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THE CONSTITUTIONALIST
FRIDAY, May 14, 1575.
Spain lias paid the last installment of
the Virginias indemnity. We have the
money, but the vjetims of her savage
lieutenants lie rotting in the ground.
V t e momentarily expect to hear of
the death of John C. Bkeckenkidge.
He is very low. The whole South prays
for his recovery. A great tree is about
to fail in the stillness of the forest.
In the South Carolina department
will be found a just and beautiful tri
bute to the memory of Colonel John
B. Moore, of Sumter. Truly a warm
heart and the form of a nobleman has
been stilled in death.
Bowen is a fraud. Like the old fel
low in Judge Longsteet’s story of the
fight between Bill Stallings Bob
Durham, ho made out that he knew' all
about the Beecher and Tilton business
but on the stand the lawyers soon
four.d out ho was nothing but pre
tense.
The German Festival, now in full
progress, is quite as interesting as any
preceding year. Unlike the American
or the Englishman, no matter where the
German lives on this earth, or what he
follows, he will have his day of recrea
tion and enjoyment. Itia a happy dis
position, and adds greatly to making
one’s life glide smoothly down the
stream of time.
When a man breaks he must offer
some better security than his creditor
holds before he can effect a compro
mise. This seems to be the condition
of Rome and her bondholders in Au
gusta. Up to last night nothing had
been accomplished, looking to a settle
ment. Augusta bondholders are de
termined to stand still and do nothing.
Grant’s Col. Bristow continues to
knock holes in Chicago and Milwaukee
still houses. One of his ferret rats has
discovered a subterrean pipe attach
ment with sufficient capacity to make
Zack Chandler drunk even though it
only had an even start. Something
like the size of a main street sewer.
The meeting of the stockholders of
the Georgia Railroad has accomplish
ed its work and adjourned. John P.
King has been re-elected President,
Gen. McCrea, Superintendent, and all
the old Board, except T. J. Burney, re
signed, whose place will be tilled by
John H. James.
The Czar has left Berlin and the im
pression throughout Europe that war
between France and Germany has been
for tiie present averted. The London
Post says a rupture was more nearly
precipitated than is supposed. The
Demon, Unrest, wiil not suffer Bis
marck to keep the peace long. Mean
time, preparations for the inevitable
conflict go on with redoubled energy.
“The South Carolina Department”
is anew feature which appeared in our
paper yesterday morning and is con
tinued to-day. Hereafter, everything
relating to our neighboring State and
its noble people will appear under that
head. There are many other attrac
tive essential features in contempla
tion which will appear as soon as we
can get them properly organized.
An advertisement appears elsewhere
in relation to Inman, Swann & Cos., and
a rumor which prevails about them in
Oeorgii. We have always understood
the house as standing high. It has an
operative capital of over one million
dollars. It is represented in this city
by Mr. W. C. Sanders, who assures us
that it is perfectly solvent. Mr. S. is a
gentleman who stands high in Augusta
and is of undoubted veracity.
It is hard to dTaujThiiig with a boy.
It is hard to make him go to bed, and
it is hard to make him get up.— New
Orleans Republican.
The Underwriters’ Association.
Savannah, May 13.—The Underwri
ters Association of the South assem
bled again to-day. Reports of commit
tees received. By invitation, E. A.
Hewett, editor New York Insurance
Chronicle, delivered an able address on
the subject of Government interfer
ence with insurance companies. Liv
ingston Mims, of Savannah, was re
elected President; John B. Castte
mau, Vice-President, and Clarence G.
Knowles, of Columbia, Secretary. The
executive committee elected is as fol
lows : H. B. Walker, of Virginia ; At-
Muson, North Carolina ; Spencer, Flo
rida; Wessenberg, Alabama; Ezell,
South Carolina ; G. S. Raine, Georgia ;
Tucker, Mississippi; Judge Whaling,
Louisiana , Covington, Tennessee ; W.
T. Curry, Kentucky; W. S. Curiie,
Arkansas, and Sorley, Texas. The con
vention adjourned sine die, the execu
tive committee charged to select the
place aud time of next meeting.
The Lexington Turf.
Lexington, May 13. —In the mile
heat,3 —Searcher distanced Light Coin
and Misfortune. Time, 1:41%. Best re
corded time. In the mile and a quar
ter dash, Astral won. Time, 2:11%.
The Condition of Breckenridge.
Lexington, May 13.—Gen. Brecken
ridge retains consciousness. There is
no immediate danger of his death.
-■ H * M /f£ * • W d*- 4 ee v 4.
foe fails mmmmmm
FROM W ASHINGTON.
The Whiskey War.
Washington, May 13. —The Secretary
of the Treasury is still vigorously en
gaged in the Avork of proseuting the
raid against all partias engaged directly
or indirectly in the illicit whiskey dis
tillations. Orders for seizures are daily
issued. Among them was one to-day
calling for the seizure of an establish
ment in Cincinnati. Secretary Bristow
has directed that the investigation into
the condition of the distilleries and
rectifying house of Milwaukee be com
plete and thorough, and the Treasury
agents are requested in all case where
United States Attorneys and revenue
officials fail to give their support to
the investigations in progress to report
their names to the Department. The
agent at Milwaukee telegraphs to the
Solicitor to-day that he has discovered
a subterranean tank, with a capacity
of twenty-five thousand gallons, be
longing to one of the Milwaukee dis
tillers. Up to this time no changes of
revenue officials other thau gaugers
and storekeepers have been made.
Several officers of these grades were
removed yesterday and to-daj’.
Treasury Decisions.
