Historical Newspapers of South Carolina

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m ... L 1 x STORY OF MCW HAVK1T8 TRICK- KRY IS MADE PUBLIC. TALE OF MEAT WASTE ConunlMlom's Report Sfiau Up Impor* - s tut Fraads in the Csiue of Lut Ten Years Showing How Stock holders’ Money Was Criminally pasted. The story of the "reckless and profligate” financial operations of the New Haven, one of the most remark able chapters in the history of Amer ican railroads and American finance, was revealed In part Monday by the interstate commerce commission in a report to the Senate of its investiga tion of that road. It told of millions used like stage money, of corporations as pawns In a monster game with all New Eng land's transportation as a prize, which led the New Haven in the ten years Just passed from the height of prosperity to the point where a divi dend has been passed, where a dis solution suit Is threatening and where criminal indictments of many of the directors who figured In deals are at * least a possibility. V Hampered by unwilling witnesses, by burned books and by all the mazes which lawyers Invented to cover the trail, the commission estimated that, in the progress towards monopoliza- * tlon of New England transportation the New Haven stockholders have lost between H5,000,000 and $90,- 000,000, but little of which they may recover. In return, the report said, they have on their buds properties which pay no dividends, which eat into the earnings of the parent road and which will be a burden on Its capac ity for many years to come. Of the present directing head, Chairman Howard Elliott and Walker I). Hines, special council, the report says, "they have co-operated with the commission and rendered it substan tial assistance throughout this invee- , ligation '' The New Haven combination, rear ed by Charles 8. Mellen and approved by the late J. P. Morgan ud William Rockefeller, the commission finds to be clearly In violation of the Sher man anti-trust act ud a monopoly in practical control of the transporta tion of five States. The commission's report Is unusual as regards the manner in which the directors of the New Haven are scor ed. It speaks of criminal maladmin istration and negligence, asserts with posltlveness that the directors knew they were perfecting an Illegal com bination and says that the dream of a transportation monopoly was un sound and mlschevious. The New Haven, the commission says, employed dummy directors, manipulated accounts, used question able methods in increasing its own stock, paid the dividends of subsid iaries to make a showing, and used many other devices to deceive stock holders and the public. It dipped into politics, was a factor in "invis ible government' , made large cam paign contributions to the two domi nant political parties, bought officials and tried to distort public opinion. All this it did, the commission says, "to carry out a scheme of private transportation monopoly imperial in its scope.” The report cites these '‘significant incidents”: “Marked features and significant incidents in the loose, extravagant and improvident administration of the the finances of the New Haven, as shown in this investigation, are the Boston & Maine J despoilment; the in iquity of the Westchester acquisi- ’ tion; the double pried paid for the Rhode Island trolleys; the reckless ness in^the purchase of Connecticut and Massachusetts trolleys at prices exorbitantly in excess of their mar- f ket value; the unwarranted expendi ture of large amounts in ‘educating public opinion’; the disposition, with out knowledge of the directors, of hundreds of thousands of dollars for influencing public sentiment. Continuing, the report specifies the "habitual payment of unitemized vouchers without any clear specifica tion of details, the confusing inter- relation of the principal company and and its subsidiaries and consequent complication of accounts; the prac- • tice of financial legerdemain in is suing large blocks of New Haven stocks for notes of the New Haven Navigation company and manipulat ing these securities back and forth; fictitious sales of New Haven stock to friendly parties with the design of boosting the stock and unloading on the public ^ at the higher market price”; the unlawful diversion of cor porate funds to political organlza tions. ’ "The scattering of retainers to at torneys of five States, who rendered bo itemized