Savannah morning news. [volume] (Savannah) 1868-1887, 1885-06-21
rLEWS CLAWS THE AIR.
,y4 sWEARS THERE WAS NO
CONSPIRACY WITH BULLOCK.

Np.,kers Absurdly Warned to Beware of
f .I,a New Issue of BOnds-Judge Loch-
rape ExpOunds the Law from Clews'
s+andpoint-Mr. Calhoun Shows the
IpsticesOf the Reputation.
NEW YORK, June 20.-Parties inter-
asted in proposition to permit savings
n ,anks in this State to invest in the new
ssup of Georgia State bonds were given a
A .aring to-day here before Deputy Attor-
- General William A. Post. Patrick
Il alhoun. of South Carolina, and ex-At-
8,orney General N. j. Hammond repre-
2sented the new issue; Judge Lochrane,
4 Of Georgia, Waldo Hutchings, Henry
Il ,lews and others representing
8tbe holders of the repudiated bonds,
wbo protest against the new
$issue being placed in this State. Mr..
u Calhoun in his argument claimed that
4 tbe issue of repudiated bonds was uncon-
#enmtional. There had been a conspiracy,
H. said between GOV. Bullock, Henry
&Clews and the contractors for the rail-
q roads which were to have been built out
#of the proceeds Of these repUdiated bonds.
81 CLEWs CALLS ON GOD.
n Mr.. CIews called upon God to witness
#tbe truth of his statement that there had
been no such conspiracy. His firm had
Xreeeived the bonds and paid out money
#nr them. The bonds We're held as collat-
&cral Speaking of the history Of the rail
road in Georgia, Mr.. Calhoun stated that
#during the war the Confederate States had
*nlrchased rails and other iron from the
#companv and rendered Confederate money
#npayment. The company thinking cotton
#Ofmore permanent value than Confederate
*money purchased the former article
with the latter.
GEORGIA NO DEFAULTER.
n Mr.. Calhoun argued that Georgia had
never detaulUed. The committee ap-
poiuted by the State to fix the amount of
81 be public indebtedness found that
fraudulent bonds had increased the
al mount from about $5,000,000 in July,
S6S to about $lS,000,000 in November,
ISL. OF this vast amount Georgia held
nly S252,000 Of open accounts to be in
#alid. The balance that she declared in
81 aid was between $6, 600, 600 and $1,000
81 30 in bonds that were issued to aid rail-
roads, and pronounced uncOncOnstitu-
#onal because equal amounts had
bot been invested by private parties and
he first lien not given to the State as the
lW requires shall be done. Mr.. Calhoun
tated that the purchasers of these bonds
0ok them with the notice under the law,
Mud laid great stress on that fact. The
0usel concluded with tribute to the
lnor and integrity and good faith Of the
eople # Georgia, which he declared were
nezcelled by any people in the world.
LoCHRANE's ARGUMENT.
Ex-Judge Lochrane, Of Georgia, made
= FFe.,r
b. the holders of the repudiatea bonds
took rbe ground that the State could
Bot 90 behind its own act. Having issued
le bonds the State should redeem them.
be bonds were not invalid. They had
een Tepudiated. Gov. Bullock had acted
ii good faith, and the holders of these
Monds had no desire to get one cent more
ban they were entitled 10. II Mr.. Cal
MOun's statement was to be taken, what
as to prevent the very powers that
FsOed the new bonds from declaring
hem void?
Henry Clews was an attentive listener
the arguments. Before the adjourn
ent be made a few remarks to the
Meputy Attorney General.
cLEws GNAsHEs HIS TEETH.
He said that the original act Of repu-
Matou had been repeated each six months
Mnce by the refusal OF the State to recOg-
ze and pay the coupons as they matured.
Re llkened the States act to that Of
ank robber. One, he said, seeks protec-
Don behind it's sovereign rights and the
Mher in Canada. He believed that
awnings banks who were allowed to take
ese bonds would be ruined, and added
at the mere whisper during panic that
certain institution held $500 900 ofthem,
they were about to be repudiated,
0uld bring about disaster. There VIII
further argument in Albany Monday.