The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-01
The Blue Ridge Ring.

The complaint in the case Vi 'onn ~.
Mackay against the Blue Ridge Railroad
Company. printed elsewhere, contains an
array OF charges which, if fully proved, will
Justify the poor opinion in which the MEM
bers OF the Railroad Ring have been held
Inv the peoplc of the State. In that COM
plaiut. it is alleged that large number OF
the endorsed bonds were, "by reason OF the
"incapacity, dishonesty, peculalions anu
fraudulent practices" OF The officers OIL tne
cdmpany. diverted from the purpose for
which they were issued; that tue proceeds Oh
snch bonds as were sold was "almost wholly
..misapplied;" that sl,!o7,OOO of Revenue
Bond Scrip was issued to The President
Mr.. J. J. Patterson, for the use oil the Blue
Ridge Company, and was "in pursuance u
..of conspiracy" pledged to various per
sons to the amount of Sl,0O5, 900; that the
money obtained by pledging the Revenue
Bond Scrip, amounting to S4lO'ooo'. mas
been "frauduently misapplied" by the En-
ocn,tre Committee OF the road, The greater
mart of it "to their own use.or the private
"use of their individual members" that the
balance of the Revenue Bond Scrip, mol
hypothecaied, was paid out 'fraudulenIiy'
.tcorruptly and without any legal consldera-
"tjon tbereupon TO various persons, and,
..amonc others, TO Hardy Solomons, dl-
..rector of said company, $4,000; to Niles
&c. Parker, $40, 900; to H. G. Worthing1on'
..also director, $50, O,OOO;" that "very large
..sums OF money" held by the President and
Executive Committee shave been distributed
"to certain others Of The directors and OIL
..cers OF the said company, fraudulently and
"without any legal consideration there
..nnon ~ tbat. at the time OF the transaction,
Hardy Solomons, II. G.. Worthington and +.
8 Jacobs, and Others, were not legally quail
fed to act as directors. These allegations
are sustained by the affidavit OF Mr.. Mackay,
and by the affidavit Of Mr.. Thomas j. Steers
who swears that he heard President Pat.er-
son say "he had to give Niles G. Parker
"(the State Treasurer) fly thousand dollars
sin scrip before he would sign The Revenue
"Bond Scrip authorized 10 be issued, ana
that he saw s'what purported to be o con-
"tract to that effect" Mr.. Steers also
swears that he heard Patterson say that "he
..paid Hardy Solomon $4,000 in scrip and
"a. G.. Worthington $4,000 in scrip"
The petitioner, therefore, asis the court that
the directors OF the Blue Ridge Railroad be
required to account for its funds; that they
he epioined from receiving any money, or
making any payment, for the comp my; that
all the defendants be enjoined from selling
or disposiug OF any OF the Revenue Bond
Scrip, and that tho road he placed In the
hands OF o receiver. A rule to show cause
was issued, and the arguments will be heard,
we believe, on the 18th instant.
The petition is OF course an ex parte
statement; but Mr.. Mackay and Mr.. Steers
have had some business connections with
the Blue Ridge Ring, aud are not likely 10
have made charges which they cannot sus-
toin. IT. is not at oil certain that it was ln-
tended to push the suit very far, but, how
ever this may be, the City OF Charleston
with it's million dollars OF stock, is made q
party to the suit which must now go on 10
the end. The petition of Mr.. MacEay shows
how necessary it was to act promptly in The
matter, and City Attorney Corbin did well
in beginning proceedings without more de-
lay, and, il he requires any additional coun-
sel, let the Council appoint them. IL re-
mains now to presathe cause steadily and re-
morselessly, for in that way alone can the CITY
protect itself from total loss oil ils property.
We never like to throw good money alter
bad, but, 10 this instance, the outlay is Justl-
lied by the amount OF money.at stake, anu
will be, we firmly believe, paid back hun
dred-fold 30 soon as the guilty parties, who
ever they may be, are made to disgorge the
hidden property Of the road.