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FRANCIS COGltf, Proprietors
GEO. T. JACKSON.)
W Address all Letters to the Constitu
tionalist office, AUGUSTA. GA.
FROM WASHINGTON.
Congressional Proceedings—The Sen
ate and House—A Large Number of
Bills Introduced—Proposed Amend
ments to theConstitution —Confirma-
tions, &c., Ac., &c.
Washington, December 14 — Senate —
The Senate passed the bill to extend
the duration of the Court of Commis
sioners of Alabama Claims.
The Secretary of War submitted the
report of the engineers upon the im
provements at South Pass, Miss. The
report is made by Maj. C. B. Comstock.
The Secretary of War asks for a fur
ther appropriation to continue exami
nations.
Patterson presented a memorial of
the Chamber of Commerce and Mayor
of Charleston for an appropriation for
the improvement of the harbor of that
place.
The resolution calling for the report
of unsettled accounts and defalcations
was referred to the Committee on
Finance.
The resolution to allow McMillan
to withdraw his credentials was taken
up. A motion to refer* to the Com
mittee on Elections and Privileges was
lost, and permission to withdraw pass
ee by a strict party vote, except Dawes.
Incidentally, Louisiana affairs were
ventilated, except as they bore upon
Pinchback, to whose case no allusion
was made during the discussion.
Howe said he did not believe in the
country or a Senator on the floor who
did not believe the McEnery govern
ment a sham.
Bayard said he believed in his soul
that McEnery was the legal Governor
of Louisiana, and had been kept from
his place by usurpation and Federal
power. [Slight applause in the galle
ries, but it was promptly checked.
The Senate went into Executive ses
sion.
House. —Blaine introduced hi3 school
and religious bill, based on the mes
sage. Several bills for the resumption
of specie payments were presented.
Also a bill repealing the bill for re
sumption in 1879. Blaine’s bill was re
ferred to the Judiciary Committee.
Upon the call of States, the follow
ing were among avast number of bills
offered:
By Blaine: Proposing an amendment
to the Constitution, providing that no
State shall make any law respecting
the establishment of religion, or pro
hibiting the free exercise thereof, and
that no money raised by taxation by
any State for the support of public
schools, or derived from any public
fund therefor, or any public lands de
voted thereto, shall ever be under the
control of any religious sect, and that
no money or lands so devoted shall be
divided among religious sects or de
nominations. Making the Presidential
term six years, and the incumbent
afterwards ineligible.
By Darroll, of Louisiana—To amend
the act of the third of March 1871, in
corporating the Texas Pacific Railroad
Company. The bill is similar to West’s
introduced in the Senate.
By Morey, of Louisiana—To remove
the political disabilities from all the
citizens of the United States, and to
prescribe an oath of office.
J3y Davis, of North Carolina —To re
peal the law forbidding the payment of
accounts, claims and demands of
Southern citizens for quartermaster’s
stores etc., and appropriating §500,000
to pay for the same.
Fort, of Illinois, offered the following
resolution and demanded the previous
question on its adoption :
Resolved, By the Hou e of Representa
tives, that in all subordinate appointments
under any of the officers of this House, it is
the judgment of the House that wound
ed Union soldiers, who are not disabled
from the performance of duty should be
preferred.
A standing vote on seconding the
previous question showed ninety-seven
Republicans voting in its favor and one
hundred and four Democrats against
it. The vote was taken by tellers with
a like general result the report of
the tellers being: ayes ninety-nine;
noes, one hundred and twenty-six, so
the previous question was not se
conded.
Cox, of New York, then offered the
following as au amendment to the re
solution, and moved the reference of
both resolutions to the Committee on
Accounts and demanded the previous
question.
Resolved, That inasmuch as the Union of
the Mates has been restored, all the citi
zens thereof are entitled to consideration
in the appointment to offices under this
Government.
Hale, of Maine, inquired whether
Cox’s resolution was offered as a
substitute to Fort’s.
The Speaker replied that he under
stood it to be offered as an amend
ment.
Starkweather, of Connecticut, made
objection, that as the State of New
York had been already called the gen
tleman (Cox) could not putln a resolu
tion now.
The Speaker ruled that it was too
late to make the objection.
Fort said that he had tried to make
the objection as soon as the resolution
was offered.
Hale, of Maine, inquired whether the
House had acted on the amendment.
The Speaker—lt has not. That
would be acting on the subject matter
of the resolution now, which is not the
purpose of the gentleman from New
York. His purpose is to refer both
resolutions to a committee.
Cox — The original resolution was an
ad captandum affair. My resolution is
in the nature of an amnesty. [Laugh
ter].
Reagan, of Texas, made a point of
order that neither the original resolu
tion nor the amendment was in order.
Neither of them proposed any thing
which the House was authorized or re
quired by law to do.
The Speaker overruled the point of
order, stating that if it was ever tena
ble it came too late.
The vote was taken by yeas and nays
and resulted in yeas, 168; nays, 102, a
strict party vote, so both resolutions
were referred to the Committee on Ac
counts.
The Speaker appointed as regents of
th.e Smithsonian Institute Clymer, of
Pennsylvania, and McCrary, of lowa.
Confirmations.
Riley, Consul at Zanzibar; Daniel 8.
Richardson, of California, Secretary of
Legation to Mexico; Yolney Y. Smith,
of Arkansas, Consul at St. Thomas;
Chas. P. Lincoln, of Mississippi, Consul
at Canton; Brady and Chamberlain,
Supervisors of Internal Revenue; An
drew Clark, Collector of the Second
Georgia; Win. F. Green, Sixth Tennes
see; Parker, Postmaster at New Or
leans; Rixinger, Clarkesville, Tenn.;
Wiison, Murfreesboro, Tenn.; Bidwell,
Yazoo City, Miss.; Cox, Farmville, Ya.
