The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1912-01-13

States.
Remember the name-Doan's-a
take no other.
In view Of the facts above stated, your
committee thinks the Meridian cy-
clone proposition should hereafter be
regarded as a closed incident.
The Annotated Notes.
While this matter is not a part of
the executive contingent fund a great
deal of criticism has been INDUCED in
because notes were antedated in Or
der to borrow 100000, to tide the
state government over the summer of
1906, which transaction was authoriz-
ed by an act of the legislature approx
ed April 81, 1906.
Your committee was aware of the
fact that the application for this loan
was made to the Merchants Bank and
Trust Company of the city of Jackson,
Mississippi, but the details were I'M
known to anyone of us until explain
ed by the gentlemanly president of
that institution. Mr.. Anderson stated
in substance that about May list of
that year Governor Vardaman called
on him requesting the loan, which he
said would not be needed before July.
The act authorizing the loan provid-
/
ed rate of interest of five per cent
centum per annum. Mr.. Anderson
declined to make the loan from his
bank at that rate of interest for
money was at that time rated at New
York at five per cent, but he under
took to negotiate from the Equitable
Life Insurance Society the loan, and
instituted at once correspondence
with Mr.. Paul Morton, who was at
that time the president of the Equit-
able. 1t was ascertained that the
money could be obtained provided an
arrangement could be made by which
the cost of transporting the 100000
to Jackson and returning same when
paid to cover the interest for say ten
days, and brokerage commission to
the Merchants Bank. To do this, the
governor was confronted with the al
tentative either to antedate the notes
or call an extraordinary session of the
legislature at cost to the people at
from $4,000 to $50 900. In this emer-
gency, it was agreed that if Mr.. An
derson would endorse the notes they
would be dated May list, although the
money would not be paid until the
first of July.
There was no concealment in this
matter, but was open and above
board. Mr.. Anderson notified Mr..
Morton of this arrangement and that
gentleman expressed some fear that
its legality might be questioned when
the legislature came to make an ap-
preparation for the payment of the
notes and interest. Whereupon, Gov
ernor Vardaman was notified and he
forthwith submitted the question 20
Attorney General Williams who wrote
a favorable opinion which opinion
was approved by all of the members |
OF the supreme court. Mr.. Anderson
mailed this opinion, with its endorse
ments by the court to Mr.. Morton,
and the sum of $2O1, 644.44 (being the
principal loan and accrued interest
from May 1st) was promptly forward
ed to the Merchants Bank and Trust
Company. The bank retained the 81
S4444 to defray the expense of secur-
Ing the loan and its commissions. and
paid the 100000 into the treasury
and took the treasurers' receipt for
same Mr.. Anderson affirms that
Governor vardaman never saw dol
lar Of the money and never received
a cent as compensation for the part
he had in the matter.
During the recent campaign this
transaction was aired in the public
press and threats were made to hold
the Equitable Life responsible for the
s1,e44+44. Judge Day, who Is now