The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-04-06
State Treasurer ]. c. Luning
Issues a Statement Re
garding Report.
DOES NOT OWE
SEVEN MILLIONS
Some Bonds Were Issued in
1885 and 1888, When Flor
ida Was a Territory.
SPECIAL TO THE JOURNAL.


Tallahassee, April 4-State Treas
urer j. G. Luning has issued state
Tnent relative to the article recently
published wherein several southern
states are charged with having re-
pudiated certain of their bond issues
, The statement shows that SO far as
Florida is concerned. no bond issue
! has ever been repudiateTl scaled. or
readJusted, and any charge to that ef-
| feet is false. Treasurer Luning SAYS:
TREASURER'S STATEMENT.
Il notice an article being published
| generally in the press stating that
Britain bondholders hold bonds of nine
southern states to the amount Of s75.-
100000. not including interest which
have been in default from forty to
seventy years.
Among the list of these states
named as defaulting on its bonds is
the state of Florida which is charged
with having defaulted on $1,000, 600 of
bonds.
should this statement be allowed to
pass without fun explanation as to
the facts of the issue of these $1,000
600 of bonds it is calculated to work
great injury to the state in the minds
of hnanciers, both in this and foreign
countries; therefore consider it high
ly important that the press generally
<ta1a aspeaial illsrse.aI EaIsgiia tazt
prepared by Judge James b. Whitfield.
or the supreme court of Florida. in
1901, with reference to this matter
whlch shows clearly that the bonds re-
terred TO are neither legal nor moral
obligations of the state. Judge Whit
field said:
Florida was admitted into the
union as state, March ,, 1845. The
bonds herein referred to were all is
sueo IN 1888 and 1888 when Florida
was territory.
The Act of Congress, to amend
an act for the establishment of a ter
rltorlaI government in Florida ap-
proved March 9, 1928 by section 6 |
provides, that all bills to tax the in
habitants OF said territory, or their
property, shall before they become |
laws, receive the Sanct1hn of congress. !
except when said bills shall authorize |
county. city or town. officers TO col /
ect taxes for the use and benefit of |
heir respective coun1ies, cities and
owns and for other purposes
The territorial legislature or coun-
II of Florida in 1881 and 1885. au-
hor1zed the above mentioned bonds to |
De issued, signed by the governor and !
n the aid of certain banks and other
corporations, but the sanction of con-
'ress to these territorial acts was |
lever obtained.
Grave doubts were entertained at
ne time OF, as we'll as after the pas
age of these territorial acts as to |
he power Gf the territorial legislature Z
r council to pass them, and it is said s
hat the secretary of the territory was |
o impressed with the irregularity and 1
legality of these acts, that he refused "
o attach the territorial seal to these r
Onds, and that the seal was affixedl ,
D them by another person under the
lrection of the governor OF the terri
Dry r
{" The territorial legislature or coun- s
IL at session on January 23, 1912,
y vote of 10 TO 4 adopted the fol-
wing resolution: 1e
"'"Resolved. That the territorial | /:
gislature docs not possess the right, T
or was it ever vested with authority -
pledge the faith of the territory so Z
) to render the citizens of the terri
'ry responsible for the debts and en-
agements Of any corpora ton char
red by said territorial legislature" .
" These territorial acts provided that | .
e sale and negotiation of the bonds ="
sued thereunder should not be at !"
scOunt nor for a less sum than the !,
mount named and expressed in said :,
'ndS and in any case where the -
'nds We're sold for an amount less - -
an the amount named and expressed -
erein, they were to become forever .
'solutely null and void The Jour "
lis of the territorial legislature recite -
at the bonds were sold below par. 81
" Tt is thus clear that the terri m
ority to pledge the faith of the ter
ory for the use and benefit Of pri- | \
tie corporations, and that the bonds |
here weres bonds Illegally |
sued under the territorial govern
ent of Florida; and that they were
no binding force upon the territory /
Florida, or the people thereof
' No benefit has ever accrued to the
lte or people from such bonds. and
ay have never been recognized as
lding obligation upon the state or the gf,
ople of Florida since the admission pI,
the state into the union, March g. in
E5. tn
: The territorial acts authorizing the su
ue of these bonds in aid of private In
'porations never received the sane tn
n OF congress, consequently they du
re Illegally issued; and being illegal SO
and never having been con- WI
ned or assumed as an obligation by tie
state after its admission into the