The Issue Between the United States
and Spain,
The present distinctive point at issue
between the United States and Spain is
Stated in non-official but usually well
Augusta Constitotumolist
Established 1799.
informed circles as follows; The United
States ask, first, that in future all
American citizens in Cuba accused of
violation of the law shall be tried by
civil courts and not by military tribu
nals, with all the rights in such cases
as are secured by the seventh article of
the treaty of 1795; and, second, that all
sentences where American citizens have
heretofore been tried by military tribu
nals shall be annulled. Spain in some
degree concedes the claim of the Uni
ted States to the first proposition,
agreeing that in future American citi
zens accused of violation of law shall
be tried by ordinary tribunals, with the
right to be heard by counsel, to sum
mon witnesses, and to employ all other
necessary safeguards to the accused,
but with the reservation that all such
trials shall be according to the law of
1821, which provides for more expedi
tious proceedings than those of civil
courts, for common crimes in time of
peace. She also offers to revise all
sentences passed by courts martial on
American citizens, when it shall be sat
isfactorily shown that such sentences
were in violation of established law.
Items from the Capital.
Washington, December 14—The pro
gramme now is to announce the com
mittees on Tuesday next, and adjourn
the House on Wednesday to the 6th of
January.
The Cabinet considered several ap
pointments.
The President, with the Secretary of
the Navy, Postmaster General and At
torney General, visit the Centennial
grounds Friday, the 17th.
FOREIGN~mSPATCHES.
Investigation of the Mosel Explosion.
Bremen, December 14.—The Weser
Zeitung, this morning, asserts that the
passenger, Thomas, confessed his in
tention of destroying the steamship
Mosel for the sake of the insurance he
held, and implicated others in the plot.
This report requires confirmation
which cannot bo gained before the end
of the judicial investigation, which is
now going on. The man Thomas who
owned the dynamite was an Amejican.
Dresden, December 14. —The police
have made a domiciliary visit to the
abode of Thomas, in Strahlen, but fail
ed to discover anything throwing light
on the terrible crime in which the man
is implicated. His wife has gone to
Bremerhaven.
The Usual Mexican Election Fight.
Galveston, December 14. —Advices
from Matamoras say there was fighting
during the municipal elections. Both
candidates for Mayor were wounded,
and three men and a boy killed.
The Cortinas candidate was elected.
FROM NEW YORK.
Meeting of Alabama Bondholders.
New York, December 14.—A meeting
of Alabama bondholders is being held
this afternoon to protest against the
proposition of the State Commission
ers of Alabama for the adjustment
and liquidation of the State debt.
Hamilton Blydenberg presided. A
committee waa appointed to draw up
a remonstrance for presentation to the
Alabama Legislature against the prop
ositions of the Commissioners.
Hard on the New York Central and
Hudson River R. R.—“ Contemplated
False Economy.”
Buffalo, December 14. — The Coro
ner concluded his inquest in the case
of the two men whose death was caus
ed by the recent collision of the Cen
tral Railroad, at East Buffalo. The
following verdict was rendered : “ That
H. Wood and Jos. Doty came to their
deaths through the contemptible false
economy practiced by the New York
Central and Hudson River Rail
road Company, in not having sufficient
employes on the road.”
CRIMES AND CASUALTIES.
Attempt to Burn a Church —Marine
Disasters—Anticipations of a Raid
by Outlaws.
Provincetown, Mass.; December 14-
While the Uuiversalist church was in
session, eight hundred persons being
assembled an attempt was made to
burn the church. The flames were
soon extinguished but quite a panic
ensued.
Portland, Me., December 14.—The
schooner Deborah hence for Springfield
on the 20th of November is yet unheard
of. It is feared she is lost.
Baltimore, December 14.—The schr.
Philadelphia, from Richmond for Phila
delphia with granite capsized and sunk
at Pooles Island. The crew were
picked up.
Pottsville. December 14—F. Weu
rick, the Mahaney city merchant, who
on the oath of Mrs. O’Donnell, was
lodged in jail last week as being one of
the masked men who shot O’Donnell,
and the woman McAllis, was to-day
released on a writ of habeas corpus. It
was feared at Mahoney city, last night,
that the city would be fired, and a
posse of men went up from here in a
late train. Avery uneasy feeling con
tinues there to-day in consequence of
large bodies of strange men hovering
about town up to a late hour last night.
It is rumored that another raid similar
to that of last spring is contempla
ted by these outlaws.
A $500,000 Fire at Bridgeport, Conn.
Bridgeport, Conn., December 14.
A fire was discovered in the cabinet
shop of the Wheeler & Wilson Sewing
Machine Company. In a short time,
two brick buildings of the company,
one fronting on Washington and the
other on Barnum street, were wrapped
in flames. The Secor Sewing Machine
Factory and St. Mary’s Catholic
Church were threatened. The wind is
blowing a gale and the supply of water
insufficient.
Later—lt is thought the fire will be
confined in the Wheeler & Wilson
buildings. Their loss will reach §500,-
000. Insurance, §300,000.
IMtOYI BALTIMORE.
Tlie Baltimore and Savannah Steam
ship Company Going into Liquida
tion.
Baltimore, December 14. — A meet
ing of the stockholders of the Balti
more and Savannah Steamship Com
pany was held to-day. Six hundred of
one’thousand four hundred and ninety
shares were represented. A paper look
ing to the appointment of a receiver
for tho benefit of creditors was pre
sented and signed by all the stock
holders present. This action will proba
bly receive the approval of the holders
of a majority of stock. The liabilities
were stated to be about §57,000, and
the assets the two steamers of the
line, the America and Saragossa. The
two steamers stopped running about a
week ago.
A.tTGTJSTA. GA., WEDNESDAY. DECEMBER 15,1875.
THE RAILROAD POOL.
Rejoinder of W. F. Herring. Esq., to
Ex-Gov. Brown.