The Secretary of the Treasury has
made the following decisions :
Salt in sacks is not considered a per
ishable article; cigars brought into the
United States in transit for foreign
countries may be forwarded to their
destination irrespective of the quantity
contained in suoti shipment; horses ex
ported to be trained may be returned
free of duty; marine hospital patients
are not to be treated at home except by
special permission in certain cases;
vessels are not to be documented
until inspection fees have been
paid; vessels licensed for the fisheries
are not to pay a tax on tonnage. Cot
tons arriving iu port, March 2, 1875,
and entered afterwards are entiiied to
ten. per cent reduction of duty ; Secre
tary Bristow in a letter to a firm in
Cleveland says: “In answer to your
letter in which you ask to be informed
if the inspector would be justified in
approving an old boiler which you pro
pose to put in anew boat now building,
you are informed that if the boiler iu
question has been previously used only
on steam vessels, and if the inspec
tor’s records show that it was in all res
pects in conformity to the requirements
of the steamboat acts in iorc e a t the
time it was built and first used,
and is now in good condition, its use
on anew boat may be permitted with
an allowance of working pressure such
as in the judgment of the inspector
may be used with perfect safety, the
pressure beiug within the limits pre
scribed by the law in force at the time
of its original inspection. Small launch
es and yachts are subject to inspec
tion.” Deteriorated drugs, &0.. shall not
be allowed to pass the Custom House
but must be either exported within six
months or destroyed at the expense of
the owner under the supervision of
the Collector. Paper imported for
printing purposes and to be expor
ted afterwards is dutiable. The
Department does not permit the
reshipment of goods in bond from
ports of delivery, fo which they
have been sent in bond from ports of
entry, the shipment iu bond to ports
of delivery being only allowed for the
purpose of withdrawal on payment of
duty at such ports.
FOREIGN NEWS.
Spain Pays Up the Virginias Money.
Madrid, May 13.—1 tis officially an
nounced that the Treasury has paid
Hon Caleb Cushing $35,000, the last
installment of the Virginius indemity.
The Czar and the Peace of Europe.
Washington, May 13.—Au official
telegram has been received at the Rus
sian Legation here from Berlin, stating
tiiat the Czar leaves Berlin entirely
convinced of the conciliatory disposi
tion which exist there, and which as
sure the maintenance of peace.
The Schiller Wreck.
London, May’ 13.—Underwriters,
agents and divers to-day attempted to
reach the wreck of the Schiller, but
were prevented from doing so by a
heavy ground swell.
Twelve Schiller victims have been
embalmed and sent to New York.
The Late War Cloud.
London, May 13.—The London Post
maintains that the late war rumors
were not groundless. Germany, alarm
ed at the rapidity of the French mili
tary reorganization, had arranged
everything for war and was on the
point of marching against France, but
the danger is averted for the moment.
The New Hampshire Contested Elec
tion Cases.
Concord, N. 11., May 13.—The Gov
ernor and council, who were engaged
until a late hour last night hearing the
contested Senatorial election cases,upon
whose decision hinges the political su
premacy of either party iu this State,
met this morning, when it was moved
that the questions involved in Senato
rial questions be referred to the Judges
of the Superior Court for their opin
ions, provided such can be obtained
before next Monday at 3 o’clock, oth
erwise, that the Governor be instructed
to get such advice as the circumstances
may admit. The motion was agreed to.
Adjourned till 3 o’clock Monday next.
mi ■
Skirmishing in the Mining District.
Wileesbarre, Pa., May 13.—A strag
gling fire was kept up from 10 o’clock
last evening until 4 o’clock this morn
ing upon the sheriff’s posse at Hutch
insou’s breaker by the striking miners.
They hope in this manner to frighten
the posse away. Four more men went
to work for Hutchinson this morning.
Jeff Davis in Texas.
Houston, May 13.— Jefferson Davis
delivered the address at the annual
Texas Fair.
A SECOND DISPATCH.
Jefferson Davis, in an address to the
Texas veterans of the Mexican war,
entreats them to boas loyal now to
the stars and stripes as they were
zealous and brave in defense of their
first flag.
Minor Telegrams.
Cadet C. S. Hall was fatally injured
at West Point, by a fall from his
horse.
Albany, May 13. —The new iron
bridge over the Erie canal gave way
yesterday, carrying with it a team of
horses, wagon and two men.
Albany, May 13.—The Senate passed
the elevated railroad bill to-day.
New York, May 13.—1 tis reported
the Farraday has picked up the direct
cable.
Washington, May 13.—The Rich
mond, flag-ship of the South Atlantic
i squadron, was at Valparaiso on the
28th of March. All well.
STANDING ARMIES.
FOURTH LETTER OF Ex-SECRE
TARY McCULLOCH.
The Debt of France an Unknown
Quantity— lts Increase Under Every
Form of Government—An Enormous
Debt the Natural Product of a Stand
ing Army.
To the Editor of the New York Tribune:
London, April 17, 1875.—1n a previ
ous letter I spoke of the debt of France
as beiug larger than that of any other
nation. It has been stated by high au
thority that the exact amount of the
debt of France is unknown. It is very
certain that, no intelligent statement
has been published giving the precise
character and extent of her indebted
ness. It is currently reported that not
lung ago a high official in the French
Ministry of France remarked that
“ there was not a single man iu France
who could tell the exact state of the
National debt.” Enough is known,
however, to justify the statement that
it is not onl y in its charge upon the
State, by the higher interest it
bears, but aDo in nominal amount, con
siderably larger than the debt of Great
Britain ; and it is interesting to
notice with what rapidity and under
what circumstances it has grown to its
present magnitude. Omitting all ref
erence to its increase and fluctuations
in earlier years, we find that at the close
of the First Empire—as Napoleon made
heavy requisitions upon the States
which he had vanquished—it amouuted
only to $350,000,000. While the re
stored Bourbons were in power it was
doubled. Daring the Orleans reign it
was considerably increased, and in
1818, at the commencement of the Sec
ond Republic, it had risen to $900,000,-
000. The Republic added $300,000,000
to it, and the Second Empire some sl,-
500,000,000 more. At the outbreak of
the Franco-German War it amounted
to about $2,700,000,000, and by the ex
penses of that war and the payment of
the indemnity it was raised, including
all classes of iudebtedness, to an
amount more than equal to twice the
present debt of the United States.
