University of South Carolina Libraries
firm -was their knowledge of Ability ^ of the ballot box iu ?es. The present system invites (and opens wide the door to the of every fraud. When the High ^county, whose powers are second 'se of the Chief Executive of the pen convicted in the metropolis of r a iuiy of his choice, in a forum &m local prejudices and bias, it is ?the citizens to sound the alarm and the Legislative power for relief, tpd, th s committee recommend the 1 this report to the Executive Com? further action; to confer with the land invite his co-operation in a i the' Legislature at its next regular such changes in the present elec ld especially in such parts thereof the custody of the ballot-boxes for [of ten days after elections before i declared, afield introduced the following Ion, dated March 26th, 1869: tee was appointed from the Senate r )f Representatives for the purpose Lring irregularities in the election iu Congressional District, and, where lieved that a larger amount has been the Treasury than has been prop ited for. therefore, ? That the attention of the Execu iittee be instructed to inquire into f, with" a view of determining what aid be taken in the matter, if any. svention then adjourned until 4 P. M. LNOON SESSION. littee of Five, on postponement announced by the chair, as fol ipns, W. M. Shannon, M. L. Bon ;H. Giles, J. P. Richardson. . ley, from the Executive Committee, r_irding the mortgages on tire Blue >ad and other companies to Henry? ., and the report and resolutions to. cntive Committee, to whom veh resolution to require and report ; terms and for what consideration ind execution of the Blue Ridge kopany and other companies, of a [Henry Clews, Henry Gourdin and imeron to secure the payment of 3, was ratified and confirmed by ire, and the said mortgage de [b, lien prior to that of the State on [described in said mortgage, and Jie of the Blue Ridge Railroad, and properties of the several com iich they or either of them may juire,*' and also to report <4what can be taken by this body to pre ^bordinetion of the State's hen upon [Ige Ri.ilroad, and the entire pro r3 other companies,to junior claims idividuals," beg leave to report, a careful examination of the act ire, we can reach but one con it for some reasons unknown to e, the Legislature has, without an, relinquished to private individ e's lein upon the Blue Ridge Rail le entire properties of the other (styled companies in the act), the and Columbia Railroad Company, frgs by trustees with the property or eir ceslv.i qut trust can only be the Mid, are unauthorized by law and tmmittee need not dwell upon the le State and her utter inability to Ate individuals or corporations by Icent gifts, or upon the fact that ^however generous they may be, are ?med to donate public funds to the sfit of their friends or patrons, second branch of the resolution, tee can suggest no better plan as a j is embraced iu the following reso lat the Tax-payers'_ Convention [n the high legal attainments and patriotism of Messrs. Porter and in sellers at law, request them in the ie whom they represent to give the his report their careful considers [intheirjudgmentitbe practicable steps as are necessary to prevent 58 of law the consummation of jn the property holders of the That copies of this report, and the iutions be officially communicated irter and Connor, spoke upon the subject matter, sembled for the purpose of ferret 1 checking fraud, and sir, while m said of the sufferings of the unjust measures which have been one word, sir, has been uttered, I those who are the authors of in legislation. Had not Satan irden as a tempter, our parents fve sinned. Were it not for the would have been no sin; were (corruptors, there would now be no And, sir, we do not discharge our who sent us here, if we do not >se corruptors. Sir, the Legisla Carolina, ignorant as it is, would ?n bribed without money. That Lbave been furnished from some jurce, it is our duty to endeavor in this matter cry aloud and 'e should, if we would faithfully It duties, ferret out the guilty and got. Then we will have commenc ion in our government, and sir, it up, the day will come when we tand stillt" corruption has had its ch fear that our suffering mother the victim of strangers alone. I ear that it is not alone the so -bagger who revels in the money is. And, sir, for one, I am not lounce such characters because us. In doing it, I am not afraid, a son of South Carolina, I am ity which I owe to my poor ruined "we"grapple not only with the [we grapple with two strong and )rporation8, two incorporations ?en so much about the Legislature, ies and that of the Legislature Ito go together. They seem to [long at the rich man's door tak ?bs that fall from the rich man's ; last like Lazarus, the dogs of the lire licked their sores. ? I disclaim here any prejudice {incorporation within the. limits of ina. If I were to grapple with ats as these, I am encouraged with ;e that I am advocating honesty, fraud and theft. wn, Mr. President, that, during >f the last Legislature, there were rodnced which, if they had been ugh, would have destroyed the Railroad Company, and it may be, &ably is so, that to save its life, it Bate itself with that mass of cor ? fGreenville