The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1872-07-11
,.HoYT 8; CO., Proprietors.
The Blue Ridge Grab.
ANIcE EXPOSE FULL BILL OF COMPLAINT
c$'A TO THE COURTS.

Blue Ridge Railroad, in the action to which
the city Of Charleston has now been made
party plaintiff: q ''''.'
STATE OF SOUTH CAROLINA, COUNTY OF RICH
Ia LA,yD-CoURT OF COMMON PLEAS.
John M. .Mackay versus the Blue Ridge Rail.
road Company-John J. Patterson as presl'
dent. Thomas J. Steers as vice president, F.
S. Jacobs as treasurer, Thomas Steers, 81
"a. Worthington, @. D. Melton, George Wa.
ltermar, Hardy Solomons, J. w. Harrison
ANDREW Simonds, W.. j. Magrath, John A.
Wagner, George S. Cameron, Henry Gour-
din, James M. Allen and Robert K. Scott as
directors Niles G. Parker, Edward B. Wes-
lev and the Carolina National Bank-Com-
oplaint for relief, account and injunction, &c.
The said plaintiff, complaining on behalf OF
himself and all other stockholders OF the said
Blue Ridge Railroad Company, who shall In
due time come in and contribute to the support
Of this action, alleges:
Z That the plaintiff is the owner of large
number of shares of the. capital stock of the
Blue Ridge Railroad Company, a body corpo,
rate, duly incorporated by the laws of the said
State, and defendant herein.
III That the defendant John j. Patterson, IS
the president, Thomas j. Steers, the vice presl-
dent; and the defendant, +. S. Jacobs, the
said John J. Patterson, Thomas j. Steers, +.
StJacobs, ii. 6. Worthington, G. D. Melton,
George Waterman, Hardy Solomons, j. W.
Harrison, Andrew Simonds, w. j. Magrath,
John A. Wagner, George S. Cameron, Henry
Gourdin James NJ. Allen and Robert K. Scott
are the directors of said company, OF whom the
said JohnlJ Patterson, Thomas j. Steers,
George Waterman, F. s. Jacobs and Hardy
Solomons compose the executive committee OF
the. said board of directors.
III. That only small portion of the road OF
said company has been constructed, to wit
about fifty miles, and the company was, until
assisted by the State as hereinafter mentioned,
wholly insolvent, and is now still very much
involved, having large outstanding indebted
ness -
Nv, That said company being in an insol..
vent condition rs aforesaid, on the 10Th day OF
September, A. d. 1868, the General Assembly
Of said State passed an act entitled "An act
to authorize additional aid to the Blue Ridge
Railroad Company in South Carolina" and
thereby provided that the State of South Caro-
lima should, and by its officers duly authorized,
it did endorse the guarantee of said State upon
four millions of dollars (s4, ,O000 000) of the ne.
gotiable bonds of the said company, pledging
the faith and the funds of the said State to the
payment of the said bonds; which said bonds,
to the aforesaid amount of four millions Of dol
lars, guaranteed as aforesaid, were duly Issued
to said railroad company. =.
v. That the said bonds so issued and guar
anteed as aforesaid, if honestly and judiciously
managed and disposed of, would have realized
an amount of money sufficient to have paid
the debts of the said company, and to have
completed its road, but by reason of the inca
pacity, dishonesty, peculations and fraudulent
practices of the officers of said company, Q
very large number of the said bonds were di-
verted from the purpose for which they were
guaranteed and issued, and were hypothecated
for large sums of money to bankers in the
CITY of New York and others; that the pro-
ceeds of such bonds as were sold, and the money
derived from the pledge of others, as aforesaid
were almost wholly misspplied, a very small
part thereof being used to pay the debts of said
company, and to defray the expenses OF the
construction of its road.
i.VI. That in order to secure the recovery and
destruction of thesaid four million dollars OF
bonds thus guaranteed by the said State and
misapplied as aforesaid, the General Assembly
of the State, afterwards, to wit: ON the "a day
of March, 1879, passed an act entitled IAN act It
TO relieve the State of South Carolina OF all
liability for its guaranty of the bonds Of the
Blue Ridge Railroad Company, by providing
for the securing and destruction of the same, y
whereby the State Treasurer was authorized
and required, upon the surrender by the said
company to the treasury of the said bonds, to
deliver to the president of the said company,
treasury certificates of Indebtedness (styled
revenue bond scrip to the amount of one mil
lion eight hundred thousand dollars Il 500 000 y
for the redemption of which said certificates
the faith and funds of the said State were
pledged, and the same were also made re-
ceiyable by the officers of the said State tor
taxes and otherwise, all of which will by the
said act, reference being threunto had, more
particularly appear.
VII. That under, and in pursuance OF the
provisions of the last mentioned act, Niles u
Parker, the treasurer of the said State, as au-
thorized and required by the said act, did, ID
the month of March, A. D. 1872, execute, issue
and deliver to defendant, John ]. Patterson, as
the president of the said railroad company, GER
tifcates of Indebtedness of the State, (styled
revenue bond scrip,) as aforesaid, for about the
aggregate amount Of one million seven nun
dred and ninety thousand dollars ISL
797,OO0,) for the use of the said railroad COM
pany, upon the surrender of an equivalent
amount of the said guaranteed bonds.
VIII. That Immediately upon the receipt by
him of the said revenue bond scrip, the said
John J. Patterson, with the knowledge, con-
sent and connivance OF the executive commit
tee of the board of directors of the said compa-
nv. composed of the defendants aforesaid, in
pursuance of conspiracy between the said
directors and others, pledged the said certiti'
Gates of indebtedness, revenue bond scrip, to
various trustees in the State of South Carolina
and New York, to the amount of one million
one hundred and ffty-seven thousand dollars
($1,157,0 ,0O0) of said certificates, to wit; To the
iyarolina National Rank body corporate by
the laws of the United States, about forty.seyen
thousand dollars (S47 7,OOO,) for a loan of $40,
600: to the Central National Bank about $780,
900, for loan of 1000; to the defendant
Edward B. Wesley, of the city and State o.
New York, about 100000, for loan Of
$343,0OO; and the remainder to persons un'
known.
TX. That the moneys received by the said
executive committee as aforesaid, in the by.