The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-01
THE BLUE RIDGE GRAB.
TIE VAIL OF THE INJURED IND IN
DIGN4NT STOCKHOLDERS.

TIE VAIL OF THE INJURED IND IN
DIGN4Nr STOCKHOLDERS.
A Nice Expose--Ne Fall Bill OF Com.
plaint to the Courts.
The following Is the full text Of the bin oil
complaint on behalf of the stockholders of the
Blue Ridge Railroad, in the action to which
the City of Charleston has now been made q
party plaintiff:
STATE OF SOUTH CAROLINA, COUNTY OF RICH.
LAND-COURT OF COMMON PLEAS.
John H. M4ckay versus the Blue Ridge Rail-
road Company-John j. Patterson az prpsi.
dent, Thomas j. Steers az vice. president, F.
8. Jacobs as treasurer. Thomas Steers. H.
G. WorthiDuton, G. D. Melton, George
Waterman, Hardy Solomons, ]. w. HarTi-
son, Andrew Slmonds, w. j. MagraLh, John
A. Wagner, George S Cameron, Henry
Gonrdin, James M. Allen and Robert K.
Scott, as directors; Niles G. Parker. Edward
B. Wesley and the Carolina National Bank
Complaint for relief, account and Injunction,
&c.
The said plaintiff. complaining on behalf Of
himself and all other stockholders OF the said
Blue Ridge Railroad Company, who shall In
due time come In and contribute to the sup
port OF this action, alleges:
l. That The plaintiff is the owner OF large
number OF shares OF the capital stock of the
Blue Ridge Railroad Company, body eorpo,
rate duly Incorporated by The laws Of the said
State, and defendant herein.
ii. That the defendant, John j. Patterson, is
the president, Thomas J. Steers, the vice
president; and the defendant, F. S. Jacobs,
the treasurer of the said company,
and that the said John J. Pattetson,
Thomas J. Steers, F. 8. jacobs, b. g. Wor-
thlngtun. C. D. Melton. George Waterman,
simOnds, ]. w. Magrath, Johr A. Wagener,
George 8. Cameron, Henry GOurdln, James
NJ. Alien and Robert Z. Scott, are The dlrec.
tors of said company. OF whom the said John
J. Patterson, Thomas ]. Steers, George Water
man, F. S. Jacobs and Hardy SUlom0ns, COM
pose III. executive committee Of The said board
of directors.
III. That only small portion Of the road OF
said company has been constructed, 10 VII:
about fifty miles, aud tue company was. until
assisted by the State as hereinafter mention
ed, wholly .nsolvenr, and Is DOW sIill very
much Involved, having large outstanding In
debtedness.
~. That said company being In an insol-
vent condition as aforesaid, on the 18Th dey OF
September, A. D. 1868, tho General Assembly
or said State passed an act entitled IAN act
Railroad company in South Carolina" and
thereby provided that the Safe OF South
Carolina should, and by liz officers duly au-
thuriz.d 1t did indorse the guarantee OF said
State upon fonr millions of dollars $4,000, ,0OO)
of thu negotiable bonds of the said COMPANY,
pedgng the faith and the funds OF the said
State 10 The payment Of the said bonds; which
said bonds. to the aforesaid amount OF four
millions of dollars, guaranteed as aforesaid,
x,ara dnl fsanad IN aNd railroad C0mUAQV.
v. That the said bonds 80 Issued aud guar
anteed as aforesaid, if honestly and judlciously
managed and disposed OF, would have realized
an amount of money sufficient to have paid
the debts OF the said company, and 10 have
completed Its road, but by reason ol the Inca
pacity, dishonesty, ppculaLions and fraudulent
practices of The officers of said company, u
yery large number OF the said bonds were
diverted from the purpose for which they
were guaranteed and issued, aud were hypoth-
ed for large sums OF money to bankers IN
the CITY of New York aud others; that the
proceeds of such bouds as were sold, and the
money derived from the pledge OF others, as
aforesaid. were almost wholly misapplied,, q
very small part thereof being used 10 pay The
debts OF said company, and to defray the ex-
penses of the construction OF Its road.
vi. That In. order to secure The recovery
and destruction OF the said io'ir million dol
lars of bonds thus guaranteed by the said
State and mlsRpplled as Aforesaid, the General
Assembly oil the Slate, afterwards, to wilt: on
the I'd day of March. 1872, passed an act enti-
tied "An act to relieve the State OF South Car.
olina of all liability for its guaranty Of The
bonds of the Blue Ridge Railroad Company, by
providing for the securing and destruction Of
the sume," whereby the State treasurer was
authorized and required, upon the surrender
by the said company to the treasury OF the
said bonds, to deliver to the president OF the
said company: treasury certificates OF lndebl-
edness (slyled revenue bond scrip to the
amount OF one million eight hundred Lhous-
and dollars Isl 300, ,0O0;) for the redemption of
which said certificates the faith and funds of
the said State were pl-dg-d, and the same
were also made receivabe:by the officers OF
The said State for taxes and otherwise, all OF
which will by the sald act, reference being
thpreunto had, more particularly appear.
VII. That under, and In pursuance of the
provisions Uf the last mentioned act: Niles G..
Parker, the Treasurer of the said StaIe, as au-
thurized and required by The said acr, did, In
the uunth Of March, A. D. 1872, execute, issne
and deliver to defendant, John j. Patterson, as
The president OF the said railroad company, GER
tiflcaIes of Indebtedness Of the State, (styled
revenue bond scrip ~ aforesaid, for about
the aggregate amount OF one million seven
hundred and ninety seven Thousand dollars
ISL. .797. .000) for the use of the said railroad
lent amount Of the said guaranteed bonds.
VIII. That Immediately upun she receipt by
him uf the said revenue bond scrip, the said
John j. Patterson, with the knowledge, con-
sent aud connivance Of the executive COM
mltLee of the board of directors of the said
company, composed Of the defendants atOIe-
said, In pursuance of o conspiracy between
the said directors and others, pledged tie said
certificates Uf Indebtedness, revenue bond
scrip, 10 various trustees 10 the State of South
Carolina aud New York, 10 the amount OF one
million one hundred aud 1fty-seven thousand
collars ISL l57 000) Of said certificates, 10 wit:
TO the CArOlina National Bank, a body corpo-
rate by the laws OF the Unned States, about
furty-sevrn thousand dollars (s47 .000,) for o
loan OF $40, 900; to the Central Natoual Bank
about SIC. 900, lUr loun OF $4,000; u the
defendant, Edward B. Wesley, of The City and
State OF New York, about Sl,005, 900, Tor y
loan of s343, 900; and the ramalnder 10 per
Sons unknown.
TX. hat the moneys received by the seid
executive committee as aforesaid, In The
hypothecaton Of the said certificates as atore-
said, amounting In all to about the sum OF
ionr hundred and ten thousand dollars
tS4l0, 0,000.) have been fraudently misapplied by
The SAID committee, the greater part thereof
to their own Use or the private use OF their
individual members, and to other illegal pur-
pOses..
x That upon the maturing of the oblIga-
tion to the said Central National Bank, Iur