The Houston Post. (Houston, Tex.), Vol. 33, No. 162, Ed. 1 Thursday, September 13, 1917 Page: 2 of 16
The following text was automatically extracted from the image on this page using optical character recognition software:
coy. ferguson is
: MOT FORTHCOMING
--' (ConUneed from Page On.)
MOa teat month were introduced In
oS by General Crane.
hint Was Rand the record from the
area investigation In wnich me gov
rna said that whan th suit (the crick
salad caw) ta derided by the supreme
ourt M wood ready and willing o
nr ameoat that the court may jutg
tia-htta refund to the State treasur
;i dMuil at that time that h mad
- in atsJemani Irrespective of what the
custom has been with referenw to pay
rr.eettSMXJt et appropriation bills in thi
Stat and that be wanted to carry
I ino law.
T " It fu shown by other testimony offered
T (he ' the governor had failed and re.
J fused to py the money raid out of th
. teasuMV. but had merclv taken uo deti
I oteney warrant' which were issued by hlrg
Tafter tha appropriation had been ex-
Th'austad. anil that he would not refund
Tan Dart of the aDoroDnation used for
1 groceries ate. until tlK- legislature
I ' Tha contract with Achilles the Austi
' : trocar was then referred to. This was
. i a contract for 11796 entered into by th
tiroeernor to cover the entire appropria
" tiot) for one year while the Colquitt or
kioken salad case was uendtng. This
"contract was saver carried out.
.deasnl Crane read the anproprlatlon
-trflla for lilt and ltl7. which included
S200S for fuel lights water. Ice and in
': ' cMoajtala and called attention to the fac
'that th Htm of groceries which was ex
'nrsntv included in the Colquitt appro.
" priaOea just preceding was specifically
V criminated from the Ferguson admlrus
"tratle MU by tha legislature.
-. Turnlne tn tha nankins- matters. Oen
.'ral Crane read the record In which the
V gnverner stated that in consideration of
hla aiTina whatever influence he might
' avw in financial way toward securing and
' .VniSI DUSJIICS8 HT UlC lemons i.e..
". fbaak the bank was to take care of his
line from time to time and that h bad
founded the Temple state tmnK ana it
was generally understood as his hank. He
abut read the testimony given by the
tnovernor last March that it Temple
! State bank was the owner u only one
note for 137.500 and that he liad paid
off to the bank $137000 in cash to take up
nss. inosoreaness. emce januir; n. ;
Iwhea Governor Ferguson left the Temple
fttato bank as president after having been
.elected snvernor. he increased his In-
tdeotednasji to the bank from 130.000 to
I tllO.OOe. according tu the testimony given
I by Mm last March.
tTCMPLI STAT BANK.
I Th following testimony was then in
trod Deed- Governor Ferguson answering
rOeneral Crane In the house Investigation
last Marco said he wanted to help the
;Tanple State bank all he could.
2 A On thing general. I wanted to help
the bank all I could; I organised that
bank and whenever they needed help I
. I wanted to help them.
f t Q You wouldn't let a man carry a loan
v - .or io.s that was not gooo policy
i A -If It was good. I will be glad to do It
'. I Vi Mow the law says that one man
(that an individual corporation or com-
' ;paay ahali not borrow in excess of 30 per
' teem at uw capital sioca. uo you mean
5 to say that that Is not applicable to you
' in so far as It prohibited a loan If. as you
Ictaim if was good?
I A I will say this that as a general cus-
item ail the baamera tn the country die
. bastard U.
t v And the custom will override the
: . tatatute?
A That is the practical application of
1 4 The practical application of It?
A Tea air.
a O Tou aa Governor of the State recoa-.
that as a rule that action ought to be
. I A t recognise Just as I told you a while
1 : - lago. that yon can not confine a bank to
; thai statute; you can not hold them ui
.that: they pay no attention to it at all
-' i Q And you aa the head of the State
lgHanem say to the State banks over
v Jte country taat they may safely dtsre-
litard the limit provided by our laws in
SLliat respect? ;
A I say that the first thing is to learn
. . wuat-it is aare ana. ligtna loao la saio
i ticre la not much ro-w about it.
"fit a You recognise that the statutes
majce it your duty to enforce the laws?
1 I A tea. sir.
- tNO USE TO MAKE
t Q Two recea-nise that yon have a right
fm caB. en the attorney general or the
.' .. Charfctng commissioner or any other ex
WcuUve offieer. to enforce these laws?
- J A Ya. sir; and I also recognise gen
Jrnu. that there is a place that there is
Cuse in maaiZ)x technical application
a law when common sense and custom
Ire-veal that it is aaainst DracUcal bnaiiuaa
af aasuesa; aa long as it is safe there is
f iw kick on it. I left that to the discretion
" trn nana ana wnere It is safe and all
i awe no caance to Mae and no
saaxm to permit It.
. I Vt Tou wouldn't interfere with it?
t A No- sir. I would not
Referwnoa was then mad to the teatl-
tnoay given by the governor in the house
. lervestigation cast month upon which th
- . (nvwiunoi coarges were based inrst
r aras an sdmlsaion by the governor In
l connection with the use of appropriations
for groceries that he understood Irom the
r.vvmon oi jucge ny in the chicken
.J? aaiaa case tnat it was contrary to the
x aplrlt and letter of the constitution for
ta governor to receive any pecuniary
. wipwuw Diner in.ui a salary of (4000.
Tn governor's testimony that he de-
s tatted some of the Canyon City normal
. is) the Haidenheimer bank and that It
- drew bo interest and that neither that
: bank nor the Temple State bank gave a
bond for security was introduced.
The governor owned about 40 per cent
m um aioca vi ma neiaennetmer bank.
rie louna trie money in the hands ot
. banks which were paying the State In-
terest under Governor Colquitt and placed
k n us own nuu ana toe American Na-
ttOBStl bank according to the teatlmnnv
. ' ie admitted that it was some advantage
ew ins muik to lane etate runas and
aopostt them In the vaults so it might
land them to other banks at 2 per cent
i or as customers at a greater rate of in
' Tha following testimony takrn in tha
- nouse was reaa:
V ses. Mow you had had a special
fund on deposit In the Temple State bank
known as the escrow fund growing out of
the Dayton Lumber company case upon
which the bank was paying you together
vara paying a per cent weren't you?
': J J. tea sir they were paying 4 per
i Q Well have you looked at th con-
HAD NOT SEEN
CONTRACT IN YEARS.
. ;A Ton perhaps are confusing the
agreement . between Mr. Mansfield and
- myself that it would draw per cent.
TAS amy perhaps General Crane Is oon-
fualag tho agreement between Mr. Mans-
fMaV and myself that his account in the
fund Shoaid draw ( per cent but I think
toe agreement of the bank was that It
aeald draw hut 4 per cent as I recollect.
I haven't seen the contract in a good
' I sea now isn't it true governor
trial at that time let's get back to that ;
ye Were paying at least i per cent on
that.-and Isn't It true to refresh voui
tnesnacy that the bank paid H per cent
and raw paid. 1H per cent and the depos-
itor Cot per cent?
- A Tow mean the depositor?
' -Tea it was to draw ( per cent pend-
ing the litigation?
- A No air not altogether.
tt Well. now. let's see If I understand
f he proposition. Tou had sold the Dayton
Lumber company this tract of land?
A Ton. air.
- t-And something over 1700 acres came
i ao litigation afterwards?
K It was In litigation general at the
n of the sale.
4 At aay rate tha money was to be
d into tha Temple State bank to await
result ot too litigation.
If they lost the bud. wf course they
t n't owe row this money aad with
t underetaading there was an Interest
-'it agreed nf .
lea air. -
New row com som statement here
er day that the-rnatter was already
4 en August U 1111 when this note
d out of your account as governor
'i -mpl Stata bank? v.-. ...
I iu t say it had all been settled.
. t it UM that ho dadsioa ba4
been tendered la It at all by.th Itlgber
court 7 r -
A Mv recolleetioei is that It had.
Q Isn't it tru that the deoisiea was
not rendered in the case until atx mantaj
HAD NO RIGHT TO
DRAW ON ACCOUNT.
A I don't remember the data.
General Crane Mr Sergeant at Arms.
will you get us 18S Southwestern?
