Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-07-20

s. Guyton McLendon. suspended rail-
road commissioner. admitted to the
investigating committee Monday that he
Was given the profit on the sale Of $4,000
OF Athens Street railway bonds. which
was made through w. II. Patterson. vice
president OF the Central Bank and Trust
corporation.
Nr. McLendon said Mr. Patterson gave
him 81. so on the first transaction OF s25.-
ooo- The bonds were offered at par by the
company and sold at 10s. He got the prof
Il. He couldn't recall the amount Of
profit on the second transaction
WAS NO AGREEMENT.
Mr.. Patterson's offer was voluntary.
Mr.. McEend0n said. There was no agree
ment between them about the profits.
Mr. McLendon said he had no trouble
selling the first installment through F.
Dec. Sullivan. New York broker On
the strength OF this success Mr.. McLen-
don profnssed the Athens people he could
sen the second instaIlment There was a
hitch. however. Mr. suIIivan's customer
being away; and rather than disappoint
the street railway. he delivered the bonds
70 Mr.. Patterson. and gave his demand
note Later they were sold also.
COULDN'T QUITE EXPLAIN
Mr. McEireath asked Mr.. McLendon, in
connection with his statement, why he
had sought the opinion Of Attorney Gen
eral Hart the day after he handled the
first installment OF bonds, instead OF the
day before Mr.. McLendon couldn't quite
explain this. except by saying that he
understood the Gambler bill to exempt
such. by making no mention OF cases
ike cifs
He didn't see that the attorney gen
erals opinion was binding. Mr.. McLendon
was excused
Mr.. Patterson was called to the stand
PATERSON TAKES STAND.
Mr.. Patterson said that the amount of
the profit on the first transaction was
E-s11sa. The second transaction was on
July q. 1904 The bank paid IS. 1850 for
these bonds. and Mr.. McLendon gave his
demand note. This sale. which was de-
ferred until October. Mr.. McLAndon's
profit was about $50. This ard the pre-
vious profit were placed to Mr.. McLen-
don's credit. Mr.. Patterson said the bank
made the exchange and interest
He and Mr.. McLendon had been friends
for thirty-ive years. Mr. McLendon had
befrienfed brother Of Adr. Patterson's.
He thought Mr.. McLendon was entitled
20 the profit AS to the propriety OF the
deal. he left that TO the committee.
WANTED TO HELP SMITH"
Mr.. McLendon. he said. explained that
he wanted TO aid Governor Smiths adj
ministration. No mention was made Of
commission or profit. He treated Mr.. Nc
Lendon just as IL Mr.. McLendon had
owned the bonds.
A motion 70 extend the session to 2
o'clock and finish the investigation. failed
70 pass. Adjournment was taken TO 3
O'Clock
INVOLVES IMPEACHMENT?
Persons attending Mondays hearing. at
tached particular significance to one hap
peninE. The committee had handled the
suspension and the bond transaction sep
arateiy. When IL got to the bond fea-
lures. Chairman Burwell. a senate men,
her. said that the senate members would
not care 20 20 into the bond question. He
accordingiy withdrew. and Walter Nc
Elreath. a house member. took the chair.
Some people professed TO see in this
an admission that the bond question was
parchment could come only from the
house. Il would be unnecessary for the
senate TO investigate further.
INTEREST ATE UP PROFITS.
That Mr.. McLendon did not make a
larger profit on the second bond transac-
ton IN due TO the fact that the interest on
the bote he gave ate up his profits. the
bonds net having been sold for several
months He was so sure that they would
Ue 500 Nnal ne assured Ine AInen6 people
that they could count on their being
sold
The Investigation will end during the
afternoon. Only one more witness viii be
examined. He win be Judge J. X. Hines,
special attorney OF the commission.
HE COULDN'T RECALL.
Mr.. McLendon couldn't recall how much
the railroads had lost since the reduction
OF fares. except that the A. c. L. had in
creased rs passengers S per cent and de-
creased its revenue "A per cent. or $iss. 900.
Mr. McLendon said he understood Cow
ernor Browns figures OF s2.O0O.O 900 loss TO
railroads as result Of lower rates to
apply 10 Georgia Mr.. Wright said in
reply TO an objection. that these facts
were included IN a communication from
Dir. McLendon 90 the commission. which,
he considered. was an able argument
against port rates. Further Investigation
along this line was ruled out.
The McLendon investigation opened
Monday with Asa G. Gambler. Judge
Hines ans W. II. Patterson as wit
nesses-
The chairman read letter TO Mr.. Nc
Lendon from r. d. c. Stillman. a New
York broker, saying Il was impossible for
him 70 handle a $4,000 bond issue OF
couffnued an PAGE Three