Historical Newspapers of South Carolina

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THE PLUNDER OP THE STATE EXtTREASURER PARKER, OF SOUTH CAROLINA, MAKES A CLEAN BREAST OF IT. Chamberlain, Patterson, Kimpton and Others Charged with the Grossest Frauds. Bribery of the Legislature?Collision of the Whole State Government and a Beign of Unparalleled Corruption. V. The confcssiou in ado by Niles G. Parker, *ex-Treaaurer of South Carolina, in an ina , tetvio^jdrlth a reporter of the New York fA' WjWajSlBw made at his bouse in JenW ? tasen down phonograpfciaaf'ly. TKe statement was made without proy wious preparation, which will account in :great measure for the looseness of arrauge uient, and also for any slight inaccuracies of dates or figures. The confession is as (follows ; PARKER'S RECORD AND ELECTION. X settled in Charleston in Februrary, 1865, engaging is planting aud the mercantile supply business. In 1867 General Oanby appointed me an Alderman in the city of Charleston. Gailiard was Mayor at the time, Mid there was a place iu the council uiade vacant by death. A few 'months later I was appointed chairman of the Committee on Legislation under the reconstruction nets. Aft*r Afcft discharge of that dnty I devoted myself again to privato business. I was soon, however, elected a member of the constitutional convention from Barnwell County, though I made no effort to secure my nomination or clectiou. In that convention I was the chairman of the Committee on Finance and succeeded in raising the amount necessary for the expenses of thfe convention. In the discharge of my duties I had the co-operation and goood will of Governor Orr. As u member of tho convention I opposed the pas sage of the law authorizing tho State to issue bonds. I took the grouud that tho State indebtedness and tho curront expenses could be provided for by taxation and that any further issue of bouds was unnecessary. As in previous years tho State expenses had not exceeded 8400,000, I did not believe that more than 8600,000 would ji r i - bo needed to ooyer them. Tho surplus r amount paid into tho treasury as collected taxes would be enough to moct the payment of interest on the State debt, consolidated and floating, and settle, i.i tho course v of a few years, all outstanding claims not ' represented alroady by Stato bonds. The act was incorporated in the constitution, however, iu spite of my opposition. At the first election under the uew constitution 1 was put in nomination for State Treasurer and elected. This nomination grew wholly out of the success which I had aohioved in raising the expenses of tho convention. I went into office in July, 1868. Scott was Goveruor, Chamberlain was At1 torney General, Cardozo was Secretary of Stato, Frank Mosses was Adjutaut General and Nengle was Comptroller General. The constitution of the Legislature was entirely Republican. I think, without an #*Mn. tlon. The Democrats refused to take part in the election. Naturally both Senate and House were couiposod vory largely of colored members. Prank Moses was the Speaker of the House?undoubtedly the most influential member of it during his four yoars' term of office. When I took charge of the State Treasury there was only 842 in it. Hy the Comptroller General's report for 1867 the bonded and stock debt was nearly 86,000,000, and- there was considerable interest outstanding, as well as other unadjusted debts amounting approximately to 83,000,000. The tax of the first year was 8 J mills upon the assessed valuation of the property of the State. This tax was expected to yield $1,200,000 or 81,300,000. The fiscal year of the State closed on October 31, 1868. We went into office in July, and a special session of the Legislature, was called immediately. Instead of ithpoeing a tax to cover the expenses of the current year as well as the year ending October 31, 1869, we only imposed one tax, as we bad then uu iiuuesb 1DHJDUOB W relieve mc peopie ui the State of all but necessary burdens. So we mado a tax for one year only, intending to provide for outstanding claims by the issue of bonds. Of this tax imposed wo collected about three-fourths, and the balance was left outstanding. No extraordinary measures were resorted to in order to onforce its collection, and I think that judgment was never obtained against the delinquents in the courts, v.