The Austin Statesman. (Austin, Tex.), Vol. 19, Ed. 1 Thursday, July 9, 1891 Page: 2 of 8
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TO-DAY THE GALVESTON
j . LEGISLATIVE INVESTIGA
TION WINDS UP WITH
f A FLOURISH.
CAMPBELL AGAIN ON THE STAND
What lie n1 to Say About Col. Herndon
the News bii.I tlie Ket of I hem.
Finley' Speeeli.
Galveston July l.-The legisla
tive committee resumed tneir vn--in
intn the International and
.r... ht ii.orn receivership at 10
o'clock this moruiug. Receiver Camp-
bell resumed the stand and after mak
tag some corrections in the GalvestoD
News' report of his testimony utider
direct examination witness produced
numerous statements showing the re-
ceipts and disbursements of the road
since it had been placed in the re-
ceivers' bands.
The amount expended in betterment
and placing (he property in a condi-
tion to meet the requirements of traf-
fic the amount paid out on claims and
Interest on bonds of the Galveston
Houston and Henderson road and the
Colorado River Bridge company.
He also submitted a comparative
statement that showed that the earn-
ings were larger under the receiver
ship than they were prior to the ap-
pointment of a receiver. The whole
testimony showed that the condition
of property had been vastly improved
under the receiver aud that the depo-
sitary's monthly balances since the
receivership had averaged over $:i05-
000 per month. Witness also gave a
tabulated statement of the operating
expenses of the road. That since his
appointment he had assumed the ac-
tive management of the road had
stopped all rebates and discrimina-
tions to be made that the rates were
dictated by other lines. They did not
dictate to the International and
Great Northern; the company
did uot dictate to other
lines. They however prorated
on an equal basis with other lines.
Witness said no railway can dictate.
When asked his policy witness replied
he had a policy in regard to operating
the railway but to disclose it would be
detrimental to the business interests of
the company. He was managing and
declined to answer. As to the commis-
sion to supervise and formulate rates
' to govern railways in their business
methods witness believed the railways
need a commission as much as tbej)eo-
pie and did not believe in favoring one
to the detriment of another.
Cross-examination by RobeWson
Bonner & Bonner were the depository
of the receivership. They had $25000
deposited in the First National bank
of Longview.
The First National did not honor
the checks of Bonner & Bonner be-
cause it was not necessary. Tlio $25-
000 was charged to Bonner & Bonnor
who made a deposit in obedience to
the order of court. Witness was here
asked to give a monthly statement of
receipts disbursements and deposits
under the receivership from and in-
cluding the 7th of February 188!)
down to the 1st day of June -181)1.
This witness did and the exhibit
shows that the gross receipts for that
peried were $12800007 OH tho gross
expenditures were $12587079.73 while
the total deposits were $10350535.50.
Witness stated that the differ-
ence between the receipts and
deposits was caused by leg-
itimate disbursements made at
Palestine and never went into the de-
pository. Witness stated that fie re-
sult of the receivership was because
some parties were seeking to get judg
inent against the company while in-
terveners were seeking to place the
property in the hands of receivers
and thereby secure an equitable settle
inent of all' claims against the com-
pany. He was not present when the
receivers were appointed. Did not
suppose anything and was not sur-
prised when the court decided upon
the receivership or when he appoint-
ed the receivers. There was nothing
irregular in the court's proceedings.
Witness' name would have been pre-
sented to the court for appointment as
crjof the receivers if Col. Bonner's
name had not been presented. He
heard so on the street. When he ac-
cepted the position of special master it
was generally understood that he was
to receive $10C0J per annum. It was
amattr that had been discussed by
McCord Duncan Finley Bonner and
others. They had talked about it. It
was no secret. Everybody who asked
him he told them it was" $10000 and
thought they fully understood he
"was to receive that amount.
He did not know whether the bond
or stockholders had such knowledge.
They had made no objection to it. In
conversation with Bonner in his bug-
gy he did not tell him that McCord
had allowed him $10000. Witness de-
clined to answer if the International
and Great Northern had not handled
cotton and given to the Mallory line
of steamers at Galveston more than
they had to the factories of that city
and if this was not an unjust discrimi-
nation. Witness said he did not pro
pose to come here and publish traffic
arrangements with water lines and
other roads.
