New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-10-05
S(etr Orleans 8ep1tblitat,
SFFlCIAL JOURNAL OF THEyNlTED STATES
OFFICIAL JOURNAL OF NEW ORLEANS
Malicious Charges Against Mr.. Henry
sMaIicious Charges Against Mr.. Henry
CIews, The Banker-Exp0sed and Com
tradicted by MIR. j. e. COnant, the
Georgia Railroad Contractor

q 3OnHnt, OF the IEul vi d. 4Llhlu COunub
60, of No 229 Broadway, to obtain what
ever information he could give in regard to
the Brunswick and Albany railroad Of
Georgia, his firm having constructed the
larger portion Of the railroad. Mr. Conant
affirmed in the most positive manner that
the recent statements of the Tribune in re-
gard to the connection of Mr.. Henry Ciews
with transactions in issuing bonds, enter
ing into contracts, etc, were base fabrica-
tons, and-said that Mr. Clews had no con-
nection with the road or issue of bonds by
railroads in Georgia upon which he adj
eganced money to be used for the purposes
of construction, except i'll the way of legiti-
8 mate banking operations; neither had he
any interest or connection with contractors
or any profits, nor benefits in any way
whatever. except in the usual and legitS
mate line of his banking business; in fact,
when offered as an inducement to him 10
advance upon the securities, that he should
have an interest in this contract to build
the Brunswick and Albany, and also Car
terville and Van Mort roads, in both Of
which Mr.. COnant was contractor, he per
emptorily declined, and the dealings with
him was ON a purely banking basis.
Mr.. CoIfant gave the following history of
the road and his own connection with it,
which completely exonerates Mr.. Henry
Clews from the charges which have been
brought against him for political purposes:
II am railroad contractor, and in the
summer Of 1869 was given a contract to
build the Brunswick and Albany railroad
Of Georgia. At the time found the board
Of railroad directors to consist Of a number
of respectable New York gentlemen, among
whom were James b. Taylor. d. r Martin.
o. d. F. Grant, Charles L. Frost, Henry s.
Wells, Chauncey Vibbard, Judge Avery
and Ex-Governor Mattison. | found on
examination that the railroad had been
built prior to the rebellion a distance Of
sixty miles. During the war the rails had
been taken up, and a portion taken by the
State Of Georgia to repair its own road, and |
the balance OF the iron was distributed |
among the other roads of the State. Upon |
the collapse of the rebellion the bond |
holders foreclosed the mortgage which they |
held, and took possession of the road |
to satisfy their bonds. They then formed |
a new company, and issued stock to secure |
their interests in the road. They also pro
cured a renewal Of their chartered rights |
from the Legislature. They then demand |
ed of the State compensation for the iron |
which it took during the rebellion, and in |
consideration of this claim the State guar
anteed the first mortgage bonds of the com |
pany to the extent Of $4,000 a mile Fifty |
miles OF the road had to be built in one year |
from the passage of this act which was |
dated March H. 1869, otherwise the indorse-
ment would not be good. At the time | |
took the contract did not know H. l. Kim /
ball nor Governor Bullock. / stipulated
with the directors that | should have the
placing OF four persons in the board and the
selection Of the officers of the company
during the tendency of nv contract
Charles l.. Frost was selected as president,
Henry Clews as treasurer and Henry G.,
Madison as secretary. Mr. Clews' duties as
treasurer were to be merely nominal as IS
usual with roads during construction. the
requirements of him as such officer being
only to sign the bonds and turn them over
to the president and trustees ap-
pointed by the board as custodians These
men were selected to give character and re-
spectability to the enterprise as well as for
my own protection. The bonds and stock
which was to receive for building the
road we're put into the hands of the trus-
tees, and were to be handed over as fast as
the road was completed in sections of ten
miles. This was done in accordance with
the act of the Legislature, which reduired |
the road to be completed in sections Of ten
miles before the bonds were Endorsed. The
officers OF the company were required to
execute those bonds and place them in the
hands Of the committee, to be ready for de-
livery as the road was completed. Neither
Mr. Frost, Mr.. CleWs, nor Mr. Madison
were ever interested with me in the con F
tract to build this road When Mr. CIpwe
|
~ on my work | offered him a quarter in
-erest in the contract, which he declined,
Iiving as his reason that it would make
lim liable for tie debts of tine contractors.
md consequently did not wish to be
Interested in such contracts. Although
commenced the work in August, when
had to be sent from
ind difficult to get, l prosecuted the work
With such vig0r that at the middle of March
had sixty miles of tine road flushed
During this time | was continually har-
assed by the Georgia Central railroad in
crest which was and is antagonistic to
hat Of the Brunswick and Albany railroad.
bout this time | made the acquaintance of
Or. II. !. kimball, brother of the Demo
ratio candidate for Governor of Maine who {
vas recently defeated, and as he had a !
Ireat deal of influence in Georgia, | ar
anged for him to take an interest in the !
Ontract which | heidi he was to furnish I
100000, which he failed to do, and on the !
eventeenth day of November following,
,hen we had 100 miles of the road com {
leted, ] and my partner Mr. William L. S
very sold out our interest to this Mr. H.
Kimball, he agreeing to pay the debts of !
ne concern up to that time, which he did; \
fter / withdrew Mr. Clews declined ad- 9
ancing any more money, and Mr.. Kimball \
mployed as the financial agent Of the com 8
any Mr.. S. III. KneeIand who negotiated
II the loans and transacted all the business
this end for the company and himself as
!,
Up to this date no bonds were Endorsed
Y the State only as the road was built. in
,cordance with the law Every bond
hich l received had the Endorsement of
l.. Angler, Treasurer of the State. who
,tistied himself that the work was fully d
Id properly completed before he gave the
dorsement These bonds were negotiated
7 New York. German banking house. Il
rough their connections in Frankfort and a
erlin, and there is not the slightest doubt a.
at the the State is in duty and honor 81
und to pay these honest obligations. in
Some misunderstanding has arisen be- u
zen Mr.. Kimball, Governor Bullock and &c
L. Angler, and after | left the indorse-
ents were, by act of Legislature, vested
the Governor instead of the State Treas
or, and no more bonds were Endorsed by
o latter
An act was also passed at that time to ex-
lange the second mortgage bonds, which | -
ceived as part payment on NV contract. A.
T State ponds. In other words, the State =
lrchased the second mortgage bonds of
g road at eighty cents, giving its own
mos IN exchange at par. This act of the
'glslature was between the State and the
ntractors, and not the company, TIE
ate now holds these second mortgaoe mi
nds for the distance of complete roaS COZ
: Kimball got the benefit of this act after Fir
eft the road as the contractor. Ma
wish this to be distinctly understood: Rr
at Mr.. Clews had no interest in my CON
'et, nor IN the obtaining of 1t; and know
Ut he had none with the parties who sue Ha
eded me, as Mr.. kimball complained to
that Mr., Clews would not make the adj Ne
noes which ne had asked, wished and