Newspaper Page Text
®bt Atlanta Wri-WecKl w Souraai
VOL. XXIII. NO. 31.
AID TD BOOTLEGGERS
LAID TO POLICEMEN
8T PROBE WITNESS
Dressmaker Tells of Watch
ing Game Through Peep-
Hole—Arranged With Man
on Beat to Make Raid
• ...
The special committee of city
council investigating charges of in
efficiency and dishonesty in the po
lice and detective departments held
a session replete with sensations at
the city hall Friday morning.
First was the declaration of Chair
man Harvey Hatcher that the com
‘mittee is investigating the board of
police commissioners as well as the
police and detective departments.
Next was interesting testimony by
Clarence Hart, an' admitted bootleg
ger, describing in detail how the
bootlegging business is carried on
’ and charging City Detectives Terry
and Howell with taking seven cases
of whisky from him and never turn
ing in but two cases at the station
house.
Third was the supporting testi
mony of Thomas H. Goodwin, Hart’s
, lawyer, that he was sure Terry and
Howell were in league with Griff
freeman, another alleged bootlegger,
to rob Hart of his whisky.
On the other hand, the police and
detective departments scored a point
when Aldine Chambers, of the police
commission, who is acting in the
role of attorney for the defense, drew
the declaration from Hart and from
H. A. Reeves, a whisky “runner,”
that they were never z “protected” by
any member of the” police or the
detective forces, and that they never
hard of any “protection” being fur
» nlshed bootleggers.
Chambers Acting for Folice
Hart, a dapper, well-dressed man,
talked with the utmost frankness
and fluency about bootlegging. Lean
ing back in his chair, he answered
any and all questions put by mem
bers of the committee, except as to
the source of his supply.
Aldine Chambers, of the police
commission, who has been acting in
the role of attorney for the defense
for the police and detective depart
ments, established at the outset that
the witness had a criminal record.
Hart admitted that he had been con
victed several times for burglary;
nad served terms in the penitentiary;
and for a time* was in the state in
’ sane asylum at Milledgeville. He
declared, however, that he would
support his testimony by bringing
before the committee Friday after
noon three or four other bootleggers.
Tells of Shipment
Hart said that on September 23
.last, he received ten cases of Scotch
whisky by express from Fort Pierce,
Fla., packed in wooden boxes, and
marked “Glassware and Clothes. ’
He had the boxes consigned to “C. R-
Smith,” he said, and got them him
self out of a local express office. He
refused to tell the name of the ship
per in Fort Pierce, but members of
the committee took notes on the tes
timony and declared they would in
vestigate further. Hart said he paid
J 65 a case for the whisky, and was
going to sell it for $l5O a case.
° Hart said he arranged with “Griff”
Freeman to buy the whisky, Freeman
making an appointment to come the
next night to Hart’s home, 136 West
Peachtree street. Freeman arrived
in his car, said Hart, and they were
loading ’t with the liquor when City
Detectives Terry and Howell ap
► peared on the scene. Hart declared
that the detectives took Freeman and
the whisky and drove away. Terry
threatened to "kill him if he ever
said anything about it.”
Hart said that he and a compan
ion, "Vic” Messer, of Savannah,
trailed the officers In another auto
mobile, but that Messer was afraid
to continue the chase and they both
r returned to town and went to see
Tom Goodwin, a lawyer.
Wanted to Prosecute Terry
"I knew they weren’t going to tttrn
in my liquor at the police station,
and I wanted to prosecute Terry,”
said Hart. He continued with the
statement that Attorney Goodwin
went to the police station the next
1 day and found that Terry had turn
ed in two cases out of seven which
Hart said the detectives got.
i Attorney Chambers began to ques
tion Hart closely about his acquaint
ance with Terry.
* "Sure, I know him,” said Hart. "I
.» used to be in the liquor business
with him!
“And then, when he went on the
police force, he quit the liquor bus
iness, eh?” asked Mr. Chambers.
“Well, I don’t know about that,”
replied Hart. “1 don’t like the idea
of getting on the police force in or
der to steal liquor, just because he
can make more money that way. If
he is going to be a bootlegger, let
him be a bootlegger. If he’s going
to be a policeman, let him be a po
liceman. 1 know Terry, Howell and
Grist Freemen were in partnership
to take my liquor.”