bills for service and who conducted no .litigation to tohlch the railroad was a party,, extensive use of paid lobby th the' ffisttsmr *s to which the directors claim to have no Information; the attempt to control ntterances of the press by subsidizing reporters; payment of money and the profligate Issue of free passes to leg- .X Islators and their frlsads; the Inveet meat of $400,00$ in securitlee of a New, England newspaper. "the regular employment of. politi cal bosses la Rhode Island and other states, not for the purpose of having them perform any sprvlce, out to pre vent them, as Mr. Mellen expressed It, from ‘becoming active on the other side’; the retention by John L. Hil lard of more than $2,700,000 In a transaction In which he represented the New Haven and into which he invested not a dollar; the inability of Oaklelgh Thorne to account for $1,- 082,000 of the funds of the New Haven entrusted to him In carrying out the Westchester proposition; the story of Mr. Mellen as to the-distribu tion of $1,200,000 for corrupt pur poses in bringing about amendments of the Westchester and Portchester franchises. "The domination of all the affairs of this railroad by Mr. Morgan and Mr. Mellen and the absolute subordi nation of other members of the beard of directors to the will of these two; the unwarranted increase of the New Haven liabilities from $93,000,000 in 1903 to $417,000,000 In 1913; the Increase In floating notes from noth ing in 1903 to approximately $40,*- 000,000 Iq 1913; the indefensible standard of business ethics and the absence of financiers In directing the destinies of this railroad In the at tempt to establish a monopoly of the transportation of the New England. A combination of all these baa result ed in the present deplorable situation In which the affairs of this railroad are Involved. "From the facts developed In this investigation It would seem that there Is little question concerning the re covery of a substantial amount of the stockholders’ money that has been wasted. Several items of this nature will be briefly summarized: "Overpaid Perry and Thorne in commissions, $303,750. "Illegally aperit In obtaining West cheater franchise changes, $1,524,- 072.77.' "In the BUlard transaction, $2,- 748,700. "In attempting to estimate the losses of the New Haven stockhold ers the three large Itema of lota with which we are confronted are those arising out of the acquisition of the Boston A Maine atock, the New York, Westchester A Boston stock, and the Rhode Island trolleys. “A summary of the loesee la as fol lows: "Boston A Maine. 823.223,725.68. "New York, Westcbeeter A Boston, 811,467,158.09. "Hartford A Worcester Street rail way. $78,394.87. “Springfield Railway company, $203,221.15. “Worcester ft South Bridge Street railway. $15,580 “Connecticut company, $12,535,- 386.01. “Rhode Island company, 118,352,- 336.41. "Total. 165,871,299.61. .‘‘There was a loss in the recent sale of the New Haven Interests In the Merchants ft Miners' Steamship company of $3,594,500. “It was found In the investigation of the Netf Haven system that there were 336 subsidiary corporations. Many of these subsidiary corporations served no purpose save an evil one They were used to cover up transac tions that would not bear scrutiny and to keep from the eyes of public officials matters that were sought to be kept secret." It is pointed out that the capitali zation of the New Haven system was increased from $93,000,000 to $417,- 000,000 since June 30, 1903. This was exclusive of stock premiums, making an Increase of $324,000,000. “Of this Increase." says the com- lisslon, “approximately $120,000,000 was devoted to its railroad property and was expended for betterment and equipment. “This leaves the sum of $204,000,- 000, which was expended for opera tions outside of its railroad sphere. Through the expenditure of this sum this railroad system has practically monopolized the freight and passen ger business in five of the states of the Union. It has acquired a mon-' opoly of competing steamship lines and trolley-Tystems in the section in which it serves.” The frequency with which dummy corporations and dummy directors appear in this report," concludes the report, “leads to the conclusion that some one high in the counsels of the New Haven had an obsession upon the subject of the utility of such sham methods, Why men of respect- o K1 ] I f vr qxx/Titvcp oa ttrtTTTXXjr CXttU