The public has recently been fa
vored with an article from ex-Governor
Joseph E. Brown, purporting to be a
reply to one written by myself, which
appeared not very long since in the
Atlanta Constitution and the Augusta
Chroicle and Sentinel. Justice to truth,
if not to myself, demands that some
notice should be taken of this very ex
traordinary production. Careful read
ers of my article, and of his reply,
have been puzzled to decide whether
he most desired to divert attention
from the real issues of the controversy
or to misstate them. His effort was a
clever one, assuming either or both to
have been his object.
He characterizes my communication
as “ill-natured,” “irate” and “false.” I
think I may safely say that his would
not pass for a model of humility or
good-naturedness ; and as for his fideli
ty to truth, I propose to submit the ev
idence and leave every one to judge for
themselves on that point.
His first statement of my position is
as follows: “He objects to all sorts of
unions and combinations, and pro
nounces them all wrong, and takes the
press to account because it does not
denounce them all. Bear in mind,
Messrs. Editors, that he says it is your
duty to do so; and as you commend
his article, it is to be hoped you will
come up to the full measure of your
duty, and in the denunciation of rail
road compinations, denounce all the
balance. But, if you should be like ho
is by the Grangers, a little afraid to do
this, and conclude to apologize for
others, I would simply suggest that it
might be a little more fair to slack up
slightly on the “Railroad Combination,”
as you and him term it. If the doc
trine of this middle man is the correct
doctrine, then come up to the full meas
ure of your duty according to his dicta
tions, and make your denunciation of all
those combinations, from the Grangers
down, full, ample and sweeping.”
How Govenor Brown, or any other
man, after having read my article,
which had been printed, and which he
ought to know could be printed again,
could have the audacity to say that I
objected to all unions and combina
tions, is beyond my comprehension.
Yet he positively states that I do,
without qualification or exception. He
tells the editors, if my doctrine is cor
rect, they must come up to my dicta
tion, and “make their denunciations of
all those combinations, from the Gran
gers down, full, ample and sweeping.”
I declared against one class of unions
and combinations, and only one. I
called on the press to denounce but
one class. That class embraces all
UNIONS AND COMBINATIONS THAT ATTEMPT
TO REGULATE PRICES ARBITRARILY, AND IN
DEFIANCE OF THE LAW OF SUPPLY
AND DEMAND, AND DESIGNED TO
PREVENT HEALTHY AND LEGITIMATE COM
PETITION. I declared against no other
unions or combinations. Ido not be
lieve that there is an intelligent reader
of my article who could have misunder
stood me ou that point. Yet Governor
Brown says, if my doctrine is correct,
the press should denounce “all those
combinations, from the Grangers
down.” Does he charge or assume that
it is the object of the Grangers’ organ
ization to regulate prices arbitrarily
and in defiance of the law of supply and
demand, or to prevent healthy and
legitimate competition? Does he charge
or assume that their object is the same
as that of the railroad pool? Did I
object to the Chamber of Commerce?
Did I even condemn the unions of
work-people, where the proprietors or
employers had previously combined,
and where they were obliged to com
bine m self-defence? I distinctly said,
and I reiterate it, that in such cases
“however deplorable the consequences,
the responsibility would not rest on
them (the work-people), but upon those
that made such action necessary.”
At the risk of being tedious I will
give some extracts from my article.—
They will show whether Gov. Brown
has misrepresented my position or not
when he started off by sayiDg: “He
objects to all sorts of unions and com
binations, and pronounces them all
wrong.” I say in that article ;
“ Doubtless the immediate cause (of
the hard times) is the thousands upon
thousands in every land who are out
of employment, who are in consequence
not producing, whilst of necessity they
must, be consuming. Every one can
readily understand that these people
are
GROWING POORER EVERY DAY,
and that from the same cause the
world is growing poorer, and that,
sooner or later, this consuming of sub
stance, without producing any equiva
lent therefor, will manifest itself in
shrinkage.
“ The next question that presents it
self for solution is, why are these peo
ple out of employment now, and why
have they been out of employment the
past year, when there ought to have
been work for every man to do ? I
think, if any one will take the pains to
trace this difficulty to its origin, they
will find that all the trouble is directly
traceable to monopolies, combinations
or unions that have, in one interest or
another, attempted to regulate prices
arbitrarily and in defiance of the
LAW OF SUPPLY AND DEMAND.
“This law can only manifest itself by
free and unrestrained competition.—
When no artificial means are applied
to regulate prices, and this great law
of supply and demand is allowed fair
play, the economy of the world is pro
moted in the highest degree. It is au
unerring indicator of what is being pro
duced in excessive quantities, as well
as of that which is not being produced
in sufficient quantities, and it will as
certainly equalize them. Those arti
cles of which there is a deficiency will
advance in price, and thereby attract
others to their production, and those
articles that are being produced in ex
cessive quantities will be abandoned
for those that are more needed. There
is a very mistaken notion with many
people now that some of our troubles
arise from over-production. Tlxe re
verse is true. They arise from under
productiou. I will go further, and say
that there is no such thing as an over
production of useful and necessary arti
cles. The production may not be pro
perly distributed at times, but the law
of supply and demand is always adjust
ing it for the best interests of mankind.
It is scarcely necessary for me to say
that the more the world produces of
such articles as I have named, and
such as will be produced when free
irom monopolies, combinations and
unions aiming at regulating prices, the
richer it will become.
