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

THE RAILROAD CASE.
END OF THE EVIDENCE IN THE
GREAT BANKRUPTCY CASE.
The Testimony Of Experts as TO the
Value of tne Geenvilie Road-Cap1-
taIists Ready TO Lease IL for Ninety
Years and Guarantee Its Whole Debt.
The bankruptcy proceedings upon the Pc
tltion of Daniel E. Scanned, of New York, In
re. the GreenvIlle and Columbia Railroad
Company, were continued yesterday morning
in the United States District Court before
Judge Bryan; Messrs. D. T. Corbin and Geo.
D. Bryan appearing for the petitioner, Messrs.
A. g. Magrath and G. D. Melton and John T..
Rhett, of Columbia, for the railroad company,
and Messrs. Porter d Conner, slmonton &
Barker and John D. Pope, OF Columbia, for
various creditors.
The first witness called was Mr. VIM. A.
Courtenay, VINO, In reply to questions by
Judge Magrath, testified that he was a drec-
tor of the Greenvile Road for two years, In
1868 and 1869. Believed the road 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 s2,5OO,-
900. The business of the road Is entirely local
In its character, derived from the country
through which 1t passes. With the returning
of% %bof hucInaaa Is
stantly and steadily increasing. In 1869 that
increase amounted to 10000. The sources Of
its business will ebs constantly developing
more and more. The new roads now pro-
jected may be made tributary to the prosperity
of the Greenvllle and Columbia road under Its
proper management. He considered the
value of the Greenvllle and Columbia Road
was an increasing value. The Air Line Rail-
road In some features may be made tributary
to the Greenville and Columbia road, and 1t is
possible that at one or more lesser points It
might draw freights In small amount away
from it; but, surveying the whole situation,
the Air Line would, he thought, find large
lines of freight Offering to and from depots In
South Carolina, via the Greenville and Colum-
bla Road, and Its construction would be gain.
Cross ss-examined by Mr.. Corbln: Was di-
rector of the South Carolina Railroad Com.
pany. Approved OF the purchase of the Green
Vile road because he Thought 1t a good pur-
chase. The cost Of running road was
generally fifty to sixty per cent. O. Its earn.
ings. He had known roads where the Income
was entirely absorbed. The cost on the South
Carolina Railroad was abuut sixty per cent.
The Interest on It's debt was unpaid by the
Greenvile and Columbia Railroad Company
from 1865 to 1868. Thought that since 1865
the interest had been phnctually paid until
stripped by the ring.
Mr.. George A. Trenholm was next called by
the defence He testified that he was d.
rector of the South Carolina Railroad Gem
pany. 10 May, 1871, he had had occasion to
examine carefully the affairs of the Greenville
and Columbla Railroad Company. Believed
its property to be worth fully s2,50O,0OO. Be-
lieved 1t would be very cheap at that. There
are two ways of estimating the value of a
road. One is by its cost. The road Is l64
miles long, aud 1t could not have been laid
for less than 81. 200, 900, and the rolling stock
must have cost 100000 or 100000. That
would make It worth fully s2,5oo,o0O. Look
ing at 1t in another aspect, the minimum in-
come of the road should be s45O,oOo. He be-
lieved 1t would soon exceed $500,000. Allow.
ing 60 per cent. of this to go for expenses,
which Is liberal estimate, there would still
be enough LETT to pay good interest On
s2,5O0,000. He owned large amount of
the stock of the company and had recently had
chance to sell 1t at So so per share. Had
refused the offer because he still thought the
stock good property. Believed the road had
been grossly mlsmanaged, but should be pro-
titable. Had always regarded the business OF
the Greenyille road as being different from
that of other roads In this State. The others
are links In great chains of raIsp5rtation and
depend, critically, upon the combinations of
other roads. The business OF the Greenvllle
road, on the contrary, Is local, domestic and
agricultural. 1t Is dependent upon domestic
bHsiness and stimulated by the prosperity Of
the country through which 1t passed. Believed
its prospects were then better than they had
ever been before. He had never considered
tuC uOu-poyhcas VI ~ sho
Greenvllle and Columbia Railroad Company
was loss to the stockholders or
to the State. They had not been much inter.
ested In getting dividends, and the State cot
at all. If (the road being honestly managed)
there was no surplus to divide, after the pay.
ment of the ordinary expenses, it showed
that the transportation had been done for the
mere cost Of doing 1t, and that was the OBJ
ject of the road. If the State got dividends,
the money which thus came into the treasury
would simply be taken out of the pockets Of
the people of the State. The people cared
less for dividends than for economical trans
portatlon The road cost So, ,l0o,0 900, or So, 200,
900. OF that the people of the counties
through which it passed did not contribute
more than $5O0,OO0. Therefore, by doing
without dividends on their half million, they
avoided paying dividends on the remaining
two and halfmillIons. He did not think that
was by any means c:'terion of what could
be made out OF the road. Roads running
parallel to the Atlantic could never compete
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