Aiderman Nutting interrupted to
ask if Griff Freeman was connected
with # he police force. The witness
replied in the negative.
Hurt testified that he and Terry
had an altercation at the courthouse
later on about the liquor episode,
and that Terry was tried for con
tempt of court for being so noisy
about it.
Attorney Goodwin Called
After Hart left the stand Attor
ney T. H. Goodwin, employed by
Hart to prosecute Officers Terry and
Howell, was sworn. He began his
testimony by saying that he was
absolutely certain that collusion ex
isted between Griff Freeman, the al
leged whisky peddler, and Officers
Terry and Howell.
'The whole thing was a rotten
frame-up between Terry, Howell and
’ meman, for Freeman to get Hart’s
whisky without paying for it,” said
Mr. Goodwin.
Mr. Goodwin said that the story
(Continued on Page 7, Column 5)
Baptist Meeting Adjourns
After Choosing Savannah
As Next Convention City
After a three-day session which is
considered to have been one of the
most important in the history of the
Baptist denomination in this state,
the Georgia Baptist convention came
to a close Thursday night at the Bap
tist Tabernacle. Choosing Savannah
as the place and December 7 as the
date for the 1921 meeting of the con
vention, the body concluded its de
liberations with a business session
into which were crowded many mat
ters of vital importance to the work
being done by Baptists in the state
of Georgia.
A brief resume of the results of
thel92o convention shows that the
representatives of the denomination
in Georgia came to the following de
cisions:
To maintain the executive commit
tee on its present basis of fifty-two
members rather than to enlarge it
so as to give each association at least
one member.
To instruct the trustees of the
Georgia Baptist hospital to turn over
to the holding commission the title
to the hospital plant on Luckie
street in Atlanta.
To authorize the issuance of sl,-
500,00 in bonds to be used in com
pleting the additions to the Georgia
Baptist hospital in Atlanta, and to
establish four other hospitals In va
rious sections of the state, naming
a special committee to co-operate in
perfecting this extension of the hos
pital system.
To operate the Christian Index on
its present basis —under the control
of the executive committee through
a special committee from that body.
To Instruct the executive com
mittee to plan for the establishment
of a summer assembly for the denom
ination.
Activities on Good Basis
Reports submitted by the heads
of the various departments showed
that the Baptist activities in Geor
gia now are on a better basis, more
extensive and more successful in
their operation than ever before.
These reports were by far the most
satisfactory of any in the history
of the Georgia Baptist convention,
which dates back ninety-nine years.
In every department—home and for
eign missions, benevolences, minis
terial relief, woman’s work, the B.
Y. P. U„ social service, hospitaliza
tion, education, evangelism, enlist
ment, publicity and administration —
great progress was shown, meriting
the heartiest approval of the conven
tion and its enthusiastic support.
It was shown that the $75,000,000
•campaign, carried on so successful
ly a year ago, resulted in a great re
vival of spiritual interest among the
Baptists of Georgia, so that every
departmental activity has reflected
the spirit of the campaign.
The closing day of the convention
saw many important matters decided,
among them that of extending the
operation of the Georgia Baptist hos
pital by establishing four other hos
pitals in various sections of the state
to form a great hospital system. In
conformity with the established pol
icy of the denomination, the title to
the original hospital plant on Luckie
street in Atlanta will be turned over
to the holding commission, which
holds title to all the physical prop
erties of the convention in the state.
The trustees of the Georgia Baptist
hospital were authorized to issue
bonds not to exceed $1,500,000 to com
plete the additions to the plant in
Atlanta and to proceed with the ac
quisition of Another hospital in Sa
vannah, one J in southwest Georgia
and one in north Georgia. A com
mittee of five members was named to
co-operate in this work.
Hospital Offer Accepted
The convention also decided to ac
cept the offer made by two private
hospital owners, Dr. L. G. Hardman,
of Commerce, and Dr. W. P. Har
bin, of Rome, to take over the man
agement and control ot these 'nsti
tutions, although the title to the
physical properties remains with the
owners. This taking over of con
trol entails no financial expense to
the convention.
A proposal was made to operate
the Christian Index, the denomina
tional paper owned by the conven
tion, through a special comm.sslon
of seven men who would elect the
editor, the latter to dictate the pol
icy of the paper and to be respon
sible only to the convention. This
resolution was defeated at the clos
ing session and the paper will be
operated as heretofore —by the spe
cial committee from the executive
committee.