oLtSjJtVtlUg 2*0 to be should lend their names as dummies passes comprehension. "Thus, throughout the entire story of deception, the New Haven man agement vainly endeavored to hide the true facts behind these dummy individuals and dummy corporations. No condemnation can be too severe to apply to the f^pquent use of these companies by the New Haven." — Burglar Trap Fatal. A. W. Lawson, a merchant of Johnstown, Pa., Monday get a fixed gun in the hope of shooting the rob her who had been systematically stealing out of his cellar. An eight-; eight-year-old boy was shot Instead. NOT IN HE NICE CLDfKSGALBS SAYS PROHIBITION IB NOT AN ISSUE. ENFOICE LOCAL OPTION Question of liquor Am Been Settled and Compulsory Education Candi date Says He Intends to Enforce the Law—Other Candidates Ad dress Crowds at Edgefield. Lowndes J. Browning roused John G. Cllnkscales’ Ire Saturday at Edge- field by again charging that he had a plank in his platform for State wide prohibition in the beginning of the race and Mr. Cllnkscales emphat ically declared that he did not, and that this was not an issue in the race. He said that the people had declared for local option and were he elected governor he would enforce the laws as he found them on the statute books. He said that he hoped Mr Browning would not again mention this in the campaign. Chas. 'A. Smith urged a referen dum on prohibition and asked promo tion on his record as lieutenant gov ernor. He denounced race track gam bling in Charleston, blind tigers and lawlessess. "I am making this race without elaborate headquarters and the ille gitimate use of a dollar. If I had at my command untold wealth I would not use a cent to purchase a vote, nor shall I employ others to do It for me, for the latter course would only add the char\cter of a sneak to the odium. I shall not pay one cent to the support of the dirty fellow who often trails behind a campaign party spreading misrepresentation and slan der, nor to the poll worker, who never fails to line his pockets with the money of every candidate he can work. Such practices are against the spirit and letter of our law, and the oath that we take, and certainly should be beneath the purpoee of any man who seeks the confidence and office of his fellow man," said Men del L. Smith. Speaker Smith said thax In advo cating local option on the whiskey question he was simply bowing to ths will of the people as every good Dem ocrat should do. "It is not a sign of weakness to change your opinion on a question in the face of changed coditions,” averred Speaker Smith, who>aked if Wilson and Bryan were "trimmers” because they underwent a change of mind on the canal tolls exemption matter. Mr. Browning developed his ideas on tax reforms. "Dr. Cllnkscales has gradually shrunk. He has modified his great compulsory education, and is now satisfied with sixty days year," said Mr. Browning. "He did have one other plank. State-wide pro hibition. but the Doctor don’t like It, so I won't say anything about it, he concluded. John G. Cllnkscales said it would be well to have schools for some growh-up people. He said it was al ready in print that he wanted three months as a minimum. "State-wide prohibition has noth ing whatever to do with this cam paign so far as John G. Cllnkscales is concerned,” he stated emphatically. In response to a question from Mr. CllnKscales, Mr. Browning said he ‘‘had seen in the papers” where pro hibition was a plank in Mr. Cllnk scales’ platform. Mr. Cllnkscales said the people had declared for local option, and when he becomes governor he will enforce the laws as they are. He denied that he had "come down” on compulsory education and launched into his argu ment on the subject. He sail in an swer to questions of Mr. Manning he would have schools run on a mini mum of three months, not over thirty pupils to the teacher, and call on the legislature for, an appropriation to finance compulsory education. Speaking of cattle tick appropria tion he said: ‘‘There's a more de structive tick in South Carolina than the cattle tick, and that is the tick of ignorance.” He closed amid applause. R. A. Cooper inslste'd that "wheth er we are to be a lawless people or a law-abiding people” was the para mount Issue of the campaign. In creased facilities for the rural schools, benefits and to be governor of all the people were promised by the speaker. He was cheered. John T.