New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-07-25
A CARPET-BAGGERS' RING.
MILLIONS OF GEORGIA BONDS NEGOTIATED
IN THIS CITY.

The Georgia Legislature is now III session,
and the report Of the Investigating Committee which
istey held in this city TO register the bonds
Issued under the Administration OF Gov Bullock VIII
reveal TO the people of the State how their local Tweeds
have swinded them out Of several millions of dollars
At the time the Committee in session In this city
numerous inquiries were made both here and elsewhere
for ex-Goy. Bullock and Messrs II. l. and E. W. Kim
ball. lately engaged brokers and contractors in Broad
st. but without avail, and these gentlemen have mys-
leriously disappeared They were lately in eonceai-
nent mt Buffalo. convenient distance from the Cana
dian frontier. The which impel them To con-
lnued absence from their accustomed haunts VIII APP
pear In the report of the Investigating COMMITTEE lts
principal features are embodied In the following sa'o
ment. obtained from members Of the COMMISSION
which. II will he remembered. held secret sessions
AT different times within the past two years
there had been reports Of alleged frauds perpe-
rated upon the State of Georgia during the ad-
oinistratien OF Gov. Bullock, hut the information
concerning the extent and character OF these frauds
was vague and unsatisfactory, and the rumors
we're not ira ,eabe to any trustworthy source. During
the month Of April the Committee from the Georgia
Legislature alluded TO held its sessions in this city for
the purpose of investigating the financial condition OF
the State and Of ascertainng precisely how many and
what bonds for which the State could be held response
BILE have been negotiated here. After the Committee
had ended its labors the Chairman the Hon. 7. f. Sim
MONS remained to await the arrival Of witnesses from
the West whose testimony was considered important.
Enough known Of the evidence taken to make II APP
parent that the frauds perpetrated the State g
santic and though exceeded in amount by the TammanY
frauds of this city equal them in audacity and reckless
The Investigation has brought fully 70 light, what was
before surmised, that Gov. Bullock was the head OF
ring the members Of which conspred together for the
purpose Of rObbng the State. The frauds were perpe-
rated by the issue of state and railroad bonds the lat
ter being approved and successful method By
a act Of the Legislature nominaly designed for the
purpose Of developing the State, the building OF new
railroads encouraged by the State giving to the
bonds OF such roads its Endorsement, such indorse-
nent being due certificate Of the State En-
Kneer of the completion and egupmentl Of sections Of
ave or ten miles. The law also required that the com
pany building road should have invested IN II an
amount per mile equal TO the amount for which the State
ndorsed Thus the Endorsement the bond was equiv
aent mortgage the road the State being secured,
under cement by the completed road and by
he actual investment Of the railroad company of at
east large amount was furnished by the State
With such safeguards 1t is evident the State could only
be defrauded by Of officials to issue the bonds,
and convenient agent like Kmbal to dispose OF them
10 the best advantage in the market.
The manner in which the Bullock Ring operated
best be shown by giving the facts in relation
the different roads; facts obtained from official
sources. and for all of which the proof is now in the
hands Of the Georgia Committee.
A 5000 900 RAILROAD JOB.
charter obtained for the Brunswick and Albany
Railroad, TO connect Brunswick and Eufala distance
Of 2l3 miles. For this road the State agreed,
On the completion and equipment OF sections
IF ten miles 70 indOrse tho bonds of the
road to the amount of $4,000 per mile. H. l. Kimban
was President and of the contractors OF the road
Before this road completed for half its proposed
engh over S5OOOOOO worth Of bonds had been issued.
These bonds issued by the railroad company regu
ary Endorsed by the Governor and Secretary Of State
the great seal of the State Affixed aud then were neeo
N city DartlV nv Henry CleW5 x Co. anu
partly by H. L. Kmball.
A $4,000 FRAUD.
The Cartersville and Van WOrt-nOw The Cherokee
Railroad furnishes another illustration Of the method Of
operating and the opinion expressed by one of the
Committee that the knowledge OF the facts In this case
would bring OF envy to the eyes OF Tweed" This
road was chartered 1862 the state agreeing to give its
the amount OF S25O0 per mile the total length OF
the road being % miles, and the aid TO be furnished as
sections Of five miles completed and duly certified
to by the State Engineer Before 81 miles we're COM
peted bonds TO the OF S75O0o issued by the
road, signed by the Governor, and negotiated by Mr.
Clews who secretary Of the road Several months
sitter the aforementioned s275OCO were ne
gotiaed the Ring became dissatisfied with the name OF
road and accordingly applied to the Legislature, and
had il changed to "The Cherokee Railroad" There
upon, new bonds struck of to the amount OF
100000 precisely the same proposed road for which
the s25OO had already been issued and negotiated thus
making s575OOO which the State has Endorsed for road
miles length only nine miles OF which. at the time
Of this second ISSUE had been completed The second
negotiated in this city by II. l. Kimball the
President whO at present like Gov Bullock is missing
The completed nine miles being of the usual
railroad gauge. and the remaining IA miles OF narrow
gauge feet 6inches-thus making portion only of the
line available for ordinary while the larger part Of
1t entirely different character and of far less
valuable form Of construction.
THIRD swISDLE.
The third road upon which similar swindle was per-
tod tbp Raj Cuthbert and COlumbua
Railroad, Of which KimbaIl also President. For
this road the State agreed to indOrse bonds to the
amount OF s25OO per mile the completion OF ten mile
sections the stipulation being that before the issue Of
the bonds, said sections should be built and fully
equipped Before however single foot Of the road had
built Gov. Bullock Endorsed bonds TO the amount Of
t240O0 Indeed the secretary OF the road teses that
the amount issued and Endorsed by the Governor was
100000 although the Committee have only succeeded in
finding $4,000 These bonds were negotiated by KIM
GOLD BONDS ISSUED.
Not content with the profits accrung from the faudu
lent OF railroad bonds the Ring further vctmized
the State by of State gold bonds BY act of
Bullocks Legislature he authorized TO issue gold
bonds any amount he it, for the nominal purpose
of paying the members Of the Legislature the amount
required being about 100000 Taking advantage Of this
license Bullock issued bonds to the extent of 50 100000
and had another million ready for issue when he was
stopped by the action of the State Treasurer OF these
bonds 100000 were negotiated by Mr. Cews at 90
on the dollar The remaining million hypothecated
by Bullock with Russell Sage and the Fourth National
Bank collateral the proceeds OF which have yet been
traced As delay occurred the Issue of the gold
bonds while waiting for the bonds 10 be engraved Bull
TO the extent of 100000 The name OF the State
Ire asuer Dr. Angler Autographed on these notes
isteneo OF the ne immediately exposed fraud,
whereupon the report made By the Governor that
recalled and Cancelled soon as the gold bonds were
Of fbe