The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1872-07-24

of, except few small amounts as sccu-
rity for locomotives. If money were
raised by the Commercial Warehouse
Company, suppose it has gone to |
Kimpton, but [ do not know that. OIL
the 81 500, 900 of second mortgage bonds,
there are 81, 10000 out concerning the |
issue of which there is no record in the
company. The rate of interest to be |
charged by the Commercial Warehouse
Company appears in their demand as
thirty-seven per cent. The bonds in
their hands were sold recently, and
brought twenty-five to twenty-nine and
q half cents.
I'm his, testimony President Magrath
takes occasion to express his confidence
in the ability of this road to work
through its present embarrassment. He
rofers to the case of the South Carolina
Road, the condition Of which just after
the war was, he holds, much more hope
less than the Greenville Railroad is now.
He says:
The Greenville Road has now good
operating capacity. What is required
to bring it into proper condition in all
respects is an expenditure of $4,000 per
year for the next four or five years.
That would be quite sufficient. AS to
the 100000 being required at once to
repair the road, the engineers could not
spend that amount Oh the road if you
gave them the money. The present
condition, material, business and profits
of the road show that the earnings of
the road would furnish sufficient mar
gin, after paying all ordinary expenses,
and the interest on all the acknowledged
debt, to put and keep the road in good
condition. Its income for 1870 being
Ss499 ,341 .5S, for 1871 $4557, IA and for 1872
$500 900, that is sufficient data for the
expectation that it will steadily increase,
except. perhaps, for one year after the
complexion of the Airline Road, when
it's increase may be temporarily disturb
cd. IF its bonded debt should be in
creased to $2,500,0O0, the road could still
carry that and keep its track in repair,
and its equipments adequate, for the
transaction of business. When we took
control of the road, we found it utterly
divested of all present means and re-
sources to pay interest and do other
things necessary for the road. The diff
iculties, however, were not hopeless,
and only required time to enable the
company to retrievei its condition. From
the opportunities T have now had to
understand the condition of the road, [
conclude that we will be able to resume
: the payment of interest on or before the
1st of next January. The road came
under the control of President Bush and
his board in. April, 1870, and so continued
until the 5th of January, 1872. There
has never been any intent in any pay
ments by the company to prefer any
one creditor over any other.
Cross-examined by Mr.. Corbin. do
not believe that seventy per cent. Of the
income of the road is necessary to pay
it's ordinary expenses. I believe fifty
per cent. is sufficient for the running
expenses and all ordinary repairs. The
records show lin the Superintendent's
report for the last six months) that it
has been run for fifty per cent. of its
earnings. I do not criticise Mr.. Doda-
mead's estimate of sixty per cent. in his
| last annual report. He has right to
his OWL opinion on the subject. l do
not agree in his statement that unless
S46G,O 600 be obtained from some other
source than the earnings of the road and
spent upon it in repairing and refurnish-
| ing, its entire earnings will be absorbed
for years to come. Railroad superin-
teudents and civil engineers are gener-
ally very liberal in their estimates.
think with him that S4G0, 900 might well
be spent OH the road, and 1 would like
to have it to spend; also that the work
ought to be commenced at once; but it
is not necessary to spend the whole
amount within u few months. We did
not pay the coupons Oh our bonds (ex-
cept.the first mortgage bonds) last Janu-
larry and have not paid them this month.
The company has not paid any dividend
lately. The capital stock is 81 SOC, 900,
in $4,000 shares, at $40 each. Previous
to my election as President, Mr.. Kimp-
ton.was elected financial agent of the
company in New York. never knew
what his duties were supposed to be.
He appeared to be the President and
Board of Directors of the company. I
never saw any record prescribing his
duties and responsibilities.
Mr.. G. d. Melton, Solicitor Of the road,
testified that he recovered from J. j.
! Patterson $2l 900 and from DR.. Neagle
$37 500, on Second Mortgage Bonds OF
the road, which had been received by
them as their share of the price of the
Continental Telegraph Company. There
are $4,000 shares, which were held in
unequal proportions. Both of these par
ties told witness the whole scheme ;
there were 100000 divided out among
them kimpton received his share.
The charter Of the Telegraph Company
was sold by Kimpton, Neagle, Patterson
and others, and among whom 100000
in bonds of the road were divided.
Mr.. Trenholm thought the road worth
at least S2.50O, COO. He believed that the
road had been grossly mismanaged, but
should be profitable.
Mr.. G.. H. Simonton was next called
as witness for the defense. and testified
that he attended a meeting of bondhold-
ers of the Greenville and Columbia
Railroad Company, which was held at
Columbia last month, and at which DR..
J. l.. Neagle offered to take lease of
the road for ninety-nine years, put it in
thorough repair and guarantee to pay
the interest on the whole debt of the
road, disputed and undisputed. This
offer was guaranteed by Mr.. Branch, of
Augusta, whom the witness knew very
well, whose credit stood very high, and
whose guarantee would be taken for q
very LARGO o,nOI1nt Of nOnev