“The maiuspring of these monopolies,
combinations and unions is, I believe, a
very common
WEAKNESS OF HUMAN NATURE,
by reason of which each class, each in
terest and almost each individual can
readily be persuaded that they are
bearing more than their proportion of
the burthens of society, and that the
public is indebted to them for albthe
prosperity that exists, when, in reality,
they contribute only a part, and some
times a very small part. They at once
form a combination.: and ignore the
natural law of supply;and demand, and
substitute an artificial one, by which
they attempt to regelate the price of
their produce, their labor or their ser
vices arbitrarily. ID ere has been a
mania upon this subject the past year,
and we have now tHe results of this
policy before us. Wr find the work
people forming unions and demanding
wages that their employers cannot
accede to, and as a eoasequence strikes
and lockouts precipit a ted through their
influence in nearly every branch of in
dustry, greatly to their own damage in
most cases, and in every instance to
thepublic detriment. With the hurt
fulness of this policy on the part of the
work-people fully demonstrated (as I
venture to say it could be), it would be
unjust to condemn them for forming
these combinations without fairly con
sidering their situation and ascertain
ing whether such combinations were
made necessary by th(s action of others,
and were only resorted to as a means
of self-defense; and ILit should appear
that their combinations were rendered
necessary for that purpose, however
deplorable the consequences, the re
sponsibility would not rest on them,
but upon those that made such action
necessary.
“ That this action has been largely
provoked by the arbitrary power ex
ercised by large companies and firms,
especially when combined is, I have no
doubt, true. In such eases they have
exerted such overpowering and over
awing influence against which the in
dividual could not \ contend single
handed and alone. WJhen the power of
dictating terms is in the hands of a
combination or monopoly, it is natural
that injustice should ;be done by it to
all with whom it may have dealings. It
will at least engender: a disposition to
form counter combinations ; and, when
they are practicable, they will be form
ed. No one likes to deal where he has
no voice in fixing terms.
“ From the foregoing, it will be seen
that lam opposed to combinations and.
monopolies of every kind, having in view
the regulation of prices of anything, or
designed to prevent healthy and legit
imate competition. I believe the history
of all civilized countries shows that
unrestrained competition, free from
combinations, regulates prices, produc
tion and consumption; for the best in
terests of all. Monopolies, combina
tions and unions having this object in
view are wrong in principle—the bane
of society—and the cause of most, if
not all, the evils that now afflict us.
Further on, in the same article, I
say : “ This * ex-cathedra ’ pool man,
who signs himself * A Railroad Stock
holder,’ after complaining of the press
for denouncing tne railroad pool, goes
ou as follows
“The farmers of the United States
have formed the Grange for mutual
protection, with a pool of accumulated
or subscribed fuuds; have you de
nounced that ? The printers have
formed a union with a pool to support
each other in case of a strike ; have
you denounced that? I apprehend
you and other editors have formed au
association to maintain rates ; and you
probably, have a pooi, consisting of
your deifies, weeklies, adjuncts, etc.;
have you ever denounced that ? The
merchants of this city (some of whom,
without understanding : the bearings of
this whole question, have probably
stimulated your attack upon the rail
roads) have a chamber* of commerce,
where they meet almost daily, in con
clave, for the mutual protection
of their interests; suppose you de
nounce them! The brotherhood of loco
motive engineers have ? an association
all over the United Stales, with a pool
to support their brethren in idleness in
case of an approved strike. TUe con
ductors also have their association—
why not denounce them ? The miners
have their association, with a pool; and
there are other like associations, too
tedious to mention. I[ut how gently
the press has dealt witfe all of them!
The pent-up wrath is usually let loose
upon the poor railroad men, if they
make any effort by association to pro
tect the immense interests confided to
them by the stockholders, who, after
all, are human beings, though they
have been induced to put their money
into railroads for the benefit of the
public.”
From the foregoing it wifi be seen
that this writer argues as if all the
associations above-named stood upon
precisely the same ground that the
railroad pool does. The truth
is far otherwise. The object
of the railroad pool, by his
own confession, is to regulate
prices for their services arbitrarily,
AND IN DEFIANCE OF THE LAW
of supply and demand, by stifling com
petition. Do the Grangers attempt to
regulate the prices of their products?
Do they propose to attempt to ignore
the law of supply and demand? Do
those of them who grow cotton say we
will fix an arbitrary price, below which
none of us shall sell it? Do those who
raise corn, or wheat, or potatoes, or
meat, propose to form a “pool” such as
the railroad pool, to “maintain rates?”
If they were to attempt this, not only
would their efforts prove futile, but the
folly of such action would react upon
them most disastrously; and it would
bo the duty of the press to denounce
such folly. But intelligent Grangers
say that the object of their associa
tion is very different. It has been
formed more with a view to acquiring a
knowledge of this great law of supply
and demand, and of intelligently ad
justing themselves to it* by producing
more of those articles ihat are most
wanted and fewer *f those that
are now produced in excessive quanti
ties. If such be true, their object, so
far as the explanation Dovers it, is a
laudable one. I will shy, in passing,
that I am not a granger, and only state
what some of their most intelligent
members tell me is the chief object of
thsir organization. So long as they ad
here to this platform they are unassail
able, and their organization will work a
benefit to themselves atid to society.
But when they embark in any Utopian
scheme which sets at defiance the laws
of nature and political economy, they
will come to grief.
Does the “ex-cathedra” pool man in
tend to justify the printers’ union, or
the editors’ union (if there be such an
one), or the engineers’ union, the con
ductors’ union, the miners’ union, etc.,
when they attempt to regulate prices
and ignore the great law of supply and
demand? WheD the press fails to de
nounce unions, combinations or mo
nopolies having this object in view, it
fails to do its duty. Unions of this sort
can only be justified, as I said in the
outset, when such combinations are
necessary to self-defense. I have yet
to learn of the first one that has not
WORKED HARM TO ITS MEMBERS,
as well as the public. But I cannot re
frain from a smile when I read this
“ex-cathedra” chap’s attempt to put
the Chamber of Commerce of Atlanta,
or any other city, in the same category
as the railroad pool. Their objects are
as different as the poles. One wishes
to repress, restrain and subvert a great
law of nature and of political economy.
The other wishes to accelerate its ac
tion. One proposes to fix prices arbi
trarily, and put competition absolutely
out of the question. With the other
(the Chamber of Commerce), one of its
prime objects is to allow the great law
of supply and demand to regulate
prices, and to encourage the freest
competition. The man who will sell
the cheapest is as welcome at the
board as the man who will pay the
dearest. When these two meet and
come to terms, prices are fixed better
tbau any pool will ever fix them.
