Newspaper Page Text
m
!H. imiXEll, Proprietor.
J». F. SAWYER, Editor.
Thtirsdayllomlnii,——January 13,1876
THE GOVERNORS MESSAGE.
.TMENT, 5
ROTA, >
2,1876.)
Executive Department,
State of Georgia
Atlanta, Ga., January 12,
To the General Assembly:
In the discharge of my duty under
tho Constitution, I proceed to inform the
General Assembly of the state of the
Commonwealth, and to recommend to
their consideration tho measures that
are deemed necessary and expedient,
In consequence of tho vacancy in the
office of State Treasurer, which occurred
on the 26th day of November last no
formal report of the operations of the
Treasury during that period of the last
year, ending on the day just named,
has been received for transmission to the
General Assembly. It devolves upon
me, therefore, to present in this com'
munication a full and particular state
ment of the affairs of the Treasury dur
ing the period mentioned.
STATE TREA8URY.
By a Joint Resolution of tho General
Assembly, passed at the last session,
tho Governor was directed to appoint a
“ skillful and competent person to assist
the Treasurer in systematizing the man
ner of book-keeping in his office, to make
out a full and complete registration of
all bouded obligations in the Treasury ; to
ascertain, if possible, all the outstanding
obligations recognized as legal or illegal by
the State, to report to tho General As
sembly a tabulated statement of tho
same/ and to do whatever else was nec
essary “ to protect the interestof tho State
in the conduct of the business of tho of-
fiqe.”
Under the authority of this Resolution,
I appointed James F. Bozeman, who en
tered upon the discharge of his duties on
the 22nd day of March last. Mr. Bozeman
has prepared and submitted a full report
of the results of his investigations, which
is herewith respectfully transmitted for
the information of tho General Assem
bly.
By reference to the tabulated statement
accompanying the report, it will be seen
that the valid bonded debt of tho .State
amounts to 88,005,500. Tho whole
of outstanding bonds of the Stato de
clared null and void by legislative enact
ments is, 82,872,000. The amount ol
bonds classed by Mr. Bozeman us “ in
valid,” is 8473,250. The outstanding
past duo bonds of the Stato amount to
835,500. Of these it has been ascer
tained that 812,500 ure in the possession
of Messrs. E. P. Scott & Co., of New
York; 88,000 in the hands of E. L
Hayes, of the State of Rhode Island, aud
817,000 are either in the possession ol
parties unknown, or have been lost or
destroyed. A full descriptive list of
these bonds has been made and recorded
in a book prepared for the purpose,
Tho report shows that the amount ol
past due bonds legally outstanding is
very small.
Books of record have been
which all tho recognized and valid current
bonds of the State, ns well as all overdue
and paid bonds found in any quarter
whatever have been carefully registered.
A book has also been prepared for the
the registration of such bonds. as shall
be hereafter issued.
Under an Act approved December
11„ 1858 entitled “An Act to provide for
the education of the children of this State,
and to provide a sinking fund.for the
extinguishment of the public debt,” 8350,-
000 of bonds were prepared and placed
in the custody of the Secretary of State.
I would respectfully suggest that the
public interest does not require that these
bonds should be longer kept, and it is
therefore recommended that they bo de
stroyed. I also recommend that the
8286,000 of 7 per ceut. currency bonds,
numbering from 1 to 268, inclusive, now
deposited in tho Treasury as security for
the school fund, bo destroyed. These
bonds were deposited os a pledge for the
replacement of 8242,027 65 of the school
fund taken on the 6th day of August,
1870, by authority of the Legislature,
aud applied to the payment of legisla
tive expenses. It is not probable that
the school fund will bo materially in
creased by this deposits of bonds; they
should therefore be destoyed.
The second section of an Act, entitled
“ An Act to set apart and secure the
school fund,” approved July 28,1870, '
as follows:
“That, from time to time, with
out delay, as definite amounts
areas, ascertained by the Comptroller
General to be duo said fund, lie shall
report tho same to his Excellency, the
Governor, who shall thereupon deposit
with the Treasurer 7- per cent, bonds of
the State to such an amount as will per
fectly secure the school firnd.”
Under this section 150 7 per cent, cur
rency bonds of 81,000 each, dated May 1,
1872, and due July 1,1892, were prepared
for execution in the summer of 1872.
They were uevor executed, however, be
cause it was feared that a compliance with
this law would injure the public credit,
Never having been executed and issued
or eves deposited as directed by the Act
they do not form any portion of the pub
lic debt of the State.
It is also shown by the report that an
amount of 6 per cent, bonds, not exceed
ing 8375,000, was executed, probably in
the year 1864, for the purpose of being
exchanged for the outstanding bonds of
the Central Bank. For some reason these
bonds were never issuod, but romained
in the Treasury vault at MilleJgeville
until November. 1864, when, it is sup
posed, they fell into the bands of the
Federal troops. A rumor exists that
attemps have since been made to put
them in circulation in a Western State.
For the protection of the public ugainst
fraud and imposition, I recommend that
appropriate action be taken declaring
these bonds null and void.
The attention of the General Assem
bly is especially invited to that portion of
Mr. Bozeman’s report whioh refers to the
State bonds redeemed by Henry Clews
& Co., as financial agent of the State.
It is shown that in tho years 1870 and
1871 this agent redeemed bonds of the
State amounting to 8272,250, of which
898,250 were afterwards cancelled. The
remaining 8174,000, together with 8800,-
000 of void currency bonds, and £15,000
of sterling bonds, which had also been
redeemed, were, on the 13th day of De
cember, 1873, sold by the said agent at
public auction,in New York,Ain onoday’s
notice. At the sale, the 8174,000 of
bonds mentioned were nominally bid off
as follows, viz: 8150,000 by J. D. Hayes:
812,500 by the Mi ses Clews, (said to
be sisters of Henry Clews,) and 85,000
by Messrs. Chittenden & Hubbard, The
amount realized from tho sale of these
bonds was 858.625. The sterling bonds,
and the void currency bonds mentioned,
were also disposed of for a trifling sum.
It cannot lie doubted that this pretend
ed sale was a more device resorted to for
the purpose of obtaining a color of right
placing these already redeemed securities
a second time upon the market. After the
snle, they all went back into the control
of Henry Clows it Co., and it is alleged
that, early in spring of 1874, a portion
of the bonds, amounting to 8139,250 was
presenteil at the Treasury of Georgia and
again redeemed by the late Treasurer.
It has not yet been ascertained when
or by whom these bonds were thus pre
sented for payment. The late Treasurer
himself declares his inability to give any
information whatever upon these points.
He represents that no written entry or
memorandum, throwing an ylight upon
the subject was made by him. He further
professes to be entirely unable to recall
any fuct which would eerve as a clue to
the person or persons who presented these
bonds for payment. His possession of
them sgciub to bo the only evidence with
in his knowledge showing that he re
deemed them. In addition to the prin
cipal of the bonds, the late Treasurer
claims that he also paid interest thereon
accruing after maturity, amounting to
824,-781 15. This alleged payment of
interest is not verified byproper vouchers
nor is the Treasurer able to state, from
memory or otherwise, to whom the same
was made,
In uddition to the foregoing, it wonld
seem the late Treasurer also reedeemed a
second timo other bonds of the
State amounting to a large
sum. On the 8th of Jan
uary, 1873, Alton Angier, clerk in the
Treasury, received from the Fourth Na
tional Bank of New York, 821,500 of
unchallenged bonds which matured in
Juue and July, 1872, and in January,
1873. These bonds had been redeemed
by the bank, as agent for the State, by
exchanging there for now 7 per cent
ootids, issued under the authority of
tho Act approved January 18, 1872
Mr. Angier Btates that he brought the
bonds from New York and placed them
in tho vault of tho Treasury. It should
be here remarked, however, that no en
try of the redemption of these bonds
was made on the records of tho Treasu
ry, either by the Treasurer or his clerk.
