The lease system was adopted in Georgia in 1869, both Democrats and Republicans favoring it. The first year there were 350 convicts to be hired, and the second year the number doubled. An investigation showed that one company paid nothing to the State for the labor of its convicts, and that although the law provided for a chaplain, the State had none; that convicts were worked on Sundays contrary to law, and in some instances whipped to death. The evils of the system became so flagrant that a Senator on the floor of the Senate Chamber declared that the rich and powerful were allowed to go free, while the poor white person and the ignorant Negro were shown no mercy. It was proved that even a governor of the State was himself a lessee, working State convicts for private gain, under a $37,000 bond in force until 1899, although he was the convict's only protection against the wrongs of the lessee.
The ease and facility with which colored persons were sent to the penitentiary kept a goodly supply of prisoners on hand. While it was burdensome to taxpayers to keep them within walls, it was unjust to mechanics to allow them to learn trades; ergo, they were leased out to grade streets, to work on railroads, in mines and the like, where their physical powers might be availed of, but where they could learn nothing, save yes and no, axe and hoe.
By an act passed in 1876, by the legislature, the Marietta and North Georgia Railroad Company was leased 250 convicts for three years, to grade its road where the people were too poor to pay for it. The rest of the convicts the governor was authorized to lease to three penitentiary companies for twenty years for $500,000, to be paid in annual installments of $25,000. In a test case by two of these companies, in the Supreme Court of Georgia it was decided that the lessees acquired a vested right of property in the labor of these convicts, which the legislature could not disregard unless their labor was required by the State, in which case the lessee demanded compensation. The Supreme Court consequently granted an injunction restraining the keeper from delivering said convicts to said railroad company, thereby securing to the lessees a legal right of property in the labor of the convicts till the contract is legally terminated.
In an investigation of 1896, presided over by Governor Atkinson, Capt. Lowe, a lessee, testified:
"We do not think ourselves liable for the conduct of whipping bosses. They are given their commissions by the State, and we insist that they are answerable to the State alone. We cannot direct the whipping of convicts; it must be done by the bosses. If all the convicts were disabled by whipping, we think the State would be liable to us for loss of time, because the whipping bosses are the agents of the State."
Lessee Lowe admitted he was a close corporation, being president, secretary, treasurer, boss and everything else of the company, which held no meetings, had no stock, and declared no dividends.
Attorney-General Terrell held that the convicts were under the care of the lessees, whose duty it was to see that they were treated humanely, citing the order of 1887 by Governor Gordon, to prove that while the whipping bosses were appointed by the governor, they were under the control of the lessees. Governor Atkinson said that he did not dream for a moment that the lessees did not consider it their duty to see that the convicts were properly treated.
Mr. Huff, addressing the legislature, said, that "any attempt at reformation of the present system is an absurdity, a swindle and a fraud. It is a damnable outrage. The lessee contract would not stand fifteen minutes before a petit jury. I could hang any of the lessees before a petit jury in two and a half hours," said he.
One convict testified that in his case the skin came off with every blow inflicted by a soaked strap drawn through sand; that twenty bastard children were in one camp. A female convict testified that during her prison life of fourteen years she had borne seven children. A lessee testified that such irregularities as bastard children would occasionally occur as long as women were guarded by men.
Dr. Felton, addressing the Georgia Legislature, said: