Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-05-31
'kHE RAILROAD INVESTIGA.
g TION.
Aerport OF the Committee On slao Seo$-
HcrSViiIc and IeffcrSon Rs,fEro.,d

= L
The committee find from an examin
ton of the above mentioned road. III
. there was issued to said company, prev
: Gus to the war, $l59, 600 in State bonds
that since the mar there has been issue
to said road $4,000 in State bond
! making in the aggregate 1886, 600 in Sta,
T bonds; that of the bonds issued since th
war, fifty-five bonds were issued undo
the act passed Feb. 26, 1858; which az
provides that, ''when the grading is don
from Bulls Gap to the Holston river, an
the remaining portion from Holston rive
to the town of Rogersyille
under contract, the first installmen
should be issued, and, that they shall b
authorized to draw the balance of sal
appropriation as soon as the grading an,
masonry are completed to the terminus
at Rogersyille." This being five and ahal
miles they drew fifty-five bonds, and III,
act provides this condition, ''that wher
they have completed the grading and ma
sonry, ready for the timber, as the Law
now provides, they are authorized tC
draw bonds, ETC.; that one hundred bond.
issued since the war, were under the ac
of Jan. is, 1866, which provides thai
'the bonds shall in no event be sold al
less than par, and that theeproceeds shall
alene be used in building the bridges and
repairing said road, and putting it in run
ming order" that forty-one bonds were
issued Nov. 80, 1866, under the act of
Feb. 90, 1865, and subject to the
| provisions of the internal improve
ment laws of the State; that thirty
bonds were issued March 70
1865, under the authority of an act passed
March Z, 1868. The objects of said
amount are declared to be for the purpose
of covering the bridge" across the Hol-
stOn river and to do work on the 'sroad
bed" to make it safe, and it also contains
the following provisions "That in the
event the company shall accept the pro-
visions of this act and authorize the Re-
ceiver, appointed by the Governor, to re-
celVe the bonds so appropriated by this
act, then said Receiver shall give a good
and sufficient bond for fifty thousand dol
lars, conditioned to reimburse the State
against any loss which may occur against
the State in consequence of the issuance
OF said bonds" The act also REQUIRES the
company by its President and Directors,
to accept the conditions and provisions of
section fifteen of the act passed Dec. 2.
1867, entitled, an act to amend the inter.
nal improvement laws of the State. passed
Feb. II, 1882
The committee find from the testimony
of w. 9. Kyle, that he has been connec-
ted with said road from its organization,
first as Director, then as Vice President
in 1923, and as President in 1865. and
was President until it went into the hands
of Receiver, and under the late law be-
came Receiver by virtue of his office as
President; that be received fifty-fve
bonds from the State, April "a, 1866;
that he sent S40,0 900 of them to Water
house, Pearl & Co., New York, for sale.
They were sold and he realized $2S, 900
in cash that he paid one fourth of one
per cent commission for sale, and that
the bonds were sold at an average of 7OI
cents on the dollar that SIS, 900 of said
bonds he paid out at par value; that he
presents his receipts and vouchers
to the committee of examination,
but that it is impossible to make
anything but general showing of his
disbursements of $2S, 600; that he paid
fourteen of the remaining fifteen bonds to
the Ococe Bank, for debt due the bank
from the Railroad Company, and that the
other bond he paid to a contractor; that
these were paid for debts of the same
amount as the par value of the bonds;
that the debt due the OcOee Bank was
contracted in 1861, by the Railroad Com
pany; that the twenty-eight thousand dol
lars was not expended in the actsal con-
struction of the road, after it was OBJ
tanned; but that the fifty-iye bonds were
due the road in 1861, under the law, and
the company failed to get them, and they
borrowed money on the faith of the
bonds being due the company, and did
the work, and when they received the
bonds after the war, they paid those debts.
That he received one hundred bonds on
the 29th of May, 1866, and files q
statement as an exhibit to his deposition,
showing the sale of them, the rate
and amount realized. The statement
shows that the bonds were Sod at from
20 to 72i; and including $1Oson bonds
paid at par, realized $74, ,071.25; that he
paid of that amount $51, 323.17 to con-
tractors, for building bridge across HOl-
ston river; that the value of $22,
was attached in New York, in the hands
of G. Powell, Green s. Co., ami was lost
by their failure; that he received forty
one bonds on the 50th of November, 1866;
that he sold Jan. 81, 1867, thirty one
bonds, with coupons off, at Gal making
$50, sos in cash; that ten bonds were used
at par; that one hundred and fifty three
coupons, amounting to 81, 500 was paid
TO the Comptroller, as Interest due the
State; that he paid altogether, to the
Comptroller, out of the proceeds $l0,-
b64. SO, the BALANCE vas paid to va
riOQs parties as shown 10y 9 statement at
tached to his deposition; that the forty
one bonds were also due the road before
the war; that he never drew any salary,
and paid out of his own pocket s., ,e29. 81,
more than he received; that he cannot
now tell the amount of earnings and dis
bursements of the road from Jan. |, 1870,
the time he became receiver, until the 1St
of April, but will make out statement
and certify to it, and forward the same to
the cOnlIniltee, which, however, he has
not done; that he will file an inventory OF
all the property and assets of the road,
and an estimate of the value of thg sans,
but be has moi done SO, IS yet:
1he committee And TFOm the testimony
of Ohas. ]. Mckinney, that ne was ap-
pointed Receiver, Oct l, 1867, and
remained as such until Jan. l, 1870;
that he received thirty bonhs CT CT tthe 28th
of March, 1868; that he sold twenty y-fve
of them in New York, for 673 cents to
50 cents, aid realized ST, ,24G.GT; that
he has five bonds on hand unsOld; that
he paid out the money for the road and
presented his vouchers to the committee,
and an exhibit to his deposition showing
disbursements; that he had not sufficient
money after completing the road to
Rogersville and making repairs, 50 that
the road was safe, to cover the bridge
across the HOlstOn river. The amount of
earnings of said road while he was Re-
ceiver, was $50, 487.61, and refers to his
statement, flied, as an exhibit to his de-
position, which shows the receipts and
disbursements and the purpose for which
the same was disbursed; that the earn
ings are sufficient to pay the gTaling ex-
pcnseS, hut were not during bis admins
tration, for the reason that the earnings
were used in general permanent expenses;
that he had credited himself no salary,
but expected to receive whatever the law
allowed, when he made his settlement
with the State,
The said road owed debt 10 the Bank
of Tennessee of forty or fifty thousand
dollars, and that the balance due on the
private stock of the company, about $25,
900 of bonds Gf Hawkins county, and one