It will be noticed that a large part of
this increase was during the existence
of the second empire, when France
was engaged in no very expensive
wars, and when the country was in a
condition of unexampled prosperity.
Even in years of profound peace, when
the national income was increasing
with amazing rapidity, the national
debt was increasing with almost equal
rapidity. Deficits were constantly oc
curring at times when the Treasury
receipts ought to have been largely in
excess of the public expenditures. To
an American who thoroughly ap
proves the American policy it seems
utterly astounding that France, whose
fiuaiices in other respects have been
managed with singular anility, should
have permitted her debt to grow as it
has grown, when no uncontrollable
causes for extraordinary expenses ex
isted, and when the general condition
of the country was unusually pros
perous. The explanation can only be
found in the fact that France, when
not engaged in war, has been, as she is
now, preparing for war, and that all
her previous existing governments,
whether Monarchical, Imperial, or Re
publican, have lacked the nerve to
raise by taxation the revenues which
have been required to cover necessary
and unuecessary expenditures. The
present government lias made a good
start iu the right direction, whether or
not it has the stamina to stand up
against the unpopularity which high
taxes are sere to produce, remains to
be seen.
The standing army has been at the
bottom of all the financial troubles in
France, and. it is her standing army
and the standing armies of other
countries that menace the peace of
Europe. It is an absurd supposition
that these large and steadily increas
ing armies are necessary to preserve
the peace. Nations are subject to the
same influence as are the individuals
that compose them. Everybody knows
that it is the armed man who is the
dangerous and aggressive man, and
that in all communities in which arms
are carried, the law is constantly vio
lated, ii’, indeed, violence does not be
come superior to law. It is the in
creasing armies of the leading military
powers of Europe which made the
public mind here and elsewhere sensi
tive and apprehensive. These armies
are not created for the preservation of
the peace; they mean wav, and nothing
else. Germauy, the great military
power of Europe, not only maintains a
very large and thoroughly drilled reg
ular army, but she has enrolled all her
able-bodied men, of all classes and con
ditions, in what may be called a well
trained militia. France is attempting the
same thing : and is it to be supposed
that Germany will wait until France
considers herself strong enough to
assume the offensive before she strikes
again at her old enemy? Is France
arming without the intention of at
tempting the recovery of the provinces
she has recently lost? Are Russia and
Austria increasing their armies simply
to protect their own territory from in
vasion? The large and increasing ar
mies of Continental nations are not
only menacing the peace'of Europe,
but they are oppressing the people
with taxes, and checking the growth of
nations by withdrawing millions of
men from productive industry. Were
the armies which are now in prepara
tion for war disbanded, there would be
no breaches of the peace between na
tions, and there would speedily be no
national debts. A period of peace is
especially needed by France, and she
would have that peace if she disbanded
her army. “The Empire is peace,”
was the remark of the Third Napoleon.
What a blessing it would be to France
and to civilization everywhere if
she would now say, “ The Republic
is peace,” and verify the saying by fol
lowing the i xatnple set by the United
States at the close of the late civil war!
If she should do so she would shame
every European nation into doing the
same. France is a rich country, but
there is a limit to her wealth. She has
high financial credit, but there must be
eventually an end of her ability to bor
row. United Germany, unless her
strength should be distracted by eccle
siastical questions, which is not proba
ble—for whan the test is applied it will
be found that Catholic Germans are
more Geroian than Catholic—United
Germany, with her freedom from debt;
and her full military chest; her
larger population, aud the greater
submission to discipline of her cit
izen soldiers, will always be more than
a match for France in war. France
indeed, has everything to lose nod
nothing to gain by another contest
with Germany. Asa military nation
she is not equal to Germany,' but she
is superior to Germany in the excel
lence of her soil, the variety of its pro
ductions, and in the taste, the skill and
refinement of her people. The aim of
A.TJC4T7STA., (LA., FRIDAY MORNING. MAY 14. 1875.
France should be to excel all nations
in the arts of peace. This she now
does to a great extent, and she would
do so in a still greater degree if she
would forget her triumphs under the
great Corsican, and get over the delu
sion which she indulges that she must
become again the great war power of
Europe.
An American on this side of the At
lantic finds that there is much to be
learned from the older nations, but he
sees nothing to lessen his regard for
his own couurry, or to shake his belief
that a magnificent future is before it;
and there is nothing he refers to with
more gratification and pride than the
facts that the United States have no
standing army and are paying their
their debt. > Very truly yours,
Hugh McCulloch.
THE SOc7ALSAVAN&
Hon. D. A. Wells on the Politico-
Economical Problems of the Day
Meeting of American Sociologists.
Detroit, Mich, May 11.— The dele
gates to the American Social Science
Association have, for the most part,
arrived in this city, and a session of
unusual importance and interest is ex
pected during the next four days. The
following are among the most promi
nent arrivals: Prof. Pierce and wife, of
Harvard University ; Jas. M. Barnard,
Elizur Wright, MA. C. H. Dajland, Mrs.
