Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1870-06-01
NEUTRALITY-SUSPICIOUS. COMMITTEE.
Report on the Knoxville and Charleston
Railroad

Report on the Knoxville and Charleston
Railroad.
The Railroad Investigating Committee have
at length began to submit their reports, On
Saturday Of last woek, lengthy report was sub
mitted on the affairs and management of the
Knoxville and Charleston Railroad Company.
They find that there has been $4,000 Of the
bonds of the State issued to that road since tho
war; $4,000 under the act of December, 1851
$4,000 under the act of December, 1867; and
$4,000 under the acts of lS52-53-54 These
bonds they find were received by Judge Jones,
as President of the road and used in its con-
struction having been disposed ofthrough Now
FORK bankers at about 81 cents on the dollar, and
the Company lost $4,000 of the bonds of the
State, by the failure Of C. Powell, Green & Co.
The assets of the road, including $4,000 in
Blount county bonds, and $4,000 cash, we're
turned over by Judge Jones to his successor.
They gave the testimony of several gentlemen,
bearing on the receipts and disbursements of the
road. They then give the various orders from
the Governor and Commissioner of Roads, di-
recting the issuance of the bonds. They give
the present value ofrollingstock and other assets
Of the Company, and the length of road compile
ted, closing with thefolowing;
The committee, in submitting their report
upon the Knoxville and Charleston Railroad,
would respectfully call attention to the evident
fact that the Governor has construed the acts of
the Legislature, appropratng the bonds above
referred to, rs not being affected by tho condi-
lions, restrictions and limitations imposed by
the Internal improvement laws of the State.
1t will readily be seen by the examination
OF the report that the law has not been complied
with.
There is no resolution Of the Board of D-
rectors and no affidavit of the President, except
the joint certificate and affidavit of the Chief
Engineer and President in regard to the Hol-
ston River Bridge.
The Commissioner of Roads does not make
his certificate comply with the requirements OF
the third section Of the act of February 9Th,
1854
Zone hundred thousand dollars in bonds is
sued when the first ten miles are graded and
when six additional miles are graded, sixty
thousand dollars more is issued and as if h
more openly disregard the requirements of the
law, the Governor makes certificate in his
official capacity, that the road is graded and
ready for the iron, and entitled to the bonds,
thereby assuming the functions of railroad
engineer, and actually assisting to disregard the
law.
at less than their par value which is in direct
violation of the provisions of the law.
" And to make it the moro apparent how little
attention was given to the wise and salutary
provisions of the internal improvement laws o
the State, it is only necessary 10 state that tht
amount of individual stock paid in is 81,
while the State has issued $4,000.
ts'' From the estimates made by the Engineer
and the Machinist and the Receiver it appear
that the road is worth $3.50, l25.
= This includes the SIS, 900 in tho note of c
Powell, which il regarded worthless, and con
sequently would leave the road with all its pro
perty and assets, worth only about S574, 255, o
about 1884, 40 less than the principal debt o
the State, saying nothing about the interest du
from tho road on the bonds.
. 1t appears also that 50 600 in cash. proceed
Of State bonds, was paid back to tho State in in
terest which, in the opinion of the committee
was in direct violation of the law. Tho commit
tee would suggest that some legislation shoul'
be enacted to save the State from the constant,
accumnlating loss by accruing interest and tn
culture of the road to pay its current expenses,
With these observations the committee be
leave to submit this as the report on the Knox
vile and Charleston Railroad.
- VI. CLEMENTsoS,
JONI s. HIATT,
Nv. w HALL,
Ii. townsend,
-. Il. RossoN,
a. l.. SPEARs.7
The report of the Committee is full and e1
plicit. We cannot say there was any attempt
whitewashing but believe all the facts in r.
gard to this road were fully brought out. w
will look with interest for still further reports,
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