The then Treasurer went out of office
_hortly after the bonds had been
ceivecf in New York by his clerk, hut
failed, it seems, to take any receipt
showing the delivery of them to his
successoi. The latter denies that the
bonds were turned over to him by
his predecessor, and claims that ho
deemed them in good faith after he
came into office. It is proper to state
that he does not remember from whom
thoy were redeemed, nor does he recall
any circumstance from which the fact
of their redemption by himself can be
ascertained, lie also claims that be
paid interest on these bonds amonti ng
to 81,080,00.
The ascertained amonut of the al
leged payments made by the lateTreas
urer in second redemption of bonds
was £196,612. 15, a particular state
ment of which is presented in the ac
companying documents.
Before passing from this subject, it is
proper to state, thut in the latter part of
the year 1874, the Treasurer obtained
warrants in his favor for the amount of
the alleged payments mentioned. The
payments, themselves, had been made
before the warrants were applied for,
and without the knowledge of the Exe
cutive. It is not intended by this state
ment to imply that the special con
Rent of the Executive is required to au
thorize the Treasurer to ledeem the
principal and interest of tho public
debt. Each outstanding bond, coupon,
also, when properly signed, is, itself, a
lawful warr.-.nt upon the Treasury,
which it is the duty of the Treasurer
to pay upon presentation at maturi
ty.
Paragraph 1 i , section 92 of the last
Revised Code of the State, is in the fol
lowing words
"When he (the Treasurer) pays the
interest or principal of the State debt,
upon a warrant issued in his favor, he
snail deposit in ti.e Executive office
coupons or bonds, on which the pay
merits are made, there to bo marked
paid, and filed away, subject to the or
der of the General Assembly.”
Section 95' of the Code is in the fol
lowing language
“When bonds or coupons are paid
they must be stamped as paid, and
preserved in the Treasurer’s office with
the same cave as the funds of the
State.”
The first section is a codification of
the Act of 1S75. The second was in
troduced by the Cede of 1863, and ma
terially changed the old law. The first
does not require the redeemed bond or
coupon to ho cancelled until after the
same is presented by the Treasurer for
an Executive warrant. The Second re
quires the cancellation to be made at
the time the bond or coupon is paid.
The first, implies that the cancellation
should be made under the direction of
the Governor; the second that it must
bo made by the Teasurer at the time of
payment. The first provides that, after
tlie Executive warrant has issue j, and
the redeemed bonds or coupons have
been marked "paid” or cancelled, they
shall be “filed away” in the Executive
office. The second prescribes that, af
ter payment and cancellation, thev
shall be “preserved in the Treasurers
office, with the same caress the funds
of the State.”
Under the law, as it now stands, the
redeemed bonds and ooupons of the
State. It has been the usage, when the
Treasurer applies for a warrant to cover
the payment of bonds or coupons, for
the Governor to cause such bonds or
coupons to be carefully counted by one
of the Secretaries of the Executive De
partment. When tho count, whioh fre
quently consumes many days, is com
pleted, the vouchers are sealed up in a
package, and a memrundura of the con
tents und amount is indorsed theroon.
A warrant, based upon this memoran
dum, is then issued in favor of the
Treasurer, and the package itself re
mains in the Treasurer’s office, “subject
to the order of the General Assembly.”
Tho warrant thus issued, it will, be
borne in mind, is not intended to giv6
authoiity to draw money out of the
Treasury. Its only effect is to certify
that the Treasurer is entitled to credit
on the books of the Comptroller Gener
al for the amount stated in the warrant.
The allowance of such credit, howev
er, is not intended to conclude the right
of tho State to reopen the transaction
for tho correction of any error that may
have been committed. It is proper
here to observe, that the usage just men
tioned was conformed to, in every re
spect, when the warrants covering tho
improper payments referred to were is
sued. No suspicion had then arisen
that the Treasurer was not entitled to
the whole amount oftlwi credits claimed
by him.