Several resolutions were adopted
just before the convention took final
adjournment—to establish a perma-
(Continued on Page 7, Column 4)
A Personal Message About Our Astonishing 25c Offer
Here are some remarkable facts. They surprised and impressed
us far more forcibly than they will surprise and impress you. Just
three weeks ago we decided we could, afford to make our great sacri
fice offer. And we announced on this page that we would send The
Fri-Weekly Journal for three months to any reader who sent us Twen
ty-five cents. Almost before the paper was off the press, so it seemed,
the orders began to pour in. It was totally unexpected. They kept
pouring in all week. So we repeated the offer in the next week’s edi
tions. The rush of orders swelled to the size of a flood. We were
surprised again. But we felt, so nehow, that there might still be
some readers -who had neglected the chance. So we repeated the of-
< BARGAIN NO. 1!
By SPECIAL ARRANGEMENT, and for a SHORT TIME ONLY, this big MONEY
SAVING chance is open to you. Read it! and then ACT!
Send us TWENTY-FIVE CENTS (25c only), in pennies, stamps, silver, money
order or check. We will send you The Tri-Weekly Journal from NOW’ until March
15. That’s practically THREE MONTHS! And ‘ for the trifling sum of “TWO
BITS!”
CLIP THE COUPON!
The Atlanta Tri-Weekly Journal, Atlanta, Ga.; Enclosed find 25c, send Me Tri-Weekly
Journal until March 15.
Name
P. O
State
R. E. D. No
Several Cotton Mills
Resume Operations in
Charlotte Territory
CHARLOTTE, Dec. 10.—Continued
improvement is reported here in the
textile industry.
The Highland Park Manufacturing
company, operating two mills here
and one at Kings Mountain, announc
ed Thursday that operations were re
sumed after having reduced their
schedules and later suspending. It
was explained that operations will be
continued until Christmas, if not
longer.
Officials of the Elizabeth mill are
preparing to resume operations, it is
understood.
After standing idle for two weeks,
the dozen mills of the Armstrong
chain in Gaston county have resum
ed operations, some running full and
others part time. The Loray mill,
largest in Gaston county, has re
sumed operations on somewhat more
than half time, 60 per cent of its 90,-
000 spindles being operated thirty
hours per week. All of the 30 or more
mills in Gaston county are report
ed now in operation, some part time
and others full time.
David Clark, editor of the Textile
Bulletin, in an interview, stated that
“once the orders begin to come
through to the textile mills, they will
come in a flood,” because of the fact,
he said, that the textile output is
about 15 per cent below the average
of the war period. Mr. Clark said
he expected it will be “some time”
before a state of “normalcy” is re
gained in this territory.
Time Is Not Ripe
For Irish Peace,
Lloyd George Says
LONDON, Dec. 10.—Hopes for
Irish peace were dashed by Premier
Lloyd George’s announcement in the
house of commons Friday of tne gov
ernment’s refusal to recognize or ne
gotiate with the dall eireann (Irish
parliament), on which the Sinn Fein
ers had insisted.
Martial law in the most disturbed
sections of Ireland will be proclaim
ed, Lloyd George declared.
No formal negotiations have been
attempted, Lloyd George told the
house, although peacemakers on both
sides have communicated with the
government.
The prime minister declared he
was "regretfully convinced’ 'extrem
ists controlling the Irish 'murder
campaign” were not ready for peace.
“The only basis for peace,” the
Premier declared, ‘will be acceptance
by our opponents of unbroken unity
for the United Kingdom.”
The people of Ireland themselves
are most anxious for peace, Lloyd
George said, but the extremists will
not permit it.
Carolinian Comes to
Savannah; Gets Divorce
And Marries Next Day
SAVANNAH, Ga», Dec. 10.—Wade
H. Elsey, until a few months ago
a resident of South Carolina, may
come from a state that grants no
divorces, but he was close enough
to come over here and get one, and
as soon as he got it, he got married
again. Elsey was divorced from his
first wife Wednesday. Thursday
Mrs. Julia Eva Zeronee, of Charles
ton, joined him heer and they were
promptly married.
The bride had to come here, be
cause divorced persons cannot be
married in South Carolina.
Bomb Kills One in
Rumanian Senate
BUCHAREST, Dec. 10.—An infer
nal machine was exploded in the Ru
manian senate yesterday, killing one
and wounding several others.