Q That account was not checkable
you couian t araw against it until tngt
litigation was settle oouia you T
A No sir.
Q I didn't understand the answer?
A N. sir.
Q You had no right to draw against
it until that litigation was settled and If
the court of civil appeals had not at that
time decided it and that Is a matte we
can Inquire into you had no right ta pay
that item out of that amount on deooalt?
A -Well that's a question whether thy
.d have charged it to It
m -ui .nun j "fi finmwi vim
use any part of that tlt.000 until that
case was ueciaoo. could you?
A No. sir.
After reading testimony in which Gov
ernor rerguson admitted Ma indebtedness
to the Temple State bank was S15S.0O.
although it was represented by notes
signed by others who were really not In
terests uenerai crane read article or
the penal code snowing that Governor
Ferguson was familiar with lta Drovis-
lons. The testimony introduced was as
Q tiovernor. you are familiar with ar
ticle ot the penal code aren t you?
a in a general way: yes. air.
Q (Reading) "If any officer of the gov
ernment who is by law a receiver er de
positary of publtc money or any elerk or
other person employed about toe office of
such officer shall fraudulently take or
misapply or convert It to his own use.
any part or such publto money or
cretes the same with Intent to take n
apply or convert it to his own us. or
shall pay or deliver the same to any eiv
son knowing that he Is not entitled to re
ceive it ne snail be punished by connne-
nor more than ten years.
Within the term. Tnisabnllcatlon of
public money.' are included the following
acis. rirat. ine use oi any puoirc money.
in the hands of any. officer of th gov
ernment. for any purpose whatsoever.
save that of transmitting Or transporting
the same to the seat of government and
its payment into the treasury.
Third leaving out th reading of th
second i wiu read tha second (reading):
The exchange by any officer of one
character of public funds in his band.
r anotner character uia I
chase of bank checks nr postoffice ord
in exchange for transmission to
treasury is not intended in this class.
l hird. The deposit by any off cer of
me rovernment. or pnblic money In his
nana at any other place than the treas-
ury of the State when the treasury Is ac
cessible and open for business or permit-
line tne same to remain on deposit at
'.orbi'Ten cr.V-th.trei I
y were you familiar with the terms of
that statute when you had or consented
to the funds that were deposited in the
American National bank of Austin to be
transported to Temple Texas to the
Tempi 8 tale bank rather than to be
deposited in the State treasury?
a i was.
i You knew of its terms?
Q Yes. Temple la some how far from
Austin from the Bute capltol?
A Why. TJ miles. I think.
Q Seventy-three miles? The treasury
was open at the time that this monav was
deposited to the Temple State bank's
credit in the American National bank.
wean t it ;
A Open every day.
Q Open every day?
GOVERNOR WAS IN
CONTEMPT OP HOUSE.
Referring to the loan of tUe.MO in cur-
rency which the governor testified In the
house he had received from friends. Gen
eral Crane read from the record showing I
tne governor's refusal to state where he
received the money from whom or when
It was received. In this connection it
should be remembered that the basis of
tne cnarge in the articles of imneachment
on this matter is the fact that the gov
ernor was in contempt of the house for
tailing and refusing to answer the Ques
tions regarding the big loan after the
house voted that he should be required
to answer and that the receiving of this
large sum while important legislation was
penmng was a questionable matter.
l ie testimony In connection with uni
versity matters the governor's efforts to
nave Dr. it. k. Vinson and other mem-
bers of the faculty removed and his ap
pointment of regents with this purpose Tn
view was then introduced from the rec
ord in the house. The sale of bonds of I
the Bastrop Lignite Coal company to I
Hugh Hamilton head of the Majrnolla I
Brewing company of Houston and to I
Louie Adoue of the Galveston Brewing
company was referred to.
