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L.THE PEOPLE'S JOURNAL VOL g.---NO. 8. PICKENS S. C., THURSDAY, MARCH 16 89. ONE DOLLAR A YEAR. THU P9NITENTIARY o INVISTIGATION. I SOME STARI'LING IUtCVELATIONS. -- d Chairman Cuinninghatm anid Lessee h Fawler Tell About the 111rinig oft * c'onvicts, The joint committee appointed just p at the close of the General Assembly a to investigate the manavemient of the State penitentiary hegan its work at noon on Wednesday, 8th inst. Three witnesses were examined the first day. o Mr. J6hn Taylor, the oxpert employed s< to examine the books of the poniten tiary, was the first witoi's, and his f, testimony was unimp'rtant. He simply pointed out several insignificant orrors h of a clerical nature which, he said, did b not change the real result, so far as he had been able to determine in the to two weeks he had been enzaged in ox- 11 amining the account books Only un- s important errors were discovered by S bim, and he didn't think there was y anything wrong with the books. TIIE CHAIRMAN OF T'IIE hOARD MAKES it A STATEMENT. $ Mr. T. J. Cunningham, chairman Y of the board of directors of the poni- d - tertiary, was the second witness. At d first it looked as if his testimony would be unimportant, but it soon made sur- t prising revelations as to the hire of con- C victs. After a few introductory ques- w tions about his connection with the penitentiary, Mr. Stevenson said : t "I'll ask you Ps to the rules as to the A hiring of convicts. How do you hire w them-'or cash or on credit?" F "Well, we hired them in various V ways." ti "What is your rule for the paymont of the money for convicts, say for the B last four years ?" V "Generally about November we take o up the contract matter. We first de cide -as to about the surplus labor we ci will have to hire and then the price of that labor and then we instruct the superintendent to go to work and place & -it." "When he places it what arrange- I ments do you require about the pay inont for the hire ?" "We require a contract with sufll- b clont bond to secure it." "Do you take notes for the labor ?" "We have done it." "What is your rule about notes with regard to discounts ?" "Well, I remember a year ago last II November, in making contracts the superintendent was instructed If he di made notes at all to make them that could be discounte:'- without the insti tution endorsing them." "Mr. Cunningbam, have any notes do been taken for labor in the last few years which have not been paid ?" ti "It has been reported from the Caro- w lina National bank that three notes t - are part duo by the institution." to "What notes? Who gave the notes ?" cc After some further (iestions and an swers, Mr. Cunningham read the fol- I lowing statement, which he said were H the amounts for convict hire still un- tr paid , 0. C. Scarborough, due Nov. 14 (balance)........ .......... $ 18.05 g C. W. Ragsdale, due Dec. 21 and interest.............. 2,000.00 W. W. Russell, due Jan. II and T and interest................ (00.00 Check, J. B. Watson.......... 2, 600.00 " Overdraft..................... 3,355.62 df ),a answer to the question, as to the J. B. Watson check for $2.600 which the Carolina National bank was now fi holding the penitentiary responsible, to Mr. Cunningham said it was given to w take up the B. B: Ragsdale note. bi "That B. B. Ragsdale note, you say, was endorsed by the supirintcndent of w the penitentiary ?" "Yes, .sir. It is in the ofice now." "Well, then, how did the peniten tiary become liable for the check ?" "Well, the B. 13, Ragedale note an peared with the endorsement ofothe *superintendent- on it and Watson held C up the cheek." o "How did you get the note ?" Li "I took the check to the bank and it got the note." n: "And then the cheek was held up ?" - "Yes ; it was a five days check on the ei - Anderson bank." p> -"How sdid that B. B. Rlagsdale note ni appear on the books of the poniten- (q tiary ?" a "It didn't appear at all." ci "What record, then, did you have r, with regard to 1B. B3. Ragsda'e ?" - 'We had none at all." ni * "Did the penitentiary get the muon- t1 ey ?" b "We presume that these notes camoe d from the Watson contract." t1 "Just tell us about that." o - Watson in 1896 for three years. i~e settled up ait the end of 189(6. On the f first of January the books showed a is * settlement in cash ; In 1897 the same h~ way. We presume from the- best in- 11 formation we have that these notes t were given in settlement." I "To whom were these notes given ?" r "To the Carolina National bank." r "How did the peitentlary happo~n to / be liable on it ?" "I suppose by the endorsement of the v superintendent." r "Was ho authorized to endorse notes I to the bank ?" "As I understood our resolution it I was that~c he must take notes wIthout 1] the insttution's endorsement." .y "Did the directors know in having s their annual settlement with Mr. Wat-t son that the penItentiary was endlors- l ing the notes of anyone to settle up ?"( - "It. was not a (question at all; the I *money just appeared. So far as thec - directors knew they were getting the 1 cash." "And you didn't know the peniten- I - tiary was assuming any liabilities in I - assisting, him to raise that money ?" I - * "4didn't know of these notes at all until re~ently." . "When did you first learn of them ?" 