When Gov. Talmadge created the Jekyll Island Authority in 1950, his statement to the press “To create a non-political authority and to remove Jekyll Island from politics.”* sounded sincere. One cannot help but wonder why such a redundant statement was important, certainly when only a few years later the exact opposite occurred.
The Authority does seem to function as a non-political entity, until the island becomes easily accessible in December 1954 with the opening of the drawbridge.
Eager to implement a revenue-generating plan to become self-sustainable, the Authority signs commercial and residential leases at record speed in 1955, primarily in the Historic District. The ocean side is still under development review and will not see any noticeable activity until 1957. Little to no attention is given to who or which entity signs the Lease Agreements, nor does anyone notice that there might be some conflict of interest.
That all changes suddenly in 1955 after the Brunswick News** first reports that of the 104 active lease agreements, at least 13 are in the name of existing or past state legislators. Adding more fuel to the fire is the report that Sen. Dykes not only rents Mistletoe Cottage, but that he is also co-lessee of the Jekyll Island Club Hotel and his company, Bonded Supply & Building Company, rents the stables. That is in addition to his other company, Acme Construction Company, having been awarded the paving contract on the island for most of the perimeter road the previous year.
It is not surprising that the public notices the conflict of interest and seriously questions Gov. Talmadge’s statement back in 1950.
Dust doesn’t settle until the wind stops blowing, and that is surely the case on Jekyll Island. The investigative reporting also results in Sen. Blalock, Chairman of the Authority, being drawn into the controversy.
His company, Blalock Machinery Company, seems to be the favored supplier of parts and components to the Authority. Public records show that out of a total order for machine parts of $127,000, his company fulfilled a total of $101,000.***
The General Assembly and Gov. Griffin have no choice but to make some drastic changes on Jekyll Island. On February 20, 1957, the Brunswick News reports “The Jekyll Island Authority is out, and Dykes is still in.”
The irony here is that the entire Authority Board is replaced with State elected officials. So much for creating a “non-political authority”.
Despite the irony and the apprehension of whether this approach can make a difference, the new authority wastes no time to clean house and before long more conflicts of interest are being discovered. It seems that Sen. Dykes was much more involved in the daily business dealings on the island and his influence was far more reaching.
Besides operating the Jekyll Island Club Hotel, the Bonded Supply & Building Co. and renting Mistletoe Cottage through his Acme Construction Co., he also acted as the sole insurance agent on the island since 1955. Through his partner, Mr. Overstolz, he also represented the Authority as leasing agent for any available lot on the island, primarily the oceanfront lots on Beachview Drive.
It takes another two years for the Authority to finally break the island monopoly, but not until Sen. Dykes is offered $250,000 in exchange for relinquishing his hotel lease in 1959.
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Enjoy and until next time!
*Brunswick News, February 17, 1950.
**Brunswick News, May 25, 1955.
***Total orders for machine parts, purchased by the Authority in 1955.
