The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1911-05-30
GOVERNOR NOEL THINKS BOND
HOLDERS SHOULD BE RE-IM-
BURSED, BUT WILL WAIT.
LEGISLATURE MEETS In JANUARY
5ond Holders Are Due $12, 2,ooo-Woud
Cost More Than That To Convene
LAWN Makers-Decisio OF Court Set.
ties Future Rules of Bond Sales.

Jackson, Miss, May 30.-While no
official announcement has been issued
on the subject, it is not probable that
Governor Noel will convene the legis-
lature in special session to reimburse
the holders of the 100000 state bond
issue for accrued interest of the first
semi-annual period, which the Supreme
Court held on yesterday cannot be
legally paid out of the state treasury.
1t has been suggested to the Cover
nor that it will be no great incon-
venience for the bond holders to wait
until the regular session of the legis-
lature in January. The actual amount
involved is $4,000, and it would cost
more than that sum to convene the
Legislature for sitting Of one week.
When the litigation was originally
before the Supreme Court on appeal
from Chancellor Lyell's decision, had
, an adverse decision then been rem
dered, instead of a reversal on techni-
calities, the Governor would have un-
doubtedly convened the legislature in
special session, and he is still of the
opinion that the states honor and
financial integrity is at stake in the
matter, since the purchasers of the
bonds acted in perfect good faith, be-
| lieving that they were entitled to the
accrued interest, and they would not
have purchased the bonds under any
other circumstances, for no securities
issued in this state last year, and bear
| ing only four per cent interest, could
be marketed at par on the date of their
| issuance.
In fact, bonds of the largest munich
palities in America issued at that rate
of interest last year were drugs on the
market and when number of Missis-
sippi banks and local capitalists Of
fered to purchase the 100000 issue
at par they were actuated chiefly by
patriotic motives, as the state was in
bad financial plight, owing to the
failure of the legislature to incor-
porate in the act authorizing the bond
sale an elastic clause relative to the
interest rate.
Governor Noel contends that the
states honor is pledged, not only for
the redemption of these bonds, but for
carrying out the provisions under
which they were sold, and he will
make an earnest effort to see that
their purchasers are fully reimbursed
for the deferred interest coupons, and
also interest on the interest from De-
cember 31st, 1910 up to the time pay
ment is made.
"The decision of the court settles
the future rules of bond sales" says
the Governor, "and l have no criti-
cism to make thereon, but it does not
in the least lessen the imperative OBJ
legation of honor resting upon the
state of Mississippi to make good the
terms of its contract with these pur
chasers, and desire to see this obli
cation recognized"
Aside from the heavy expense that
would be incurred in calling the legis
lature together in special session, the
law-making body, if convened, would
be rather badly disorganized, and g
goodly number of counties would MOI
be represented at all, owing to the
deaths or designations of members
Many members who served during the
session of 1910 would not be qualified
owing to the fact that they have
changed their places of residence.
Again, the state is in the midst of ;
red-hot political campaign, factiona
feeling is running high, and a specia
legislative session would doubtless ad,
fuel to the flames