1 "I think it was the day of the eloc * ion of. a supeorintondent, or the day be-J fore." : * Further questioning brought out the - - fact that the convicts employed by J. - -LB. .Watson- were for use on a farm - ,which he at first leased from Col. Neal -and later on-said he had bought from - him. - .-Mr. Stevenson then went on to ques :tion: "I see one note here of C. W. Rags - -note?" "No, sir. The only way T can figuen At that note Is through our report. appears in the report of 1890. "Lave you a copy of that report ?" "No, sir. The note of J. W. Rags alo ie the same as the convict hiro to [r. Watson in 1896." "And your understanding was that ic note was put in the bank and the loney got for it. Has Col. Neal ox lained this matter to you; have you sked him about those notes Y" "Yes, I have." "What is his oxplanation ?" "He has not given any satisfactory Kplanation. le said they would be Attled." "The only information the board has 'om him is that they will be settled." "This check of J. B. Watson ho said o had just discovered was unsecured y bond." A number of other questions served show that these notes had appeared the supurintendent's report as being ktisfactory. The balance due by 0. C. oarborough, the witness said had been ild. In regard to the overdraft of 1.335.62, he said the bank had allowed to be made when Col. Neal paid the [0,000 into the State treasury this ,ar. It had since been paid by funds rived from the sale of certain pro ae from the State farms. Tne disposition of the convicts for to present year was taken up. Mr. unningham said that 200 convicts ere hir d out. In answer to questions he said that 1o majority of the convicts let were in nderson County. A number of them ore hired to IHammond, J. B. Watson, wler and othetrs. These men had omised that they would pay up if icir contracts were renewed. In answer to several questions by Mr. ay as to the disposition of the fat in 'oducts, the witness said the members the board of directors were satisflied 'at all these things were sold and due edit given to the penitentiary. MIt. FOWLER'S TESTIMONY. Mr. J. S. Fowler, of the firm of Cooley Fowler, came into the room as Mr. anningham was finishing his testi ony. Mr. Stevenson called his attention to to fact that in the last report of the >ard of directors he was put down as ill due the State for convict hire 60.51. This he said was erroneous. 3 had paid $500 of the amount. "Have you a receipt for such pay ent ?" asked Mr. Steueuson. "I have," answered Mr. Fowler, and ) pulled from his pocket a draft of the 6te of Lebruary 24, 1897, upon Iiiin if drawn by Col. Neal, which was airked paid. It was paid through the rmers and Merchants' bank of An "rsun. Mr. Patton then took up the ques aning and brought out the facts that hen the Legislature was in ses Dn Mr. Fowler had been to Columbia see about renewing his contract for nvicts. The board of directors did it want to let him have them until he td settled his account for past hire. c assured them that were the con act renewed he would see that the 6st claims were paid. Ho was not try positive about the assurances von the directors, but said: "At the time this matter was brought I was in a great hurry to get off. he matter was to be left open tempo rily. Col. Neal went up on the same .in, and as soon as we got there (A n ,rson) arrangements were to be made Ipay up this money." Further questioning developed the ets that if Col. Neal made satisfac ry arrangoments, that he (F'owler) is to lot him have the $500 to help lance the account. These arrangement, Mr. Fowler said, cre not made. Col. Neal was offered the privilege of iestioning either Mr. Fowler or Mr. inninghamn, but declired. i Ei'TIMONY OF J. IH. WATSON. Mr. J. Belton Watson, of Anderson uunty, was a most implortant wvitness, ving to large and unsettled transac ons between Col. Neal and himself, which the penitentiary funds were Aixed. is statement is as follows: A fter being sworn, he waIs shown a >ntr'act and said it was for work on a lantation he owned, which was for' erly owned by Col. Neal. Hie ac. u ired it in 1893. lFor 1896I-'9.7 '98 he id not work convict labor' under the mntract. Col. Neal worked it. lie sold the farm to Col. Neal for *14,000 -ai credit transaction. He didn't re member whether it was before cor after 'ic contract for convicts was made, ut thinks it was after. P'apers were pro ucod showing that the convict con eact and the tr'ansfer of land wa-, made n the same day. lie got no convicts uring '90, '97, '98 for his own use. Roferring to the penitentary r'eport >r' 1896, he is credited with paying 2,000 or more foi' convict hire; he said e know nothing of it. lHe supposed he wais liable, It was undler the con ract, but he never used convict hire. n .Januar'y, 1897, he is ci edited with aying over' :100 as a balance. He do ied that ho owed any balance. in Llpril, 18911, he was credited by the re ort for $i,,482.75. lie was not p)ositive rhether he had piaid that on the settle lent on his contract, which expiredi in 895. Since then ho had not used one our of convict labor'. In 1890 Mr. lurris wrote that witness had given not3 for the hire of convicts foir that ear. The cotton raisedi on the Ander on and Piecens far'ms was sold to fac cries. The balance comning to me to ay for' the land was turned over' to 301. Neal. Tihe amount was $1,4b;5.85. t was to he cr ied ited to pa~ymeat for onivict ilbor. lie got a receipt sig~ned >y Superintendent Neal. (Mr. Stephen on r'emnarked that there was no) credit a the