Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1871-06-17

countabIe to the EoomIanY for this

eountable Ito the Hdomnan2 for Ushiss
We also find among the papers of the
Company Gen Mabry,s receipt for $780,
600, In First Mortgage Bonds, and an en-
try on the books under date of May 2,
1870.
NJ. B. McMahan
3 To j. A. Mabry e'3g. 9ai itrJ u Dr.
To First Mortgage Bonds re- di7oE q
ported as deposited by Mabry
with MeMahan, July 81 1869, o,oOo~7
Thus leaving $50, Oo0Sin these Bonds
charged to himself, and of which he has
never made any report. Inasmuch, how
ever, as the Directory Of the Company only
authorized the issuance of these bonds
under. certain restrictions, theC conditions
Of which have never, i'm the opinionAof
your Committee, been complied with, it
is believed by them, that your Company
cannot be held responsible for their pay
ment, should however itbe decided other
held accountable to the Company, for the
same reasons which govern his credit of
81. 900 to the same party.
We had thought to bring our report toa
close at this point, but we hardly think
our duty would be fully performed were
we to do SO without mentioning other
matters which this examination has
brought to our knowledge, and which may
or may not be explained satisfactorily.
We find that G.. M. McGhee, while Presi
dent of the Company in 1866, in procuring
State aid in Nashville to the amount of
ten hundred thousand dollars, expended
the sum of 81 1888 Is. We also find that
]. A. Mabry, while President in 1868 and
1869, expended the sum of ,$2S, 500, in at
tempting to procure additional State aid.
This last sum to our minds seems enor-
nous for such purpose, although allow
ed by former board, but Of this your bet
ter judgment willdecide. We further find
that J. "A. Mabry has had credit upon the
books of the Company for $50, 933 81 in
consideration Of having paid an old claim
with interest due the Mount Savage Iron
Company. We have reason to believe that
this claim could have been paid With less
than one half Of this amount. We find
another credit given Nfabfy . account of
S25, 362. SO, alleged amount paid Bank or
Tennessee notes with interest, which
would seem to require an investigation at
your hands, inasmuch, as. we understand
that n former officer of your Company
claims to have, previously paid this note,
We also find under date Of May ,26, that
General Mabry's account has credit for $50
10000, amount reported as paid to Thos.
Steers, and we find that Tiios: SSteers' ac-
count is charged with that amount, and
that he has 3reeeipted therefor But mas
much as ThOs. Steers made oath before the
Legislative Committee that for these re-
ceipts General Mabry nly1taid him, tHen-
ty thousand dollars, your COMMITTEE feel
that the Railroad Company should have
the benefit of the discount, inasmuch as
the necessary funds to pay shares belong
ing to your Company was at that tiinekfn
the hands of President Mabry, and hence
your attention Is called to the fact.
In conclusion, we are sorry to say that
we do not think that the interest," of the
road has at all times been paramount with
all of its officers or directors These con-
clusions are to us very unpleasant, and We
have been forced to them against our de-
sire but to honestly discharge our duty. to
you and to the Stockholders, it has been
impossible for us to COME to conclusions
other than those herein respectfully sub
mitted.)Ig
E. J. SANFORD, 4
-, JOHN rFoUcHE, t. -
J. c. CHILEs,
= Z n M -