Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-07-13
M'LENDON DEFENDS
. BOND OWNERSHIP
Hearing of Testimony Will Be Re-
sumed by the Committee Mon
day-W. H. Patterson Coming
Back.

even though he may at one time have helo
and later disposed of certain bonds Oh
the Athens street railway company 40
the reply of S. Guyt McLendon, loEHheL
chairman of the railroad commission Oh
Georgia, to the bond-dealing chsrse
which the joint resolution OF the gen
eral assembly directed its committee 10
investigate in connection with the rea-
sons given by former Governor HIKE
Smith for suspending Mr.. McLendon
from the railroad commission
But Mr.. McLendon denied that ne hao
ever owned any bonds of the Athens
street railway He had never even seen
any such bonds, he said. His denial OF
this charge, after his hypothetical de-
Tense, was fiat.
Stating at the outset, when the JOINT
committee began its work, THURSDAY az
ternoon, in the senate chamber at the
capitol. that he would not be represented
by counsel and that he reserved the right
to represent himself in that capacity
Mr.. McLendon, after his printed reply
had been read to the charges cited py
former Governor Smith as the executives
basis for suspending him, handed TO the
committee a supplementary reply con-
tanning the contention that me- MT.
McLendon. could today own every
dollars worth of stock in the Ath-
of the letter of the law, for he said) the
original law defining the qualifications OF
railroad commissioners and prohioltins
their connection with railroads specincai-
ly exempted street railroads.
Mr. McIendon took the position, fur
thernore, on this same point, that when
tie Athens street railway bonds were
sold in October, 1905, whatever disquah-
fications had lain against him, II there
McLENDoN MAKES STATEMENT.
Mr.. McLendon's supplementary reply
began with the already published ex-
PLANTATION of why he went into the bond
deaIs-that he tried to interest capital In
the Wrightsville and Tennille railroad
for the effect 1t would have upon the
gubernatorial campaign.
Asa @. Gambler, president Of the Gem
trail Bank and Trust Corporation ap-
peared before the committee Immediately
upon its converting, Thursday afternoon,
and declared that w. H. Patterson, vice
president of the bank, who has admitted
intimate knowledge of the bond deals by
Mr.. McLendon, and who is considered
one of the star witnesses of the inves-
tigation, would be on hand to testify in
the investigation Friday. Mr.. Patterson
had left the city Wednesday afternoon,
before the committees subpoena could
reach him. Information, as to his where
abouts was refused at the bank, to a
Journal representative, Thursday morn
ing. . es.. .. ,... .es o..
At 4:45. o'clock the committee adjourned
until Monday afternoon. at 8 O'Clock. 1
WheA the meeting of the McL.endon in
vestiguting committee was called to or
der Thursday afternoon, Messrs. Slater,
Wright and Ellis failed to respond to-
their names, and a recess was taken
pending their arrival, At the suggestion
of Mr.. Brown, the members of the COM
mittee present retired to further consider
the method of procedure. II was the
idea of Me- Anderson that the COMMITTEES
should first consider Governor Smiths
reasons for suspending Mr. McLendon.
before hearing any evidence bearing on
Mr.. McIendons bond deals.
Mr.. Asa g.. Gambler, president of the
Central Bank and Trust Corporation, just
previous 10 the meeting, appeared to no.
tify the committee that w. H. Patterson,
vice president OF the bank. who is wanted
as a witness, will return to Atlanta FRI
day, and be subject to the call of the
committee.
' McLENDoN PRESENT.
s. g. McLendon, the suspended commits
sioner, was among the first to arrive in
the chamber. He occupied q place near
where the committee sat. Sitting imme-
diatehy to his left was Congressman
Griggs, of the Second district. Mr. Nc
Lendon informed the committee that he
had no counsel, but hoped to be able
to ask such questions of witnesses as oc-
CURED to him. He appeared in good
humor, and while the resolution GREAT
ing the committee was being read talked
and laughed with Judge 9riggs.a
AS the committee returned from Its
conference, ,Messrs. Slater, Boyd. Wright
and Ellis came in.
SMITHS MESSAGE READ.
AS a preliminary formaltty, the mes
sage of Governor Smith, giving his rea-
sons for suspendfng Mr.. McLendon, was
read by Secretary McElreath. The read
ing was given close attention, though
most of those present were familiar with
Its contents -
The printed copy of Mr.. McLendon's
statement to the legislature was next
read. The length of the statement evil
IDENTIFY tired Secretary. McElreath, and
he was relieved in the reading by Mr..
Wright. ,r,
McLENDoN ADDS TO REPLY.
Mr.. McLendon declared, at the con-
elusiont of the reading of the statement.
that the resolution injected another
matter-referring to the bond deal. He
said he wanted to submit an additional
statement. which he had very recently
been enabled to perfect.
The statement was then read. 1t traced
briefly the history Of the campaign. OF
1906, particularly the railroad rate phases
of It. A letter written to A. F. Bailey, of
the wrightsville and Tennille railroad.
regarding the issuance of bonds by that
road was produced. The statement also
contained reply by Mr.. Bailey, in which
it was stated the bonds of the road could
not be sold below par.
Mr.. McLendon's statement further gave
the opinion; that the bonds were a good
investment, the value of the issue being,
it was stated, scarcely of the value OF
the rails of the road.
1t was further stated that the writer's
mention of the bonds was simply a mat
ter of opinion which he had expressed
to friends. The sale of the bonds would
have been of value to Governor. Smith
in his campaign, he thought. He stated
he was never interested in any bonds or
stocks that could be affected by the
action of the railroad commission. The
law governing this matter was quoted
Mr.. Anderson moved that Mr.. McLen-
don's statement be filed with the COM
mittee.
COULD OWN BONDS.
Mr.. McLendon said his statement was
made to prove there was no law which
prohibited a commissioner from being in
terested in a municipal public utility COR
poration. He contended there had been