report.) Mr'. Watson said in otters andi from p~erson~al statements rom Col. Neal he was told that all ac ounts had been balanced up and ho upposed It w as c urrect. Col. Neal ran ho P'ickens farm. C. WN. l(agsdlale uper'intended the P'ickons far'm and 3. BI. Ragsdalo the other. lie dlidn't cnow exactly how many convicts wer'e worked. As to the check for $200l0t iven by him, he said his attention was allcd to it when he read the report or the past yeari. lie looked over the ~epor't and found his name appearing is due $2,574. lie mnade inquiry. it was not in conformity with the agr'oo neat and1 he asked Mr. Burris about it, who said1 the account In my name amounted to $2,800. But some expense would have to come oif, amounting to R200. lie aw Mr C unningham, who showed him a memorandum furnish( him by the Carolina bank on whic the lAgsdale notes appeared. His in presslon and mine was that tho 1. I tagsdale noto was for convict hiro f( 1898 and that of C. W. Ragsdale fi 1898. Then ho asked me to see if could arrango matters, stating th Co). Neal had said ho had about 24 bales of cotton unencumbered. Co Neal was sick, but he told tme that 1: had about 175 bales. Considering I prostration and the fact that he ha promised to pay $2,700, and knowin that I would be protected by the laut I gave Mr. Cunningham a draft, an also in consideration of the statenet which bad been handed to me by Ce Neal in reference to convicts here f 1897... He said It was painful to havO to to the reason why he recalled the drif it wts a ton days' draft.. His first dra was for $2,600. Mr. Clark, of the baul didn't approve of this, and another wt drawn on January 25, 1819). 1 expecte to got $2,600 from Colonel Neal, as third payment on the land. In Noven bor he stated he would be able to pu it and went on to say something abot the balance,. Ho said he had arrange to borrow the balance. One man pr posed to loan it to him for 7 per eon payablo semi-annually ; another tit per cent. annually. le asked me atbi it and told him if ho lost his job h would advise him to take the 8 pc cent. As to why I notifie. te ban not to pay it was in eons. quenec papers on the cotton which would pr< vent me getting it. There was a $2,0 note in the Farmer's and Merchant Anderbon bank which Mr. lowler ha ndorsed and which had gone to pr< tet. Mr. It. M. Burris and Mr. J. ( Hammond were the other enderser The note was made by Colonel Nea They notilled Mr. lagsdale not t move any cotton from the farm. 11 went over to take the cotton to sull ] and meet the draft, when he was m tilied that others had a lien on i Then he told the bank not to pay th note. He has never ascertained fror Dolonel N.-al what those Ragsdal notes were given for. He had told Col. Neal lie had give the draft and Col. Neal told him thin if lie had had the opportunity he woul have advised witness not to nave don It. I told Col. Ne 1 that he knew thei I was not morally responsible for th hire, and COl. Neal replied that, wai i.rue. Col. Neal's general tenor wu that he himself was responsible. 11 said so. lie said Col. Neal told hii that he had informed the board of th transfer of his contract, and he wt shocked when some of them told hi they knew nothing about it. lie wt dealing with Col. Neal as an individu; and did not know that there was an,' thing contrary to law in the transa Lion. In answer to Senator Livingston I said there was no secret agreemnet so far as he was concerned. Ile hi nothing to conceal. He didn't kno whether the board knew about t: reconveyance of the faran. lie sai that he had told the board that i1 Jid not hold himself liable to - the hir rhis was when Mr. Cunninghat 3howed nim the memoranda durin the session of the Legislature. H1 ,ould not remember whether he ha made the verbal agreement with Co Neal about the use of the cotnvicts b( fore or after he tmade the contraet f convicts. It was really Col. Neal's ce' tract and witness was neverL rcquire to sign a bond as had previously be thbe caso. lie produced some lettet and papers bearing on h is testimony t to the sale of cotton. TIIIE HOOK-KIt-:IItl UiV.S t lls Al COUNT 01 PENITENTIARtY A-'-'AllS Mr. It. E. Burriss, book keeper of thi penitentiary, was the next witnes llo has keopt the books during C: Neal's term. lie saw only the 11. 1 ltlagsdale not,.. Going bac to 18963 th Watson conmtract was made. The ir: note which camne to him wvas in Apri 18963, for $1.500 and was given by M Watson. it was payable in tho fal That note wtas not paid at maturit' b~ut was char'ged by the batik t) til pen1i tentiary accouin t. On Deembiha I1896, the note and interest after ma turtty was charged. The amount wtm tot' $1 5130, lecs the discou Lnt. Thela hit fotr 189ti atmounted to somnethiing ove $1,500. Somie time in 1897 Col. Nei told him of a settlement, lie had ha with W atson and turnted over $318.8 Col. Neal 5aid tue note ha:s been settle up) and thao $18 S 7 was to go on conv' hire for 18911. lie thtinks the note one of the Itaigsdales was taken upii this tansactio~n. In LFehruat'y, 1898, Mr. Clark, cir Cm J ones, told himi tney hiad a note of 13. itaagsdale. lIe ea'led( Col. Neal's a tention to it and he saidm it htaid hec ar'ranged. .ie dlid n't say anythil about the ciircuanstancles of givIng t, note. I n iFebruiary , 1 898, was a $2,3 note by Watson to covet' the '97 convl hiire. In April, 1897, ther'o was a pa mont, (of $172 by cheek, whicha was r p~aid. Col. Neal