The committee deciding it was a
proper question tl e witness stated he
did not think the company derived
as much revenue from cotton delivered
to the Mallory line as on local compe-
tition but could not say positively as
he did not have the tariff sheets. Mo
Coid told him at Gilmer that he would
dispose of the receivership made va-
cant by tho death of Eldy at Tyler.
He then gave notice and knew Mo-
. iv j e it
the telegrams he (McCord) had re-
ceived. Witness did not tell McCord
of the telegram he had re-
ceived. Wi ners had not received
a telegram irom 8. H. H. Clark. He
knew Clark expressed a preference for
his appointment as receiver but did
not tell McCord. Told it to Duncan
and others. Whittaker& Bonner op-
posed witness' appointment. They did
not want a receiver and if one was ap-
pointed they did not want him.
Clark's wish was a matter of his
knowledge and he did not intend to
allow it to enter as a factor in his ap
pointment. Whittaker & Bonner
beina opposed to his appointment.
had tiled a protest against it.
McCord did not tell witness innt
Herndon had been tiling affidavits
against him (McCord) at Austin and
that he wanted Herndon removed.
McCord had suggested thut Herndon
be retained and Bonner aud Chilton
opposed Herndou'a removal and
Ilerudn was e till general solicitor.
By Mr. Garwoad Witness meant ny
enormous the expenses of the legal
department and this did not
apolv to the services of
the central attorneys but
to other expenses in connection there
with and wnk-K could oe reduced Dy
snensing with the general solicitor
and other expenses could be reduced
by the economical administration of
the property.
By Kobertson witness Knew notn-
ing about the Palestine suit was not
interested.
By Mr. Gresham Witness said the
main objection to his appointment in
Tyler was because the people there
wanted uuncan. wiiiiuiKerauu Din-
ner were opposed to him on general
principles.
tie wasappointeu receiver iwo weena
after Col. Eddy's death; had no infor
mation that his appointment was ac-
ceptable to New York parties at inter-
est. A Mr. Hill representing them
came out ana mutie a tnorougu in
flection of the physical condition of
the road as well as the management
and made a favorable report and ex
pressed satisfaction with the manage
ment.
Witness did nat know how Gould
felt. Mr. S. H. H. Clark seemed pleas-
ed at his appointment and the way he
was conducting tlie atiairsoi tne roaa
and had expressed himselt to that
effect.
By Duncan Gould had no interest
as he knew of in a responsible way
way with this investigation. No one
appeared in that manner except the
Farmers Loan and Trust company.
The reports submitted correctly show-
ed the condition ol the property and
the disbursements made and for what
purposes made.
Bv Mr. Garwood If Gould s entire
judgment had been p lid it would have
been at the expense oi tne netter-
ments of the road. The receivers had
tho property in a condition to do
increased and safe traffic and hence
increase its earning capacity. When
it passed under a receivership it was
in very poor condition. The road bed
bridsres locomotives cars depots and
everything pertaining to the property
needed repairing
The road was virtually a wreck. The
receipts for 1888 were $3050000 while
under the receivership they were over
$i000C00 annually. The purpose of
the receivers was to improve the prop
ertv. comtdv with the company's con
tract under its charter and comply
with all the provisions of the laws or
the State.
By Mr. Greshnm The company's
property is insured in the Dire Associa
tion ot Philadelphia.
Witness explained the examination
of Gould's claims and reitereted what
he stated yesterday. It was not a fact
hrt becniue a party to the examination
when the 4150.000 dollars was paid. He
believed when the receiveis paid $50
000 thev had acted without authority
and had better go about reimbursing
themselves. His report was filed in
the clerk's office. The investigation
disclosed the fact that Gould had a
legitimate claim against the Interna
tioual aud Great .Northern and it was
not a fact that Gould was transferring
the funds out of the coffers of the com
pany to his own pockets.
He never read Bonner's petition. He
explained the general orders of the
court: came to the conclusion that the
Galveston News' claim for $1200 was
irregular. When investigated no wit
nesses were called or sworn.
Col. Eddy had made a statement
and this with Col. Bonner's letters
coupled together with the assessment
against the company for the lobby at
Austin furnished the basis for my ad-
verse report against the News' claim.
He gave no notice of investigation
but wrote to Bonner and Eddy to re-
place the amount iu 30 days or he
would present the matter to the court.
Wluttaker & Bonner were attorneys
for Jay Gould and not for the Inter-
national and Great Northern. There-
fore they had no legitimate claim
against the latter for attorney s fees
Did not decline to allow the claim of
the general attorneys for fees. Col.
