Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-03-08
A. l do not of my own knowledge.

officers of said road or for the contractors OF
said road?
A. sold them mainly for the officers q
the company; may have sold some for con-
tractors.
Q. Did you ever sell any of these Ten
nessee bonds at part
A. Never. The highest price ever sold
Tennessee bonds at was some of the Old
series of bonds with coupons for FIVE and a
half or six years interest attached, which
sold at ninety-eight and a half cents on the
dollar, including these past due coupons.
The highest | ever knew new Tennessee
bonds sold at was seventy-seven cents on
the dollar, and that was on the bull market.
@. Did you know at the time said bonds
were sold that the law prohibited their sale
at less than their face value?
A. | knew that was the old original law
before the war and suppose the law was still
in force.
Q. Do you know of any iron being
bought for bonds, if SO how much more was
paid in bonds than iron could be bought IN
cash?
A. l know of iron being bought and paid
for in bonds for the Knoxville and Ken
lucky railroad. About 80 per cent. more
was charged when paid for in bonds, or the
difference between 20 cents cash for bonds
and par.
Q. Did you ever hear anything said by a
Tennessee bondholGer about applying to
Congress to force the State of Tennessee to
pay the bonded debt of the State? If so,
state all you heard OF know on this su.
iect.
A. Mr.. Halliday, a gentleman that l sold
Tennessee bonds to, and who was a large
holder of said bonds, said to me in the sum
mer of 1868, that if the State of Tenues-
see did not make some adjustment of their
debt, that the bondholders would apply to
Congress for relief, getting the government
to pay them and force the State to settle
their debt.
@. Were you asked to go to Nashville to
use money in lobbying in the fall of 1866 !?
A. Dave Looney came to me and asked
me if would go for that purpose, which /
declined to do.
O. How much money did he offer
to furnish you for lobbying purposes?
A. He said there was a pool of large
sum for those to use that would go. /
think he said the amount was $4,000.
Q. Do you know of any person going to
Nashville about or after that time on that
business?
A. heard that there were persons went,
but do not know who did 60.
Q. Do you know of any Tennessee bonds
being sold and the proceeds invested in
United States bonds?
A. l do not.
@. Did any railroad official direct you to
sell Tennessee bonds and invest in United
States bonds.
A. c. w. Jones, President Of the Knox
vile and Charleston road requested it,
but did not do it.
Q. Do YOU know of Joseph A. Mabry
using money or other valuable things to
secure favorable legislation in the interest
of railroads.
A. do not
Q. Do you know Of any person doinE
A. do not.
Q. Does any book of C. Powell, Green
& Co., in your possession, show evidence
that the law was being violated in the sale
of Tennessee bonds (by order, if you please,
of parties placing such bonds in your
hands,
A. Tennessee bonds were sold by my
firm on account of railroads at less than
rar. This fact our books show. Said sales
were made per instruction and with the
concurrence of certain railroad authorties,
who placed such bonds in our possession.
O Have you learned, directly or indi-
lectly, of improper means being used to in.
huence the Legislature or members thereof,
to pass what is known as the Omnibus
bill" of 1867, giving aid to certain corpo-
rations, or the act allowing railroads to
pay their indebtedness to the State in any
series of bonds, legally issued, on the fund.
ing act.
A. | know nothing of my own personal
knowledge, but have heard rumors from
seemingly creditable sources that money was
used for these purposes.
Q. You state that proposition was made
to you to go to Nashville as a lobbyist,
do you know that others went, or if it was
habitual for lobbyists TO be sent by Wall
street to Nashville when measures of inter
est to holders of Tennessee securities were
pending before the Legislature.
A. My recollection is that parties wen.
from New York to Nashville as lobbyists |
in the interest of bondholders. do not
now remember the names of any parties |
that went. 1t was customary to send lob |
byists when their interests (bondholders) |
were at stake.
Q. Did you. at any time, contribute to
any fund to be expended in lobbying pur-
poses before the Tennessee Legislature?
A. l did not.
Q. Please state any other matter or
thing of interest that will be of benefit to
he people of the State Of Tenn. see til t
7ou may know personally or have obtained
rom other parties.
A. remember nothing more.
Signed C. POWELL.
CLAY ROBERTS.
Deposition of Clay Roberts, taken in the
Senate Chamber, Nashville, February 4,
1879, before S. f. Wilson, Chairman; J.
NJ. Driver and r. H. Smith, of the com.
mittee appointed under House joint reso-
ton No. so. The said witness being
sworn, deposed as follows:
Q. Were you connected in any way with
he State government of Tennessee during
he session of the Legislature of I969-7O?
A. l was Assistant Clerk of the House Of
representatives.
Q. During the term of that Legislature ,
Tas any committee raised by either brancl I
f it to investigate the issuance OF bonds
nd their legality? Il
A. There was, but l don't remember IN a
hitch house the resolution raising the com
littee originated.
Al. too Ng1