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THE CONSTITUTIONALIST
FRIDAY, JANUARY 15, 1875.
Executive Department of Georgia, , )
Atlanta, Ga.. January 13, 1875. )
To the General Assembly:
In the discharge of the duty imposed
upon me by the constitution, I have
the honor to lay before the General
Assembly the information deemed
proper in reference to the condition of
the Commonwealth, and to recommend
to their consideration such measures as
are deemed necessary and expedient.
Most prominent among the subjects
claiming the attention of the General
Assembly, is the financial condition of
the State.
The balance in the Treasury on the
Ist day of January, 1874, was $922,-
556.25, and the amount received during
the last fiscal year was $1,895,116.86;
making the aggregate amount charged
against the Tr easurer last year, $2,817,-
723.11. The disbursements for the
same period amounted to $1,814,594.23,
which, deducted from the amount re
ceived, leaves a balance of $1,003,128.88
on hand January 1,1875. The particu
lar sources from which the receipts
were derived, and the various purposes
for which the disbursements were made,
are stated in the Comptroller General’s
report, and need not be specially set
forth in this communication.
The Legislature, at the session of
1873, made an appropriation to pay the
claim of Russell Sage. This claim
amounted to $423,125, and no means
having been specially provided for its
payment, it was satisfied out of the
ordinary revenues which came into the
Treasury during that year. This crea
ted a deficiency last year which could
not be supplied otherwise than by re
sorting to the very doubtful expedient
of short temporary loans. As an evi
dence of the improved condition of the
public credit, it may here be stated,
however, that no difficulty was found
in raising the required amount, at a
reasonable rate of interest.
The steady growth in the wealth of
the State, as shown by the Comptroller
General’s report, cannot fail to be very
gratifying to the people. The reported
increase in the value of taxable prop
erty for the year 1874, is more than
$30,000,000 over and above the value
reported for the previous year. This
increase was produced, in part, by the
repeal of the law exempting a certain
amount of property from taxation. But
after making full allowance for the re
peal of this exemption, it appears that
the net increase in the value of taxable
property returned was $13,709,376. I
may here be allowed to note for com
mendation, the thoroughness and ac
curacy exhibited by the Comptroller
General in preparing the different tables
contained in this report.
I unite with the Comptroller General
in recommending that his office be re
lieved of the duty of consolidating and
taking care of the agricultural returns.
The reports of Tax Receivers to his
office, in my judgment, furnish the
most economical and reliable channels
for the collection of agricultural itatis
tics. The law should b'e so amended,
however, as to secure with reasonable
certainty aii the information desired,
and to this end, Tax Receivers should
be obliged, as a part of their official
duty,, to collect and return the required
statistics.
Other amendments of the tax laws
are recommended by the Comptroller
General, which are respectfully refer
red to the General Assembly for con
sideration.
According to the statement presented
by the Treasurer, the funded debt of
the State, not yet matured, amounted,
on the first day of January, 1875, to
$8,105,500. The principal and interest
due thereon the present year amounts
to $670,385. Included in this is the first
instalment of SIOO,OOO of the 8 per
cent, bonds issued under the authority
of the act approved February 19, 1873.
The Treasurer states that in addition to
the foregoing, there is also outstanding
$269,500, past due coupons, which, to
gether with the unpaid interest there
on, amounts to $323,400. The report
contains a full and particular descript
ive list of these last mentioned bonds.
It is suggested by the Treasurer that a
large amount of the same was paid by
a former agent of the State, and not re
turned to the Treasury for cancellation.
It should here be stated that the fail
ure upon the part of this agent to
make such return has produced se
rious inconvenience and probably loss
to the Treasury.
Having reason to believe that Messrs.
Henry Clews & Cos., the agent just re
ferred to, were converting to their own
use paid up bonds of the State, and de
siring to relieve the Treasury from all
complications growing out of their
transactions as agent, I directed the
Attorney General to proceed to New
York and obtain, if possible, a settle
ment of their account with the State.
Upon his return, this officer reported
that he found it impossible to effect a
satisfactory settlement of the account;
that Mr. Clews positively refused to
permit any examination of his books
and vouchers, unless the aceount which
he had theretofore rendered against
the State were first paid. It hardly
need be stated that such an unreason
able condition could not be complied
with. The chief objection to the ac
count rendered was, that many of its
items were not supported by proper
vouchers. The examination of these
vouchers, if produced, would necessa
rily have involved an inspection of the
books and papers of the agent. A set
tlement having been thus refused, the
Attorney General requested to be fur
nished with information in reference to
the bonds which had gone into the
possession of Messrs. Clews & Cos., and
which had not been returned by them
to the Treasury. This request was
also refused. It is rumored that this
firm has recently been adjudged bank
rupt, and it is now hoped that satis
factory information in reference to the
State securities in its possession may
be obtained at no distant day.
By reference to the report of the
Bond Committee, made to the Legisla
ture at the Summer session of 1872, it
wifi be seen that, in addition to the
bonds declared void by the act ap
(Ebc lailn
proved August 23,1872, Henry Clews &
Cos. also hold SBOO,OOO of currency
bonds, issued under the act of August,
1870. There is reason to believe that,
notwithstanding the action of the Leg
islature declaring these bonds invalid,
this agent has transferred, or in some
other way* converted the same to his
own use. To prevent the injury to the
public interest likely to result from
any unauthorized or unlawful negotia
tion of our securities, I would suggest
that all the bonds recognized to be le
gal and binding on the State, issued
during the late administration, be
withdrawn from circulation, and that
other bonds of similar amount and of
proper tenor and effect be issned in
lieu thereof. This action would, in my
judgment, be beneficial to the public
credit, and would effectually protect
the Treasury against imposition and
fraud.