said he would arrian the mnattoer with the bank, and It w carried as cash. it, was given lby C Neal personally, lie sainlg lie wou have to pay discount ott the note. knewv nothing about the Neal and Wi son private contract,. Col. Neal h never told him anything about it. I knew nothing about the C. W. Ital datle ntote until about six weeks as when he learined~ of it through a let~l to Col. Neal. Col. Neal deposit notte ini payment of 1898 convict hi IIe was undler the 1 ipression it wa: Watson note. As to the aiccount, of Q. [laimmond of $992, at (. !anuai meeting of the board(, he asxed t chalirman to ask patiies owling to col (low n and settle. They enmne in 1"ebi ar'y. Mrii. Uaimmond prioduced a stam ment, a driaft, and check. The che was on bank of Anderson of Novemni 27, 1895, tot' $500, given to Col. Neal suiperintenident. Lic said tat was advance tot' 1896 convict, hire. At i end of 1895 ther'e wasa to his croi $49.24. The cheek had no connecti with that. That check does not, a Petar to have been deposltedl In Colaunbia bank. T1he cheek v stamp led "panid'' by the Anoderson bali The pr'(otceds have never been entet uphonl thei btooks of the penitentiary. is not aware that, the p)enitentiairy c1 got thet money. On lFebt'uary 14, I1897, Mr. Hfammt wias driawn upon1 lby Colonel Neal $85(i.l7 at, ten days. Tihat, dr'aftv discountedl at iFartiers' andl Morehar dI baik of Anderson. It was deposited t( I the credit of W. A. Neal, superinton I- dent. The Fowler draft was drawn on 3. the same date. That mado somewhat er over $1,300 on deposit in the Ando oon ir bank. It appears on the books of that I bank that the amount had gone out ,t during March of the samo year. The 0 ofllicials said it was drawn out by a draft 1. from Columbia. The Carolina bank o says it was for $1,352 12, which was is given then on Feb. 26, 1897. On that d dato Neal told him he had deposited g on W. Q. Hammon-l's aecount, $55( 17, 1, $300 less than the draft, Colonel Neal d had drawn on him. Also $256 on the it account of Cooley & lowler, $21 less . than the draft Mr. lowler accepted. r The Carolina National bank informed mno that $812 $And some5O CentS, the sum 11 of the two amounts deposited, were to . the credit of Colonel Neal, superinten t dent. H-e also depozted $539.95 to his , personal act.ount. That, with the do s posit to the credit of the superinten d dent, makes Up the amount of the a Anderson draft. Colonel Neal told I- hil' to credit the $539.95 to expense ae y count and the items would be given L him later. But this Ias never been d done. Mr. Cunninghamn had sent him to Auderson to have a settlement with .M r. lammond and the crc he found out S the facts. t The accounts Colo'sel Neal put to his e own personAl account in the bxank could r not go to the expense account. 1'x k pllnse acounto are never, paid to the superintendent. The statement that the amounts had gone to the ex pense 0 account was a istwrepresentat:on of " facts. Mr. Hiammnond after payirlzt ex penses paid $856.17 and the peniten tiary did not get $300 of the amount. The .1. J. FrOtwo3l case was for a thousand bushels of oats at 50 Cents a bushel. Mr. Pretwell showed him'a 0 receipt from Colonel Neal in settle 0 msent. 110 ascertained this since J an SuIary. lie knows nothing about the V. W. - iRussell note. There was a Pretweh U and Itussell note for $025, of which the Ln penitentiary got $600, the $25 boing for G discount. . W. W.. Iiusselt Ibad.never hiiired convicts. 'Soime'timie during '11, 3 Rtussell and Pretwell were urged to t settle the note. Later he was ill formed by the bank that the peniten Liary had been credited with $600. t Pretwell and Itlussell owe something U like $235 over and above the note. 6 S TiE TESTl IONY. ()P COL. NEA h. e - Col. Neal gave his evidence in a clear n a-id sctraightforward manner as follows: e The fit't lote of B. H. Itagsdale, s taken up by Mr. Watson's draft, was n1 first constildered. lie swore that tihe .s note was given for conviet, hire in 18-)7, 6I undcr' the contr'act of IMr. Watson. - Col. Neal wished to start, at the outset, and s.id he vi as ready to answer any and all (tiestions. e In December, 1892, he was elected 11 ,superintendent. .wso years h fore tibat d ie helI and made large cot-ton cropt wv 250 to 300 bales-and M'. Watsen was I c first, cousin of his, living live or six d miles apart. He hsld the crop of 1890 e and 1891 for bettcr prices. Watson en 1. (Otsed for him to hold the crops to the n1 amount of $6,000. Ile oveldrew his g bank account, to about, $1,!,00, and was e iretty well fixed up to 1891. Luck d went against, himl. The crop was sold 1. in 'lte fall of 1811 and he was sick. He - owed the proceeds of the crop to the r bank anid was prostratu when sold. - Col. Neal went on to say that, things d went on so until the fall cf I192 and be i was elected in Dcember, 18 t, as 6 suITintendent of tie penitenttiatry. s le took charge on January :1, 18l:l AfLer the election and before coming her, he had 701 aeres of land in An diron, and eig hteent Im ules anlid hotsrses, corn. fodder, hogs and provisions. lie C said to Waston he was going to leane, -anid told hinm he hali ndlor'sedl to thte -amsounit of $tI,000t, and we have si1 lpped -up and he mleaint, to proteet, hImas i he ecous!.i. lie tendered Ihim all thse prop Serty and left Watson the real estate, mlies, macinery and all. lie masde is hinm a deced tos thse recal estate, and( had -. his wife to relimpq i dower:5. Watsons ,' told hsims lhe (lid noit wntt thse prioper't.y. e Neaul said that wias all tie coutld dIo. ,There wer'e somse othier' debts. Th'le ~tenisant (Sn the PILce-at k ind o5f for'e a msan-Mr i' 1 B. I tagsdale, took echarge. 1e Ie ag ree~d to help ~Imn the fi rst two ' year's b~y giving him $')510 out (If hs hi lir st two years' s--alar'y. It, wett on j that way for three yeat's ;that be wa-, -to t'uni the n'.ace, ho to keep aiccoun t of (I tings. Th'le understanding was that :if lhe could re'stot'e the planltation t~o me it, wotuild bs dlone. It wot'ked on tthis way for. 18113, 189-1 and 189~>. The foremanitt heeame d~ilisstati. el and1 said , lhe woulId tquit un tless hie, ( Nea , ) took L. chiat re, as I (agsd ale ansd Watsons cold 4- niot get alonstg. li aicCd forty dollars of Mt Isis salary. At the end of thse third ig year he toldl W\atsn somfethsing would ie hsave tot bse donse to k-elp titagedale tIS Watsons was hoarding with hims, ansd bi et told1 him to iigulr thlings up. Watsmt y'- told 111im it wolSd Liake *14.0tilt to sqitur< ot utp whIIat lhe owedi Watsons onl tlhe po e erty. ie agreed to p~ay $200011 a yea as tatd interest at 7 lper cent. ThIsis cotn )l. yertsaitions took place In lFebrutary, I1890 Id Uc made up1 tile statemtett, atnd it, wa le ag reed upon, lie then ag reed to hsi r it- thbirty convictb fot' three year's. Col .1d Necal wvas to assttte conttrol of List Ie farm, so far as Mvir. I lagsdale was con is- eteed. I Ie paid WVatson somtethsi ng o, like $:3,000 the Ii rst year. lie kept or i oping for better yeas e. InI 1t7 h<t d( pidt about, $:3.0L0 againts, inIecudings: ini 'C. suranilce. Th' i year hs nt, t eer~ a wioud tip. The expeises will i'io~s I. consuome w hat, was msa,'e and perhta: ry as little more'. lie has g-. tnotin tg onl h~e of the faurm in tihsee ycar ss. It tat ivs tne to tile I (agsdales' niotee, the I tag'sa . -- were tmansagers an thes farstm. Ts. be- 1p1laec' was dleed ed to WAattsion in Il'Ut ok and Is tuoonk chat'ge of the p)laci .lant 'Or uar~sy 1, i1192. TheIs labor)5 cotracltis atr as madUOe fort tharee years s achIs. IIle wva its runnsing the place in 1896,. 197 am hse I , so as~ t,> keep I lagad ate, lie hias lit fr-omt twentty to thtirty consvicts tsn I122 on Thela Ansde rson tandl l'sckens lanations a ens hadl abou~t lttt aicres iad was dleederi as imt by Isis lathert. andI h se vesr Isa k. ftull poscsesitn Lt a ft,: his mlothter' ed deaths, whets hse wa-sntma. lt suerintenid le ent. Hie lesedl'A Watton Isi, Il'ickens eri p1lace, anrd Watsi ons d eed isis place ti nd lie thought itn i 3 there wits abou for' $17,000 du e on thse Andsul'~'or place, ani ras the pr'olits over t'intd abosve e x penise thes convicts ran about twenty to thir two, and so for 1898. The average m about the samo. They wero swapp about on the Anderson and 1Pckt places. The pouitentiary has not yet be Paid for the use of theso convi for 1II6, 1897 and 1898. For 1898 the is no note or other evidence of indel edness. Por 1897 thore was the Iaj dale note, which remaiied unpaid, a for 1896 t he Watson note is aht o un pal The note for 189ti was made bv J. Watson and discountled by th bian Th, conti'IrctI weler shown Col. NC relative to the recoiveyance of Ll farm. Col. Neal said the labor and far contracts we :e mado the samo mor Ing and were a part, of the san transaction. lie saidl he was to becon a sort (if manager to keep Mr. I tag dale on the farm. The understandit Was that he was to seu to paying fI the convict hire. lie wia to pay tLI convict hire out of the lproceeds of ti la) ce, if lossi blo. Wattson had nothing to get out that, lalor contract except his $:,it and interest, an nual pay ments on ti contract for the reconveyance of tL land to him by Watson. tit did n know w hether \VtSoi's note for IS was ever pri Sented. It was settled I one of the tl.tgsdale notes. The ltg dale iotWe aru outstanding. I. I I n-daie, he thought, was wort Solliet hiill. Wiatson wia solvent. ( W. I1 Vgesdal hi very little propert, Waton's note, he thought, has al wa) beenl held. The C. W. I gsdale nol Was in tihe b ))aink for collection. I1 Coulid nhot recdllcet whether the Wa son niote for Conviet labor for 1,09i wi eve' di sco 'untied. The notO may po Sbly i ave lben discoulite., but ti note is in the stfe anlid would show f( itself. Th1is C. W. Itag.dale notO for convirt labor for IS90. lie did ni think ,he Watson note was d iscountue 'Tle hooks were referred to and it w; shown that the Wutson noto was di cointiLed. It miay possibly be that Li C. W. l'agsdale note was to Lake up ti Watson Ioiir. It was for convict hi lor 1 -.6. lIe paid Watson about $i,0 in Is," and 1I17 uider tle contrat Watsoni was to get so much a yell every year*. The ConVict hire wits be paid out, of the piroceedt of Lbhecro lie ad mitte'd that, if instoad of pa ing his debts he iad paid the con vi hir-e, the State would have been pa! Tiie money that should have gono pay ilg convict hire for 18!Hi and IS Went, to Watson oi his debt, to hi lie never got at dolarit from the plti tions in six years. "Will you ti.el us about this recei for $1,115.s5 '" asked Mr. Stevenson. Col. Neal took the r'eeei pt and exit ined it., and said he did not kno.v wh it was for. lie said it had his sign ture und was L'ebruary 22, 1y.. wanted to ask Mr. Watson about and Mr. Stevenson said thait Wats Said the money was turned over to C Neal to paty for cinlvict, hire, and took r eceipt.. Col. Neal said Watson nover- p him i money out of the proceeds of t crops. The receulpt does not say wh it Is for. "What other account could you ha ha as superintendent. You signed as iuperiitendent ?' Col. Neal said ho (lid not rememh matter, and wanted to talk with M Watson about It. Mr. Watson then explained that tLi Crop for 189I6 was taken by him to P' z .