The object of one of these associa
tions is to promote free competition,
the object of the other (the railroad
pool) is to prevent it.”
Now, with this distinct and unequi
vocal designation of the only class of
combinations, unions, etc., that I con
demn narrowed down to those that aim
at stifling competition, in order that
they may fix prices arbitrarily and in
defiance of the laws of supply and de
mand, he has said that I object to all.
He says I am afraid of the Grangers.
He puts his railroad pool and the
Grangers in the same boat. If one is
wrong, both must be, from his stand
point. Now, if he will prove that the
Granger organization aims at stifling
competition, in order that they may fix
prices arbitrarily and in defiance of the
laws of supply an 1 demand, I promise
to condemn them. While I do not
think he will dare charge the Granger
organization with having this for their
object, 1 hardly think he will have
cheek enough to deny that this is the
object of the railroad combination, of
which he is the acknowledged head.
As earnestly as he pleads for this
gigantic monopoly—this conspiracy
against the people, which is now so
proper, so just and so necessary to the
public welfare (?) (and to his pocket),
the time was when he held different
opinions. In order that the public
may appreciate his consistency, I will
give an extract from a decision ren
dered by him only six years ago, whilst
he vas Chief Justice of Georgia. It is
from the case of C. R. Cos. et al. vs.
Collins et al. He (the very same Brown)
says: “If the act of 1852 can be fairly
construed to embrace the Atlantic and
GuL' Road, whenever a track is author
ized to be laid between the two roads,
it embraces every other railroad in
Georgia, as they all connect, in that
sense, and the Central Road has power
to lease every road in the State, so
soon as it has the means; and it can,
by a sufficient increase of fare and
freights, in sections where it has
destroyed competition, soon possess
itself of the necessary amount of funds.
Such could not have been the intention
of the Legisture in the passage of the
act. It follows that there is no public
policy of the State recognizing the right
or power of the Central Road to lease
or otherwise control the Atlantic and
Gulf Road.
“But, on the contrary, the public
policy of this State, as clearly shown
by its legislation, is to encourage fair
and just competition between the dif
ferent railroad companies of the State,
and to discourage monopolies. The
fact that the State granted a charter
to the Atlantic and Gulf Road, and
subscribed to its capital stock, thereby
aiding in its construction, shows that
it was the policy of the State to open a
thoroughfare across the southern part -
of her territory for the benefit of the
people of that and the southwestern
section, and for the encouragement of
fair and just competition with the
roads already in existence, thereby se
curing to her people the transportation
of their freights on just and reason
able terms:
“This public policy of the State is
violated by the purchase by the Cen
tral and jSouthwestern Railroad Com
panies of such quantities of stock of
tbe Atlantic and Gulf Road as will en
able them, by the aid of other stock
holders in their interest, to control that
road, and destroy that just competition
which the legislation of the State and
her subscription to the stock of the
Atlantic and Gulf Road was intended to
secure and perpetuate for the benefit
oi her people occupying a large extent
oi her territory, who would otherwise
be left at the mercy of an overshadow
icg corporation possessing the power
to load them with unjust burdens, to
accumulate a large reserved fund, be
yond just and liberal dividends to its
stockholders, to be used in extending
its control by other like purchases, and
making more complete its dominion
over the government aud people of the
State.”
Chief Justice Brown s.iys, “the public
policy of this State, as clearly shown by
its legislation, is to ensourage fair and
just competion between the different
railroad companies of the State, and to
discourage monopolies.” It is good,
sound public policy. There has
never been a time in the his
tory of the State when a vigorous
enforcement of that policy was more
needed than now. He could not
then endure the idea of the people,
occupying a large extent of the terri
tory of Georgia, being “left at the mer
cy of an over-shaddowing corporation,
possessing the power to load them with
unjust burdens, to accumulate a large
reserve fund beyond just and liberal
dividends to its stockholders, to be used
in extending its control by like pur
chases, and making more complete its
dominion over the government and the
people of the State.”
If there was danger to the people in
the proposed control of the Atlantic
and Guff Road, by the Central, six
years ago, and of the Central Road’s
making its dominion over the govern
ment and people more complete then,
by combining or absorbing to prevent
competition, why is there not danger
now?
The railroad pool combination is
more powerful than the Central could
have ever become, even if Chief Justice
Brown’s worst fears had been realized.
Its object is identical—if is to prevent
competition.
My countrymen, there is danger now!
Do not shut your eyes to it. It is a
matter in which you should feel tbe
deepest concern. Do not allow Gov.
Brown to divert your attention from
the issue by such twaddle as “ middle
men.” This railroad ring, of which he
is the head, I have no earthly doubt,
aims at dominion over the government
and people of the State; and under
such an audacious and unscrupulous
leader they will obtain it, unless the
people rise in their majesty, through
their representatives, and crush out
this unlawful conspiracy against them.
Governor Brown argues as if my only
object in attacking the pool arose from
purely selfish motives. I can well un
derstand why a man of his principles
and character could really believe it
impossible for any one to advocate a
cause except from selfish motives; yet I
do solemnly declare that my desire to
break up this great monopoly, which,
in my opinion, endangers the liberties of
the people, did not arise from any per
sonal interest. It was not that I ex
pected to make one dollar more or less
in freight.
It affects others—the great mass of
producers and consumers in this State
—who are less able to bear it. Ulti
mately it will prove detrimental to
every interest in the land— even the rail
roads themselves.