At the afternoon session additional tes
timony from the house Investigation wss I
introduced by General Crane. He read I
the following question and answes into'l
Q The fourth charge. Governor Fer
guson reads aa follows: '
4. Janrea E. Fercuson was. as above
alleged a heavy stockholder In the Temple I
mate Dana ana nas prontea by tne use
of money belonging to the taxpayers of
Texas and that for some Uma prior to
July 12 1917 there was deposited in the
Temple State bank certain money belons-
ing to tne etate of Texas amounting to I
more man siuw; tnat said money was I
used by said bank contrary to law land
for the profit of the stockholders of said
bank among the largest of them being
ames E. Ferguson governor of Texas:
that he knew that said money should be in
tne etate treasury but In defiance of law
permitted said money to remain in said
bank and appropriated the fruits and
WANTED BIG DEPOSIT
IN TEMPLE 8TATE BANK.
A While the charge doesn't so state I
take It for (ranted 'from the questional
heretofore asked that reference Is made
to the account kept by the secretary of
siate in tne temple statu bank. Previ
ous to May of each year. I think it is
May 1 or probably it might be some
other day in May but as I recollect it
May 1 the franchise taxes due and owing
by the respective corporations In the
State are payable and are paid Into the'
hands of the secretary of state and ha
issues his official receipt therefor after
ne nas couectea it. I think It
nyhow at the time at the date wherein I
the item of f 230 000 ! riicuai h I
and perhaps previous probably a month I
two previous to that. I had said to the I
secretary of state that "I understand
you have large sums coming Into your
possession for th payment of franchise
tnxes. As the law requires you to settle
at the end of each quarter at a time
wneo you are required to file your official
report and before which time you can
not pay any money into the treasury
fand it had never been the custom to
pay it into tne treasury) i would ap-
preciate it if you would deooslt with th
Temple State bank any amount that you
can;" and frankly I was willing for it I
be as large as possible. I
The testimony was then tntrndimtri I
nere ine governor naa stated he hurt
received advice from Banking Commis
sioner jonn s. ratterson regarding depos-
iting of State funds. The Patterson let
ter wnicn precipitated tne learal ami-1
ment as to the admissibility of the gov- I
ernors testimony will be introduced I
xnursoay morning. I
The testimony of the governor regard- I
flauiea rffeaslaleS wreHS neeta B
lelsTlBim treelee Bestow kinul..r
T?SBttot ayes that fee
"Iiwwen wjt jj mjmm ae wees OI fwet lev
CirifiiThia Yod Caocot BofKe. Ereil
8as at Drat aa Uftfeel Mm sr fey Mail
DEMAND A CUARANTCK TITL
. EVERY TIME-. :
Phono Proston 115S 1157 or 11U i
mi piiiwwimiiiih evwfiw vns
Inf tha WOO Item- drawn hgtlnst the
ilIl.ao Canyon City NormalTund I tha
Tempi ttst bank was again referred to
and th admlattoa of the governor thai
sine Aagust M. mt. when th charge
wag made the tttOO was In his personal
uw"" wr iw nsi personal aceeuai aao
- Only few minutes were spent In show
Inf that C. W. Woodman continued to
draw th salary' of Htat labor oorernla-
aionar tfntir August' although the senate
naw rejwcicw ois appoinuneni on snoruanr
10 according' to th records. "
8. It. Harding warrant dark. In th
cotapt roller's office also testified that
Prank Swof did not Qualify aa labor edln.
mteatoner until August and was drswipg
the salary of deputy until that Uma
Clarence Dubose a reporter for th
Dallas Mews was recalled to tha stand to
Identify th report of a speech by Gov.
ernor Ferguson in th hous of represen-
tative March .1 whan toe Davis reeolu-
tion was Introduced at which time th
I governor declared he
I Temple State bank on
no aia not owe in
on cent according to
Following his taatimonr General Crane
announced that th hoard of managers
was ready to close she direct testimony.
By United States
WASHINGTON. Sept. II. Last steps In
tha formal recognition of the Carranaa
government ' In Mexico by the United
States have been aceomotished bv formal
notification of the election of Carrania
aa president and an acknowledgment by
the United States.
Officials Wednesday reiterated that no
lean to Mexico was contemplated.
BAN ANTONIO. Texas. Sept 12. Un
official but authoritative news has been
received In Ban Antonio from Mexico that
President Carranaa shortly will name a
new cabinet with Tleneral Pablo Gon-
sales ss secretary of state. General Al
munrrationa. PalaWclni is known as th
friend of th United States and Is pro-
At Camp Postponed
(titMMif' PrH fofert.)
WASHINGTON. Sept. 12 Because It
has deferred mobilisation ot negroes In
the national army the war department on
Wednesday postnoned the eraduations ai
the negro officers training camp at Fort
Dea Moines la. until October 15.
Th Strong Wlthatand the Heat of
Summer wetter Than th Weak.
I mer kr tsklns rmrslarly Grove's Tietelees ekill
IToeie. it senses enncsei tne blood asd
I bullae ID tee wee! system.
Official Pall Hat Day Tedsy.
Let It b a Sakowltx Bros.
Style: then It's right. See
NEW Methods In Er-tsUng;
competent personal service;
no sliding seal of prices;
correct work and skill found
ed on experience; make our
optometry unique and suc
AT 91S Tsxas Ay.
Where courtesy and Correct
Work Keep- House 7
If not bo thorongiiljr experiencod
and tblo to saUstsctorUr fit hlch
grsds Ladloo' trado. formanent
poslUona. KxcoUant P. M.'a.
Ideal Working Conditions. Ap-
ply tmmodlatolr. 8end Photo. '
Stata age welglit and hetgbt;
V:lk Drclhcrj C:npV
r i DaHwTeWsSv
vSef4 1 ort Want Adalor Besulti.-
i r V AM tlw. 'W AcMsMVisfV ' - . . . " - - -' r- yH::' I lAEniiltr. dkf tttiHshlai tMAiindl lt VvdinM im
.v. rf'.- iiiiiii l Ki Jfti -
12 Urn Ttstck
by Se&s sr Hmes in Week.
Six Smviler Shipi Ixt iO ialaxp
Ad Jtmt ta 9am category urn
PrfTtoni Wwir-Jt. Br
port FtTorabley )
LONDON 8 pt ember II A marked
decrease In th destruction of "Brttlsh
merchant vessels by mines or suddjS'
rlnaa ta lndloatsd In the weekly admiralty
statement issued Wednesday evening.1!
Twelve vessels of more than 1800 tons
and six of las tian 1600 tons were sent
to the bottom as compared with 10 is
the large and three 'in the small category
the previous week. Wednesday's state-
ment shows that four fishing vssIs also
The following is the loaf by weeks tine
180 100 Total
Feb. 1 to Feb. 25 171
March 4 14 S :i
March 11 13 4 IT
March lit 1 ti 24
March 25 19 7 21
April I it 13 M
April I 17 t II
April 15 1 ' 21
April S3 40 15 61
April 19 k Ss It 11
May 24 22 41
May U it s tt
May 20 II ?
May ST 11 1 J
June 4 .- 15 3 II
June 11 22 10' II
June It 27 6 S3
June M 21 7 21
July 2 15 & 24
July 14 3 17
July 1 H 4 11
July 21 3 24
July M it 3 tt
August 21 3 23
August IS 14 2 11
August 10 15 I 1
August 27 II & 21
September 3 20 3 ' tj
September 10 12 II
Totals since Feb. 25.. HI.' Ill T
Totals since Feb. 1 Ill
The above admiralty statement show
the smallest number of large British ves-
sels sunk by mines or submarines since
Germany last February began her Inttn-
Heres-five ottfcost I
popular bltxrVcrtft.'ihe 204
we arc ahowinjj.'
By selecting' your new
Fall Hat from Sakowitz Bros
you can rest assured
that it's the best in
style and quality
and beside you have '
the advantage of expert
and cheerful attention.
$3 $4 $5 $6
and up to $20. '
Mail orders given prompt attention.
Mention color and style wanted.
Main and Preston (formdriy tits Klam Bldg.)
It only takes three minutes to
make Bread in a
Universal Braid Maker Mixer
Kneader and Raiser Cembined
Two sizes : 4 -Loaves and 8
- Loaves. V.
PHONS PRESTON 1800. .
Obtornoa) and traaemark and oopgnont
registered. Witt tee Investor Quid
Beok. OtfiC St TO Kree Bldg. Houston
Tons e - :.. PHON pnlSTON 473
HARDVV v CATHS
PABIfl Rant. It. Tho gUtament of ttm
evening. sheVs Mtt fop th wash anillng
Sestamber I. ona Fronch vessel of moral
than 1100 tons' and ftv vessels under 1401
tons wees sunk by mines sqbmasines.
