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The Macon Daily Telegraph
FOUR PAGES
MACON, (tA., SUNDAY . MORNING, MAY 24, 1908
THIRD SECTION
Hoke Smith's Connection With
The Georgia Southern Failure
On May 12, 1895. Mr. John T. Boifeuil-
let wrote a seven-column news story for
the Atlanta Constitution Riving: the his
tory of the Georgia Southern and Florida
Railroad from Its inception to and
through the failure of the Macon Con
struction Company, up to the time it was
bought In by the Southern Railroad. This
is an interesting part of that story:
About this time, when the Georgia
Southern and Florida was operating under
full headway and was doing a thriving
business, and the Macon and Birming
ham was about completed to LaGrange.
and work was progressing rapidly on the
Macon and Atlantic, and Macon " Con-
structlon stock was selling 3 for 1. or
$30,000 * or $10,000. President Sparks
commenced negotiating with President
Robinson, of the Seaboard Air-Line, for
the sale of the Georgia Southern. He
went North for the purpose of consum
mating the deal.
"Tell Our Stockholders."
On February 20. 1891. the city of Macon
was shaken from center to circumference
b v a telegram from President Sparks, of
the Macon Construction Company, an
nouncing that the Seaboard Air-Line had
, leased the Georgia Southern. Here is a
ropy of the magic and official telegram,
as received by President George B. Tur-
Pjn* <?f Georgia Southern, about 3
o clock n. m.:
_ “BALTIMORE. Feb. 20. 1891.—To
JiCrffiXJP B. Turpin. President Macon. Ga.
—Kv.cr.nson builds the road at once to
Elberton. guarantees interest on our
bonds at 6 per cent and 0 per cent on
$2,000,000 of our stock until the gross
earnings shall be $1,000,000. when the
guarantee Is to be 7 ner cent, there to re
main. Tell our stockholders.
"W. B. SPARKS. President."
The effect of this telegram was elec
trical. Not only the stockholders, but
every one in the city was told the thrill
ing news. The afternoon papers an
nounced it. and there was general re
joicing—a regular love feast. All the
bright dreams concerning the Georgia
Southern system were about to be real
ized. Macon Construction stock went
booming to $40,090 per share. 4 for 1.
A sale of a quarter of a share is said to
have been made at $10,280. or at the rate
000. The populace seemed to have
Lild. and Mr. Sparks was the hero
|hour. If he had not had faith in
with Robinson be could easily
Imposed of his four shares of stork,
lost him $40,000. for $150,000 and
live pocketed hundreds of thons-
[pre.by using the information to
I'*te gain, and advantage. “Tell
F:kholders!“—no speculative jobs
fo private advantage to be used or
given awav. The head of a splen-
[rporation. fronting opportunities of
lal gain that would be regarded ns
nate and eagerly seized bv many
1 called reputable in the business
woim. Quietly and resolutely put them
asider^HIs first message was to the offi
cial hfeid of the railroad, open and ex
plicit. the request emphasized in
climax |o give every single stockholder
on equal chance in the opportunities and
the pleasure created by his masterstroke.
Robinson Arrives in Macon.
On March 5. 1891. President Robinson.
L. McLean, of Baltimore, a director of
the Seaboard; General Manager Winder.
Hon. Hoke Smith and others arrived in
the city at 10:45 o’clock a. m.. and re
mained at the Brown House until the
next day. when they left with President
Sparks on a tour of inspection of the
line.
On March 10. 1891. President Snarks re
turned alone from Palatka. and President
Robinson went back to Baltimore via
Savannah. This was significant. and
meant that Robinson had declined to
stand to his agreement to lease the Geor
gia Southern. The agreement was made
based n r\ earnings of $800,000 per annum.
A.i examination of the books of the Geor
gia Southern showed that these figures
were correct.
To Hon. Hoke Smith, more than to any
one else, the Georgia Southern manage
ment thinks Is due Robinson’s refusal to
iease the road.
On the night of March 8th. at Palatka.
the thunderbolt fell. President Robinson
then, for the first time, informed Presi
dent Snarks that he would not take the
road President Snarks could obtain from
President Robinson no definite reason for
this decision.
President Sparks returned from Pa
in tka on Tuesday morning. To only a
f«w of his intimate associates In the road
did he tell of- Robinson’s withdrawal from
the agreement. The matter was kept a
profound secret during the day.
The Great Crash.
That night, about 8:30 o’clock. March
10. 1891. Judge A. L. Miller, of the Macon
circuit, signed an order appointing Pres
ident Sparks temporary receiver of the
Macon Construction Company and its
properties. He was afterwards made per
manent receiver. The petition and bill
for receiver were presented bv Hardeman.
Davis & Turner, attorneys for the con
tractors. McTighe ft Co. McTighe ft Co.
had that afternoon filed two liens against
the company and roads. One of the liens
was against the Macon and Atlantic Road
for $298,000. They had no security ex
cept $100 000 of bonds of the Macon and
Atlantic Road. Only fifteen miles of the
road were completed at the time of the
collapse, and upon that 8300.000 of bonds
h9d been issued. 8200.000 of which bad
been hypothecated bv the Macon and Sa
vannah Construction Company to the
creditors.
McTighe ft Co.’s second lien was
against the Macon and Birmingham Road
for $99,000. At the time the lien was
filed McTighe ft Co. had $91,000 of Macon
and Birmingham bonds.
United States Court Feared.
Tt has always beep the understanding
that the action of McTighe ft Co. against
the. Macon Construction Company was a
friendly suit, agreed on and understood.
It is said that one reason why their pe
tition was filed so soon after the arrival
of Sparks from Palatka was that, the
construction comtwnv did not wish the*
petition *or receiver to be brought in the
United States Court, as was possible by
some foreign creditors.
On the night of the appointment of Mr.
imparks as receiver but verv few people
knew it. Newspaper men learned of it.
and about 11 o’clock one of them called
at Mr. Sparks' house to get an interview
with him about the matter. Mr. Snarks
was in bed asleep and when awakened
bad nothing to sav for publication. Very
men. similarly situated, would have
Y _T-tbe composure to sleep. Manv did
Jfctecpless nights or. account of the
But thte demonstrates the iron
Mr. y-orirtes has always been
known to possess. He was the one man
above all others naturallv to b« the most
affected All his dreams of ambition and
wealth had been dissipated, and hopes of
successful nrolects bla«t#»d in a single
hour Tie had been suddenly and ruth
lessly cheeked in bis phenomenal career
of enterprise and development.