and Columbia Rail the instigator and mover of res. Am I to be told that, to ifthe Blue Ridge Railroad, its oLicers might justify themselves the course they have ? That feh a reason why the Blue Ridge mpany should be a party to such ft furnishes no ezevse. e measures were up. the officers spared to use every means to de? ine President, es he has an ig prepared to spend even a half )llars for this purpose; and more has boasted in our presence that itors to defeat these measures, ^as this company is concerned, 11 take of the opprobrium of j in it keeps. If that compauy was prepared to use this money for such purposes, am I not right in saying we should inquire who the corruptors of the Legislature are'( What next? We find the Blue Ridge Rail? road coalescing with the Greenville andColum bia Railroad Company?a road which at that time had a record that the very sulphurous stenches of hell itself could not render it more dark or disgusting. The stock of the Greenville and Columbia road is centered in the hands of a few men. We find the' Blue Ridge road coalescing with this company, who were trying to destroy their own. W e find them coalescing for what pur? pose? For the passage of an act of proposed consolidation. Read this act, and see what it proves. It first enables the Greenville aud Columbia railroad, that delectable ring of high officials, to negotiate SI,500,000 bonds, and enables the Blue Ridge Railroad Company to sell their stock for what it will bring. You will recollect when the" bonds of the Blue Ridge Railroad could not be sold for less than par. "What do they do ? They go to work and concoct this extraordinary act, and, gentle? men, to some of you, who have been familiar for many years with legislation in South Caro? lina, in connection with those illustrious men, the Haynes, McDufhes and Calhoun, I say to you, read this act, and you will pronounce it the most surprising piece of legislation that ever came to your kuowledge. The result will be, not good, but portentious with evil. What, gentlemen of the Convention, what is to be the scheme by which the Legislature is to have a plausable excuse for the passage of this act, concocted by these two incorporations? Let us go before the Legislature, say they, and say that we want to consolidate our corporations, and let us ask the Legislature to do something for this consolidated incorporation, that they could not do separately. Ihe language of the act in that "air view" of these things, etc. The proposed consolidation of the Blue Ridge and Greenville and Columbia Railroad Com? panies enabled the former to sell their bonds f'cr what they could get. Gentlemen, where is the wrong now? It is in the scheme whereby these men have combined their interests, look? ing to the defrauding of the people of the State. A law without a penalty amounts to nothing, and in this act there is no penalty. But, mark you ; that whereas the gift, was in view of a consolidation, the penalty could not attach after the consolidation. It is an established fact, that this consolidation will never take place, and that that very company to-day is preparing to sell itself to the South Carolina railroad. 1 do think, that just here, before I close, it would be well to consider if these incorpora? tions, either of them, continue to this time to manipulate the funds of the State of South Carolina. I do know that the bonds of South Carolina were hypothecated to enable these parties to meet their payments .on the stock of the Greenville road. Our bonds have been hypothecated to meet the liabilities of these persons who have purchased these bonds, and to place them in tbe high position of its stock? holders. Was there no one in the Blue Ridge railroad that knew anything of their trans? actions? Why, sir, the history is too well known to prove that those high in office were bound up in it, and peculiarly interested in it, and are to-day. They knew of these facts. 1 don't care ?anythiug about your modes of financiering. He who spends the money of another without another's permission, is a thief. By the passage of this act, by which they secured much, the Greenville and Colum? bia Railroad secured more. I am told that I ought not to talk 60 much about this, as there are only fifty-six miles of the Blue Ridge Railroad in the State; but, sir, he who will steal a pin, will steal a fund. Fraud does not consist m the amount which is stolen, it con? sist m the principle violated. Why was it said that the lien of toe State was above any other lien, if it was not to mislead the public? If I have spoken earnestly in regard to this matter, I have so spoken because of my feel? ings. If I have used language which sounds harsh, it is because I would endeavor, in some shape, to express the utter abhorrence and contempt I feel for the acts which are commit? ted to stave off some anticipated danger. I cannot think that anything justifies doing wrong that right may come. I cannot bide that the rich man in his glory, the might}' man in his power, should be passed by with a smile, while his tool is made to go to prison and to associ? ate with felons,, And if, sir, I have seemed to exhibit zeal, it is because I would save the State, not from the hands of those who having a few