372 



FLORIDA. 



exchanged for former indebtedness. Of the re- 

 mainder, $413,000 were hypothecated in New 

 York in 1869 for temporary loans amounting 

 in the aggregate to about $100,000. 



In 1871, $350,000 of 7 per cent, bonds were 

 issued under a law which was passed over the 

 Governor's veto, and the bonds were absorbed 

 in redeeming the floating debt of the State. 



At an extra session of the Legislature, called 

 by Governor Hart for the special purpose, one 

 million dollars more bonds were issued, five 

 hundred thousand of which were directed to 

 be used for the exchange for and redemption 

 of the valid bonds of the State outstanding, 

 " except the bonds of 1871 and the hypothe- 

 cated bonds of 1868 and 1869." 



The remaining five hundred thousand were 

 directed *'to be sold by the Governor and 

 Comptroller at New York or elsewhere, as 

 might be deemed best for the interests of the 

 State, at a sum not less than eighty cents net 

 on the dollar, United States currency, but in 

 no case to be hypothecated; and out of the 

 proceeds, to be deposited with the Treasurer, 

 or to his order, the Treasurer shall first pay 

 the amount necessary to redeem the bonds of 

 1868 and 1869 under hypothecation, and next 

 pay the indebtedness of the State accruing 

 after the first day of July next ensuing." The 

 law also provided that " in no event shall any 

 agent be employed in negotiation and sale of 

 said bonds," and it prohibited the levying of 

 any tax for interest until one fourth of the 

 bonds were sold. In these particulars this law 

 was violated: First, in appointing an agent in 

 New York for the sale of the bonds ; second, 

 in not selling the first quarter million bonds 

 for cash and depositing the money with the 

 State Treasurer, or to his order, as required in 

 the law as a condition precedent to a levy of a 

 tax for the interest ; and, third, in exchanging 

 the bonds for the hypothecated bonds of 1863 

 and 1869. The committee said : 



We are of tho opinion that the passage of the law 

 was procured through the influence of a firm of New 

 York brokers, L. P. Bayne & Co., who were in per- 

 sonal attendance at Tallahassee, with two attorneys ; 

 and who, failing to get a bill passed directly authoriz- 

 ing the employment of an agent, at a commission ot 

 five per cent., for the sale of the bonds, procured from 

 Governor Hart the calling of an extra session of the 

 Legislature and the passage of the present law, with 

 an understanding afterward carried out that Bayne 

 & Co. were to have enough bonds to pay their claim 

 against the President of the Jacksonville, Pensacola, 

 and Mobile Eailroad Company in exchange for the hy- 

 pothecated bonds of 1868 and 1809, held by them for 

 money advanced, or said to have been advanced, to 

 the said President, and also have the control of the 

 half million of bonds authorized to be sold, for a spe- 

 cific time, which enabled them to obtain the $80,000 

 from the sale of the Agricultural College scrip which 

 had been negotiated, and thus to carry out the con- 

 tract to take the quarter million bonds necessary to 

 enable the Comptroller to levy the tax for interest on 

 the bonds. Of the avails of this quarter million 

 bonds, less than $10.000 was paid into the Treasury, 

 the remainder being disposed of hi violation of law. 



By this conspiracy between the Comptroller and L. 

 P. Bayne & Co., to which the Governor afterward 

 became a party, we find that the State was defrauded 



of over $100,000 in the bonds of 1873, and we there- 

 fore recommend the passage of the accompanying reso- 

 lution : 



Resolved. That the Attorney-General is hereby di- 

 rected to examine into the circumstances of the origin 

 and disposition of the bonds issued in 1873, and to 

 ascertain whether suits should not be instituted 

 against the late Comptroller, C. A. Cowgill, and L. 

 P. Bayne & Co., for the recovery of the amount of 

 the bonds illegally sold, and also for conspiracy to 

 defraud the State. 



The resolution was adopted by the Legisla- 

 ture. 



An act was passed fixing the rate of taxa- 

 tion for 1879 and 1880 at seven mills. For 

 ordinary county purposes it was fixed at two 

 mills, with a proviso that it might be raised to 

 four mills if it was proposed by a grand jury 

 of the county. 



The State Comptroller estimated the amount 

 required for the expenses of 1879 to be $284,- 

 303. In making up this amount he estimated 

 as outstanding jurors' and witnesses' certificates 

 issued between 1867 and 1877, amounting to 

 $44,706. This was receivable for taxes, and it 

 was expected an amount equal to $10,000 would 

 thus come in. Still, as other items of expense 

 outside of his estimate might be added by the 

 Legislature, it was concluded that his estimate 

 was low enough. 



The following were the sources of revenue 

 from which it was expected to meet the wants 

 of 1879 : There were first the uncollected taxes 

 of 1878. The gross assessment for that year- 

 was $147,356 ; deducting 10 per cent, for fail- 

 ures to pay, leaves as net $132,621, of which 

 $9,195 was collected and paid in 1878, which 

 left to be collected on the 1st of January, 1879, 

 $123,426. Again in 1878 there was received 

 as back taxes $26,820, and it was anticipated 

 an equal amount would be received in 1879. 

 The licenses collected in 1877 amounted to 

 $59,985.03; in 1878 the receipts were $55,- 

 804.01, showing a falling off of $4,181.02. A 

 proposed change in the license law was expect- 

 ed to increase the income from this source and 

 make the receipts for 1879 reach $65,000. The 

 change proposed in the liquor law put all those 

 persons who sold liquor by the quart on the 

 same footing with those who sold by the glass, 

 and each class is to be charged $100. In 1877 

 there were estimated to be 172 retail dealers 

 and 191 wholesale dealers in the State, and 

 this was the number of licenses issued respec- 

 tively during that year. 



The miscellaneous sources of revenue include 

 an auction-tax, tax from commissions, redemp- 

 tion of lands sold for taxes, etc. In 1878 the 

 receipts from this source were $5,162, and the 

 same amount would probably be received in 

 1879. The tax-box of 1878 returns 43,100 polls, 

 on which thera is a tax of one dollar. The 

 State is entitled to one half this tax, and the 

 counties to the other half. But only property- 

 owners pay the tax, so that the amount likely to 

 be received by the State is estimated at $8,000. 

 The only remaining source of income available 

 to meet the expenses of 1879 will be the small 



