, 100 miles, both well
managed and paying road, and both
of them supposed, hitherto, to be not
only clear OF debt to the Federal Gov
eminent, but to have very heavy
claims upon it.
This announcement in the Press and
Herald was followed in a day or two
by a genuine sensation, with four
headers, announcing that the impend-
ing conflict was about to commence,
that the Bald Eagle, perched on the
roof the White House, had uttered his
war scream, and was then and there
about to plunge Tennessee into ga
bath of bel-lud.n In this sensation was
the following paragraph:
sit was rumored on the streets yes
terday that the order of the Secretary
of War to Col. Folsom to take charge
as Receiver of these roads. was tie
first more 6g the administration to
hrOU a force Of Federal soldiers on
Tennessee IN order 10 prolOke q conflict
tCith the people, and thus, U7deTpreteHSe
| ofdH i~asuTrection to declare Blurtim an
and place the State under control Of a
military Governor, rhO is 10 be none
other than Gen. I'm. q. Stokes"
This article, in view of the declara-
tons of Stokes, his mission to Wash
iDgtOn, and the well known temper of
the administration, coupled with the
fact that Horace Maynard and a few
| other rascally Radicals of his stripe
were here in Knoxville, running
around as busy as bees in a tar barrel,
intent on some deYilment,) set the
town on fire, as it were, and for u lew
hoGrs the excitement was intense.
Col. Folsom, who is a gentleman in
/ every sense of the word, and a clear
headed, honorable man, in a moment
| saw the mischief that this statement
might cause, and lost no time in See
ing the proper parties and putting
himself right before the people, assur-
| lug them that his mission was purely
a business one, and not in any manner
| connected with State or other poll
tics-a fact which no one who
knows Col. Folsom as your cOrrespon-
dent does, will for a moment doubt.
Having heard of the e~mbrogliO, l lost
no time after arriving here to put my
] elf IN full Nnu1AEzTnn nf oil tho tpnfZ
connected with the case, and as the
matter is one of no ordinary public
interest (three-fOurths of our Southern
Railroads being liable to a similar
seizure ut any moment), l herewith
present them:
In September, 1868, Gen. Burnside
/ occupied Knoxville, and under u of
the enactInents for the suppression
OF the rebellion" seized and took pOs-
session of the two railroads in ques-
ton, viz: the East Tennessee and
Georgia, and the East Tennessee and
Virginia Roads. The roads were
thenceforward run by the Govern
ment up to August y, 1865, a period
of two years. When Burnside took
possession be found both roads in
complete running order, with rolling
stock, etc, enough 10 enable him 10
run them until March '65 without
eXpending one cent for anything
except the ordinary running eX-
pepses of a Railroad. Under
The general Orler or procla-
nation Of the President, dated August
s, 1865, these were turned over, along
| with all other Southern roads, to their
rightfui owners, possession being given
to Col. L. II. Galloway and John r.
Branner, (who were elected Presidents
of the roads July %, 1865, in anticipa-
ton of this action of the Federal Gov
ernment), August IS, or twenty days
afterward.
On taking charge of his road, Presi-
dent Galloway (as also did President
Branner) caused an itemiZed bill 10 be
made out against the Government for
the use of the road, locomotives, etc,
for two years, and also for a round
house and machine shop, destroyed
by Gen. Burnside, while they were
under his charge. The General gave
| q memorandum receipt forthe amount
something over six hundred thousand
dOllarSl and endorsed the bills as or
rect TO the best OF his knowledge.
These bills were subsequently en-
dorsed verbally and by letter by Gems.
Grant and Thomas.
Believing them to be valid, and
that there would be no delay about
getting them paid, with their strong
endorsements, President Galloway,
acting for the roads, purchased of the
Government rolling stock and mate
rial for the East Tennessee and GeOr-
gia Railroad to the amount of $780,
60 90, and for the Virginia Road 10
the amount of something over two
hundred thousand dollars. After
making tine purchase, under asSur-
ances, and in the full belief that the
accounts of the roads would be al
lowed as an Offset, President Gallo
way was called on by an a. Q. NJ, as
an agent of the Government, and re-
quested to sign bonds for the amounts
specified. This was a new phase in
the affair to him, and he at first de-
INJURED complying, asking time to
call the directors OF the roads to-
gether for consultation. This the
officer peremptOrily refused to wait
for, and ordered Colonel Gala
way to sign them forthwith.
in the existing condition OF affairs it
was HObsOn's choice With him, and
the President was forced to sign the
bonds-dOing it, however, under pro-
test, and duress.
From that time TO this Coils. Gallo
way aud Branner have been trying.in
vain to get a settlement out OF the
Government. He and his friends
have begged, lObbied, petitioned
faeSSed and ~diplOmatised, and all to
no purpose. While their bills against
the Government, admitted to be Just
and equitable by Burnside who con-
tracted the Indebtedness, by Thomas
commanding the department, and
Grant who commanded the army, are
no nearer payment to-day than they
were five years ago, these roads, after
paying Virginia and Tennessee one
hundred thousand dollars in interest
(which, by the way, Is .07 $40 per an
nuD compounded HlOTlLhlVl are now
about to be levied on and taken out of
the hands and government of their
rightiul Owners-already deprived Of
over six hundred thousand dollars
worth OF their earnings, seithout in
tereSt.
This Is a plain statements of the facts,
which shows the merits of the case,
with which, however, Col. Folsom as
q subaltern-a servant of the Govern
ment, bound to obey the orders of his
superior, has nothing to do. On re-
celVing his instructions he came hith-