dollars get more, but from those who having money spend it to get it back increased by the earnings of the laborer?men who think they ought to escape condemnation because they are growing rich. I claim no exemption from personal responsibility. Messrs. John L. Manning, W. L. Bonbam and A. Burt were added to the Executive Committee. Mr. James A. Hoyt, introduced the follow? ing: Resolved, That the report of the Committee on Election and Suffrage laws adopted by the Convention, be placed in the bands of a special committee of seven members of this Conven? tion, whose duty it shall be to transmit the re? port as a memorial to the Legislature on the subject of proportional representation accom i panied by such suggestions as they may deem I advisabl e in order to secure the passage of a law at the earliest practicable moment after the L?gislature is convened, that the system of cumulative voting may be made applicable to the next general election, and that the princi? ple may be engrafted in general upon our sys? tem of suffrage ; and further, that this special committee be instructed to use their best exer? tions in favor of the passage of thus just, wholesome and equitable provision, so as to bring about a full and complete representation of all the people, and the protection of their rights and interests of persons and property in every respect. Tfie Convention then adjourned till 10 A. M. Friday, May 12. FOURTH DAY. - .IheXonvenlion was called to order by Hon. W. D. Porter, President. The minutes of yesterday were read and confirmed. The chair announced the following commit? tee under the resolution of J. A. Hoyt, on cumulative voting: James A. Hoyt, D. H. Chamberlain, M. W. Gary, E. J. Scott, W. H. Wallace, B. H. Wil? son, H. Gourdin. Mr. Chesnut from the Executive Committee reported on the resolution regarding the Sterl? ing Loan as follows: The Executive Committee to whom was re? ferred certain resolutions in reference to the Sterling Loan, and obligations which may here after be created, beg leave to report that they have considered the same, and recommend their adoption in the following form: Resolved, That this Convention, representing the property-holders and tax-payers of the State of South Carolina, do hereby deem it our duty to declare, that the so-called sterling loan, or any other bonds or obligations, hereafter is? sued, purporting to be under and by virtue of the authority of this State, as at present consti? tuted, will not be held binding on us; and that we recommend to the people of the State, in every manner and at all tiroes, to resist the payment thereof, or the enforcement of any tax to pay the same, by all legitimate means within their power. Resolved, That we deem it our duty to warn all persons not to receive by way of purchase, loan, or otherwise, any bond or obligation hereafter issued by the present State govern? ment, or by any subsequent government, in which the property-holders of the State are not represented, purporting to bind the property or pledge the credit of the State : and that nil such bonds or obligations will be held to be null and void, as having been issued in fraud and in derogation of the rights of that portion of the people of this State, upon whom the public burdens are made to rest. Resolved, That a Committee of Five be ap? pointed by the President of the Convention, to investigate and report a plan to restore the credit of the State, and to confer with the representatives of the " Fire Loan Securities " of the State, which have been practically repu? diated by the State authorities, with a view to repair the damage to the good faith and honor of the Commonwealth, by influencing an early liquidation of these obligations. Adopted. Also, reported on resolution of Mr. Adams, of Richland, in reference to taxation : The Executive Committee, to whom was re? ferred the resolution of Mr. Adams, of Rich land, in reference to the collection of taxes for the year 1871, beg leave respectfully to report that having already considered and reported upon the subject matters therein embraced, they ask leave to be discharged from their further consideration. Adopted. Also, reported on resolution to appoint a committee of five to prepare a truthful state? ment of the condition of the State now, and since the war: The Executive Committee, to whom was re? ferred a resolution to appoint a committee of five to prepare a report of the con? dition of the State now and since the war, beg leave to report, that they have considered the same, and recommend that the committee be raised for that purpose, and that the follow? ing gentlemen compose the same: viz. Messrs. A. P. Aldrich, ArmisteadBurt, J. L. Manning, M. C. Butler, W. D. Porter.; Adopted. Mr. Aldrich, from the same committee, ui troduced a resolution, that the name of James Chesnut be added to the names of Messrs. Porter and Connor, in the Blue Ridge railroad and Greenville and Columbia railroad bond proceedings. Mr. Trescott moved an amendment, that the committee be instructed to report at once. The amendment was laid on the table, and the resolution adopted. Mr. Trescott and Mr. Warley spoke upon the amendment. Mr. Trenholm from the Committee of Eleven submitted the following report on finances