Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-03-06
THE EVIDENCE
Taken Before the Committee In
vestigating the Validity of
the State Debt.
An Interesting Chapter in the Political
History of Tennessee.

The following is a portion of the testimo
ny taken before the committee appointed &c
investigate the State debt. 1t throws
some light upon the much discussed sub
iect. The first witness whose testimony is
published was General Joseph A. Mabry,
Of this city, who deposed as follows:
DEPOSITION OF J. A. MABRY.
Taken at Knoxville, February -, 1879.
Said witness being sworn, deposed as
follows:
Question. Were you at any time Presi-
dent of any railroad in Tennessee; if so,
when and for what period or periods?
Answer. | was President of the Knox
vile & Kentucky Railroad, and was from
about 1857 or 1858 up till about 1864, and
was again President of said road about No
vember. 1867, and acted as such till | was
made Receiver under Governor Senter,
about September, 1869
Q. Who was President before you were
elected on or about November, 1863?
A. Col c. NJ. McGhee.
Q. How many bonds in aid Of said road
uiu you iSCSANe do ACS1uSHI lAOiA 'llS
State?
A. | don't remember. have no Data or
memorandum now by which / can tell.
l suppose my receipts to the Secretary will
show.
Q. What disposition was made of said
bonds ?
A. Some ofthem were sold and some paid
out to contractors. Three or five bonds
were lost or stolen, which accounted for
to the company at 81 or 65 cents.
Q. What amount was sold, and by whom,
and what amount was paid out to con-
tractors?
A. don't remember, and have no
means Of ascertaining.
Q. Did you and Gen. Geo. Nancy en-
gage in any speculation or speculations in
New York and elsewhere, in which you
deposited Tennessee bonds to cover the
margin demanded?
a. We did.
Q. When was this? What amount of
bonds did you use in your operations, and
with whom, or through whom did you
transact your speculatiOns?
a. In the latter part of 1869 | first sent
500, 900 in bonds. Afterwards Nancy
sent or placed in bonds $4,000 and de
posted them to my credit, making in all
Sl50,000. They were placed with Taylor
Bros, Brokers, of New York City.
Q. We're you and Nancy Jointly inter
ested?
A. We were jointly interested. had
two accounts-one as Mabry individually,
and one as Mabry 4 Co., and he was inter
ested in the latter. This is my recollection
of the style of the accounts.
Q. Were these bonds deposited with your
brokers as margin in your speculations, the
bonds received by you to aid in the con-
structiOn of your railroad, or bonds pro-
cured in exchange for them, or with the
proceeds of bonds thus received by you
and him
A. The bonds deposited there by Nancy
were bonds received by him, as / under
stood and as / supposed, to construct the
Tennessee K Pacific Railroad, ard the
bonds | placed there were bonds loaned me
by Nancy, and l supposed they were the
bonds issued to construct the Tennessee d
Pacific.
Q. Did you have contract with Nancy
in regard to any bonds for your services
with the Governor in getting him to issue
the bonds to the Tennessee & Pacific; if so,
what was it?
A. / did. was to be compensated in
addition to having the use of 100 or more
bonds for my services in getting the Cover
nor to issue the last batch of $50 bonds to
the Tennessee & Pacific Road.
Q. What services did you render, or
what arguments did you use with the Gov
ernor to induce him to order the issuance
of this batch of bonds?
A. | am satisfied that | induced him to
issue them, but cannot now remember what
| used. use no other means
except my personal arguments and personal
influence with him.
Q. Did you use any money or other thing
of value?
a. did not.
Q. Was wine, whisky, brandy, champagne
or any kind of drink or drug or intoxi- |
eating influence of any manner or such |
used upon the Governor to induce him to |
issue these bonds
A. Not that l know Of / did not use
anything of the kind.
Q. How many bonds did you or Nancy
lose, or what profits did you make in your
New York speculatiOns?
A. We lost largely in money, the exact |
amount am not able to state. | have no |
means here of ascertaining. Perhaps / |
might find out by looking over my old pa
pers. Nancy went on and paid the losses
and redeemed the bonds. | DO not know,
however, what became Of the bonds.
Q. How many, or what amount of bonds |
received by you as President of railroad |
from the State, did you use in speculation
D. otherwise than building the road to and |
or which they were issued?
A. / Will have to consult my lawyer be- |
ore / answer this question.
q. Did Won ever pay any member Of the /