The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1869-09-10
Our East Tennessee Railroads.


Our readers are already advised Of
the controversy between the East Ten
ncssee and Georgia and East Tennessee
and Virginia Railroad Companies and
the Government authorities, growing
out of claims held by each against the
other. They are also advised of the
presence Of an officer of the Govern
ment, Col. Folsom, who is now in the
city charged with the duty of collect
ing the sums claimed by the Govern
ment, or with the alternative remedy of
taking possession of the roads. AL
though we have heretofore, in connec-
tion with tie affair, in another aspect,
briefly sifen the history of these claims,
We republish below the history given
by the well-imformcd Knoxville cores
pondent Of the New York Times, who
has given special attention to the inves-
tigaton of the subject in professional
capacity. Under date Of August 2Gth,
he thus writes:
Gan officer of the government is here
under orders from the Quartermaster
General to take possession of the East
Tennessee and Georgia and East Ten
nessee aud Virginia Railroad Compa-
nies with view Of collecting the sum
of SG00,0O0 due the government from
the two companies for rolling stock and
other material sold to them at the close
of the war. These roads, in connec-
ton with others in the State, were held
and controlled by the government dur
ing the latter years of the war as mill
tary roads, and the engines, cars and
material on hand after the surrender of
the rebel armies were sold to the roads
at prices fixed by a board of appraisers
appointed by the War Department.
The value of the purchases was in
round Lumbers S250,O00 to the East
Tennessee and Virginia Company, and
S3500OO to the East Tennessee and
Georgia Company. To secure the pay
mcnt Of these sums, the government, in
December, 1865, caused the companies
to execute mortgages on their roads for
double the amount of property receiv-
ed. Said bonds or mortgages provided
| that the sum due the government should
be paid in two years IN monthly Install.
ments, with interest, the charges of the
companies for postal service or trans.
portation Of troops to be deducted, or
in default Of such payment, the govern
mcnt should take possession Of the com
panics' roads, and out of the revenues
pay whatever balance should be due
a lien was retained on all the property
sold and rastr.rtions against any sale ol
transfer agic'I upon. These are the
main features Of the instruments under
which the go ernmcnt now proposes to
| take possession Of these roads.
"Now, it j. held the Government has
no right or authority to take possession
and control of these roads. The bonds
were executed i'll 1865 by the presidents
of the two companies under a species
Of duresS, and in a manner which so tal
as the law goes renders them null and
void. They were compelled by dures,
to execute instruments which they had
no power to execute, and which are
| therefore, in law, utterly worthless. sc
far from the Government having deriv.
ed any advantage from their execution
it has positively sustained a serious loss
The officers of these roads-Thonas ii
Galloway, President East Tennessee and
Georgia Railroad, and john r. Brauner
| (since deceased President East Tennes.
see and Virginia Railroad, were willing
and ready to give the Government any
security within their power for the pay.
ment of these debts, but they protested
against executing these bonds without
the consent OF the directors and stock
holders, for fwo reasons-tirst, because
they had no authority whatever 10 exc
cute such instruments; and second, be-
cause the State and other creditors held
first and second mortgages on the roads
which would render the proposed i'll
struments comparatively worthless.
"The unwillingness of the presidents
to sign the bonds was construed rs al
attempt TO deprive the Government o
security for its claim, and they We're no
titled that unless the bonds were signe(
before certain day their roads woul,
be seized by the military and paymeu
at once enforced. Under these circum
stances, Presidents Galloway and Bran
ner signed the bonds, the former, &C
companying his signature with pro
test denyiEs~ his right or authority Il
bind the company in any such manner
"The statements have thus far mad,
only present one phase Of the case
One reason why these companies have
delayed paying these claims is that the!
have larger counter claims against thu
Government These originated during
the war, and the consideration is en-
gines, cars and material furnished tC
General Burnside's army, upon the oc
cupation of East Tennessee in 1861
These claims are now pending in thu
Department at Washington and have al
ready been the cause of some litigation
The facts on this point of the case art
substantially these: When Gen. Burn
side came to Knoxville, in September
1868, he found engines, cars and shops
and all the material necessary for thu
operation of the roads, at his disposal
All of this property would have beer
run into Virginia and Georgia by tht
rebel forces, but for the efforts o
Messrs. Galloway and Branner, ant
associates. They defeated so far as the,
could the Efforts of the rebel military
and through their information and as
sistance General Burnside intercepted
engines and cars, and secured posses
sion of very valuable property. Is,
reason of this assistance Burnside wa
enabled to retain control of the country
With such aid he was enabled to NOV,
his troops rapidly, and gather into hi