Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-03-08

recon- q eHGeQ legislation 10 pEOtSIt VIZ
State from tn frauds and irregularities.
o. Was not line of policy agreed upon
in the committee to Introduce bills, COM
menci0g with the most fragrant cases, to
subject all these bonds to the proper tests,
and thus reject most of them And were
not bills Introduced in regard to the Min
eral Home bonds and the Tennessee and
Pacific bonds and perhaps others?
4. There was a definite line of action
agreed upon in the committee to put all OF
these bonds of improper Issuance 10 illegal
lest, beginning with the most fragrant
cases. TIE first bill introduced was in ref
ereuce to the Mineral Home bonds, and the
next in regard to Tennessee & Pacific
railroad The legislative action agreed
upon, was by an act to direct the proper
officers Of the State not to recognize these
bonds IN any transaction Of the State, and
to allow tbe roads by proper action in the
court, by suit against the State, to estab~
lish this validity if they could.
=. Now, as a matter of fact, did not this
policy fail, or was it not abandoned be-
cause Of the apprehension IN the minds Of
the Legislature that it would tend to bring
on reconstruction or cOmplic4te our rela-
tious with the Federal government.
a. The policy was abandoned for two
reasons. The most prominent reason was
the fear of reconstruction. The other Tea-
son~was, that if we introduced bill in re-
road, the bonds would be paid to the State
as was the case of the last batch of bonds
Issued to the Tennessee & Pacific railroad
and we felt that we would be thWarted in
our efforts.
O. L see that Gen. Nancy, Treasurer Of
the Tennessee & Pacific railroad, testified
before your committee that the company
at that time held possession of the last
batch of some 885 bonds issued to the road
when your report was made. and the bill
was introduced in regard TO his rOad-was
any further issuance given by any one in
regard TO said bonds If so, state where,
when, and by whom.
A. Yes, sir, there was, After the report
in regard to this road had been made and
read to the House, the Representative from
Davidson county, Mr.. Ray. rose in his
seat, l believe, to question of privilege
and stated that he was authorized by the
Board of Directors OF the Tennessee and
Pacific road, to say, IL there had been any
thing improper in the issuance and reCep-
ton of these bonds, they would restore
them; that they had them in their control,
and ii it was deemed right TO return them,
they would do SO.
Q. How long after this was it, that a
large number of them-over 700-were
paid over 10 the State by the +. T., Ga.
and va. road?
4. In very short timei | don't re-
mem Der tue NAhOA tAAAllbOt VI ud1S IL wa
before final action in due course of lrgisla-
ton could be had upon the bill.
O. Have you ever heard one DR.. Clife
saw ANYTHING about Gen. Nancy and this
transaction ? IL so, what did he say?
A. Recently DR.. ID. B. Clitfe, of Frank
lin, informed me that about the time of
this attempted legislation he met Nancy in
New York when some conversation WAS
had between them in regard to the pend
ing legislation a. 10 said road. and Nancy
that he had put these bonds be-
yond the control of the Legislature, or
words to this effect
Q When were the acts passed allowing
the railroads to retire their Indebtedness to
the State by paying in bonds?
a The first act was passed in February,
1869. The second in January, 1870.
Q. The first allowed them to pay in
bonds of the same series
A. Yes, sir.
Q. How as to the second act and what
was its tenor as first introduced?
4, It's object was simply to amend the
act Of February, 1859, and as first intro
Indebtedness in bonds Of ANY series"
Q Was this amended, and if so, how?
a 1t was amended in the House, whore
the bill was introduced, by inserting the
words legally issued before the words
six per cent. bonds"
Q What was the purpose of the insertion
Of these words
A. 1t was to reserv c to the State the right
to investigate how these various bonds had
been issued, and by proper legislation to
protect herself against any that had been
illegally Issued. Either mir. Steele, of
Marshall county, or myself, had the
amendment inserted. | know we agreed
upon it, and thought by the insertion of
this amendment the State was in better at
titude to protect herself against the fraudu
lent bonds than she was under the act Of
February, 1869.
@ Now, as a matter of fact, was not the
apprehensive OF going any
further at that time to protect herself in re-
gard to these bonds, in consequence of the
unsettled state of the States Federal rela-
.ions?
A The Legislature, 1 think, was de-
erred from going further at the time by
nenaces from the general Government.
q Further, was not the railroads pub
icly warned in the Legislature in discuss
Hg the measure, that II they PAID any but
egally issued bonds, they did so a. their
peril?
A Yes sir, they were.
Q. Please state whether or not this act of
January, 1870 was presented by the roads
md pressed by them
A. I think it was presented at this in
tance, aud l know that its passage was
Sed ny JaAklCS OGLS LAcek pAOACSSO0 W OC
representing thCm.
Q. Do you know of any moneys or special
means being used by them to secure its
passage?
A. 1 know of none; L had my suspic-
Ons.
Q. When you Learned that you sold off
he last batch of the bonds issued to the
tennessee and Pacific road had been paid
o the State, as herein before stated, was
my measure then taken or introduced in
egard thereto?
A. A bill was Immediately drawn by me
nd introduced directing a bill to be filed at
Knoxville in behalf of the State to set aside |
he payment as TO these bonds as fraudu- |
eGt and void, but it failed to pass
ATHA THOMAS.
REV. DAVID LIPSCOMB.
Deposition taken before the committee at |
the Maxwell House, Febru Try 9Th, 1879. |
Said witness being sworn, deposed as |
follows:
Question. Did you, at any time, have any |
BUSINESS or other connection with any rail- |
DAD or railroads of this State? If so,
lease state when, and with what road or
oads2
Answer. In reply, I will state this: In
852 3, l think, l was a contractor on the
Winchester s. Alabama, as it was called
hen, the roal leading from Dechard to
'ay ettevile. Work was suspended OH it
nd its franchises were under mortgage to
ecure contractors and other creditors
ONE year or so thereafter an effort was
riginated to resusctate~the enterprise l
link this was in 1856 and 1857. The city
E Nashville had stook in the road apd