- chamberlain's peculiar bills. Under tho provisional government a law ? had been passed authorising the funding of all outstanding debts, interest and principal, up to Joly 1, 1867. Tho Legislature fn July, 1868, passed a bill to pay all interest due from July 1, 1867, in gold. This bill was enginecrtd by the State Financial Agent, II. H. Kiuipton. He was a friend and olassmate of Chamberlain's, and was introdnoed by him to me as the proper man to bo the finanoial agent of the State. IIu was Appointed by tho Financial Hoard? Scott, Chamberlain and myself. The bill was regarded by us as Kimpton's measure, and ho represented that it would raise tho valuo of bonds materially and cnhnucc the credit of tho State. In this view he was supported by Chamberlain. Hero I may say that I never kuew a fiuancial act to pass the Legislature which was not proposed as a bill by Kiuipton and sanctioned by Chamberlain. Ilis bills were always passed as presented. In regard to this particular bill it should be added that the interest demanded was paid in gold uutil the winter 18G970, when the law was changed so that thereafter the interest was paid iu currency.? Kiuipton was himself obliged to obtain the change of the act, as it was impossible' to meet tho demands upon the treasury for -gold. Iq |1mi n f iStiS and 1869 ahu ^legislature passed acts to provide for tho redemption nt par of all floating debts outstanding. All these financial measures authorizing the issue of bonds were susceptible of two interpretations. The wordiug of ouc act will sufficiently illustrate this nni n f * "The Governor is hereby authorized and directed to borrow 81,000,000 upon bonds of the State of South Carolina, said bonds to be signed by the Governor and Treasurer and sealed by the Secretary of State, to be payablo iu South Carolina and at the New Tork financial agency." The debatable point is whether bonds representing 81,000,000 were to bo put on the market; or whether 81,000,000 was to be obtained by the sale of bonds at auy price. This point 1 will take up presently, in round numbers the Ftuaucial Board was authorized to raise 83,200,000 iu the.years 1808 -60 by the issue of bonds of the State of South Caroliua; 81,000,000 for the payment of interest on the public debt at 6 per cent.; 81K000,000 lor the relief of the treasury at 7 per cout; 8500,000 tor the redemption of Governor Orr's currency ; and 8700,000 for the purchase of lands under the Land Commission; 81,200,000 was called for iu addition to provide for the redemption of the bills of the State Bank. These bills have not yet been redeemed, but are lloating abuut in considerable quantities, though 1 do uot believe any one knows how many arc iu existence, in this session, also, the famous conversion net was passed. This act authorized the issue of bonds to take up all outstanding bonded and stock indebtedness of every kind, and authorized furthermore all holders of stock or any kind of government securities to convert them into these bonds. The object of this net was declared to be to give uniformity ar.d consolidation to all classes of securities.? All these acts, 1 repeat, was represented by the Financial Ageut, Kiuipton, and urged upou the Financial Board by him as a necessity. They were never prepared by Scott or myself, but always by C'hambcrlaiu and Kimpton. Cbainberlaiu used to say to 111c that Kimpton declared these measures to be necessary, and he supposed that they were so. Under the net authorizing the Governor to borrow 81,000,000 to pay tho interest upon the public debt, $2,000,000 of bouds were issued ; ?500,000 of these bonds were returned iu presence of the Financial Board and others ; 8250,000 were exchanged by tho Financial Agent for conversion bonds ; 81,250,000 remained out. The 8500,000 of bonds that were returned had passed through the hands of tbe Financial Aerent. While in his possession coupons might have been taken off, or they might have been applied for the payment of interest, and so got into the hands of the public. In this last way they might have been presented to the State Treasury honestly for funding.? I was sued upon a civil process for $450,000, in 1874, the allegation being that 1 had funded that amount illegally in the Treasury. A judgment was rendered against mo for $75,000, but this, you will bear in mind, was the judgment on a technical wrong in a civil suit. As soon as the conversion act was passed ft/very large number of these bonds were printed. Of these bonds $1,200,000 were issued strictly in accordance with the provision of the act, but all others issued were put on the market in un arbitrary manner For all that, the money obtained by tlio salo pf these bonds, which were outstanding until repudiathed by Frank Moses, was used by me, as Treasurer, in aocordanoe with law. , ENOKMOU8 ISSUES OF BONDS. Now, the $3,200,000 which the Legislature authorized the Governor to r use by the sale of bonds had to be obtained at a sacrifice. The bonds of the State would not sell at anything like par. In fact, when first issued we were obliged to dispose of them for twenty cents on a dollar. When the aots passed the Legislature I understood, and I think it was generally understood by all membei\pfsthc Legislature, except those let into the secret, thnt$3,200,000 in bonds at par was the total sum authorized by the .. - tnL -? ? ?? * itota. n neo me acts were pasaeu, nowever, Chamberlain and Kimpton pointed out what vraa the literal interpretation of the acta. They oontcnded that bonds could be sold at any sacrifice to obtain the sunt in cash of $3,200,000. Relying on Chamberlain as the legal adviser of the board, Scott and I consented to the issue of the amount ot bonds necessary to raise the authorized sum We found, however, that the ordinary bonds or the State were not taken readily when put on the market.? Hanker* require the best security possible before they will invest their money in the purchase of bonds that the bonds are legally issued. This point was involved in 60uie doubt, and when thoy also discovered thnt there were more than a million of bonds issuod under the act to provide for the payment of the public debt, they refused to deal iu these bonds, or rather to take them in any way. In this exigency recourse was had to the act authorizing the issue of conversion bauds. The act provides that these bonds shall be issued for the redemption of other i State securities, but it was contend ;d by i Chamberlain and Kimptou Miat these bouds i ooufd ?Uo bo-i?ocS direct I iff," thdjT : could be put on the market and sold like t ordinary bonds, aud the proceeds devoted < to the redemption of outstanding claims i aud to meet other State expenses. Scott and I were prevailed upon by Chamberlain | and Kimptou to countenance iliis issue of 1 bonds. When, therefore, th f?Sl> panvnreinn I bonds wcro put directly ou the market they i were sold quite readily, for bankers bud no : means of knowing bow many were issued or < could be issued in ouc year. So they secured i these bonds as collateral security and pur- 1 chased them iti preference to the others.? j Perhaps this was not exactly fair, but we t went on the principle that outsiders were < bound to look out for themselves. The ob- t ject of the Financial Board in this was to s secure money at the least cost to the Stale, i and there was no intcutiou to defraud the ti State thereby. During the four years iu which we were in office tlKTTjohiTcd 'fifcht of the State was increased about $10,000,000. ( All outstanding claims were provided for ( and wiped out, so that at the end of the j four years the only outstanding debt was for the current expenses of the State during v 1872" I This board has been censured for causing ( these acts to be passed. Who drew up and t presented the acts ? Chamberlain drew up j every one of them and Kiuipton presented , tncm. The proposition for the issue of ' conversion bonds diroctly was made by J Chamberlain. I looked upon this issue as a j necessity. 11 jok upon it now as I did tlicu. j My lirst opposition to the issue of loiids in t the constitutional convention was due to the j belief that the Slate expenses could be pro- ^ provided for without this issue, by taxation. Wucn I fiund, however, iTiat'iiit! Sttlte expenses were extravagant and demands were made upon the Treasury by law for money, I . acquiesced in the measures proposed by . Chamberlain and Kimpton. A SELIIOI.'S t'lIAKUE AUAINST EXdOYEIUNOlt (] MOKES. | There was a terrible increase of expen- 1 dilures at each succeeding session of the t Legislature. Frank Moses was in the chair, e ami I am told by trustworthy persons that il ho has acknowledged to having signed away fi 6500,QUO dishonestly, though 1 am sore : that it was a much larger suui. 1 believe '1 that three or four millions of dollars were i: spent in excess of the necessary expenses e for the meetings of the Legislature during a these four years. Both Senate and House y were responsible for this. The first Prcsi- a licut oi the Seuatc was a prei^^o^S man, n Boozer. They soon got him out, however, s He was elected a Judge and went out dur- s iug the first session. Kansicr, a colored s man, took his place. He was equal to the v occasion. Corbiu was President pro U-m. a of tho Senate when Boozer, the Lieutenant v Governor, was absent. 1 paid (Sorbin a good deal of money. Still he held a large 1 number of oflices and received large sula- t ries nnd regular perquisites therefrom. I I know nothing, therefore, to inculpate hiui. a I hud no doubt that a number of charges 1 brought against the treasury were improp- e erly passed by the Legislature. In particu- ? lar, there wero a number of ?5,000 claims r presonted which I thought were outrageous; 11 certificates issued by thos* who purchased ^ Senators and Representatives. The ccrtif- ' icates were properly authorized, however, c and I had to pay them. Suppose J.had re- r fused to honor them, what would have been I tho result'!' Why, 1 should have been 11 kicked out for not doing u.y duty as Trea- J surer. Tliero was too much influence 1 brought to b<5ar agaiust mo. If 1 had stood ^ out alone it would not have made any dif- c fercnco. Whv. I hnvn Imnn I.Vont ti -v , A J""" r Moses with tears in my cyow, and said to *him: "You will have no money at all in the F treasury it' you goon in this way." Frank 0 Moses would only look up and lough.? "Talk about theso Republican reformers," he would say ; "you never heard me say any- 1 thing about reform." "No," said I, "I nev- t er did." a I went out of offico on October 31, 1872. c Scott went out the samo time, and Moses [ camo in as (Governor. Samuel Melton succeeded Chamberlain as Attorney General, j but when Chamberlain' wont out of office r he becamo Melton's law partrxjrjJd^y so got \ right behind the throne again. the first aots passed by the Legish?^' y after t Frank Moses becamo Governor was an act r directing the Attorney General of th? t Stato to prosecute the luto Sinking Fund t Commissioners of tho State for corruption, i Theso Commissioners wore Scott, N eagle. < Chamberlain, the Chairman of the Finnucc t Committee of the Senate and tho Chairman i of the Ways ami Means Committee of the 1 House. l>id Melton doit now? What | did lie do ? Waited until April, 1874, and then commenced a prosecution against me. The complaint was made by Daniel II. Chanibcilain, then Governor and cx-ojjicio President of the Sinking Fund Commission. The Attorney General brought a suit for the recovery of 825,000, alleged to have been fraudulently misapplied. 1 was arrested and held to bail. A night or two before my arrest Chamberlain had been talking with me as pleasantly as ever iu the theatre where Anna Dickinson was lecturiug. Wo had a loving parting, but he sneaked off and caused me to be arrested on the next day, or within a lew days at any rata. When I succeeded, hoyvever, in pressing the thing to a suit it was nolle prosted (??e) by the Attorney General. On whose shoulders done l _ ??v?i v? uiuuib IUI 111U UUT" rowing of the 825,000 lie '( The linking Fuud Commissioners ought to have been prosecuted for their p;.rt in the matter, as well as for other crimes which they committed. The treasury needed the money, and t was none of my business who lent the unount. It was not my funeral at all. I :onsultcd with Chamberlain, asking him if t was any crime on my part to borrow this noney. "No," ho said, "it is no crime of fours." Chamberlain will say now that he vas in the minority on the Sinking Fund Commission, and that the commission lent he money to the treasury without his consent. At any rate, the Sinking Fund (Comnissioucrs are responsible for this matter, md not myself, the Treasurer. . .TilK lit.I.'K IUDUK ltAlI.UOAI) SWINhl.K. In regard to the Blue Ridge Road swinlle, by which the State is said to have been lefrauded out of 81,300,000, 1 can say at east that I bad nothing to do with the road xcept when called upon in my capacity as ?tatc Treasurer to pay over to the officers if the road the. scrip voted by the Regislaure. When llarrisou was President of lie road 84,000,000 was voted by the Rogslaturo in State scrip to defray the cxtoiises of its construction. Harrison apilied to Scott, who was then Governor, for uvmx'j) iim\? uvun/ iv?