Below is the OCR text representation for this newspapers page.

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