Bishop Oradiaradu was killed in
stantly. Others wounded by flying
fragments of furniture and fittings,
were the minister of justice, the
president of the senate, a senator
and other officials.
The planters of the bomb were not
discovered.
ATLANTA, GA., SATURDAY, DECEMBER 11, 1920.
SENSATIONS LIKELY
INGAMBLINGPROBE
mm®
Other Victims of Alleged
"Confidence Men” Testify,
Jury Sessions Break Rec
ord for Length
A nurhber of confessions from fre
quenters of the various gambling es
tablishments in the city and the ar
rival of two more alleged victims of
the so-called syndicate of gamblers,
wire-tappers and swindlers, has caus
ed renewed activities on the part of
the solicitor general’s department to
ward the arrest of a local man, be
lieved to have been the “brains” or
the syndicate, and also other impor
tant arrests which, it is believed,
will take place within the next few
days.
The grand jury reconvened Friday
after an all-day session Thursday
and several more witnesses were
quizzed In the probe of gambling,
horse racing, swindling and other vio
lations of the law. It is unlikely,
according to Solicitor General Boy
kin, that the work of the investi
gating body will be completed this
week, but during the next few days
some startling developments are an
ticipated.
Among the witnesses who appeared
before the grand jury Friday morn
ing were: Dr. W. B. Franklin, pres
ident of the Franklin & Cox Drug
Co.; City Detectives Gillespie and
Hornsby; Police Sergeant Ryan; Ira
Fort, and Mrs. Floyd Woodward, wife
of the man who is alleged to have
been one of the principals in the so
called gambling syndicate.
Indications were that the investi
gation Thursday was centered on the
alleged gambling den at 49 1-2 Cen
tral avenue, found by Solicitor Gen
eral Boykin and members of a raid
ing party to be closely guarded by
three barred doors or wickets, a
guard and a sentinel. Several per
sons, alleged to have frequented this
place, were closely questioned and
several confessions were obtained
which, it is said, may involve a num
ber of prominent Atlantians.
It is believed that while all four
of the alleged gambling houses were
linked together and operated under
one head, the Central avenue place
was conducted mostly for "small
fry.”
X,ong Jury Sessions
The victims with the large
amounts of money at their command
were taken to the place on West
Peachtree street, where a more elab
orate system was employed, while at
Central avenue and the San Souci
hotel, 59 1-2 Cone street, the game
was confined to crap shooting and
poker. The place at 35 1-2 South
Broad street, Mr. Boykin says h e
believes, was the assembly room for
the confidence men. It was here that
the plots were hatched and the
"paying off” was done.
The work of the £rand jury is be
ing carried and very lit
tle information is being given out,
but every effort is being made to
learn who the members of the gamb
ling syndicate are and to effect their
arrest, also how the gambling
houses were able to exist so close to
the center of the city , without the
knowledge of the police.
Despite the fact that many of the
members of the grand jury are bus
iness men and the Christmas season
is at hand, they have continued their
work from 10 o’clock in the morning
unitl after 5 o’clock in the afternoon
with the exception of a few minutes
for lunch. An adjournment probably
will be taken Friday afternoon un
til 10 o'clock Monday morning.
News of the investigation having
reached other staes, many reports of
new victims are reaching the office
of the solicitor general.
J. A. Tutton, of Cherokee county,
Ala., and another man, whose name
Mr. Boykin declines to reveal for
the present, came to Atlanta Thurs
day and reported that they had been
fleeced out of about $20,000 through
fake stock market operations. Dur
ing the day Friday they will be
(Continued on Page 7, Column 7)
PREDICTS PASSAGE
OF DILL REVIVING
WAR FINANCE FIRM
Senator Believes Measure
Providing Funds for Agri
cultural Exports Will Be
Passed by Congress
WASHINGTON, Dec. 10.—Predlc
tion that his resolution reviving the
war finance corporation will be pass
ed today by the senate was made by
Senator Gronna, chairman of the ag
riculture committee.
The measure is designed to give
federal aid in the exportation of sur
plus agriculture stocks in this coun
try so as to prevent farmers having
to sell their crops below cost of pro
duction. The resolution also directs
the federal reserve banks to aid
farmers in the, present state of de
pressed prices.
