The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1911-08-10
will STATE
PAY INTEREST
: ON The BONDS?
NOT BOUND TO 90 so LEGALLY
BUT NOEL SAYS DEBT
Il OF HONOR"
TREASURER EDWARDS OPPOSES II
Promises To Be One of the LiveIiest
Fights of the Approaching Lesisla
Session of the Presen
V,''''surs May Be Called.
TREASURER EDWARDS OPPOSES IT
Special to The NetDs.

Jackson, Miss, Aug. 10.-One of the
liveliest fights of the approaching leg
islature will be over the ques-
ton of reimbursing purchasers
of the recent 100000 state bond is
sue for the amount of interest cou-
pons from July l to December 81,
1910, inclusive, the total sum involved
sbeing $1O,5O0.
n In his biennial message to the leg
\ islature Governor Noel will urge that
an appropriation be made for this
purpose, believing that the states fl
nancial integrity is deeply involved
and that the commonwealth will be
guilty of an act of reputation unless
the allowance is made.
On the other hand, State Treasurer
" Nirge R. Edwards, with wnom Gov
t$Sor Noel has been involved in a
fedd On this question for several
months, declares that he intends to
. fight it to a finish, and will go before
the legislative committees In person
and urge that no appropriation be
made.
II do not believe that the bond pur-
ehasers are entitled to this interest,
either on legal or moral grounds, and
/ am going to do everything in my
power to prevent the payment" said
Mr.. Edwards last night.
"The courts of our state have held
: that it would not have been legal to
nay this interest, and, since the facts
conclusively show that the interest
was not earned by the purchasers
-there is no question of moral respon
sibility involved that the Legislature
a. can recognize. If a donation Of $40,
,T50o is to be made to these bondhold
Rers. it would be Just as fair to make
\. similar donation to some individua
twho has no claim whatever on the
state"
Governor Noel, however, can't SCI
IL NAT way. He believes that 1t Il
Ithel moral duty of the state to REIN
= bur1e the full amount of interest OF
the 100000 bond issue for the semi
annual period. despite the fact that
o,good portion of the issue was no
marketed until the latter part OF IN
year: that it was possible to marKe
tbe bonds only because the interes
"coupons for the first sem1-annual pei
3od we're attached, and the parte
who purchased them did so beheVih
that they would get this interest,"
otherwise they would not have mau
the investment and that If they MAJ
| NOT come TO the rescue or sne staI
| at this time, when a treasury denci
seemed inevitable, it would nave pee
necessarav to call the legislature
| .nocial session. thus incurring an e'
I pera+e far greater than the amount
interest involved. -
The supreme court sustaiheu :"
|y> ...,,i,,, ~ Treasurer Edwards tina
III contention OF IlV"o" -.
tba sale of the bonds at par with az
o,,,ed interest coupons attacheu
roo1itv constituted a sale below pa
l. is generally admitted among MI
sissippi bankers and financiers' nov
ever thai If the bonds had not nee
|, sold on these terms it would nav
\ been impossible to sell them at & d,
and Gov. Noel would have been force
aonvene the legislature for the Sc
Invent Of the financial quahur'
Hr,no negotiations for the sale OF tr
,onas we're in progress the sta'
Axszr,,y was virtually empty and
a ,n have been impossible TO g
state state w9sponts oashed it.I If funds n"n,oa n'
NOT beef4 ,eived from this s'3uaS souri, .,
W WTactior&al politics will be mixed u -,
.ho natter when it reaches the lie
,,t,,ro and a report is curre'
.",nd 's'", tbe state house today TN
%oro is a strong probability tna' uI W
woa, , NAV convene the present lee, :,
,,nro nt in special session before u
,ose ., of the year. It is general,y
close % .not the incoming legislatu
ne'SO Continued on Page SIX