And yet b^ could sie^p!
The City Startled.
The next morning the citv was startled
by the announcement of the failure. It
h&d never before experienced so great a
shock. Business was paralyzed for the
time being, and trade prostrated. Men
saw fortunes glide away and pass from
sight and reality forever. The public be
came alarmed through fear that bank-
. ruptev might overtake business houses
and financial institutions. The conster
nation increased when it was announced
that the Capital ' Bank. W- U. Virgin
president, capital stock $100,000. had as
signed to Vice-President W. W. Collins.
The hank had advanced largely on Macon
Construction stock. The bank has never
resumed business. No other bank col
lapsed. Quite a number of business
houses that have gone to the wall some
time since the collapse of the Macon Con
struction Companv date their trouble to
this crash. Merchants rated over $100.-
000 and who-did not own more than $.5,009
of Construction stock charge their em
barrassment to the Construction disaster,
v. How Much Money Was Lost.
It is difficult to estimate the losses in
this city by the Construction failure.
Some sums bad been loaned on the stock
at more than a million dollars. Much of
the stock sold at 3’A for 1. Then la rye
sums had been loaned on the stock, whlrn
have never been paid back, and the stock
seif, of course, is worthless. Losses to
ado and investment by the demoralizing
Toots of the failure cannot be accu-
uely estimated and will never be
MiaVa has been perhaps as much as
pi 59.000 lost in the fluctuating value of
ti e bonds o? the Georgia Southern. Bonds
that were bought at $100 have beep sac
rificed at $60. At one time the bonds
went as high as $101. with accrued inter
est. and then tumbled to $53. At one
time fully $1,500,000 of the bonds were
owned in Macon, but they have gradually
dropped -into the hands of other parties
until now perhaps there are not over
$100,000 held in this c|ty. Since the con
firmation of the sale of the Georgia
Southern the bonds have’advanced a few
points and - are now worth about $90.
Nearly all of the bonds have been pooled
under an arrangement made in 1892. The
bondholders met in Baltimore and ap
pointed a bondholders’ committee, with
H. P. Smart, of Savannah, chairman, to
protect the interest of the bondholders.
It is this committee that has purchased
the Georgia Southern Road for the bond
holders.
Assets and Liabilities.
The assets and liabilities of the defunct
corporations form an interesting study.
A statement of these filed at the time
the receiver was appointed shows the fol
lowing:
First Is the Macon Construction Com
pany:
ASSETS.
Thomasvillc division .$
Cycloneta farm
Beach Haven
Real estate
Stock of other corporations...
Stocks, bonds and notes de
posited as collateral for loans 2,252.500.00
Macon and Savannah Con
struction Company
Four thousand two hundred
and seventy-five shares of
stock Georgia Southern Road
not issued, at $1,000 per
share 4,275,000.00
One thousand four hundred
and fifty-five shares stock
Macon and Birmingham
Road not issued 1.455.000.00
Lots at different stations.... 30.000.00
26.222.46
56.980.13
7.S47.67
66.212.41
27.000.00
63.299.56
9.379.97
20.000.00
15.019.68
8.000.00
Total assets $8.265.250.30’
LIABILITIES.
A. Backer $ 374.791.90
Pills payable 1.603.069.02
Rhode Island Locomotive
Works
Sundry contracts, about
Exchange Bank
Vouchers and estimates sub
ject to adjustment
Total liabilities $2,029,212.09
BILLS PAYABLE.
The bills payable are as follows:
A. Backer. Nfw York $ 295.312.50
National Bank of Baltimore.. 25.000.00
Fidelity and Deposit Co. of
Baltimore 25.000.00
G. Ober ft Sons. Baltimore... 75.000.00
Exchange Bank. Macon 65.999.05
Hanover Nat. Bank. N. Y.... 212.0OO.00
Standard Oil Company 3.577.35
Diamond State Iron Co.. Wil
mington. Del 20.713.46
Lackawanna Iron and Coal
Co.. New York 460.189.S9
Car trust notes.
For the Macon and Birmingham Road:
U. S. Rolling stock Co.. N. Y..$ 92.243.34
Bank State of New York ... 53.752.77
For Georgia Southern and Florida:
Post. Martin ft Co.. N. Y. .. 1S4.192.29
For*Macon and Atlanta Road:
C. S. Rolling Stock Co 21.390.11
Bank State of New York .... 20.696.76
Total bills payable $1,603,069.02
DEPOSITS OF BONDS.
The following bonds, stocks, etc., have
been deposited bv the Macon Construc
tion Company with the following parties
as collateral to secure loans, etc.:
Nine hundred and eighty-five bonds of
the Georgia Southern and Macon and
Birmingham are deposited with A.
Backer, of New York:
f I , «vo hundred and fifty Georgia South
ern bonds with Hanover National Bank.
One hundred find fifty Macon and
Birmingham bonds with National Bank
of Baltimore.
One hundred and fifty Macon and
Birmingham bonds with G. Ober & Sons,
of New York.
Six hundred Macon and Birmingham
bonds with Lackawanna Iron and Coal
Company.
Fiftv Macon and Birmingham bonds
with Fidelity and Deposit Company, of
Baltimore.
Fifty Macon and Birmingham bonds
with Exchange Bank, of Macon. This
bank also holds a mortgage on the Ocean
Pond property In Lowndes County, ap
praised at $13,528.22. and on the Potato
creek property, in Upson County, ap
praised at $8,348, and there is also de
posited with this bank as collateral about
$50,000 'worth of shares of stock in the
Cordele Hotel Company, manufacturing
company, shoe factory, guano company
and the Cordele Bank: also in the Geor
gia Fruit and Vegetable Exchange, and
Elherta Peach Companv. The bank also
holds a $20,000 note of the Macon Con
struction Company.
Second—The Georgia Southern Rail
road:
ASSETS.
