Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-03-06

phis and Charleston railroads.
Q. How long have you been resident of
New Y ork City, and how long President of
these roads
A. Ihave been resident of New York
City about twelve years. | was elected
President of the E. T., Va and Ga. r. r. in
the autumn of 1870, | think, and as l re-
member, of the Memphis and Charleston in
1874 or 1875.
Q. Where did you reside before yon 10
Gated in New York City?
A. Until 1868, at Loudon, East Ten
nessee, most of the time.
Q, Who was President of the two roads
before you were elected?
A. Mr.. Galloway, of the E. T., Va. and
Ga, until his death; and Capt. jacques
being Vice President, acted as President
until l was elected. | succeeded in the NJ.
and c., Gen. Jno. D. Rather.
Q. Who have been Vice Presidents or
main under-oficers of the two roads under
you?
A. Mr.. Jacques was for while ON the
E. T., Va, and Ga, and Col. C. NJ. McGhee
has been for the last few years, or perhaps
less, on both roads.
Z. Has Col. McGhee also been in the
banking business in Knoxville since the
war; if so, how long?
A. l think he has been in the banking
business here pretty much ever since the
war, but can not state exactly when he be-
gan. He is partner in and Joint owner
of bank.
z Have you a brother in the banking
business at Nashville if so, when did he
commence business there?
A. He was in the banking or brokers'
business there. He is out of it now, be-
heve. L do not remember when he be-
gan business as banker there. He has
been in and out of the business twice, l be-
lieve, in Nashville.
Q. Was Col. McGhee connected, at any
time since the war, with any other railroad
or railroads enterprise in Tennessee if so
with what road?
A. L think he was connected with the
Knoxville and Kentucky or the Knoxville,
and Ohio road. | am not familiar with
his connection with this road. He is at
present President of the Knoxville and
Ohio, and has been for some time.
y. AS President or agent in any capacity
of said road, did he receive bonds from the
State, which bonds were sold or disposed
OF, or hypothecated with your banking
house in New York City?
A. Not that l remember of; | don't think
we ever had or held bond for him.
Q. Did you sell or deal in Tennessee
bonds for any railroad officials or agents
of railroads in Tennessee during the years
1867, '68, $50?
A. don't think did, unless it was for
Mr.. Galloway; don't know that had his.
He bonds 7 fh1n1y e.,
but | don't remember how many or how
long. My remembrance is that he sent them
there as a collateral to borrow money.
Q. see that the E. T., Va. and Ga. r.
r. Co. paid to the State, about the list day
of August, 1870, over 5000 bonds and of
this number there were TAB bonds of 81 900
each that had been issued to the Tennessee
and Pacific Railroad. Were you connected
then with the E. T., Va. and Ga, and did
you get the bonds paid by it to the State
A. l was a director in the Z. T., Va. and
Ga. at that time, and the bonds were sup,
piled for the company by Wilson & Co,
New York city.
Q. Who then, for some time before, con-
stituted the firm of r. 7. Wilson & Co.?
A. c. Ii. Bosher l think, was partner
then, though | am not certain. w. z.
Orme, J. NJ. Johnson, B. f. Wilson, and
whether one of the Galloway boys had an
interest, | am not sure.
@. Whsn did your firm get the 743 bonds
above mentioned, from whom and at what
price?
A, That can not tell you. Possibly |
might tell you if you were in New York,
though this is not certain, for the reason
that we were buying and selling and lend |
ing bonds and changes were frequent and |
the numbers were not left, but the bonds !
we're got in the regular way, according to |
the rules of the New York Exchange, |
which provided that when any new Tennes-
see bonds were purchased to day, to be de-
ivered tomorrow, at any future day, the |
purchase could be fulfilled by the delivery |
IF any new Tennessee bonds, and the same |
rule applied to the loan of bonds. When | |
bought bonds | had no idea what bopds |
would get that is | had no idea as to what |
Dad they had been issued to, and when |
Oaned bonds | had no idea what bonds
would be returned, that is, the roads they
lad been issued to. | don't remember to
lave bought any bonds in the regular way,
hat / had any idea or knowledge Of the
Dads they had been issued to or whether to
my road. / can state further that these
ponds, so far as | know, were bought in
rood faith and in the regular way, every one
# them. In 1870, the lowest price for the
Id bonds were 524 cents; the highest was
o cents. For the new the lowest was
so; the highest 684. In 1869, the lowest
vas, for old, 494; the highest 70 cents. do
lot remember what we gave for the 743
'onds. do not remember now, when or
ow we got them. We may have got
hem by regular purchase, or in return for
onds loaned, but gave the same for them
nat l did for other bonds, if they were
ought. l never knew any distinction made
s to any particular bonds issued to any
artic4lar road. Any stock exchange
rought the same price.
Q. Did not Col. McGhee, who vac in
Nashville on and before this payment of (
Onds was made to the State, notify you I
the report as to the irregularity of {
oads issued to the Tennessee & Pacific
Dad, and that the Legislature, sthen in {
ession had bill pending before it, bill {
eclaring said bonds illegal and void9 ]
A. do not know that he notified me but ]
short time before the payment was made. t
ut after we got the bonds, received the {
formation that there was an attempt being
ade, or would be made, to repudiate these |
onds. cannot, say, however, that | got !
e information from him. !
Q. Did he not notify you soon after the :
syment was made that bill had been in I
Oduced into the Legislature, then in SEES 9
on, in effect, declaring this payment on a
e. n