|utovcu jviiiijuon 10 urnish $200,000 to Harrison for the road, 11 return for $000,000 of the bonded stock if the road owned by the State. Kimpton, believe, still has that $000,000 of stock, 'nnicron succeeded Harrison as 1'resident if tire riuiLuiul I'utUvU'Xi xuqoqoOoiI Cnm ron. So i'attcrsou cauie to have control if the $1,000,000 of stock, less the $0,00,100 which Kiiupton had gobbled. It is his $3,000,000 that lie has got now to acount for. 1 know that he borrowed $325, 00 from a gentleman in this city, Mr. E. I. Wesley, giving $700,000 of (iic Blue lidgo Koad stock as security. I cannot ell what disposition lie made of any portion xcept of this amount. 1 never owned a lollar's worth of stock in the read myself. Scott owned stock in it and holds it to day, ^s to the letter of Patterson to me as State 'rcasurer, published a few days ago, authorzing me to deliver to II. II. Kiuiptou rcvnuo land scrip amounting to $114,250, I ni ready to admit that it was genuine. If ou ask me whether I paid this order. 1 uswer that I paid every order for this scrip nadc upon the treasury by Senator l'atteron as President of the road. I did not ee that I had any authority to withhold the crip so loug as it was drawn in accordance nth logal provisions. If the scrip was fterwards misapplied I had nothing to do rith this subsequent handling of it. As financial agent, of the State Kiuiptou lad in his possession all bonds of the State hut were ever issued for raising money.? le was net obliged by law to exhibit his ccounts to the State Treasurer or to tho financial Board, nor to render any vouchrs thereof, and he never did ho until his ii.al settlement. When his financial settlenent was made in accordance with a special ct ho received from the Financial Hoard a lue-bill of about 8150,001), and settled with he board upon what is stated to be a fraululcnt set of books. Chamberlain was a nember of the board and took an active >art iu all that pcitains to the issue, inanigeuicnt, aud settlement of its finances.? fudge Willard told me that Kiinpton bad Duuufuctured a fraudulent set of books, tut I cannot assert it of my own knowldgo. I suppose this statement will show ay band to him, but I do not care much, chamberlain signed the settlement and paters in that matter, and took part in all ther transactions of the board. THE PRINTING SWINDLE. The appropriations for the benefit of the lepublican Printing Company wero in he main a piroinfin K?rinill? W _ ..V.V/U.UU ,nd Joues who ran the company, will be compelled to tell how the money was appro>riated. The following dispatch to the Charleston Vcws and G'ou/i'c/supplomonta Mr. Parker's >rediction in regard to Messrs. Jones and Woodruff: "Tho agreement with Jones and Wooduff, the late clerks of the House and Sente, is that a nolle pros, shall be entered on he indictments against them, they to tesify iu behalf of the State when called rpon to do so. Kacli surrenders 828,000 >f bonanza warrants and all claims against ho State for printing, &c. Jones also surrenders his Itcaulhrt property, valued at ?12,000, and Woodruff surrenders the Republican Printing Company's building and fixtures in Columbia, valued at about 97,000, ami also claims against the Hank of the State for 9130,000. Iloth Jones and Woodruff saved their respective residences in Charleston as settled upon the wife in Woodruff's case, and the children in that of Jones." As to the Thomas W. Price Printiug Company, continued Mr. Parker, 1 know that Tiuunas W. Price is a merchant in Philadelphia, and T am quite positive that when his claim for printing was first pro sciueu it was lor Sli.UOU, and was afterwards raised to $16,000. James Thompson, Chamberlain's right-haud man and tho Editor of tho Daily Union-Jfcrald, acted as an agent between Price and the treasury. CHAMBERLAIN IilRECTLY CHARGED W1T1I CORRUPTION. I don't wish to say anything which may appear like a personal attack upon Chamberlain, though I acknowledge that 1 hate been offended by his treatment of me. 1 do