Construction $2,961,807.51
Equipment 801.942.56
Total
$2,763,810.10
LIABILITIES.
Bonds 1 $3,420,000.00
Accounts 77.872.00
Wages 42.102.00
Total
Third—Macon and
road:
ASSETS.
Construction $l.°8°.?56.r*3
Equipment 253.342.00
Total $1,535,599.52
LIABILITIES.
Bonds $1,940,000.00
Accounts . 8.000.00
Total
.$1,948,000.00
holder this question: "What do you sup
pose Hoke Smith’s fee will be?" The re
ply was $50,000. Col. Smart replied:
“Yes, I suppose so, for you know a cab
inet officer comes high. But.” continued
Col. Smart, “if the fees are beyond all
reason we can appeal to a jury.” Col.
Smart was evidently under the impression
that though the fees were a matter of
contract, as lawyers claim, the law did
not arbitrarily require the payment of
them if proper objection was made. Just
pause for a moment and consider what a
jury would have done with those fees!
It might have given Mr. Smith $5,000 and
other lawyers in proportion. If the truth
was known it might be that Col. Smart
was consulted very little as to what the
amount of the fees should be.
Smith and Sparks.
Here Is a bright bit of gossip that has
been communicated to me by a bond
holder in connection with this question of
fees. He says that Receiver Sparks and
Mr. Hoke Smith and others were in a
room at the Hotel Lanier. T believe he
said, a night or so before the confirma
tion of the sale. They were discussing
“fees." ,
It is said tnat Mr. Sparks spoke of put
ting in his claim for $100,000 as addi
tional compensation for his services as
receiver. Mr. Smith was astounded at
the sum presumably, because Mr . Sparks
is not a lawyer. Such a fee Mr. Smith
doubtless thought was not equitable or to
be tolerated outside of the lega’ ^profes
sion. Mr. Smith protested. Mr. Sparks
explained that the burden of man
agement of the road had been bpon him
during all these trying times of the re
ceivership. and that he had handled mil
lions of dollars- and on this account
should be paid proportionately. Mr.
Smith hooted at this line of reasoning,
and said Mr. Sparks ougnt not to expect
payment on every dollar that massed
through his hands. In illustration of this
point. Mr. Smith cited the fact that he
was interested in a certain baqk in At
lanta. the cashier of which handles mil
lions of money during the year, but this
did not entitle the cashier to participate
in every dollar that passed through his
but was disappointed. He determined to
have his revenge. He accordingly gave
the bondholders’ committee much annoy
ance in the eourts. and finally obtained a
satisfactory price for his bonds. His at
torney. Leopold Wallach. may have
played a bluff game in Macon, but it
won over a full hand.
The. debts of the Georgia Southern are
comparatively small, and will soon be
liquidated. The Construction Company,
however, is loaded down with an incubus
that can never be shaken off. Its stock
will never be worth a nickel. Moonshine
is far more valuable.
Large Fees to Lawyers.
A most interesting feature of the con
firmation. and one around which hovered
much public interest and curiosity, was
the amount of fees to be allowed the at
torneys. etc.
The biggest plum went to Secretary of
the Interior Hoke Smith. Congressman C.
L. Bartlett and Washington Dessau. They
were given a lump sum of $60,000 for
their services as attorneys fo** the Mer
cantile Trust and Deposit Company, of
Baltimore, the trustee for the first mort
gage bondholders. Mr. Smith was lead
ing counsel and he associated Messrs.
Dessau and Bartlett with him in the
case. It is understood that Mr. Smith
split the fee right in half, reserving $30.-
000 for himself and giving $30,000 to Des
sau ft Bartlett, which, it is presumed,
they divided equally. The fee of $60,000
is really regarded as having been paid
to Mr. Smith alone and he shared with
the two Macon gentlemen, who rendered
the bulk of the services on their side of
the case. He named his fee and got it.
The Mercantile Trust and Deposit Com
pany was allowed $20,000 for Its services
as trustee for the bondholders. It is a
mvsterv to the public why the concern
was allowed so large a sum. especially
in view of the fact that when the bond
holders deposited their bonds with the
company a payment of $3 on each bond
so deposited had to bo made to the com
pany. This of itself amounted to a snug
sum—at least $9,000 or $10,000. This S3
assessment on each bond was to defray
“expenses."
A. O. Bacon was allowed $4,375 as at
torney for the receiver from March. 1891.
to December 31. 1892; and the firm of
Bacon & Miller was allowed $5,625 as at
torneys for the receiver from January 1.
1893. to the present time. Tn other words.
Messrs. A. O. Bacon and A. L. Miller
were allowed $10,000.
Gustln. Guerry ft Hal! attorneys for
the receiver, were allowed $1,000 on ac
count of fees for services in representing
the receiver. This is in addition to the
regular salary of $10,000 per annum that
has been paid them as attorneys for the
receiver since the road went Into the
hands of the receiver in March. 1891.
The commissioners of sale. J. L. Harde
man, R. A. Nisbet and T. B. Gresham,
were each allowed $1,500. or a total of
$4,500. for their services in selling the
road at public outcry. The original com
pensation fixed for each * commissioner
was $1,000. but the .amount was Increased
to $1,500 each, as they performed services
not contemplated at the time of the fixing
of the compensation.
R. A. Nisbet, clerk of Bibb Superior
Court, was allowed $1,000 .on account of
his costs against the Georgia Southern
and Florida, and was allowed $263.29 costs
against the Macon and Atlantic Road.
Roland Ellis was allowed $150 for ser
vices rendered in making out reports and
examining records.
The total amount allowed in fees and
costs was $96,650. Of this the lawyers
receive $71,150. Mercantile Trust and De
posit Company $20,000. commissioners of
sale $4,500. clerk’s costs $1,000.
The regular salary that has been paid
Gustln, Guerry ft Hall as attorneys for
the receiver, since March. 1891. at $10,000
rer year, amounts to more than $40,000.
Hardeman. Da^I« & Turner haw been
paid about $6,500 for fringing the receiv
er's bill into court. If these two amounts
Of $46,500 are added to the $71,150 the to
tal amount allowed in lawyers’ fees on
account of the receivership of the Geor
gia Southern and Florida Railroad is
$117,650 to date.
