ANNUAL MESSAGE OP GOVERNOR J1t~IES ~i.S~IITH TO THE GENERAL ASSE~ITILY OF GEORGIA, ATLc"XTA, GA.: w. A. IIE~IPIIILL & co., rnlLIC l'l:I:XTJ-:J1S. l874. MESSAGE. ExECUTIYE DEP)cRTJIKN'l' OF GEORGL\, ATLA:NT.A, G_\,, January 14, 1874. To tlw General Asse1nuly: The reports of the Treasurer and of the Com1)troller- General, herewith transmitted, show the financial oprations of the State Treasury for the fiscal year ending December 31, 1873. It will be seen that the amount received into the treasury from all sources during the year, including the prnceeds of the sale of bonds, and the balance on hand January 1, 1873, is three million one hundrecl and seventy-two thonsancl seven hundred and eightyeight dollars and seventy-four cents. The disbursements for the same l)eriod, including the amount of principal and interest paid upon the public cfobt, are two million two hundred and fifty thousand two lrnnclrecl and thirty-two dollars and forty-nine cents. - 'l'he amount of public llebt, principal and interest, 1x:Lid during the year, was one million three hundred and thirty-five thousand seven hundred and sixty-seven dollars and seventy-three cents. This amount is made up of the following items: nom1s redeemed....................................... $ 320,500 00 Interest... .. .. .. .. .. . . .. .. . .. .. .. .. . .. .. . .. .. . .. .. . 502,142 73 Amount Russell Sage Claim............................ 423,125 00 Total, as aboYe stated............................ $1,G35,7G7 73 4 Gov:Jrnor' s .1liessage. As required by tho act approwd February rn, 1873, I issued the sum of one million two hundred thonsanc1 dollars of bonds of tho State, bearing eight 1wr cent. interest, and to become due as provic1et1 in the act. These bonds lurrn all been placed at 11:n; and, as will appear from the Report of tho Treasurer, at an expense of less than one per cent. I respectfnlly recommend that the amount necess:1ry to defray the expense of negotiating these bonds be approptiatcc1, :1nc1 that the Governor be authorized to draw his warrant therefor in favor of the Treasluer. The largeT portion of tho bonds was disposed of in this State; anc1 the facility with which the loan was made shows, not only the confidence of our people in the 11ledged faith of the Government, but the sound condition of the public credit. l'LJlLIC DEBT. 'l'he follO\ving is a consolidated statement of the debt of the State on the first day of January, 1874: Date of Issue of Bonds. I ,vhen Due. ! Amount of Princip:.11. ---- 1Bif aml 18.J.8........................... j 1874 i $ 237,000 00 rn+~ , 18 ,H ................................. 1 18i',i I 100,000 00 I~+t:::::::::::::::::::::::::.-.-.-.-::::::1 I22:222 gg 18;"i8 and 1873........................... I 1878 200,000 00 183D and 18rn...... .. . . .. . . . . . . .... . . . . . . 18,\J ;J00,000 00 18UO ancl 187:J........ .. .. . .. . . ... . . . . . . . J t't'O :100,000 00 18(il and 18,:l.................. ... . . . . . . . . 1881 200,000 00 18iil.......................... .... . . . . . . . 1882 100,000 00 187:~.......................... ... . . . . . . . . 18.'~;1 100,000 00 187:L..... .. . . .. .. .. . . .. . . .. . . .... .. . .. . 188+ rn;;J .................................... , rns:; 100,000 00 100,000 oo 18Gli and 18,:J.................... ,. . . . . . . . 1:-going statement shows, that the bonds issued in 184--1 ::rncl lS-18 ,Yi11 become due the :present year. Means for their payment have been already })rovided, in the sale of eight :per cent. bonds. Of the Gold Qnar- Gorcrnor s Jfessagc. 5 tei-ly bon(ls, issuecl lmuer anthmity of the act of September 13, 1870, the sum of ;32,09S,000.00 is outstanding. 'l'lw snm of 8300,000.00 of these bonds, jn the hands of Russell Sage, to secure a loan of :3B73,000.00, has been surrendered to the Agent of the State in New York. The total amount of interest to be paid upon the rrnblic tlcbt the prescnl year is ~;},'-CHSE~IE~T~. Civil List......................................... $ 100,000 00 LcgislatiYe Pay HolL . . . . . . . . ...................... . 100,000 00 Lunatic Asylum ................................... . 1();1,000 00 Salaries Trustees and Chaplain Lunatic "\.sylum....... . 2,000 00 University of Georgia . . . .. . . .. . . . . . . .. . . ........ . Deaf and Dumb Asylum............................. . 8,000 00 rn,;-rno oo Academy for the Dliml. ............................. . ll,000 Ot) Public I3uilclings, Atlanta and Jilillellgeville ........... . :?0,000 00 Printing Fund. . . . . . . . . . . . . . . . . . . . . . . . . ............ . 20,000 00 Contingent Fund.. . . . . . . . . . . . . . . . . . . . . . . . . ......... . 20,000 00 Secretaries, Clerks and Messenger Executive Department 10,000 00 Solicitor General foes, Supreme Court, criminal cases.. . 2,000 01) Clerk Wild Land Office ............................ . 1,:200 00 Sc.;!tool Commissioner and Clerk. ..................... . U,700 0() Vaccine Agent for the State ........................ . ilOO 00 Sullscription to Code of Georgia.................... . 18,000 00 Supt. Public '\Yorks antl. Keeper Public Property ...... . 2,000 00 Educational Fund.................................. . ;?J0,000 00 Oltl debts '\Vcstcrn & Atlantic Railroad ............ . 2:3,000 00 Olll Change Bills Western & Atlantic Hailroatl........ . 25,000 00 .Public Debt and Interest ............................ . 823,4GO 00 Balance ........................................ .. 1,15D,19G 00 Total.. ..................................... ,8 2,722,SJG 00 6 Governor's j}fessage. The amount of taxable property in 1873, as shown by the Comptroller-General's Report, was 8242,487,- 382.00. This valuation, we may safely calculate, will be increased the 1wesent year to 8250, 000, 000. 00. Four and a half-tenths of one per ced. on this amount would raise 81, 12:\000.n0; which, together with the revenue to bo derived from other sources, \Yill be sufficient to meet ::-Jl jnst claims upon tho treasury during uext year. Your attention is respcctfnlly invitec1 to the amend- ments of the tax laws suggested by the ComptrollerGeneral in his Report. I renew the suggestion made in my last Annual Message to the General Assembly, that the law be so amenc1ed as to secure a correct val- uation of the taxable pTOperty of the State. ,Vith such a valuation, there is but little reason to doubt that the money needed to supply the wants of the Government could be raised at a reduced rate of taxn,- tion. AG RICl:-LTGP.E. From the -rast importance which attaches to the sub- ject, it would seem logical to give priority and supreme consideration to the agriculture of the State. It is too trite to repeat, that this interest is so vital and extended that it underlies and supports all other industrial pur- suits. vVe are essentially an agricultural people, ancl will remain so, no doubt, for an indefinite period; and while an intelligent and observing mind does not fail to appreciate a diversified industry, we nevertheless feel that the best interests of our society req_uire that agriculturn should be encouraged as the leading industry of' the State. But is our agriculture advancing~ Are the farmers and -planters of' the State pros- pering, and does that business which they have elected to follow, and upon which they are so entirely de- pendent, make them such annnal returns as to satisfy a reasonable expectation 1 'rhese questions, it is feared, must be ans,vered in the negative. I have given, of' late, much earnest and anxious reflection to- Governor's llfessage. 7 the condition of this great industry in our State; and candor compels me to say that the result of my investigation is far from satisfactory. Many reasons might be given for the present depressed state of our agriculture. Chief among them are the imperfect modes of culture and fertilization, which have so extensively obtained. It must be admitted, however, that there has been more intelligent effort directed towards the discovery of better and more scientific modes, since the close of the late war, than during any previous periocl in the history of Georgia husbandry. But what a vast amount of improvement is yet to be made! Of all the futile attempts upon the part of men to secure material prosperity, nothing can exceed in hopelessness the task of the farmer, who toils in the cultivation of the soil whose sterility refuses any adequate return. It is not too much to assert, that there are thousands of such acres in cultivation in our State, and that large sections, unless soon recuperated, will become so unproductive as to compel their abandonment. Here, then, is a case which is too vital to be tampered with or treated with a resort to palliating and temporary expedients. Throughout the leading States of Europe, the public mind seems to be profoundly interested u11on the subject of improved husbandry. This interest has, in a great measure, extended throughout the older Atlantic States ; and it affords great satisfaction to know, that the farmers and planters of our own State are energetically seeking out new roads to success. All seem to agree, that we can no longer suffer the exhausting drain on our production which our trade in fertilizers has called for. Millions of dollars are each year sent out of the State to pay for commercial manures, which lrnve been applied to our crops ; and the prevailing opinion among our farmers seems to be adverse to the economy of their further use, at the high price which is demanded for them. A cheap and portable manure seems, in our present condition, to be the grand 8 Gocernor' s ;_1essage. desideratum in Georgia agriculture. \Vith this secured, every other amelioration is within our reach. But, without it, no pains-taking in culture, and no expenditure of intellect or capital will produce encouraging results. Recent discoveries give promise that the tillers of the soil will, at no distant day, be placed in possession of sounder theories on the subject of fertilization and of cheaper and more efficient formulas for the preparation of manures, than they have yet had. Sound policy requires, however, that in matters essential to success in this great department of industry, nothing should be left to the mere accidents of individual enterprise or research. The State, very properly, keeps jeaJous and sleepless watch over its financia,l department. It is deemed of vast importa,nce that the income of the Sta,te a,nd its taxable property should be digested in convenient forms and tables, and that the public treasure should be appropriated and paid out with elaborate yarticularity. But, when it comes to the production of this wealth, and the means by which it is to be gathered in, everything is 1eft to the voluntary and unassisted exertions of each producer in the State. After much reflection upon the subject, I am prepared to recommend to the General Assembly the establishment of a Department of Agriculture for the State. It would be difficult to enumerate the advantages which would result from the operations of such a department. Among its duties should be included the supervision of our mineral interests and resources, as well as the practical application of chemistry to agriculture and the mechanic arts. Men now distrust analyses and experiments which are given to the world on unofficial indorsement. Could the information, so much needed in the every day operations in the field and shop, be sent forth from such a department as the one here recommended, it would carry with it a weight and sanction rendering it acceptable to the public. Jiere could be gathere:i from every source the most Governor's Jiessage. !) advanced ideas and methods affecting U:e great interests committed to this department. Gradually the scope an. These substituted bonds were required to be sold "at rates not injurious to the credit of tl:e State," anc1 the procceu.s apportioned among the counties on the basis of the school population. The fond so apportioned was required to be applied to the vayment of the claims of teachers-for 1871, till such claims wero sati::,fied, "and then to future school work.'' At no time since the passage of this act has it been practicable to dispose of these bonds "at rates not injurious to the credit of the State." 'rhe condition of the 1rnblic credit, since the passage of the act, has required the exerciso of great prudence and caution in _placing our securities upon the market. :Much as I hflxA desired that the just claims of teachers should be paid, I 1rnve felt that it woulcl not be proper to raise money for that purpose by the sale of bonds. I especially invite the attention of the General Assembly to so much of the report of the School Commissioner as 1rns reference to the claims now under consideration. If it should be thought proper to provide fr.:;r their full settlement, I recommend that the suggestion of the Commissioner in reference to the manner of payment be adopted. .At the date of the Commissioner's Report, he had received reports of school operations in one hundred anc1 thirteen conuties. 'l'hree months' schools have been kept up in most of the counties, with result& which have, generally, been satisfactory. The faithfulness with which ii.n:ineial obligations have been met, has secured the confir cond.ition to accommodate and keep securely the Jlresent large and constantly increasing numbtj, of convicts. If it should be dete1mi1wd not to lease the convict force in the future, but to confine them within the ,valls of the State prison, steps should at once be taken to enlarge the buildings, arnl make the revairs necessary for the safe keeping of the llrisoners. From the year 1817, when the Penitentiary ,vent into operation, c1mvn to 1867, a period of fifty years, the average number of convicts within its walls was fortytwo. The average annual appropriation, for the support and safe-keeping of the prisoners, dming the same period, was $9,210.00, or (tJ10.00 for each one per annum. J;~rom this statement, it wouJd seem impossible, if the convicts are kept and emp1oyed within prison walls by the State, to make the Penitentiary system self-sustaining. To appreciate fully the justness of this conclusion, it should he remembered, in this connection, that during the period just mentioned all the convicts were white persons; and for that reason probably more capable of learning the arts in which it has been found practicable to employ convict labor. Of the convicts now in the Penitentiary, more than five to one are colored persons; most, if not all, of whom, by reason of their ignorance and former habits of life, can never be profitably employed in any of the mechanical arts. A.nd when it is borne in mind, that for some years to come the number of convicts will probably be increased, rather than diminished, the disposition best to be made of the Penitentiary becomes a question of the gravest importance. If the General Assembly, in its wisdom, should determine, that it would be for the public interest to a.gain farm out the convicts, I would suggest, that .authority be given to lease for a longer term than two Governor's JJiessage. 19 years. The profitable employment of so lc-n;;13 a force would necessarily involve a heavy ont1ay on the 1Jart of contractors, ancl it might be found c1ifficu1t, if not impossible, to lease the convicts for a rwrioc11PsR than five years, upon terms which would rnv,.:J the State from expense. I respectfnlly invite the attention of the Gc'neral Assembly to the report of the Principal EJ:epPr herewith submitted. It contains a succinct lii:story of the Penitentiary from its establishment down to Uie prestmt time, and furnishes facts which may materially aid you in determining the proper disposition to be mac18 of the institution. :l\LACOX & BI!UXSWICK RAILl:O,\D co:nP_\:, Y. I was informecl on the second day of July Inst, by certain holders of the bonds of tlrn 1facon & Brunswick Railroad Company, which had been indorsed by the State, uncler the act approved December :J, 18Gti, that they had presented the interest coupons of their bonds to the company for payment, and that 1:iayment thereof had been refused. Accompanying this infonnation were notices, showing that the coupons had been protested for non-1)ayment on the first day of ,J nly, 1873. By the second section oi the act under ,vhie11 the bonds were indorsed, it is made the duty of the Governor, in the event that any interest upon the bonds so indorsed shall not be paid when due, to seize and take possession of all the property of the company, and apply the earnings of the road to tlrn extinguishment of the bonu or bonds or coupons, and to sell tlle road and other property belonging to the company, in such manner and at snch time as in his judgment may best subserve the interest of all concerned. Under the authority thus given, I issued an on1er, J u1y 2, 1873, seizing a11 the property of the company, and J)lacing the same in the possession of a Receiver, to the end that the road, its earnings and the other property of the 20 Governor's .Jie8sage. company might be held and disposed of in accordance with the provisions of the aforesaid act. Acting under this order, GeOl'ge IL Hazlehurst, the Receiver, took possession of the road and other property of the company, in behalf of the State. This prompt action was deemed necessary for the protection of the public interest. I was apprehensive, that any delay on my part would be taken advantage of by creditors to place the company in bankruptcy-in which event the public interest would unquestionably h:we suffered serious injury. At the timP the road v.ras seized the company had outstanding about :370,000.00 of pass bills, which had been issued from time to time for convenience in its business transactions. These bills had gone into general circulation, but were mostly held by the patrons and employees of the company. Any refusal to receive these bills, I found, would involve inconvenience and loss to the State. Many of the patrons of the road who held these bills notified me, that they would withdraw their patronage unless the bills were received for passenger fare and for freight. Many of the employees and laborers, also, who had received bills for services, threatened to abandon the road unless the bills were redeemed. Inquiry into the business of the road satisfied me, that its earnings for some time to come would not be much in Pxcess of its current expenses, and therefore that the State could not lose largely by receiving the bills in the business transactions of the road. 'fhe public interest required that the road should be operated so as not to involve the necessity of defraying its expenses out of the public treasury. Believing that, to make the road self-sustaining, it would be necessary to take the bills, I directed the Receiver not to refuse to accept them for freight and passenger earnings; and that the bills, when thus received, should be cancelled, ancl held by him as vouchers, to be used in the settlement of his account with the State. Governor's ]}fessape. 