USA > Georgia > The history of the State of Georgia from 1850 to 1881, embracing the three important epochs: the decade before the war of 1861-5; the war; the period of Reconstruction, v. 2 > Part 10
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The 854,500 advanced to Mr. Kimball by Gov. Bullock was to be re- tained by Gov. Bullock, under the resolution of purchase of the legisla- ture. This was not done. The committee of the legislature of 1872, E. F. Hoge, S. A. McNiel, W. H. Payne, C. J. Wellborn and John C. Nicholls report that the whole testimony touching the Opera House purchase they believe,
"Establishes, beyond doubt, not only the official corruption of Gov. Bullock, but his venality."
The legislature of 1872 appointed committees that made thorough in- vestigations of Gov. Bullock's administration. These committees were composed of conservative, conscientious men. The investigations were conducted under oath, and were full. The statement of the facts of Gov. Bullock's rule are taken from the official reports.
The committee, whose report we have quoted about the Opera House, further state that Gov. Bullock permitted Mr. Kimball to borrow $255,000 in the name and upon the credit of the State, and to retain the money in his hands. They report $76,834.09, as Gov. Bullock's personal special account with the Georgia National Bank, in which were mingled State and private money of Bullock and Kimball. They . further report that during Gov. Bullock's administration, he paid for Executive orders and proclamations published in forty-two papers the vast sum of 8143,397. Proclamations of reward would be followed by proclamations of pardon of the same criminal after his capture and payment of the reward. Proclamations of reward were published after the capture of the criminals. The committee reported that 849,361.75 had been spent in lawyers' fees by Gov. Bullock. They further report 523 cases of pardon by Gov. Bullock, including 566 persons, many before conviction, and some cases of brutal murderers. Some of the Governor's political household were engaged in pardon brokerage. Among the pardons granted was one to V. A. Gaskell, given in antici- pation of prosecution for violating section 4,402 of the Code of 1868,
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447
RAILROAD BOND FRAUDS.
he having paid the State Treasurer money to sign certain railroad bonds. The committee use this language:
" While making and encouraging complaints to the Federal government of countless crimes, many of them dependent for their heinousness upon the imagination of those who deemed it to their interest to magnify them, Gov. Bullock wrenched open, with the resistless hand of Executive prerogative, the prison doors which had been locked up by the LAW, and turned loose upon our people a horde of murderers, burglars and thieves."
The abuse of the pardon power was one of the strongest charges against Gov. Bullock. In the matter of the unauthorized endorsement of railroad bonds, Gov. Bullock, according to the committee, committed his gravest and largest breach of official trust. And they note the fact that all of these illegal endorsements were done in the interest of the roads of which Mr. Kimball was President. The Brunswick and Albany railroad was the cap-stone of these frauds. The enormous sum of 85,210,000 of State bonds and endorsements were given by Gov. Bullock to Mr. Kimball on bonds of this road. The law of State Aid required the road to be completed to get the State's endorsement, twenty miles at a time. The sum of $1,098,000 of bonds were issued illegally, for which there was no road completed; and even where the road was complete, the endorsement was in advance of the work.
The Bainbridge, Cuthbert and Columbus railroad bonds were endorsed by Gov. Bullock to the amount of $600,000, yet not one mile of road was ever completed by the laying down of cross-ties or iron, nor was one dollar ever invested in the road by private parties, as the Consti- tution, required. . The Cartersville and Van Wert railroad and the Cherokee railroad were the same railway, and enjoyed thus a double installment of bonds, one of 8275,000 and the other of $300,000. When three and a half miles were completed the Governor, who inspected the road in person, accommodatingly gave Mr. Kimball his endorsement upon the whole road. The name of the road was changed to the Cherokee Road, and a new set of $300,000 of bonds was asked and obtained to take up the first set. The exchange was never made, and both sets of bonds used, as in the case of the Opera House bonds.
In the matter of State bonds the same spirit of disregard of law and reckless extravagance was shown. There was needed some $300,000 to pay the legislature, and Gov. Bullock issued two millions of currency bonds to raise the money by hypothecation. These bonds were issued under the Act of August 27, 18:0. An act was passed September 15, 1870, authorizing the issue of gold quarterly bonds to take up the cur- rency bonds and for other purposes. Gov. Bullock issued three millions
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418
HIENRY CLEWS' FAMOUS ACCOUNT.
of these bonds, largely in excess of any need. The gold bonds were put out, but a million and a half of the currency bonds were left uncanceled. Henry Clews had 8800,000, and Russell Sage $530,000 of the dead currency securities. Mr. Kimball used $120,000 of them to get a loan of 850,000 from the firm of J. Boorman Johnston & Co., and $50,000 for a loan of $35,000 from the Fulton Bank of Brooklyn. Both Mr. Clews and Russell Sage, though receiving ample gold bonds to secure them, refused to give up their currency bonds. The committee says that it is forced to the conclusion that a portion of this money was raised for the private account of Mr. Kimball.
Of the three million gold bonds, $1,750,000 were placed with Clews; $500,000 with Russell Sage to secure a loan of $375,000; $300,000 with the Fourth National Bank; A. L. Whiton $100,000; $250,000 to H. I. Kimball on the Opera House, and $100,000 to J. H. James for the Executive mansion. Mr. Clews presented his account. He sold $1,650,000 of gold bonds for 81,432,230. He had claims against the State of $1,489,284.04, of which $41,061.78 was interest, and $92,995.30 commissions, making the handsome interest and commission account of $134,057.08 for handling less than a million and a half dollars. Of this account, 8609,192.28 was paid on notes and drafts of Gov. Bullock and Foster Blodgett in violation of law, and 8377,000 was paid on account of the State Road. The sum of $10,687 was paid by Clews to newspapers. Add to the enormous commissions the loss of $211,500 upon the face value of these bonds, and we see the State out $350,000 through Clews.
Gov. Jenkins had negotiated three millions of bonds at a cost of $1,110, and with an advertising bill of only $931; selling our securities at ninety-five cents. When Gov. Jenkins did this, gold was $2 pre- mium, while when Gov. Bullock was mismanaging our finances, it was $1.12 premium.
It would require a volume to detail the particulars of the mismanage- ment of Gov. Bullock's financial administration. It would not be an exaggeration to say, that there was hardly anything about it right. There was one unbroken continuation of violations of law and bold extravagance. Treasurer Angier and the Atlanta Constitution fought inch by inch this financial misgovernment. The bulk of the irregulari- ties did not come out until the long and exhaustive legislative investi- gation evolved them, but there was a great deal that was discovered and opposed, and clearly ventilated.
There is one subject that has not been touched, that was the great
449
THE HUGE STATE ROAD FRAUD.
unapproachable sum of all villainies. The State road, for 1870, furnished a companion pretty nearly to the famous Yazoo fraud. Maj. Campbell Wallace had taken the road under Gov. Jenkins, and made a brilliant administration. He regenerated it with a masterly skill. It was in ruin. He restored it. His net earnings for the year 1867 were $330,202. Col. E. Hulburt ran the road in 1869, commencing August, 1868, doing a fine business, and making regular payments into the State treasury, until the last month or two, when he was hampered. The treasurer of the road was William W. Clayton, a gentleman of large business expe- rience and shining integrity. In July, 1869, against Hulburt's earnest protest, Mr. Clayton was removed, and Foster Blodgett made treasurer. Hulburt was a professional railroader, and took pride in making a good administration, and he remonstrated that Blodgett was "not regarded by the people of Georgia as a man of integrity," and he believed him to be " an unprincipled man."
On the first day of January, 1870, Hulburt was removed, and Foster Blodgett appointed superintendent of the State road, holding the position until the 27th day of December, 1870, lacking a few days of making a year. In the annals of railroading there has been no such travesty of railroad management. Blodgett knew nothing of railway superintendency. Add to this ignorance the ingenious and wholesale utilization of the road as a pure partisan machine, and, as can well be conceived, the circumstances were perfect for a stupendous botch of administration. But the reality surpasses any possible ideal of perverted handling. Results will best describe the mismanagement.
The road was in fine order. The receipts during Blodgett's adminis- tration were, $1,464,37, out of which $45,000 only was paid into the State Treasury. Hulburt turned over to Blodgett, $109,131, making $1,573,868 that Blodgett had during the year. This amount, except the $45,000, was spent during the twelve months. Just before Blodg- ett's superintendency ceased, he represented to the legislature that the road was in such a condition as to need half a million of repairs. And he left a legacy of some $600,000 of debt in round numbers, that was afterwards paid by the State. This made the incredible aggregate of over two millions of dollars spent in one year, with the road so run down as to need another half million to repair it properly.