The violation of a great natural law,
which is as unfailing in its operation in
the commercial and economic world as
is the law of gravity in the material
world, such as attempting to forestall
competition, or defy the law of supply
and demand by engrossment, absorp
tion, amalgamation or combination, the
aim of which it to get rid of legitimate
competition, usually results disas
trously. In my judgment, the interests
of the people and the State, and the
railroads alike demand that it should
become the fixed policy of the Legisla
ture not to legalize another lease of
oue railroad by another, nor permit
any more consolidations or amalgama
tions ; and, above all, it should not
permit combinations to prevent healthy
competition. Any company’s charter
should be instantly forfeited that be
came bound to any other road or com
bination in the management of its own
business. If each road cannot of itself
manage its own business for itself, the
State should do it for it. It matters not
whether the combination be called a
pool or not, if it only exists, and has
for its object the regulation of rates of
freights or the prevention of competi
tion, it should be prevented by law.
Governor Brown says: “As this
‘middle-man’ is located in Augusta,
where he is interested in getting favors
from both the Georgia and South Car
olina roads, he hunts up an apology
for each of them for entering the pool;
for which, when the facts are made
known, they will probably fall under no
great obligation.
“He says: ‘The Georgia Road is
said to have gone into the arrangement
very reluctantly, and it is a notorious
fact that the monopoly against the will
of her President, Mr. Magrath. The
chief mover and promoter of the
scheme appears to be Joseph E. Brown,
President of the Western and Atlantic
Railroad Company.
“ Now, I have simply to say that this
statement is false as a whole aud false
in all its parts. I am not the chief
mover and promoter of the scheme ; it
did not originate with me. If the Geor
gia Road went into it reluctantly, it
gave no notice of its reluctance. The
South Carolina Railroad was not co
erced into it.”
I did not say that Joseph E. BrowD
originated the pool. I did not say and
maintain that he appears to be the
chief mover and promoter of it.
“ Now,” he says, “if the Georgia
Road went into the pool reluctantly it
gave no notice of its reluctance.” I
have not had a word of conversation
with Judge King, the venerable Presi
dent of the Georgia Railroad, since
Governor Brown’s article appeared. If
lie will say that he never opposed the
pool in any of their secret conclaves, I
will believe him. He can decide the
question, and by his decision I will
abide. It is said that the Georgia
Railroad went into the pool reluctant
ly, and I believe it. Until Judge King
states otherwise, I shall believe it. I do
not believe he will state otherwise.”
Not only did I say that the chief
mover and promoter of the scheme
seems to be Joseph E. Brown, Presi
dent W. & A. R. R. Cos.; but I went on
and said “who seems to have boldly,
and without scruple, used every power
in bis control to compel those who had
too high a sense of honor and right to
join the ring vcluntarily, to do so un
der compulsion—and it is a question of
some interest to the people of this
State to inquire when and how he got
such power as to be able to dictate to
other railroad officials even in other
States what their policy shall be. Is it
not time for the people to wake up
when this audacious man not only
heads a conspiracy against them,
but uses their own property —the
Western aud Atlantic Railroad—
as an engine of power to coerce
the unwilling into his iniquitous ring?
In order that the public may appreciate
the power exerted, and the resistance
made to it, I would refer to the Atlanta
Constitution of July 23d and 24th.”
I also said that there were many who
thought the recent orders of President
Brown in regard to the refractory South
Carolina Railroad would work a for
feiture of the lease.
The Atlanta Constitution, of July 24,
has an article headed, “YVhipped in! —
South Carolina Railroad Forced to
go into the Pool.”
In an article on the subject the editor
says of President Magrath’s position:
“He is opposed to the pool in theory,
and desires to be the same in practice,
but does not feel justified in jeopardiz
ing the property of the stockholders in
the South Carolina Railroad by a
single-handed fight with twelve or
fourteen other lines, who combine to
cut him off from intercourse and facili
ties. He does not regard the result as
satisfactory by any means, and holds
it to be a conclusion of necessity until
other and more equi table arrangements
can be agreed upon.”
Again, the same article goes on as
follows:
“He is said to consider it a very
grave and unwarranted injustice, that
he is forced to go into that sort of a
combination which his judgment and
feelings do not approve, and to give up
the direction of how his road’s busi
ness shall be manipulated, and its earn
ings disposed of by other parties, upon
pain of having the value of the road
property and franchises destroyed.”
In another part of the same article,
the editor says: “Mr. Magrath is un
derstood to think that when the busi
ness of freighting conies to this com
plexion, State Legislatures ought to
interpose their powers, and protect the
people from the combinations.”
If I misrepresented Mr. Magrath in
my former letter, he is at liberty to
correct me; I believe he would have
done so had I misrepresented his posi
tion. I said that “it was a notorious
fact that the South Carolina Railroad
was coerced into the combination,
against the will of the President, Mr.
Magrath.” It matters not when he
signed the agreement, whether first or
last. If there is any truth in the ex
tracts given above, he did it under
great pressure, and against his sense
of right, and would not have signed it
but for that pressure.
Governor Brown claws out of the
paternity of the pool; it is now left a
fatherless child; but he has been a
faithful god-father to it. We know not
what may have transpired in their
secret conclaves, where reporters and
spectators were excluded; but, through
New] Series—Vol. 28, No. 113
the vigilance of the press, we now and
then get a scrap. When an obscure
“middle man” draws out a shot from its
great head, Governor, Chief Justice,
President Brown (who can’t waste shot
off small game,) we make him show his
hand. He knows more about the pool
than I do, but I know enough about it
to know that he, as its chief mover and
promoter, has not scrupled to violate
the law and to forfeit the lease of the
State Road in trying to force the South
Carolina Railroad into his iniquitous
ring. I desire to eall the attention of
the Governor and the Legislature aud
the people of Georgia to the following
order issued by Joseph E. Brown,
President of the Western aud Atlantic
Railroad:
Western and Atlantic Railroad C 0.,)
Presilent’s Office, >
July 6th, 1875. )
Gen. Wm. Mcßae, Superintendent:
The committee appointed on the South
Carolina Railroad case, of refusal to keep
faith, report that Mr. Magrath adheres to
his p isition. I therefore desire you to out
off all connection with the South Carolina
Railroad, by refusing to issue through bills
of lading from Chattanooga, or other
points on our road, over said road, or to
sell through tickets to passengers over
said road, and to apply our local rates to
any business consigned to said road, and to
refuse to pay any advance charges fol said
road until it keeps faith and carries out its
contract.