- Duncan brought laughter by references in a humorous way to his opponents. Speaking of 1912 elections, Mr. Duncan said there were several thousand fraudulent votes cast then, and that "Jones bought all he could, but Blease beat him steal ing," He. said that Gov. Blease and “all his coat tail swingers” would be defeated this year. “It is amusing to us to hear Mr. Richards get up all of a sudden and say that he is for* Blease because the present gpvernor Is close to the peo ple," declared W. C. Irby, Jr., who said further that Mr. Richards had WHAT PARCEL POST DID TO THE EXPRESS BUSINESS. tend pure-bred. Holly. N. C. English regis- W. N. Cavln, Mt. In Nine Months Entbag Jane 80 Oper- ating Incomes Were Reduced 84.4 Per Cent.—Southern Doing Well. American express companies of the larger size suffered a reduction of 84.4 per cent, of operating Income during the first nine months of the fiscal year ending June 30. In dol lars the reduction was from $3,793,- 638 to $580,740, a lots of $2,203,898. In that list are Included the Canadian express companies on account of the business they do south of the inter national boundary line. The period covers the operations of the now defunt United States Express company, which, when It went out of business, attributed Its going to the competition of thel parcel post and the reductions made in express rates by order of the Interstate Commerce commlsaioa. although before either was a fact the business of that com pany had been decreasing. These figures, prepared by the divi sion of statistics of the Interstate Commerce commission, show that the Southern and Western line companies are the only ones able to keep out of the positive deficit column. They are the ones that have the long hauls in which the proflft lie. Express, in common with all other railroad ser vice rates, increase with distance, but expensed do not. On an express pack age from New York city to Tarrytown the essential express expenses, that of pick-up and delivery, are the same as on a package carried from New York to San Francisco. Statisticians have figured that the expense accru ing by reason of a messenger riding in the car <Jn the long trip is hardly worth figuring on a given package. The coat of picking up and deliver ing counts. That is believed to be the chief reason why the Adams, American and Globe show great reductlona of their operating Income, while the loesee of the Western end Southern companies were not great enough to force the Income account into the mlnns col umn, although all suffered reductions in comparison with the corresponding period of the preceding fiscal year. for him at that time, then he was too much of a coward to be governor of the State. Mr. Irby charged that both Mr. Richards and M. L. Smith had been cowards politically when they form ed a mutual agreement not to go to the State convention as delegates. Mr. Irby said that he had gone there end denounced the enrollment rules, regardless of how It might affect his race for governor. "I believe that the public mind in South Carolina Is focussed now on the question of Christian education.” aserted Richard I. Manning, declar ing that trustees should select school teachers who would give a Christian atmosphere to a school room. Mr. Manning insisted that If the State were to continue to progress a re duction of taxes could not be expect ed. . "The citizens can see, though, that they get value received for every dol lar of tax money spent,” declared Mr. Manning. The speaker made a strong presentation of his plan for a local option compulsory school attendance law, averring that a State-wide com pulsory education law would work great hardship on poor counties. ftrcji Kohnson of Williamsburg, N. C., has confessed that he brought a pistol to be used In his brother’s slay- Inf by his brother’s wife. He loved his slater-ln-law, he said. if he were Just finding out now Blease was the friend of the peo^ he was too ignorant to he governo and If. oa the other hgnd, Mr. Rich ards, knowing this about Blease two SEWERAGE IN THE COUNTRY. One great problem peculjar to the rural districts is that of the proper disposal of poisonous organic refuse and similar waste matter. In the cities, such matter is completely and satisfactorily taken care of in the modern sewerage systems, and thus the city is enabled to preserve a cleanliness which is its greatest aid in fighting disease. When such matter is allowed to stand in the