The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-19

| company to ascertain the amount of bonds
that had passed out of the possession of tht
company without any consideration being re
ceived therefor, and directed the president tt
proceed by litigation or otherwise to secure
! the recovery of the same.
Cross-exsmined by Mr.. CorbIn: Kimptor
was the financial agent of the company iI
New York. His accounts showed sales o.
bonds, and the application Of the proceeds tc
the payment of interest and drafts upon him
He acknowledged receiving s626, 500 of bonds
The first executive committee was Bush
Crews and Waterman; the next one was
Bush, Crews and Parker. Do not find any
record OF the late board having repudiated the
actions of Kimpton, Patterson and the execu'
tive committee. The accounts appear to haze
been duly audited. Do not know of any thing
to impeach the conduct of the Commercial
Warehouse Company In connection with the
loan.
Redirect examination by Judge Magrath:
Kimpton's last account was audited by the
late board of directors. 1t was for $l82, ,S6l so.
have Inspected the account. It ls not cor
rect account.
G. D. Melton, Esq, was next called as
witness by Judge Magrath, and testified as
follows: II am an attorney Of the Greenville
and Columbia Railroad Company, and have
received Instructions and have taken actien
regarding the recovery Of the bonds alleged
to have been embezzled from the Greenvllle
and Columbia Railroad Company by the ContI-
mental Telegraph Company. have met with
some success. Two Of the parties have come
forward and surrendered the bonds held by
them, and have hopes of some others. Those
who surrendered confessed that the whole
thing was scheme to obtain the $500, 900 OF
bonds to be divided up among themselves.
have received $37, 500 of these bonds from ].
L. Neagle, and $4,000 from John J. Patter.
son. They were second mortgage bonds, re-
celved by them as their share of the price OF
.he Continental Telegraph Company. They
were directors of the Railroad Company, and
the purchase money was divided up among
them in proportion to their shares In the Rail-
road Company. They were themselves the
directors OF the Railroad Company, and they
held between them $50, 900 of stock.
An affidavit was read by Judge Magrath
which was made by Bentley D. Hasel, of New
York, who deposed that on the first Of June,
1872, he went to the Office of the Commercial
Warehouse Company aud served upon Mr..
Navarro, one of the vlce-presidents, a notice
that If the company persisted in the sale Of
the Greenville Railroad bonds, he would at
tend the sale and notify all comers that the
railroad company denied the validity Of the
obligation and the bonds. That he did attend
the sale, and notified all who we're In attend.
ance that the Greenvile and Columbia Rail-
road Company had no evidence OF the alleged
Indebtedness, that no authority had been
given to any one to contract such an obllga-
ton, that they denied the right of the Conf
merclal Warehouse Company to hold, use or
sell such securities, and would deny the right
of any purchaser to buy or hold them. That
the sale nevertheless proceeded, and one lot
of the bonds was bought by Mr.. Castellanas
at rs per cent. OF their face value, and tho ro-
mainder by Mr.. Parsons, at 294 per cent.
The court then adjourned until this morn