J. C. Lodge, of Boston ; Reedville Blum,
Austrian Secretary of Legation, and L.
A. Wells, of Norwich, Conn., the Presi
dent of the Association, and Dr. D. 11.I 1 .
Lincoln, of Boston, the Secretary of
the department of*health.
Hon. David Wells was introduced
and delivered an address ou the gen
eral subject of social science, and espe
cially on the relations of capital and
labor, and of the mutual duties of so
ciety and the laboring classes. He
started with the proposition that never
before to-day has man been able to
produce so much with a given amount
of power. To illustrate this he ad
duced the fact that by the construction
of the Suez Canal the time of a vessel’s
passage from England to Calcutta has
been reduced from 110 or 120 days to
30 days. And this preponderance of
mind over matter is becoming more
notable, every year showing new and
valuable additions to the list of inven
tions. The fields of science and art are
still open to the inventor, but with the
advance of science came necessarily a
cheapening of the productions of labor.
What was formerly a luxury comes to
be a necessity, and former extravagance
is becoming frugality. Where this
cheapening process will stop is an in
teresting matter of speculation.
The speaker then examined the pro- 1
gressive stage of society as regards
the possession of property. The poorer
classes are gradually but surely learn
iug the motto, “ every man for himself
and the devil take the hindmost,” and
are determined that the devil of civili
zation shall not capture them, if it
does, they may, like the Communists of
Paris, draw down the whole fabric of
society into one common vortex of de
struction. The wealthy perceive this
spirit, and, from this perception,coupled
with the efforts and demands of the
poorer ones, schools, hospitals, church
es, sanitary and social reforms
sprang. Antagonism, however, origi
nated strikes, trades unions and organ
izations of that class.
A vagabond repays the society
which compels or assists him to his
vagabondage by founding a line of pau
pers, prostitutes, lunatics and drunk
ards. Society sees this, too, and meets
the case by all the means in her power.
The idea that the men who talk of so
cial science in our day are hermits, full
of book learning bnt devoid of experi
ence and actual knowledge of the evils
they would set right, is a mistake. To
show the absurdity of this belief the
speaker adduced statistics aud state
ments to prove tjiat by following out
the teachings of social science mortali
ty can be much reduced. The province
of the social science reformer is to
study statistics, compare results and
draw indubitable conclusions ; and for
this work society owes him a greater
debt than it owes the successful finan
cier or statesman.
The teachings of some European re
formers, that property is theft, seem
absurd in America. Law caunot regu
late the acquisition and division of
property. As well attempt to provide
by statute that all men snail be born
with an equal physical and mental ca
pacity for production.
Mr. Wells proceeded at considerable
length to apply the division principle
to American productions and acquisi
tions, and, to show the absurdity ani
impracticability of it, he said it is
proper and right for the workman of
the United States to demand and
strive, if he will, for the largest possi
ble share of the joint products of labor
and capital, for it is the natural right
of every one to seek to obtain the
largest price for that which ho has to
sell; but if, in so doing, he restricts
production, and.so diminishes abund,
ance, he does it at his peril; for by a
law far above any legislative control
or influence, whatever increases scarc
ity not only increases the necessity,
but diminishes the rewards of labor."
A St. Louis Family Extinct by the
Loss of the Schiller. —The los3 of the
steamer Schiller off the Scilly Isles, in
the English Channel, has brought
mourning into many families of two
continents. Among the two hundred
passengers reported drowned were
seven of eight from St. Louis. Mrs.
Ridgeway and her two little grand
children and her son-in-law, Mr. C. W.
Walter, were on board, and are belived
to be among the lost. Mrs. Ridgeway
was well known in this city, where her
husband was engaged in business
many years ; he died about five years
ago. Within a period of two months
Mrs. Ridgeway saw her husband aud
two daughters pass away, and now she
and her two grandchildren have found
a watery grave. They were the only
survivors of the family, and no rela
tions are left..— St. Louis Democrat.
The Statue of Stonewall Jackson.—
The Richmond (Ya.) Dispatch publishes
extracts from the letters of Hon. Beres
ford Hope to (Jen. Bradley T. Johnson
in reference to the statue of Stonewall
Jackson Mr. Hope promises in a short
time to forward photographs of the
statue, the work itself to follow after
the close of the Royal Academical ex
hibition in August. He states in the
meantime that the statue is seven feet
three inches in height, or with plinth
seven feet nine inches. Mr. Hope sends
two sketches as patterns for a pedestal
suitable for the statue, giving the
proper dimensions. These patterns are
simple and elegant, representing dif
ferent designs for a pedestal nine feet
high, eight feet six inches in diameter
at the base, and two feet five inches at
the top. The pedestal will be con
| structed of Richmond granite.
GEORGIA RAILROAD.
Second Day of the Annual
Convention of Stock
holders.
HON. JOHN P. KING,ELECTED PRESI
DENT.
The Purchase of the Western Hoad of
Alabam t Referred to the Directors.
GEN. W. R. McRAE PLACED IN THE
POSITION OF SUPERINTEN
DENT.
At about 9;20 o’clock a. m. the con
vention reassembled in Masonic Hall.
President King in the chair. The
stockholders in attendance numbered
only about half present yesterday.
President King inquired if the com
mittee on proxies were ready to re
port.
Col. David E, Butler, chairman of
the committee, read a report stating
that there were represented in the con
vention in person 10,347 shares of
stock, and by proxies 13,867 shares ; in
all, 24,212 shares, which eonstituteed a
quorum of the stock, 21,001 shares be
ing a majority. The report was re
ceived and adopted by acclamation.
It will be noticed that there were
present, according to this official re
port, only 3,211 shares over a majority,
or one-half of the capital stock of the
corporation, which numbers 42,000.
Major George Hillyer moved that the
Convention proceed to ballot for a
President and Board of Directors.
Carried.
J udge W. M. Reese, of Wilkes county,
made inquiry as to following the cus
tom of each stockholder writing his
name and number of shares controlled
on the back of his ballot, and was in
formed that the same mode of pro
cedure would prevail.
Hon. John H. James, of Atlanta, of
the Committee on Proxies, stated that
many changes had occurred in proxies,
and the committee had decided that
the latest|proxies by owners held good.
Mr. R. L. Moss suggested that voters
place their names and number of
shares voted in person and by proxy
separately on the back of ballots.
Col. Butler said he held in hand a re
vised aud corrected list of proxies
which had been made the basis last
night of the report of the committee,
to which gentlemen could refer for
thqir information. If new proxies had
been given since yesterday, the new
ones of course must be added to this
list.
The commstteee on proxies asked
that Geo. T. Jackson, Esq., be added
to their number as an inspector of the
election. The committee on election
that served were as follows: Messrs.
David E. Butler, Chairman; M. P. Sto
vall, R. L. Moss, John H. James, Thos.
C. Hogue and Geo. T. Jackson.
Use of Proxioii.
Mr. Franklin W. Cheney had been
requested to do so and made a motion
that no proxies be hereafter used
which are more thau three years old.
Upon two viva voce votes, the Chair
decided the*motioa lost.
Colonel Z. 11. Clark asked as to the
decision of the chair on the motion,
having not heard the decision.
Judge Reese, pendiug a motion to
take the ayes and nayes, said that the
vote could not be taken viva voce as
the legal votes in the convention were
determined by shares of stock.
W. H. Hull, Esq., attorney for the
road, explained that the matter of the
motion was determined by the by-laws,
which, by the company’s charter, were
in the province of the directors to
make, alter and amend.
Western Road of Alabama.
Vice-President J. W. Davies called up
the purchase of the Western Railroad
of Alabama by the Central Railroad
and Banking Corapanj aud the Geor
gia Railroad and Banking Company,
which had recently been effected under
the enabling act of the Georgia Legis
lature amendatory of the respective
charters of the two corporations. He
moved that this act be read for the in
formation of the stockholders, and that
this action of purchase be accepted.
Col. Z. H. Clark objected to the con
sideration of these two matters in one
motion.
Asa matter of privilege Major Hillyer
stated that several stockholders had
come into the Convention who were not
aware of the ballot for President and
Directors being taken, and moved that
these gentlemen be allowed to retire
to the room of the committee and cast
their votes. Carried.
Judge Benjamin Conley moved that
the enabling act be read for informa
tion of stockholders. Carried, and the
bill was read by Mr. Hillyer, assistant
secretary.
The number of gentlemen upon the
floor of the Convention had by this
time increased to nearly equal that of
yesterday.
Mr. Davies renewed his motion to
adopt the bill in order to invite, ex
pressions of opinion by its discussion.
It was deemed by many prudent
aud experienced railroad officiais
that the stockholders of the Georgia
Road should consider the step well be
fore entirely relinquishing their whole
interest and influence in the Georgia
Road’s connection by the West Point
and the Western Road of Alabama with
the Mississippi River aud Valley. Soon
the Great Southern Pacific Railway will
have been completed along this line and
through this section, and the giving up
of all control on it to the Central Road,
would, in his judgment, be detrimental
to this' corporation. For many years
past the Western Road, it was well
known, had not paid expenses, and the
Central and Georgia had been compelled
to pay interest coupons on its bonds.
The first murtgage bonds on the Mont
gomery and West Point Road of Ala
bama, with $150,000 interest, amouuted
to $900,000. Bonds amounting to
$1,200,000 jointly endorsed for this
company were now out, and it
was a question whether it would
be better for the Georgia Road
to let the Central Road turn all these
liabilities over to them, or to continue
qnd own theproperty joinfly, or to turn
the whole over to the Central. It was
better to take the property as security
for the debt than to let it go out of
their hands. The question involved no
party issue and no party feeling ; the
Directors wanted to do what was best,
and the same spirit would animate the
stockholders.
A Little Talk Against It.
Col. W. W, Clark desired to talk a
little about this question, for though
his views might be erroneous he had
mastered the faots in the case. He
was an original enemy of the measure
only from a knowledge of the facts,
aDd so continued. The project com
menced in 1870 through a clamor in
Augusta that the Georgia Road and
its President had neglected the welfare
and interests of this city while Mr.
Wadley was pushing connecting lines
to the West. J udge King, he remem
bered, resisted this clamor, but ulti
mately concluded it best to arrange
for the Georgia and Central Roads
to act together and meet the lia
bilities of the line in question. After
wards new liabilities had to be as
sumed. There were two branches, one
to Montgomery and one to Selma, in
length 103 miles. There were bonds of
the Western Road after the amal
gamation and the outstanding sec
ond mortgage bonds jointly en
dorsed by the Central and Georgia
Roads to amount of $1,200,000,
also SOOO,OOO more bonds, in all bonds
of $1,800,000 for which the two corpora
tions were bound. The first mortgage
covered the line east of Montgomery.
The coupons on the second mortgage
bonds had been taken up and were now
in the coffers of the Georgia and Cen
tral Railroad banks.