Of course there are other attorney fees
growing out of the Macon and Birming
ham Railroad and the Macon and Atlantic
Railroads that are not included in the
above sum of $117,650.
A Bombshell of Surprise.
The large size of some of the fees has
fallen as a bombshell of surprise and as
tonishment In this community and
throughout the State. The matter has
been the subject of considerable unfa
vorable comment and much harsh criti
cism. Public opinion does not approve
of the law that allows such large fees.
Of course, there are two sides to the
question. The only persons who endorse
the large fees are the lawyers. They say
that the fees are right and proper, and
not out of proportion to the services ren
dered. as they cover a period of several
years, and the fees were a matter of con
tract between the attorneys and the
bondholders, and were paid only bv the
bondholders, and without detriment to the
interests of any other creditors of the
road, and without prejudice to any
claims against the property. Some of
the lawyers become very indignant when
the justice of the fee is attacked, and
say the matter is no concern of the pub
lic. They say the chairman of the bond- _ , . _ . , ...
holders’ committee. Col. H. P. Smart. To the-people of Georgia (with par
was present when the fees were agreed ticular emphasis on the first two and
on and offered no objection or protest, i . . . TT , - ...
and. what is more, that the fees had been , the last two words): Hoke Smith
agreed on months prior to the confirma- j came before the people of Georgia in
tion of the sale. ,
The answer of the public to all this can i 1906 as a candidate with two issues,
he expressed in the voice of one who ; viz., negro disfranchisement and the
has many thousands of dollars invested in j regulations of the corporations. He
' was nominated and elected, and the
I consider Mr, Smith f fee exorbitant _ • « . _i ri j : „ law* —
and calculated to break the public faith i Legislature enacted into la* **
in the justice of the lav/ and. courts, pressed will of the people as ao\o-
While It may be true that the fees cover* cated by Mr. Smith. Mr. Smith
hands, and. accordingly, he was only paid
a certain salary per annum.
Remarking upon this Incident the bond
holder said to m?: “I certainly think It
was very Inconsistent In Mr. Smith to
object to Mr. Sparks’ proposed fee of
$100,000, for more than four years of con
tinuous dally services as receiver, when
Mr. Smith had on Ice a $60,000 fee for le
gal services which would not cover two
weeks of continuous labor."
It is said that Mr. Sparks will petition
for extra fees as receiver at a later date,
perhaps, when he is finally dismissed
from the receivership. He has been paid
$6,000 per year as receiver of the Georgia
Southern and Florida Road, since it has
been operating under- a receiver. March
10. 1891. He also receives $1,200 per year
as receiver of the Macon and Birming
ham Railroad. As receiver he has cer
tainly managed the property well and
economicallv. The roadbed, trade ana
rolling stock are In excellent condition,
and traffic and travel are large and in
creasing
On the eonflrenatlon of the sale Receiver
Sparks repoifvd that he had on hand
$94,000 in ca:lt arising from the earnings
of the Georgia Southern and Florida
Railroad. Judge Griggs ordered that he
pay $50,000 of this amount to the com
missioners. Hardeman. Nisbet and Gres-
ham. to be used by them in the payment
of the various fees, claims, etc., allowed
bv the court. This made a total or
$350,000 that the commissioners had In
hand, to-wit: $50,000 paid hv the pur
chasers on the dav of sale. $3a0.000 paid
hv the purchasers when the sale was con
firmed. and the $50,000 paid by Receiver
Pnarks The commissioners deposited
the amount in the Exchange Rank, sun-
ject to their check. When Mr. Smith
departed from Macon on April 30. he car-
rled with him a check for.*5®^5? OU w.S!
his Individual fee. to-wit, $30,000. -With
this sum of money In his vest pocket
there Is no reason whv Mr. Smith should
not see a "silver" lining to every cloud,
and believe there are prosperous times in
Georqla. -As has been well. said. Mr.
Smith evidently thinks not only of the
quality of money but quantity.
A. System Without a Mode
One who reads 3Ir. Louis Pendle
ton's "Life of Alexandei H. Stephens"
is deeply impressed with Mr. Steph
ens’ intense love for our system of
government, and how jealous he was
of any encroachments upon its prin
ciples.
And the lamented Senator 'Hill de
livered on May 10, 1879 in the Senate
of the United States a memorable
speech, showing wherein our system is
national, wherein federative, where in
executive.
He says: "It is the noblest govern
ment, the greatest system that human
wisdom ever devised, and could not
have been framed by human wisdom
alone.” * * *
"It is such as the Roman never
.dreamed of, such as the Grecian never
conceived, and such as European intel
lect never had power tc evolve. * *
“In the preservation of our Union of
States, this Confederate nation, part
Federal, part national. I have never
been able to see anything but grandeur
and a glory such as no other people
ever enjoyed. But in the destruction
of the States, by the Baals of consoli
dation, I have never been able to see
but rigid, hopeless despotism!” with all
its endless oppressions."
The Socialists are pressing for a
government altogether national, sub
mitting all questions to the people as
a "committee of the whole"
This Mr. Hill declares is at War with
our svstem. which is not a system of
unbridled Democracy. He says: "Our
government is not altogether national,
since the people of the United States
never passed upon a single question ns
•i'inn I a unit, as one ncoo’c. Th«i; pever was
Mr. Watson says: "Anybody who will
study our Institutions will see at once
that ours is not a pure Democracy,
Neither in national affairs nor in State
affairs does mere weight of popula
tion rule.
“The evil of a pure Democracy is
that the minority have no protection
from the majority.
Upon this hidden reef all the pure
democracies of ancient and modern
times struck and went down. '
"Our forefathers wished to avoid
this danger in framing national and
State governments, qnd they invented
a system of checks and balances by
which the minority could protest itself
against a majority, when it grew un
scrupulous.
“If our system of government were
intended to be a pure democracy
representation would be based on
population alone.
"But is it not so. * * * The idea is
that mere numbers shall not arbi
trarily control. Majorites shall not
have everything their own way.
