The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1911-01-04
REFUSES TO PAY FIRST COUPON
AND GIVES REASON FOR
HIS ACTION.
BONDS WERE NOT SOLD FOR PAR
Treasurer Will Await Decision Of SUI
preme Court Before Paying Out
S1o,415 Unearned Interest.

jackson. Miss, Jan. Following
close on the heels of the final disposi-
ton of the 100000 bond issue by Gov
ernor Noel, State Treasurer George
r. Edwards has sprung a new wrinkle
in the problem by refusing to pay the
first interest coupon on the ground
that the bonds were sold illegally be-
low par. The matter will be sent 10
the Supreme Court for solution
treasurer Edwards View.
In a signed interview, Treasurer Ed
wards today gave out the following:
Yes. | refused today to pay four
coupons of the Series D, 1910 issue.
These four coupons are the property
of my mother Mrs. Emma Edwards. 1
refused to pay them and I have ar
ranged with my mother to institute
mandamus proceedings against me TO
compel me to pay them. We have
adopted this course, because enter
tain very grave doubt as to what reaiiy
is my duty under the law, in this
instance. and because ! am anxious
to have the protection which an al
Indication of the matter by the SUI
nreme Court of Mississippi, will give
d me.
= Terms of Sale.
The law which authorizes the 5000
600 bond fsseu requires that the bonds
.s shall be sold "at price not less than
par"
Attached to each and every bond is
a coupon for interest from July 1st,
Z 1910. to January 1st, 1911. The Gov
ernor did not sell any of the bonds
~ until Sept. IA, 1910, Many of them
were sold during the months of octo'
- Der and November, and nearly three
- hundred thousand dollars worth o.
~ than were sold after Dec. 25, 1910.
10 To make long story short, thers
- are at this time outstanding and du'
on Jan. l. 1911 $4,000 worth of IN
terest coupons for money which tn
State is supposed to have received o
July l, 1910, but most Of which, !
fact. it did not receive until the clos
ing days of December, 1910.
Az "If were to pay all of these COZ
mons numbered one, l would be dell
-, erately paying out of the peoples mo-
-, ey s10,41567 for interest which ha
~. not been earned and for the use
money which the people of Mississip
ss did not have"
ngi- Not Sold Legally.
hey The truth about the matter is, as
was confidently believe that not one sing
any solitary bond of this entire issue h
been sold "at a price not less tn,
par" as is specifically directed by t
statute which authorized the issue.
the bonds have been sold for less tn
Co.. mar. then, it seems to me, the law b
900 been violated and the State Treasur
\ re- might become liable personally a
in on his official bond for any MON
which he may pay out for coupons
tached to bonds thus illegally sold.
No "innocent' Purchasers.
1t has been urged that when thu
bonds and coupons duly signed by
lin Governor and Secretary of State hs
passed into the hands of the buyer, &
they become the property of an In
llace cent purchaser and an obligation
ames the State which the Treasurer m
n his respect. | think this is mista
tmas because the statute which authori
The the issuance of the bonds is notice
gh a the world, and every purchaser
in by Mississippi bonds buys them with
|, the eyes open, with full knowledge OF
vine statute, and is, presumedAin law, t<
familiar with the act which PEI
n the the issue, and no purchaser of
him bonds may be heard to plead Il
John is an innocent purchaser withoy
great tiee.
etch's The fact is, every purchaser
particular issue Of bonds knew
e was he got the bonds plus the Il
|. on which had already accrued
came, time Of the sale to him, that
to, his getting more from the State Il
tcontinued on page eigh|