of the State, and which was with the resolutions adopted: The Committee of Eleven to' whom was re? ferred the resolutions regarding the finances of the State, report as follows: This resolution having been published in the newspapers be? fore the assembling of the Convention, your committee were promptly apprised by his Ex? cellency the Governor, and by the other State functionaries referred to, of their readiness to furnish the required information. The Comp? troller General furnished to the Convention themselves a printed "statement of the funded debt of the State of South Carolina and infor? mation relative thereto." In this "statement, the total funded debt of the State," is set down as the sum of $7,665,908.98. To the sum of the funded debt, viz.: $7,665,908.98, must be added in order to exhibit the sum total of the debt of the State, the cash advanced to the Treasury .by the Financial Agent. This is . set down by'Mr. Eimpton at the round sum of $800,000, and also the further sum of $400, 000, for bonds sold by Mr. Kimpton since the date of the Comptroller's report, viz.: making a grand total 3f debt of $8,865,908.89. The sum total of bonds remaining unsold in the hands of the agent, as already shown by the Comptroller's statement, was $2,200,000. From this amount, must be now deducted the amount sold as above stated, $400,000. leaving $1,800, 000. This amount of bonds, namely $1,800, 000 is pledged for the security of the $800,000 of cash advanced by the agent. In view of this condition of the finances of the State, your committee would respectfully make the following recommendation, viz. 1. That his Excellency the Governor be respect? fully requested to confer with the financial agent (who is now in Columbia, and to tele? graph to New 1'ork not to sell any more bonds of the State at less than 80 per cent. 2. That his Excellency be respectfully re? quested to proceed to New York, and to make the most economical arrangement possible for holding this $1,800,000 of bonds, until the above limit of SO per cent, becomes attainable. 3. At 80 per cent. $1,000,000 of bonds will discharge the debt of $800,000 due to the finan? cial agent, and release $800,000 of the hypothe cated Donds. This sum of bonds your com? mittee recommend, that it may be respectfully suggested to the Governor to use in the follow? ing manner: f he amount of funded debt now payable, and that approching maturity combined is as follows: Fire loan bonds, Baring loan. $440,000 Fire loan stock. 304,000 Amount over due. $744,000 State House bonds to mature on the 18th of July, 1871. $250,000 $994,000 You committee recommend that the $1,800, 000 of surplus bonds above referred to, as soon as they may be relieved from hypothecation, be applied to the satisfaction in part of the above debt of $994,000. The $744,000 of over due bonds constitute so much of the fire loan debt for which the capital of the Bank of the State is pledged, and your committee indulge in the hope that it may be discharged from thai source. If the arrangements suggested by the com? mittee can be carried into effect, the result will be as follows: Sum total of debt already stated, $8,805,908 98 Add the bonds now in the.hands of the Agent, and proposed to be issued'.. 1,800,000 00 $10,665,908 08 Deduct the advances made by the Agent and proposed to be paid. 800,000 00 $9,865,008 08 Deduct the amount of funded debt proposed to 'be paid by $800,000 of surplus bonds on the basis of 80 per cent, for the bonds, viz. 640,000 00 $9,225,908 08 Should the remainder of the $994,000 of funded debt, now pressing for payment, be dis? charged out of the assets of the Bank of the State, viz. 354,000 00 The final sum of the funded debt will be. $8,871,008 98 It may be reasonably objected to these sug? gestions, that the present market price of the bonds is only 65 per cent., while the calcula? tions made proceed on the basis of 80 per cent, for the bonos. But it is quite reasonable to expect that upon this exhibition of the exact condition of the debt of the State, and upon the concurrence of his Excellency the Governor, in the general course of arrangement herein re? commended, there will be an immediate and considerable advance in the market value of the bonds, and greatly increased facilities for hold? ing them off the market. Referring now once more to the sum of the funded debt, the committee deem it proper to state that they had expected to verify the account by the evidences in the Comptroller's office, but they were disappointed. The act of August 26, 1808. authorizing an j issue of bonds for the payment of the bills re? ceivable of the State, provided that the bonds should be signed by the Governor and Treasu? rer. Subsequent acts followed the same course. In consequence, there is no record kept in the Comptroller's office. The preceding statement, under the authority of this officer, is derived from the Treasurer. It is confirmed by the Governor, who united with the Treasurer, Mr. Parker, in giving to the committee every assur? ance of its correctness. And it appears to your committee that the several issues and sums of bonds described are of unquestionable legality and force as obligations of the State. It seems proper further to explain