Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-18
THAT 5000.
Developments Of the !. & G. NJ.
Receivership investigation.
R. G. LOWE ON THE STAND.
The News Had no Advertising Contract
With the Receivers. But the Re-
ceivers Paid the Eill-Bonner
on the Claim.
Special to the Gazette.

Tee On 1nVeSUlSdllOn OF the lnCerndulOnal anu
Great Northern railway receivership re-
Sumed the investigation at 1913 this morn
ing.
Senator Johnson, who was under cross
examination by Mr. Finley, resumed his
testimony. which was reorganization in
great measure of his testimony yesterday,
and developed no new Or startling facts.
Maj. r. G. Lowe, vice president and gen.
eral manager of A. II. Belo & Co., publish
ers of the Galveston and Dallas News, was
next called. Under direct examination,
conducted by Judge Clark, the witness
testified substantially as follows:
He was vice-president and general
manager of A. H. Belo & Co.
publishers of the Galveston and the Dallas
News, had been connected with the Calves
ton News eighteen years, been vlce-preSl-
dent and general manager of the company
since 1887 or 1885 He had had business
transactions with the International and
Great Northern railway company in
the way of advertising, publishing their
time-cards for a period of ten or
fifteen years. The advertisements and
time schedules were in the usual form of
railway advertisements, and were charged
for at the usual advertising rates for such
matter. The rate charged the
January, 1889, was $50 per inch per annum.
Iu that month the space was reduced and
then the monthly claims against the COM
pany for advertising was 1920 per
month and the bills presented for, that
amount were sent regularly to the COM
pany at the end of every month. They
were not paid regularly, and finally
amounted to $1,000. This, however, was
finally paid, and had no connection with any
legislation. The old contract with the
company was for 1015 inches, at a cost of
5000 per annum. In 1889 the company
stated it had become necessary to reduce
its advertising, and the matter was re-
duced to suit the company and charged for
at their usual rates, or perhaps higher
rate. He first heard in a general way that
Campbell had found letter attacking the
Galveston and Dallas News. He was
first informed by a letter from Mr.. DOre-
mus, managing editor of the Dallas News.
He communicated with Col Bonner about
the letter.
Here the correspondence between the
witness and Col. Bonner, as well as others,
which was published in the Galveston
News of August !, 1890, was submitted to
the attorneys, and after being examined
and not found Objectionable, was admitted,
also the letter of Col. Bonner. asking the
News to submit an affidavit which
he could use with his affidavit in his pro-
test against the special masters ruling dis
allowing the claim Of the News for $1,000,
which had been allowed and paid by the re-
ceivers.
The affidavit made by A. H. Belo & Co,
and their letter accompanying it, published
in the News at a subsequent date, We're
read by the witness.
The affidavit of the News clearly and en-
phatically states that the claim for $1,000
was purely for legitimate advertising and
for no other purpose, and all allegations to
the contrary were groundless.
This affidavit and letter We're sent to Col
Bonner August II. 1890. The next infor-
nation the witness had was that the special
masters report pronouncing the claim of
the News illegal had been approved oy the
court. The News however, had been paid
by the receivers prior to the special mas
ter's report.
Cross-examined by Duncan.-The first
contract was made with the company Janu-
airy |. 1889 The 5000 was for advertise
ments. Advertising arrangements with
the International and Great Northern rail-
way company had existed for several
years. Tie arrangements were made with
Col. Eddy previous to the appointment
of the receivers. The contract for $120
per inch was charged per annum in 1889.
He had contracts at different times. He
had contract forwarded to Palestine, but
it was never signed or returned. He had
no contract with the receivers. Mr. Waldo
was manager Of the Texas traffic associa-
ton, which included all the roads in Texas.
He never had any advertising
contracts with him The paper
carried the advertisements of all
the roads in Texas The two papers never
had any contract with the traffic as
ISOLATION. He did not know of the passage
of resolution that the traffic association
should be taxed So, 600. He had heard it
spoken Of These two papers had no con-
tract with Waldo or anyone represent
ing the traffic association. had no
agreement or understanding. The adver-
tisements were contracted for by the vari-
Gus railroads independent of the traffic as
sociation. Before the Southwestern rail
way system had broke up the advertising
contracts for the roads in that system were
arranged with Mr.. Newman. Since that time
all contracts were made with each company
individually and were made at their regular
rates, schedule of which was submitted
The Southwestern system included the Gal
weston, Harrisburg and San Antonio, the
and Great Northern, the Mis-
souri,, Kansas and Texas, the Texas and
Pacific, the st. Louis and Iron Mountain
the East Texas and other smaller
roads. He had conversation with
Waldo as to advertising. He was willing
to make a contract with any responsible
party with power to make a contract, but
such contracts We're never made on the
basis that the paper was to be used to in
t1uence the public in favor of legislation
favorable to the railways.
The witness was asked number of ques-
tons relative to advertising contracts and
the amounts paid, which he could not
answer definitely without referring to the
books.
He was requested to get the desired in
formation.
He said he would grant the committee
permission to examine the books of the Gal
weston News.
After brief redirect examination by
Judge Clark which elected nothing new, 4!
the witness was excused.
Receiver Bonner next testified. He was |
examined by Judge Alexander. He was
appointed receiver in 1889. He heard |
the testimony of Maj Lowe. He had |
written letter to the auditor |
doubling the validity of the claim of !
$1,000 made by A. 81. Belo g. Co., had heard |
a great deal about the claim. He subse- !
quently approved it, and it was paid. The |
claim was not very acceptable one,
but he could get. no definite in |
formation concerning it. The News |
was to pay $500 per month for |
q special train between Galveston and |
Houston. The special masters report was |
adverse to allowing the claim of the News |
for $1,000, as approved and paid by the |
receivers. He got Judge Duncan to
file exceptions to the special masters re-
port. He did not recollect the nature of the |
affidavit and did not think he made an affi-
davit. He expected to make one, |
but the exceptions were withdrawn
They were withdrawn, because Col Eddy |
knew more about the claim than he |
\ L. -, a.