object, however, to being made the scapegoat of the ring, and I am by no means willing that Chamberlain and Kimptou should foist off any of their load upon my shoulders. I am tired of hearing about . what Parker did and how he acted in this transaction and that, when 1 know that my share in the questionable doings of the ring 'roiu 186S to 187-4 was no greater, to say the least, than the other members with whom 1 acted. During these six years the corruption and peculation increased yearly, and it is idle to attempt to poliate or deny" "** it. If the present investigation in South Carolina is pushed, tho extent of the corruption will be laid bare and all who were narties io it will l>r? lirnmrlo ?.? ?* , -- - "-e"'' i wish it to be understood that 1 do not shrink from this investigation. I desire rather that it be made as thorough and searchingns possible, and I am ready to hold myself responsible for my share in it. If 1 have sinned in the matter I am ready to make the amends which the State shall direct. All that 1 ask for is that the part which each one of the ring took in the transactions of those six years shall be exactly determined, and condemnation meted out in proportion to tho extent of the offending. For Chamberlain and Kimpton to deny that they were privy to what was going ou is simply absurcd.? Some things, undoubtedly. Chamberlain had no hand in directly, though they were done under his nose, and he must have known about them. In other transactions bis unuic did not appear, but there can be no question that ho was couccrned in them in some way. Iu other cases still he reaped a direct beuefit from his co-opcration. Take the case of the Marine and llivcr 1'hosphatc Miuing Company. The Shady transactions connected with the management of this company and the hills lobbied throuirh the Legislature fur Wa n w.uvav U1C quite generally known. The measures by which the interests of its stockholders were subserved in the Legislature have been pul>lished in the Charleston papers, but Chamberlain's C'.'uncetion with it has not heretofore been stated. The stock of the company was owned largely by members of the ring, and Chamberlain held onc-fittcenth of it. It was $500,000, I believe, in all, so that Chamberlain's share of the stock was 832, 200. Tim Hurley, Chamberlain's righthaud man and the Treasurer of Charleston County, lobbied the bills for its benefit through the Legislature. Then there was the Greenville and Columbia Railroad. The bills passed in connection with this road were notoriously disreputable. Its capital stock was held in twelve shares, i think, of $25,000 each.? Scott, Ncagle, Patterson, Chamberlain, Cardozo, Kimptou, Hurley, Crews and myself were stockholders. A HIT O-' DIHKCT COKItlJI'TION. I know also that Chamberlain received $2,000 direct for his connection with a transaction which I do not care yet to make public. It was the same transaction alluded to in the letter which Elliott read in the last nominating convention. He rose in his seat, brandishing this letter, and threatening to make its contents public. An agreement was thereupon patched up between him and Chamberlain, and he made the best he could of his previous threats against him. He read the letter, omitting the names of the persons concerned, one of whom was Chamberlain. 1 have spoken of the 8150,000 due-bill in favor of Kiinpton, audited 4 by tlio Financial Board. Now, when Kimpton was appointed fiuaticinl agent, an agreement was made between him, Chamberlain and myself, that all commissions accruing to him should be divided equally among the three. Scott was left out of this arrangement, although he was on the Returning Board. Chamberlain and myself were thus entitled by this agreement to $50,000 of the audited claim. As a matter of fact wc never got a dollar of this amount, for Kimnton's dllfi-hill hns neiror hnnn ni!il orwl ? ~?.. ...... I should bo very much surprised if it ever should be, in view of the coming developments in the pending investigation, Poth Chamberlain and Kimpton will deny this arrangement as a matter of course, but it is a fact, nevertheless. You may remember the letter from Chamberlain to me, published in the Charleston JVnes and Courier some time ago, which read, as nearly as I can now remember : "Dear Parker, how I . (lONCI.rr>KI> ON SROIIXK rAOE)