Republican leaders have assured
him tl‘«y did not oppose the resolu
tion, Gronna said. Southern and
western senators are expected to
support the measure almost in a body
because of the demand for the re
sumption of the corporation from
agriculture and related interests.
The resolution must be passed by
the house following favorable action
by the senate, and signed by the
president before becoming law.
The resolution does not involve
appropriation of any funds. The
sum of $374,000,000 remains in the
treasury from the half a billion dol
lar appropriation made for the cor
poration when it was established.
This money would be available for
the proposed revived activities of
the corporation, but proponents of
the legislation declare the moral
courage which passage of the meas
ure would give agriculture and the
financing banks would make the use
of government funds largely unnec
essary.
Public Policy Discussion
Occupies the Attention
Os Farm Congress
KANSAS CITY, Mo., Dec. 9.—Mat
ters of public policy and welfare in
stead of tne scientific technic of
farming occupied the attention of
delegates Thursday at the opening
session of the twenty-fifth annual
convention of the International farm
congress here. More than 1,000 dele
gates are expected to attend the con
vention which continues through un
til Saturday.
The day’s proceedings began with
the message of United States Sena
tor Arthur Capper, of Kansas, presi
dent of the congress. Senator Cap
per was unable to be present and the
message was read. An address by
Herbert Hoover, former food admin
istrator, also was read, Mr. Hoover
being unable to be here.
Discussion of public matters, offi
cials of the congress declared, was
the first step toward the formula
tion of a declaration of principle
by the organization on matters af
fecting agriculture and the public.
Topics under discussion in confor
mity with a definite, pre-arranged
program included the tariff, immi
gration, marketing, co-operative and
otherwise finance, labor transporta
tion, balanced production, agricul
tural education, reclamation, agricul
tural organization, foreign markets
and livestock conditions.
In addition to these, the matter of
the international aspect of the con
gress was opened up, a marked
movement having developed for
eliminating its international features.
Members expressed the belief that
agricultural conditions internation
ally vary too greatly to admit of
treatment by one organization.
H. J. Waters, Kansas City, a mem
ber of the board of governors, spoke
on “the basis of agricultural prog
ress.”
C. H. Gustafson, Omaha, presi
dent of the National Co-operative
company, spoke on "Co-operative
Marketing,” and Edmund T. Perkins,
president of the American Drainage
Congress, on "The Development of
Waterways.” Topical discussion;
followed.
fer again last week. And listen to this! In one day last week more
orders came in than we received during the entire first week! The
total for last week fairly swamped us!
Here Is the Double Offer
Such an amazing response can mean only one thing. It means
that this special sacrifice bargain exactly suits the needs of our readers
when money is scarce! We feel it is our duty to give everybody a
chance. The offer still stands. Read the conditions. Tell your friends
about the opportunity. Act Today!
* F BARGAIN NO. 2!
Here’s the SECOND tremendous opportunity to SAVE! Tell the GOOD NEWS of
The Tri-Weekly Journal’s GREAT TWENTY-FIVE CENT offer to FOUR of your neighbors.
Take their orders at 25c each. Send us ONE DOLLAR ($1) only. We will
fill their subscriptions. And as payment for your trouble, we will extend YOUR
OWN subscription up to March 15 without cost.
CLIP THE COUPON!
The Atlanta Tri-Weekly Journal. Atlanta, Ga.: Enclose find sl. Send The Tri-Weekly
Journal until February 15 to the following four addresses. Also extend my subscription to
March 15, as per your offer.
Names Postoffice R. F. D.
Put your own name add address here.
I WORLD’S GREATEST ENGINE
DRIVEN BY ELECTRICITY
1 -; ~ ——yttzt
Above —Latest engine; below—Wisconsin’s first engine.
CHICAGO, Crowds gsrfng in awe at
th© world’s most powerful electric
locomotive, the newest giant on ex
hibition at the Chicago, Milwaukee &
St. Paul Terminal, had a glimpse in
to the future.
The vision is of electricity, entire
ly supplanting steam and railroad
ing. reaching undreamed efficiency
and comfort.
The new Goliath, about to be plac
ed in service on the 440-mile electric
zone of the C., M. & St. P., over the
Continental Divide of Montana and
the Cascade Range of Washington,
dwarfs locomotives of the past.
The First Engine
A little more than 90 years ago
Stephenson’s first steam locomotive
made its maiden trip in England.