Eddy's accounts as receiver have been
adjusted and the salary paid since his
death. His estate was solvent and
could be made responsible.
By Mr. Breitz The witness favored
investigation. Col. Bonner and he
appeared before the legislature on the
passage of the resolution and de-
manded investigation.
By Mr. Robertson Bonner and Ed-
dy had not repaid the $1200 allowed
the Galveston News or $4900 allowed
for rebates. The court had power to
cause an investigation of the matter.
Payment of t he claim could not oper-
ate as a bar to inquiry.
He saw no necessity of holding a
portion of Col. Eddy's" salary to meet
his pro rata of these disallowances.
His estate was solvent and the amount
could be recovered. It was not for
poll ical purposes and was not so un-
derstood. The amount could be al-
lowed at the termination of the re-
eivership. After he filed his report
on the News' claim and rebates Col.
Bonner called witness' atten-
tion to the' claim of $240
due the News iind its allowance claims
of the News for Novemb r and Decem-
ber were paid. The contract was made
m the early part of 1800. He does not
own anything in but controls the
road. Did not recollect when he com-
menced filing the master's reports in
court. Printed copies were furnished
parties in iuterest on application. The
tiling or the reports was. he thought
made on application of the bondhold-
Uora; naa given me oruer. kju m
following Saturday he (witness) did
not attend. MoCord told witness of
AUSTIN WEEKLY STATESMAN
ers. several aistriDuiiona oi reuuru
h i si i . fl il ..A
U7PT-A TTlAde.
Th first contained 400 pases. It
was not customary to give notice for
betterments. Witness regarded the
settlement of Gus Taylor's claim as a
gocd compromise. Filed reports in
court no exceptions being taken iu
thirty davs. thev become the ludg
inent of the court. If people complain
about claims why did not they go into
court while proceedings were not
barred? He reiterated the statement
about his compensation as master aud
allowance of S5U00.
Judere McCord neglected to return
the order to the clerk. Witness did
not know where his letter was return
inir the order to McCord. McCord
had fully explained the matter relative
to the depositions. The reason for
sending McCord a certified copy of the
$5000 order wai if McCord found the
original he could return the copy
llad charge of the printing of the
record presented iu this iuvestigatiou
Fart of his duty was to see
that all orders were printed
therein. The clerk informed the
witness that he was carrying out
his (witness') instructions and all pro
ceedings had were printed up to the
appointmeut of receivers. Did not
know that his order for $5000 or that
allowing Finley $5000 were not includ-
ed iu trie record until his attention
was called to it here. It was an un
intentional omission. All orders were
not printed iu the vtcord simply be
cause witness did not have time to
chase all over the country to hunt
them. Finley's order for $5000 had no
file mark upon It.
The second year he received as
salary $1800 but before tho year ex-
pired he was made receiver and since
bad made no application for the re-
mainder due. He however expected
to apply for the balance due him on
the master's account. His action
speaks for itself and counsel could
draw their own inference. He reit-
erated a statement about Gould's
judgment aud the payment of the
$50000.
If Gould's claim was found to be
fraudulent an effort would be made
through the court to recover the
amount paid. Did not know why the
order was made. It was usual to refer
all judgments to the master and make
examination into "mental anguish
suits'; thought it was a good compro-
mise. The Brazell case was not re
ferred to him it was adjusted by Baker
Botts & Baker; remembered passing
on tho judgments ot Jieenau aud
others.
He did not care about investigating
the Gould judgment; had in mind to
refer it back to the committee and
asked that Bonner be called oa to re
fund the amount paid. His examina-
tion extended no further than to find
that the judgment was correct and
Gould had a legal claim on the Inter-
national and Great Northern for the
amount. The letters of Bonner were
attached to the News' $1200 claim and
were never detached until the matter
came to this room. All assertions to
the contrary are false. I tore the let-
ters up relative to Herndon; wanted to
get rid ot Herndon because there
was no use for ' a general
solicitor. Never questioned the fact
that a general solicitor was necessary
to Bonnt r and Eddy. As soon as the
witness qualified he found there was
nottiing for the general solicitor to do
but what the general attorneys could
do and it would 6ave $10000 a year to
dispense with the general solicitor.
Herndon stated there was no use for a
second receiver aud witness found no
use for a general solicitor. Witness
read his letter of March 27 1891. ask
ing for Herndons resignation and
stating that his services would cease
on April 1. In employing lawyer
lie would not employ Herndon
The latter did not state that the
"frozen fact" did not dictate the letter.