Minorities shall have representation
and protectiop. * « » The population
of New York gives her thirty times
as much power in the House as Dela
ware. hut in the Senate the two are
equal. * * *
"Thus our national system is a
mixed system—power being based
partly upon population and partly on
territorial organization. So it is in
the States themselves. * * •'
"Any one who wants to be guided
by historic precedent and constitu
tional authority should study the de
bates of the convention of 1877. He
MI see clearly why It was that the
groups (mainly of three counties
each) and given one Senator each
without regard: to population.”
Mr. Watson calls upon his readers
to read the speeches 0? Robert Tombs,
Nilson Tift.. A. R. Lawton. Chas. J.
Jenkins and others in the great con
stitutional convention of 1877. where
a question submitted to the people °t; county organizations were cut into 44
the United States, as one aggregate - --
people. They never voted on any
question as one aggregate people.
4 * * r
"While we have agreed to abandon
secession, while we have agreed never
to divide the States, we have never
agreed to destrov the States.” ... _
Alex Stephens. Ben Hill. Boh Toonbs, | was debated this question of reprosen-
Ohas. J. Jenkins. Joseph E. Brown, Al- | tation by population and by terri-
fred H. Colquitt. Jno. B. Gordon, all torial organization.
held in reverence our system of gov- | Mr. Watson declares these men were
ernment. .right in protecting minorities, and
And Hon. Thomas E. Watson, who says further "that those counties
claims to he the greatest of Jefferson- which vote in this campaign for the j
ians. in a recent editorial in The Jef- J losing candidate are to have their j
fersonian. proclaims the same lovaltv j convention delegates chosen, by the
to our great syptem, framed in 1787, j successful candidate. Thus the minor- j
and which Mr. Hill declared "is the ity counties are not to he allowed to
result of wisdom, the result of ex- ! choose their own delegates at All." I
perience. the result of conditions an.) j Mr. Watson takes the same view and ,
the result of all the feelings and ele- | makes the same protest of ‘Judge W. J
ments that can stimu ! ate the intellect I L. Grice in his recent article in The
and prompt the desire of men." Telegraph. J. C.
ROOSEVELT, WILLIAMS,
AND STANDPATTERS
BY SAVOYARD.
President Roosevelt has made the
declaration that he is a Republican be
fore ho is a tarifl revisionist;
his letter to Ed H. Harrimanjust be
fore the election of 1904, shows that’he
is a Republican before he is a trust-
buster, and his acceptance of the Alli
son amendment (that was forged in
Wall street) to the Hepburn rate bill,
of agonizing memory, discloses that he
is a Republican before he is an octo
pus-chaser. Indeed, there is nothing
plainer than that President Roosevelt
prefers any abuse that now exists
rather than allow the Democratic party
any credit for any sort of reform. For
instance, John Sharp Williams had the
Republican majority surrounded and
short of victuals the other day in his
campaign for free wood pulp and free
print paper, but when the President
came on the scene with his character
istically sensational message and thun
dering in the index—as usual—there
was not one word of and concerning
tariff reform in the whole document.
Rather than get an honest and con
stitutional tariff, according to his defi
nition of it in his writing, rather than
get it with Democratic aid. President
Roosevelt will be as much of a stand
patter as Aldrich or Dalzell or the
American Economist itself And yet
the land is full of Democrats who
throw their ready hats high in air and
shout applause every time they hear
his name, and the present leader of the
Democratic party has given the Re
publican President a certificate of good
political character.
In 1860 the Republican party pre
tended to be a descendant of Thomas
Jefferson. In 1896 the then Democratic
papacy canonized Abraharr Lincoln as
a saint of the Democratic calendar.
In 1908 there are hundreds of thous
ands of honest men who delude them
selves into the absurdity that they arc
Democrats and who actually think
Theodore Roosevelt is a good Demo
crat. As to the Republican party be
ing a child of Jefferson, the thing is
too silly to discuss. So far from Abra
ham Lincoln beiticr a Democrat, his en
tire political life was a constant war
fare against that party. He was a
Hamiltonian. He idolized Henry Clay.
He positively hated Andrew Jackson,
and yet Ben Tillman and W. J. Bryan
will quote you Abraham Lincoln for
good Democratic doctrine Roosevelt
would have mugwumped in 1884 along
with Henry Ward Beecher. Carl
Schurz, Horace White, George William
Curtis. Georgs Fred Williams, and that
set, but for the fact that It is a moral
impossibility for Theodore Roosevelt
to voluntarily assume any position or
do anything whatever that he thought
would tend to the advantage of the
Democratic party. Let .those who be
lieve in Roosevelt Democracy read
what he said of Jefferson and Jackson.
And then I wish every Southern State
would pass, a law competing every
Southern Democrat to read his letter
to President Jefferson Davis.
This -very year the Lord hath de
livered the Republican party into the
hands of the Democracy, but the
Democracy, to all appearance, abso
lutely refuses to take charge of the
captive:-
Smith’s High Tariff on Money
three Issues, viz.. Disfranchisement,
Prohibition and Support of the Rail
road Commission.
Mr. Smith has repeatedly stated in
his public speeches in 1908 that those
who voted for him on June 4th, voted
for the support of the Constitutional
Amendment, and that those who voted
for Mr. Brown on June 4th. voted
against the support of the Constitu
tional Amendment. As a matter of
and
Comnn
Construction $
Equipment, etc
Colleton
Macon and Atlantic bonds, do-
po.sited with New York Se-
euritv and Trust Companv..
Kennedy. Todd ft Co., security
for loan
Macon Construction Company,
balance on subscription
259.t92.60
336!onh.oo
45.000.00
100.000.00
200.000.00
290.000.00
Total *1.525?2*5.91
Liabilities $ 531.865.92
Out of Receivers’ Hands.
The first of the corporations to pet out
of the band** of a receiver was the Macon
and Atlantic Railroad. Tt was sold at
nubile outcry bv Commissioner Isaac
Hardeman for $419,000. to Col. John R.
Young. of Savannah, and others. Tt • s
said that Mr. W. B. Snarks was allowed
$14,000 for his services as receiver of
this property, and It is further reporter!
that he has applied this amount to the
pavment of *he McTighe ft Co. bond, to
which reference will be made later.
