Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1872-09-13

Railroads. isluEil1 Debt Z Price.
Winchester 6 Alabama. 81, 300, 600 $500, COX
Edgefeld 81 Kentucky......... 800, 900 900, COX
McMinnville s. Manchester 100000 300, OO(
Ooutn western. ..................... 554,OOO 5OO
NJ. O. & Louisville............ 1000, 900 LOO 0O(
Nashville 81 Northwestern. 1000, 600 2 400 COX
Knoxville & Kentucky."..... 100000 800 OO(
Tennessee & Pacifc............. 100000 10000
Total S16,s54, GOOSE, 200 5O(
akr.h ssrz-rFaFz 81 6,2O0500
Net loss ........... $40, 653, 800
You will thus see that the sale of these roads
was clear loss to our State of over ten and
one half million dollars. How do you think
these roads were sold hear you say ITO the
highest bidders at public sale of course" No
gentlemen, they were not sold to the highest
bidders. The Knoxville and Kentucky road
was the only one of said eight roads that was
sold on notice. But the bids were secret, and
road ? One would have thought that inasmuch
as these roads were sold to pay debts that they
would have been sold for all that could have
been gotten for them. But such was not the
case There was what was called minimum
price fixed on these roads. This word mini
mum" means ''the very least" And four OF
these roads were sold at this very least price,
viz the Winchester and Alabam, the Nj Mimi
willie and Manchester, the Edgefed and Ken
lucky, and the Memphis, GAINESVILLE and Louis
vile. But how sold for the very least
price" Why, the Railroad Commissioners
agreed that these roads might buy themselves ct
this Every least price," t.s.t
THE WINCHESTER AND ALABAMA ROAD.
Take this road, for instance. This road not
was largely indebted to others; and all this vast
sum was put into the road, in many cases dol
lar for dollar. But these Democratic Railroad
Commissioners were so obliging as to let this
road buy itself for the pitiful sum of $500, 900
and even this trifing sum was not be paid in
money, but in State Bonds worth about sixty
cents on the dollar. But this bone has too much
marrow in it; and several parties at once began
to fight over it in the Courts. This was
what is called "a fat take and n soft
thing" But the parties finally harmonized and
sold out their bid for stock in another road worth
about S75, 600 and the purchasers of their bid
are reported by the r. r. Commissioners as the
purchasers of the road. You will thus see that
if this road had been sold to the highest bidder
on due notice it would have brought at least
$500, 900. Here was clear o loss OF hundreds OF
thousands. |
THE M'MINNYILLE AND MANCHESTER ROAD.
This road owed the State 91, loo, 0OO and was
allowed to buy itself at the minimum, S3OOOOO
in State bonds This sum was tar below what
the road was worth and so it turned round and
sold itself to other parties (Wicks 1 believe, of
the Memphis and Charleston Railroad.) at an
enormous profit. This shows that if this road
had been sold to the highest bidder, it would
have brought far moro than the State received.
After this road had thus sold itself at an enor-
nous profit, suit was brough against 1t by the
United States for an alleged claim of about S70,-
600, accruing before the sale; and the last Leg
islature at their extra session passed law which,
in effect, indemnifes this road against the pay
iGasm f tSsi aal 81 Gar Of this
vast sum to pay. And what, think you was tne
reason given why the Legislature should IN
demnify this road 1t was ssid that If the state
didn't indemnify the road Wicks, who had
bought it from ITSELF f0outd1It pay them thc
enormous profit on their bid before spoken 81.
l say here what know, that President Wickss
Of the Memphis and Charleston d koad, ana ana
Road carry the Democracy OF Tennessee IN
their breeches pockets. -
THE EDGEFIELD AND KENTUCKY, ROAD.
This is a third road that was allowed to be its
own purchaser at the "yery least price" S9OO, :
600. Here was an exceedingly valuable road. a
road that had costhundreds of thousands OF dol
lars outside of what the State had loaned 1t, q
road that was worth every cent 1t owed the
State. And yet men of capital were shut out
stockholders were allowed to purchase il at this
"yery least price," And what was the conse.
ouence? These stockholders turned right
around and sold their bid to the American BE-
curity Company at an advance OF SZZo,UV
which was Just that much clearly lost to the
State, t
| THE MEMPHIS, GAINESVILLE AMI. LOUISVILLE
-E~@ ROAD,
was also sold at this minimum" to the Nash
| Vile and Louisville road and no notice glVeI
to the world that the highest bidder might have it
| And thus were these roads sold at what nigh
we'll be called ''the to,ceSt bid in State BONDS.
Now, suppose were to borrow ST. coo from ont
of you to buy farm with, and should give you
| q mortgage on this farm to secure you. Ane
suppose you should file bill IN Chaneery U
have this farm sold for your debt. ana sup
pose your lawyer was to agree that might buy
| this farm free from your mortgage for S4OO IL
your own paper Wouldn't you think thu
| Flow down business" and wouldn't you dis
| charge that lawyer on sight? And yet this J
missioners have done. And this they call Dem
ocratic craftsmanship and financiering, and or!
out: "Behold what great things we have done?
THE TENNESSEE AND PACIFIC ROAD.
This road owed the State over 81 COZ
Resides that, it owed Davidson county S3OO, wv
Wilson county $500, 600, and to its stakeholder
SIO0OOO Here was 81, 900 600 ostensibly In
| vested in this road. But as matter of fact thu
road owned 5000, OO0inState bonds under hypoth
| pcAtiOQ, AND yet ACKNOWLEDGEMENTS slO!iNi
6"mocrats ali, allowed this road to buy itsel
for $500. 600 il bonds; and 1 am wholly salts
fed that these 100000 were paid out of TT tn h
very 5000, 600 the road had on hand. In S S.ne
words. this road bought itself from the Stat
with the States own money. And here !aagai
no chance was given to capitalists and raiEoa
to buy ths read at higher opD price sta M
nv n hill in Chancery? The Southwestern roa
owned rs bonds, and these were attache ?!
Gentlemen, all this shows criminal imbe zee III
or deliberate knavery. But they call 1t Den
ocratic craftsmanship" .
NASHVILLE AND NoRTHwEsTERN ROAD.
But here is the master wrong. The interes
, of the State were bartered for miserable me me
] of pottage in the case of the other roads o. o.
her interest in this road was given away foT u
: very dreqs of this mess This road owed u
e State over 81, 600, used in its constructlo
. and equipment. Millions of other money hs
= been expended upon it. 1t was road OF e;
! ceeding great value the last link IN ch .,
= | {ho MiSsiSsiOnI with u