The road3 jointly instituted a suit
araiust the Western road, forcing its
sale and bought it for the minimum
amount covering the amount of the
debt to them, the whole indebtedness
of the road being a little over $3,000,-
000. Under these circumstances was
the road sold, the branch from Opelika
to Columbus by agreement passing
under the wing of the Central Road,
and that from Opelika to West Point
coming under the management of the
Georgia Road. Upon the consumma
tion of this purchase, the Georgia and
the Central are to enter upon the oc
cupany of the Western for their self
protection. An enabling act had been
passed by the general assembly to let
them accomplish this consummation ;
and he stood there to oppose this.
He preferred to discuss the issue
upon its merits, outside of any pros
pect of what may bo called repudiation
or of the legal responsibility of the
Georgia Road on tbe endorsements of
the bonds of the Western Road. First,
he was opposed to a copartnership
and to entangling alliances. The fate
of the Central, equally with that of the
Georgia, is unknown. Trade from
Southwest Alabama naturally tends to
Savannah, and freights have been
flowing in that direction, and the West
ern Road has not paid. Either might
buy under the act, tbe agreement or
arrangement for joint purchase not ex
cluding the one or the other. A Cen
tral director has remarked that that
road had determined to take the whole
responsibility if the Georgia faltered.
He preferred thi3 direction to the af
fair, and so held in consultation with
Mr. Wadley and Gen. Lawton. It
would be better if the Georgia buys at
all for them to own the whole and run
it in their own interest. But with the
natural tendency of trade and freights
from the section alluded to to Savan
nah, it would be better to let the Cen
tral have it all.
The sale was made on the failure to
pay its coupons, and if those in ;ms
session of it now should similarly fail,
the road would revert. Protectiou
would consist in the fact that the Cen
tral Road should meet the coupons.
If not met, the Georgia can find addi
tional protection in the foreclosure of
the mortgage, forcing another sale,
and would be in no worse condition
then than now, save from loss of pro
fits, if any are earned, and the damage
to rolling stock from its use. His owu
opinion was that the Central will carry
out in good faith this plan ; will give
a mortgage ou this very property to
the Georgia, and further agree here
after to let the latter road become a
party in the enterprise if the Georgia
should desire it. He didn’t think
there was any future in the Western
Road ;|the Pacific Road benefits and
effects were too far off' and dim. He
was there to say the stockholders
should put their inhibition on this
further entanglement. Since the South
western connection from Selma to West
Point came into the hands of the Geor
gia it had been an unvarying expense,
and he wanted to get rid of it.
Mr. Davies replied that the cash to
be paid on the purchase boro a very
small proportion to cost of the read
only some $65,000, counting what had
already been paid and the accrued in
debtedness of the Western Road to the
Central and Georgia. The liabilities of
these corporations were already $1,500,-
000 on the outlay.
Col. Clark said at the proper time he
would move more by resolution not to
receive this purchase.
Mr. Davies bad omitted to say that
the stockholders were interested in
the West Point Road $450,000, and
they would do well to consider how
their action in this matter would affect
their interests there.
Col. Clark replied that the West
Point Road had taken no part in the
saving of the Western Road, whose
chief beneficiary it was, and this was
au argument and a reason for the
Georgia to decline to do it —that road,
directly and immediately affected,
wouldn’t act, and he was opposed to
acting And working for them.
Another View.
Judge W. M. Reese said that as a di
rector lie had been urged to express
his views. President King could elab
orate and elucidate the matter so much
better that he hesitated ; nevertheless
he would express his dissent from the
views of Colonel Clark. The endorse
ment of ihe Western Road bonds was a
thing done before he was a director;
but he felt towards it as towards the
Port Royal Railroad complication.
There had to en good management in
the Georgia Road, but the great diffi
culty had been that it had paid too
many endorsement obligations on in
solvent roads’ bonds. No one can be
hound by this act of endorsement
unless the act was accompanied by
voluntary consent. The legislative
provision enabled the Georgia Road,
either separately or with the Central,
to buy the Western Road. If the joint
endorsement of the latter’s bonds was
absolutely legal, seeing no way of the
Georgia Road relieving itself fr*n the
obligation of these endorsed bonds, the
Georgia Road had better hold on to
this property. (Applause.) The read
with its branches is 165 miles long and
runs through the heart of Alabama
from Selma to West, Point. It has
been badly managed, but since this
litigafllon begun it had paid expenses
and put into the hands of the receiver
SIOO,OOO. The capacity of the road was
beyond its expenses and it had an evi
dent future before, and the Georgia
Road had better hold ou to it—had
better lay hands upon this property
than trust it all into the grasp of the
Central Road.
Litigation had recently been started
against the Georgia Road, and maybe
this litigation would eventuate in de
ciding all the endorsements illegal and
void. He hoped to God this would be
so (Applause). He could not say it
would result so; the acquiescence of
the stockholders in these endorse
ments for so long a time perhaps had
entailed insuperable embarrassments;
he would not express an opinion or
intimate an opinion as to the result—
the end of the litigation must fix
it. He would advise a conditional
acceptance of the enabling act and
the purchase—acceptance with the pro
viso, only in the event this litigation
holds the endorsement is binding; if
the endorsement is held not biuding,
the stockholders don’t want any bil—
if binding, they want the property and
not the promises or indemnities of an
embarrassed corporation. The stock
holders should have nothing to do
with the enabling act, unless the
courts of the country should say the
Georgia Road is bound by the endorse
ments. If the complainants abaudon
the suit, then also the stockholders
should go on promptly and finish what
had been undertaken. These views were
embodied in the following resolution
Judge Reese submitted.
