Atlanta And Its Builders, Vol. 2 - A Comprehensive History Of The Gate City Of The South. Thomas H. Martin
completed. But in this year a great monetary crisis befell the country, and the financial panic swept like a whirlwind over Atlanta. Building stopped, the wheels of progress were clogged, the prices of real estate tumbled tremendously, and business was prostrated. Of course, this state of things caused general damage, and all suffered; but to the great credit of Atlanta, and of the sound foundation of its business prosperity, few large houses were seriously affected, and though the crash of great houses and banks was resounding in all cities of the land, not a single bank in Atlanta fell, though there was a run on all of them. It is true that Mr. James' bank suspended, but the suspension was only temporary. With his characteristic judgment and decision, he threw a hundred thousand dollars of his real estate immediately upon the market, which, though sold under the auctioneer's hammer at a great sacrifice, furnished him ready money, and tended to restore to him public confidence. In less than sixty days his bank was all right again. Thus no bank in Atlanta was crushed. Business, however, was prostrate; but a people whom fire and sword, and consequently monetary bankruptcy, could not destroy, would not be kept down by a financial panic and its effects, however disastrous. Progress soon began to manifest itself; indeed, as always in the career of Atlanta, there was not an absolute halt in its onward march. St. Luke's Episcopal Church and a German Lutheran Church were added to its houses of worship, and a Cumberland Presbyterian Church was organized.
"Progress soon again became quite noticeable, new hotels, factories, banks, and other enterprises appearing. Immense fires only made way for nobler structures, and so continued the march of improvement.
"There is a tendency in all cities to create public debt, especially where there are few or no charter restrictions upon the municipal authorities. This arises in a great part from the importunities of the citizens themselves for subscription to this or that enterprise on account of alleged public interest or utility, and in some measure from the incompetency and venality of officials. The citizens of Atlanta are wide-awake upon all matters touching the welfare of the city, and also incited by the monetary stringency and steady decline of values, had detected the accumulation of the city indebtedness, and becoming alarmed in 1873. set about devising means to save the city from future bankruptcy. The police system was also a source of great complaint and dissatisfaction on several grounds. Under the existing system a high state of efficiency and discipline were impracticable; and the police force was a powerful element in every municipal election, exercising an undue influence over the result. The public interest sternly demanded a change; the policemen must be taken out of municipal politics and be made more efficient. A petition signed by J. H. Callaway, J. A. Hayden, Amos Fox, and some one hundred and fifty other citizens, was read before the city council November 1, 1873, alleging that the charter, though often amended, had never been thoroughly revised, and urging that this was greatly needed and should be done to insure future prosperity. This petition was referred to a special committee, who reported on the following Friday night, November 8th, recommending the appointment of forty-nine citizens, seven from each of the seven wards. The report was unanimously adopted, and "the committee of forty-nine" was appointed, including such men as L. P. Grant, G. W. Adair, George Hillyer, N. L. Angier, J. P. Logan, L. J. Gartrell, John H. Flynn, John L. Hopkins, N. J. Hammond, John H. James, A. Murphy, W. G. Gramling, L. E. Bleckley, J. A. Richardson, W. B. Cox and John T. Grant. On the night of November the 18th, this committee met at the Recorder's room. L. E. Bleckley was made chairman, and one from each ward was appointed to report subjects to be referred to sub-committees of three each. The subjects reported were City Government, Finance, Elections. Sanitary Regulations, Police, Water Works, Public Schools, and Streets, and they were referred to separate sub-committees. On November 26th, a committee was appointed to consolidate the various sub-committee reports. The consolidated report was submitted and adopted. The ensuing Legislature passed the charter thus revised, and it was approved by the Governor February 28, 1874.
"No event of more vital consequence ever occurred in the governmental policy of Atlanta. No municipal reform was ever more thorough, as will be seen at a glance at some of the new features of the charter and their operation. In the first place, it puts a stop to the creation of debt. Section 32 of the charter says that no bonds shall be hereafter issued, except by an affirmative two-third vote of two successive councils, the approval of the Mayor and a majority vote of the citizens in a popular election.
"In all appropriations of money for the increase of indebtedness or expenditure of revenue, except for salaries, the councilmen and aldermen must vote separately and agree. For this purpose, the general council was constituted of three aldermen for the city at large, and two councilmen from each ward; the aldermen and councilmen separating into two bodies in all matters of finance. It is also stipulated that the annual expense shall be so restricted as not to exceed the annual income, after certain payments on the public debt, and that no General Council shall borrow money, save in the management of existing indebtedness. As an additional safeguard, a clause was inserted enacting the personal liability of mayor, councilmen and aldermen for the refunding of all amounts appropriated in violation of the charter, and it is made the imperative duty of the clerk of council to institute recovery suits.
"Advancing a step further, provision is made for the constant annual reduction of the public debt by setting apart one fourth of the tax on real estate for the payment of the principal of floating liabilities. Still another step was taken in this direction. While increased indebtedness is prevented and reduction secure, the business interests of the city must be protected from burdensome taxation. To do this, taxation is limited to one and a half per cent.
"In the department of official conduct, and the proper administration of the laws, the regulations of the charter are equally effective. Official male conduct, to the financial detriment of the city, is made impossible. The greatest reform, however, under this head, was the entire change of the police system, and its divorcement from the General Council. A separate board, called Police Commissioners, consisting of five citizens, elected by a two-thirds vote of the General Council, was instituted, and into their sole control was confided the election and government of the police force. G. T. Dodd. a gentleman who commenced life in Atlanta in 1853 as a clerk, but is today recognized as one of our greatest merchants and most public spirited citizens, and a man of unimpeachable integrity, became chairman of the Board, and the public force rapidly improved in efficiency under the new order of things.
"It is unnecessary to note any other changes wrought by the charter; these are sufficient to show that it is a masterpiece of municipal reform, and secures the people, absolutely, against municipal bankruptcy and burdensome taxation, and guarantees a faithful and vigorous administration of the laws, for the protection of their lives, liberties and property. The result has been electrical; the city's credit has bounded upward, and strange as it may seem, in this day of general bankruptcy of American cities, Atlanta eight per cent, bonds command a premium. Councilman J. W. English not only borrows money on account of the floating indebtedness at seven per cent, interest, but is offered largely more than he needs. It is very probable that, under his able management, the rate of interest will be still further reduced, and an additional saving to the city of several thousand dollars effected. Upon the score of administration, Atlanta never had better city officials, and the efficiency and general character of its police force have a national repute, justly eliciting the pride of its citizens.
"It is true that the severe restrictions of the charter will not permit any very general system of improvements at present, but any inconvenience from this cause will be cheerfully borne, in view of the steady reduction of the public debt, and the new stimulus infused into every factor of the city's prosperity, and the increased values imparted to its property. It must be remembered, too, that the gradual reduction of the interest account, together with the enlarged income from taxation will, in a few years, produce an excess, which will insure the most liberal appropriations for every object countenanced by the charter. The first mayor elected under its operation was Judge C. C. Hammock, whose administration was one of the best and most popular Atlanta ever enjoyed. In his official address, at retirement, he uttered this strong language:
" 'The most signal of your achievements has been the successful application, and faithful execution, of the provisions of the new city charter. Under its operation the city has experienced what may aptly be termed a new birth — such has been the change wrought in her financial standing, and her prospects for future growth and prosperity. Previous to