The details of this vast mismanagement are picturesque. Unauthor- ized offices were created. The road was packed with political em- ployes, and made the refuge for party tramps. In 1869 the party roll showed 743 men. Under Blodgett there were 1,442 names, or an 29
450
PICTURESQUE DETAILS OF THE GREAT STATE ROAD FRAUD.
increase of 699 useless officers fed at the public expense for partisan pur- poses. The increased pay roll was $178,574 over 1869. Many men were paid who rendered no service whatever, others were members of the legislature, and others in other business wholly incompatible with any work on the road. Hundreds of thousands of dollars of legitimate expenses were left unpaid. The investigating committee of the legis- lature of 1872, reported $499,903 as due from plundering officers and other sources. Attachment suits for $366,224 were brought in Fulton Superior Court. And thirty-three indictments were found for various crimes, including two against Gov. Bullock, one for cheating and swindling, and the other for larceny after trust.
W. L. Clark made a minority report that was a very clever piece of writing. It was a semi-satirical, humorous and shrewd presentation of the matter from a Republican stand-point. He frankly owned that a great number of petty frauds were clearly proven. One of the leading frauds was the Tennessee Car Company swindle. Mr. E. N. Kimball was the manager of the Car company, and made contracts and received pay for some fifty-six box cars, to the amount of $42,500. No such cars were ever delivered, and Gov. Bullock, Foster Blodgett and E. N. Kimball were indicted for cheating and swindling. This was one of the cases which was clearly made, but Gov. Bullock was not proven connected with it, and was therefore acquitted. Mr. Clark surmised that the parties did not intend to defraud the state, but their enter- prises miscarried, money was needed to bridge-over a chasm, and this questionable plan was devised for raising it.
The main point of this sharp-witted minority report of Mr. Clark was the showing that Democrats as well as Republicans had shared in the robberies. The figures were ingeniously arranged and interesting. The Republican pickings in the matter of law fees were $15,480, and the Democratic 848,247. The printing given to Republican journals in 1870 were 819,103, and to Democratic papers, $32,964. Of $1,586,188 that he said was paid, $635,018 was traceable to Republicans, and $809,586 to Democrats. Of clearly proven fraud, however, he traced $113,442 to Republicans, and $50,763 to Democrats. Clark claimed for the Republican administration that it gave liberal rates, and finally took the road out of politics. But he candidly owned this in regard to what he calls the " record of crime and shame."
" The examination has conclusively shown that the late superintendent was a bad man, and utterly unworthy of the trust confided to him by the Governor, and of the confidence reposed in him by the Republicans of the State. He not only defrauded the
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451
FURTHER RICH ITEMS OF RAILWAY MISMANAGEMENT.
people of their money, but the demoralization of his example was felt throughout the social and business and political circles in which he moved."
This is strong opinion to come from a Republican source. It may not be uninteresting to mention some of the specific matters of varied fraud that marked this redeemless year of railway misrule. Receipts for $7,296 of lard oil were forged in the name of A. J. Orme. A. L. Harris was paid $2,760 for a worthless railway switch. Receipts for $1,850 in the name of L. B. Langford were forged. Large numbers of Ten- nessee negroes were carried free down to Atlanta to vote. Accounts for $5,000 for boarding hands were raised to $8,923. E. S. Nixon, local agent at Chattanooga, caused a freight blockade, by giving preference to his own freight bought on speculation. Bogus names were placed on the pay roll and money drawn for them. Col. Hulburt testified that Gov. Bullock wanted him to advance money from the State Road Treasury, to purchase the New Era newspaper. And finally, in 1870, $7,000 of money for this purpose was raised on State road fraudulent passed bills. City Directories, for 1870, to the amount of $260 were bought. During the year 1870, a committee of the Bullock legislature investigated the road, and the bill for liquor, cigars and music for this festive set of inquirers was only $1,650, including some fifty gallons of whisky, fifteen gallons of sherry, 7,100 cigars and fifty-seven dozen lemons.
These unique specimens of the minor frauds will afford some concep- tion of the ingenuity of grotesque swindling that continuously marked this unequaled year of State railroad mismanagement in the wonderful years of reconstruction. Several humorous incidents will gracefully cap this rich chronicle. Mr. Blodgett stated with an inimitable humor that he took charge of the road to manage its "public and political policy." This was only surpassed in its dry wit by the response of the Auditor, N. P. Hotchkiss, who made a reply that became ludicrously historic to the question as to how he managed to save up twenty or thirty thousand dollars in a year or two, out of a two or three thousand dollars salary. Said this thrifty person-" by the exercise of the most rigid economy."
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CHAPTER XLI.
