The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-11
NORE BONDS IN DEFAULT.
The State Liable for $4,000 Per
lille as an IndOTSeT.

The Road the Northeastern of Geor-
gia, and Und sr Lease to the Rich
nond ana DanviIle-It Runs From
Athens, Twenty five Miles, to Lula.
The Legislature Forced to Take
Some Action in the Matter.
Atlanta, Ga. Nov. 1O.-The North
eastern railroad of Georgia, which is
now leased to the Richmond and Danville
railroad, has defaulted on the last half
years interest on It's bonds. On these
bonds the state Of Georgia is indorser to
the extent Of $4,000 for each mile of road,
or in all about S26O,OOO This fact be
came known to Gov. Northen yesterday
or to-day. Since he came into possession
Of the fact he has been in conference
with the attorney general, with a view to
determining what course the state will
take in the matter He has also
given informal notice of the defalcatiOn
To Speaker Atkinson, of the House, and
possibly to President Clay, of the Senate.
What course the governor is going to
take is still a matter Of doubt but it is
more than likely that his determination
win be made known to the two houses of
three days through the medium of
special message One thing is very GER
tain, that is, that the state must save
itself. The deficit on the states part for
interest for six months is about 81 900.
This amount must be made up by special
taxation, or by special issue of be Ids.
In any contingency the state must pay
its part as indOrser.
FORECLOSURE PROCEEDINGS.
The probable course of the administra-
ton viii be that the governor will
instruct the attorney general to at once
inauguratc foreclosure proceedings In
this case, the state must either become a
bidder for the property or secure some
other person or persons, who are willing
to give the full value Of the road on fore
closure sale, less the amount of the
bonded Indebtedness, for which the state
is liable. In case such a party cannot be
found, then the state must become a bid
der itself, or by appropriation either by
this or a special session of the legislature,
make certain the payment of the amount
of which the state will become debtor
This status Of affairs, in all likelihood,
kills all the hopes of Speaker Atkinson
and his friends for a fOrty-days' session
of the legislature. This matter. of course,
must be thoroughly examined into, and
there is no probability that all the in
formation can come into possession Of the
legislature before the end of the forty
days session upon which the speaker and
his immediate supporters had centered
their hopes.
THE STATES DEBT.
The debt on the Northeastern railroad
was incurred by the state of Georgia du-
ring the term of Gov. Col
quit, fourteen years ago. At the
time when the state assumed
responsibility for a portion of the bonded
Indebtedness Ben Hill made the charge
that undue influence had been exercised
on the part of the cOrpOrators upon Gov
Colquitt in order to obtain the indorse-
ment OF the state upon the bonds of the
road, and a legislative investigation was
ordered, and Gov NOrthen, then a mem
Der of the legislature, was member of
the committee which looked into the mat
ter Gov COlquitt was eXOnerated from
the charge of Mr.. Hill and nothing was
heard of the matter of the states indorse-
ment until the notice OF defalcation was
served upon Gov. NOrthen as governor.
MATTER OF HISTORY.
1t is, however, matter of history that
it was never proven that one Murphy, at
that time an employe of the executive
or treasury department, received a $40
600 fee for influencing the action of the
governor in endorsing these bonds. This
matter of history may play an important
part in the legislative discussion, if an APP
preparation is called for to make up the
deficit in interest which the state is
called upon to pay.
The Northeastern railroad of Georgia
runs from Athens to Lula, distance of
about twenty-five miles, and has been
leased TO the Richmond and Danville for
about ten years. The states liability is
$4,000 per mile This contingency is one
altogether unexpected by the members of
the legislature The likelihood is that
most of them viii know nothing of it till
they read this publications The solu-
ton of the problem will probably take
many days but the legislature must take
action, and take it at once