The New York herald., 1877-09-04
The Testimony Taken by the Legislative
Investigating Committee.
RASCALlqY or The CAAPET-DAG REGIME.
Monstrous Frauds Perpetrated on
the Unfortunate State.
BRIBERY, TREACHEHY AND CORRUPTION

t,gatipR Committee, having discharged that duty, ad'
iourned to-day and II now in order to review its
labors with more particularly than has heretofore
bsen possble The secrecy which has characterized
the proceedings Of the committee has already been
made the subject OF comment in the HERALD together
with the reasons which have Influenced the committee
10 th,s course Itis, therefore, sufficient to repeat
here that It been utterly impossible Tor any one
not connected with the Investigation to obtain At any
time the slightest hint as to the direction OF its
researches the number Of the persons most
in the results patient and arduous aoors.
The veil Of secrecy has however, been so Tar re-
moved ss to disclose the pubic the persons OF the
accused aud the same time the meagre statements
contained the formal language OF the indictments
aGord hint, least, OF what is charged against them
II truly that HINT Is all that gwen in these
documents for there Is little nothing beyond the
barsst statement Of the alleged offence in each In
stance contained in the papers submitted Tor the nc
ton of the Grand Jury end which have thus become
the property Of the public With the assistance OF
the cIew thus afforded. however, your correspondents
has been enabed 10 the history Of the transac
lions question back to the period ut which they be-
gun and by obtaining q point mere and point there
from different individuals, and by supplying
others derived IRON published records, be
least enabled TO give your readers tolerably full
and neced OF certain doubtful matters, the
full development Of which will not be reached until
the cases shall have beeu subjected the rigid and
searching scrutiny Of the law.
CHARGES AGAINST SENATOR PATTERSON.
None Of the monstrous indictments jus. made public
have occasioned more excitement and attention. per-
haps than those IN which the name OF Hon.
John Patterson the present Senator from this State
This gentleman stands charged in due form with
the commission OF offences of the serious nature
IN whic hare he b0
course OF a few weeks. when 1t will be determined
whether no will return lll an honorable the
Senate OF the United states be sentenced occupy
convct's cell the Peniteutiary The antithesis Is
startling one, but PLAINLY stated, for II is neces-
sarily and fairly deduced.
The first Indictment against Senator Patterson
charges him with having conspirod with Niles &,
Parker, then State Treasurer, and Hiram H. kmpton
then financial agent Of the State in the city OF New
York, commonly known ''CherubIc Kimpton," 10
bribs Of the Legislature TO vote for
three notorious bills then before that body One Of
them, and the most important of them, is commonly
known US the Blue Ridge Scrip bill; and right here
wish to give brief statement OF the character OF that
bin to enable your readers to judge how lar the
present proceedings may be iairly called ''politca
persecution"
RIDGE
The Legislature in 1853 chartered the Blue Rid ge
Railroad Company and subscribed Tor ST. 900 900 of its
stock. The object Of this proceeding was to secure
the building OF road from the western part of the
State and from Eastern Tennessee to Charleston, en-.
Abing the people Of that city and the eastern part Of
sns State TO get produce Of the West the of
direct transportation for hundred to three hun
dfed miles instead of to fifteen hundred miles
BY roundabout transportation from Cincinnati
or Chicago; and also TO afford the people
Of the whole State the advantages Of continuous line
Of railway from tho mountains to the sea. TINS SUBJ
smpton atterward increased to 81. 900. The
ty Of Charleston subscribed ST. 900 and
citizens Of the State about $780, 600. The total
amount paid in to the company about ST. 700 000
with which about nifty miles of road built through
country whore blasting had 10 be done every foot of
the way, and where tunnels were as frequent as
necessary as bridges any other railroad
would be OF course the war stopped
the work, but when reconstruction began the
hrst word in every statesman's aud merchants
and public mans mouth to finish the Blue Ridge
Railroad. Catching this spirit or taxing advantage of
h, the republican Legislature. 1865, passed act
ITO aid tho Blue Ridge Railroad" authorizing the
Dany to issue Ooo 000 OF bonds and also authorizing
the Comptroller General 10 indorse them with the
guaranty Of the State. 1t should be mentioned, in
this connection, that, before the passage of this act
had fallen the possession OF Patterson
Mcclure and lot OF like politicians from PenDsyl-
vapia with Parker Neazie, Chamberlain and number
political adventurers from other States
than this and Il through the influence OF these
gentlemen that the act IN question was passed VI
the on the state was TO receive for
~ guaranty Of the bonds the completion OF the road
and TO secure this the act provided that the bonds
should not be sold for less than currency, ana
was deemed certain that with the proceeds OF the
bonds, IL sold at par, the road could be completed.
The company tried sell the bonds In New York and
Europe, but capitalists had no confidence in tho men
who were managing II, and consequently no bonds
we're sold large number, however. were hypoth-
seated on wide margins anu al usurous rates. noagh
eomplston Of the road and was never intended
10 be directed to tnat purpose. The men
who had charge OF the company were not railroad
builders, but railroad wreckers. aud In short
time alter the issuing OF The bonds the Blue kidge
Railroad was a wreck accordingly But Patt, and
his companions were equal to the emergency. Tney
had borrowed 5000 600 OF the States money from the
nnsac'a agent on the pledge Of 5000 ooo OF their
laiure requiring the State Treasurer on the surrender
of he remaining sa4oo.oo OF their bonds, 10 issue
revenue bond scrip for ST. 500 V00 which was 10 be re-
deemed by the State the OF $500 OO0 year Tor
three years by the levy of special tax for thar par.
SECULAR purpose.
GIGANTIC swINpLE.
III INC SINKING Fund COMMISSIONERS had already
,wnea BY The State to Patterson and others
individually ior sl3.lOo-that is, at tho
of one cent on the doar--and the bill in ques-
tion validated and confirmed mat swindlipg sale mat
to say the state alter having subscribed 600
Tor The building OF the road and indorsng the
pany's bonds for 81 100000 Tor the OF compet.
Ing IT, was made by this bill 10 up all hope nav.
Ing the road built and 10 raiiy the sale oi lis
one cent on the dollar and TO pay sl.s0o,ooO
for tho privilege ot getting back u part
Of the bonds which 1t had indorsed with
out any other consideration than securing
the com petion OF the road This act, monsuous IN
Its character and crushing In the burden 10 laid
. people already overburdened with taxation, could
not be passed, through the LEGISLATURE oil 1872,
wnhout the pay ment OF enormous 0ribes The aver
age price OF Senator reported 10 be $o.OOO al
though Lester aud Whittemore are reported 10 have
zach received not only that price In money but
$4,000 in revenue bond scrip bcsides Some OF the
Senators, OF course, received less than $5,O OJ0 Tho
members oil the House received all prices from $4,000
OF more 10 Speaker Moses down to 500 or less tor
some Of the 'Turair members.
PAYMENT
10 the arrangement and payment Of these bribes
patterson was The prominent uclor He called to his
aid The most corrupt and desperate characters IN the
republican party aud prom sed large considcra
tions Tor all the votes they could for bis BILL but
he kept the whip rem IN his hand and drove ev.
prything substantially himself OF course he had no
money TO pay tho bribes he promised, but Klmpton
Was at his elbow ana his service. That INN aoulate