The Birmingham age-herald., 1909-07-12
M'LENDON' CASE
 IN LEGISLATURE Traffic in Railway Bonds is AI- Ieged by His Enemies WITNESSES TO BE CALLED Former Governor Hoke Smith May Ap- pear in the Case to Testify In
 Regard to Suspension of
 McLendon.
WITNESSES TO BE CALLED

way bonds by Chairman S. c. McLendon of the railroad commission is going to be kept at the front by the legislative Investigating committee which now has his case in hand. The committee has concerned itself so far only with the doc umentary evidence. but is expected to get to the interesting part of it's work when 1t resumes the investigation on Monday afternoon.
 The witnesses summoned to be present at that time are those who. 1t appears, knew the details as to the Athens street railway bond transaction.
 It is generally considered that Chair man McLendon made a telling point when he quoted before the committee the law going to show that street railway securities are specifically not included in those in which railroad commissioners are forbidden to traffic.
 That the law makes that exception Is perhaps an oversight Until the enact ment of the new railroad commission law in 1907 the railroad commission had no Jurisdiction over street railways. and naturally the law did not seek to prevent a commissioner from dealing in securities of concerns with which the commission had nothing to do.
 Then came the law of 1907 putting street railroads under the commissions juris diction. The new law did not repeal any features of the old law enacted In 1879 except such sections as were specific ally mentioned It left untouched the prohibition against railroad commits soiner dealing In railroad bonds and stocks and 1t also left the section except ing street railroads from this and other provisions. If the legislature had thought about it, no doubt it would have forbid den transactions in street railway securi- ties on the part of commissioners when 1t put this class of corporations under the commissions jurisdiction. But the legislature failed to do this and the law appears to be on Chairman McLendon's side in the event he did own the s25, 900 Athens street railroad bonds, as alleged. If the legislature takes that view of the matter 1t will have to fall back on Gov ernor Smiths message dealing with the political aspects of the case or fall back upon some other excuse in the event It wants to remove him from office.
 If the law permits a railroad commis- sioner to own or hold street railroad bonds, then the committee is not con- cerned with the other question that has been asked as to whether Chairman Me- Lendon made any profit on the bond deal. nor has that question yet been answered On the ground that he had violated no law, Chairman McLendon might decline to answer it if asked.
 Tbai,u,ap Mol apdop mt baua.rar except for the purpose of the argument, admitted ownership of the Athens bonds. He had specifically stated that he does not admit such ownership but says even if he owned them today he could not be accused of violating any law of the state.
 Considerable interest has been lent the case by the proposal on the part of a member of the committee to summon former Gov. Hoke Smith for the purpose of questioning him with regard to alleged conferences with members of the 1egisla- ture upon the subject of the suspension of Chairman McLendon
 This member of the committee says certain members of the legislature have told him they attended such conferences with the former governor and the pur pose of them seemed to be to bring all possible influence to bear against the retention of McLendon.
 "If there have been any such confer ences," said this member, well-known seator, T think we ought to know 1t. The members of the legislature stand in practically the same capacity as jurors, and do not think there should be any discussion of the case with them by any who are interested in the outcome of it. :"
 Whether the committee will summon Governor Smith for the purpose stated or not remains to be seen. The senator in question said he would insist upon it, as he thought the facts should be known
 Another interesting aspect of the case grows out of the summoning of President A. F. Daley of the Wrightsville & Ten nille railroad, who will appear before the committee Monday. According to report current at the capitol, Presi- dent Daley Is to be examined upon the report that Judge James K Hines, special attorney for the railroad com mission offered to negotiate the sale of the Wrightsville 6 Tennille bond issue of S250000 for the sum of $1,000.
 So far as is known there Is no law against the commissions special attorney buying or selling bonds of railroads or acting as agent In such transactions. The commission had no attorney at the time the law was passed. But Judge Hines states that he did not make such a proposition, although he admits having talked with President Daley regarding the sale of the bond issue in question.
 It Is the belief of those who have been watching the progress of the McLendon case that some interesting disclosures are yet to be made. And yet those who seemed to feel sure week ago that the legislature would approve Governors Smiths action and remove the chairman are weakening visbly in this opinion. Just why, except that the chairman has shown that dealing in street railroad bonds Is not technically violation of the law Is not apparent
 The Investigating committee ought to get through with it's work next week. There are not more than a dozen wit nesses to be examined at the outside, and practically all of them have been sum moned. Tn that event the report should go in by the latter part of the week or the first of the week following.
 Rate Reduction Wanted.
 The hearing before the railroad com mission upon the application of the city of Columbus and its consumers league, composed of citizens asking a reduction of the rates charged in that city for gas and electricity, which was to have been resumed on July 13, has been postponed to a date to be agreed upon by the attor- neys interested any time after July 27
 This postponement, 1t is understood, grows out of the fact that Chairman Me- Lendon, who has presided at the former hearings in the same case, is now under