The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-20

war, had been worth about twelve per cent,
but there were many investments which had
been much sought after that did not pay any,
thing like that. He had been stockholder
| for many years. Had taken some OF the orlg-
nal stock, and had bought some since.
He thought the prospects of the road
in the future were very good, if 1t
were let alone. Owned no bonds Of
the road Thought Its first mortgage bonds
| worth about f(ty-two or ffty-three. Before
| the State intertered they were worth seven
ty-two. Then the State endorsed the second
mortgage bonds and gave them precedence
over the other, and they all fell together to
the level of the State bonds, which were then
worth about fifty cents. The value Of a rail-
road was not what 1t would bring In the mar
ket. As, for instance, the parties In New York
who recently bought bonds of the road at
TWENTY-FIVE cents on the dollar Qf that sale
were valid) could afford to offer more for the
road than those who would have to pay cash.
He did not think that If the road should be
nut up at auction In an assignee's sale In bank
ruptcy it would bring anything like Its full
value. The stockholders would not be bid
ders at all because they do not know how
much the debt ls. No one could enter into
competition with the second mortgages, and
If they were allowed to bid there would be ro
other bidders.
Colonel G. Fl. Simonton was next called as
a witness for the defence, and testified that
he attended q meeting Of bondholders of the
Greenville aud Columbia Railroad Company,
which was held at Columbia last month, aud
at which DR.. J. L. Neagle offered TO take a
lease of the road for ninety-nine years, put
IL In thorough repair and guarantee to pay
the interest on the whole debt Of the road,
disputed and undlsputed. 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 very large amount of money.
He was of the firm OF Branch, Sons e. Co., q
house which had very large TRANSACTIONS In
Richmond, Petersburg and Augusta. Another
gentleman In Columbia had told him that the
Wilmington, Columbia and Augusta Railroad
company stood ready to cover that offer at
any moment.
The defence here rested and the petitioners
recalled Colonel ]. G. Low, the chief engineer
OF the Blue Ridge Railroad Company; who
testified that the average cost Of running the
railroads In the United States was about sew
enty per cent. CT their earnings. Southern
railroads could be operated cheaper than
Northern roads because of the decreased
amount of fuel required and the absence of
severe frost and heavy storms. Thought sixty
per cent was fair estimate for the Green
vile and Columbia road. Did not agree with
Mr.. Magrath that it could be run for fifty per
cent.
This closed the testimony on both sides, and
Mr.. George D. Bryan proceeded to the argyll
ment for the petitioners. He denied that he
or his colleague, Mr.. Corbin, was acting In
the interests of any combination of parties
who wanted to get the possession of the road,
and said they were simply there to represent
their clients, the petitioners. He then argued
that the United States District Court had the
right of Jurisdiction In the case, notwithstand-
Ing the position of the pending litigation in
the State Courts; that the railroad company
was a commercial or business corporation,
within the meaning of the bankruptcy act;
that the coupons for Interest on Its bonds,
payment OF which had been suspended, were
commercial paper; that the road was, there
fore, lnsolvent, and that, since the fact OF
insolvency, the company had made payments
to certain of Its creditors with the effect of
giving them preference over others.
This argument occupied the remainder of
the session OF the court, and, at Its conclusion,
the case was adjourned until Tuesday morn
ing. at which time Judge Magrath is expected
to make his argument on behalf of the COM
pany.