There being no reason to believe that
the railway companies, whose property
has been taken possession of by the
State for non-payment of interest, will
be able to make any arrangement to
resume possession of their property, I
respectfully suggest the propriety of
authorizing the issue of an amount of
State bonds sufficient to redeem the
bonds of the companies upon which the
State is liable. These companies are
insolvent, and the holders of their en
dorsed bonds will have to look to the
State alone for payment. It is not
probable, therefore, that the bond
holders would hesitate to exchange
upon reasonable terms, the securities
held by them for State bonds. In set
tling the details of such an arrange
ment, a material benefit might be se
cured for the State without doing any
injustice whatever to the holders of
the bonds. Believing that the interest
of the Commonwealth would be sub
served thereby, I respectfully recom
mend the adoption of a measure giv
ing effect to the foregoing suggestion.
The following estimate of the Treas
urer, showing the probable receipts
and disbursements at the Treasury for
the fiscal year ending December 31,
1875, with such alterations as, in my
judgment, the public interest demands,
is respectfully submitted :
RECEIPTS.
Cash balance in
Treasury Decem
ber 31, 1874 $1,003,128 88
From general tax of
1' 3 ? 5 900,000 00
From general tax of
1874.... 3,00,000 00
Rental of W. & A.
_ R- R 300,000 00
Insurance tax 1875.. 20,000 00
Railroad tax 1875 10,000 00
Express Company
teWTB 500 00
Dividends 2,000 00
Taxes of former
years unpaid 10,000 00
Hire of convicts— 10,000 00
From all other
souices 30,000 00
$2,585,628 88
DISBURSEMENTS.
Civil establishment.sloo,ooo 00
Legislative pay-roll. 100,000 00
Lunatic Asylum — 115,000 00
Pay of Chaplain and
Trustees 2,000 00
Deaf and Dumb
Asylum. 13,500 00
Academy for the
Blind 11,000 00
University of Geor
gia 8,000 00
Printing fund 20,000 00
Contingent fund 20,000 00
Public buildings ... 20,000 00
Executive Depart
ment 10,000 00
Super intendent
Public Works 2,000 00
Clerk Wild Land
Office 1,200 00
Vaccine Agent 300 00
Educational fund... 150,000 00
School Commission
er and Clerk 3,700 00
Supreme Court Re
ports 3,500 00
Solicitor General
costs in Supreme
Court 2,000 00
Old debts W.& A.
R.R 25,000 00
Public debt and in
terest due in 1875. 670,383 00
Principal Keeper
Penitentiary 2,000 00
Agricultural De
ment 10,000 00
Geological Survey. 10,000 00
All special appro
priations 200,000 00—51,409,583 00
Balance in Treasury
January 1,1875... - $1,086,045 88
In the foregoing table I have made
no estimate for the Atlanta University.
For reasons briefly given in another
part of this communication, no appro
priation ought, in my judgment, to be
made for that institution.
MACON AND BRUNSWICK RAILROAD.
Accompanying this communication
is a statement made up from the
monthly reports of the Receiver of the
Macon & Brunswick Railroad, show
ing the receipts and disbursements on
account of the property in his hands,
since the same was taken possession of
in behalf of the State. For reasons
set forth in my last annual message to
the General Assembly, it was found
necessary, on taking possession of the
road, to continue to receive as money the
change-bills theretofore issued by the
company for convenience in its busi
ness. All the net earnings of the road
since its seizure have been applied in
the redemption of these bills. As fact
as redeemed, the bills have been de
posited In the State Treasury, where
they remain subject to examination by
the General Assembly. Some time be
fore the road passed into the hands of
the State, the company executed a deed
conveying considerable property to
certain trustees, to be used iu redeem
ing the bills, and this property is now
in the possession of the Receiver, and
when sold, the proceeds thereof should
be used to reimburse the State for the
amount paid out in their redemption.
The amount of these bills still in circu
lation, according to the best informa
tion of the Receiver, is $16,749,50.
Having been led to believe that an
arrangement might be made, whereby
the compony would be enabled to pay
the accrued interest on its bonds en
dorsed by the State and resume pos
session of the road, and entertaining
doubts whether the property could be
disposed of for its value, I deferred
any action looking to a sale of the
same until the month of September
last. Having then become satisfied
that the company would not pay this
past due interest, and believing that it
would probably be for the interest of
the State to divest the company of its
title to the property, an order was is
sued directing the receiver to advertise
a sale of the road and its equipment on
the first Tuesday in December last. Be
fore the day of sale arrived, however,
I felt it to be my duty, after an exami
nation of the records of the company,
to withdraw the property from the mar
ket, and to submit the question of the
proper disposition to be made of the
same to the General Assembly. In ex
planation of this action on my part, the
following statement is respectfully sub
mitted :
The Legislature, at the adjourned
session of 1872, adopted a joint resolu
tion declaring “ that the State’s guar
anty placed on the bonds of the Macon
and Brunswick Railroad Company Is
binding on the State.” At the time of
the adoption of this resolution, the
Legislature had before it what appear
ed to be sufficient evidence of the va
lidity and regularity of these indorse
ments, and especially of the indorse
ments made under the act approved
December 3d, 1866. These indorse
ments received further recognition by
the Legislature in the annual appropri
ation act of 1874 ; and no doubt as to
the validity of the last named indorse
ments arose in my mind, until the re
cent examination of the company’s
records referred to above. A brief re
view of the history of the company
just here, may aid tho General Assem
bly iu solving the grave questions here
presented.
