History of North Carolina: North Carolina since 1860, Volume III, Part 16

Author: Connor, R. D. W. (Robert Digges Wimberly), 1878-1950; Boyd, William Kenneth, 1879-1938. dn; Hamilton, Joseph Gregoire de Roulhac, 1878-
Publication date: 1919
Publisher: Chicago : New York : Lewis Publishing Co.
Number of Pages: 458


USA > North Carolina > History of North Carolina: North Carolina since 1860, Volume III > Part 16


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There was no question about the law; United States offi- cials were entitled to trial in United States courts for acts which they claimed were committed under color of their office. The fact to be remembered, however, in discussing public opinion on the subject, is that there was no possibility of se-


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curing the punishment of a Federal official in a Federal court, thanks to packed juries and to biased judges, notably Judge Bond. Consequently the vicious gang of ruffians, who were also Federal officials, were entirely irresponsible and violated the criminal laws of the state with perfect impunity until they were generally hated and dreaded. The cases already cited of their conduct are not isolated nor of exceptional gravity. As an example of others, one revenue officer shot down an old and innocent man for whom he had no warrant, without any excuse whatever, and went unwhipped of justice.


When the campaign of 1878 approached, the vigorous scramble among the democrats for nomination showed how confident the party was of victory. Nor were they deceived. In April the republican state committee inet and discussed three possible courses of action: first, allowing politics to drift; second, a formal disbanding of the party; and third, the reorganization of the party for an active campaign. After voting down the first two, they adjourned without tak- ing any action on the third. In July they met again and de- clared it inexpedient to nominate a ticket since there was no hope of success and it would be a waste of money when there was none in the treasury. On account of the apathy in the party, they recommended a formal disbanding. The underlying reason for this was not the certainty of defeat but the sense of outrage due to the southern policy of Presi- dent Hayes.


Chief Justice Pearson died in 1878 and Governor Vance after offering the position to George Davis who declined it, appointed W. N. H. Smith. The terms of all the members of the court would expire in 1879 and, provision having been made for reducing the number, only the chief justice and two associates were to be chosen. Opposition to the new chief justice developed almost immediately, Judge David Schenck and Daniel G. Fowle both aspiring to the position. In the dispute over the question of jurisdiction arising out of the revenue cases, it was claimed and widely supposed that Judge Smith upheld the Federal side. Judge Schenck had loudly taken an advanced position on the other side and was now offered as a candidate who would properly uphold the rights


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HISTORY OF NORTH CAROLINA


of the state. The contest became very bitter and little else was discussed politically. Governor Vance was in an awk- ward position. Naturally he desired Smith, as his appointee, to succeed, but he was himself a candidate for the United States Senate to succeed Merrimon and his supposed sym- pathy in the judicial contest seemed to endanger his chances.


In the midst of the campaign Judge Schenck's Ku Klux record was aired in a prolonged and bitter series of letters between Paul B. Means, who was managing Schenck's cam- paign, and Randolph Shotwell. This hurt his case. Then Tourgee published anonymously in a Greensboro paper over the signature "C." a series of brilliant and satirical letters, which, if it had not already been done, put an end to the hopes of both Fowle and Schenck. The latter withdrew in April on the ground that he had become convinced that the rights of the state would not be endangered by the election of Smith. Fowle awaited the action of the convention which nominated Smith for chief justice and Thomas S. Ashe and John H. Dillard for associate justices.


With the judges finally nominated, the senatorial cam- paign, which had been steadily under way, took the spot-light and held it until after the election, growing steadily in in- tensity until January 1, when Merrimon, having found that Vance was certain to win, withdrew from the contest.


The campaign for members of Congress and of the legis- lature was uneventful. The National Greenback party was organized in the state, the republicans encouraging it as much as possible. Quite a number of democrats joined it, but it played a small part in the election. In middle and western North Carolina there was much democratic discontent with the county government law, and a growing feeling that rail- road influence was unduly strong in the party. Consequently there were a large number of independent candidates, chiefly for the legislature, the most notable being Josiah Turner, who was elected in Orange. He immediately ran for Con- gress with republican support but was defeated. When the legislature met he was refused membership in the democratic caucus and during the course of the session become so unruly and boisterous, refusing to obey the speaker, John M. Mor-


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ing, whom he called "a gander head," that he was finally expelled. Thereafter he was identified with the republican party until the coming of the populists to whom he was favor- ably disposed.