I recommend a careful revision of all
the laws governing the State Treasury,
and that such amendments therof be
made as will guard more effectively
the public interest. The law itself
should require that itemized monthly
reports of the condition and transac
tions of the Treasury be submitted to
the Governor, and the information con
tained in these reports Bhould be, in his
discretion, from time to time, given to
the State upon all the property of the
Treasurer and of his secreties, from the
date of the execution of his bond. Pro
vision should also be made for the is
sue of execution against a defaulting
Treasurer and his sureties, without tho
intervention of suit, as is now allowed
in cases of Tax-Collectors and Recoiv-
ere.
The report of the Treasurer, submit
ted at the last session of tho General
Assembly, showed a balance in the
Treasury on the 1st day of January,
1875, of 81,003,128.88. The amount re
ceived into the Treasury from all
sources from that time to the 25th day
of November, 1875—the date of tho
Treasurer’s removal—was $1,287,277.-
37. This sum, added to tho balance on
hand 1st day of January, 1875,amount
ed to 82,290,406.25. With this gross
amount the Treasurer stood charged at
the time of his removal from office. The
aggregate amount of his disbursements
in the year 1875, as the same appears
on the Comptroller General’s books,
was 8310,401 79. This sum, deducted
from the gross amount with whioh ho
stood charged, left a cash balance
against him at the time of his removal
of 81,480,004.46. The amount of dis
bursements just stated includes only
the payments made under Executive
warrants. In addition to these, the
late Treasurer claims that he is entitled
to a large amount of credits for which
no warrants were issued. To the fol
lowing statement of the items of credit
thus claimed the attention of the Gen
erul Assembly is respectfully invi-
vited:
On the 24th day of June, 1875, the
Treasurer presented his account for in
terest paid upon the public debt in the
year 1874. This account consists of the
following items:
Spurcotit coupons for interact due
October 1,1373 $ 1G.3B0 0J
8 do April t, 1874 47,210 OH
Sdo.Ostubcr 1, H74 44.6)0 00
7 do. oo or before Jiuu.n-y 1. 1875 . 250,700 00
7 do on b imp ilfnid
under Aot January 13 1372 30,007 50
6 her o.ent coup ma or intaroit <lun on
«nd before Fcb'y 1, 1875 ..... 02,145, 00
7 per cent on gold ciuponi duo on or
before Oot. 1, 1874 ..99,207 50
Miecellaneoni coupons for inteioat on
past due bonds, 3 4,207 50
certained. Hisbooks ought to have
furnished the desired information, but
no full account of the sales of bonds
was submitted. Neither his written
nor verbal explanations furnished any
satisfactory evidenceof tbes pecifio
amount of credit to which he was en
titled. In the absence of this info
rmation, it wasmunifestly fimproper to
assume a fixed amouut; and hence,
this whole item was held up for fur
ther investigation.! respectfully sub
mit, herewith, for the information of
the General Assembly, a particular
statement of the coupons so disal
lowed. and of the Treasurer’s written
answers in explanation of the object
ions thereto.
objections urged by the Commissioner
to the annual appropriation for the bud
port of the Atlanta University. F
Aggregating. (532,527 50
Of the ooupons last mentioned, 86,-
645 matured at dates prior to January,
and, in some instances, as far back as
tho year 1861. Therecords in the Treas
urer’s office show that the bonds to
which sotno of these coupons pertained
were paid at dates varying from seven
to sixteen years ago. After the year
1868, tho State paid the interest on her
old bonds, from which fact the pre
sumption arises that these coupons
wore paid prior to January, 1876, the
date of the late Treasurer's accesssion
to office. In many instances tho dates
of maturity are carefully and ingeni
ously clipped, or punched, from these
coupons, in a manner strongly sugges
tive of a doubtful claim. A portion of
them had been twice cancelled, and
the records in the Treasurer’s office in
dicated that many of them had been
paid by a former Treasurer. In many
instances, original entries of payment
on tho records, in the hand writing of a
former Treasurer, arc altered and over
ridden by second enterics in the hand
writing of the late Treasurer. A fur
ther suspicion of tho validity of these
coupons was raised by the admission
of the Treasurer frequently repeated,
that portions of them were not proper
credits, and had probably been gather
cd by his clerk from the sweepings of
the vault, and carlessly placed among
his vouchers.
