The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-07-21


800, 900 Of stock.
An affidavit was read by judge Ma.
grath, which was made by Bentley d.
Hasel, OF New York. who deposed that
on the 1st Of June, 1872, he went TO the
office Of the Commercial Warehouse
Company and served upon Mr.. Navarro.
one Of the Vice Presidents, a notice that
II the company persisted in the sale of
the Greenville Railroad bonds, he would
attend the sale and notify all comers that
the Railroad Company denied the validi.
" OF the obligation and the bonds. That
ne did attend the sale, and notified all
who were in attendance that the Green
vile aud Columbia Railroad Company
had no evidence Of the alleged indebted
ness, that no authority had been given
to any one to contract such an obliga.
ton, that they denied the right of the
commercial Warehouse Company to
mold, 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.. Castella.
mas at twenty-five per cent. of their face
valne, and the remainder by Mr.. Par
sons, at twenty-nine and.a-half per cent.
Mr.. VIM. A. Courtensy, in reply TO
questions by Judge Magrath. testified
that ne was director of the Greenville
Road for two years, in 1868 and 1859.
Believed the rosd worth more than its
legal bonded debt. Was familiar with
the property of the company. Since he
had left the direction, had understood
that large issues of bonds had been made
improperly. The road would easily
carry debt of $2,5OO,O 900. The bust
ness OF the road is entirely local in its
character, derived from the country
through which it passes. With the re-
turning prosperity of that country, it's
business is constantly and steadily in.
creasing. In 1869 that tincrease amounted
to $40, 900. The sources of its business
Will be constantly developing more and
more. The new roads now projected
may be mads tributary to the prosperity
OF the Greenville and Columbia Road
under its proper management. He con-
sldered the value of the Greenyille and
Columbia Road was an increasing value.
The Airline Railroad, in some features.
may be made tributary to the Greenville
and Columbia Road, and it is possible
that at one or moro lesser points il might
draw freights in small amount away from
1T; but, surveying the whole situation.
the airline would. he thought, find large
lines of freight Offering to and from de-
pots in South Carolina, ola the Green
vile and Columbia Road, and it's con-
strnction would be q gain.
Cross-examined by Mr.. Corbin-Was
a director Of the South Carolina Rail.
road Company. Approved of tho pur-
chase OF the Greenviile Road because he
thought it good purchase. The cost
OF running road was generally fifty to
sixty per cont. of its earnings. He had
known roads where the income was en-
tirely absorbed. The cost on the South
Carolina Railroad WAS about sixty per
cent. The interest on its debt was nm.
paid by the Greenville and Columbia
Railroad Company from 1865 to 1868.
Thought that since 1868 the interest had
been punctually paid until stripped by
the ring.
Colonel G. 81. Simonton was next
called as witness for the defence, and
testified that he attended meeting of
bond holders Of the Greenville and Co.
lumbia Railroad Company, which was
held at Columbia last month, and at
which DR.. j. L. Neagle offered to taxa q
lease OF the road for ninety-nine years,
put 1t 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
we'll, 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 6 Co., o
honse 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 rendy
to cover that offer ct any moment. ,F
The defence here rested. and the peti.
TONERS recalled Colonel J. @. Low, the
chief engineer Of the Blue Ridge Rail
road Company, who testified that the
average cost of running the railroads in
the United States was about seventy per
cent. of their earnings. Southern rail.
roads 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 q fair esti-
mate for the Grecnville aud Columbia
Road. Did not agree with Mr. Ma
grath that it could be run for fifty per
cent.
This closed the testimony on both
sides, and Mr. Gaoroa n 1<ryap pro