open, as every rural resident knows, it becomes a swarm ing place for flies and a hot-bed for disease germs; it pollutes the soil and drinking water, and is always an unsightly and embarrassing nui sance. Such conditions are generally the caues of sickess .and disease. The Sanitary Septic Tank, especial ly designed along approved lines for rural districts, and manu factured by Weston & Brooker, Co lumbla, S. C., completely solves the problem of sewerage disposal for the rural home. * It is of small size; made of reinforced concrete; simple, easy to install, never gets out of order or needs attention. Placed just be neath the surface, and connented with the house by a short pipe line, it securely keeps the poisonous or ganic matter enclosed Intil, by nat ural processes, it disintegrates, and then seeps out into the ground, harm less mineral njatter and water. Ap proved by health authorities. Its cost is small. It affords all the conveniences and the full protection of the city sewerage system. It Is well worth your while to, know all Sefltifi 'T*iih.jaad For Snlo—Velvet Beans, $2 bushel f. o. b. Alacljua, Fla. Cash with or der. Caswell A Grimes, Alachua, Fla. Boarding—Sunny Bid*, 0,--, June 20 .to September 1. * Rathe, $1.60 per day. Free motor service to the sort dally except Sundays; fishing boats furnished. Sen foods in abundancs. Address Mrs. H. G. Smith, Murrells 1 Inlet, 8. C. Kan cocas strain 8. C. White Leghorns —Hatching eggs, $8 per 100; $1.60 per setting. Red Briar Farm, Hen dersonville. 8. C. White Wyandotte*—Yearling stock for sale at sacrifice. Eggs for hatch ing. W. P. Causey, ISIS Dlckent 8t., Col um bis, 8. C. For Sale—One Flanders 20, two new cases, top, extra seat. Car In ex cellent condition. Price reasonable J. F. Burbank, Union. 8. U 800 Acres Houston County, On- Farming and Poach l a ad—Rail way station on plaoa. Don’t hasi- tats on account of prios, (10,000 for this whleht Is worth $10,000, Southern Insurance A ReaWy.Co., liife Building. Macon, Oa. * £ I QUICK TRIAL. Glenn Springs, 8. C., The Garner House—Nearest to Spring. Meet guests at Whitestone with automo bile. Write for information. Indian Runner Duck Eggs—Great layers, easily raised. $1 per 13. Express or parcel post paid. Mrs R. 8. Kirk, Lancacster, S. C. R. 6. Hendersonville, N. C., Richeleu, city home farm, spacious lawn, veranda. Plenty shade; best water, excellent table, Jersey Milk, fresh vegetables. Rates reasonable. A Wonder of the Ag»—Webb’a Wax- all,-apply with rag. 75c quart deliv ered. Will atain and wax floor one application. All colon. Webb's Art Store, Columbia, S. C. For Sale—Tompkln’s and Langford’s high class Single Comb Reds. Fine breed. Select matings. Eggs, $1.60 $2 and $8 per 15. Young chicks. Mn. John Kerr, Dm ham, N. C. Negro Tried and Sentenced Two Days After His Slaying. '' > ; 4' ‘ One of the quickest cases ever dis posed of In the Kershaw county courts was the case of Jim Nelson, a negro, who killed Joe Fields on Sat urday on the plantation of Dr. S. F. Braslngton, below Camden. The kill ing of Fields was very brutal. On account of some domestic trouble Nelson overtook Fields In a swyamp, and after felling him with a bullet, «lashed him across the intestines with a raior, leaving him there to die. After cutting and shooting Fields Nelson started to leave the swamp, when he met Dr. Braslngton and told the doctor of the deed. Dr. Brasing- ton persuaded the negro to come to Camden and surrender to the authori ties, and then went to give the wound ed negro medical attention. Seeing that the negro had only a short time to live, Dr. Braslngton asked him for a statement. Fields said he did not blame Nelson and that he had brought It all upon himself. Court convened on Momlay and Nelson was placed on tfial and plead ed guilty to manslaughter. The was accepted and the negro wem \ , tenced to serve three years l\ State penitentiary. The sentence waa ^ passed two days after the killing. Why Not Spend the hot summer days at the Meadow Brook Farm? En joy good watar, fresh fruits and vegetables. For terms write Mrs. 1 R. P. Freeman, Horse Shoe, N. C.l For Sale—Complete saw mill, SO h. p. boiler and engine on wheela; splendid condition at law price; also 35 foot motor boat. 8. H. Robertson, Sampson’s Wharf, Va. For Sale Mountain Grown Lookout Mountain Irish Potatoes Plant la Jmly and raise fine crop. Price, $1.60 per bushel. Order now, from C. P. Bandera. Spartanburg, 