Thirty-four vehicles composed the
train, of 90 tons, nad it attained the
marvelous speed of from five to ten
and even fifteen miles an hour! And
in advance rode a signal man on
horseback.
The new electric locomotive alone
weighs three times as much as Ste
prenson’s whole train. It could draw
35 such trains as Stephenson’s up a
1 per cent grade at 16 miles an hour
Split Five-Dollar Bill
Gives 100 Pct. Profit
To Clever Swindlers
Masters of the delicate art of
splitting a five dollar bill by pass
ing a knife between the front and
back covers are operating in • the
southeast, according to evidence
which developed Wednesday when
Robert Jones, a negro janitor at
one of the Atlanta schools, received
a "doctored” bill in change and re
ported his discovery.
Jones got what he thought was
a sound five-dollar federal reserve
note and turned it in at a bank.
The matter was reported to the se
cret service agents and Jones fur
nished officers with all the infor
mation in his possession.
Secret service officers declare
that the work is that of experts. In
thig particular case a five-dollar
federal reserve note had been split
carefully and one half of it pasted
over a similar split one dollar bill,
the figures of which had been al
tered. Handed out with the five
side up the bill easily passed for a
sound five-dollar note.
Bryan County Man,
Held for Moonshing,
Pardoned by Wilson
SAVANNAH, Ga., Dec. 9—W. W.
Clanton, a well-known citizen of
Bryan county, in jail here on the
charge of moonshining, has been par
doned by President Wilson. He left
for home Wednesday. He was serv
ing a sentence of six months. 11l
health wa sgiven as the cause for the
pardon, which came direct from the
president.
—or on a level nine such trains at
a mile a minute.
The first steam locomotive in Wis
consin in 1848 weighed 23 tons. The
electric giant weighs 275 tons. It is
88 feet long, has 4,200 horsepower,
can pull a train 65 miles an hour and
cost $112,000. It takes the place of
four ordinary steam locomotives.
, Its Advantages
Advantages to railroading of the
electric giant are these:
Does away with fuel trains.
Runs at an even spede.
Uses neither coal nor ■water.
Always teady to start.
No ashes to dump.
No flues to clean.
No boilers to inspect.
Goes through the heaviest snow
drifts.
Unhalted by zero weather.
Handles twice the load of a steam
locomotive at reduced cost.
Smokeless, noiseless, dirtless and
jerkless.
Waterfalls en route supply the
electric energy for operation of the
440-mile electric zone, which took
three years to build at a cost of $12,-
000,000.
Lights Are Turned Out
In Dance Hall and
Stolen Gems Appear
The disappearance of five diamond
rings at a public dance hall on Peach
tree street and the sudden appearance
of six members of the Atlanta police
force created a situation to remind
the gay dancers of stories of Raffles
and Arsene Lupin late Wednesday
night.
Miss Jane Inge, of New York city,
the owner of the jewelry, which she
valued at $1,500, said she laid the
rings upon a dressing table in the
ladies' retiring room, and returned
a moment later to find that they had
disappeared. Without telling any
one of the loss, the management call
ed police station, four detectives and
two uniformed policemen answering
the summons.
The officers suddenly appeared on
the dance floor, stopped the music
and announced the disappearance of
the jewels. The dancers looked at
each other in surprise, and in the deep
silence which followed, Officer Davis
made a short speech while Officer
McDaniel stood guard at the door, to
prevent anyone from leaving.
"The jewels are in this room,” said
the policeman, “and before we take
steps to search everyone here, we are
going to give the person who took
them a chance to return them. We
will turn out the lights in the la
dies’ dressing room for one minute,
and after that we expect to find the
five diamond rings on the dressing
table.”
When the (lights were switched on
the five rings were in the place from
which they had Deen taken. They
were returned to the owner, and no
arrests w r ere made. The dance con
tinued as if nothing had happened.
5 CENTS A COPY.
$1.50 A YEAH.
GREATEXPORTBANK
IS KW CERTAWTY;
STOCK ISSUE SOLE
Georgia’s Quota of $1,500,-
000 Taken and May Be
Exceeded When Subscrip
tions All Come In
Proposed at New Orleans in earls
November as an auxiliary of tht
federal reserve system for facili
tating the financing and exporta
tion of southern products, the Fed
eral International Banking companj
became a certainty Friday, when its
stock subscription books were closed
In accordance with the original pur
pose of its promoters. The minimurr
capital stock of $6,000,000, wltt
which the institution will begir
business, has been oversubscribed
according to reports received by thi
campaign committees that have beer
at work in the several southerr
states.
