Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1871-08-23

5000 June |.
1000 July |.
100000 Second Mortgage Bonds.
500, 900 Stock.
Interest on Second Mortgage Bonds guaran-
teed by bond Of road, five years, and Endorsed
by two Directors personally
State bonds to have all the coupons attached.
Mr.. Lippitt asked Mckay who wrote the
proposition. He said it was a gentleman
mt the st. Nicholas Hotel, but that it was
dictated by Gov. Lindsay, standing look
lg over his shoulder. Mr.. Lippitt asked
him why he took such an interest i'll the
matter Mckay told him that Gov. Lind
say wasa Scotch friend of his, and that he
had spent all his money in getting him
self elected he had taken Lindsay to see
all the fascinating sights i'll New York,
and Lindsay had confided his pecuniary
circumstances to Mckay and made this
proposition. Mr.. Lippitt again asked Nc
Kay what he was to make out of 1T. He
raised his hand and said he would take his
oath he was not to make n cent out of it.
Mr.. Lippitt said, it is an enormous sum,
and l should not suppose Coy. Lindsay
would have the hardihood to ask for so
much if it was all to go to him when he
knows that the corporation is in finan-
cial dilemma. Mckay answered, "Well,
Mr. Lippitt, | am not to have a cent, and
l will take my oath that | am not, but my
only object and interest is to have your
Company pay the Governor enough so he
won't seize your road, for if he does not |
have a scheme on foot in Alabama, which
will prove very profitable. This is for the
State to indorse the bonds of a company |
propose to organize for manufacturing pur-
poses in that State. He stated that the bill
passed the Senate the year before, but had
been defeated in the House. The House
was now rather Democratic, and Lindsay
had great influence with the Democrats,
and at the coming session Lindsay had
promised him he would assist him in get
ting bill the through the House and would
also sign it as Governor. The Endorsement
was to be for several millions of dollars
and, if the Governor should seize the road,
he was fearful the Legislature would re-
fuse to indOrse any more bonds for any
purpose Mr.. Rice then asked Mckay
what guarantee Gov. Lindsay proposed to
give that he would do as he said lie would?
Mckay said we might write n letter tC
Gov. Lindsay, and also write one in an
swer for the Governor to sign, and he
Mckay would make the Governor sign
it. Mckay then turned to me and asked
"Will you write the lctters"' | answered
"No, / am too busy but perhaps Mr.. Lip
pitt will write Them Before Mckay left,
we agreed upon price, conditionally upon
the Governors signing such letter as we
might write.
at another time. Stanton soon received q
card from him, stating that important bus
mess called Lindsay to Washington next
day, and he desired the money, property
&c, so that he might accompany him.
Terms were not agreed upon, and Lindsay
gave Stanton to understand, through his
friend Mckay, that the road was in dan
ger of being seized at any time, unless the
money was forthcoming. The letter covers
nearly five closely printed columns in the
tribune, and if the statements are true
place Gov. Lindsay in an awkward posi-
ton.
The Tribune aHudes to the matter edtO.
rally as follows
In a long communication, Mr.. ID. n.
Stanton, President of the Alabama and
details the particulars of the negotiations
between himself and Mr.. Mckay, with
| reference to large payment made to the
| latter of cash, notes, stock and bonds oil
| the Company. These transactions have
! given color to q report referred to some
days ago in our Washington corresponds
enCc to the effect that this Mr.. Mckay
was the representative of Gov. Lindsay OF
| Alabama, who was to receive this property
as a consideration for not Selling the rail-
| road, a. he was authorized to do by law,
for its failure to make good the interest on
railroad bonds endorsed by the State.
! Whether Mr. stanton does or does not
make out his case against Coy. Lindsay
he certainly furnishes an interesting chap
ter of the difficulties of new railroad en-
| terprises in the South, and piquant mar
rative Of the circumstances which led him
to believe that he was dealing with the
authorized representative of the Governor,
49, 1870