Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-03-07

cut it, elf off from future inVestlga
ton Of the bonded debt, and from
eliminating all that its proper depart
ment should determine 10 be fraudu
lent?
A. By no means. On the contrary
it was understood that the State re-
served this right, and il was not
| ignored. And it was expressly under
stood that the State would assert her
equities, and this as well to the issu-
ance of the bonds as to their DISPOSE
| ton. This right was intended to be
secured as matter of law, by the in
sertion in the act, bonds legally issued.
[ know that | was very much sur
prised when [ heard that certain
bonds, about which the question of
been received.
@. Have you at any time received
any in formation as 10 money, undue
influence, or bribery, having been
used on the part of any road, or any
party, in securing the reception, on
the part of the States officers of the
BTOWnlOW railroad bonds?
A. None, as / understand the limi~
tatiOns of your question.
@ You are acquainted with the
funding act of 1873?
A. Somewhat.
@ Did you ever receive any infOr-
nation from any one as 10 the use of
money in securing the passage of said
act?
A. Not to any member of the Legis-
lature, but / received information mat
money, or rather prospective profits
on bonds, to the amount of 500, coo,
were Offered and were carried to GER
tain paper, 10 be paid upon the passage
of the bill and realization of profits,
Tor its influence to advocate the meas
ure.
@. Did the said paper advocate the
measure?
@. Please state from whom you re-
ceived this information and to what
persons and paper did he refer?
A. | received this Information from
Col. 2. DuPree, then Of Mem 2his,
now, think, of Texas; and, as he then
stated to me, One-third owner of the
Memphis Appeal This compensation
vas TO be given to the other two OWN
ers, Messrs Galloway and Heating,
who owned a controlling interest and
managed it's political department.
This pay was not TO the firm, but to
the tW o gentlemen above named, and
that he had no interest i'll il.
@. Did you receive information as
to offers made to any other paper from
any one?
A 1 have been informed by Col. A.
J. Kellar, who was then and is now
connected with the Memphis AUG
tanche that u proposition was made 10
Mr.. Thompson as TO him through Mr..
Thompson to give them a certain
Of I tO
use their influence in advocating the
passage OF the Funding Bill of 1873,
but that it was declined.
@. Were you in Nashville at or about
the beginning of the session of the
Legislature of 1873, and if So what
was then your opinion as to the pas
sage of such an act?
A. L was, and did not believe ii
stood any chance to pass. My under
standing was that every member but
one of the Finance COmLuittee was
opposed to il.
@. Have amy payments of interest
or payments of bonds been made since
1878, after it was evident that the debt
under the funding act, or as reported
under that act, could not and would
not be carried?
A. Yes sir, there was, one INSTALL
megt of interest due July 1876, and
this in view of the surroundings might
be Investigated. ID. + THOMAS.
DEPOSITION OF w. NJ. CATO
Taken at Cleveland, Tenr., on Mon
day the l0ch day of February, 1879,
before "a sub cDmmittee of int estiga-
ton composed OF Senator Smith aud
Representative Driver:
II
stock donated by the State of Tenues-
see to the turnpike road known As
the Cleveland and Smith Crossroads
Turnpike was sold at; state all you
may know about that lrausatiOn.
A. | heard a conversation about
those bonds or certificates of stock be-
tween Jno. Z Rogers, the President
OF the Turnpike Company, and z. NJ.
Craigmiies, in which Craigmiles offer
ed said Rodgers 335 cents on the dol
lar aud that he could not take that
price and said it ought to be worth
dollar for dollar, as the railroads were
about out of debt. In q subsequent
conversation between the same parties
Craigmiles charged that Rodgers had
sold Lhis stock to L. II Galloway for
about II cents on the dollar, and ROdg-
ers did not deny it. | have always
understood that this was the price OBJ
tanned for this stock.
@. What disposition was made of
said funds derived from the sale Of
said stock?
A. According to the statement Of
Mr.. Rodgers it was all used on bridge
built over Canady's Creek, aud did not
get it quite completed.
O.. What ought said bridge inclu
ding pillars to have cost?
A. L don't think they ought to have
cost exceeding 81, 200.
@. How much railroad stock was
to this Turnpike Com
pany?
a. My best recollection is That it was
about $50 .000
@. Did you ever hear said Rodgers
say anything about this transaction
A. | asked him why be did not let
CraigmIles have this stock. He said
situated as he was he could not do
otherwise than let Galloway have it.
@. Has said bridge been rebuilt; if
so at what cost?
A. | understand it cost about $685..
@. Do you know what Mr.. Galloway
did with the stock ?
A. | don't know of my own knowl-
edge but have heard that he sold it for
so cents on the dollar to G.. NJ. Me-
Ghee.
@ Do you know of any statement
4. E,r, I, Il