Below is the OCR text representation for this newspapers page.

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 Hardeman, W. D. Anderson, of Cobb, having previously withdrawn from the con test.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 #