The weekly Floridian. [volume] (Tallahassee, Fla.) 1867-19??, 1881-03-15


rency the word is often used in regard ordinary transactions
among include exchange for consideration whether
in money or other valuable thing This is not necessarily
barter and not sale One may sell his horse for agreed
amount and receive in payment note of the buyer of
third person If part Of these bonds had been sold for
money! but the half million of due bonds had been dcv
cred the Comptroller in exchange for the bonds
this in the contemplation Of the Legislature sale of the
bonds?
"Dd the Legislature intend that in taking up the old
bearing bonds and giving exchange the bonds that the
holders should have interest principal upon the
bonds unless certain other portion should be sold for money!
Did they intend thus to practice Chnese sagacity and play
the game tckster upon the confidence of its creditors
The Committee conclude their report follows: eve
of the opinion that the passage of the law
procured through the influence of firm of New York
brokers, L. p Bayne Co, who were in personal
failing to get bill passed directly authorizing the employ
ment of agent commission Of FIVE per cent for the sale
of bonds from Governor Hart the calling of
session Legislature and the passage the present with
understanding afterwards carried that Bayne Co
have enough bonds pay their claims against President
of the jacksonville Pensacola Mobile Railroad Company
in exchange for the hypothecad bonds Of 1868 and 1869 held
by them for money advanced, or said -" ~ to
the said President, and also to have the con-.
lion of bonds authorized to be sold for specific time,
enabled them obtain the from the sale of the Agreu
ura College scrip which had been negotiated and thus carry
the contract take the quarter million bonds necessary
enable the Comptroller levy the the bonds
paid into the Treasury the remainder being disposed of in vo
aton of law BY this conspiracy between the Comptroller and
H. L. Bayne u Co., to which the Governor aterward became
party find the State deauded of 100000 in the
bonds of and that therefore, the passage of
the accompanying resolution
Resoved That the AtorneyGenera is hereby directed
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 against the late Comptroller c. A.
Cowgirl and L. T. Bayne Co., for the of the
Of the bonds illegally sold and also for conspiracy defraud
the State"
What influence L. p Bayne & Co. may have had with the
Legislature which passed the law of 1873 authorizing the issue
of bonds, am not prepared to say.
the 18th day of February 1873 the Senate passed bv
of IA to bill authorizing the issue of bonds but the
Legislature adjourned the succeeding day the Assembly did
not have time to act upon the Governor Hart imme
daey convened the Legislature in session. and Feb
ruary Goth urged the of the bill wise acu
lated the credit OF the State and became by
the vote of Is Senators in favor of its passage Senators
voting against it, and in the Assembly votes
II members voting against it. Thus the law passed
by the votes of prominent and intelligent of both
political parties and regarded presenting the best and
perhaps only way of eeemng credit and honor of the
State by relieving the hypohecated bonds funding the debt
and paying promptly the interest upon her bonds No bill
allowing FIVE cent to agent for the sale of bonds pre-
scented the Legislature of 1879 and negotiation concerning
the hypothecated bonds entered into with Bayne Co.
previous the passage of the law and neither Governor Hart
myself had the slightest understanding with
what course would be pursued when the bill should become
law.
After the passed Governor Hart and myself pro-
ceeded TO ascertain what amount would be
relieve the hypotheCated bonds.
The amounts due Mr. Lewis Of Tallahassee held eight
bonds and the Warehouse and Security Company of New
York holding O2 bonds, readily acertancd There WERE
however 29S bonds the possession Of L. p Baync Co. of
New York. held by them security money NJ
S. I1tefed, and when requested from Mr. Baync state
men OF his account against the State of Florida he replied that
he had account with the State of Florida that Mr. Little
field pledged the Florida bonds his property Mr.
Leed had taken coupons these bonds when hypohe
Gated them and had further authorized Bayne & Co. to sell
hem under certain contingencies at thrty-fve the
dollar Mr. Bayne claimed that Mr.. ltefed owed him
1900 upon these bonds
entire of the bonds were placed
the disposal Of Governor Reed by approved February
H. $780, requested Governor Reed to give all the nfoma
ton he possessed concerning them then informed by
Governor Reed and General Littlef - IN 1870 General
Littleheld contracted 10 purchase for q.
sold bonds at seventy five cents the doi."r,
pursuance of this agreement the bonds p'ocd IN
General LHLefel%s possession General I.efed claimed
that the State owed him $2O3,7573G, stated in an
be found Comptroes report on page H. Ap
pendix to Legislative Journal of 1879. This was
handed and discussed the presence of Governor Reed
and it appeared that the 25th of March, $780, there
loaned to Harrison Reed Governor 3G29 of which
port had been rendered to the Legislature any part
paid into the Treasury Mr. Ieed also charges State
the day with $l5000 said to have been paid relieve
certain of these bonds from attachment in the suit of Will
lard against Mr. Gamble Comptroller In this connection
refer you statement made by Governor Reed the Com
mttee in which he says that deny in my report that he
Governor Reed) had made any report the Legislature
regard the bonds of 1868 and 1862 This of Governor
Reeds reckless assertions for in my report Of s4 page of
Appendix to Legislative Journal of 1874 use the following
language
here call your attention. to report made by Goyeyuor
Reed to the Senate May 29h 1870 ouna Of Senate Extra
Session 1870 page 40 which states that Lefed relieved
his expense the attachment of Willard and also agreed
carry the whole amount of debt for which the bonds
hypothecaed at eight per cent interest," and yet General Lit
tleheld charged the State the time with ali the money
Vanced; and the $57O4O39 PAID by General lteheld
March 25h 1870 Souttcr & Co., and relieve attach
the bonds in Souers hands, and loan ITar
Reed Governor part of the money obtained the
day from Bayne Co. upon the hypothecaon of these
bonds Again. the part this report to the Senate
Governor Reed says when the bonds placed under his
there due upon them $O0 60 and adds
this has been increased by moneys drawn follows
"Drat of S. b. Conover in favor of Kirkscy 4 John
.............. .......... $52460
Commissions and interest paid New York Ware
house Company. ................... l55s97
To interest paid bonds due LIST June 22sOOO
$436357
but omits entirely mention the $40 which he had