New Orleans Republican., 1872-07-30
Bullock and the Georgia Frauds.

From the New York Tribune.]
The Georgia Legislature is now in session,
and the report of the investigating commit
tee which lately held sessions in this CITY
to register the bonds issued under the ad-
ministration of Governor Bullock, will re-
veal to the people of the State how their
local Tweeds have swindled them out of
several millions of dollars.
At the time the committee was in session
in this city numerous inquiries were made
both here and elsewhere Tor xGOvernOr
Bullock and Messrs II. l. and Z. w. Kim
ball, lately engaged as brokers and con.
tractors in Broad street, but without avail,
and these gentlemen have mysteriOusly dis
appeared. They were lately in conceal
ment at Buffalo, a convenient distance from
the Canadian frontier. The reasons winch
impel them to a continued absence from
their accustomed haunts will appear in the
report of the investigating committee. Its
principal features are embodied iusthe fol-
lowing statement, obtained from members
of the commission, which, it will be remem-
bered held secret sessions.
At different times within the past two
years there had been reports of alleged
frauds perpetrated upon the State of GeOr-
gia during the administration OF Governor
Bullock, but the information concerning
the extent and character of these frauds
was vague and unsatisfactory, and the ru-
mOrs were not traceable 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 tinan-
cial condition Of the State, and of ascer-
tanning precisely how many and what bonds
for which the State could be held respOn-
sible have been negotiated here. After the
committee had ended its labOrs, the chair
man, the Hon. L. +. Simmons, remained to
await the arrival of witnesses from the
West, whose testimony was considered i'm
pOrtant Enough is known of the evidence
taken to make it apparent that the frauds
perpetrated on the State are gigantic, and
though exceeded in amount by the Tam
many frauds in this city, equal them in
audacity and Tecklessness.
The Investigation has brought fully to
light what was before surmised, that Gov
ernor Bullock was the head Of ring, the
members of which cOnspired together for
the purpose of robbing the State. The
frauds were perpetrated by the issue Of
State and railroad bonds, the latter being
the most approved and successful method.
By an act of the Legislature, nOmihally de-
signed TOR the purpose of developing the
State, the building of new railroads was
encouraged by the State giving to the
bonds of such roads its Endorsement, such
Endorsement being due on certificate Of ithe
State engineer of the completion and equip
ment of sections of five or ten miles. The
law also required that the company build
ing road should have invested in it an
amount per mile equal to the amount for
which the State indOrsed. Thus the in
doIsement on the bond was equivalent to a
mortgage on the road, the State being Sc
cured, under honest management, by the
completed road and by the actual invest
ment of the railroad company of at least as
10, AY1TaTa 1nnA hvrNI NI,o
State.
With such safeguards it is evident the
State could only be defrauded by means of
officials to issue the bonds, and a cOnve-
nient agent like Kimball to dispose of them
to the best advantage in the market.
The Augusta CO1tStjtttiOnGtjSt refers as
follows to the report of the Georgia bond
committee:
The report covers 200 printed pages, and
is a history of thorough investigation Of
BullOck's INSCRIPTIONS fnanciering. The
report makes BullOck's administration fully
as bad as was expected, showing the reck-
less disregard of law in the issuance of
bonds. The report is accompanied by bills
repudiating the Brunswick and Albany
bonds, Brunswick and Albany gold bonds,
Cartersville and Van Wort bonds, and Balm
bridge, Cuthbert and Columbus bonds,
and declaring all null and void; also, bill
declaring void 100 gold bonds held by Hen
ry Clews. Resolutions were introduced
recognizing the validity of the quarterly
gold bonds issued under act Of the fifteenth
Septem Der, 1870; that bonds hypOtlecated
be redeemed by payment of the borrowed
money; that the Endorsement of the South
Georgia and Florida railroad bonds and of
the Alabama and Chattanooga railroad
bonds is valid; also that currency bonds IS
sued August 1870, having been Cancelled
by gold bonds, are not binding. The Gov
ernOr and treasurer are forbid paying the
interest or principal of any of the bonds
declared invalid.
This is said to be the first instance Ofre-
pudiation on the part of the South of the
financial obligations imposed upon that sec
ton by the various carpet bag governments
that took possession of the several States
subsequent to the war, and in view of the
examples it offers, has great significance.