Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1871-08-16
Information wanted.

MEssRs. EDIToRs The object OF this
communication IL TO elicit information.
Blount county subscribed $40, 900 in aid Of
the Knoxville and Charleston Railroad,
and paid the same in her coupon bonds,
running thirty years and bearing per
cent. interest. Had these teen judiciously
and honestly applied to the purpose for
which they were intended. the people of
the county would have realized, in the en-
HANGED value of their lands and i'm the in
creased facilities for trade and travel, pc
'cuniary benefit corresponding. with the
heavy burthen which they had imposed
upon themselves by the Issuance of said
bonds. But it is said that this has not been
done: that the officers of the Knoxville
and Charleston Railroad Company sold
10000 of Blount county bonds to Joseph
A. hnabry, on q credit, and without any
security that subsequently he executed a
note to the Company for the purchase
money, with Geo. w. Mabry as security (;
that said note thus executed was sued on
in the Circuit Court for Knox county; and
that few days since the Receiver, Presi-
dent and Directors of the Company, by and
with the advice of Judge Mckinney, one
of the States Commissioners for the sale
of delinquent railroads, accepted go acres
of land, worth only about $1,000, in full
liquidation of said note, which amounted
at the time to $2l ,255.
Now this rumor may or may not be true.
If true the people desire to know 1t, and
to know by whom and under what au-
thority the contract was concluded. If
not true these inquiries will enable the
parties implicated to give it an authori-
tative denial. If true, a gross wrong has
been done the public, and there is fault
somewhere. The officers entrusted with
the business of the company, had no right
to invest the bonds issued by Blount coun-
ty to aid in building railroad, in lands,
however valuable. But if thew had it il
bad trading to give $50, 900 worth of Blount
county bonds for $1,000 worth of poor
lands. In this transaction the public loss
is General Mabry's gain. The contracts,
terminating in the result stated were
all made while he was q director of the
company; and it is due to the parties as
we'll as to the public that a full expose
should be made, showing what has been
done and who did it.
1t is also stated that the parties holding
the proxies of Blount and Knox counties,
with full knowledge of the foregoing
fact, as far as they had then transpired
voted for General Mabry for Director OF
said Company. Is this true? If so, who
were the proxies representing the counties
and what apology or excuse have they fol
their votes? The people of Blount and
Knox counties are forbearing of censure
and just in their conclusions, and they
will wait explanation before passing
Judgment on the matter heretofore REFER
ed to.
One other inquiry, Messrs. Editors
Has receiver appointed by the Governor
for the purpose of preserving the property
of delinquent railroad company, the le
gal right to waive upon it and convert sd d,
255 worth of notes into So, 600 of unpro
ductive real estate? And if he should dc
SO, may he and his securities not be helC
liable for the loss?