THE DOWNFALL OF THE RECONSTRUCTION REGIME AND BULLOCK'S RESIGNATION AND FLIGHT.
Bullock's $25,000 Libel Suit against the Atlanta Constitution .- That Paper refuses Bul- lock's Proclamation .- State Democratic Convention .- The Democratic Executive Committee .- Linton Stephens' Difference with the Committee .- The Election .-- A Democratic Legislature .- Congressmen .- Howell Cobb's Death .- Chief Justice Brown's Noble Eulogy .- Joe Brown and Ben Hill .- Hill's Letter of Submission to the Amendments .- The Harsh Ordeal of Public Odium he Underwent .- Touching Utterances .- The Lease of the State Road .- Chief Justice Brown Resigns .- O. A. Lochrane as Chief Justice .- The Kimball House .- An Historic Landmark of Recon- struction .- The Desperate Situation of the Bullock Regime .- Gathering Troubles .- Foster Blodgett Fails to get in as United States Senator .- Senator Joshua Hill .- The Greene County Presentments and Me Whorter .- The Ku Klux Investigation .- Seeking the State Crucifixion .- Impending Crash .- The Brunswick and Albany Rail- road Tumbles .- Gov. Bullock's Resignation and Flight .- Seven Days' Preparation. -Benjamin Conley Sworn in as Governor .- Gov. Bullock's Aspersion of the Legisla- ture .- Lively Comment on the Hegira .- Gen. Toombs .- "No Bleeding Martyr, but a Spavined Rogue."-Bullock's Criminal Prosecution .- Requisition for Bullock .- His Arrest and Final Acquittal,-Review of his Administration.
A MATTER much commented upon at the time was a libel suit for $25,000, brought by Gov. Bullock against the Atlanta Constitution, to check that paper, if possible, in its zealous warfare upon the wrongs of his administration. But the suit simply evoked derision, and stimu- lated the paper to greater activity of opposition. This journal also refused to publish Gov. Bullock's proclamations, denouncing their extravagance. This course brought a warm fusillade from a large portion of the Democratic press. Not until Gov. Smith was elected as the Executive, did the Constitution take one dollar of any sort of pa- tronage from the administration. This course gave that journal a strong hold upon the affections and confidence of the people.
On the 17th day of August, 1870, a Democratic convention was held in Atlanta. Gen. A. H. Colquitt was made President, and on the same 'day he was chosen President of the State Agricultural Society. This two-fold honor, voluntarily tendered by two representative bodies, the farmer's and public leaders of the State, was a public tribute of which
453
LINTON STEPHENS.
any man could be proud, and evinced the popular appreciation of this worthy son of an illustrious sire.
The convention had 300 delegates from 109 counties. Among the members were Thomas Hardeman, Jr., W. S. Holt, A. O. Bacon, S. A. Corker, P. Thweatt, Wm. M. Browne, J. S. Boynton, C. Peeples, D. . Scott, R. E. Lester, E. F. Hoge, J. Collier, N. Tift, R. N. Ely, L. N. Trammell, Geo. Barnes, J. R. Randall, A. R. Wright, A. H. Colquitt, W. A. Hawkins, Linton Stephens, W. M. Reese, A. R. Lamar, J. L. Seward, A. R. Lawton and J. Hartridge. Among these were two young men of promise. E. F. Hoge of Atlanta has since been in the General Assembly, and shown himself to be a person of substantial ability and decided character. James R. Randall is one of our genuine poets, who, as the author of "My Maryland," has won an enduring fame. That poem will last while the English language is spoken. Mr. Randall has been one of our most gifted and scholarly newspaper men, a writer of singular and vivid power, and at present, as one of the edi- tors of the Augusta Chronicle and Constitutionalist, one of the ornaments of Georgia journalism.
The resolutions of the convention were drawn by Linton Stephens, pledging the Democracy to stand on the unchangeable principles of a constitutional government, and to overthrow a corrupt state adminis- tration. No speeches were made, greatly to the disappointment of the Republicans, who hoped for some indiscreet utterance for political capi- tal. An Executive Committee was appointed of L. Stephens, J. Hart- ridge, J. T. Clarke, M. J. Crawford, J. Jackson, A. Reese, W. M. Browne, and R. A. Alston.