The democrats carried the legislature and elected six mem- bers of Congress. One more was, however, seated on a con- test. In the Wilmington district A. M. Waddell, who had been in Congress since 1871 was defeated by Daniel M. Russell. Russell had printed as circulars many thousands of copies of Waddell's speech in 1865, advocating negro suffrage, and sent them to democratic voters. Between eight thousand and nine thousand failed to vote and so defeated Waddell.


The legislature was politically divided as follows :


Senate


House 79


Democrats


34


Republicans


16


41


It was a hard-working, serious body and one of the best legis- latures in the history of the state. It was in session sixty- six working days and out of about 900 bills and resolutions introduced, passed 450-a number of which were important.


Early in the session the will of the people at the third trial finally prevailed and Vance was elected to the Senate, defeating Judge R. P. Buxton. On January 28th he presented his resignation to take effect on February 5th.


The accession of Governor Jarvis marked a new era- one of construction. Vance had won distinction as war gov- ernor, and doubtless would have increased his reputation in his later administration had he served his term and had his heart been there. But his whole ambition now was directed elsewhere. He had thrown himself heart and soul into the redemption of the state, but he looked to the Senate, not to the governor's chair, for his reward. Governor Jarvis had won his spurs before but his great reputation was still to be made. With a passion for public service that carried him be- yond the partisanship of the times, constructive in thought and deed, progressive when reaction was imminent in state affairs, and highly popular with politicians, he took the office of governor and in spite of its small powers made it a center


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HISTORY OF NORTH CAROLINA


of influence. Not one of the governors of the state made a more definite impress. He regarded himself as the head of his party, responsible for the entire conduct of government, and as such he took an active part in politics. Bold and ener- getic, he followed ideas to conclusions and never hesitated to


GOVERNOR THOMAS J. JARVIS


assume responsibility. Upright, of spotless integrity, he quickly won public confidence and showed the possibility of leadership in the state. He was above all things a practical man who looked at every question from the angle of common sense and thus was able to accomplish much that he set out to do. Always sanely progressive he was never a radical and still less a reactionary. Not a gifted speaker, he had the rare quality of never speaking without saying something worth


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while. North Carolina has had but few more valuable citi- zens and public servants.


The settlement of the debt was regarded as certain through some compromise. Vance in his message discussed the ques- tion at length and said :


It is out of the question for us to attempt to pay it at its face value. Indeed, I do not conceive that there is any moral obligation on us to do so, nor do our creditors expect it of us. Quite one-half of our property upon which our bonds were based was wantonly de- stroyed by consent of a large majority of those who held them, and no court of conscience upon the earth would permit a creditor to destroy one-half of his security and claim full payment out of the remainder. But we can and should pay something.


The commission reported the plan and the legislature turned its attention to the matter. The debt of the state at the time may thus be classified :


1. Bonds issued before the war, known as "old


bonds" $ 8,371,400.00


Interest due on same 5,007,580.50


Total $13,378,980.50


2. Bonds issued since the war by authority of acts


before the war $ 1,774,000.00


Interest due on same 1,015,890.00


Total $ 2,789,890.00


3. Bonds issued since the war, by authority of ordinances of Convention and acts of the


General Assembly passed since the war. . $ 2,012,045.00


Interest due on same 1,160,773.35


Total $ 3,172,818.35


4. Bonds issued under funding acts of March 10, 1866, and August 20, 1868: Funding act of 1866 ... $2,231,000.00


Interest due on same


1,310,262.00


Total


$ 3,541,262.00


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HISTORY OF NORTH CAROLINA


Funding act of 1868 $1,657,600.00 Interest due on same . . 990,987.00


Total


$ 2,648,587.00


Total $ 6,189,849.00 5. Bonds issued during the war, by authority of acts passed before the war, for internal im- provement purposes, to which are added $215,000 issued for Chatham Railroad under ordinance of Convention of Jan. 30, 1862 $ 914,000.00


Interest due on same 674,690.00


Total $ 1,588,690.00 Total principal of debt, exclusive of special tax bonds $16,960,045.00


Total amount of interest due 10,160,182.85


Total amount of principal and interest $27,120,227.85


Under the law as passed this debt was to be settled by giving in exchange new thirty year 4 per cent bonds. But a classification of the debt was made and on all the "old".debt except that incurred for the North Carolina Railroad, a total of $2,794,000, 40 per cent would be paid. On a second group 25 per cent would be paid and on a third 15 per cent. The following table gives the figures :


Class Amount of debt


Amount payable


Forty per cent


$5,577,400 $2,230,960.00


Twenty-five per cent


3,261,045 815,261.25


Fifteen per cent


3,888,600 598,290.00


Total $12,727,045 $3,644,511.25


Under the terms of the law the following bonds were not provided for :


North Carolina Railroad construction $ 2,794,000


Chatham Railroad 1,030,000


Williamston & Tarboro Railroad 150,000


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HISTORY OF NORTH CAROLINA


Penitentiary 44,000


Chatham Railroad 215,000


Western N. C. Railroad special tax 7,960,000


Williamston & Tarboro special tax 300,000


W. C. & R. Railroad special tax 3,000,000


A. T. & O. Railroad special tax


106,000


Total


$15,599,000


But of these the North Carolina Railroad construction bonds secured by a lien on the state's stock in the road amounting with unpaid interest to $3,394,000 were taken care of by an act directing the governor to appoint three commissioners to negotiate with the holders and redeem them, on such terms as might be agreed upon, with new forty year bonds at not higher than 6 per cent interest, to be secured by a lien on the state's stock.


The bonds issued to the Williamston and Tarboro Rail- road, amounting to $150,000, without any interest were to be redeemed at the rate of 33 1-3 per cent when the company had executed a mortgage upon the road.


The settlement of the debt was completed by the adoption and submission of a constitutional amendment which was ratified by the people at the next election, which forbade the payment of the special tax bonds in the following terms :


Nor shall the General Assembly assume or pay, or authorize the collection of any tax to pay, either directly or indirectly, expressed or implied, any debt or bond incurred, or issued, by authority of the convention of the year one thousand, eight hundred and sixty-eight, nor any debt or bond, incurred or issued by the Legislature of the year one thousand, eight hundred and sixty-eight, either at its special ses- sion of the year one thousand, eight hundred and sixty-eight, or at its regular sessions of the years one thousand, eight hundred and sixty- eight, and one thousand, eight hundred and sixty-nine and one thousand, eight hundred and seventy, except the bonds issued to fund the in- terest on the old debt of the state, unless the proposing to pay the same shall have first been submitted to the people and by them ratified by the vote of a majority of all the qualified voters of the state, at a regular election held for that purpose.


The various compromises proved very acceptable to the holders, and by August 1st bonds amounting to about $4,000,-


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HISTORY OF NORTH CAROLINA


000 had been retired. Steadily the amount increased and by 1889 when the last report by classes was made, the debt stood thus :


Class Amount surrendered $ 5,081,900


New bonds $2,032,760.00


Left outstanding $ 395,500


Forty per cent


Twenty-five


per cent. 2,637,045


659,261.25


624,000


Fifteen per cent


3,332,100


499,815.00


556,500


Total


$11,051,045


$3,191,836.25


$1,576,000


Since that time redemption has continued until the amount unredeemed in 1903 was $2,000.


As commissioners to settle the North Carolina Railroad bonds the governor appointed George Davis Montfort Mc- Gehee, and Donald Bain. The compromise involved the issue of new 6 per cent bonds to the amount of $2,756,000. Almost at once bonds were issued to the amount of $2,720,000, leav- ing $36,000 unredeemed. In 1916 the unredeemed bonds amounted to $19,000.


A suit brought by August Belmont to force the collection of the special taxes was dismissed by the Supreme Court of the United States. Other suits brought later with the same ultimate purpose met the same fate.


Early in 1880 W. J. Best and a group of associates pro- posed to buy the Western North Carolina Railroad which was still unfinished. A special session of the legislature was necessary for this and both the directors of the road and the board of internal improvements advised the governor not to call it. But finally Best and Company put up a certified check to cover the expenses of the session and the governor called it in March and submitted the proposition to it.


The road from Salisbury to Asheville, a distance of 148 miles, was about complete, but the branch from Asheville to Paint Rock, a distance of forty-five miles, and the branch from Asheville to Murphy, a distance of 135 miles, and thence twenty miles to Ducktown was unfinished. Best and Com- pany agreed to complete the Paint Rock branch by January,


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HISTORY OF NORTH CAROLINA


1881, and the Ducktown branch by January, 1885. They were to be allowed to issue mortgage bonds of the road up to $15,000 per mile, deducting $850,000, already issued which they assumed. The state was to receive $600,000 and failure to carry out the contract in full involved forfeiture to the state.


The outstanding advantages of the transaction were the relief of the people from $183,000 of annual taxation, and from the responsibility for the debt of the road, and, most important of all, the rapid completion of the road in which was bound up the future of eleven counties of tremendous natural wealth which had been to this time isolated. Nor was it an unimportant thing for the state to get out of the busi- ness of building railroads.


The purchasers of the road were unable to carry out the first part of their contract on time and an extension was made. Best was deserted by his associates at the beginning but a group of railroad men headed by A. B. Andrews came to his aid, and later his interest passed to the Richmond and Danville Railroad and the work was carried to a successful conclusion.


The action of the governor and the legislature was much criticised and the conviction grew stronger in many minds that the railroads were in control of the state. Republicans, as a matter of course, held this view, but it was not confined to them. Democrats in large numbers shared it and the dis- content resulting from the belief combined with a natural reaction made democratic strength fall off somewhat.


In 1880 began the first exodus of the negroes. From the close of the war it had been the habit of white people to ex- press the wish that all negroes would leave the state, but when a very small movement of the sort began, there was widespread alarm and angry opposition. The state could not dispense with negro labor, particularly when it was not be- ing replaced by white labor. So the negro was at first advised not to leave, and later, when the movement seemed some- what more serious, almost commanded to stay. Frederick Douglass made a speech in Raleigh in 1880 in which he said, "A flea in a tar-barrel, without claws, is far better off than a


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HISTORY OF NORTH CAROLINA


Southern darkey up North without money. The exodus the colored people want is the exodus from ignorance, vice, and lack of thrift."


The departure of the negroes was not on any large scale, and their numbers in the state grew steadily. The census of 1880 showed the negro to be in a majority in twenty-one counties and the creation of Vance County two years later added another black county.


Governor Jarvis was naturally anxious for another term, but he was not without opposition. Daniel G. Fowle and Alfred M. Scales were also in the race and a furious pre- convention campaign took place chiefly between Fowle and Jarvis in which great heat and feeling was developed. Jar- vis won in the convention only to enter at once upon another campaign.


For the republicans were in no mood to hold back as they had done in 1878. A state convention was held in which R. P. Buxton was nominated for governor and a platform adopted condemning the sale of the Western North Carolina Railroad, viewing "with alarm" the progress of railroad consolidation, and declaring the democratic party an oli- garchy controlled by railroad corporations and influence. Not less sharply did they condemn the convention of 1875 and the constitutional amendments, declaring the latter invalid. The county government law they characterized as "utterly subversive of the rights of the citizens, the grossest political robbery ever practiced in this or any country, the most damnable fraud ever devised or sanctioned by any political party." Declaring themselves as a party, "ever the friends of education," they demanded better schools.


A joint canvass was arranged. Governor Jarvis devel- oped unexpected strength on the stump and rather outclassed his opponent who in August abandoned the joint debate. The result of the election seems never to have been in much doubt on either side. Jarvis received a majority of six thousand, the democrats carried the legislature with large majorities in each house, and won every seat in Congress except the one from the black Second District which the republicans carried.


Governor Jarvis in his inaugural recommended a rail-


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HISTORY OF NORTH CAROLINA


road commission and with emphasis demanded educational improvement. Under his spur the legislature passed a new and improved school law. A social question, new for North Caro- lina, was raised when petitions were presented, signed by more than one hundred thousand persons praying the passage of a law prohibiting the manufacture and sale of intoxicating liquors. Behind the petitions was a movement of considerable strength and the legislature happened to contain a large num- ber of men favorable to the idea. These, combined with those who thought the popular element so great as to make it good politics, secured the passage of an act submitting the question to a referendum of the voters to be held October 1st.


The campaign on the prohibition question did not make a great deal of noise. On June 1st a great anti-prohibition con- vention was held which unsparingly condemned prohibition on moral, political, social, economic, physical and financial grounds. The resolutions make interesting reading in 1918. The press had comparatively little to say, but long before the election came it was clear that the proposed law would be defeated. Only four counties, Cherokee, Clay, Yancey, and Transylvania had majorities for it and the majority against it was approximately 118,000.


The feeling aroused among democrats by the prohibition campaign was taken advantage of by the republicans. Dr. J. J. Mott, the state chairman, was determined, if such a thing were possible, to break the color line in politics. Ne- groes had been encouraged in 1881 to vote for prohibition and thus establish a relation at the ballot-box with the demo- crats which it was hoped would lead to future political affil- iation between them. The negroes were already restive because of the feeling that they were not receiving a fair share of the offices, and in May, 1881, held a convention to voice their demands for a fuller recognition of their claims. But Mott's plan of dividing their vote failed because the democrats would have none of the negro, because the negroes were equally determined not to join the democratic party, and because whenever a campaign came the rank and file of republicans employed all the old devices to consolidate the negro vote.


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HISTORY OF NORTH CAROLINA


With discontented and anti-prohibition democrats, Mott was more successful. Talk began to be heard of "Liberal" as opposed to "Bourbon" democrats. Those democrats who had joined the greenback party in 1880 were mostly avail- able now, and to them were soon joined a considerable group of new seceders. Notable among these were Charles A. Price, C. A. Cook, Tyre York and J. M. Leach. Mott had high hopes of effectively dividing the democratic party and wrote the assistant postmaster general in 1882 that numer- ous small offices which were in the hands of "Bourbon" dem- ocrats might with advantage be given to liberals if no re- publicans wanted them. This "pone of bread" argument worked in many individual cases but it did not go far politi- cally. Not enough of the "Bourbons" came over.


In pursuance of the plan, an Anti-Prohibition-Liberal convention was held in which appeared from the republican party William A. Moore, J. J. Mott, James H. Harris, J. E. O'Hara, and I. J. Young. Nothing more was needed to class- ify the gathering and to locate its ultimate political destina- tion.


A democratic convention met in July and nominated Thomas Ruffin for associate justice and R. T. Bennett for con- gressman-at-large, the state not having been redistricted since the new apportionment. The platform denounced Fed- eral interference in elections, the internal revenue system and all its workings, declared the prohibition question settled, endorsed public education in a perfunctory way, declared continued opposition to paying the special tax bonds, and pledged continuance of the county government law or some- thing similar.


The republicans nominated O. H. Dockery for congress- man-at-large and formed a coalition with the liberals who endorsed the nomination. Both groups loudly condemned prohibition and the county government law.


The campaign which followed was interesting. Every device was employed by the democrats to discourage the lib- erals who were promptly dubbed "assistant republicans." Much was made of the conditions in the Sixth Federal Reve- nue District and many charges were made against Doctor


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HISTORY OF NORTH CAROLINA


Mott, the republican chairman who had formerly been col- lector, whom the democrats justly. regarded as the author of their troubles. A committee of the United States Senate, with Vance as chairman, made an exhaustive investigation which was not allowed by the other members to terminate, until after the election, but it was unable to discover any- thing greatly to Mott's discredit. Undoubtedly the revenue service was an important part of the republican party ma- chinery, there was disclosed considerable corruption on the part of numerous subordinates, but Mott's personal reputa- tion did not suffer from the investigation and it was clearly shown that under his administration the service had stead- ily improved. The great trump card of the democrats was the Reconstruction record of the republican party, particu- larly in relation to public finance, and it overmatched the opposition arguments. It was, in truth, an effective argu- ment for as yet there was no answer and could be none until a new generation of leaders as well as of voters had grown up. The conduct of the Federal officials was also still a sore spot which the democrats managed to press hard. Many of the republicans themselves were restive under the revenue control of the party.


The contest between Bennett and Dockery excited great interest and great hope among republicans but resulted in the victory of the former by about 800 majority. Tilden had carried the state in 1876 by 17,000 and Vance by 14,000; Jarvis in 1880 had a majority of 6,000. In truth there was reason for republican rejoicing. Nor was this all. In the Seventh District, which was thought unalterably democratic, R. F. Armfield, the sitting member, was defeated by Tyre York, a liberal. The black district was won for the republi- cans by J. E. O'Hara, a Halifax negro. The legislature, however, showed little change, and only one liberal was a member.




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