The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-10
BONDS TO BE REDEEMED.
GEORGIA WILL PAY THE SCOTT
AND HAYS ISSUES.

No Appropriation OF $4,000 Re-
quired to Take Them sUp-A Favor
able Report to Be Made to the House
by the Financs Committee - The
Story OF the Issues.
ATLANTA, GA, Dec. 9.-After twenty
years waiting and contending the payment
OF the Scott aud Hays bonds is at last In
sight At the last session Of the general
assembly there was q very strong senti-
ment in favor of paying these bonds, and
bill could possibly have been passed, but it
was thought best to have another thorough
investigation made before the state handed
out the necessary S40,O 600 and the attorney
general was instructed TO make this
investigation and report to the
general assembly. This was done by Col.
Little, and his report recommended in
strong terms the payment Of the bonds,
which he said were legally issued and just
debt This afternoon the finance committee
of the House met TO consider the bill pro-
viding for the payment of the bonds, and 1t
was agreed TO report the bill favorably to
the House. The indications are that ID will
governor. Those members who express
themselves say now that the debt should
have been paid long ago.
TWO GLASSES OF BONDS.
There are two classes OF bonds parts OF
two issues. One is claimed 30 be the prop
erty of E. p. Scott 81 Co. of New York the
other class is claimed to be the property of
e. L. Hays of Rhode Island.
Cl.,E -, A..
in aid OF the " estern and Atlantic railroad,
under authority OF the law. and are signed
by Charles j. Mcdonald, governor, aud j.
Crawford, president Of the commissioners
OF the Western and Atlantic railroad. They
bear the impress of the great seal of the
state, bearing date OF january, 1S40-4t re-
spectively, and became due, respectively, in
lS7O-'7l, being 30-year bonds. They bear
interest at the rate of per cent. per annum.
Their total face value is $12, 500.
THE HAYS BONDS.
The "Hays bonds are known az conven-
ton bonds. There are sixteen of them, all
Of the denomination Of $500. They are
signed by Charles ]. Jenkins, governor, aud
couutersigned by John Jones, treasurer.
They are all dated Feb. 1, 1866, and due five
years after date, and bear interest at the
rate of Der cent per annum, aggregat-
ing 1000 on the face of maturity. They
ali appear regular ana genuine ana nave
tho great seal of the state affixed. The
bonds were issued by authority Of a con-
vention of the people Of Georgia In 1865.
THE STATES DEFAULT.
At the time of the maturity of these
bonds, Feb. II. 1871, and of the Scott bonds,
1870 aud 1871. during Gov. Bullooks admin
istration, there were no funds available to
meet the maturing debt, aud they were ala
lowed to default. The bonds were out
lawed by the legislature Of 1875 on report
by DIR. Bozeman, who was appointed by the
governor to investigate them. That report
was to the opinion that the
s2O500 held by E. P. Scott & Co. and
Z. L. Hays are part and parcel Of the STA
600 Of bonds redeemed by Clews 8E Co. in
1670-'71, and which were improperly sold
by them at auction on Dec 13, 1878, and
bought in by Clews and through his agency
floated into the market again. Subsequent
Investigations have tended to show. how
ever, that DR.. Bozeman's report was
erroneous and Attorney General Little
officially indorses that view in his report.