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DAILY TIMES.
< ‘oliinthilN, CXu-*
FRIDAY JANUARY 15, 1875.
I. 11. H11.1.1.1M1. • - • I’.dllor.
Tb<* Time* onl,.
lain Ouuhy'n BtlildlnK (np.Ulr>), on Ht. Clair
ntri*i't.
Wot. nautili-
We give up our editorial spttoe to
day, that we may publish the excel
lent message of (lov. Hmith in full.
To it we Infitc tin- attention of our
realtors. It will pay them for a
perusal. Note the contrast between
tills document and the one published
in this paper yesterday, reported ns
Grant’s,
(H R itrUTTI MtltHl.
Hpytciftl OorrttijMindenc*! Daily Timkh.]
Atlanta, Ga., Jan. 13,1875.
Mr. Editor: At in a. m. tiie two
houses of the General Assembly met
In their respective Halls, to com
mence their session of 1875, the first,
object of course, lieing an organiza
tion.
In the Senate the elections were
had without any previous caucus,
and the vote which elected the suc
cessful candidates was the ilrst relia
ble information of the strength of j
each. For President of the Senate, ]
Mr. Wofford of the 42nd District, |
(llartow county) nominated Hon. T. j
J. Simmons of the 22nd District, and j
Mr. Cain of the 18th (Jefferson ,
county) nominated Hon. R. E. Lester
of the Ist. The result was that Mr.
Simmons received twenty-four votes,
and Mr. Lester eighteen. Mr. Sim
mons assumed the chair and made a
short but solid address. His reference
to ljouislana matters were es|>eeially
well received, while the tone of his
entire talk was such as to win from
tiie Benate ut, large, expressions of
confidence in the patriotism and
ability of their new President. Mr.
J. W. Murphey of Harris was, with
out an opposing vote, elected Secre
tary, and himself with Mr. C. J. Wel
horn, of Union, as Assistant, were
sworn in. Hon. Hugh Buchanan,
Judge of the Coweta Circuit admin
istered the oath to the new Senators.
In the House, Hon. Thomas Harde
man of Bibb, was elected Speaker.
His election was settled in caucus of
the House at 8j a. m. Hon. A. O. Ba
con of the samo county, being the
only opponent of Col. Hardeman,
W. D. Anderson, of Cobb, having
previously withdrawn from the con
test. The vote in caucus was very
close, (Jol. H. beating his opponent
one vote. Mr. J. L. Sweat of Clinch,
was then by a large majority, elected
Clerk of the House, over that old
stager and former efficient Clerk, L.
Carrington of Baldwin, which was
quite a surprise' to very many on each
side. The minor offices of the Sen
ate and House wore tilled
to the satisfaction at, least of the
chosen ones; and the noble army of
martyrs, whose claims for recogni
tion had been refused by unmigtatful
body of public servants, commenced
retiring from the scene of strife, to
the peaceful shades of their moun
tain cabins, and piuuy woods homes,
at last convinced that the darned lit
tle office which onlif paid seven dol
lars a day, wasn’t really worth hav
ing.
The result, of these elections ought
to he satisfactory to your neighbor
ing city, Macon. The presiding offi
cer of each House, anil Door-Keep
er of the Senate, having been fur
nished by her. Ought not this re
sult be sufficient to coui{H'usute
Macon for a lotuj time to mine.
In consequence of the length of
time consumed by the House in per
fecting its organization, nothing else
was done; the Senate having finished
in a few minutes, had a recess several
times and finally, at twelve and a
half o'clock, adjourned until 10 a. m.
Thursday. The House, at twelve and
u half, having completed Its organi
zation, did the same.
1 suppose that to-morrow the real
business of the General Assembly
will begin -the committees will prob
ably be announced, and an avalanche
of hills perhaps be precipitated on
each house.
The excitement of the elections
having l>aßsod, various inqiortnnt in
terests are being discussed by the
members. Among these being a call
for a constitutional convention ; the
Usury laws; the modification of the
Homestead law ; and finding for the
Penitentiary convicts a local habita
tion and a name. It would be use
less to predict the result of legislative
action on either of these important
subjects, although it is generally con
sidered that the friends of a conven
tion have gathered considerable
strength since the last session of the
Legislature. A linul disposition of
the fraudulent bonds, modification of
the Homestead law, removal of the
capital and a change in the mode of j
the selection of certain officers being
the principal reasons urged by some :
of the advocates of a convention.
In consequence of the early ad
journment to-day, we are without
t lie Governor’s Message, which is
looked for with some interest.
Speaking of that important officer,
his administration seems to give
great satisfaction, at least so far as
lias been heard from by your eorres-
IKUident. Notwithstanding many
hard tilings have been said of him in
some localities, no one really doubts ,
tbat his general administration lias
corrected many great an grave error's
and restored to tlie people of Georgia
n confidence in their ability to j
make for their State, politl- ;
cully and flnaneially, a pros-j
perous future, ami if he deserves
no more, lie certainly does deserve j
the gratitude of the people for his
faithfulness to their interests. It is
understood that lie does not contem
plate a candidacy for further politi- J
nl honors.
I hope you have been spared a con
tinuance of the great amount of
weather, which the climate or some j
unknown combination of the ole
ments arc Inflicting on us hew. Not
withstanding the remains of the
s/ctf/, were plentiful at dark yester
day and the air hitter cold, daring
the night a heavy rain fell, accompa
nied with loud thunder and vivid
flashes of lightning. Never having
seen such elsewhere, is it not fair to
conclude that this, with other
strange oeiurrences, are {teeuliar to
Atlanta? L, A. W,
l R
(iOYKUNOIt'S Mi;sSA<iK.
KatHcn rvr: DUp’tot Gkowiia. {
Atlanta, Ga., January 13, 175. )
To tin' tienernl Awteinbhj :
In the discharge of the duty im
posed upon me by tiie Constitution, 1
l have the honor to lay before the
General Assembly the information
deemed prop* in reference to the
condition of tiie Odnimonwenlth, and
to recommend to their consideration
such measures as are deemed neces
sary and expedient.
Most prominent among the subjects
claiming the attention of the General
Assembly, Is the financial condition
of tiie State.
The balance in the Treasury on the
Ist day of January, 1874, was $922,-
560 25, and the amount received du
ring the last fiscal year was #1,895,-
lir, 85; making the aggregate amount
charged against the Treasurer last
year, *2,817,723 11. The disburse
ments for the same period amounted
to *1,814,594 23, which, deducted from
tiie amount received, leaves a balance
of *1,003,128 88 on bund January 1.
1875. The particular sources from ’
which the receipts were derived, and
the various puriiosee lor which the
disbursement* were made, are stated
in the Comptroller General’s report,
and need not he s|s-eially set forth In ,
this communication.
! The Legislature, at the session of
1873, made an appropriation to pay
1 the claim of Russell Sage. This claim
! amounted to *423,125, and no means
having been specially provided for its
I pay ment, it was satisfied out of the
! ordinary revenues which came Into
• the Treasury during that year. This
. created a deficiency last year which
! could not he supplied otherwise than
by resorting to the very doubtful ex
pedient of snort temporary loans. As
an evidence of the improved condition
of the public credit, It may here In
stated, however, that no difficulty
was found In raising the required
amount, at u reasonable rale of inter
est.
The steady growth in the wealth of
the Shite, us shown by the Comptrol
ler General’s report, cannot fail to he
very gratifying to the people. The
reported increase in the value of tax
able property for the year 1874, is
more than *3u,000,n00 over and above
the value re)>orted for tiie previous
year. This increase was produced, in
part, by the repeal of the law exempt
Inga certain umountof property from
taxation. But after making full al
lowance for tiie repeal of this_ exemp
tion, it appears that tiie net increase
in the value of taxable property re
turned was *18,709,378. I may here
he allowed to note for commendation,
the thoroughness and accuracy ex
hibited by tiie Comptroller General
in preparing tile different tables con
tained in this report.
I unite with tiie Comptroller Gen-1
eral in recommending that his office 1
be relieved of the duty of consolidn
ting and taking care of the agricultu
ral returns. The reports of Tax Re
ceivers to ids office, in my judgment,
furnish tiie most economical and re
liable channels for the collection of
agricultural statistics. The law should
he so amended, however, as to secure
with reasonable certainty, all the in
formation desired, and to this end,
Tax Receivers should lie obliged, as a
part of their official duty, to collect
and return tiie requited statistics.
Other amendments of the tax laws
are recommended hv the Comptroller
General, which are respectfully re
ferred to the General Assembly for
consideration.
According to the statement pre
sented hv tiie Treasurer, the funded
debt of the State, not yet matured,
amounted, on the first day of Janu
ary, 1875, to *8,105,500. The princi
pal and interest due thereon the pres
ent year amounts to *070,385. In
cluded in this is the first installment
of *IOO,OOO of the 8 per cent, bonds
Issued under the authority of the act
approved February 19,1873. The Treas
urer- states that, in addition to the
foregoing, there is also outstanding,
*209,500, past due bonds, which, to
gether with the unpaid interest there
on, amounts to *323,400. The report
contains a full ami particular de
scriptive list, of these last mentioned
bonds. It is suggested by tin- Treas
urer that a large amount of the same
was paid by a former agent of the
Stale, and not returned to the Treas
ury for cancellation. It should here
j lie'stated, that the failure upon the
part of fids agent to make such re
turn lias produced serious inconve
nience, and probably loss to the
Treasury.
Having reason to believe that
Messrs. Henry Clews A Cos. the agents
just referred to, were converting to
their own use paid up bonds of the
State, and desiring to relieve the
Treasury from all complications
growing out of their transactions as
agents, 1 directed the Attorney Gen
eral to proceed to New York aiid ob
tain, if possible, a settlement of their
account with the Stutc. Upon his
return, this officer reported that he
found it impossible to effect a
satisfactory settlement of the ac
count; that Mr. Clews positively
refused to permit any examination of
his books and vouchers unless the
account which he had heretofore
rendered against the State
wort'paid. It hardly need to be sta
ted that such an unreasonable condi
tion could not lie complied with.
The objection to the account render
ed was, that many of its items were
not supported by proper vouchers.
The examination of these vouchees,
if produced, would necessarily have
involved an inspection of the books
amt papers of the agent. A settle
ment having been thus refused, the
Attorney General requested to be
furnished with information in refer
ence to the bonds which had gone
into possession of Messrs. Clews A
Cos., and which had not been return
ed by them to the Treasury. This
request was also refused. It is ru
mored that this firm has recently
been adjudged bankrupt, and it is
now hoped that satisfactory informa
tion in reference to the State securi
ties in its possession may be obtained
at no distant day.
By reference to the report of the
Bond Committee, made to tile Legis
lature at the summer session of 187'2,
it will be seen that, in addition to the
bonds declared void by the act ap
proved August -2d, 187-2. Horn y Clews
A(V also hold SBOO,OOO of cur
rency bonds, issued under the act of
August, 1870. There is reason to be
lieve that, notwithstanding the ac
tion of the Legislature declaring
these bond* invalid, this agent has
transferred, or in some other wnv
converted the same to hi* own use.
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 bonds recognised to be legal
and binding on the State, issued dur
ing the late administration. be with
drawn from circulation, and
that other bonds of similar ]
amount and of proper tenor and ef
fect be issued in lieu thereof. This
action would, in my judgment, be
beneficial to tin- jmfdie credit, and
•Would effectually protect tiie Treasu
ry against imposition nod 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 tie able to make any
, arrangement to resume possession of
their property, I respectfully suggest
|t he propriety of authorizing tln- issue i
I of ati amount of State bonds sttflieii'nt
to redeem tiie bonds of tile coinpu
nibs upon which tm- State is liable.
I These companies are insolvent, and
j the holders of their indorsed bond will,
I have to look to tin- State alone fori
payment. It is not probable, there
fore, that the bondholders would hesi-,
tate to exchange upon reai.oiw.ble |
terms, the securities held by them I
for State bonds. In sett ling the de- j
tails of such an arrangement, a ma
terial benefit might be secured for;
the State without doing any injustice
whatever to the holders of tin - ponds, ,
Believing that the interest of the 1
Commonwealth would be subserved I
thereby, I respectfully recommend j
the adoption of a measure giving ef
fect, to the forygoiug suggestions. ,
The following estimate of the l
Treasurer, showing the probable re
ceipts and disbursements ai the.
Treasury, for the fiscal year ending
December 31, 1576, with such altera ,
fionsn, In my judgment, tin- public
interest demands, is respectfully sub
mitted :
dShbm j
CiMb bftlaun- iu Trea’y Dec. #l, 1m74, *I,OO:U3H hh
Frtcn tax of J 75, ‘juu.mju (JO
From g'B' ral tux of 1*74 HUG oott M j
Rental at W. kA. R. It '"*> I
Railroad tax urn 10,000 uo
Kxprt-88 'inpauv ta v 1H75 500 00
Dividend* 2.000 00
Taxes of former years unpaid 10,000 00
Hire of convict* 10.000 00
From all other Hour ccm ho.uoo 00
, no
D|SBUR*> MJSXT-**.
| ( ivil Katablishmeut. ... $ 100,000 00
j legislative pay -r011.... 100,00. 00
Lunatic A*) him ... 115.000 00
j I'ay of Chaplain sud Trus
twiM...., ...... auoooo
1> f and Dumb Asylum' 18,tW0 00
Academy tor the Blind 11,1)00 00
University of Uwiffw. m.umu 00
Printing Fund ‘IO.OOO 00
Contingent Fund...!... JO.OOn uo
Public Buildings 20.000 0o
Executive Department. *IO,OOO 00
Kuperiuteiidcut Public
Works 2,000 00
Clerk Wild Land office. 1,200 (XI
Vaccine Agent HoO'oO
Educational Fund idfcoO 00
Hchoul Cominiatrioner
upti CHfTkMi...... .. 3.700 ou
Huprenui Court luipoffM 1,600 00
Soliqtpyf (idleral cHlts
tn Hujin ni' - (tonrt.. 5 Quo 00
old debts W. A A. R. It. 2 ..000 00
1 Public debt and interest
due in 1075. i....... OTO.WR (Hi
! PrinHpsl Keeper P*ni
tontlary a.ooo oo
Agricultural Dcpart’t.. 10.000 00
OoAlogiott Murvey Id 000 00
Hjyeciul apprH) Flat ions ’200.0U0 00—51,402,083 00
Balance in Treasury Jan. 1. 1875. . .$1,085,0(5 KM
lit (lie i'nrttttoiittl Uablp, 1 have made >
I jio cstinmte for the Atlauta Univ*r
;sity. Fur reasons briefly given tn
another part of this communication,
no appropriation ought, in my judg
ment, to be made for that institution.
MACON A lIItUNHWICK RAILROAD. 1
Accompanying this communication
is a statement made up from the
monthly reports of the Receiver of
the Maeou Brunswick Railroad,
showing the roeipts and disburse- ;
ments on account of the property in
his bunds, since tie- sum-- was taken j
possession of in behalf of the State.
For reasons set forth iu m> last an-1
nual message to the General Assem
bly, It, was found necessary, on taking
possession of thr*foad, to continue to 1
receive as money Die olmuge-bills
tlieretiffore issued by the company
for convenience in its business. Alii
the net earnings of the load since its
seizure half ts-en applied in the re
demption of these bids. As fast as j
redeemed, the bills have been do- j
posited in the State Treasury, where
they remain subject to examination
by the General Assembly. Some
l time before the road passed into the
bauds of the State, the company
, executed a deed conveying considera
ble property to certain trustees, to lie
used iu redeeming the bills, and this
! property is now in the possession of
the Receiver, and when sold, the pro
eeeds thereof should be used to reim
burse the State for the amount paid
j out iu their redemption. Tiie
amount of these hills stiff in eiroula
\ lion, according to the ties! informa
tion of the Koeeivor, is *18,749.50.
Having I wen led to believe that an
arrangement might be made, where---
! by the company would be enabled to
pay the accrued Interest on its bonds
| indorsed by the State, and resume
posnnsmoii of Urn road, and entertains
ing doubts whether the proiiertv
could be disposed or for its value. I
deferred an> aofcton looking to a sale
ot tlio same, until the month of Sep
tember last. Having tluui become
satisfied that the company would not
pay this past due interest, and be
lieving that it would probably be for
the interest of the State to divest the
: company of its title to the
propetry, an order was Issued direct
j mg tho Deceive r to advertise a sale of
1 the road and its equipment on the
lirst Tuesday in December last. Be
fore thi' day of sale arrived, however,
I felt it to be my duty, after mi exam
ination of the records of tin- compu
| ay, to withdraw the property from
i Hie market, and to submit the ques
tion of the proper disjmsition to he
made of the same to the General As.
sembly. In explanation of this ac
tion on iny |tart, the following state
ment is respectfully submitted:
| The legislature, at the adjourned
’ session of 187'i, adopted a joint reso
■ lution declaring ‘‘that the State's
guaranty placed on the bonds of the
Macon \ Brunswick llailroad Oom
imny is binding on the State,” At
tlie time of the adoption of this rcso-
I lution, the Legislature had before it
what appeared to bo sufficient evi
dence of the validity and regularity
of these indorsements, and especially
of the Indorsements made under the
act approved DecemberlSCsi, These
indorsements received further recog
nition by the Legislature in the an
nual appropriation act of 1871; and
no doubt as to the validity of the last
named indorsements arose in my own
' mind, until the recent examination
j of tlie company's records referred to
übove. A brief review of the history
of the company just here, may aid
i the General Assembly in solving the
grave questions here presented.
In the President’s report, submit
ted to a meeting of the stockholders
of the eomiMiny held on the lirst day
of February, 186a, that officer used
the following language:
“From the necessity of keeping the
\ accounts for the last four years in the
depreciated currency of the Confed
erate States, the balance sheets of
the Treasurer present an exaggerated
i statement of the cost of tlie road,
i through its various items of expend
‘ itnre. Assuming that we ere aide to
I liquidate the bonds and outstanding
, liabilities during the coming year
with the assets in hand,which 1 think
| can be done, or nearly so. having
; thus no debts, tlie 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 #800,1(00 )n round numbers. We
have, tlien, for this sum of $806,000,
tv lirst-closs road, fifty miles long,
equipped and running, together with
seventy miles additional ivudy forthe
iron rails, clear of incumbrance or
debt of any description. Deducting
• *2oiLfihn as cost of- the seventy milesl
of grading, wc have *12,00" per mile
us 1 trio average eojrof thft'Hftv miles
of running road-Ntn extremely low
figure for (this) description of mad.”
Rum the foregoing statement of
the President of the company, it ap
pears that, so curly as February, IHCsi,
as niueli as fifty miles of the mad
i was fully completed aud in running
: order, ut a cost of *l2,()nn per mik-,
, and that in addilivn Gujivtu seventy
! miles bad been graded af a cost of]
j *2UB,ouo, and was peaefa- fyr the su]ier
(smißtire, and that tin* prgpwiyyif
1 th(l eOiiii-anv w**.-‘ali-tli of ifleum
liranee or delfi of any uescrlfdon.” j
So far, it appears that the road bad |
been eoiistrueted by individual enter- i
t (.rise alone.
The act of lsi;, already referred to, |
[granted the aid of tlinState for the
| completion of the road bn tho follow
ling terms: Tliat is to say, the Gov-j
I eruor should place the indorsements j
I -if the State on the bonds of the com
j puny to be issued', to the amount of ]
*lo,boo per mile for the portion of the
I road then already completed, and the
I like amount per mile for every addi
tional ten miles, as the same was
j completed and put in running order:
upon condition, however, that before
, any such indorsements were made.
I the Governor should ‘tie satisfied
that us mui'b of the road as the said
, indorsements shall bo applied for”
bad been realty finished and equip-;
ped, and that the road was free from
every Incumbrance that might en
danger the security of the State.
On tin- day after the approval of
the act just referred to, a series of
resolutions explanatory of its provis
ions was adopted, by which, auiony
l other filings, it was j irovidod that the
! bonds i-r the company, to lie indorsed
by tin- State, should not exceed *l,-
Oun.ixsi, until an amount of capital
equal to the additional Indorsement
was bona fide subscribed and paid
Into said company.” In other words,
after the indorsement of the bonds
to the amount of *I,(MX),OOU, there
should not be any further indorse
ment unless an equal amount of cap
ital should be subscribed in good faith
and paid into the company.
After tiie grant of the aid of the
i State it does not appear tiiat any ac
tion was taken by tiie company ex
ttending the road until tic- 25th of
I June, Hr. On that day an agree
ment, a copy of which is herewith
I transmitted, was ostensibly entered
into by George G. Hull and Sidney
G. Miller, of New York, with the
cntujiu&y, whereby they agreed to
furnish material and construct the
nnfinhished portion of the goad to
t lot city of Ilruußwigk. Di.eoasitjera
tibn thereof, the company agreed to
pay Die said Hull A' Miilerns fidlows :
*1,500,000 of the first mortgage bonds -
of the company indorsed by the
State, SI,(XW,OOO of 7 iKM'eeut. second
mortgage bonds of the eom|my , and
*1,500,000 of preferred ea]>itnt* stock
of the eotnpany, which should be eu
titled to receive divide mis at the rate
oT s percent, per annum, before any
dividend whatever should be paid fi.
the common stock. It wits further
agreed that all of the said securities
should at om* be issued by tiie com
pany, and placed in tin- bands of
Dabney, Morgafi A Cos., bankers, of
New York, ns trustees, who should,
upon the completion of eaeli section
of ten miles of road, obtain the in
dorsement of tiie State upon the first
mortgage bouds of tiie company, and
should deliver tiie 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.