Linton Stephens was elected Chairman, and R. A. Alston, Secretary. Judge Stephens accepted the chairmanship in a ringing letter, in which while he acquiesced in the prevalent idea that none but eligible men should run for State offices, he took the ground that for Congress some ineligible candidates should be nominated and elected to make an issue. This letter struck the Democratic leaders of the State unfavorably, and a hot discussion was precipitated, the majority of the press dis- agreeing with Judge Stephens. In a few days Judge Stephens pub- lished an eloquent and masterly letter defending his views, but refused the chairmanship because he understood there was not a quorum present when he was chosen chairman. Col. Clifford Anderson was then made Chairman.
The election came off, and in spite of the extraordinary facilities for the administration to control it, the result was a sweeping Democratic
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454
JOSEPH E. BROWN AND HOWELL COBB.
victory. The wrongs of Bullock's rule had been so strongly presented and pressed, that in many cases Republican candidates for the Legis- lature in the white belt were compelled to repudiate the administration. The following congressmen were elected: D. M. Du Bose, Thos. J. Speer, P. M. B. Young, A. T. McIntyre, J. S. Bigby, W. P. Price and Nelson Tift. But R. H. Whiteley was seated in Tift's place. The only Democrats of this delegation were Young, Price, Du Bose and McIntyre.
The year 1870 was prolific in startling events. Gen. Howell Cobb fell dead suddenly in New York from a stroke of apoplexy. . His death shocked the State. Perhaps the most striking tribute paid to him was by Chief Justice Joseph E. Brown in the Supreme Court. The eulogy upon the distinguished deceased, by the presiding officer of this august tribunal, was a noble attestation to the character and greatness of Gen. Cobb, and it was especially touching in view of the strong animadver- sions made by the dead in his life upon the eulogist. Referring ten- derly to the harsh conflicts of sentiment, Judge Brown added these graceful and honoring words:
" All these differences, which grew out of conflicting opinions on public policy, in times of high political excitement, and producing alienation and estrangement, are evanescent and soon pass away. In the grave they are forgotten. And when under Divine Providence, one party precedes the other, for a little while to that habitation, which awaits all the living, they are never remembered and cherished by any honorable and generous survivor."
Chief Justice Brown had made large advances in regaining the esteem of the public so rudely torn from him. His condemnation of Bullock's schemes had shown the people that his position of acquiescence in recon- struction was conscientiously taken for the public good as he saw it, and that under an overwhelming provocation of unmerited and scathing public odium he had stood firm against the unnecessary and gratuitous indignities his unwelcome political allies had sought to put upon the State. His great ability and dignity upon the Bench, and lustrous judicial integrity, had made him an ornament to the State's judiciary. The popular passion had begun to subside, and men were learning to discriminate between the reluctant Republicanism born of sincere, pub- lic spirit, and the partisanism begat of venal ambition and looking to unlicensed power and an unctuous plunder.
It was a curious coincidence that while this distinguished and unsur- passable Georgian was emerging from his baptism of obloquy, another brilliant citizen, who had been foremost in the unsparing excoriation of Chief Justice Brown, was himself suffering the same political crucifixion
455
BENJAMIN HI. HILL GOES THROUGH THE SHADOWS.
for the same kind of public opinion, that had brought Brown into cen- sure. Hon. Benjamin H. Hill issued an address on the 8th of Decem- ber, 1870, to the people of Georgia, in which he took ground that the abhorred amendments were in fact, and would be held in law, fixed parts of the national Constitution. Usurpation, the most glaring, suc- ceeding, became law. It may have been criminal-was criminal-to aid in committing the usurpation; it is crime itself to break the law. His conclusion was, that we had a new National Constitution, with new and enlarged powers of government, establishing new and different relations between the General and State governments. And he urged the duty upon the Southern people to obey the new Constitution, to protect negro suffrage, and to cease quarreling over the divisions on the prin- ciples and events which led to the existing condition.
This address fell upon the State like a clap of thunder on a clear day. And for years Mr. Hill walked through the valley of shadows. He was lampooned, abused, and howled at. He was called Radical; accused of selling out to the Republicans; of changing politics with a view to election to the Senate, by a Republican legislature; and a thousand other hard criminations. For years he fought against public odium as Gov. Brown had done. It looked as if he was politically shelved. His best friends turned upon him. His ordeal was not altogether as severe as Gov. Brown's, but it was a harsh one, and his recovery was a striking instance of political vitality. "He made a public speech in February, 1872, that contained some peculiarly pathetic sentences. Said he:
"I freely state that my political life is an enigma."
He added after in a burst of defiance:
"I had rather be the humblest of those who would save you, and perish amid your curses, than be the chiefest architect of your ruin, and live forever the unworthy recip- ient of your deluded huzzas."
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