Georgia’s quota of $1,500,0)0 has
been subscribed, and there is good
reason to believe that this allot
ment will be exceeded when belated
subscriptions, which are now in ths
mail, are received In Atlanta
Robert F. Maddox, chairman of ths
campaign committee, and tabulated
by Robert E. Harvey, field agent.
With the announcement of sub
scriptions exceeding the mlnlmure
capital of $6,000,000 came also an
nouncement of a call for a meet
ing of the permanent, organizatiot
committee of the institution on De
cember 17. This meeting will b«
held at New Orleans. The call was
issued by Rudolph S. Hecht, presi
dent of the Hibernia National bank
of New Orleans.
How the States Responded
Under the scheme of organization
as agreed upon at the initial con
ference in New Orleans on Novem
ber 6. when the minimum capital
stock was fixed at $6,000,300, it was
decided to allot to each of the south
ern states capital stock in the in
situation equal to three per cem
of the capital and surplus of th<
banks and trust companies in th«
several states. Thus. Georgia’"
quota wptt fixed at $1,500,000. Nc
limitation, however, was placed upor
the amount in excess of this three
per cent that a bank or trust com
pany might subscribe.
Although no formal announcement
has been made concerning the sub
scriptions of the several southern
states, advices to The Journal front
the campaign committees indicate
that the following actually have beer
received:
Alabama $ l<50,00(
Georgia l,500,00(
Louisiana 1,500,00(
Mississippi 500,001 ,-
Tennessee 800,00(
Texas l,500,00(
Total $6,350,00(
The Campaign In Georgia
The stock subscription campaign
in Georgia was launched at the Fed
eral Reserve bank early in November,
following the return from the New
Orleans meeting of John K. Ottley
and Robert F. Maddox. Governor B.
M. Wellborn, of the regional bank,
entertained members of the Atlanta
Clearing House association and many
visiting bankers at a luncheon, and
it was here that the prospectus of
the Federal International Banking
company was outlined for the first
time. Messrs. Maddox, Ottley, Mills
B. Lane, Senator Hoke Smith and
Governor Wellborn, in short speeches
Indorsed the export bank unquali
fiedly.
Following almost immediately
thereafter, a meeting of the Georgia
Bankers’ association was held at Ma
con, on the call of H. Warner Mar
tin, its president, and here the cam
paign in Georgia took definite shape,
when approximately $1,000,000 in
subscription was pledged from the
floor of the convention, and plans
perfected for an intensive drive for
the remaining subscriptions.
For the purposes off the campaign
the geographical subdivisions of the
bankers’ association was followed,
and a campaign committee chairman
was named for each of the five
groups of banks, as follows':
Group I—James P. Doolan, Savan
nah.
Group 2—Rufus 11. Brown, Au
gusta.
Group 3—Ely R. Callaway, La-
Grange.
Group 4—James S. Peters, Man
chester.
Group 5—C. E. Martin, Fort Val
ley.
As chairman of the state campaign
committee, Robert F. Maddox ap
pointed Robert E. Harvey, of S. B.
Lewis & Co., as field agent for Geor
gia, and he has been in active qharge
of the state campaign, in daily con
ference with Chairman Maddox and
the several group chairmen. How
well the work has been done is at
tested by the results—subscriptions
actually received aggregating sl,-
500,000, with more in sight.
Although the tabulations for Geor
gia are incomplete, as stated, and
no formal announcement has been
made, it is understood that the sub
scriptions thus far received repre
sent 40 per cent of the banks of
Georgia, and that these institutions
control approximately 60 per cent of
the banking resources of the state.
Bank’s Origin and Ohiects
The Federal international Bank
ing company had its origin at th©
recent annual meeting- of the Amer
ican Bankers’ association, in Wash
ington, D. C. A number of promi
nent southern bankers attending this
convention conferred informally con
cerning conditions in the south and
the best means for expediting the
movement of cotton and other south
ern products.
In consequence of this conference,
a meeting was called for New Or
leans. November 6. to consider the
organizations of an export bank, un
der „the provisions of the Edge act.
This meetin gwas well attended by
representative banks from all parts
of the south, and resulted in the per-
( r .---t on Page 7, Column fit