that the bonds under act of August 26, 1868, "for the payment of the interest on the public debt," were at first is? sued with the above words embodied in the form of the bonds. That these words being deemed objectionable, another set of bonds for a like amount ($1,000,000) was prepared and executed, and were sent to the financial agent to supply the place of the objectionable issue. Of this objectionable issue of bonds, 5500,000 were long since returned and cancelled, as ap? pears by the assurances given to your commit? tee by the Comptroller and Treasurer. Upon the authority ot Mr. Kimpton, Agent, and Mr. Parker, Treasurer, it appears also that a fur? ther sum of $400,000 has been returned within a few days. These have not yet been cancelled. Mr. Kimpton also assured the committee that the remaining $100,000 would soon be returned: that there was not any longer delay in effecting the exchange than arose from the necessity of waiting until the several loans matured for which the first bonds had been pledged. The arrangement of having a financial agent in New York, does not make a favorable im? pression upon the committee. Copies of the accounts rendered by him for the fiscal years of I860 and 1S70 are annexed to this report for reference, marked respectively B. and C. The large sum in money or bonds always in the hands of the agent is attended with unu? sual risk in the management of the finances of a State: and the difficulty of keeping the ac? counts of the agency and of the treasury in constant and regular accord is great. It will be seen for example, by account "B" that at the end of the year, the total of the sums charged to the Treasurer by Mr. Kimpton, was $1,007,924.54, while the sums credited to Mr. Kimpton by the Treasurer, amounted to only $623,000; exhibiting a discrepancy of $384, 924.54, or disagreeament of $384,924.54. In like manner, account "C exhibits a disagree? ment of $294,726.92. It is true these accounts were recently brought into reconcilement, or rather into conformity with the accounts of the agency. There is added to both an account of the sub? sequent interest by which this was effected. Nothing appears in these accounts to impeach their correctness, but it will be seen how wide open is the door for errors and disputes, if for no graver misfortunes. It will be seen that among the items brought to the credit of the account by the subsequent entries, are these, viz: Account (B) fiscal year, 1869, for expenses, including interest as explained to the commit? tee.$64,996 71 Account (C) fiscal year, 1870, for expenses, including interest.94,977 42 $159,974 13 These appear to have been passed to the credit of the agency without being audited. The committee understood Mr. Parker, the Treasurer, to say that he had not received an account of the several items of expense that go to make up the two sums of $64,996.71, and of $94,977.42. These charges, as will hereafter be shown, add enormously to the in? terest of the public debt, nor is this the end. The committee learned from Mr. Kimpton that his own proper commission as agent was not included in the above sums, and that the rate of compensation is not even determined or agreed upon. Your committee would have preferred to show with precision what rate ot interest re? sults from the addition of these charges, but it is seen that the full sum of the expenses is not yet known, neither do the accounts show the exact average sum of the cash advances made to the Treasury. Some approximation to the truth, may, however, be made in this way. By the report of the Comptroller General for 1870, pp. 101 to 104, the following appear to have been the quarterly balances due to Mr. Kimp? ton. bv the Treasury. October 1st, 1869.$515,424 54 January 1st. 1870. 180,009 54 April 1st, 1*70. 548,347 84 July 1st, 1870. 573,317 21 October 1st, 1870. 880,848 95 Total, $2,697,943 08 This sum, divided by the five periods, gives an average of $539,588.61, as the sum ot the advances, and seven and a half months as the period of time for which they were made. The interest and other charges, as shown in an? other part of this report was for twelve months $94,777.42 or $7,914.78 per month. For seven and a half months it is $59,360.85, or at the rate of 17 per cent, per annum. And to this is yet to be added the agent's commissions. Mr. Kimpton is under the impression that his average advance was greater than the sum stated by vour committee. But even if it was $700,000, instead of $539,588 61, the interest (without his commission) would amount still to the high rate of ISA per cent, per .'annum. The loss sustained by the State in this mode of dealing is obvious, and it is augmented apparentlv by the fact thai all this risk, ex? pense ancf trouble, resulted in the sale of only $1,000,000 of bonds, and these at the moderate rate of 70 per centum. The act providing for the payment of the interest on the public debt in gold had been passed, and had added very largely to the annual charge. The interest paid by the Comptrol? ler according to tbe report of 1870, is.