Showing posts with label Beechnut Lewis. Show all posts
Showing posts with label Beechnut Lewis. Show all posts

Sunday, June 26, 2022

XXIV

"Pig Iron" Kelley by any other measure would have had no business to do with actually going to Alabama. A Pennsylvania abolitionist and Radical Republican congressman, he detested the Democratic Party and was an impassioned advocate of the freedman. Ostensibly that's why came to Limestone County by the cars from Philadelphia - to observe the negro's condition. He would do so in an extravagant junket trailed by a bootlicking political entourage that lazily made its way south like a caravan of Mughals. As it were, he met with The Major, Bonwit Vrooman, at the Nickajack Hotel to discuss the future of the Freedman's Bureau. Pig Iron wore a tweed frock coat of pedestrian make that contrasted with The Major's fine Italian linen suit and Chinese silk cravat. So it was that the congressman was such a zealous protectionist that he only bought American-made. The niceties were rushed. The congressman was a busy man.

I don't need to tell you that your little cabal here is f****d, Bonwit. The Major was taken aback. Kelley lit a monstrous cigar and exhaled a nimbus of smoke. You know what's going in Washington? Congress is about the defund the Freedman's Bureau. Nobody wants coloreds on the government teat anymore. You've done great work here, Bonwit. But I'm afraid the curtain is closing on your little show. I get the long face. You've got a lot invested here. Well that's why I've come. We're here to lift up the negro. Luckily that can still be a profitable enterprise for the both of us.
The Major was listening. Kelley continued.
 
He explained how millions in railroad bonds were being issued to rebuild the Memphis & Charleston Railroad, which was still damaged from the war. Specifically, only a train ferry then existed linking the M&C between Decatur and Limestone County across the Tennessee River. The original stone pier railroad bridge had been burned down by the Yankees in '62. Construction of the bridge was going to take three years. The bonds themselves were backed by the Alabama state coffers, which cut the Republican governor into the deal, William Hugh Smith. They were solicited out to Northern investors by the Lehman Brothers, Henry and Emanuel, who were Jewish cotton brokers in Montgomery with shady Wall Street connections. The public offering was a stunning success for Radical Republicans who promised vast employment for the tens of thousands of freedman looking for better wages and freedom of movement that railroad work entailed.
 
Governor William "Skedaddle" Smith grew rich off the bond deal. He was Alabama's first of only two Republican governors before Guy Hunt was elected in a landslide over 110 years later. Both of these governors, the other being David "Beechnut" Lewis, had deep connections to the Nickajack Unionism movement during the war. Smith was sneered at as Skedaddle because he fled to Union lines when we couldn't get elected the Confederate Congress. He spent the rest of the war in Huntsville, Ala. recruiting Unionists across the Nickajack into the 1st Alabama Cavalry (US) without doing any actual fighting himself.
 
"Pig Iron" Kelley explained he represented a Consortium of investors - good Party men like yourself, he added. This Consortium owned the management company Huntsville Railroad Corporation, each investor holding a 1% stake in the entity. These investors included bankers, politicians, generals, and industrialists affiliated with the Republican establishment - all good Party men like yourself, he said again. We hold the contract for the new railroad bridge over the Tennessee River at Decatur. We need your labor. And now that the Freedman's Bureau is about to get defunded, you could use the money to keep up the good work you're doing down here. The HRC can give you 20% margin on your labor, but mind you this will be paid all up front.
 
What Pig Iron did not explain was the the HRC was just a post office box at the Huntsville Depot. A check for $4,000,000 (less "loan costs") payable to the Memphis & Charleston was written out by Lehman Brothers which had underwritten the bond sale. The check arrived at the Eastern Division headquarters of the Memphis & Charleston Railroad, which had only one employee at Huntsville Depot and whose only purpose was to deposit the check and subsequently draw a cashier's check for $4,000,000 on the bridge contract, payable to the HRC.

An accountant from Huntsville named Asher Applebaum arrived later to collect the check, who was the bookkeeper for HRC, which had no employees at all. He deposited the check at the National Bank of Huntsville, which was a great temple of money overlooking the Big Spring. Then at the desk of the bank president spent all $4,000,000 within the space of half an hour. Cashier checks were drafted for stockholder dividends and overbid subcontracts controlled by Consortium interests. When this was done, he closed the bank account and prepared financial statements showing a 15% profit margin for the investors, who had already cashed their dividend checks. Then the Consortium took the company public and dumped the stock on the back of a bogus prospectus. The deal was so clean that everyone from the governor on down thought to try it again to build the railroad from Chattanooga to Birmingham. And so later they did, nearly bankrupting the state.
 
The Major always thought himself a good Party man. What if they cut him in on the Huntsville Railroad Corporation someday? So he took the deal and four months later the Democrats indeed shut down the spigots from Washington. But since the Freedman's Bureau still technically existed, it had only one office left open in the waning years of existence, which was on Pryor Street in Athens. Asher Applebaum was hired to manage its manage its finances, for it held several subcontracts for which The Major held interests. And the labor was paid fairly, as implored by Pig Iron Kelley, who indeed cared for the freedman's condition, as did The Major. Strangetown continued to boom even as the Freedman's Bureau withered on the vine of history.