Resolved , That the act of the General As
sembly respecting the purchase of the
Western Railroad of Alabama, amending
the charter of the Georgia Railroad and
Banking Company to that extent, be, anil
the same is hereby accepted upon the ex
press condition, only, that the present liti
gation respecting the validity of the en
dorsement and guaranteeing of bonds of
the Western Railroad of Alabama, is deci
ded in favor of said endorsement; in the
event that the present litigation is aban
doned and none other c .mmenced within a
reasonable lime thereafter, then also this
amendment is hereby accepted
The Legal Outlook,
Wm. Hope Hull, Esq., said it had
been intimated to him as the ordinary
legal adviser of the corporation that
the convention would perhaps be glad
to hear from him his view of the legal
status of this matter; he would not
venture a suggestion from any other
stand point.
First—Suppose the convention ac
cept the amendment to the charter;
then it goes back and makes good the
purchase, barring the question whether
the unanimous vote of a corporation is
necessary for the amendment of its
charter. Upon this question, his own
opinion was that only a majority vote
was requisite.
Secoud—Suppose the convention re
ject the amendment to the charter
embodied in this enabling act; then
the sale falls through, and one of
two results follow—either the Central
Road will go on with the enterprise or
it will back out; aud if the, latter,
then anew decree would have to be
made in Alabama, the Georgia Road
remaining liable, if liable at all, upon
the bonds it has contracted to pay. In
his opinion, these bonds in the hands
of bona fide holders in the markets are
binding upon the Georgia Road. The
first money from the sale would go to
pay the first mortgage bonds, and then
would be appled to others.
If the Central completes the pur
chase, the result will be that the raouey
already paid out in cash, amounting to
a good’ deal of cash, in taking up the
coupons on the endorsement bonds,
would be gotteD back, but the original
money expended would be lost. As to
liability, the Georgia would be rid ot
the $600,000 bonds guaranteed by
tbe Central and Georgia Roads ; there
would remain $1,200,000 and accrued
and accruing interest, upon which the
liability of the Georgia Road would re
main as now and in any event. Unless
the Central breaks, however, the Geor
gia would be relieved. He did not be
lieve the Central was going to break,
but thought it had seen its worst days
If it should break, the Georgia would
still have the road in Alabama. The
decree is as good a mortgage as can be
made.
If the Central should buy and then
break, the Georgia could theu buy and
perhaps at better advantage and upon
even more satisfactory terms. If the
Georgia should go entirely out, it
would be finished of the business and
the Central Road would absorb all.
These, Mr. Hull said, were simply legal
views.
More Opposition.
Colonel W. W. Clark desired to ask a
few questions. They were seeking a
common interest and to avoid a com
mon calamity. Applause of views he
regretted to hear. He was afraid of
endorsed bonds somewhere in pockets
ets that were the motive power. Judge
Reese favors a conditional acceptance
of the purchase—receiving the pur
chase with a proviso. The convention
had to accept it or decline it. Isn’t ac
ceptance, qualified or not, of the
amendment to the charter an acknowl
edgment of liability on the endorsed
bonds? He denied tlie authority of
the corporation to so endorse ; and if
this amendment to the charter was ac
cepted this denial would be pre
cluded. Judge Reese, he said, also
held that the convention should ac
cept the amendment to the charter
upon a decision yet to be made. By
buying out the complainants in the bill
dollar for dollar, the litigation would
be ended, and there were only three or
four huudred sharies among these
complainants. A voice (Mr. Zach H.
Clark) remarked—Three or four hun
dred more shares can be had at dollar
for dollar.
Col. Clark, continuing : The Central
Road had passed through its darkest
days. Tiie Georgia Road would
get its interest on freights that
passed over the Central from this
connection —nothing more. Savan
nah would be augmented in prosperity
aud Augusta w'ould be injured and
pulled down. There were small divi
dends declared from the Western Road
of Alabama before the war, but these
should have gone to pay its debts. A
strong poi nt had been made by J udge
Reese, in that the liability of the Geor
gia Road on those $1,200,000 bonds—
s6oo,ooo additional, in all $1,800,000
can’t be saken off. Should the Central
fail, the Georgia would have to pay the
whole on the joint endorsements.
If necessary for the protection
of the Georgia, let the Central
buy the railway, he would pay it to
do it; pud should the Central fail, the
road aud its property remain under
mortgage to secute the Georgia. Road.
The arrangement proposed was an un
equal bargain, unless the Atlantic and
West Point Road united in it. The lat
ter road was the full beneficiary of the
Western, and yet had taken no part in
the effort for its prosperity.
President King—The West Point
Road has by resolution adopted in
convention agreed to contribute to
wards the burdens of the purchase.
Getting Out of a Difficulty.
Major George Hillyer said he had
been consistently opposed to entang
ling alliances, and had opposed this at
its origin, as he had the assumption of
liabilities for the Port Royal aud other
roads. But the policy of entering into
such an enterprise is one thing, while
it is quite another thing what to do
to get out of such a difficulty.
He believed ia care in contract
ing debts, and in equal care
JNew Series—Vol. 3. No. 94
in paying debl* As to the va
lidity or the endorsement, let those
wbo desire test it. It would be wise to
look at things as they are The Con
vention would probably adjourn during
the day for a year, and if positive ac
tion was taken declining the amend
ment to the charter, the road would be
obliged to recognize the two first mort
gages and bo left with a liability over
sl,2oo,ooo—certainly haif of it—with
no security. The property of the West
ern Road was bid off fora little .>v
$3,000,000; the money was not to be
paid the only payment required beir, *
the accrued interest on-the hqnds. T >
complete this purelies now, on balanc
ing accounts, the Georgia Road voull
have to pay out $50,000 or $60,000. If
the Central fails and doesn't make the
purchase, this road will have to pay
out more than a million dollars, with a
clear loss of nearly a million dollars.