Objection was mado also to allowing
tho 893.570 of S per cent "coupons
presented, as already stated, with the
Treasurer’s account. These coupons
represented all of the first year’s inter
est upon tho whole issue of 8 per cent
bonds, except 841,000. It was a fact
within my own knowledge, that alarge
amount of these bonds was not dis
posed of until after the first coupon
for the semi-annual interest thereon
had matured. It was hence reasonably
inferred that when they were sold, the
matured coupons pertaining thereto
were cut off and retained by the Treas
urer. No amount of coupons so/:ut off
and detained tvns reported,however. It
waf uot doubted that the Treasurer was
entitled to credit for a lnrgeamrinpt of
this nterest, but no data we.v furnished
REMOVAL OF THE TREASURER—HIS AS
CERTAINED LIABILITIES.
From facts which came to my knowl
edge during the Treasury investigation,
I formed the opinion that the surety
on the official bond of the Treasurer
was insufficient. Thereupon, an Ex
ecutive order was issued and served
upon him personally, on the 15th day
of November last, requiring new bond
and surety to be executed in terms
of the law. With this requisition
t're Treasurer failed to comply, by
reason whereof bis office became va
cant by operation of law, on the 26th
day k of November lust. During the
period allowed for the execution of the
new bond and surety, the receipts into
the Tre.-tsury were deposited in the
Citizens Bank, of Atlanta, and dis
bursements during the same period
were made directly from this bank,
upon Executive warrants only. The
sums so received and disbursed are
1 jarticularly stated in- the report of the
Comptroller General, herewith trans
mitted.
Within the time prescribed by law,
the late Treasurer made a‘Statement of
his accounts and delivered the books
and papers of the Treasury, together
with an amount of money, to his suc
cessor, taking his receipt therefor.
This statement of settlement was duly
recorded in the Comptroller General’s
office; but the receipt taken, as just
stated, for the property of the Treas
ury, has never been presented for re
cord.
By .referring to this statement of set
tlement, a copy of which accompanies
this communication, it appears that
the late Treasurer stood charged at the
time of his removal, with a balance of
81,480,004,46. This statement of bal
ance is verified by the Comptroller
General’s books. The credits claimed
by the late Treasurer in his said state
ment, amouut to 81,644,930,95, from
which it would appear that the State
is indebted to him, on account, in the
sum of 864,926.49. A careful audit
and statement of accounts, made since
his removal from office, shows a net
cash balance against the late Treasurer,
however, of8110,274.84. This balance
it should be here remarked, is exclu
sive of all illegal and improper pay
ments made by him, and includes only
the ascertained amount of cash actuality
remaining in his hands at the date
mentioued. The entire amount for
which he is liable on all accounts, as
shown by the carefully prepared state
inents accompanying this communi
cation, is 8291,969.95.
By a joint resolution passed at the
last session of the General Assembly,
the Governor was directed to have
suits insituated against the Treasurer
and his securities on their several
bonds for the recovery of the amount
appearing to be due from the former
to the State. The institution of these
suits was attended with unavoidable
delay, on account of the great diffi
culty in ascertaining the true condition
of the Treasurer’s accounts. So soon
as the necessary information upon
whioh to predicate suit was obtained,
however, the Attorney General was
instructed to lay the cases before the
proper courts. These instructions have
been oomplied with.