He told MeUord that the expenses
could be lopped oil; that the purchas
ing department could be dispensad
witn and many other changes and re
duutions made which would not crip
ple the efficiency of the road but
would very materially reduce expenses.
Had McCord told him not to ditturb
Herndon he would not have attempt
ed to remove him.
A few more questions of minor im-
portance aud the examination of Mr
Campell was concluded.
At the conclusiou of Campbell's tes
timony Mr. Finley arose and spoke as
follows:
"Gentlemen of the committee We
requested of the committee early in its
session to bring be tore it as witnesses
representatives Davis ot Falls county
King of Bell county. Rogers of Ander
son county and also W. A. Shaw edl
tor of the Texas Farmer and . Harry
Tracy member ot the notorious "Al
liance steering committee.
We also asked for process for Mor
gan Jones and C. F. Meek of the Fort
Worth and Denver railroad. Un Mon
day of this week we were requested by
the committee to state w&at we de
sired to prove by the above named
witnesses; li we would do so without
objection while no similar request
had been made ot tne distinguished
patriots who for the pretended good
of their country have been hiding
behind the Farmer s ljoau and Trust
company in conducting a veritable
prosecution and persecution.
We cheerfully compueu with the
request of the commission. We stated
that we desired to prove by the hrst
named batch of witnesses to throw
light upon the motives of parties con
nected with the prosecution of this in-
quiry; that the famous "Alliance
steering committee" under the wiles
and secret manipulations of George
Clarke the fallen Warwick originated
the legislative resolutions creating
this committee for the accomplish-
ment of political ends and not to
effect any legitimate legislative object.
We stated also tnat we desired to
show by Morgan Jones and C. F.
Meek that the $12000 paid the News
by the Texas railroads was for politi
cal influence and not legitimate adver
tising. While both of these subjects
have been already testified upon by
witnesses before the committee
I now understand that the com
mittee decline to bring the
witnesses we desire on these
points and we will offer no further
testimony except that of W. L Maury
believing that we have complete v cov-
ered every other point raised by the
prosecution or persecution as one" mny
please to regard it. Should the com-
mission desire the testimony of any
other persoti in any way cjunen pi!
with the receivership we would ba
glad to have it. indicated.
Chairman McKinuey replied it was
THURSDAY JULY 9 1891.
the desire of the committee to extend
a full and fair investigation to an par-
tita in anrr wiaa afTpntPi hv the InVeS
L 11. D I U.UJ vw.-. -
tigation and would extend every aid
iu its power to accompusn mas pur-
pose. But the question with the coniunt-:
tee was whether they had a right to
go behind the resolution?
They had decided yesterday they
lia.l r.rtl- Vif In Aatawnn.t tn Af r. Fih-
111... 'J 1 uW.U.AW.W.-.'vw
ley and the parties represented by him
the committee would again consider
the iiiattt-r. The committee then ad
journed until 10 a. m. tomorrow
After adjournment tne commuieo
held a conference and decided they
could not go behind the resolution.
This decisioa of the committee will
clo?e the investigation tomorrow.
WESTERN REPUBLICANS.
WHEELER NOMINATED FOR GOVERNOR
OF IOWA BLAINE'S POPULARITY
Cedar Rapids la July 2. One of
the most enthusiastic Republican cou
veutions ever assembled in the State
convened here at 11 o'clock today. It
is felt by both parties that this cam
naign is to be a decisive one and its
effect on national politics is fully ap
preciated by every politician in the
State. The Republican party
thoroughly united for the first time
in many years and today the conven-
tion was distinguished by its harmony
and good feeling. The nomination of
Hiram C. Wheeler for governor was
assured in advance and upon a plat-
form in which there was substantially
a reiteration of party principles of two
years ago. I he convention was caned
to order promptly at ii o ciock.
John T. Stone ot Mills county as
temporary chairman made a rousing
speech ot nearly (.no hour's duration.
tin was frequently inrerruptea byap-
Uuse but the culmination point was
reohed when the name of James G.
Blaine was uttered.
There is but one reciprocity" said
he "and James G. Blaine is its
prophet."
At the first mention of Blaine's
name the loyalty of the Iowa Repub
Means to the man from Maine was
more than demonstrated. Cheer after
cheer arose from the vast audience and
the ladies in the galleries went wild
with their political brothers in their
manifestation for reciprocity and ad-
miration for the distinguished secre-
tary of state.