8. O. For Bale—Registered Hereford cat tle, beet of all beef breeds for oer Southern conditions. Eighty breed ing cows; young stnff for sale. Extra good breeding. Evans Lunsford, Covington, Ga. For Sale—Entire stock, of general merchandise valued at $1,500, more or less. Will sell at reasonable fig ures. Stock I" good condition. Also one desirable lot on Main street. Address A. Q. Rice. Fountain Int, To Stay 4 Well The Blood Right ’I'HUtK U no hotlth whore ths lift cur- rant is poisoned. It mar be the nerves are crying oat tor relief from headaches and sleeplessness; perhaps ths mesclss ache—Oh, how they hart— the bones may be sore; the skin may breakout—all oftbeae are only symptoms. “The blood Is ths Ilfs" and It moat ha pure and abundant If you art to ha wall. nrwxsa u no help In means symptoms. x Got down to the cause, remove that, and the symptoms will all disappear. "Onkwood"—On car line. Best mod- [ erately priced summer home in! Western North Carolina. $6 to $8 per,week. Write for information Mrs. W. A. Scott,. 268 Chestnut St., Asheville, N. C. How can nerves be steady, digestion good and head clear whan through them all Is Sowings constant stream of poison! Purify Your Blood And Be Healthyj ■ His. Joe Person's Remedy has proved Its usefulness In such cases by forty years’ service. Literally l hours ads of tsmlliss In ths South have need It whan needed, and many testify to Its veins. Your druggist ought to have It If he hasn't send $1.00 to the REMEDY SALES CORPORATION, Cksrletts, N. C., t and they will send you s big botUe srjd full directions st once. Mrs. J—Nr«—'tWitli £ In connection tilth the Remedy for the cure of soree snd the relief of Inflamed and congested surfaces. It Is especially valuable for women, snd should always be used for ulcergUons. _ Greenville Female ' College jfi isn- Greenville, S. G Imparting the Knowledge, Ideals and Accomplis ments of Perfect Womanhood i No Southern institution affords young women more complete advantages for a bread, liberal education than does the (Jreenville Female College. It is prepared in every way to train Ite students for lives of the fullest efficiency an! responsibility. Its equrpmect, faculty, courses of study and cultural influences are entirely in harmony with present day require ments. BUiZDINGS equipped along the most modern lines for convenient, comfortable life and efficient wiiTk. Seventeen class rooms; 2T> piano practice rooms; library; sis parlors; well equipped science department; kitchen furnished at cost of 12.500. College-owned dairy. ENTRANCE UPON 14-UNIT BASIS. Conrses lead to B. A , B. L., and M. A. de grees. Valuable practical training in Pomeitic Science, Bumintu Court*, leading to diploma. Thorough conrses, leading to diplomas, in Conttrvatoryof Mutic, de-.irtmeuts of Art, Exprmttion, Physical Culturs, Kindergarten. Normal Training Coaria. Most healthful location; refined associates; Christian teachings and influences. Con- ’ structive discipline. The institution alms to afford the best educational opportunities at minimum cost. For (ataiogua, address DAVID M. RAMSAY, D. D., President, Greenville, S. C. I THE UNIVERSITY OF SOUTH CAROLINA 1801—1914 Columbia, South Carolina. 'fhe University offers courses leading to the following degrees: School of Arts and Science, A. B. and B. S. School of Education, A. B. 3. Graduate 'School, A. M. 1. 2. 4. School of Engineering, C. E. 5, School of Law, LL. B. For students of Education, Law, Engineering ^nd i those pursuing higher graduate work, the University ogers exceptional advantages. Graduates of South Carolina College receive free tuition in all courses except in the School of Law. Next session begins Sept'." 16, 1914. ' For Information Write. ‘ _ A. C. MOORE, Acting President, Columbia, 8. C. DeLay Roofing and Cornice Co. Practical Sheet Metal Worlcers AH kind* of Roofing, Cornices and Skylight Work, Tank* Etc. Hot Air Furnace Work & Specialty. | Estimate* cheerfully fumiahed on application. ' ■P»*AT ROOFWG'AND CORNICE CO., COLL you can do so by simply .writing Weston ft Brooker, Colnmbia, S. C.; I We haven’t the heart to blame some parents for their abedute re years ago, had been afraid to declare fusal to believe la heftdity.' COLUMBIA SUPPLT COMPANY 823 Watt Gcnmk Street, Columbia, S. C. a specialty of supplies wanted all kinda of Machinery. Write Th. Only market. Only Ho Engines, Bouers, when yon are In the V t