-t and i'tedmont and sold, and Ie at Neal had i settlement, liiebruarv ' 1897, and Neal made him the paiy liel agreed, and lie gave the check f $1 ,-0). Gol. Neal said when the settlemel was iale tlbu check was given him I paid out for exICIesus inl d aMou. Aniderson. Thu money was depositut for the cotton in Wvatson's name, ai that was whby Watson gave him iii cheek LtI hay the faren C epeses. Wu~i soni, lie said, kne1w that nolt a cnt weC to hiis accounut as5 super~tinitendet, of LI penlitenatialry. le glt, no1th in g to yi any ci lim here. WNats si~i.old the et ton ti) proteet, himtself in his pIaymer lie did not untde rstandl why thle recei wats I ied bly him i t 1 as1supeinitendiler Ilie was plosiuive ill monliey wasi1 lii him t by Watson to go to the r'ed it eonv ict lir ie. lie exainIned Lthe si g Lures carefully andl compared it i otlbers, ianid11( aid e nieveir got any mon to pay hire withb. The s ig nataur oo)k veiry muitchi like hiis. lie dIill not I mumbher giving the r'eceipht, buit d not (Iciy it. The I tagsdales gave thi notes beause they were the forenu 111n1 ho did not, wish to worry WaLst hiopinog to get, out of the di thi. T merely golt, wages, anid are in. no1 wV responsihle. T1'li board ii nothiing atlI about the I tajsdales gIving t -notes. lie bad eotnvicets be fore lie wv ileC.tedl. The contvlets wer'e then pa for monithilj. Afttr that the Iblard bi Lii carriy ill ConiitracitCs hieeause of t, Crisis of ING. Godua sieiity was iiid not ri'u irie a hond, and the ba left, t'ilose maiitters larIgely to him i. TV -cdit, bus'iness startedi ini 1 , amd L nux t 3yealr coniv iets were: ni')traetedl on ilcotton tionils att six cenits. ' boatrd to a large extet left the ciill tionis andi the conitracts LI) him i. 'I hoardl kntewi whIio hiad contracts; LI -k now the numinb-.r of men cointr'acl Sfor. "1Did you ever before take ao from a solvienit, ruan iand ai llw iL to taken iup by at note'. gm.n by insolv)1 patI ''asked Mlr. Steveunsoni. inser :ITh e con tract Is the bir ing pari,. As a rl adwn l it Liiiie contract. 'Ilhe bond wasr signied ill becaulse lie nieeed noi b)1 o0 mi.tke his coiiwrac', good. One4 oIf t Itgnulales is rl:.pontsihiC. Ilie too1k t niote.s because we weeo1 Il woriig i Wat'on wa is to g!et thie oroced of t l 'iekei.s piiaue, andi~ his pay inents oni I "If thle l~agbldales wer'e nt r'IporI b1le why take their note' " asked St~evenisoni. " iteu-e wve did not wanttt Lto wo "W'.y have the noltes if thei e tact, hols and tLae notes ar'e i o t'o - The first paiymenc:ts were on1 thle phi and there was uiothiIng left to pay convict, hire. The Ion iteniti .eiry nec thec money. It, was vi rt.iil ly ihe p t tentia ry borro wing iioney ( I it.' Ii I endorsements. In the i nial oettlei s he would have LII pay13 11or thbe ciony -: hIrn. ''hn paym,.nt on th. lnd~ I "A careful study of the business con ditions of that whole - section, of the spirit of the people, of the splendid progress already made in cotton manu facturing, of the truly marvelous Iron and steel-making advantages, as illus trated in Birmingham-and remember ing that while Birmingham Is neces sarily dostinod to be one of the world's leading motallurgical centres, there are many other points where iron and steel can be profitably manufac tured, thus giving assurance of the upbuilding of many other Iron cities as the work of development goes on remembering all these facts, the thoughtful student of business condi tions must see that the South has an exceedingly bright future. " The progreis of that section seems to be well rounded, with i steady up building in cotton and iron manufac turing, and now Birmninghani is pro paring to take a dominant position in stool-naking. The two great steci lants now under construction at Bir minghamo will, I u.idorstand, cost about *2,:500,000 to $3,000,000. As a factor in building up that city and in creating diversity of manufacturing interests, these steel works will probably be of moro value than everything that Bir minghani has up to the present time accoipllishcd in iron matters. We found a very marked activity in cotton inill building and in Alabama learned of the closing of a contract by the Merrimac M anufacturi ng Company, of lAuwell, to build at, luntsvillo one of the larrest cotton mills in tibe world. This plant, so I was informed, will have 200,000 spindles, a bleachory and print wooks, and will, I believe, bo tie first Irint works in the South. It will probably cost over $2 500.000. I in all parLs of tile South the cotton mills were reported as prolitable and co1wled with orders. Tihe splendid cottll duck ill at Collumn bia, S. C., is one of the finest mill plants I have Over seen, and its electrical cquipmnent is superior to Ohakt of any mill with w iicl I aim famnil iar in New lngland. Its gIeneral Inanager stated that It coul d sell double its pr'esent output, Lhe demand for its goods coing from al pIarts of the world. In North Caro ilm I foutl that one county has twon ty-two cotton mi ills in operation, with