21 After taking possession of the road I determined that it would not be proper for me then to exercise the authority vested in me, to dispose of it by sale. I had reason to hope, that the companywould be able to make an arrangement to relieve the State and resume possession of the property. Acting upon this impression, I made as little change as possible in the practical management of the road. There has been little reduction in the working force on the road, and the track and other property have been kept in good condition. On account of the recent financial troubles in the country, the company report to me, that they will not be able to make any arrangement for the relief of the State. In consequence of this, it will become necessary for the General Assembly to make provision, at the present session, for the payment of interest upon the company's bonds for which the State is liable. It is claimed that the amount of these bonds is $2,550,000.00. Of this amount $600,000.00 were indorsed under the act approved October 27, 1870. There is a doubt in the public mind as to the validity of the last mentioned indorsements. Information in my possession induces me to believe that a large amount of the bonds bearing this indorsement has never been legally negotiated by the company. The bonds which have not been so negotiated are still the property of the company, and under the order of seizure ought to be surrendered to the Receiver. No payment of the principal or interest of these bonds should be made until the Legislature is fully satisfied that the public faith is pledged therefor. The net earnings of the road since its seizure, as reported by the Receiver, amount to $27,991.50. The earnings of the road have been derived, almost exclusively, from its local business. This has resulted from the fact, that it has not been practicable to make any satisfactory arrangement for through freights with connecting roads. The Receiver estimates that the net 22 Governor's JJessage. earnings of the road the present year will probably amount to $GO,OOO.OO. STATE AID TO RAILTIOADS. The history of this company illustrates the impolicy of granting the aid of the State to works of internal improvement. The road was commenced under very favorable auspices, and it was claimed that it possessed advantages which would render it self-sustaining. In less than eight years after the aid was given, however, the company has become unable to meet the interest upon its bonds, and a practical addition of several millions of dollars to the public debt is the result. There are numerous charters upon our statute book, containing provisions for the grant of State aid to railroad companies. In some instances these companies. have not organized, so as to claim their chartered privileges. In other instances organizations have taken place, but no work has been done. Some, and perhaps all, of these enterprises would, if completed, be useful to the public; but it may be confidently asserted, that no one of them possesses merit sufficient to warrant Hs construction at the public expense. It will hardly be found practicable to establish the credit of the State upon a solid basis so long as it is in the power of private corporati01JS or individuals, by complying with the comparatively easy conditions prescribed in these charters, to add countless millions to our public debt. I therefore recommend the passage of a measure repealing the aid feature in every charter in the State, where the same has not actually become a vested right in the company claiming it. NOI!TJI & S0-GTH l!A.ILlWAD COcIPAXY. In December, 1872, the 11orth & South Railroad Company reported that the first section of twenty miles of its road had 1Jeen completed, as required by its charter. I caused a thorough examination of the work, and of the affairs of the company to be made, Gonernor' s JJ:fessage. 23 1Jy commissioners appointed for that purpose, and by a civil engineer. I also causecl reports to be made by the President ancl Directors of the eompa11y, shcnving the amount which had been in vPstecl in the rnad by private persons; ancl having become satisfied that the company, under its charter, was entitled thereto, I placed the indorsement of the State upon its bonds, to the extent of twelve thousand dollars per mile for the twenty miles completed as aforesaid. The length of the main line of the road between the termini, is one hundred and thirty miles. The length -of road completed, twenty miles. 'l'he length of additional road graded, is forty miles. The sum reported as invested in the company is $680, 19G.73. Of this, the -sum of $420,146.02 has been applied to the section of twenty miles already completed. In this amount are included the expenses of survey, location and equipment. CONCLUSION. The year just ended has been one of disaster to thn niaterial welfare of a large portion of our peopk As these disasters could not be prevented, so they ('annot be cured by simple legislation. 'fhe remedy for many of the evils of the times lies within ourselves. As l'ar, however, as appropriate legislation can avail, I d,,sin~ to say, it will be my agreeable duty to co-opt~rnt,~ with the Gem,ral Assembly in all proper efforts to ameliorate the condition of our common constituents. It is our highest duty, as it will doubtless be our chiefest pleasure, to do all we can to promote the general welfare, advance the public credit, enforce the laws, and protect and defend the rights and liberties of the people. J A:\IES M. S:'IIITII.