$190,879 44 The coupons paid by Mr. Kimpton, amounted to. 209,014 50 $399,893 99 The premium on gold pnid^by Mr. Kimpton and charged in the same account (C) is. 84,362 00 $484,255 99 Thus raising the interest on the funded debt that year to about 7J per cent., instead of 6 per cent., and adding $84,362 to the expenses of the State. The face of the bonds, it is true, rose to 80 per cent, and upwards; but the State derived no benefit from the expense she had incurred to produce the advance. Only one million was sold, and those at 70 per cent. In reviewing the financial condition of the State, it was impossible to fail of being gravely impressed by the enormous expense of the pres? ent day as compared with the past. Your com? mittee earnestly appealed to his Excellency Governor Scott to use all his power to enforce retrenchment in every department. It was im? possible for your committee, in the short time allotted to their arduous task, to examine into the various accounts that exhibit these expen? ditures, nnd to suggest in what particulars they mny be curtailed. They procured from the Treasurer, in a com Bendium form and attach to this report,accounts ? and E, showing the receipts and disburse? ments of the Treasury for the years 1809 and 1870. They commend these interesting docu? ments to the careful examination nnd earnest consideration of the tax-payer6 and of the Leg? islature. They believe that all necessary re? trenchment of expenses may be effected, and that it is the shortest and best nvenue to escape from the financial difficulties we suffer, and the surest means of restoring quiet and confidence among the people of the State. Less than $660,000 will pay the interest in gold on the funded debt, and $1,200,000 of revenue should abundantly suffice to defray the interest and all other expenses. The committee believe that by a vigorous and persistent economy our expenses may be reduced to this sum, and the taxes proportion? ately abated. The examination of Mr. Kimpton's account in detail was found impossible as his books of account are necessarily in New York. The importance of such an examination is, however, [ recognized in the interest of the State, and for the satisfaction of the Financial Agent, by whom it is courteously and cordially invited. The same may be said of the several officers of the State to whom application for information was made by your committee. Mr. Neagle, the Comptroller General, was Earticularly pressing in his solicitations that all is books and accounts might be thoroughly and critically examined. As the result of the deliberations of the com? mittee on the matters referred and now reported on, they would respectfully recommend to the Convention the adoption of the following: RESOLUTIONS.* Resolved, as the sense of this Convention, That the funded debt of the State as described in the report of the Committee of Eleven of this body is a valid debt, and that the honor and funds of the State are lawfully pledged for the redemption thereof. Resolved, That the general plan for the ar? rangement of the funded debt, suggested by the committee, be recommended to me favorable consideration of his Excellency the Governor. Resolved, That to complete the examination of the accounts of the Financial Agent in New York, the Committee of Eleven be authorized to sit during the recess of the Convention, and to send a sub-committee to New i'ork for the purposes indicated, and that the said committee and sub-committee be further authorized, if re? quired by Governor Scott, to assist by their counsels at home or in New York in the pro? posed negotiations for the final adjustment of the funded debt. Resolved, That his Excellency Governor Scott be, and he is hereby, earnestly solic? ited to make a systematic review of the various classes of expenditures for the pub? lic services and to use his authority and influence in arresting the present extrava? gant expenditures and in substituting a sys? tem of rigid economy and accountability in every department of the public service. That to this end his Excellency be earnestly and respectfully urged to adopt the sun of SI,200, 000 as the utmost limit of expenditure, and exert all his power and influence to reduce the expenses, including the interest on the funded debt to this sum, and to diminish the taxes in the same extent. Resolved, That the Comptroller and the Treasurer be required by his Excellency the Governor, not to destroy the $400,000 of ob? jectionable bonds referred to in the report, but to cancel and file them so that the fact of the cancellation thereof may at any time be demonstrated, and that the same course be pursued in reference to all redeemed obliga? tions of the State, of any character whatso? ever. Mr. E. J. Scott offered the following resolu? tion, which was adopted. Wliercas, it is customary and proper that persons entrusted with large amounts of the public funds should guarantee the safe keep? ing and faithful disbursement of the same, and whereas H H Kimpton Esq.. the State Finan? cial Agent in New York, wno holds about two millions of State bonds, has given nothing but his own personal obligation for the discharge of his duties. Resolved, That the attention cf the Gov? ernor and the Attorney General be specially directed to the risk of loss by the death or de? fault of said agent, and that they be requested to require of him a bond with such good and sufficient security