He agreed with J udge Reese that the cor
poration ought not re accept the amend
ment unless bound on the bonds ; if
j bound, it should go on and make the
i purchase. If the Western Road was
good property, both corporations
wouid bo wanting it; if bad, neither
would desire it. He believed Mr. Wad
ley and bis company not to be willing
to assume the responsibility of the
purchase alone. He would read a res
olution somewhat amendatory of that
of his friend, J udge Reese:
Resolved, That the Board ot Directors
be and they are hereby authorized in their
discretion to carry out the contemplated
agreement with the Central Railroad and
Banking Company for the purchase of the
western Railroad of Alabama, with au
thority to dispose of all interest of this
company in the property to the Central
Railroad and Banking Company, or to the
Air Line Railroad, or any other available
purchaser, so soon as satisfactory terms
can bo obtained for the indemnity and re
muneration of this comnanv, and for these
purposes the act of the Legislature ot Feb
ruary 27, 1875, be accepted as an amend
ment to the franchises of this corporation;
l*rovided, that this acceptance shall only
take effect, if the present litigation con
cerning the endorsed bonds is delivered in
favor of the validity of the *- ’dorsement
or if the present litigation shall be aban
doned by the complainants or plaintiffs.
Continuing, Major Hillver said,
the Central had to fear the Ail-Line
Road in competition, lying on a direct
line with the Western and ' West Point
Roads. The Air-Line is the best com
petitor for the Central the Georgia can
get, and it should be looked to as a pro
spective purchaser of the Western
Road, It had been stated by Colonel
Cole, the previous day, that the reve
nue derived from the Western for the
Georgia was $17,000. This statement
is no criterion of the business of the
read, as it looked only to freights that
came from it over the Georgia. Its
business had been filtered away, larger
freights passing over the Central and
Macon Roads; indeed, one n
100,000 bales of cotton had been carried
from Selma to Savannah for nothing.
The motive for the underbidding would
betaken away by the joint purchase,
aud the Western Road would be run : 5
its best advantage. It had made
SIOO,OOO to pay its bonds during last
year, and if worked up to its full ca
pacity it would pay the interest on its
own bonds the first year. From the
official report of the President, Mr.
Pollard, of the Western Road, it ap
pears that its prices have been run
down to a ruinous point, and this by
criminal competition. Of its profits of
$600,000, half had come from its pas
sengers. Little money was necessary
to be advanced ; it would pay for itself.
As to its future, the West was rapidly
building up and increase in immigra
tion would augment travel as well as
freights, These anticipated profits and
increase might be great or little; yet
it would be better to decide to hold the
property, if the Central or the Air Lins
should fail to purchase. At a cash
sale, it would be bought by wealthy
northern corporations, and the road
would be run by Augusta aud all Mid
dle Georgia. If the Central should go
ahead in the purchase, all would be
diverted to Savannah. In turning over
the property to the Central or Air Line
by trade, the Georgia can be protected
by stipulations. He moved the adopt
tion of J udge Reese’s resolution as
amended by himself.
Piews of the Hon. John P. King.
A. L. Alexander, Esq., asked that
President King would favor the Con
vention with his views. This sugges
tion and request received applause."
President King ssid he concurred in
the remarks made by Major Hillyer,
who had ably and fully expressed him
self upon the matter. He believed no
question would be made upon tbe lia
bility of the Georgia road endorse
ments as an original proposition.
A kind of common law of the
land, settled the status of such en
dorsements,mortgages and other tneaus
by which railroad lines were con
trolled by competing corporations. He
explained how the Pennsylvania Cen
tral, managed by J. Edgar Thompson,
Esq., that broad-viewed and big
brained noble mau, had secured sucu
control in various instances by legisla
tive acts, by the action of its board of
directors, by the purchase of stock and
in other ways. He animadverted
upon the nefarious national bank
system inaugurated by the general
government which had completed the
ruin of the South since the war aud de
preciated values. No surplus was here,
none had been rtoade, all made had gone
for expenses ftnd taxes. All were in
debt, having expended more than had
been made. This machinery had been
at work since the close of ar med hostili
ties, t*e nation itself taking the lead
and paying out more than it made, on
an income of 3 per cent paying from 5
to 7 per cent.
The limitation in the Georgia Road
charter restricted rates of freights on
heavy and certain light articles, and
these allowed charges had absolutely
been abolished by the inflation of the
national currency. It now costs 87 %
per cent, to run the road. We are very
poor in the South, and just so long as
our people borrow money and pay the
rate of the national banking system,
they will get poorer and poorer.
The subject matter under discussion,
as remarked, had been most fairly
stated by Major Hillyer. As an original
proposition, if any stockholder had ob
jected, the corporation could not have
been bound. But fair notice was given
and acquiescence fixed the obligation.
In a previous Convention a stockholder
had moved ihe reference of the whole
matter to the Board of Directors ; the
Directors were tbe agents of the Con
vention and of the stockholders, and
the latter had acted besides, making
the endorsement binding upon the cor
poration after full notice received.
No doubt the circumstances of the
endorsement of the Fort Royal bon is
were well recollected. It was a carious
case; indeed, an extraordinary one. * A
bogus concern, it was soon fully under
stood. A combination was entered into
to control the stock of the South Caro
lina Road, and thus cut off the Georgia
company from the seaboard, or confine
it to the river channel. At the time he
(Continued on fourth page.]