At the conclusion or the temporary
chairman's speech the new state cen
tral committee and various commit
tees of the couvention were ap-
pointed. The committee on resolutions met
immediately after adjournment.
The platform as adopted tor pre
sentation to the convention endorses
the McKinlev tariff bill in the warm
est terms and particularly commends
the reciprocity provision ana its inter
nretation and observation by presi
dent Harrison and Secretary Blaine.
Liberal pensions to disabled soldiers
and tneir widows are urged.
The financial question is brieny dis
posed of by the endorsement of the
present silver law; of which Uonger ot
Iowa has the credit of being the
author.
Harrison s administration is en-
dorsed and the large appropriation of
last congress are defended as having
been necessary for the fulfillment of
the obligations welfare and develop-
ment of the country.
The prohibition plank of the plat
form ot last year is reaffirmed.
Immediately after the reconvening
of the convention Hon. Hiram C
Wheeler was nominated for governor
ou urst ballot.
MINNESOTA DEMOCRATS.
Minneapolis Minn. July 1. The
State Democratic Conference gathered
today with 150 leading politicians iu
attendance. The ostensible object of
the gathering is to organize the club
movement of the state and discuss the
campaign plan.
It has been persistently asserted in
many quarters that the conference has
the ulterior object of ending tho dom
inance of P. H. Kelley and Michael
Dovan in the Democratic councils and
of discussing fusion with the Alliance
party on the electoral ticket of 1802.
Some color is lent the first of these
theories by the absence of Kelly and
Doran aud the presence of many of
tneir avowed enemies and the latter
theory by the presence of some Al
liance leaders. It has been hinted
that the gathering would be anti
Cleveland aud pro-Hill In sentiment.
After the temporary organization had
been effected aud the usual committees
appointed an adjournment was taken
until p. m.
The Alice Trial.
San Antosio Tex. July 1. In the
Allee trial at Pearsall today S. D.
Huff a printer testified that he
worked off the edition of the Cotulla
Ledger containing the offensive write
up of Allee and that after a couple of
copies had been "pulled" as proofs
Bowen at witness' suggestion omitted
part of the article. The excised part
was to the effect flint. tlm m-anA
and petit juries of LaSalle. count j had
been so kind .to Aliee in the matter of
the murder or Franklin the negro
porter. Allee oiifht to no tlon
and daughters. He w:w fulUr onDii
D iicpcwic
oi uenoimiug me act aud would not
ub uuuisucu ior it.
Carrilaal Gibbons' CablogiMm.
Baltimore Md July 1. Cardinal
Gibbons was shown an Associated
Press cablegram today from Rnm
stating that the pope has written him
tnat ne win never concede to the de
mands male by Herr Capensly on be-
half of the societies for the nrotecHnn
of Catholic emigrants in so far as the
appointment of national bishops is
concerned and that the pope has also
lauoru luo jieuuou oi the I'oles in
me uimeu aiates ior the appoint-
ment of a Polish bishop.
Cardinal Gibbous remarked he was
very glad to receive the information.
His eminence added: "I was not un-
prepared for communication of this
kind from the holy father."
For Malaria Liver Trou-
bleor iRdigestioriyuse
BROWN'S IRON BITTER?
DON'T WANT HIM TO SQUEAL.
PROMINENT PERSONAGES INVOLVED
IN BARDLET'S GREAT STEAL.
Philadelphia Pa. July 1. It has
been rumored for some time past that
Bardsley ex-city treasurer really
made a confession which involves the
names of such prominent people that
Its publication was stopped . There
seems no longer to be a d oubt as to
the truth of the story and i 1 is be
lieved by the investigating committee
that the confession is locked up iu
the safe of one of the leading newspa
tiers of this citv. There has been
studied effort from the first from in
flnences unseen to block the investlga
tion and to shield those who have
been mixed up with Bardsley and
Marsh.
Whether the confession will ever be
published is doubtful but the commit-
ree hone to have the use of it to aid
them in developing new clews. It will
he remembered that at the time Brads
ley was to make his much advertised
statement in open court on the day he
was to have been sentenced the ex
nectation was that this statement
would reallv be a confession implica
tinar men of high standing in the state
The confessiou was not made and the
sentence indefinitely postponed and
now the belie! Is growing that earns-
lev will be let off with light punish
ment in consideration of his keeping his
month closed. There seem to be in
flueuces at work iu this respect which
come from sources far higher than the
"pull" of Philadelphia politicians.
