The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1918-02-27

Official Record of Activity
of Railroad COMPANY in
Political Matters.
$4,000 USED IN
1914 ALA. FIGHT
Large Sums in Campaign
Against Rate Reductions
Advocated by Conner.

Washington, Feb 26.-An official
record of how the Louisville and Nash :
willie Railway spent many thousands
of dollars in political activity and
sup porting newspapers IL southern
states between 1907 and 1914 was made
public today by the interstate com
mission
The disclosures were based on an
affidavit recently nned by Milton II.
Smith, president OF the road, answer
questions to which he had refused re-
plies during the Interstate commerce
commission inquiry in-Nay, 1915, AMI
TO secure which the commission oh
tanned from the supreme court last
November an order requiring Mr..
Smith to give answer. This afhdaVit
has now been made public.
Mr.. Smith explained that $4,000
as spent for political campaign pur-
poses in Alabama in 1914, but none
that state in 1912 or 1913. The ex-
pense was charged to operations and
great effort was made. in the raiiwas
records to. obscure the purpose of the
payments even from employees aud
minor officials.
In February, 1910, s2o.715 was paid
20 political agents, but Mr.. Smith DID
not specify the state in which the
agents operated. * voucher. for this
amount was drawn In favor OF the
Columbia Trust Company. Previously
interstate commerce commissions ex-
aminers had been refused all infor-
nation concerning the nature OF this
payment.
On May 6, 1907, voucher for $4,000
was issued in favor of the National
Bank of Commerce and Mr.. Smith de-
clared in his affidavit this was for the
aid of a newspaper, which was ad-
vocating certain views upon publ
Questions in which the Louisville and
Railroad Company con-
Cured"
Nr smith declared the L. & y
spent about $4,000 in Alabama through
the Johnson Dallas agency IN earn
paien against rate reductions as al
yocated by Former Governor Bl 3.
Conner Of that state. He did not speci
" the dates Of the expenditures. Mt
smith declared that he knew of no
expenditures in Tennessee in 1915 for
politica1 campaign purposes charged
r., tho books 10 operating expenses.
These practices of making camaig.
and otherwise spending
railroad funds for political purposes
have now been abandoned by the J..
& Y. Mr.. smith explained because
pubIic opinion on the subject has
changed. He promised there would be
no future cause for complaint.
The investigation into L. & y. poht- |
cal expenditures was begun two years
ago by request Of congress under a |
resolution by Former Senator Lea, %
Previously examiners Of
the commission in going over books ot
The railroad had found many apparent |
w mysterious entries for which rail-
-oaa officials declined to account. This {
-ro-npted much agitation which re- |
suited in the congressional request for |
/, thorough examination.
During this inquiry Mr.. Smith re-
used To answer a number OF questions |
sked bv Joseph w. Folk, then chief |
counsel of the commission, concerning |
political expenditures of the railroads
He defended his acticn on the ground |
hat the commission had no authority
q INQUIRE into such financial matters
md maintained that its authority was
limited to rates, regulations and prac-
ices The commission then Institutes I
nandamus proceedings in the District
f Columbia courts and its contentious
we're sustained The railroad appealed /