In the President’s report, submitted
to a meeting of the stockholders of the
company, held the Ist day of February,
1866, that officer used the following
language:
“ From the necessity of keeping the
accounts for the last four years in the
depreciated currency of the Confeder
ate States, the balance sheets of! the
Treasurer present an exaggerated
statement of the cost of the road,
through its various items of expendi
ture. Assuming that we are able to
liquidate the bonds and outstanding
liabilities during the coming year with
the assets in hand, which, I think can
be done, or nearly so, having thus no
debts, the amount of stock paid in
should give the cost of the road. This
will simplify the matter very much.
The stock list gives not quite SBOO,OOO
in round numbers. We have, then, for
this sum of SBOO,OOO, a first-class road,
50 miles long, equipped and running,
together with 70 miles additional ready
for the iron rails, clear of incumbrance
or debt of any description. Deducting
$200,000 as cost of the seventy miles of
grading, we have $12,000 per mile as
the average cost of the 50 miles of run
ning road—an extremely low figure for
(this) description of road.”
From the foregoing statement of the
President of the company, it appears
that, so early as February, 1866, as
much as 50 miles of the road was fully
completed and in running order, at a
cost of $12,000 per mile, and that, in
addition thereto, 70 miles had been
graded at a cost of $200,000, and was
ready for the superstructure, and that
the property of the company was clear
of incumbrance or debt of any descrip
tion. So far, it appears that the road
had been constructed by individual en
terprise alone.
The act of 1866, already referred to,
granted the aid of the State for tho
completion of the road on the follow
ing terms: That is to say, the Govern
or should place the indorsements of
the State on the bonds of the company
to be issued, to the amount of 10,000
per mile for the portion of the road
then already completed, and the like
amount per mile for every additional
ten miles, as the same was completed
and put in running order, upon condi
tion, however, that before any such in
dorsements were made, the Governor
should be satisfied that as much of the
road as the said indorsements shall be
applied for ” -had been really finished
and equipped, and that the road was
free from every incumbrance that might
endanger the security of the State.
On the day after the approval of the
act just referred to, a series of resolu
tions explanatory of its provisions was
adopted, by which, among other things,
it was provided that the bonds of the
company, to be indorsed by the State,
should not exceed $1,000,009, until an
amount of capital equal to the addi
tional indorsement, was “ bona fide
subscribed and paid into said compa
ny.” In other words, after the in
dorsement of the bonds to the
amount of one million dollars, there
should not be any further indorse
ment unless an equal amount of capi
tal should be subscribed in good faith
and paid into the company.
After the grant of the aid of the
State it does not appear that any ac
tion was taken by the company extend
ing the road until the 25th day of June,
1868. On that day an agreement, a
copy of which is herewith transmitted,
was ostensibly entered into by Geo. G.
Hull and Sidney G. Miller, of New York,
with the company, whereby they agreed
to furnish material and construct the
unfinished portion of the road to the
city of Brunswick. In consideration
thereof the company agreed to pay the
said Hull & Miller as follows : $1,500,-
000 of the first mortgage bonds of the
company indorsed by the State, $1,000,-
000 of 7 per cent, second mortgage
bonds of the company, and $1,500,000
of preferred capital stock of the com
pany, which should be entitled to re
ceive dividends at the rate of 8 per
cent, per annum, before any dividend
whatever should be paid to the com
mon stock. It was further agreed
that all of the said securities should at
ouce be issued by the company, and
placed in the hands of Dabney, Mor
gan & Cos., bankers, of New York, as
trustees, who should, upon the com
pletion of each section of ten miles of
road, obtain the endorsement of the
State upon the first mortgage bonds of
the company, and should deliver the
securities placed in their hands as
aforesaid to such persons as Messrs.
Hull & Miller should direct, upon the
estimate of the chief engineer of the
company. The company also agreed
to obtain the indorsement of the State
upon the first mortgage bond3 as afore
said, upon the requisition of said trus
tees, and “to provide that a majority
of the board of directors should each
be a holder of two hundred shares of
the preferred stock.” It would thus
seem that it was the intention of the
parties to this agreement to transfer,
in effect, the entire property of the
company and the control thereof to the
contractors, and practically to deny to
the common stockholders all voice In
the management of the affairs of the
company. It is proper here to add,
that there is reason to believe that
Messrs. Hull & Miller were only nomi
nal parties, and that the real contract
ors were persons known only in the re
cords of the company as “ the New
York Associates.” These “ Associates,”
it seems, employed Messrs. Hull & Mil
ler to construct the road according to
the conditions of said contract, and
paid them therefore at the rate of
$12,250 per mile, this being the actual
cost of that portion of the road which
was built after the graut of the aid of
the State.
It no where appears, so far as I have
been able to ascertain, that any amount
whatever was subscribed and paid in
to the capital stock of the company,
after the passage of the act authoriz
the State’s endorsement of its bonds.
V l6 * un( ?aniental condition upon which
the additional indorsements were to
be made, after the State’s guaranty was
placed upon the first $1,000,000 of
bonds, was therefore disregarded, and
these indorsements were given, so far
as I can learn, without authority, and
in direct violation of the law. It also
appears that “ the New York Associ
ates ” virtually acted the double part
AUGUSTA, GA., FRIDAY MORNING. JANUARY 15, 1875.
of contracting with themselves, and
that in effect they occupied the posi
tions of both employes and contractors
at the same time. In view of these
facts the question naturally arises,
whether the agreement between the
company and the contractors was not
itself illegal and void.
I transmit Herewith copies of a letter
and estimate of the President of the
company, showing that the actual cost
of completing the road and putting it
in running order was $12,250 per mile.
This estimate embraces the entire cost
of the road, including graduation, tres
tling, bridges, piling, station houses,
side tracks, superstructure, iron, and
all that was necessary to tho comple
tion of the work. The letter of the
President shows not only the cost of
the road as above stated, but also that
“ the New York Associates ” were the
real contractors, and that Messrs.
Hull & Miller were in fact employed by
them.
The Legislature, at its session in
1871, raised a committee, commonly
known as the “ Bond Committee ”
whose duty it was made to in
vestigate and report upon all the
b >nds and indorsements of the
State, during the administration of
Governor Bullock. The committee, in
pursuance of its duty, made an exami
nation of the endorsements placed upon
the bonds of the Macon and Brunswick
Railroad Company after the adoption
of our present Constitution. Upon re
ference to the report of that committee
touching said last mentioned bonds, it
appears that the only witnesses who
were examined as to the cost of the
road were President Hazlehurst. and
Messrs. J. P. Giraud Foster, Morris K.
Jessup, and D. Willis James, under
stood to be three of “the New York
Associates.” These witnesses testified
that,
“The Macon and Brunswick Railroad
cost, for building and equipment,
twenty thousand dollars per mile, fully
ten thousand dollars per mile of which
were paid in and invested in good faith
by the stockholders, independent o
and outside of (the) State’s indorse
ment. The company received one mil
lion nine hundred and fifty thousand
dollars of bonds under the act of 1866,
and six hundred thousand dollars-of
bonds under the act of 1870. The
amount of money paid in and invested
in good faith by the stockholders will
cover the first indorsement fully, but
not the second.”
The Legislature acting upon this tes
timony as reported by the Bond Com
mittee, adopted the resolution to which
reference has already been made, re
cognizing the validity of said indorse
ments. It cannot reasonably be sup
posed that either the committee or the
Legislature were advised of the cost
of the road, as set forth in the letter of
the President accompanying this com
munication. Tho cost of the equip
ment of the road cannot account for
the discrepancy between the amount
of the cost of the road aa stated in the
President’s letter and estimate, and the
cost of the same as set forth in the
testimony of himself and the throe
“New York Associates” before the Bond
Committee, And as to the amount
claimed to have been paid in by the
stockholders, it is not to be supposed
that the committee had examined the
stock book and minutes of the com
pany. These books, now in the hands
of the Receiver, have been sdhrehed in
vain for evidence that any stock what
ever was actually subscribed and paid
in by individuals, after the grant of aid
by the State.
It will not be expected that I should
pause to comment upon these and other
facts of equal significance disclosed by
the examination made into the affairs
of the company. I feel it to be my
duty, however, to recommend that a
thorough investigation be made to the
end that it may be ascertained whether
the law under which the company pro
cured the State’s indorsement has been
complied with or not, The public in
terest requires that this shall be done.
If it should appear that the company
has complied with the law, and has thus
entitled itself to the State’s indorse
ment, justice to the holders of its in
dorsed bonds demands that the obliga
tion should be acknowledged at once.
If, on the other hand, it should be
shown that the company has not placed
itself in a position to, claim said in
dorsement, and that the same has been
illegally obtained, and that the present
holders of the bonds are properly char
geable with notice of the wrong-doing,
then duty to the people, already over
burdened by debt and taxation, re
quires that this should be so declared
with equal promptitude.
At the last session of the General
Assembly, I suggested that doubt ex
isted as to the validity of the State’s
indorsement upon the $600,000 of bonds
of the company issued under the act of
1870. I now respectfully advise that
the investigation be extended to all the
indorsements granted said company by
the State, since the adoption of the
present Constitution. Attention is also
called # to the appropriation act of the
last Legislature, in regard to the in
terest upon bonds of the company,
which it may become necessary to re
peal. It may also become necessary
for the State to continue to hold the
road for a longer period than two years,
to which time it is now limited by law.
In that event, it is hoped that the act
imposing this limitation will be modi
fied, and that the Governor will be au
thorized to keep possession of the road
until the same can be disposed of to the
nest advantage, both of the State and
the company.
NORTH AND SOUTH RAILROAD.
The North and South Railroad Com
pany having failed to pay the interest
ou its bonds indorsed by the State, I
ordered all the property of the same to
be seized and taken possession of on
the 23d day of April, 1874, and appoint
ed Edward A. Flewellen, Superinten
dent of Public Works, as agent of the
State, to manage and control the same.
The law under which the seizure was
made requires the Governor to hold
the property at least six months be
fore offering it for sale, and the seizure
having been made the latter part of
April, no sale could therefore have
been made earlier t'* an November. The
road has not been sold for the reason
that it was not believed that anything
approaching its value could be obtain
ed in the present condition of the
money market. It is hoped, however,
that this state of things will not con
tinue long, and that some arrangement
may be made by which the property
can be disposed of without great loss
to the public treasury. The road sus
tained serious damage the past year
from freshets, and the repairs rendered
necessary in consequence thereof made
it impracticable for the agent to apply
any part of the earnings to the pay
ment of the interest on the indorsed
bonds. It is not probable that the fu
ture earnings of the road will be suffi
cient to meet this interest. It will be
necessary, therefore, for the Legisla
ture, at the present session, to make
provision for its payment.
MEMPHIS BRANCH RAILROAD.
The Memphis Branch Railroad Com
pany having completed and equipped
the first section of five miles of its
road, as required by the act entitling
the company to the aid of the State,
applied for the indorsement of its bonds
in May last. After causing a thorough
examination of the affairs of the com
pany to be made, I placed the State’s
guaranty on its bonds to the amount
of $34,000, this being one-half the value
and cost of the section completed and
equipped. The section of the road was
finished, and the application for the
State’s indorsement was made, before
the passage of the act approved Feb
ruary 25,1874, repealing the provisions
of the several railroad charters there
tofore granted, which gave State aid to
such enterprises. In my judgment, the
application came within the saving
operation of that clause of said last
named act, which provides that any
company which had already acquired a
vested right to the aid of the State,
should not be affected by the act. It
may be added that the commissioners
who examined the road, reported that
more than SIOO,OOO had been in good
faith invested in said company by pri
vate individuals, and that satisfactory
evidence was exhibited, showing that
there was no lien or incumbrance upon
the property of the company which
could endanger the prior lien of the
State.
STATE AID.
Reflection has satisfied me that ad
ditional legislation is required to check
the evils likely to flow from the unwise
policy of granting the aid of the State
to works of internal Improvement. Ex
perience has shown that It is almost
impossible to so guard the public inter
est as to prevent injury to the same
under these grants. The larger por
tion of our financial troubles of late
years may be traced directly to this
mischievous policy. The act approved
February 25, 1874, repealed all existing
railway charters, so far as the same
provided for State aid, except in cases
where the right to the same had al
ready become vested. What would
amount, under the law, to a vested
right, is a mooted question. It has al
ready been claimed that the mere ac
ceptance of the charter by the company,
without more, would have the legal
effect of vesting the right to the aid
therein granted. If this claim should
be allowed by the courts, the object
sought to be accomplished by the act
would be entirely defeated. The
Code, however, as will be seen
by reference to section 1682, au
thorizes the withdrawal by the
State of the franchises granted in cer
tain cases, Indeed, the franchises
granted to railway companies, since the
enactment of this part of the Code,
were granted and accepted subject to
the right of withdrawal, unless other
wise expressly provided. I would,
therefore, respectfully recommend that
in all cases where the same can be done,
the franchises to those railroad compa
nies whose charters make provision for
State aid, be withdrawn by legislative
enactment, unless they shall, within a
prescribed time, renounce respectively
all right to claim or receive the aid
granted in their several charters.
STATE UNIVERSITY.
The report of the Board of Trustees
of the State University sqows that the
receipts from all sources, during the
collegiate year ending July 28, 1874,
amounted to $40,011.80.
The University is reported to be in a
prosperous condition., and the devotion
of the students to their studies, during
the last collegiate year, is highly com
mended. The number of new students
received the present year has exceeded
anything in the experience of the past.
I invite attention to the report of the
Board of Visitors, who attended the
examination of the Senior Class, prior
to the last commencement. This re
port is very full, and the thorough
ness with which the board discharged
its duties reflects great credit upon its
members. Attention is called by the
board to a defect in the law prescribing
its duties. The law requires no more
than that the board shall “ attend the
University examination preceding the
annual commencement, and report to
the Governor the character of such ex
amination.” The powers given to the
board are not broad enough to give
value to its reports. Authority should
be given to extend its investigations to
every matter affecting the interest of
the University. It is thus only that the
report of the visitors can be made a
channel through which the General
Assembly may receive trustworthy in
formation touching the condition and
wants of the University. I recommend
that the law be amended as here indi
cated.
I further suggest that inquiry be
made into the propriety of providing
for a thorough re-organization of the
University. As at present constituted,
the Board of Trustees consists of
thirty-five members—a larger number,
as I am advised, than composes a simi
lar organization in this or any other
country. The body is too large for
efficiency; besides, its members are
appointed for life, and thus, iu some
measure, are left without that sense of
responsibility which experience proves
is necessary to secure diligence and
faithfulness in places of trust. In my
judgment, the offices of the present
Trustees should be vacated, and pro
vision should be made for the appoint
ment of anew board, to consist of not
more than nine members. The appoint
ment should be made in the manner
which would most certainly secure men
of enlarged views, and of general fit
ness for the position. The full term of
office should not be longer than six
years, and the first nine appointed
should be divided into three classes of
three each, to be appointed respectively
for two, four and six years. Thus, every
two years there would be three vacan
cies In the board. This provision would
prevent the making of sudden, radical
changes in the management of the
University, and, at the same time, would
secure a sense of responsibility upon
the part of the Trustees. The board
ought to be held directly responsible to
the General Assembly, and to that end,
they should be required to make out
and submit full annual reports of their
proceedings, and of the condition of the
University.
The changes just suggested would,
in my opinion, greatly advance the
cause of University education in the
State. The institution would draw
around it the sympathy and support of
all the best men of the State, and the
representatives of the people would
not hesitate to make all needful ap
propriations for its support and ad
vancement. The people of the State
desire to see their University grow and
expand, and they fully assent to the
truth of the maxim, that the greatness
of a State* depends upon, and is propor
tionate to, the higher education of its
people.
ATLANTA UNIVERSITY.
By an act approved March 3, 1874,
the sum of SB,OOO was annually appro
priated to the Atlanta University, upon
condition that the institution should
admit for instruction as many colored
pupils from each county in the State,
free of charge, for tuition, as there are
or may be members of the House of
Representatives! from each county, to
be nominated by said members respec
tively, so long as said appropriation
continues. The*Governor is inhibited
from drawing his warrant for the said
sum, until the Trustees of said institu
tion shall have submitted a plan for
the expenditure of the same to a Board
of Commissioners, consisting of the
Chancellor of the State University and
two members of the Faculty of the same,
and until such plan shall have been ap
proved by them each year in writing,
and filed in the Executive office. The
condition upon which a warrant was to
be given for the appropriation, having
been complied with, the amount for the
past year was paid over to the Presi
dent of the University. The report of
the committee, whose duty it was to
visit this institution, will be found ac
companying this communication.
COMMON SCHOOLS.
The report of the School Commis
sioner shows 'll iat there is a school or
ganization in every county in the State,
and that public schools have been in
actual operation in one hundred and
twenty-five counties the past year. A*
growing interest in the schools is man
ifested, and there has been a marked
change in public opinion in favor of the
present system. The Commissioner
directs attention to the fact that there
are $850,000 of school bonds now in
the hands of the Secretary of State,
and claims that the interest on these
bonds from October 13, 1870, to Octo
ber 1,1874, amounting to $84,000, is a
debt due from the State to this depart
ment ; and he asks that the Legisla
ture take some action recognizing the
validity of tho claim.
The net amount of the school fund,
collected from all sources, from the
adoption of the present constitution
down to December 1, 1873, was $489,-
722.42. The sums collected since the
List mentioned date amount to $186,-
183.90, and the disbursements to $169,-
071.84.
The whole amount of poll tax assess
ed for the year 1874, and which by act
of February 28, 1874, is re‘ained in the
counties, was $199,550. Of this amount
the Comptroller General estimates that
the sum of $133,000 has been col
lected.
I concur in the opinion expressed by
the Commissioner, that the act of the
last General Assembly, providing for
the payment of the school debt of 1871,
ought to be repealed. I also suggest
that the law prescribing the mode in
which the school fund shall be paid
over to CouDty School Commissioners
be amended as is recommended in the
report. Such payments are at present
required to be made at the State Treas
ury. By the amendment recommend
ed, the funds due to each couuty would
be paid over directly by the Tax Col
lector to the County School Commis
sioner. By this arrangement, the col
lections by the County School Commis
sioners would be much simplified, and
the cost of transmitting the money to
and from tho State Treasury would be
saved.
I concur fully in the opinion express
ed by the Commissioner to the effect
that the act of the last General Assem
bly, giving an annual donation of SB,OOO
to the Atlanta University, should be
repealed. The colored as well as the
white people of the State should be ed
ucated, and to this end the tax payers
are willing to contribute to the extent
of their ability. It cannot reasonably
be expected, however, that the class
upon which the burden of taxation
chiefly falls will consent to support an
institution wherein the mischievous
doctrine of social equality is practically
inculcated. The wishes and feelings of
those upon whom rests the burthen of
supporting the Government should be
consulted in this as well as all other
matters affecting the public interest.
By reference to the report of the
Board of Visitors, who attended the
annual examination at this institution,
it will also be seen that some system
of theology is taught therein. Adopt
ing the very pertinent inquiry of the
Board: Whose theology is it that is
taught ? Without waiting for a reply
to this question, it may safely be as
sumed that the teachings upon this
subject are sectarian in their character.
The Constitution of the State inhibits
the granting of a donation or gratuity
by the Legislature to any sectarian
corporation or association. It is hard
ly necessary to add that the spirit, if
not the letter, of this constitutional
provision would be violated by contin
uing the appropriation under consider
ation to this institution. But recog
nizing the duty resting upon the public
to provide for the education of the
colored people, I respectfully submit
thq views expressed by the State School
Commissioner on this subject, with tho
recommendation that they be favora
bly considered by the General Assem
bly.
DEPARTMENT OF AGRICULTURE.
I transmit herewith the first annual
report of the Commissioner of Agricul
ture. This department was created by
the act approved February 20th, 1874,
but the Commissioner was not appoint
ed until the 26th day of August last.
As soon as appointed, however, he en
tered energetically upon the discharge
of his duties, and has already succeed
ed in organizing his department and
placing it in thorough working order.
The materials necessary for the hand
book required by the act are being col
lected, and a specimen, showing the
manner in which this valuable work is
being prepared, will soon be ready for
delivery. A laboratory has been fitted
up at the Capitol and furnished with
chemical apparatus suitable for con
ducting analyses of soils and minerals.
The rules prescribed for conducting
these analyses, it is confidently be
lieved, will be effectual in securing re
sults of great practical benefit to our
agricultural interest. An accurate
knowledge of its condition and wants
must necessarily be the basis of all im
provement in our agriculture. Recog
nizing this truth, the Commissioner has
arranged a system for the collection
of reliable statistical information. He
has already gathered a mass of valua
ble facts, showing the present condition
of our agricultural labor system, the
amount of home supplies produced,
and the general conduct and manage
ment of our husbandry.
The Legislature, in establishing this
department, took a step in the right
direction, and, in my judgment, the
future material prosperity of the State
will depend, in a large measure, upon
the manner in which it may be foster
! ed and sustained.
Judging from what has been already
achieved, I think it may be safely pre
dicted that, under the able manage
ment of the Commissioner, this depart
ment will soon entitle itself to the con
fidence and permanent support of the
people.
GEOLOGICAL SURVEY.
The office of State Geologist, created
by an act approved February 27th,
1874, has been conferred upon Dr. Geo:
Little, who heid, at the time of his ap
pointment, a professorship in the Uni
versity of the State of Mississippi.
This officer, after organizing his de
partment, entered at once upon the
discharge of his duties. Taking the
field late in the Fall, after a hurried
preparation, he has traversed nearly
the whole of Northwestern Georgia,
beyond the Chattahoochee, and has
already made a large collection of spec
imens,showing the geological and min
eralogical character of a number of the
counties embraced iu that section. The
information contained in his report,
herewith transmitted, is very valuable,
and the attention of the General As
sembly is specially directed thereto. I
think it is not too much to say, in be
half of this officer, that the benefits ex
pected by the people of Georgia from
the operations of this department of
the public service, will be fully realized
under its present intelligent and ener
getic management. Believing that the
work thus undertaken will, when com
pleted, be of incalculable value to the
people of the State, I earnestly recom
mend such appropriation be made
therefor as may be deemed necessary
for its energetic prosecution.
LUNATIC ASYLUM.
The report of the Trustees of the Lu
natic Asylum exhibits fully and par
ticularly the condition and manage
ment of the institution during the past
year. Its official organization is re
ported good, and all its affairs have
been conducted with a just and reason
able economy. For reasons stated in
the report, the amount appropriated
for the support of the institution the
present year should be larger than
that given for a similar purpose, last
year. The suggestion of the Trustees
upon this subject may, in my judg
ment, be safely adopted, and I respect
fully recommend that the amount ask
ed for be given. Duplicate vouchers
for the expenditures of last year have
been regularly forwarded, as the law
requires, and are ready for inspection
by the proper committee of the Gene
ral Assembly.
ACADEMY FOR THE BUND.
The report of the Trustees of the
Academy for the Blind sets forth the
administration of the affairs of that
institution during the past year. For
reasons stated by the Superintendent,
a larger sum may be needed for the
support of the academy the present
than was appropriated for that pur
pose last year. The necessity for such
additional appropriation wili, I pre
sume, be inquired in to, according to
usage, through a visiting committee,
appointed by th • General Assembly. I
respectfully recommend that whatever
amount may be found necessary to se
cure the comfort of the pupils and to
promote the efficiency of the institu
tion be supplied.
DEAF AND DUMB ASYLUM.
Herewith transmitted will be found
the annual report of the Board of Com
missioners of the institution for the
education of the Deaf and Dumb. It
is suggested in tho report that the
same amount as that annually appro
priated in previous years, viz : $13,500,
will not be sufficient to meet the wants
of the institution the present year, and
an appropriation of $15,000 is asked
for. The Board also asked that an ad
ditional sum of SI,OOO be appropriated
to payj for repairs of buddings, and
$250 be given to purchase material
needed for fitting up the printing of
fice of the academy. The report shows
that the institution is in a prosperous
condition, and I cheerfully recommend
the appropriation of such sums as may
be necessary for its support.
ATTORNEY GENERAL’S REPORT.
The report of the Attorney General
contains a statement of the busiuess of
the State, in his charge, the past year.
Attention is especially invited to that
part of his report which refers to the
purchase of property at public sale, for
the use of the State, and the disposi
tion made thereof. The Attorney Gen
eral suggests that the Governor, in
conveying certain property thus pur
chased, be authorized to warrant, on
the part of the State, the title to the
purchaser. This suggestion is respect
fully submitted to the General Assem
bly for such action as may be consid
ered proper.
PENITENTIARY.
In pursuance, of the Act approved
March 3,1874, the convicts in the Pen
itentiary have been farmed out to dif
ferent parties, for terms ranging from
one to five years. The lease of Messrs.
Grant, Alexander & Cos. expired on the
first day of April last, less than one
month after the passage of this act.
In consequence of the short time al
lowed within which to dispose of them,
the lateness of the season, r.nd the gen
eral condition of the country, it was
found impracticable to obtain full
prices for the convicts. Ah of them
were disposed of, however, on terms
which relieves the State of every ex
pense on account of the Penitentiary.
In disposing of the convicts, I sought
as far as far as practicable to diversi
fy their employment, with a view of
ascertaining in what special industries
such labor could be most beneficially
engaged.
The terms for which the convicts have
been leased will soon begin to expire,
and it will be necessary, therefore,
for the Legislature to devise in ad
vance a permanent and more satisfac
tory system for keeping and employ
ing them. The present plan can be re
garded only as a temporary expedient,
rendered necessary by the condition
of our finances and the inconvenience,
if not impracticability, of securing a
better system under the circumstances.
In any permanent system adopted,
care should be taken to preserve the
punitive and reformatory character of
a penitentiary, and, at the same time,
make it self-sustaining as far as possi
ble.
It will appear by reference to the re
port of the principal keeper, herewith
transmitted, that the number of es
capes and deaths has been large since
the last letting of the convicts. This
results, probably, from the vices
inherent in the system, rather than
from negligence on the part of the les
sees. The escapes have been *t the
rate of ten per cent, per annum of the
whole number of convicts, and the
deaths at the rate of six per cent.
This, it must be confessed, is an un
favorable showing for the present sys
tem, and clearly demonstrates the ne
cessity of abandoning it as soon as
possible.
The number of convicts, at the pres
ent rate of increase, will soon reach
one thousand. Ifrhas been ascertained
that for a period of fifty years anterior
to the late war, each convict confined
in th® State prison involved an actual
JSTew Series—Vol. 3. ISTo. 12
expenditure from the public Treasury,
over and above the proceeds of his la
bor, $219.00 per annum. It cannot be
expected that convicts can be kept un
der that system at this time for a leas
amount tian this. Assuming this to
be true, the number of convicts which
may reasonably expected at an early
day, will require for their maintenance,
if kept in prison, an annual appropria
tion of over $200,000. Such a burden
as this should not be imposed upon the
people of the State, for the support of
violators of the law, if can be avoid
ed.
