Democratic Sentinel, Volume 1, Number 27, Rensselaer, Jasper County, 17 August 1877 — RELICS OF RADICAL RULE. [ARTICLE]

RELICS OF RADICAL RULE.

Known as the Fraudulent Bullock BondsGeorgia Repudiates Them Outright. A correspondent writes from Atlanta, Ga., Aug. 9, as follows: After a subtle and stubborn fight the Constitutional Convention of Georgia to-day completed the process of repudiation of the bonds issued fraudulently by the Bullock Government during the days of reconstruction. The full record of the rascality practiced upon the State during these baleful days will never be uncovered. Backed by an ignorant negro Legislature, Bullock and his pals issued over $8,000,000 oi fraudulent bonds, which the first Democratic Legislature that assembled after Bullock’s disgraceful flight promptly repudiated. Millions of dollars of these bonds were issued in behalf of mythical railroads, and in behalf of corporations that never existed. A favorite method of swindling was to secure an issue of bonds to a certain corporation; then to change the name of the corporation, and have another issue of bonds made to conform to the new hame. It was, of course, provided that the new issue should be used to retire the old issue. The swindlers, however, would put both sets on the market, and thus have the State under duplicate obligations for precisely the same object. After the Legislature had repudiated these villainous claims, it was found that a crowd of lobbyists, acting in the interest of the bondholders, besieged the Capitol at every session of the Assembly. It was then determined to make a constitutional amendment, prohibiting the payment of these bonds or the opening of the courts to any bond claimants. This amendment was perfected only last May. It will be seen then that last hope of the bondholders was to have a clause inserted in the new constitution providing in some way for a hearing of these cases or for the payment of the bonds. Extraordinary efforts were consequently made. Mr. Jere Black, of Pennsylvania, was engaged to argue the cases of the bondholders, and ex-Senator Norwood to represent a certain class before the Committee on Finance.

Despite the arguments, written and personal, made before the committee, to which the committee listened with hardened and impatient hearts, the following clause, in substance, was reported unanimously : “ The General Assembly shall have no authority to appropriate money, either directly or indirectly, to pay the whole or any part of the principal or interest of the bonds or other obligations which have been pronounced illegal, null and void by the Legislature and the constitutional amendment ratified by a vote of the people on the Ist day of May, 1877; nor shall the. General Assembly pass any law, or the Governor or other State official enter into any contract or agreement whereby the State shall be made a party in any court of this State, or the United States, instituted to test the validity of any such bonds or obligations.” There is little doubt that there are two or three classes of bonds, aggregating about $200,000, that have some equitable right to consideration. Hon. A. H. Stephens avouched the integrity of one class of these bonds. Hon. Robert Toombs, speaking of another class, said: “If the State don’t pay them I will.” But the deep sense of indignation felt by the people at the enormous swindles put upon them by the reconstruction regime, many of which were perpetrated by the connivance of Wall street shysters themselves, prevented the reopening of the sealed question under any circumstances. A resolution opening the State Supreme Court to holders of repudiated bonds, provided they would accept its decision as final, was tabled by a vote of 166 to 15, and the matter thus clinched. There was great feeling, but no confusion. The members were resolute and determined. The bondholders have put in the hands of the United States Marshal a paper instructing him to levy on the Macon and Brunswick road as property of the State. It is said the Marshal will attempt to stop the trains and thus force the State or stockholders into the United States Court, and thus open the way for the adjudication of the whole bond question. A lively fight will ensue if this is tried.