five iore projcted. In that county the farilers are said to be so prosper oil, owiir to tlh local demnand for dive'rsitiied awricilturai products, as to ie Iroe from debt, witLi i good suniply of cash l)to thir credit, 1,heir barns filled with cOII and their mUat houses with provisions. " Added to the general In dustrial advance everywhere noticeable is the vel- st-ikjilg progress that is being mlaide in, tihe development of Southorn Iorts. At Galveston, Now Orleans, l'eaacolht, Mlobile, Savannab, Norfolk, Newport News and other ports, exten siVe einla rg ieln ts of termninal facii tie::, involvingui a Lootd many Iillionis of dollar-, are being made. And at, New port, News, ir Iluntington's great shi pyard, em1ploying abiou t 5,000 hands, has, I learn, about $20.000,000 of work 1I ude'r contract. "L.O ;k ing over the w hole'situation, as I have tried to do, and appreciating soiethiig of what the South has at ready accomplished, and what its many advantages aro, I aim thoroughly con vincud that there aire great o)p)ortun itics in hiat section for broad and coml irehensivo development. " So far as the plans for tihe Amcri can Cotton Company are concerned, we have for several years been at work develo)inag the system of )utting cot ton into a bat directly at the gin and then winding it intoi a cylindrical bale about the size of a llour blarrel. Tiis is aratically putting cotton through the first stage of manufacture at the gin, and * ill do away with a good deal of the work no0w dono~ atL the mill. in tlihis compIaict, form, with atll air ex ciluded , the cotton is noncomnbustible. tibu-, reducing inosurance one-half, aind greatly fiacilitLatinmI tihe shaipmient of cotton biy rail andiu water. Undeor the old systenm onily aibouat 1,000 polunds of compre~'I.ssed cottonl cain be1 loadled in a cari, wileh wih Liour1 round1( bales0 we cain (load a eiar Lto Its fuill catpacity, whether thaat be( 50J,u000 or Ii0,000 piounds. [n ocean transportation~a Our -.round bale has the samie aidvanutage. Th'lere is a saving (of (roan li to $1 a halu1, as8 compilared w% I itI preset miethaods, in which South 0ern farmler-s anid transpor-tation comn pain is wvill Imargely bliarec, and every econom~Iy in redulcinag un necessairy ex iicmiies bIorneI by cotton will i nsiire to Lt) tile beneili, Lof the wholo1( South."' T<> Soti'T'a Ct Iin>ILNA'S lDFA o--A special to till Washington Star from Winchlestcer, Va., saiys: "' TJho laid is of LtheI memaiorial aissociai Lion hero togotherm with the Daughters of thio Conlfederacy in South Cairolia, have sucecedod In raising the necessary amoilunit to erecL a mfonuament to the Southb Carol inra CJontfederate dead who lie buir ied inl Stonewall cemetery here. In the lots of other- States in this come teriy ther" are no0w moumrents to the ilead (if the respectivo Staites. 'The fundo raised for the South Carolina Imlonumilent wais considerably augment edi by oa personal subscripition froam IChaarles II. I Louss oIf New York. 'Pihe mo(fl nut is to be unveiled 0u NJlemaorail Dauy, Juno (ith, and the commiaittenu In Winchester and the re mresenitatives of the vairious Con fedeorat'. orgaun'zautions in South Care linia ar-e co-operating aind promise to makol{ it, a greait occasion. "' Theru is to be an orator who was him'uself a Can federaito soldlior, and oIso an1 Orator who Is to be a rep)resen Lative son of a Confederate soldier. Theli commi~iittCeO have decidedl on the .junior- orator, and have invited C'l. John C. Capers, now one (If the United Status aittorneys inu Washington. Mr. SCaper-s has been prominont for several yeaurs in South Carolina, aund Ia the son of Gen. (n~on bishop) Ellison Capers of thait State." --The greatest light is lirst for braid,. next for butter on the bread, aind then for sugar on the butter. -LFrance has more porsons over 60 yeaurs of age than any other country; Ireland comes next. "A good ideal wvas thle guarantee you gave mei (li Alligator iiiiiment. I tried the0 himment anld it's our -family friend nmow and alway's wvill be for it relieves painu 90 (imelkly-, \ 0 1180 it for horses aind an iinals also.2' One of thousandis of testi monaital. ty- him to pay for the convict hire, still as due. He got no benefit by paying on ed the land, as the money on the convict us hire is due Watson by him. He rel torated that Watson was to get noth en ing but his annual piaymont of $2,000 ts and interest. Watson was to got no re prolit and had nothing further to (10 )t- with the contract. There was a i rans f(r of look ing after the place aftor the id first three years. The only differenco d. was in the Imanagoment. IH wits to li. look after Ragsdalo instead of Watson. k. lie was to take care of the notes when al they mat.Ired. Ile did not know to whether VWatson gave a bond or not in 1I93, 1I8, i,185. No bond was rcquired InI of a inan considered responsible. He n- did not rCeinmber saying anything to ie Watson a' oi t uing thbe Itagsdalo note ie inl plie of he Watson note. itolativO s- to the i''owler draft, and receipt he said ig ho got, the itoney and charged it op to )i hinisolf for traveling expenses, etc. le lie got tit $,_)00 of the draft, and with 10 other coll etUions lie charged up, and whatever oalalice duno by hil he would af pay the penitentiary. lie kept a niuom 10 orandIuii of traveling expenies, and c generally had ia settiemni at, at the end e of the year. Last yar le had no set >, tliniet and it, was