Morning journal and courier., 1883-08-11
ANOTHER BOND SCHEME.

The English scheme to make Confederate bonds worth something is preposterous one and will probably soon fade away, but there is German scheme to obtain payment for some bonds issued by the provisional govern ment of Georgia shortly after the war which appears to be worth at least little attention. A number of capitalists in Frankfort on
 the-Main are the originators of the scheme, and O. A. Lochrane, of Georgia, who has been chief justice. of the Supreme court of the State, has been engaged as counsel
 The case is decidedly interesting. In Oc- tober, 1861, Governor Brown of Georgia, the State having passed the ordinance of seces- sion, took possession of the Brunswick rail road, built and then owned by northern cap italists. The road was dismantled and it's iron and other property was used to build a branch of the Gulf railroad to Florida and for other State purposes. After the war the former owners asked for payment and were compromised with by the passage of an act dated March IS, 1869, by-which the State agreed to indorse the bonds of the railroad company if the road was rebuilt The con- promise was accepted and the road was re- built from Brunswick to Albany, TIP miles. Afterward these bonds were repudiated, and ment has hitherto failed of success. It is now set forth by Judge Lochrane that the United States is responsible for the payment of these bonds, because they were is sued by the provisional government of Georgia set up by the United States. On March IS, 1869, when the act authorizing the issue of the bonds was passed, and up to February 2, 1870. during which time the bonds were issued and sold to holders in Frankfort, the State of Georgia had no legal State government. but had a provisional gov ernment, offered by appointments of the United States March 2, 1867, it was de- clared by Congress: ''Wheraas no legal State governments now exist in the rebel States, :" etc. Georgia, under that act of Congress, held convention which adopted eonstitu- ton and elected a governor and legislature. The result of the election was proclaimed by military order; the govsrnor-elect was ap- pointed provisional governor by military or der of General Meade, representing the gov ernmant of the United States; the legislature was sworn in by United States judge; the qualification of it's members was passed upon by military commission, and the govern ment remained provisional until February, 1870.
 When Judge Lochrane was asked if he had any precedent to stand on he said: When Texas came into the Union the United States had to pay her $1o, ,oO0, 900 debt to foreign creditors, but this debt of Georgia stands in 8 better legal relation to international law than did the debt of Texas and when the United States government took all the duties from goods coming into Georgia portss upon the same doctrine she became liable to pay the debts created by her creation, the pro visional government of Georgia, just as in the case of Texas.
 Of course there is no question as to who really ought to pay these bonds. The State of Georgia had the benefit of them and should pay them. But Georgia has repudi- ated them, and now there is to be claim presented that as Georgia, when she issued the bonds, was acting under the control and direction of the United States, the United States should pay them. There are some fine law points in the case, which Is plausi-