(Signed) Joseph E. Brown,
President.
Now let us see whether he had a
right, under the terms of the lease, to
use that property for any such pur
pose. Let us see whether he has not
violated the terms of the lease, and,
therefore, forfeited it :
Section 10 of that act says : (t And
be it further enacted, That said lessees
SHALL NEITHER MAKE, NOR PERMIT TO BE
MADE, ANY DISCRIMINATION IN FAVOR OF OR
AGAINST ANY RAILROAD COMPANY, OR OTHER
PERSONS OR PARTIES HAVING BUSINESS CON
NECTION WITH OR RELATIONS TO SAID ROAD;
but all schedules and rates of freight
shall be so arranged as to give all con
necting roads in this State a fair and
equal chance, doing equal justice be
tween them in everything connected
with the management of said road and
the business relations between them ;
and no railroad company or express
company or companies, or a combina
tion of either, shall, in any event, be
come the lessees of said road ; but they
may become sureties on the bond of the
lessees.”
Let no one be deceived by his charge
that Mr. Magrath had failed to keep
faith with his (Brown’s) ring, (the chief,
if not sole, object of which was to de
prive the people of the benefit of legiti
mate and healthy competition between
the railroads). Can any association or
combination of railroad officials, with
him at their head, confer on him au
thority to break the law? to violate one
of the most important sections of the
act under which he obtained the lease?
It says: “That said lessees shall neither
make, nor permit to be made, any dis
crimination in favor of or against any
railroad company, or other persons or
parties having business connection or
relations to said road.” Read carefully
his order, given above, dated July 6th,
directed to his superintendent, and
see whether he has or has not
discriminated against the South Caro
lina Railroad, and other persons, or
parties having business connection
with or relations tef said road. If
the Western and Atlantic Railroad
has discriminated against any rail
road, persons or parties, it has violated
the terms of the lease, and has forfeited
it! Then the Legislature should cancel
it! The people aud the Legislature
should remember that this violation of
the law in this instance was for the
purpose of compelling the South Caro
lina Railroad to join his ring, or, even
to take his statement in regard to it,
of making the South Carolina Railroad
or its President adhere to it. And what
was the object of this railroad ring?
Was it to “encourage fair and just
competition between the different rail
road companies,” and to “ discourage
monopolies?” (When he was Chief
Justice Brown he declared that this was
the public policy of the State). Was
not its object to “destroy that just
competition” (against which he so
fiercely declaimed when the Central
Road attempted to get control of the
Atlantic aud Gulf by the purchase of
its stock ?) Was not another object
that he had in view the loading the
people with unjust burdens and the
making more complete the “ dominion ”
of his ring “ over the government and
people of the State.”
To prevent the public from being
misled by any quibble that Governor
or President Brown may make, in re
gard to this palpable and flagrant vio
lation of the tenth section above quot
ed from the act authorizing the lease,
on the ground that the South Carolina
Railroad was not included, by reason
of its being in another State, I will sim
ply say that if the Western and Atlan
tic Railroad Company have discrimi
nated against the South Carolina Rail
road. they have discriminated against
the Georgia Railroad! It is absolutely
impossible to discriminate against the
South Carolina Railroad without dis
criminating against the Georgia Rail
road. It could not diver t a dollar’s
worth of freight or passage business
from the South Carolina Railroad with
out diverting from the Georgia Railroad.
Therefore, as he has discriminated
against the South Carolina Railroad,
he has forfeited the lease.
His reasoning on the subject of re
bates, and lower rates of freight, are
worthy of the man who a few years ago
“could not see how banks, with such
enormous transactions, could make
their accounts balance to a quarter of a
cent.” I suppose he has learned how
that thing can be done, as I under
stand that he has filled the position of
director in a bank since. Now that he
is interested in banks, I shall not be
surprised if ho “slacks up slightly” on
banks, as he has done on railroad com
binations; that wish to destroy fair and
just competition, and make their “do
minion over the government and peo
ple complete.” Has he yet to learn
that, as a rule, everybody (pro
ducers, consumers, and middle men
included,) buy as low as they can,
and. sell as high as they can—availing
themselves of all the advantages that
competition affords? Is there any rea
son why railroad freights should be
made an exception? Is it any more
disreputable to go “nosing around” to
get cheap freights than it is to get
cheap cotton, or corn, or dry goods?
He proves, as clear as mud, that all
the benefits of reduoed rates inure to
the “middle men,” and submits as evi
dence a copy of a receipt given by my
firm to the Central Railroad Company,
for a rebate of fiftv cents per bale on
one hundred and sixty-four bales of
cotton, amounting to SB2. He estimates,
with his usual regard for truth, that we
got a double rebate. He decidedly in
sinuates that if we shipped for any of
our constituents that we cheated them
out of it, as he doubtless would have
done. His publication of the receipt is
most fortunate, as it demonstrates one
point in this controversy; proving that
To Advertisers and Subscribers.
On and after this date (April 21, 1875.) all
editions of the Constitutionalist will be sent
free of postage.
Advertisements must be paid for when han
ded in. unless otherwise stipulated.
Announcing or suggesting Candidates fot
office, 20 cents per line each insertion.
Money may at our risk by Express
or Postal Oruer.
Correspondence invited from ail sources
and. valuable special news paid for if used.
Rejected Communications will not lie re
turned. and no notice taken of anonymous
letters, or articles written on both sides
producers sometimes receive directly
the benefit of rebates and cut rates.
Messrs. Editors, I must inflict ou you
again the publication of this receipt—
here it is :
STATEMENT OF COTTON SHIPPED BY CLAG
HORN, H. & CO. TO OLAGHORN, HERRING
& CO., PHILADELPHIA.