It will thus be seen that the disposi
tion to be made of the convicts under
our laws , is a matter of grave public
concern. The attention of the Legisla
ture is earnestly invited to the subject.
It can scarcely be hoped that any
system which may be adopted will be
free from objection. While I have no
plan to offer as entirely satisfactory to
my own mind, I would suggest that in
any system that may be devised,the con
victs should be placed under someone
responsible head, rather than divided
among several, and that the State, in
the event it should part with the labor
of the convicts, ought, nevertheless, to
retain the right of police, including the
right of supervising their sanitary and
moral condition, their treatment and
safe-keeping.
VOLUNTEER COMPANIES.
The number of volunteer companies
organized in the State is two hundred
and twenty-one. Of these, one artille
ry company, eleven cavalry and forty
three infantry companies have been
armed. There have been issued to the
infantry two thousand three hundred
and thirty stands of arms, with ac
coutrements in full. Included iu this
amount are one hundred muskets fur
nished to the Agricultural College at
Athens. Four hundred and sixty pis
tols, and an equal number of sabres,
have been issued to the cavalry. Five
12-poun ier Napoleon guns have been
drawn by the State from the Ordnance
Department at Washington, four of
which have been given to an artillery
company at Savannah.
Experience demonstrates that noth
ing tends so effectually to preserve the
public peace as a consciousness on the
part of the evil-disposed and lawless
that government possesses the power
to enforce the laws. Hence, the mili
tia should, to tho extent practicable,
be thoroughly organized and armed.
The quotas received annuaiiy from the
Federal Government by the State is
wholly insufficient for' this purpose.
The quota of fourteen years—from
1861 to 1874, inclusive —were required
to supply the fifty-five companies al
ready armed, and to furnish the Agri
cultural College, as before stated. The
companies organized, but now unarm
ed, mu3t therefore be disbanded,
unless an appropriation be made
by the Legislature to supply them with
arms. I recommend that a sufficient
amount be voted to arm the companies
already organized. The expenditure of
this appropriation should be guarded
by limiting the cost of the arms to be
purchased to the regulation prices pre
scribed by the Ordnance Department
of the United States.
CONSTITUTIONAL AMENDMENT.
The Secretary of State has been
directed to send, properly authenticat
ed, to the Senate, where it originated,
tho act of the last Legislature, approv
ed March 2, 1874, entitled “An act to
amend the Constitution of the State.”
An examination of this act shows that
it is applicable only to such endorse
ments railway bonds made by the
late Governor, as the Legislature had
“declared illegal, fraudulent or void.”
A large amount of the fraudulent in
dorsements and bonds, issued during
the late administration, are not cover
ed by the language of the act. It Is
doubtful, therefore, whether the public
interest would be subserved by the
final adoption of the act as an amend
ment to the constitution. It is also
questionable whether it would be com
petent for the Legislature so to amend
the act as to include the other bonds
and indorsements to whicn attention
has ju&t • been directed. The ques
tion is thus brought before us,
whether, for this and other rea
sons, it is advisable at this time, and
under exiting circumstances, to call a
convention for the purpose of revising
and amending the Constitution of the
State.
It is generally conceded that such a
convention ought to assemble in the
course of a few years. Indeed, there
seems to be but little, if any, difference
of opinio u as to the propriety and ne
cessity of revising the constitution;
the only doubt in the public mind being
as to the time when this can best be
done. There are certainly many rea
sons why a convention should be
called without unnecessary delay; and
yet, it must be confessed that there
are other reasons, equally cogent, why,
in a matter of such grave concern, the
State should move with extreme
caution. The peculiar condition of
the State, its relations with the Federal
Government, and the necessity of act
ing, as fur as practicable, with due re
gard to other Southern States similarly
situated with ourselves, impose upon
us a grave responsibility. The people,
however, have the right to decide this
question for themselves, and to them
the Legislature can safely remit it.
When this Ims been done, the entire
question can be discussed and deter
mined upon its merits. I can see no
reason, therefore, why the Legislature,
if it see proper, may not take action
during the present session, for the pur
pose of referring the question of as
sembling a convention to a vote of the
people.
FEDERAL RELATIONS —LOUISIANA.
The es hibit here made of the affairs
of the State, though not all that could
be desired, furnishes much ground for
hope and encouragement in the future.
Our financial condition is steadily im
proving, and our great agrieultuial in
terests begin to show signs of reviving
life and vigor. With the increased pro
duction of breadstuffs the past year,
the plaiting interests, with a better
price foi the great staple, would be on
a more satisfactory footing at this time
than it i.as been for some years. The
interest in the State which seems to
languish most is our railways.
The chief obstacle in the way of our
advancement, has arisen from the
course pursued by the party in posses
sion of the Federal Government toward
the Southern States. One of the im
mediate results of this policy has been
the disorganization of our labor, and
the consequent large increase of idle
ness, vagrancy and crime. It has been
erroneously assumed that the lately
enfranchised class would not receive
just or proper treatment from the white
people, and to prevent this imaginary
evil, the mischievous and unconstitu
tional measures known as the Enforce
ment Acts have been resorted to. We
are no tr further threatened by still
greater evils, in the passage by Con
gress of what is commonly designated