The Purchasers of the Macon and At
lantic Railroad have reorganized it un
der the name of the Atlantic Short-Line
and the property will doubtless be «oM
to the Macon. Dublin and Savannah Road
at $250,000.
Various Litigation.
The • Construction Company and the
Georgia Southern system have pone
through certain litigation since they
were placed in the hands of a receiver.
Judge C. C. Kihhee was appointed special
master to hear various branches of it.
On November 17. 1894. just one year
after the first, decree of sale was granted,
the second decree was granted b** Judge
Gricps. Simon Borg ft Co., bankers, of
New York, through their attorneys Leo
pold Wallach. of New York, and King ft
Spalding, of Atlanta, petitioned for a
postponement of the sale and modification
of the decree.
After two nr three unsuccessful at
tempts to sell the road it was finally
bought at public, sale by Rklpwith WJ1-
mer. of Baltimore. Mr. Wilme- repre
sented the fir*?* mortgage bondholders.
Mv» b»d $3,090,000. The total cash paid
•i this transaction was about *350.009.
the rest, of ihe purchase price being made
up iu securities
stockholders get absolutely noth
ing—not a penny—not a pound of cotton
waste.
What Borg Wanted.
It Is said that Simon Bore, desired to
be put on the bondholders committee
when It was fnrmed in November. 1892.
but the shrewd New Yorker w**s “freezed”
out.-and he did not get on the commit
tee. He wanted to be on the
Fourth—Macon and Atlantic Railroad services runninq throuqh two or three endorsed bv the people largely on ac- ; fact, you all know that "For the
id Macon and Savannah Construction years, it Is also true that the combined I oount 0 f ^ls stand for the disfran- ! Amendment" and "Against the
continti^d V tabor n °The°Yitkiat7on 'over S t°e ! chisement of the negro; the people so Amendment" will not appear on your
foreclosure of the mcrta;*qe has been i understood it in 1906, as did the Leg- ballot at all on June 4th. You are
small and certainly not Intricate. There islature 1n 1907. To substantiate this going to vote for the nomination of
has been no heavy fighting in the courts. | position, I quote frbm an editorial a -candidate for Governor, just as
as is usually the case in railroad foreclo- written by Mr. Watson (Mr .Smith’s ( many of you are going to vote for
?pp?i?nniv d h5rm«nim,c P W »« S f ■ political ally at the time) in Septem- the nomination at the same time of a
hea?d of so^HtS?e ?S£tentPon No lawye? , ber. 1907: . ... I candidate for County Treasurer, a can-
ever wen such large fees so eas''." I "In spite of lobbyists and.obstruc- djdate for County Ordinary, etc., and
A well known capitalist, who has money j tionists, he WRUNG from the Legis- and the nomination of a candidate for
in^ the Georgia Southern, shvs: j lature a sweeping good law, which Governor has no more bearing on the
“I do not consider that the bondholders i ff j veg t ^ e Railroad Commission the Constitutional Amendment which you
mq to ny the n fee? mT Hok^Smith^to 1 P"wer of the State it, dealiriK with will vote for 1n OCTOBER than the
? nauf the larnest fee. was not j public service corporations. He also nomination of a candidate for your
ey of the bondholders’ commit-I SECURED the passage of a hill. County Treasurer. Mr. Smith has no
which redeems the MAIN PLEDGE more to do with the passage of the I
OF HIS CAMPAIGN, to-wit: THE Constitutional Amendment, to be voted i
DISFRANCHISEMENT BILL.” ; for next October (not June 4th) than j
He WRUNG from the Legislature | you or I. Mr. Smith has one __vote; j
the Ra ; iroad Commission bill, but i each of you have one vote; Mr. Brown
there was no WRINGING process nec- has one vote: I have one vote in the
essary to get through the DISFRAN- | election next October, and all of us
CHISEMENT BILL, because the Leg- i have said we will vote "“For the
islature knew the people had voted! Amendment.” I do not know one
for Mr. Smith for his stand on dis- i dozen iv'hite Democrats in Oeorgia
franehisement. to the exclusion of all j who win vote against the Amend-
other minor pledges. ’ ment. T defy Mr. Smith to name one
Mr. Smith, the candidate, repeatedly hundred white Democratic citizens of
said in his public speeches of 1906: this State who will vote against the
"Let us demand that legislation be Amendment. Can you name, many?
passed which will prevent the opera- | One would judge from all the fuss
tion of railroads in Georgia by for
eign corporations. If we forbid the
operation of railroads in Georgia by
foreign corporations or non-resident
citizens, those foreign corporations
which own the railroads will he forced
to sell them.”
While the people within the State
whom vms
the attorney
tee. but the attorney of the Mercantile
Trust and Deposit Company, the concern
which foreclosed the mortgage, and which
had the road In Its qrasn and the bond
holders at Its mercy.. The bondholders
could do nothing but agree. It may be
true that the bondholders’ committee as
sented to the fees, but their consent did
not give satisfaction to manv bondholders.
The committee was. it is true, the agent
or trustees of the bondholders, and If
the committee made a bad bargain the
bondholders were powerless to prevent
Jt. If the fees were not so large, the
bondholders would certainly realize on
their bonds. What eared the Mercantile
Trust Company how large a fee was p-Jd
their attornevs by the bondholders? Not
a cent would come out of its treasury.”
A gentleman prominent in the affairs of
the Georgia Southern says:
"I take no stock in the statement that
the fees of the lawyers were agreed on
months before the confirmation of the
sale. Thev mav have been agreed on
between themselves, but not consented to
bv the bondholders’ committee. I sav
this because a large Northern bondholder,
and who I believe is a member of the
bondholders* committee, was heard to
say in Macon just before the sale of the
road: "We tremble p.t the. mere contem
plation of what Hoke Smith’s fee may be.
I don’t know what It will be yet. but I
apprehend It wifi be a 'hair-raiser. r ft
seems to me. therefore. If the fees had
been agreed on a long time since, that
this larne Northern and official bond
holder who was living right In the nest
of the owners that be. In Biltimore.
Washington and New Yo**k, would have
known^sometblng about the size of the
proposed fees."
Did Chairman Smart Know?