Atill iendinI3. This ni inCIlude 1 thlie settlenients for P117 and y )(t. One y t lie a id 'he penitten s- tiary solliethillg like $100 over-drawn. . -I saidi Ihe wol Id clirgo hi isel f on b his iimerand i Iln wit h such ioney. The hookkeeper had notihing to do with this Itecollit. The settltelents appear * with Alr. liiirris- as any OtIer seutile e ient whienc had. At the end of each e yeatr he ti Ws ove, IIly balance ; soic t,. tiines the peniteuitiary would owe h imc ks andi boieti mis lie owed the pleniten S. tiary. '.l'here- was no aliowaico for c expenses ; whal.ever they were they >- were paid, is At the endl of 1 S5 he did not think it there wa; a -ietti-lieIt. lie did not .. think the ['owle:' collctioni was in his e last sttlenient,. Th e booksshow wlien s- thbe ettlotnent were CV iad. lie Ie had no account, for the Imoney, and Ie knew that li.3 did not reall the last, -e settleinent as to this 0x 1)pus0 aIccouint. o It, wa, aboeut I6. The l'owlr paper .wats inl 1815. Ile wvould not(Avel( nluale , settlenlilt inl 1 .9 anl left a reciet to ollt for l . lie drew Inoney for p. traveling expenees. T h book- will y. show how inuch ice drew for traveling et ex penses for last ye-ar. lie kept nio d. separate aceouillit ir hook., hut, de tLo posited it to his personial acCnt. 7 The coliitIei tomk at recess on til n. toiiorrow moninM11g. I t is to be noted a that the Watnoni iecounts for liS9 and 1I97 appear as iaid on Jbe reports. pt, Tlicy have 1en paid Iby cash realixed from the Iegs-dale otes di isceu nted, n- with the endorhement of Col. Neal as at Supelrintenideit. Tie bank hoh.i. the I- endorsed notes zagiainist the pelltelti le ary. The 19 account in still opei on it, tle books. Al. TIE SOUTH IS NOW BOOMING. he RISOUR1CES OF1 OUR SECTION. ,id hle Whit( at Northeri Man Saiw ii the at Colurse o an Ini Etenided Trip--lle )oets Not Bellieve That Any (ther VO Sectioln iheliIi World its so Malny it 1'eahii-reating Adivantages. r illtilmre Sinl. r. M r. .1olin P. Seales, tihe well-known New York linancier, was in haltiuore le for awhilo yeste-iday, On his way back I- to New York after at live weeks' hn ip lid th roi1 h the Sou thern States. On tle 2, trilp Nir. Sale cs w as aceiCm paIn ied b3 it his sonl and Mr. lIichard Ii. icdmiollds, )r of ihltilori, cditol of tiit Mallnu factir ors' lieCord. it Mr. Searles is devoting his attentioln ,l to the developimn', of cottio-handling i 1inethOdS, aund to ihl er Sou Lh ern ill ten - (d ests. MIore than Ii fty Sut th irn cities d wereO visited and abiot 7,000I iniles ic traveled by the jparty. Starting fromn t- New York on ai privatte car, they wvent it, tio Cliicagio, thence to St. Louis1 , I) c. Ic veir, Colorado Spin gs, tierogh ii kl(1a vy hoinia and the Ildianl TeCrritolry to ai, Texas, I 4ouisiana, NIIssissi ppi, Tennes t,. su1 acid to i tt~ I ~loc k , Ark . i-'romi pt this plinlt the-parity visited A ilaamai, it,. Geiirgia anti t.he Carolinias, Inlaking Id 1stop1 iat Illntsville, Monutgoeinery, Au a- Norlfoilk andi Newipirt News. I e-pre~ eayi wherever they stoppied, andli a nonuiber 3d of receptionstt and dilnnelr plartieCs were -e- given in thir honor. Cs "C Thie Sou thi," said Mr'. Searlecs. in an ir ilnturview it ih a re porter of Thec Suon, ni, "hias fill LCen years been~l pa-ssing tihroutgh nI, anc ex; orilln ntal p riod, in wihichl the cy mlOttle0 of tihe peoplio an d the ilnheroen t ty strenth of its posliition have beii uni lit, drcgoinig ai test.. I hoth have stood L~be ie ordeail aunid deCrnonilstraited to Lhe buii~ tis neiss~ wolid theC5(1 oundlnIess of the wvhole id Southerni si tiiationi. Thelc Southb is a id counetry of such relinarkab llo niatuirai :ce aidvanitages that it. woeuldl seeil 1.0 olfr -e- the broadiiest oppuortunrities for exten hie sive oerationls in tbe develoinenit, iif rd its minieral andi tiinher weailthc and the hie extenisionl of its railrolad facilities. lie " Wheln the very reiink able corn - he the Sloutlh iln ceial, Iion tiinbter anid ee- cotton, withouit euounting allt of the less lie stlriking rie(ources of phlosphiates, rnar-i~ ey bile, granlites, N\ ., is tiakeni initti n1o cii counlt,, I Cenn readil believe, as Mir. [i eimiuneds ha-i often s-a id to meii, that, Ito there is no othcer coiintr'y in the world lbe whIih anii iult~icateo its wvealthi. Ot)hcer 'at coulnries haive some0 oIf thiese ad vani tages ; -lulm haveiC nioi andi coal, somce d- have timb~ler, wnne( hiave mlarbles anod nig graniite-, hot, I believie it is fir to say iot tiiat, noi oIthier regioni I' lice worldi has nid thcemc all concienitratedl in such weatlth tie cretinog magn i tude ias the Southb. hei favorable ii liate and11 ai producti'.e Ir-. soil, bothc of which the SoutL. enjoys, lie there ought unot to be any lImit, to Lice lie pol-ibl ;eproitable dcveloipment of that ,Counltry. If i~iglanid couldI cr'eato itk *e eormIous 1 ii indutrial in ter'ests, based cre. anduc spendiing, as she doe-', about 'ry 6-;,000,000i a year for' foodstulfs ;if New Eniglanrd, with but few natural ei iaidvanitages, could, by Lthe great energy uK (If it..a people and the force (If circtumi 11:1 statnees, bhilid up1 its marvelous i ndus hce tiaul prospeiity, based un ~ impo~r ted ed icoal, imp lortedl Iron and imilpoted Cote li ito(n, wYhat mayhi we niot, expect (If tht wII Soth Linow that it has fairly onteret :it upon01 the broad devepmecnt (If it? ict, mineral wealth arecl its cottont and lumn