Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-06-09
THE RAILROAD TNVESTI-
g s,t TO- CATION. @ 'a

1
The report of the Railroad Investigating
Committee in regard to the Southwestern
Railroad Company, submittC to the Legis-
lature and ordered printed, shows that
there have been issued to said railroad com
pany SOB State bends of 81, 600 each, IN
various installments aud at different times.
The first was 800 bonds Issued in 1868 to
Samuel Parker, President Of the company;
the second was thirty bonds issued to
Samuel Parker in 1869, for bridge aid;
the third was thirty bonds issued in August,
1869, to j. w. Johnson, Receiver, as
additional bridge aid; the fourth was
twenty seven bonds issued to j. W. John
son as bridge aid; the fifth was thirty-one
bonds issued to ]. W. Johnson; the sixth
was sixteen bonds issued to q. G. Dibbrell.
President, and the seventh installment was
| sixty nine bonds issued to G.. G. Dibbrell,
President, for bridge aid. The committee
find on file in the office of the Secretary of
State, an act passed Dec. Z, 1867, under
which the above named bonds were issued.
| By this act an appropriation of $500, 900
in the six per cent bonds of the State was
| made, with certain conditions and pro-
visions, for the use and benefit of the
Southwestern Railroad Company. Also a
1
of the Southwestern Railroad Company.
accepting the $500, 900 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 issued
no portion of the road was completely
l al nj L. i
There was at that time individual subscrip-
tons, partly paid in, amounting to $685.
$50. The committee express the opinion
that the bonds were irregulsrly issued and
without proper regard for the provisions
of the law. Filed with the Secre-
tary of State are several statements of
bridge estimates by E. L. Falconnet, Chief
Engineer-the first on the 18th of Nav,
1869. Total estimate for Collins River
Bridge, Caney Fork Bridge and Obed
River Bridge, 1925, 1913, " but with no certi-
ficate of any part of the work mentioned
having been done. The second statement.
of June 81, 1869, certifes that the value of
work done upon Collins River Bridge and
Caney Fork Bridge is $50, 800 The third
statement, Aug. ., 1869, certifes the
work done and value of the same, in State
DOuNAo, vi OOAAALlo 1NAfCI anu Nau6y IOIh
Bridges to be $50, l05. and that the first
section of the road-from McMinnville to
Collins River, three miles in length, is
ready for track laying The fourth state
ment, Nov. 6, 1869, certifes that the value
of the work done on Collins River and
Caney Fork Bridges is SIO2, 600.
The fifth statement, Jan. -, 1870,
certiies that the work on Collins
D1,-ar and Tanary FOX hrf1ro- haa
done according to contract These re-
markable papers, together with certificate
of ]. w. johnson and A. d. Collins, State
Directors, that the Internal Improvement
law has been complied with, and the
certificate Of Geo. H. Hill and VIM Bosom,
that the company has compiled with the
Internal improvement law of the State,
| constitute all the evidence fled with the
Secretary of State, upon which the 172
! bonds for bridge aid were issued The
only evidence filed with the Secretary Of
State. upon which the fifth install
ment of bonds was ISIS ed, is the affidavit
of J. w. Johnson, Receiver, that they are
applied for to iron the Southwestern Rail
| road from the intersection with the Nc
Minnville and Manchester Railroad to Col
Inns River, a distance of three miles, and
that the same should not DO issued for any
other purpose than procuring the rails,
spikes, etc., necessary for that work. The
committee are at loss to find the leasI
semblance of authority for the issuance of |
these bonds. OF the bonds received from
the State, the President OF the road dis.
posed of fifty on the ID of February, 1869,
for S33, 6Si; 220 were hypothetical for
$4,000, and coupons off of the three
hundred bonds sold for s., O00-amOunt-
ing to SIj4, 4S4 The same tabular
statement claims to have discussed
$152, 353. 80, reserving for salary for 1869
the sum of $3.50, leaving a balance of
1850. OF the various items Of disburse-
ments claimed in this statement, the COM
mittee find the aggregate amount of 81, 223
claimed as interest paid to banks for loaned
money, for all of which he presented no
vouchers to the committee. The President
claims credit of IS, 800 paid to the Urea
surer, which is not acknowledged in the
statement of the latter officer. The state
ment of the Treasurer credits the Presi-
dent with 5000, not claimed in the state
ment of the President, making the net sum
of S., 300not accounted for by either. The
statement of NJ c. Dibbrell, Treasurer for
the same time, gives receipts of cash
coming into his hands, $121, 3Jf 20, and |
amount claimed to have been paid out and
salary 1926, 577. 46, leaving cash balance
in his favor of 81, 223.26. The attention
of the General Assembly is called to the
glazing discrepancy between the statements
of the two officers, and the (perhaps uninten-
tiona) inaccuracy of one or the other. The
proof further shows that at the time the
800 bonds were drawn by Sam Parker,
President, they were worth rs cents in
the market, and that the Directors
authorized the sale of a certain num-
Der, which he failed to do until the bonds
had declined, and then sold at so cents,
thereby causing loss of about $1,000.
The Committee find that the President,
Samuel Parker, used the proceeds of the
sale of those so bonds and the money OBJ
tanned by hypothecating the 900 bands in
paying old debts of the company, incidental
| expenses, salaries, etc, to the amount of
| $40, 800 or more The Committee think
Samuel Parker is responsible and
should be made 10 account to the
State for these several items of losses
and misapplications of the funds that went
| into his hands while President of the COM
pany. The sixty bonds remaining in his
possession were turnedoye TO ]. w. john
son. appointed Receiver on the 19th of
0ulNs lCDJ- MI OOulhOu CidlitlS " udNC
received only So, 600 or SIS, 900 on the sale
of twenty seven bonds, which was paid ont
to contractors, reserving nothing for his
services. The bridge work and masonry
at Collins river is about completed and a
large portion of the trestle work and mas
onry at Caney Fork finished, and only four
teen miles graded. 1t would now take
SIS, 900 to grade the road to an inter-
secting point with the Tennessee and
Pacific Railroad, thereby becoming Of
some value to the State. The other as
sets of the company embrace about So, 600
of White county subscriptions, 100000
from Overton county, and from 10000 to
10000 of individual stock, about Co.
600 of which is regarded as solvent.
The State has incurred liability Of 503,-
600 on account of this company for which
she has scarcely any security. The Com
mittee therefore recommend that all the as
sets of this company in the way of bonds
unexpended, stock subscriptions not paid
in, and balances in the hands of persons
who have been and are officers in this COM
pany, be secured by the action of this
General Assembly, or by suits directed to
be brought in the courts of the State
A CALIFORNIA lady is out in defense of