Did even Col. Smart, chairman of the
bondholders’ committee, know what the
fc«us would be until the day they were
named In court? I do not believe he did.
for I am informed by a bondholder that
Col. Smart was rathei* speculative In Ms
... presence on what would be the amount
Inside," of the fees. Col. Smart asked this bond-
Mi*. Smith is making over the dis
franehisement issue (?) that he is
advocating more legislation on the
subject. If so. why not be frank
about it and tell the people that "If
you will nominate me again, I will
have the next Legislature pass a bill
so. that you can in October 1909 ratify
of Georgia were endorsing Mr. Smith, | your ratification of the Amendment to
principally on the negro question, the j the Constitution in October. 1908." If
people without the State who had | there is any use for it. I am porfec -
their money invested in Georgia be- j ly willing to ratify the Amendment
lieved that* he was endorsed for his i every October for the balance of my
stand against foreign capital. Why? life. So are you; so is Mr. Brown;
Because it mattered not .to them • so is Mr. Smith; but we must wait
whether we disfranchised the negro,
or whether we did not; but it did
matter to them if their investments
were attacked or destroyed. Tt is a
fact that the people, north, cast, west
and abroad, from which sources we
look for capital with which to de
velop Georgia’s varied industries be
lieved then and believe nrsar that this
State is on record as opposed to for
eign capital.
Mr. -^rhith comes before the people
of Georgia in 1308 as a candidate on
for October: it would not be lawful
to vote on it in the June Primaries.
I shall only mention the disgusting
* Equal ity Circular" distributed bin-
signed by the Brooks County Smith
Supporters, and said to be endorsed
by Mr. Smith, to say that T must
HEAR Mr. Smith SAY that he en
dorses the sentiment and the insinua
tion^ thereby conveyed: that those
who vote for Mr. Brown will be en
dorsing that disgusting and filthy
banquet in New York, before I can
for political life or death in Georgia.
I also believe that he is not the man
to stoop THAT low: for, if he wins
by that route, he will have a tremen-
bring my 'mind to believe it. While
I believe that Mr. Smith is fighting
dous big minority in the State of
Georgia who will have lost all possi
ble respect for him. and if he loses
by that route, he is an outcast among
Southern gentlemen.
If you vote to nominate Mr. Smith
for the second term, what will the
people without, the State of Georgia
believe as to your action? Mr. Smith
has repeatedly announced that he has
not changed his policy; worse, that
he has not "commenced to begin."
Can this people afford to announce to
the world that the State of Georgia
goes on record as ACTUALLY FA
VORING A HIGH TARIFF ON
MONEY, the one thing necessary with
which to provide brc>id', meat and
raiment? That is* what you do if you
nominate Mr. Smith.
There is no Prohibition issue to dis
turbs. The records of both candidates
on Prohibition are well known. Mr.
Smith went out of the whiskey busi
ness along with the rest of the whis
key men and saloon keepers when the
General Assembly passed the Prohibi
tion Bill. Mr. Brown lost his job
about the same time, but Mr. Brown
lost his job IN SPITE OF A LAW,
not BY REASON OF A LAW. Judge
Covington, one of the authors of the
Prohibition Bill, writing to one of his
fellow Prohibitoners, F. L. Seely,
Editor of the Atlanta Georgian, more
than thirty days ago, says: "Really,
Mr. Brown has Mr. Smith beat at
this moment."
Let us make it unanimous, and send
out to the world Lj no niistakable
language, the fact that Georgia
throws wide open her gates to foreign
capital, and insures a just and equit
able return for it. If capital cannot
be induced to., work 1n Georcrla. i
Hoke Smith tell us how our labor
CAN work? What can it work at if
there is no money to start the wheels
of industry moving?
Did Mr. Smith "rush out" anC?sup-
port his Railroad Commission in the
matter of the order granting the rail
roads the right to issue free passes
to Mr. Betjeman, the immigration
agent? No sir. He ignominiously re
puted them and their action, stating
he did not approve of the commis
sion’s order, and that the passes
would be back in the C’apitol by the
end of the week.
Mr. Smith, the candidate (and he
has no other entitlements at this
time) is now going around this State,
crying "Don’t humiliate me by refus
ing me your endorsement for fhe sec
ond term, against all precedent." Did
Mr. Smith adhere to "all precedent"
when he dismissed the appointee of
his predecessor within three weeks of
the expiration of the term for which
Governor Terrell appointed Mr.
Brown? Did Mr. Brown not suffer
all sorts of humiliation, which Mr.
Smith now so dreads? Did Mr. Smith
adhere to “all precedent" whem he
helped to disfranchise the smaller
countes of Georgia by advocating
Rule Nor 8 of the State Executive
Committee?
Don’t let Mr. Smith fool you about
voting on JUNE FOURTH. NEGRO
DISFRANCHISEMENT ts not touched
on JUNE FOURTH.
Don’t let Mr. Smith fool * you on
PROHIBITION. ’ .
Don’t let Mr. Smith induce you to
put a HIGH TARIFF ON MONEY.
Don’t vote awav vour BIRTHRIGHT
Of REPRESENTATION.
Hoke Smith stands today before the
people* of Georgia, tossing high in
sir a coin, exclaiming as it turns over
and oyer, and falls at your feet,
"Heads I win; tails you lose."
J. T. PENDER.
Atlanta May 21st.
Who seeks and will not take, when.
once ’tis offered.
Shall never find it more.
President Roosevelt, the leader of
the Republican party—and to some
seeming, the leader of the Democratic
party also—has made a plea in confes
sion and avoidance, and Elihu Root # x
the Melanchthon of this Luther, dress
ed it in the gorgeous raiment of sop
histry, viz:
The tenth amendment to the Federal
Constitution is confessed; but it is
avoided and rendered nugatory by con
struction—that is to say, a State has
reserved rights, but If it neglects or
refuses to exercise them it becomes the
right and the duty of the Federal es
tablishment to usurp them. If that is
not the literal annihillation of State
sovereignty and the concentration of
all political power at this capital I
wish somebody would tell me what it
is. Here Is an example: That prodigy
for suggested political mischief, the
Hon. Albert Jeremiah Beveridge—he
of the recondite mind and the verbose
speeclf—sees in child labor an evil, and
in thousands of instances it Is an evil.
It is the right of the States to prohibit
its abuse. Some of them have neg
lected to exercise that right. There
upon Mr. Beveridge, In the teeth of
the Constitution and in contempt of
the adjudication of the Supreme bench,
strives to prohibit child labor in the
States by act of Congress. If that is
to be allowed, what in the name of
common sense is the use of a State
legislature, or a State itself 0 If by act
of Congress child labor car be prohi
bited in the States, sq can adult labor
by the same method be abolished. Ad
mit this principle, and Congress can
say that no man shall labor in the pro
duction of an article that enters into
interstate commerce without first join
ing a labor union. And as the labor
union has gone into politics and offers
to swap so many votes for so much
legislation, no one need be surprised If
we have that for a "paramount," or at
least a "cardinal," in all the platforms
of 1912.
Theodore Roosevelt, the head of the
Republican party, and William J. Bry
an. the head of the Democratic party,
have cordially approved and zealously
advocated the Beveridge plan of abolf-
tion of States’ rights.
The Republican party declares that
tariff abuses must be reformed by the
friends of those abuses, which means that
shepherds should be drafted from a pack
of wolves. The Republican party has no
more intention to reform the abuses of.
the tariff than It has to leglslato for the
regulation of the tides of ocean in Hamp
ton Roads. And if It reallv sought to re
form the tariff it would be as impotent
for that purpose as it is to command the
showers of April or the droughts of Au r
gust. But ns to that Inst it has the
blasphemous impudence to claim credit
for good crops.
Now here are twin paramount*:—States'
rights and tariff reform—ripe fruit wait
ing to be plucked by the Democratic par
ty. But the Democratic party thinks it is
fixing to carry Kansas and will not only
alienate New York, that is Indispensable,
but. actually it is sought to moke New
York as surely Republican as Maine or
Iowa. Never was there in this world an
entity so fortunate In its adversary as
the Republican party has been for 12
years.
As for the Republicans In Congress,
John Shap Williams has got them on the
hip. Roosevelt put a rluh in John Sha-p’.a
hands, and he cracked the beads of the
standpatters, unmercifully. Ram Jones
said that it was “the hit dog that hol
lers." and so It is In the Sixtieth Con
gress. To give the impudence an air of
respectability the Speaker Introduced a
resolution to appoint a. committee to in
vestigate the paper trust. Mann, of Chi
cago. is chairman. I attended one of its
sittings, and was reminded of an anec
dote of Tom Marshall, who was arguing
a demurrer before a hostile Judg* on one
occasion. Every few minutes while Mar
shall was speaking, his honor would In
terrupt and ptit questions that made it
manifest that In the opinion of the court
Marshall had a hopeless ease. Finally,
Marshall turned to his associate counsel,
and with an aside that put the bar in a
roar, said: “Who’s on th A other side of
the ease besides the Judge?" T did not
think it necessary for 4he paper trust to
support Mr. Mann with other counsel.
Except the cruel tariff duty that was
on quinine, the tariff on print pancr Is the
most indefensible ever levied. though the
Republican tariff of 1883 taxed Bibles and
let in free playing cards: and I am not so
certain that the same condition does net
maintain under the Dlngley tariff. T am
sure Bibles are taxed now—Bibles printed
in English. The tariff on quinine was for
the encouragement and promotion of dis
ease. pain, sorrow, misery, death. Tt
helped the doctor, the undertaker, the.
grave-digger, the tombstonemaker. It
protected malaria, that saps physicrj!
strength and rendered impotent physical
energy.
When quinine was taxed, it sold for
$4 an ounce. One of the most brilliant
men. one of the most eloquent orators. I
ever knew was Jim McKenzie. He it was
who who secured free quinine for the
American people. His speech was argu
ment. ridicule, invective. In verv shame,
and in verv fear. Congress passed the bill
that reduced the price of ouinine as
much as SO per cent. He ought to have
a. monument, “cloud-capped the summit.*’
and when Ills eloquent tongue was for
ever silenced and his manly form was
Pillowed to its final rest, every \ian. wo
man and child of America was his debtor.
Well. Just as the tariff on ouinine was
a tax on health and a protection for dis
ease. so is the tariff on print paper a
tax on culture and a protection for ignor
ance. The Dlngley schedules have allow
ed the paper trust to extort from the
American people untold millions. Nor Is
that all. Those schedules have deforested
immense areas of land and inflicted stu
pendous losses on account of floods. In
deed. we have this spectacle: The duties
on wood pulp ana print paper put a
premium on the cutting of timber, and
there are bills before Congress to buy
lands for the cultivation of timber. Hero
is the paper trust turning forests into
bleak desert wastes and then it is urged
that the Government tax the people to
buy the lands and plant them in trees.
Canada has eight acre^s of forests to our
one acre. All our wood pulp should como
from Canada, and print paper from Can
ada and the rest of the world shouM bo
~ -
The Republicans In Congress are be
tween that devil of a John Sharp Wil
liams and that Dead Sea of an enraged
public press. Tf thev put wood pulp and
print paper on the free list it is an ad
mission that the tariff is a tax. and some
impertinent and intelligent farmer of a
close district in Indiana, or Illinois, or
Iowa, would be sure to ask? “You gave
the newspapers free raw material, whv
did you not give mo freo farm utensils.*
And there is the devil of this whole
business. For onto the G. O. P. is in
this fix:
You can nnd you can’t:
You will and you won’t;
You’ll be damned if you do.
And you’ll be damned if you don t.
For this we mav thank John Sharp
Williams—for Roosevelt hhs recanted, as
usual—but it is a barren victory John
Sharp has gained for us If the Denver
convention shall lack the sense to take
advantage of it. _
(Copyright. 1908. by E. W. Newman.)
Musicians' Need.
Musicians have felt for a long time tho
need of a means by which their aspira
tions and their aims could be brought
nearer to the public, while at the rame
time even the general public baa been
beginning to realize that some of the old
musical institutions have lost their elas
ticity and becln to stand rather out or
sympathy with their modern surround
ings.—Manchester Guar llatu
