Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-03-01
Thousands Contributed By
L. & N. to Newspapers and
Alabama Political Agents


| the books to operating expenses.
These practices of making compaign
contributions and otherwise spending
railroad funds for political purposes
have now been abandoned by the Louis
Vile and Nashville, Mr.. Smith explain
ed, because public opinion on the sub
ject has changed. He promised that
there would be no future cause for
complaint.
Started BY Lea
Investigation into Louisville and
Nashville political expenditures was be-
gun by the interstate commerce COM
mission two years ago under resolu-
ton by former Senator Lea, of Ten
nessee. Examiners found mysterious
entries for which railroad officials de-
clined to account. President Smith re-
fused to answer questions by Joseph
w. Folk, then chief of counsel of the
commission, concerning political expeI
ditures of the railroads on the ground
that the commission had no authority
ton inquire into such matters. The
supreme court upheld the commissions
contention that there can be nothing
private or confidential in the activities
and expenditures of a carrier engaged
in interstate commerce"
In Mr.. Smiths deposition, which was
made February at Louisville, Mr..
Folk asked:
as it the policy of the Louisville and
Nashville Railroad company to- make
political campaign contributions?
ut is not" replied Mr.. Smith, "but
in the past the cimpany occasionally
made campaign contributions to de-
feat a candidate who was running on a
platform of antagonfsm. and injury to
this company. In such cases the inter-
ests of the company seemed. in the
Judgment of it's officers at that time,
to require this as a matter of protec-
tion. These practices, however, while
customary and conventional with cor
porations generally in the past, are con
trary to the public opinion of today and
have been discontinued by our COM
pany.
80 far as this present proceeding is
concerned, l think it proper to add that
we appreciate the public nature of the
service to be renderd by the commits
sion and recognize the duty to cooper
ate in every way hereafter to the end
that there shall be no more cause for
complaint of such contributions"
Among the vouchers the files of the
Louisville and Nashville railroad, found
by the examiners of the interstate COM
merce commission" continued Mr.. Folk,
there appears one, No. 1882, February
company for S20,715.06 for special fees
paid under direction of the president
The examiners were refused all infor-
nation regarding this voucher. Can
you tell us what it was about and what
the voucher was for?'
$4,000 to Newspaper
THAT voucher was for payments to
political agents." was the answer. 1T
was charged to legal expenses. one of
the subdivisions of operating expenses.
Can you tell us why the entry in
reference to this $4,000 voucher was
made in such way as to give no in
formation as to the purpose of this ex-
penditure?" inquired Mr. Folk.
ITO be entirely frank" replied Mr..
Smith, this was because II was not
deemed advisable to disclose to any one,
not even to the company's own subor-
dinate officers and employees, that it
was making political expenditures"
Among the vouchers found by the
accountant for the commission in the
files of the Louisville and Nashville
railroad, appears one numbered 89I,
dated May 5, 1907, in favor of the Ma
tional Bank of Commerce, for $4,000,
issued for certain expenditures author
lied by the president. All further in
formation was refused the accountants.
The books give no further information.
Can you advise us or enlighten us as
to the purpose of this $4,000 voucher"
This voucher was for money eXpend-
ed in aiding a newspaper which was
advocating certain views upin public
questions in which the Louisville and
Nashville Railroad company concurred."
Did the Louisville and Nashville
Railroad company, through you or by
your direction, expend approximately
$34,S0O in Alabama through the John
son-Dallas agency in a campaign
against rate reductions as advocated by
former Governor Conner. of that state?"
YES" admitted Mr.. Smith.
Have you personal knowledge of any
funds of the Louisville and Nashville
Railroad company expended in Alabama
through the Johnson-Dallas agency in
campaign against rate reductions?"
Yes, as shown in my answer to the
previous question"
The inquiry will not be carried fur
Their, it was said today, owing to the
changed status of the Louisville and
Nashville and other railroads under gov
eminent operation, and to the conviction
that the practice of contributing to po-
Htical campaign funds and otherwise in
fuencing executive, legislative and jul
dicial action has been abandoned.
Officials Involved
The report Of the interstate commerce
commission to congress is expected 10
review the testimony brought out in the
public inquiry. indicating that the Louis
willie and Nashville for many years pre-
ceding 1915 played a part in influencing
political elections in southern states by
contributing to campaign funds and dis
tributing passes in wholesale quantities
to legislators, judges and other public
officials.
In Tennessee alone, the inquiry show
ed, many Legislators received $4,000
worth of railway passes in a single year.
The nature of expenditures made for
these purposes always was carefully
concealed in the railroad records They
we're charged to operating expenses and
in some cases were covered by lump
sum vouchers in favor of certain banks
In two cases cited in Mr.. Smiths de-
position, vouchers for $2O,715 and $751;
900 were drawn in favor OF the Columbia
Trust company, respectively, both of
Louisville, one for payment of political
agents and the other for aid of the
newspapers.
The commissions review probably will
cite testimony by which the commits
son's counsel sought to show that the
Louisville and Nashville had acquired
scores of small roads in the south, and
either curtailed their extension or vir-
tually killed them in the interest of the
Louisville and Nashville. Another out