Tne Governor was also instructed,
by a Joint Resolution. | nssed at the
last session, to cause certain bonds and
coupons, in said resolution mentioned,
to be burned, and to report the fact ol
their destruction to the General As
sembly at its present session. Tnis
direction has not been complied with,
for the reason that these bonds aud
coupons will be required as evidence
in the several actions now pending
against the Treasurer and his securities.
A vacancy existed in the office of
State Treasurer from the 25th day of
November last, until the 4th day of
December during this period, the
Comptroller General acted, by Exe
cutive appoint-ment, as State Treasurer.
The amount received by him while so
acting was 8204,287.79. The amount
disbursed during this period was
821,730.61, leaving a balance, to be
turned over tothe new State Treasurer,
of 8182,557.63.
detailed description ofalltte maturing
bonds of the State ; and, also, of the
bonds of the several railroad companies
on which the State is bound by in
dorsement.
RECOMMENDATION REGARDING BONDS.
I would respectfullv call the atten
tion of the General Assembly to the
following extract from my last Annual
message:
“To prevent the injury to the public
interest likely to result from any un
authorized or unlawful negotiation of
our securities, I would suggest that all
the bonds recognized as legal and
binding of tho Si ate, issued during the
late administration, be withdrawn from
circulation, und that oilier bonds, of
similar amount am! of pV-ue-r tenor
and effect, be issued in lien . . ■«
The reasons which induced me to
submit this recommendation at the
last session, still exist, und make.it my
duty here to renew it. For causes
needless to be mentioned, the bonds
issued during the late administration
are not equal in value to our other
public securities. It in manifestly to
the interest of the State that all her
bonded obligations should, as nearly as
practicable, be made of equal value in
the markets of the world. It will bo
remembered that a largo amount of
th8 gold quarterly bonds of the State
in tne hands of Messrs. Clews & Co.
have been declared null and void by
legislative enactment. Coupons of
these bonds, amounting to 82,625.00, it
is alleged, have already been presented
and redeemed during the administra
tion of the lats Treasurer. It has not
been determined whether the same
were redeemed at the Stato Treasury,
or at the Fourth National Bank in
New Yoak. From the close similarity
between these coupons and others per
taining to valid bonds of the samo
issue, there is great danger that repeat
ed frauds will be practiced upon the
Treasury.
I also recommend that bonds of the
State be issued for redimption, by ex
change, of the 83 -unties of the Macon
& Brunstvies. and of the North and
South Railroads, upon which the lia
bility of the State is acknowledged.
Estimates of the probable receipts
aud expenditures for the present fiscal
year are submitted by the Treasurer
and the Comptroller General, to the
consideration of which I respectfully
invite the attention of the General As
sembly.
ATTORNEY GENERAL.
The accompanying report of the At
torney General shows the disposition
made of the official business in his
hands during the last year. The item
ized exhibits attached to the report
contain a statement of tho several
amounts received and paid out, the
cases for and against the State now
pending in the courts, the cases pend
ing against the Western & Atlantic
Railroad, and of the executions issued
by the Comptroller General against the
late officers and agents of this road.
The body of the report contains an ex-
E lanation of the various items ein-
raced in these exhibits.
Particular attention is invited to that
portion of the report which refers to the
sale, under the direction of the Govern
or, of tho house and lot in the city of
Atlanta, formerly owned by Foster
Blodgett. The net proceeds of this
sale amounted to 84,564.50. The two re
maining lots in said city, purchased as
the property of Foster Blodgett, are
still owned by the State. The Attor
ney General recommends that these
lots be sold before the building season
of the present year begins.
BUND AND DEAF ANn DUMB INSTITUTION.
The Academy for the Blind and the
Institution for tho Deaf and Dumb
have been conducted, during the year
with gratifying success, and with due
regard to economy. I recontnend to
the careful consideration of the General
Assembly the suggestions in the reports
herewith submitttd.
LUNATIC ASYLUM.
A most gratifying exhibit of the op.
orations of the Lunatic Asylum during
tho past year, is presented in the accom
panying report or the Board of Trustees.
According to the report, the cost to the
Treasury for maintaining the institu-
tion in the year 1875, was 20 per cent,
less than the average cost for the three
previous years ; while the number of
inmates was 20 per cent, greater than
the average number for the same period.
This dimuniton of expenses is due,
partly to the reduced cost ot subsist
ence and clothing, and materially, to
the judicious economy exercised by the
Steward and by tho Medical staff of the
Asylum.
Attention is called to the necessity
existing at this institution for a con
stant and abundant supply of water.
It iB required for healthin ess and com
fort, as well as for assurance against
loss by firs. Tite Trustees have caused
to be made a reliable survey and esti-
mate, and have ascertained that an am
ple supply can tie had at an expense of
from 815,000 to 818,000. If upon ex
amination, it should be ascertained
that this work is needed and practica
ble, the appropriation asked for by the
Trustees should bo made.
PENITENTIARY.
Tho whole number of convicts re
ceived in toe Penitentiary last year
was three hundred and ninety-one, und
the whole number remaining therein
on tho 31st day of December, 1875, was
nine hundred and twenty-six. The
number of pardons granted during the
year was sixteen; the number of deaths
forty-nine, and of esc ipes, fifty-three-
For the reasons set forth in mv last an
nual message, I renew the recommenda
tion therin made, to the effect, that
there be a thorough reorganization of
the Penitentiary. The adoption of a
permanent system of government for
the institution, should not be delayed
beyond the present session. The vieWB
of the Principal Keeper upon this sub
ject, set forth in the accompanying re
port expressed with great clearness, and
with a force of reasoning whioh entitle?
them to the fullest consideration.
Treasurer is clearly the custodian of tho from which this amount <
APPOTNTMENTOF A NEW TREASURER.
On the 4th day of December last, the
Hon. John W. Renfroe, of Washington
county, was, by Executive authority,
appointed and commissioned State
Treasurer, to act until tho next, meet
ing of the Generally Assembly.
ANNUAL RECEIPTS AND EXPENDITURES.
The whole amount received by the
present Treasurer, from the date of his
appointment until the eloso of the last
fiscal year, was 8782,240.07. The dis
bursements during the same period
were 8270,454.86, leaving a balance in
the Treasury, at the beginning of the
f resent year, of 8511,735.21.
ora more particular .statement in re
gard to tho receipts and expenditures
ot the lost fiscal year, the General As
sembly is respectfully referred to the
report of the Comptroller General.
I commend to the favorable consid
eration of the General Assembly, the
several recommendations of the Comp
troller General, suggesting amendments
of the law exempting certain kindB of !
property from taxation,
The tables accompanying the report
of the Treasurer contain a particular
statement of monthly receipts and ex
penditures in the year 1875 ; and also
a distinct statement of tne publie
debt, with amounts of interest thereon
payable quarterly and semi-annually
is presented. The Treasurer gives a
UNIVERSITY OF GEORGIA.
The accompanying report of the
Trustees of the University shows that
the amount of money received from all
souroeR during the collegiate year, was
88,858.70. The expenditures during
the same period amounted to 838,150.
35. The attention of tho General As
sembly is invited to the very full reports
of the Board of Visitors, and of the
President of the Georgia State College
of Agriculture and the Mechanio Arts,
which will be found among the accom
panying documents. I also submit the
report of tho Trustees of the North
Georgia Agricultural College, located
at DahloDega, showing the application
of the appropriation made for the ben
efit of that institution, at the last ses
sion of the General ABBembly. This
College is under aaspices of the State
University, and receives annually there
from a portion of the interest accruing
from the Land Script fund. Satisfied
that this Institution is managed with
ability and efficiency, I invite atten
tion to the suggestion contained in the
report, and earnestly recommend that
such an appropriation be made, as will
not only meet its present wants, but
will also increase its capacity for future
usefulness.
THE MACON
AND BRUNSWICK
ROAD.
COMMON SCHOOLS.
