The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1872-07-24
THE GREENVILLE AND COLUMBIA
RAILROAD IN COURT.

4t64ultOAD LIN O0O4t4'
We are indebted to the Charleston
News for full report of tho astonishing
exposures made in the case, ut present
pending in the United States Court, of
Daniel e. Scanned, of New York, against
the Grcenvilie and Columbia Railroad
Company. The petitioner seeks to OBJ
tain judgment of involuntary bank
ruptcy against the Company. The News
remarks:
The case is attracting much attention
in legal and financial circles, as is not
surprising, considering the startling
nature of the revelations that have been
made and are expected to be made of
the past financial management of the
company. 1t appears that it has long
been suspected or vaguely known that
there had been some remarkable irregu-
larities, to use mild term in connection
with the affairs of this company, as has
been the case with all the financial cor
porations upon which the political buc-
cancers who govern this State have
fastened their itching and tenacious fin
gers; that was pretty generally under
stood that there had been large over
issues of bonds, and that since the corr
troll of the road has been obtained by the
South Carolina Railroad Company, a
number of litigations, more or less ami
cable, have been instituted in the State
courts to find out which bonds are legal
and which illegal, and eventually to
| furnish basis for criminal proceeding
against the guilty parties. In the course
of these ligitations, which are taking
place in Columbia, eX-.'udge John 5.
Green has been appointed referee to take
testimony, and large number Of curious
facts relative to- the Bush-Patterson
management of the road are being slowly
unearthed. Now, however, Mr.. Scan
mel, of New York, has brought the pres
ent proceeding to force the road into
bankruptcy and an assignee's sale, by
the success of which proceeding it is
evident that the creditors of the com.
pany, both real and pretended, could
only realize percentage OF their claims
upon the company. This prospect has
had the immediate effect of postponing,
for the time being, all pending litlga,
tions, and uniting all the honest credl-
tors with the officers of the company in
opposition to, the bankruptcy proceed.
ings. They reason that the road is still
good road, its late managers not having
had the ability, although doubtless they
would have had the audacity, to carry
OF the track or pocket the rolling stock,
and that if properly managed hereafter
it can be profitably operated and made
to meet promptly all its legitimate liza
bilities. AS 10 the New York holders
of it's fraudulent paper, they have very
little solicitude or pity to waste OIL them
believing that their acquaintance with
the similar devices Of the Erie Ring
and their knowledge Of the previous
wiles of the carpet-bag railroad politi,
clans of South Carolina, should have
warned them, by this time, even if they
are themselves free from collusiOn with
the frauds, against burning their fingers
as they appear to have done.
We give the testimony in Court o.
Mr.. w. J. Nfagrath, the present Presr
dent of the Company. MIR. Magratf
testified as follows:
The President Of the Greenville and
Columbia Railroad Company at the clest
of the war was Mr.. Hammett. Mr.
Bush succeeded him, and ! succeeded
Mr.. Bush last January. The earnings
of the road in 1870 were S439 81 .5S II
1871 S457, ,144.sO, and during the first six
months of this year they have been
S251 ,37G.62. The aggregate expenditures
during those six months have been
Sl52 SCI so, leaving a surplus OF S9S,'
5l4.S2. The earnings for the next siS
months may be expected, from the eX'
oerience of former years, should be
greater than those for the past SIN
months. It is fair to compute the proba
BILE earning for the whole Of 1872 as moi
less than $500, 900. The increase in busi
ness in 1872 is owing to the development
of the country, and not to any accidental
cause. With the business of the road
Welding $500, 900 or more, there shoult
be a surplus, after deducting the ex
penses of operating, of at least S2oo,Ooo
If the bonded debt OF the company
should be increased to S2,50O,O0O tht
sum of S175,0 900 would be required TO pay
the annual interest, and there woulc
still be surplus of S25 900. The tota
amount of bonded debt of the company
recognized as being valid IS 81 ,9oS, ,G32. -
Whatever other claims are or may Dt
made outside of this amount are disputed
by the company. That amount includes
! ali the bonds of the issue of which there
| is any record on the books of the com
pany. ! do not understand any bonds
to be issued by the company unless ii
be recorded on the books of the company
have reason to believe that other bonds
have been issued. ! know the corpora
ton called the Continental Telegraph
Company. It's charter was obtained oS
one Hall, of New York, with two other
parties. The charter was then sold OF
given to MI. H. II. kimpton.
The books of the railroad company dc
not show any issue Of bonds for the pur'
chase of the Continental Telegraph Com
pany. and contain no record of authority
given to any person to purchase II. Al
a meeting of the Directors, held on the
evening of January 5, 1872, preamble
and resolutions were introduced by Johll
J. Patterson, reciting that the President
| (Bush) had reported a negotiation with
the Continental Telegraph Company
and authorizing him to perfect the ne
eotiation. At that meeting, however,
| the road passed out OF the hands OF
President Bush and his Directors, ana,
at the next meeting Of the Board, it was
| found that the President had made no
such report, and the resolutions were
ignored. The first act of my admins
tration was to deny and repudlate any