THE WELTER WEIGHT.
M'OOY FIGHTS GLKASON AT BURLING
TON IOWA.
Sr. Louis Mo. July 1. A special to
The Republic from Burlington la.
says: ine wetter weignt oatiie ion;
mt It f 1 l t 111 1
talked of between Harry McCoy of
Barlington and Gypsie Gleaaon welter
weight champion ot England took
place at Twin Island nine miles south
of here last n'ght and was won by
McCov in -the sixth rouud. The purse
was for $1000. Queensbury rules gov
erned and four ounce gloves were
used. About 800 of the sporting fra
temitv witnessed the mill. Gleason
refused to proceed with the fight after
the sixth round on a ciaim oi ioui
which was not allowed. Jivery in
ducement was offered him even to
making of an extra purse but without
effect ana the oattie was given to
McCoy.
GOT INTO A. 8CRAPE.
A SEWING MACHINE MAN IN LIMBO
CHARGED WITH FORGERY.
Galveston Tex. July 1. T. R.
Robinson employed by the Singer
Sewing Machine company in this city
as solicitor was arrested this morning
at the instance of Daputy Sheriff
Bootho of San Antonio and taken to
police headquarters. Robinson
charged with forgery by the manager
of the San Antonio office of the Singer
company. When interviewed he stated
that he was formerly employed by the
company in San Antonio and that he
sold a machine to a party ror $ iu casti.
but turned in only so ana tne usual
installment contract for 35. He pro
cured a friend of his to sign the con
tracu. He claims that the company
owed him $3U0 for commissions and he
took that method of getting some
ready cash intending to pay the in
stallments as they fell due. Deputy
Sheriff tsoothe left for 'San Antonio
with his prisoner tonight.
The Alien Land Law.
San Antonio July 1. The effects
of the alien land law are already
severely felt here. Mr. Chandler
reprtsenting the Ssottish-Auierican
Mortgage Company was asked in re
gard to the company. Replying he
showed the reporter a letter from their
American office at New Orleans which
instructed him to suspend loans and
to declare proceedings off which could
not be completed betore the oth.
This prohibition was to last nnt.l
an authoritative interpretation of the
law could be obtained or until it was
repealed or amended. The Francis
Smith company representing three
foreign loan companies stated that
they had received the same iustruc
tions from all of their companies.
The "Katy."
Kansas City Mo. July 1. A
change in the control of the Missouri
Kansas and Texas occurred today. II
C. Cross retired as receiver and took
up his duties as president of the road
which is handed over to the stock
holders free from all financial embar-
rassments and iu splendid shape phj s
ically and otherwise.
a cnange in tne policy or tne man
agement has been announced by
rresiueut uross acu rraiiie manager
Waldo. The receiver's notice thank
ing employes and officials of the road
for their efficient services in support-
ing the federal administration of its
anaire states that the intention is not
to make changes in auy direction.
When Baby was sick we gare her Castorfa.
When she was a Child she cried for Castoria.
When she became Miss she clung to Castoria.
When she had Children she gave them Castoria.
CARTER & CAETEE.
Pine street over Bass Drug Siore
BOX 1. - . ABILENE. TEXAS.
"The Leading Land Acents of the
great Abilene Country." Bargains in
land and stock negotiate loans. Reft r
by permission to all Abilene banks.
Correspondence solicited.
Neeaini; Uonic ov cW-Wren who wan! I -'
!tJns ''!' '''"''-i take
... BROWN-.S IHO fi'VTKKS
lesuou. Jil.ioiifa.3Mai.-: Uvct Utul.:
ALIEM LAND LAty
II1 IS ALREAI I" STRIKING HARD AT
THE bTATE'3 INTERESTS
An Austin Man FiWntg Out Some of Ifs.
Shortcomings-Eidopean Houses In-
sirucuiig Tlie rtAgentg to Ston
Further Loans.
.The Alien LaDd
To the Editor St teaman:
Law.
mi a AcSTIR. Tex. July 1.
The damaging effect of the act passed
by the last legislature prohibiting the
ownership of real property by aliens is
working already its serious injury on
the business interests of the state
While the general public is not yet in
position to realize its scope and injury
those who are presently interested
gravely consider the disastrous train
that must follow on the general well-
fnrO InfA.nri I ...