1874 No. Bales. Marks No. Bales
July 29, Reo’pt 172 ICO 20 BC
“ 29, “ ....172 ORAN 19
Aug 13, “ ....173 INK 15
“ 19, “ ...175 SHY 97
“ 19, “ ....175 SC H 7
“ 19, “ ....175 OH 3
“ 21, “ ....177 PL E... ..57
“ 21, “ ....177 SE M 2
“ 21, “ ....177 CH 2
“ 21, “ ....177 SCH 2
164
Augusta, September 17,1874.
Central Railroad of Georgia,
To Claghorn, Herring & Cos.
For rebate on 164 bales of cotton as above:
164 bales cotton at 50 cents per bale $32 00
Correct: (Signed) J. B. Preston,
Agent.
Pay account Central Railroad $29 52
Steamship 52,43
(Signed) William Rogers,
. , Gen’l Sup’t.
Received payment October, 5 1874.
(Signed) Claghorn, Herring & Cos.,
per W.
An examination of the books of my
firm show that the nineteen bales
marked C. R. A. N., on the above re
ceipt, were shipped for and on account
of the producer, and that he was duly
credited with the fifty cents per bale,
($9.50), rebate the day it was paid.—
Five bales C. H., nine bales S. C. H., iu
same receipt, were shipped for and on
account of a dealer in this city, who
was also credited with the fifty cents
per bale, ($7), rebate the same day it
was paid. The remaining one hundred
aud thirty-one bales were shipped by
an operator here, and the account duly
received credit for the fifth cents per
balo, ($65.50), rebate the day it was
paid.
He says that he has in his possession
“ copies of other receipts of like char
acter, where Claghorn, Herring & Cos.
shipped cotton to other parties and got
rebates. I select one from themselves
to themselves to show that they were
sharp enough to take it both ways.”
His charge or insinuation above that I
or my firm have appropriated rebates
on freights belonging to others, is sim
ply false. My opinion is that the peo
ple of Georgia would be more interest
ed in an ex; ibit of his transactions for
himself, aud on account of the State, in
cotton during the war.
It will be seen that the authorities of
the Central Railroad furnished this man
with a copy of the receipt above pub
lished, Upon what grounds they as
sume to expose the private business of
their patrons to him, or to auy one, the
public will be curious to learu. It’is a
very unususual proceeding, and I ven
ture to say that no railroad manager
who fully appreciated the interests con
fided to him, and desired to promote
them would do it.
In regard to the rebate from the Cen
tral Railroad on 164 bales cotton, as per
above receipt, I beg to state, that whilst
I claim and notify all interested that it
is a pait of my business to “nose
around” for the cheapest rates of
freight obtainable, that in this instance
the “nosing” was done by the Central
Railroad agent—he came after me pro
posing the rebate. As to its apDearing
as a rebate, it was entirely at their sug
gestion and request, not mine. A bill
of lading, at actual rate named, would
have suited me better, and they knew it,
Whether the red tapery was to get the
use of the $8- for a month or so, or to
deceive their competitors, they can
answer.
There are many other questions con
nected with this controversy, in the
course it has taken, that I would like
to discuss, such as the peculiarity of the
Act authorizing the lease, which seems
to have been drawn in the|interest of a
ring, and so as to prevent competition in
bidding for it. And whether the ring
that leased the road actually gave the
security that they pretended to give ?
Whether the road was leased to the
highest responsible bona fide bidders or
not ? Whether, instead of $25,000 per
month, $35,000 or $36,000 per month
was not actually offered by responsible
parties ? And whether, instead of tho
people feeling so grateful to Governor
Brown and his associate lessees for
$1,425,000 “which would otherwise bo
collected from them by taxation,” they
have not had to pay over $600,000 more
than they would have had to pay ex
cept for his kindness (?), every dollar of
which has gone into his pocket and those
of his associates. And, while upon this
subject, I must be allowed ta say, lest
I be misunderstood, that I do not put
all his associates in the lease on tho
same footing with himself. He was
shrewd enough to seleot for his asso
ciates in the lease some men who had
sufficient character for him to bank on
in certain quarters—notably amongst
this class was Mr. Stephens and Judge
King, aud probably others, whose
character was something of a guaran
tee that they would not be a party to
despoil the State. And I apprehend an
investigation will reveal the faet that
they took no part personally, or by
proxy, in manipulating the peculiar
act authorizing the lease, or the form
ation of the ring which obtained it.
But I believe the same Brown will be
found, to have been the “ chief mover
and promoter of the scheme.”
Members of the Legislature, let not
the magnitude of the undertaking de
ter any one of you from giving this
lease question a thorough sifting. If it
should be proven that it has been vio
lated (aud I believe that it can be, and
ha3 been proven in this article), your
duty iis plain, and you should not hesi
tate to perform it. You should cancel
it. Let justice be done though the
heavens fall! The cancellation of the
lease would do no harm to the finances
of the State. As it was leased for less
than it was offered in the first place, I
have no doubt it could be relet uow for
a considerably larger sum (aud the
State needs the money), and upon better
security. But a far better poiat will bu
gaine 1 by the cancellation of the le d se
It will, I thiuk, not only breakup the
combi nation, the monopoly ,tne railroad
conspiracy against the people, but it will
prevent this same Brown and his ring
from ‘making their dominion over the
government and people of this State
complete. - ’ The movements of the
members of the next General Assembly
will bo more closely scrutinized than
usual upon this great question, involv
ing the interests of the people almost
to the extent of their liberties. We will
soe to what extent he has
his dominion over the government of
the State, and by the same engine of
power with which he said six years ago
the Central Railroad would “make
more complete their dominion over the
people and government of the State.”
Much more I would say, but I must
close for the present.
W. F. Herring.
— HH|.
Cheer up, old maids ! It’s calcula
ted that when a woman turns thirty
unmarried, she still has left 15>£ chan
ces out of 100 for getting a husband,