Two fishing craft also ward sunk. Un-
successful attack were mods by hOgUlt
eran on tore vessels. -. .
SOFIA Bulgaria pept U. n loadon.1
Queen Manor of rubria' died Jurol
Wednaadav laftMeiann. fthe had been till
for aom time and recently King Feral.
nana na crov.n mnoe uoris ana mooti
Cyril were summoned to her kedsld.
ueen- Elenore was the daughter oil
Prince Henry IV of Reuss-Kostrli. She I
was horn In 1160 and married Prinoa Fer
dinand of Buglaria who later ascended I
tho throne tn IsOt. Since the outbreak ot I
the war the queen' had don considerable
Bed Cross) work and at on tiro it wag
reported she purposed to coma to (ho
united State to collect funds for the auf
frer in Bulgaria and to study th hog
piiai system m mis country . . .
To Examine Aviators
At New Orleans Site
icusciewd fVesi KeptrU)
NEW ORLEANS Sept. 12. Announce
ment wag made hero Wednesday night
that Mew Orleans had been selected by
the war department aa the location for
an examining unit tor aviators wno wtu
man the fleet to be organised for war
Will Purchase Sites
For Artillery Fields
SAN" ANTONIO. Texas Sept. 12 With
tho departure tonight of Colonel M. C.
Parland. general staff corps; Major F.
W. Lewla arid Cantain Paul C. Potter on
an Inspection tour of sites announcement
proves it Zocatau druggists
Official Pall Hat Day Today.
You are sure to find new
atyl Her to ptaaaa you. Bee
blue and white
enamel ware -
Saw Pots V
aHow wiNoovya s
$10 ENAMEL ftf
aad WAREeU. ORn
$1.7S iartQwsti j yvh
I given as reason for. lie purposed pip.
A Mrfia4to amrtmnt of alass In olook. If yttl ara laterwtts) In oK
vsyor aulrlfftsnt artthor stsam plant sajulpmant apw aa yur afdara
r writs far priess n information x " .
tps l ssiiwei svrnv
PEiN iROicSb Steel. Co;
. K t-.
v: Kl Ai
Wo bars Just nmodelsd aad doubled the tlso of our Hat Da
partmant aad a woadorful selecUon awaits you.
Laurel Palmetto Seal and Slate
Are the Best Colors
Velours Scratch Up and Plain Felt in every
shape and dimension Hati that are becoming
to the wearer.
If no:: Hats
This peerless line is sold In Houston exclusively
. by ua; there are styles that can not be found In
any other make.
S3 $4 $5 $6 $7.50 to $10
JUgbtno ia.tbe best time to select your New Fall Hat
408 MAIN STREET
ffir. I-.- Ummmmwmmmammmm&' b.. SSSSBBSai.
TIE BUSINESS MAN of today
marks his progress by the mod-
ern improvements he adopts.
The Smith Form-a-Truck makes for
better quicker and cheaper service
hence it is an improvement.
Low in first cost it soon pays for
itself in service. Let us convince you
by a demonstration.
.. :.' r. - ri ' A At ' nttm'T ''
. rnones rresion
iiM tft7 r f I . r.
j'lvnvf ivianimvi. -
'SSS. Thi New Fotbi oi Iron Give torn . ' I -
;v;v Inree Ionics: t
TTni7PsX m0ne ;
oha.-. Wltb location of tho two tr-M.
it wag aaid work- e cantonments to -oomrpodat
pt.W to 1000 men at n
tract would begin. On tract wilKb n i
for maehlno- gun
Uravtlao f4 tho otur
awsisssi if ma ssvniwsev
SCAN LAN IUILDINQ
11 ana 05. - ;
II . .er.
-: tiouscon i exas.
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The Houston Post. (Houston, Tex.), Vol. 33, No. 162, Ed. 1 Thursday, September 13, 1917, newspaper, September 13, 1917; Houston, Texas. (texashistory.unt.edu/ark:/67531/metapth609651/m1/2/: accessed August 14, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .