344 



GEORGIA. 



GEORGIA. After the inauguration of 

 James Milton Smith, the new Democratic Gov- 

 ernor of Georgia, chosen by a special election 

 to succeed Bullock, the Legislature remained 

 in session a few days, and then adjourned to 

 the 17th of July. The most important busi- 

 ness of the adjourned session was to receive 

 and act upon the reports of the several in- 

 vestigating committees appointed in the win- 

 ter. First came the report of the committee 

 appointed to "ascertain and report the num- 

 ber of bonds and indorsements which had 

 been issued and put into circulation by Rufus 

 B. Bullock, late Governor; the aggregate 

 amount thereof, by whom the same were sold, 

 the amount of money paid therefor, the times 

 when and the persons to whom such pay- 

 ments were made, and all other facts con- 

 nected with the history of said bonds." It 

 covered 200 printed pages, and gave a com- 

 plete history of the issuing, negotiating, and 

 indorsing of bonds by the State authorities. 

 The amount of the bonds was stated as fol- 

 lows: 



Biinbridge, Cuthbert & Columbus Railroad.. " 600.000 



Macon & Brunswick Railroad 600,000 



Cherokee Railroad 300,000 



Cartersville & Van Wert Railroad 275,000 



South Georgia & Florida Railroad 464,000 



Alabama & Chattanooga Railroad 194,000 



Grand total indorsed bonds $5,733,000 



Grand total State bonds 12,450,000 



Grand total State bonds and indorsed bonds.. $18,183,000 

 The following is a summary of the impor- 

 tant statements of the committee concerning 

 these bonds: The Alabama & Chattanooga 

 Railroad bonds to the amount of $194,000 

 were indorsed by Bullock. Thirty bonds sold 

 at from 90 to 94| cents, and 164 were hypoth- 

 ecated to New 'York Warehouse Company 

 for $100,000 by the railroad company. The 

 committee recognize these bonds as good. 

 The Bainbridge, Cuthbert & Columbus Rail- 

 road issued $600,000 of bonds, of which $240,- 

 000 were indorsed by Bullock without the 

 signature of the Secretary of State, who was to 

 sign them when twenty miles were done. Fifty 

 miles were graded, but none ironed. These 

 bonds are void. The Brunswick & Albany 

 Railroad had $3,300.000 indorsed bonds, and 

 $1,880,000 gold State bonds. The road cost 

 $20,000 per mile. The road was in operation 65 

 miles in 1863. The indorsements were given in 



every case before the lawful amount of road 

 was completed. Bonds were issued fifteen or 

 twenty miles in advance. There was no in- 

 vestment of private parties in the road. Cer- 

 tificates were prepared in blank by the en- 

 gineer and filled at pleasure. All of the bonds 

 were indorsed by Governor Bullock without 

 date. Some 1,680 bonds were signed by Frost 

 after he ceased to be president of the road. 

 For $1,125,000 of the bonds there is no road 

 to show. There are $3,000,000 of debt against 

 the road. The committee decides the whole 

 of these bonds invalid. The Macon & Bruns- 

 wick road has had $2,550,000 bonds indorsed, 

 of which $2,100,000 were under the present 

 constitution, for which there is an equivalent 

 of private investment, but not for the $45.0,000. 

 The committee makes no recommendation. 

 These bonds brought from sixty cents to par. 

 The Cartersville & Van Wert Railroad has two 

 sets of indorsed bonds for the same miles, 

 $275,000 in one batch and $300,000 in the 

 other, both out. The testimony shows that 

 the road was not built when the bonds were 

 indorsed. The committee report these bonds 

 void. 



Two million currency bonds were issued to 

 raise money on temporarily. Three million 

 gold bonds were afterward issued to pay the 

 money. Only a portion of the currency bonds 

 were surrendered, and those were used by 

 Mr. H. I. Kimball, the agent of the State, in 

 negotiating the substitution, to borrow money 

 on. The State got none of the money. The 

 committee report these bonds as of no force. 

 The gold bonds were $3,000,000. Kimball 

 got $250,000 for the opera-house ; James 

 $100,000 for the Executive mansion ; Henry 

 Clews had $102,000 unsold ; $300,000 have 

 been returned to the Treasury, and $2,- 

 598,000 were sold and hypothecated. Of this 

 last sum Clews sold $1,650,000, and Kim- 

 ball manipulated the rest. Clews got $1,432,- 

 250 for his bonds, and paid $370,000 on old 

 bonds, $100,000 on State Road bonds, $609,- 

 192.78 on drafts and notes of Bullock and Foster 

 Blodgett, on account of State Road, $198,700 

 to the National Bank, and $254,000 for ex- 

 penses and fees. The money paid on Bullock's 

 and Blodgett's drafts was misappropriated, and 

 Clews did not get the gold bonds as collateral 

 security but for sale. The money raised by 

 Kimball on these bonds cannot be estimated. 

 The committee recommends all these gold 

 bonds to be paid, as Bullock was not restricted 

 by law as to their issue. The gold bonds held 

 by Clews are illegally in his hands, in the 

 opinion of the committee. 



The South Georgia & Florida Railroad 

 $464,000 bonds are declared properly in- 

 dorsed. 



The State Road mortgage b0nds, to the sum 

 of $614,000, issued by Ex-Governor Jenkina 

 and used by Bullock, are valid. 



With, the report the committee submitted 

 bills to the following effect: 