The report of the State School Com
missioner shows the operations of the
Department of Education during the
past year, and exhibits the growing
efficiency of the Common School sys
tem. Accompanying the report will
bo found an able and exaustlve argu
ment in favor of the system, published
during the last year, in letters addressed
by the Commissioner to the public. I
invite tho attention of the General As
sembly to the suggestions in the report
pointing out the defects in existing
school laws, and indicating the amend
ments necessary to correct the same. I
concur in the views expressed by tho
Commissioner in reference to the pro
priety of establishing normal schools.
Tho lack of competent teachers is, with
out doubt, the greatest drawback to the
efficiency and beneficient operation of
the present school system. I respect
fully suggest that a portion of the fund
annually appropriated for the support
of Common Schools be used for estab
lishing schools for the education of
teachers. These should be at least four
in number, and located at oonvenieni
points in tho State. Under proper reg
ulations, they would furnish annually
a large number of competent teachers,
fitted to take charge of i he Common
Schools.
I respeotfnlly recommend to the con-
By a joint res olution of tho General
Assembly, approved March 6, 1875.
the Governor was directed to sell the
Macon and Brunswick Railroad, eith
er at publie or private sale, on such
terms and f rsuch price in money cr in
bonds of the State or of tho Company,
as he might deom consistent with the
publie interest. In accordance with
this requirement, all the property and
franchises of the Company, after prop
er notico, were publicly sold, in tne ci
ty of Macon, on the first Thursday in
June last. To prevent the sacrifice of
the. property at this sale the same was
purchased for the State at and for the
sum of 81,000,000. A deed of convey
ance for all the property so purchased
has been duly executed and recorded
on the minutes of the Executive De
partment, and also in the proper offices
of the several counties through which
the road pusses. After the purchase
was made, the road was planed under
the management and control of»
Board of Directors, consisting of E. A.
Flowellen, of the county of Upson, and
W. A. Lofton and George 8. Jones, of
the county of Bibb. Among the a.;-
conipanyiug documents is submitted
the report of this Board showing the
operations of the road since the same
war placed under, their management. I
also tran-mit, herewith the ri port ofthe
year 1875 prioi to the date of Paid sale.
The not earnings of tho ro; d duting
last year were very small, in conse-
quenoe of the large expenditure for re
pairs. The track is now in good order,
and a considerable increase in the busi
ness oft e road is reason tidy expec
ted.
In the exercise of the legal powor
rested in them, the Directors have ad
vertised that they will offer the road
for sale on tho 25th day of January,
instant. The law provides that any
contract for the sale or leaie of the road
to be binding on the Stat«; must have
tho approval, in writing, of the Govern
or indorsed theron. This provision ren
ders it especially proper that I should
hero present a brief statement of my
views in reference to the policy which
should be pursued by the State with re
gard to this road.
As a general proposition, it is doubt
less true that the State should not own
or operate railways. This road, how
ever, has already become the property
of the State, and it should not be parted
with, oxceptfor an adequate considera
tion. The Commonwealth has already
been more than repaid the cost of its
construction, in the increased value
which the road has given to property
in the Bee tion of the State through it
passes. A large increaoeed businessover
the line of the road, may be confident
ly expected at no diBtaut day. The
statistics show that nearly one-fifth of
the lumber exported from theoontinent
of North America goes to sea from the
coast of Georgia, and it is reasonable t>
conclude that this proportion will be
largely increased. This road tra
verses, for a great portion of its length,
tho best lumber region on tho conti
nent, and it may be safely assumed that
the transportation of this product
alone will in timo, furnish it with pro
fitable employment. If an adequate
offer for the purchase or lease of the
road should be made, it ought to be -ac
cepted; hut in no event should its pre
sent character, as nn independent thor
oughfare, be changed.
NORTH & SOUTH B. R,
Suptnitted herewith is.the report of
tho Receiver of f l e pr; per y of f*“
sideration of the General Assembly the North & South Railroad Company