Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-06-11
ANOTHER DERELICT RAILROAD.
The cosditiOa and Resources Of the South
western Railroad, as Shown by the
Legislative Committee.

y
SOB State bonds Of $1,000 each, in vari-
Gus installments and at different
times. The first was 300 bonds issued
in 1868 to Samuel Parker, President
Of the company; thesecond was thirty
bonds issued to Samuel Parker in
1869, for bridge aid; the third was
thirty bonds issued in August, 1863,
to J. W. Johnson, Receiver, as addi-
tional bridge aid; the fourth was
tWenty-seven tOnds issued to j. W.
johnson as bridge aid; the fifth was
thlrty-One bonds issued to J. w.
Johnson; the sixth was sixteen bonds
issued to g. q. Dibbrell, President,
and the seventh installment was
siXty-nine bonds issued to q. G..
Dibbrell, q President, for bridge
aid. The committee find on file
in the Office of the Secretary Of
state, an act passed Dec. Z, 1861, un-
der which the above named bonds
were issued. By this act an apprO-
priatiOn of $500, 600, in the six per
cent. bonds of the State, was made,
with certain conditions and prOvi-
siOns, for the use and benefit of the
Southwestern Railroad Company.
Also, a resolution of the Board Of Di-
rectOrs of the Southwestern Railroad
Company, accepting the $780, GOO in
bonds, with the annexed conditions
and provisions. The 10th section of
the act under which said bonds were
issued provides that these bonds shall
be made under the conditions imposed
by the internal Improvement laws of
the State. When the bonds were Is
sued no portion Of the road was COM
pletely graded, and no other work
was completed. There was at that
time individual subscriptions, partly
paid in, amounting to Sl95, $50. The
committee express the opinion that
the bonds were irregularly issued and
without a proper regard for the pro-
visions Of the law. Filed with the
Secretary of State are several state
ments OF bridge estimates made by Z.
Z. FalcOnnet, Chief Engineer-the
first on the 18th of May, 1863.
Total estimate for Collins river
bridge, Caney Fork bridge and Obed
River bridge, $225, ,193," but with no
certificate Of any part Of the work
mentioned having been done. The
second statement, Of June p, 1869,
certi1ies that the value OF work done
upon Collins River Bridge and Caney
Fork bridge is $50, 800. The third
statement, August 8, 1863, certifies the
work dCne and value of the same, in
State bonds, on Collins River and
Caney Fork bridges to be $50, ,l0j, and
that the first section Of the rOad-frOm
Nc Minnville to Collins river, three
miles in length, is ready for track lay
ing. The fourth statement, NOvem-
Der 6, 1869, certiies that the value OF
the work done on Collins river and
Caney Fork bridges is SI02,699. The
fifth statement, January L, 1870, GER
titles that the work on Collins river
and Caney Fork bridges has been
done according to contract. These
remarkable papers, together with a
certificate Of J. W. johnson and A. d.
Collins, State Directors, that the In
ternal Improvement law has been
complied with, and the certificate OF
George II. Hill and VIM. Bosom, b.at
the company has complied with trs3
Internal Improvement law Of the
State, constitute all the evidence
filed with the Secretary of State,
upon which the liz bonds for
bridge aid were issued. The
only evidence filed with the Secretary
Of State, upon which the fifth install
ment of bonds was issued, is the affi-
davit of J. W. Johnson, Receiver,
that they are applied for to iron the
Southwestern railroad from the inter-
section with the McNIinnville and
Manchester railroad to Collins river,
a distance of three miles, and tbtS the
same should not be issued f6f any
other purpose than procuring the rails,
spikes, etc, necessary for that work.
The committee are at a loss to find the
least semblance of authority for the
issuance of these bonds. OF the bonds
received from the State, the President
Of the road disposed Of fifty on the
ID Of February, 1869, for S33, ,6S4; 22t
were hypothecated tor $4,000, and
coupons off of the three hundr61
bonds sold for S9O00-amOUntinE q
SI54 .4S4. The same tabular statement
claims to have disbursed $Ij2, 80;
80, reserving for salary for 1868
the sum Of $3.50, leaving a balance o
Sl4SO. Of the various items Of dis
bursements claimed in this statement
the committee find the aggregate
amount of S2223 claimed as interes
paid to banks for loaned money, fOl
all of which he presented no vOuch
ers to the committee. The Presiden
claims a credit of $500 paid to tht
| Treasurer, which is not acknOWl
edged in the statement of the latte
officer. The statement of the Treas
urer credits the President with $4,000
not claimed in the statement Of tn,
President, making the net sum 0
| $500 not accounted for by either. Tht
statement of NJ. G. Dibbrell, Treas
urer for the same time, gives receipt
/ Of cash coming into his hands, Sl21,
| 354. 20, and amount claimed to havu
been paid out and salary-SI25, 81 .46
! leaving a cash balance in his favor 0
! S4223. IS. The attention of tht
! General Assembly is called to tn
| glaring discrepancy between the state
/ ments of the two officers, and th,
| lperhaps unintentiOnal) inaccuracy Q
/ one or the other. The proof furthe
shows that at the time the 800 bond
/ were drawn by Sam Parker, Presi
dent, they were worth IS cents in the
market, and that the directors author
| lied the sale of a certain number
which he failed to do until the bond
| had declined, and then sold at 81
| cents, thereby causing loss of abOu
| 5000. The committee find that tn
| President, Samuel Parker, used tn,
! proceeds Of the sale of those 30 bond
/ and the money obtained by hypothe
/ catip-otthe 220 bonds in paying olC
/ debts of the company, incidental ex
/ penses, salaries, etc, to the amount Q
/ SlO,3U0 or more. The committee thinl
/ Samuel Parker is responsible ant
should be made to account to tn
State for these several items c
losses and Interpretations of tn
funds that went into his hand
while President of the company
| The sixty bonds remaining in his pos
session were turned over to J. w
| johnson, appointed Receiver on tn
/ ,o.th of July, 1863. Mr.. johnson
J ais;r,,s - have received only 5000 O
SeG00 an he sale of twenty-sevel
bonds. which was paid out to contraC
tors- reserving nothing for his SCI
/ vices. The bridge work an1 masonr,
/ at Collins ElNbI 10 dDOub OOL1 PiSNS~ 80
a large portion of the tsestle- WORK an
masonry at Caney Fork finished, an
only fourteen miles graded. 1t Woul
now take S75, 900 to grade the road t
an intersecting point with the IeT
/ nessee and Pacific Railroad, thereO
/ becoming Of some value to the Stats
/ The other assets OF the company en-
/ brace about ST.. 600 of White count
suhscriptions. Sl60,O00 from Overto
county. and from $50, 600 to $llO, ,0OO'
| Individual stock, about $4,000
which is regarded as solvent. ~
| state has incurred a liability Of S5O3
GOO on account OF this company, 4
which she has scarcely any securlt.
The committee therefore reeommen
that all assets of this company IN u
way of bonds unexpended, STOCK su
! scriDtiOns not paid in, and balances