Tiie company also agreed to obtain
Die indorsement of the State upon
t.ii* first mortgage bondsasHforesaid,
upon the requisition of said trustees,
and ‘ to pt'ovide.tfia ! a majority of the
board Of tl i rm.-Utrs sh-Mila each be a
holder of two hundred shares of tho
preferred stock." It would thus seem
that it was tlie intention of the par
ties to tills agrts'inent to transfer, in
effect, tin- entire property of. the com
pany ami the control thereof to the
contractors, mid practically to deny
to tiie common stockholders all voice
in the management of tin- affairs of
the company. It is proper hereto
add, that there is reason to believe
that Messrs. Hull A Miller were only
nominal parties, and that the
| real contractors were persons known
i only in the records of the company
as "the New York Associates.”
• These "Associates ' it seems, eni-
I ployed Messrs. Hull A Millw to con
struct the ron-1 according to the eun
, diliuus of said contract,and paid them
, threfor ut the rate of *12.250 per mil- ,
till* belngtiie aettial cost of that pot
fiotf of ftie road which was mnlt after
tho grant ‘>f Die ai'l of the State,
ft no where apiiears, so far as I
j have been able to ascertain, that any
amount whatever was subscribed and
paid into the capital slock of the
1 company, after the passage of the act
authorizing the State’s indorsement
of its bouds. Tin- fundamental con
dition upon which the additional In
dorsements were tq be made, after
the State’s guaranty was placed upon
the first *1.88X1,1X8) of bonds, was
therefore disregarded, and these in
dorsements were given, so far as I
can learn, without authority, and in
! direct violation of the law. It also
appears that “the New York Asso
ciates” virtually acted the double imrt
of contracting with themselves, and
that iu effect they occupied the i>osi
tions of both employees and contrac
tors at the same time. In view of
these filets the question naturally
arises, whether the agreement be
tween the corn]-any and the contrac
tors was not itself illegal and void.
I transmit herewith copies of a let
ter and estimate of the President of
the company,showing that the actual
i cost of completing tiie road and put
ting it in running order was #12,250
per mile. This estimate embraces
the entire cost of the road, including
graduation, trestling, bridges, piling,
station houses, side tracks, super
structure, iron and all that wijs nec
essary to the completion of the wbil-
The letter of the President shows not
only the cost of the road as above
stated, but also Unit “Die New Yoijf
Associates’’ were tho real contractors,
j and that Messrs. Hull A Miller were
I iu fact employed by then).
Tile legislature, at its session in
1871, raised a committee, cdmmonlv
I known as tho "Bond Committee’’
i whose duty it was made to investi
gate' and report iipon all the bonds
and indorsement* of the State, du
ring the administration of Qov. Bul
lock. The committee, in pursuance
lof its duty, made an examination of
the indorsements placed upon the
] bonds of the Macon & Brunswick
Railroad Company after the adoption
of our present Constitution, upon
' reference to the report of that oom
mitte touching said last mentioned
j bonds, it appears that the only wit
nesses who were examined as to lie'
. cost of tiie road were President Hazlc
hurst, and Messrs. J. P. Giraud Fos
ter. Morris K. Jessup, and D. Willis
James, understood to he three of
"tiie New York Associates.” These
witnesses testified that.
“The Macon A Brunswick Railroad
i cost, for building and equipment,
twenty thousand dollars iier mile,
j fully ten thousand dollars peV mile of
which were paid in and invested
in good faith by the stockholders, in
dependent of and outside of (the)
State’s indorsement. The company
I received oije mllleon nine hundred
i and fifty tqoijsand ijollars qf bonds
under the act of 188#, and six hundred
i thousand dollars of bonds under the
i net of 1870. The amount of money
paid in and invested in good faith
by the otoektiuljirs will cover the
first iink>memet fully, but not the
moonili”
The Legi-daturo acting uiion tins
testimony us reported by the Bond
Committee, adopted Die resolution to
which reference lias already been
made, recognizing the validity of
said indorsement*. It cannot reason
ably beeupfiosed tlilit Cither the Coni
, nutlet of tiie Legislature were udvis
[ ed of the cost of the rosin, as set forth
! in the letter of the President occoui
i pauyiug this communication. The
cost of the iqulpment of the road
cannot account for the discrepancy
between tiie amount of the cost of the
rood us stated in tiie President’s let.
ter and estimate, and the cost of the
same as set forth in the testimony of
himself and tiie three “New York
Associates" before the Bond Commit
tee. And as to the amount claimed
to have been j>uid in by the stock
holders, it is not to be supposed that
the committee hud examined the
stock book ami minutes of the com
pany. These' books, now in the
hands of the Receiver, have been
searched in vain for evidence that
any stock whatever was actually sub
scribed and jiaid 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 dis
closed by the examination made into
the affairs of the company. I feel it
to tie my duty, however, to recom
mend that a thorough investigation
be made, to the end that it may be
ascertained whether tiie law under
which the company procured the
State's indorsement lias been com
plied with or not. The public inter
est requires that this shall be done.
If it should appear that the company
bus complied with the law, and lias
thus entitled itself to the State’s in
dorsement, justice to the holders ofi
its indorsed bonds demands that the
obligation should be acknowledged;
ut once. If, on the other hand, it
should lie shown that the company \
lias not placed itself iu a position to ;
claim said indorsement, and that the
same has been illegally obtained, and
that the present holders of the bonds
are properly chargeable with notice
of the wrong-doing, then duty to the
people, already overburdened by
debt and taxation, requires that this
should be so declared with equal
promptitude.
At the last session of the General
Assembly, I suggested that doubt ex
isted tls to the validity of Die State’s
indorsement niton the $(kx),(XX) of
bonds of the company issued under
the act of 1870. I now respectfully
advise that the investigation be ex
tended to all the indorsements grant
ed said company by tiie State, since
tiie adoption of the present Constitu
tion. Attention is also called to the
appropriation act of the Legislature,
in regal'd to the interest upon bonds
of the oonqxiuy, which it may t>e
conii necessary to repeal. Ii 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 Unit, the act
imposing this limitation will be mod
ified, and that tho Governor will bo
authorized to keep possession of the
road until Die same can be disposed
of to the best advantage, bulb of the
State and the oompanv.
NORTH & SOUTH RAILROAD.
Tiie North A .South Railroad Com
pany having failed to pay the inter
est on its bonds indorsed by The
State', I ordered all the property of
tho same to be seized and taken pos
session of on the 2:kl day of April,
1874, and appointed Edward A. Flew
ellen, Hiqierintcndent of Public
Works, as agent of the State, to
manage and control the same. Tire
law under which the seizure was
made requires the Governor to hold
the property at least -ix months be
fore offering it for sale, anil the seiz
ure having been made tiie latter part
of April, no sale could therefore be
made earlier than November. The
road has not been sold for the reason
that it wus not believed that any
thing approaching its value could be
obtained in the present condition of
the money market. It is hoped,
however. Dial this state of things
w ill not continue long, ami that some
arrangement may lie made by which
the property can lie disposed of with
out great loss to the public treasury.
The loud sustained serious damage
the past year from freshets, and the
repairs rendered necessary in conse
quence thereof, made it impractica
ble for the agent to apply any part of
the earnings to the |siy meet of the
iuterest on the endorsed bonds. It
is not probable that the future earn
ings of the road will be sufficient to
meet f ids interest. It will be neces
sary, therefore, for the Legislature,
at the present session, to make pro
vision for its payment.
MRMPHIH BRANCH RAILROAD.
The Memphis Branch Railroad
Company having completed and
equipped the first section of five
• miles of itq road, as required by the
act entitling the company to the aid
of tile State, applied for the endurse
[ merit of its bonds in May last. After
causing a thorough examination of
the affairs of the company to be
made, I placed tire State s guaranty
mi its bonds to the amount of *34,ixxj,
this being one-half of the value and
-cost of the sect! on completed and
equipped. This section of the road was
finished, and the application for the
State's indorsement was made, be
fore Die passage of the act
was approved February 25, 1874, re
pealing the provisions of the several
railroad charters thertofore granted, .
which gave State aid to such enter
prises. In my judgment, the appli
cation came within Dio saving oper
ation of that clause of said last
named act, which provides that any j
conqKUiy which lias alfeaffly acquired
a vested light to the aid of the State,
should not be affected by the act.
It may be added that the Conimis- j
sionors who the road re
ported tiiat more tliiin #lixi,(KX) had j
been in good faith invested in said 1
company by private individuals, and !
that satisfactory evidence was exhib
ited, showing that there was no lien
or incumbrance upon the projierty of
the company which could endanger
the prior lien of the State.
STATE AH).
Reflection lias satisfied me tiiat ad- :
ditional legislation is required to
check the evils likely to How from
tiie unwise policy of granting the aid
of the State toworjjj* of internal im- !
provoment. Experience' hao shown !
that it is almost impossible to so!
guard the public interest as to!
prevent injury to f he same under
those grants. The larger tsirtiou of
our financial troubles of late years
maybe traced directly to this mis
chievous policy. The act ap
proved February 25, 1874. repealed all
existing railway charters, so far as
the same provided for State aid, ex
cept In cases where the right to the
samo hail already become vested.
What would amount, under the law,
to a Vested right, is a mooted ques
tion. It has already been claimed
that the mere acceptance of the
charter by the company, without
more, would have the legal effect of
vesting the right to the nid there-;
in granted. If this claim should be j
allowed by the courts, the object;
sought to bo accomplished by the |
act would bo entirely defeated, j
The Code, however, as will be seen I
by reference to section 1682,1
jiuthorii* the' withdrawal by (lie
State' of the franchises granted In cer
tain lutsis. Indeed, the franchises
granted to railway minplinirs, smeo
the enactment of this Wirt of the
Code werftgrantcd, and accepted sub
ject'to the right or withdrawal, un
less otherwise expressly provided I
would, therefore, recommend that in
all cases whore Die .sumo can lie done,
the franchises to those railroad com
panies whose charters make prqvi*-
foh for State aid, lie withdrawn by
legislative enactment, unless they
shall, within prescribed time, re
nounce all right to claim or receive
the aid granted in their several char
ters.
STATE rSIVERSTTY.
The report of the Board of Trustees
of the State University shows that
the receipts from ull 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 tiie devo
tion of the students to their studies,
during the lasf collegiate year, is
highly commended. The number of
new students received the present
year lias exceeded anything iu the
experience of tho past.
I invite attention to the report of the
Board of Visitors, who attended the
examination of t he Senior Glass, j u ior
to the last commencement. This re
port is very full, and the thorough
ness with which the board discharged
Its duties reflects groat credit upon its
members. Attention is called by the
board to a delect in the law prescrib
ing its duties. Tho law requires no
more than that the board snail “at
tend the University examination pre
ceding the annual commencement,
and report to the Governor the char
acter of such examination.'.’ The
powers given to the bonrd are not
broad enough to give value to iis re
ports. Authority sly mid be given to
extend its investigations to every mat
ter affecting the interest of the Uni
versity. It is thus only that tin* ee
|Mirt of the Visitors can lie made a
channel through which the General
Assembly may receive trustworthy
information touching the condition
and wants of the University. I recom
mend that tiie law be amended as
here indicated.
I further suggest that inquiry be
made into the propriety of proriding
for a thorough re-organizatmn of tiie
University. As ut present constitu
ted, the Board of Trustees consists of
thirty-five members-a larger number,
as I am advised, than com {Rises a sim
ilar organization in this or any other
country. The body Is too large, lor of
cleuey- besides, its members arc ap
pointed fbilifc. and thus,ln sonic mea
sure,are left without that sense of iv
sixmsibility which experience proves
is necessary to secure diligence and
faithfulness in place* of trust. In my
judgment, the-offices of fhe 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
appointment should be made in the
manner which would most certainly
secure men of enlarged views, and
oT general fitness 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 bo
appointed respectively for two, four
and six years. Thus, every two years,
there would lie three vacancies in the
Board. This provision would pre
vent the making of sudden, radical
changes in the management of the
University, and at the same time,
would secure a sense of responsibil
ity uiion the part of the Trustee.-,.
The Board ought to be held direrily
responsible to the General A ;sembly,
and to that end. they should lie re
quired to make out and submit full
annual reports of their proceedings,
and of tiie eunditiuii of the Univer
sity.
The changes Just suggested would,
in my opinion, greatly advance rite
cause of University education in the
State. Tiie institution would draw
around it the sympathy and support
~f all tie' best, men <>f the State, and
the representatives of the {icople
would not hesitate to make nil need
ful appropriations for its support and
advancement. The people of the
State desire to see their University
glow and expand, and they fully as
seut to the truth of the maxim, tiiat
the greatness of a State depends
tijion, and is proportionate to, the
higher,’duration of its people.
ATLANTV UNIVERSITY.
By an act approved March 3. 1874.
the sum of *s,(xxi was annually ap
propriated to the Atlanta University,
upon condition that the institution
should admit for instruction as many
colored pupils from eaeli county iii
the State, free of charge, for tuition,
as there are or may tie members of
the House of Representatives from
eaeli county, to be nominated by said
members respectively,so long assaid
appropriation continues. The Gov
ernor is inhibited from drawing his
warrant for the said sum, until the
Trustees of said institution shall have
submitted apian for tiie expenditure
of the same to a Board of Commission
ers, consisting of the Chancellor of
the State' University and two mem
bers of the Facility of the same, and
until such plan snail have been ap
proved by them oqct} yuqr in writing,
and filed in the Executive office. The
condition u|M>n which a warrant was
to be given for the appropriation,
having been complied with, the
amount for the past year was paid
ever to the President of the Universi
ty. The report of the committee,
whose duty it was to visit this insti
tution, will be found acconffianying
this communication.
COMMON SCHOOLS.
The report of the School Commis
sioner shows that, there is a school
; organization in every county in the
State, and that public schools have
! been in actual ojierution In one hun
dred and twenty-live counties the
I *ast year. A growing interest in the
, schools is manifested, and there lias
! been a marked change in public opin
ion in favor of the present system.
‘Tho Commissioner dlreut.-, attention
j to the fact that there are $350,090 of
| school bonds now in the hands of the
Secretary of State, and claims that
ttie interest on these bonds from Oc
tober 13, 1870, to October 1. 1874,
, amounting to $84,000, is a debt due
from the State to in* department; and
he asks that the Legislature take
I some action recognizing the validity
of the claim.
The net amount of the school fund,
! collected from all sources, from the
adoption of the present Constitution
down to December t. 1873, was $489,-
I 7 22 12. The suigs oq|]i;otod since the
last mentioned date amount to SIBO,-
183 90 and tho disbursements to $109,-
071 84.
The whole amount of poll tux as
sessed for the year 1874, aad which by
act of February 28, 1x74, is retained
in the counties, was *199,550. Of this
amount the Comptroller General esti
mates that the sum of $133,000 has
been collected.
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
1 suggest that the law prescribing the
mode in which the school fund shall
be paid over to County School Com
missioners be amended as is recom
mended in the report. Such pay
ments are at present required to be ■
made at the State Treasury. Bv the
amendment recommended.’the funds
[due tb each comity would be paid
ov directly by tiie Tax ('.ill, ,
the t'minty Bchoul (’omniissi,,
this urrnnKFinont tho i. () i| 1 ,, 1 1 11
the County School (’„mmissi?: L
would be much simplifi,-,!
cost of transmitting tiie 11 ;i
arid from the State To ,hi,-,' 1 ”
lie saved.
i concur fully in the
pressyd l>,v the Commissi,,!,,!, ,
effect that Die ant of the |„q " •
•\ MS si‘c ,ll - v ’ o'Yingan auntiid -i,!',!' :i "
of sS.OOU to the vilunla {•,,;- ",
should be r til leak'd. The
well as tin* white people ~f ,
should be educated, and to ;
the tax fiaycrs are willin 't ~. 7 :
ute to the extant of their iibilliv ,
cannot reasonably be expects*) Y ,
ever, tiiat. the class upon xvlji!{,'■ ’
burden of taxation chiefly rup
consent to support an 'iu.,tiu r "
wherein the mischievous iloctri.,,
social equality is practjcaljv in,.;"
tod. The wishes and feelings oft),
upon whom rests the burthen ~f" '
porting the Guverumeut sin,,,
consulted in this us well as all,', '
matters affecting the puldie inte, '
By reference to the ’
of the Board of Visitors : r
attended the annual exumimitlnr,
this Institution.it will also s „
that some system of theol,„e
taught therein. Adopting the ,
pertinent inquiry of the Board v
theology is it- that is taught y \\ 7
out waiting for a reply tu thi-,
tion, it may safely beassmn,,|Y,.'
the teachings upon this subj.-.-t ■
sectarian in their character 7
Constitution of the State inhibit, ,j
granting of a donation orgnituiu'[
the Legislature to any seetariui,'
{virntion or association. It m-7
nccessnrv to add that the spi's,".
not the letter, of this eunstitut,
provision would be violated i,v7 '
tinning the appropriation un i,', 7
slderatinn to this institution it
recognizing the duty resting
the public to provide for theea,!„
tion of the colored people, f.,
fully submit the views expn -- ':
the State School Commissi, n,.-'
tliis subject, with the recount,,,;-.:
tion tiiat they l*e favorably eon-.;,
ed by the General Assembly,
DEPARTMENT OF AORKTLU ln
I transmit herewith the first tun ,
report of the Commissioner ~f \-
culture. This department wtt.
ated by tiie act approved Fcbu,.:
20, 1374, but the Commissioner
not appointed until the 26th da
■ August last. As soon os tipjioii.:
however, lie entered enerpti--.,
Ilf ml) the discharge of his duties,
1 uis already succeeded in urgnuu....
hsi department and placing it in th
ough working order. The materi:-
necessary fertile hand-book re pu:
by the act arc being collected, ,
specimen, showing the iimim,.
which this valuable work is u.
prepared, will soon be ready !■-;
livery. A laboratory has L-! n ii,;.
tq, at the Capitol and furnish- !
elicinictil apparatus suitable f,,i
ducting analyses of soils and
orals. Tin: roll's prescribed fm
ducting these analyses, it is ,
ilently believed, will be effi-c;.
securing results of great i*r;i
benefit to our agricultural inter,-'
An accurate knowledge of it
tion and wants must tiivi -
tiie basis of all improvement in
agriculture. Recognizing this tn,
the (.'-umiuissiouer lias urmng,
system for the collection of n~,
statistical information. !i
aiready gathered a mass of value
facts, showing the present condit:
of our agricultural iubor s> st",
amount of home suppliuu pi" it,
and the general conduct and nm:;..
meat, of our husbandry.
The Legislature, in e.-stabli-tii
this department., tuuk a step in
right direction, and, in my judg i
tie' future material prosperitv
.State will depend, in a large
arc, upon the manner in wlnV:
may U fostered and sustained.
•Tiulgiug from what lia
a I ready achieved. I think it m,-iv
safely predicted that, under th- .
managemont of tiie G’omni;--:
this department will soon entiti,
self to the confidence and {i niue,
support of tiie {icople.
OiQWOrOAL SURVEY.
The office of State Geologist ■
ated by an act approved Februarv i
1874. has been conferred tijum l
George Little, who held, at the :
of liis rtpjiointraent, a profe.-- -
in the University of the State nf Ml
sissippi. This officer, after orsxi..
iug his department, entered at,,:
lffion the discharge of hi- hi':
Taking the field late in the fall, r
a hurried preparation, he Inis tr.
ersed nearly the whole "f uorlli* ' -
ern Georgia beyond t.lic < 'Juitta
chee, ami has already mad" a Ik ■
euliectiou of siieeinxens, showiiiv
geological and miueralogical
actor of a number of the • -
embraced in that section. Th" In’
motion contained in bis ropirt, lie
with transmitted, is very vaiio
and the attention of tiie Gem n,
scnildy is specially directed tin:
I tliink it is not toi, much t->
behalf of this officer, that tin-te
tits expected by the people of b
gia from the iqs-ratious of tld
iiartment of the public servi'’-.
be fully realized under its pr if
telligent and energetic manag' iK'
Believing that the work t lips une
taken will, when completed,
incalculable value to the ;s• ■• { 1
♦tic State, I earnestly recemni
such appropriation be made Unx
as may lie deemed necessary f
energetic prosecution.
Lt'SATJC ASVI.IM.
The report of the Trustee- ■■!
Lunatic Asylum exhibits full;
particularly the condition nml
age meet of the institution during’ :
past \ ear. Its official organize
reported good, and all Its affair
been conducted with a just an 1
i sonable economy. For reason--
tod in the report, the amount jig
printed for the supiort of tic r -
tion the present year should hr :
than that given for a similar 1*0!'
lust year. The suggestion • '
Trustees upon tills subject niie
my judgment, bo safely adopt'*]. ■
I respectfully recommend tiia
amount asked for be given c
cate vouchers for the expenditur'-
last year have been regulat'd
warded, as the law requires, ana
ready for insertion by the r :
committee of the General As-
ACADEMV foe the bund.
The report of tire Trustees ■
Academy for the Blind set- f :
administration of the affairs 1 ’ ,
institution during the past year. ■
reasons stated by thoSuperiuteji;.
a larger sunt may, b<: !•< 1
support <jf fije qca’ftrqy flu,i", '•
than was appropriated for tntj...
pose last year. The it" 1 ’"' 111 ]
such additional appropriate 1
presume, be inquired into, .'e" " "
to usage, through a visiting
tee, appointed by the General A"
bly. I respectfully reoonuneti'i
whatever amount mar be fua , ,
essary to secure the comfort
pupils and to promote the cnt I '.
of the institution be supplied
DF.AF AND DrMB ASTI-I'M.
Herewith transmitted will ./
tile annual re; ort of the b" : r .
Commissioners of the insUtnu 1 ’ 1 ;,,'
the education of the Deaf ana i
It is suggested in the report '
same amount as that annuel'; _>n .
printed in previous years, viz:
will not tie sufficient to i"'";.
wants of the institution the 1
year, and an appropriation of
Is asked for. The Board also #