. "va cet is eo sensitive as cap-
ital whether employed already or en-
gages itself in looking into future
safety and while the acts of the las
legislature are not yet given out to the
people so that he who runs may read
and know this Interest has been on its A
guard necessarily in these days of re-JI
action and radical legislation. Aslde-
froin the belief in the unconstitution-
ality of this sweeping enactment
the question before us ia of prac-
tical business inquiry when it is asked
whether this prohibition shall redound
to the prosperity of our people whose
progress aud development at this time
may be styled a new era in our history. 1
In revealing the viciousness of thi J
measure no advocacy is to be implies j
that baronial estates held by aliens GT
land syndicates of any character are
desirable; but the tacit object should
be assailed which aims at the disrup-
tion of our channels of cheap money.
Our superb resources and progress are
not to be hampered by a limi ation on
the capacities of our development. It
would be difficult to say how the act
has stirred thinking people. Foreign
loan companies are notifying their
Texas representatives to consider no
more applications; boards of trade and
other business bodies are petitioning
the governor that he recommend its
speedy repeal to a called session of the
legislature; while men of affairs ju
rists and lawyers of profound wisdom
and purity and farmers with that in
sight which penetrates to see impartial
ly are all denouncing tne ensaster ir :
posed on the state by such rulnou. ';
legislation. Whether justly or un
justly the sentiment toward us has
uot iu times past D3en inviting to cap-
ital; but happily within the last several
years this has been abated and we
nave only to look around us to see the
results. Within the time our execu-
tives have been men of pronounced
law-abiding enforcing types our am-
ple laws duly administered and while
in the midst of the spirit and life of
our buoyait prosperity this 'aw prac
tically denies us the right or business
intercourse whera our advantage
may lie. Its discussion and
analysis before tho great demo-
xtic political wiug of 1 ins State
would ceitainly arouse indignant
curiosity. It is only within the last
several years that foreign money be-
gau to come into the state Ireely. 16
h is been the means of gradually low-
ering interest rates and borrowers
have had their wants supplied more .
plentifully and at shorter notice. And
who have been the chief Iwuellciaries
since its advent? Manifestly our
fanner classes; and this law will visit:
on them the heaviest blow liestric-
tion placed on their borrowing facili-
ties interest rates must advance ana
it requires only casual knowledge to
ioreteii tne results although the law
in its wisdom has refused t see that
land must depreciate in both produo-
tive and selling value. Thure is be-
tween $45000000 and $50000000 of
foreign loaned monev in the State.
The agencies for supplying us with
this money aie well known not to ask
more from the borrower than stipuJ
lated interest and principal wbeu due. "
They are indulgent to avoid foreclos-
ure and what this vast amount of
workiii? canitftl. for working capital N
it is used in our development ccitrlb-
utes to our own prosperity is incal-
culable. Withdraw this sum from
our operations how could it be re-
placed? Left to the hnding power of
the citizens of this couutiy as the law
would prescribe it can not be replac
ed. If this lending power did come
flmnnn 11a it. wr.nl1 iiipmii i hat With no
competition they were hero to control
rates which would reduce us to
and impoverishment.
V! course the question is nwu
what has been subserved by passing
this law? Can there be an e.ement oi
brothers and fellow citizens among us
who before the introdue iou of this
cheap foreign money got his exorm-
tant interest and to return to their
good old five per cent times they have
legislated the cheap money out or the
way.
WILL STOP LOANING MONK-
An Austin special to the San An
tonio Express says:
crown Bros tnts city wuu
more money invested m lexas
any other representative firm iu this
state received a cable today fro111
their several European houses in-
structing them to stop further loans.
This is on account of the disturbing
piovisions of the Texas legislature
against fo:eign land ownership t"fc
operations of which are causing grej"
sudden withdrawal of mortgage loans
by foreign capitalists.
The eovernor. in view of the posoiw
ble tiiiRncial riinrreiS which seems "
be threatened. is being urged to tad a-
extra session of the legislature io
peal or modify the law in tome
afford relief. He has nor no"'
ntimated what he will aq.
Browns declined under thei' i"8'1"
tion? to make several contempt" -loans
to Austin parties today.
'1
Xs
'i
I.
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The Austin Statesman. (Austin, Tex.), Vol. 19, Ed. 1 Thursday, July 9, 1891, newspaper, July 9, 1891; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth278549/m1/2/: accessed April 23, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .