The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-07-21

bia Rallrond Company, was next called
by Judge Magrath, aud testified that he
had been instructed by President Ma.
grath last April to go to New York and
ascertain the nature of the claim of the
Commercial Warehouse Company. He
saw the President and two Of the Vice
Presidents of that company, who said
that o cash loan of $3.50, 600 had been
obtained from them by II. FL. Kimpton,
rs Financial Agent of the road, who had
given therefor three notes, signed by
John j.. Patterson, as Vice President of
the road, and that the money had been
given to Kimpton. The loan was made
ut seven per cent. interest. and $500, 900
OF Greenville and Columbia second mort.
gage bonds were deposited as collaterals,
upon the face value Of which the Ware.
mousse Company was to charge five
elgnths per cent. per month commission,
making the commission and interest
amount to thirty seven per cent. per
annum OF the amount of the loan. IF
1t became necessary they were to sell the
collaterals to repay the loan, and for this
they were to receive two and half per
cent. more upon the face of the collste-
rails. The loan was made in tho summer
OF 1871. Three notes were given, each
at tonr months time. for S75. 900. $50, ,OOJ
aud S25, QUO respectively, and dated
June, July and August. No report of
that negotiation was ever made to the
company by Kimpton. In his account
current IN January. 1872. he mentioned
three cash loans for $4,000, $4,000
and $4,000 respectively, which the wit
ness supposed, from the similarity of
amounts, to be the ones above men
toned. The witness produced the mi
mute book of the directors of the Green
vile and Columbia Railroad Company,
and read various resolutions and pro-
ceediugs Of the board. The first was
on May 70, 1872. in which the present
Board of Directors resolved that. in
view OF the indefinite statement of facts
regarding the claim of the Commercial
Warehouse Company; and whereas they
were about to sell the bonds in their
hands, the President be authorized to
take steps to prevent or stop such Gale.
as they regarded the transaction fraudu-
lent. He found no record of $500. 900
of bonds being put in Kimpton's hands
for the purposes of this transaction. On
May 1, 1871, resolution was found,
which was introduced by Joe Crews and
carried, that Kimpton be furnished with
IL,
- bonds to secure the payment of the
- debt. On April %. 1871, an execu.
tive committee was appointed, consist.
ing of Frederick Bush, Joe Grows and
Niles G. Parker. Kimpton's transac.
tions with the company were very large,
and would be naturally supposed to in
volve large correspondence, but the
new board, when they came into Office,
did not find a single letter from Kimp.
ton among the records. On May /, 1871.
resolution was adopted that the Green
vile and Columbia r lilroad COMPANY
purchase the franchise of the Continental
Telegraph Company, and pay therefor
S3S7, 500 in second mortgage bonds. at
par value. On January S, 1872, Patter.
son offered resolution, which was
adopted, saying that, whereas the Presi.
dent reports that ne has been able to
buy the Continental Telegraph Company
for $500, 900, he be authorized to make
such changes in the receipts and vouch-
ers as to correspond with the amount &C.
tuslly paid out. On May 2, 1872, q re.
solution was introduced in the new board
by Judge Orr, and adopted, that the last
mentioned action of the late board hav-
ing been taken without quorum being
present. and could not have been taken
any way without the consent of the
stockholders, it was repudiated and de-
clared void. At the same meeting, O re-
solution. introduced by j. G. Low, was
adopted. which directed the financial
officers OF the company to ascertain the
amount of bonds that had passed out of
the possession of the company without
any consideration being received there
for, and directed the President to pro-
ceed. by litigation or otherwise, to se-
cure the recovery Of the same.
Cross-examined by Mr.. Corbin--
Ki:1pton was the Financial Agent of the
company in New York. His accounts
showed sales of bonds. and tho applica.
ton Of the proceeds to the payment Of
interest and drafts upon him. He &C.
knowledged receiving 1925, 500 of bonds
The first executive committee was Bush,
Crews and Waterman; the next ono was
Bush, Grows and Parker. Do not find
any record Of the late board having re-.
pudiated the actions Of Kimpton, Patter-
son and the executive committee. The
accounts appear to have been duly au
dited. Do not know of anything to i'm
peach the conduct of the Commercial
Warehouse Company in connection with
the loan.
Redirect examination by Judge Ma