Saturday, June 25, 2022

XXIII

A delegation of Greeks waited patiently at the Athens Depot as the two o' clock train from Corinth arrived twenty minutes late. They included Dr. Licinius Prentiss, Luke Pryor and Branse Havelock. A telegraph from that penultimate Greek, George Smith Houston, had summoned them. He was by then arriving via a long circuitous route. It took him from Montgomery, then west into and then north through Mississippi, and finally east from Corinth. It was an excruciating voyage in the heat of August, but it was the only way. As of yet, there was no railroad linking the Nickajack to the rest of the state. But all that was about to change. The train hove into the station chuffing steam from its brakes. A rather hefty man stepped off wearing a pair of polished balmorals and an ashen broadcloth suit. Most of the hair he had was hanging bosky from his chin. For the figure he cut, he was surprisingly deft on his feet.
 
George "Bourbon Smith" Houston was a tower of Alabama politics even before the war. He had been a professional Democrat politician since the 30's. He had voted for both the Mexican War and for secession, then sat out both wars at home.. He purchased a substitute to avoid conscription, and then brokered the sale of cotton to the Union Army when the Yankees occupied Limestone County. He and the Greeks grew fat off this illicit trade deep in heart of the Confederacy, which increasingly demanded corn just to feed its citizens. Just then he had been milling about the halls of power in Montgomery. He had been working over his well-aged system of patronage, which he cynically called "The Swamp." Principally, he had been whipping up furor against the Governor of Alabama, David P. Lewis, who was a Republican from Huntsville and nicknamed "Beechnut."
 
He looked for supplicants and found them grouped together near the platform, Dr. Prentiss foremost. The party chairman for the County stepped forward very formally to greet his master. George Houston brushed by him as though heading to the horizon, and spoke without greeting or shaking hands. The other Greeks fell in behind.

What the hell is going on here, Licinius, George blurted? I leave for a year in Montgomery trying to drum up support for my gubernatorial campaign, and then I find out we elect a black sheriff in my own backyard!?

Actually, he's white. But yes, he's a Republican. Its Bill Marmaduke.

Bourbon Smith sighed a breathe of relief. Thanks god he's white. But Bill Marmaduke? Goddam, he's popular. A real war hero. He could be a worse threat than Beechnut Lewis. You know what this means? I'm in danger of losing this County at the polls.
 
Indeed we are, said Dr. Prentiss. Strangetown is filling with negroes and white trash, and the Republicans are registering them like a machine. We successfully collapsed the voting precincts to a single registration point here in Athens, but they are just bussing them in from the rural precincts.
 
It was true. A black freeman and carpetbagger named Bartholomew "Barry" Hogan had assumed chairmanship of the Limestone County Republican Party. His credentials were shady, having arrived from Illinois. He was part of the powerful Republican establishment of that state, He was notable for being an influential colored delegate to the 1860 Republican Convention in Chicago that nominated Mr. Lincoln. He arrived in Strangetown and established a headquarters in a front on Strange Street. He got to work by festooning wagons with patriotic bunting. Then he would range them across the county, promising sweets and liquor to bring the formerly disenfranchised into Athens for registration. As if to reinforce the public trust, he passed out slips of paper inscribed with the Fifteenth Amendment that most of the freedman and poor whites couldn't even read.
 
Dr. Prentiss recited figures. Republicans turned out in record numbers. The Democrats got clobbered at the polls. When he had finished, he looked pale. Bourbon Smith had ceased walking and was glaring into Dr. Prentiss's face.
 
You’re the Chairman of the Democratic Party of Limestone County. I don't think you appreciate, Licinius, how critical the Nickajack has become to the future of Alabama. It has come down to me and a Huntsville scalawag - a Whig. The political compass of this state has swung North, and we are caught in this critical moment, Licinius. Do we hold onto what we have left of our way of life, or do we fold to a rabble of n*****s and illiterate crackers? Get your ship in order. Figure something out. Put your brains together, Licinius. I left you in charge for a reason!
 
The Klan sir?
 
Out of the question, barked Bourbon Smith. Jimmy Sloss is already on my ass about keeping them off the railroad he's building across the mountains from Decatur. He needs the colored labor. This is bigger than you think, Licinius. He's one of my largest donors, and he's in competition to get to Birmingham first with his railroad before the Yankees do.
 
That was also true. A Republican congressman from Pennsylvania named William "Pig Iron" Kelley was part of a cabal of Radical Republican investors who were racing Jimmy Sloss's railroad to Birmingham. Their railroad was being built from Chattanooga down the Wills Valley, which was flanked by Sand and Lookout Mountains. The A&C Railroad was backed by millions in government-backed bonds approved by the last Republican governor of Alabama, William Hugh Smith, which were corruptly solicited in excess of legal limits.
 
Sir, interjected Branse, who stepped in beside Dr. Prentiss, who was sweating visibly now. I think I may have an idea.
 
Smith warmed. Branse, I knew your father. He was a good friend of mine. He was definitely committed to the Cause. Some say more, he added cryptically. Branse nodded.
 
Mr. Houston, I don't think we need to sidestep the Klan just offhandedly. They may serve one more purpose for us yet.
 
The last thing we need is for President Grant to send in the army again to quell violence at the polls. The Radical Republicans are already lashing out at us for suppressing the vote with these registration ordinances. It's not ideal, but it is all we have. I know you'll work something out, Licinius, he said turning to the doctor again.
 
Sir, if I may, pressed Branse. You may leave it to me to handle the Klan when the time is right. We'll clean up your backyard before election.

LVI.

The rebel guerillas decamped before dawn as the stars grew faint in the lightening firmament and they moved east down the Cumberland Mountai...