as will protect the interests of the State committed to his hands. Mr. Jones offered the following resolution, which was referred to the Committee of Eleven. Whereas, By the act of the 2Gth of August, entitled an Act to authorize a State Loan, to pay interest on the public debt, the Governor was authorized to borrow on the credit of the State on coupon bonds, a sum not exceeding one million of dollars, or so much thereof as may be necessary to pay the interest on the public debt. And whereas, it appears that.in stead of one million, two million of dollars of coupon bonds were created, the one with the words "For interest" engraved thereon, and the other without those words : and whereas, although i* is now stated that 8900.000 of the two millions thus issued has been recalled; j therefore. Resolved, That this Convention cannot but deem this transaction as uncalled for, and without legal authority, and as exhibiting an irregularity and capacity for fraud which merits its stem condemnation. Mr. Chesnut, from the Executive Committee, reported as follows: The Executive Committee, to whom was re? ferred a preamble and resolutions in regard to a larger amount having been drawn from the Treasury, by the committee of the Senate and House of Representatives, for the purpose of investigating irregularities in the Third Con? gressional District, than has been properly ac? counted for, ask leave to report that they have considered the same, and recommend that the same be referred to the Attorney General, with the recommendation that the subject is well worthy of judicial examination, and, in the opinion of the committee, is entitled to the attention of the prosecuting officer of the State. Mr. Simons, from the Special Tax Commit? tee, reported as follows: The Special Committee directed by the Con? vention to confer with the Governor of the State, in relation to the postponement of the collection of the taxes in November ensuing, beg leave to report that impressed with the conviction under the peculiar circumstances of the case, and in view of the fact that the peo? ple of the State are thus called upon to pay the taxes for two separate years in one, of the justice of the measure of relief proposed they have had an interview with the Governor, who has authorized them to state to the Conven? tion, that while the various offices will be open in November for the reception of the taxes at that time, from such of the citizens as may be then prepared to pay them, yet that the period for their payment will be extended to the first of March A. D., 1872, within which time if payment is made no penalty will attach. Mr. Butler, stated that his committee, ex? cepting one branch, was ready to report. The Convention then took a recess of a half hour. Upon re-assembling, Mr. Butler, from the committee of eleven, to confer with the Gov? ernor, reported as follows. The report being adopted: REPORT. The committee to whom was referred the resolution of the Convention, "That a com? mittee of eleven be appointed by the chair to confer with his Excellency Governor Scott, in pursuance of the fourth resolution of the Cham? ber of Commerce and Board of Trade of the city of Charleston, and report to this Conven? tion in writing or otherwise," beg leave to re? port. That thev [have had an extended confer? ence with the Governor pursuant to the resolu? tion of instruction ; eliciting the following re? sults . It was stated to the Executive by your com- ' mitlee. that they visited him, not as partisans of any political party, but simply as representa? tives of the Tax-payers of the State, to ascer? tain in what manner they could co-operate with him in correcting many of the prevailing evils now causing popular discontent, and to obtain from him an official statement of such facts and suggestions, as would promote con? fidence and secure retrenchment and economy in the administration of the State Government. The Governor, in reply, expressed his grati? fication that he was afforded an opportunity to lay before the representatives of the tax-payers of the State, the facts in hi? possession and such information as would meet the views of the committee. He observed first, with reference to the finances of the State, that, notwithstanding the rumors that an illegal and irregular manipu? lation of the public funds had taken place, it was the fact, that nothing had been done in? volving the credit of the State which was not strictly authorized by law. And to satisfy the committee they were invited by the Treasurer, Comptroller General and State Agent, to make a thorough examination of their respec? tive official accounts. It is very gratifying to your committee to state that" these officials were present at the interview, and have given free access to their offices and books, upon which a special report will be made by a sub? committee of this Convention. The Governor produced the printed state? ment of the funded debt of South Carolina, which has been furnished to the members of the Convention by the Comptroller General, and remarked that he believed it to be sub? stantially true, and that he had not signed any other bonds than those set forth in said state? ment, and that none had been issued except by authority of law. 2. With reference to the unnecessary multi? plication and increase of State and county offices, he remarked that he was satisfied a large number of officials could be profitably dispensed with, and that if the Convention would take positive action upon the subject, it would probably have weight with the Legisla? ture, and induce economical restrictions, and expressed the determination to exert his influ? ence with the General Assembly to effect that object; all of which is more specifically set forth in the report of a sub-committee espe? cially charged with this branch of their instruc? tions. 8. Upon the suggestion of your committee, that one of the principal causes of popular complaint and dissatisfaction, consisted in the fact that many of the Trial Justices and other officers and agencies of the law were incompe? tent, and so unequally distributed as to prevent convenient and ready access, his Excellency replied that he fully appreciated the force of the remark, and knew that this was one of the most fruitful causes of the difficulties which have existed duriug the last six or eight months?that, until recently, he had had trou? ble in finding a proper class of men for Trial Justices and other officers, and that he was satisfied that much of the personal violence and indifference to law was due to the fact that the people have not the means of enforcing the law within their reach. 4. In reply to an enquiry from your commit? tee as to nis opinion of minority representa? tion, the Governor was clear and explicit in his endorsement of the plan, believing as he said, that it would do more to destroy preju? dice, prevent ill-feeling and educate the ma? jority, than any even; which could occur?that they would be the gainers should the Legisla? ture at its next session pass an act providing for minority representation. ?5. In regard to the election laws, the Gov? ernor was very decided in the opinion that they should be amended, alleging as the reason that as they now stand, distrust was created in the minds of the people, and temptation offered for the commission of fraud. He added that at the next session of the Legislature he would urge a change so that the ballots could be counted iu public as soon as the polls were closedt 6. Your committee urged the inability of the [>eople, after paying the taxes now being col ected, to nay a second tax in November next. His Excellency said in reply, that it had been represented to him by well iuformed citizens in several parts of the State, that for a large class of citizens, whose taxes were small in amouut, the month of November was a more convenient time of payment than any other; and he hoped that to this class of our citizens the collection of the tax at that time would not prove oppres? sive. But yielding to the representation of your committee, he requested them to report to the Convention, that he would authorize the Comptroller to suspend the collection of the taxes in all cases where the payment thereof was inconvenient to the tax-payers. That this postponement shall extend to the first of March, 1872, and that the penalty for non-payment should not be enforced in the meantime. In brief, to recapitulate, your committee an? stand his Excellency as havi:ag committed him? self to the following propositions: 1. That he has signed no other bonds than those set forth in the debt statement made by the Comptroller General, and that there have been no fraudulent or illegal issues. 2. That the State and county offices, both elective and appointed, are unnecessarily mul? tiplied, and should be reduced in number, aud many of them in pay. 3. That many of the officials charged with the administration of justice have been incom? petent and inaccessible to the people, and that many of the disorders complained of in the State have been created by this cause, and that he will replace them with competent persons whenever he can do so. 4. That he is in favor of the cumulative sys? tem of voting and minority representation, and would be glad to see it, made a part of the law of this State. 5. That the election laws are defective, lead to fraud, and should be materially amended, and that he will exert his influence to that end. 6. That he would have the collection of the taxes of next November postponed until the 1st of March, 1872, and not enforce the pen? alty for Hon-payment until that time. Your committee are aware of the wide? spread feeling of distrust of the present ad? ministration, and whilst they share to a great extent this common feeling, they think it would be wise and proper that a cheerful re? sponse be made to this effort of his Excellency to secure retrenchment and reform in the ad? ministration of public affairs. There has been nothing in the different inter? views between your committee and the Gov? ernor which leads them to believe that he de? sires or intends to repudiate his assurances of an earnest desire to correct many of the evils and grievances of which we complain. That, frauds the most flagrant, and corrup? tion the most dangerous and demoralizing have been perpetrated by many of the State officials, your committee have no doubt; but an investi? gation has scarcely been embraced within the scope of their instructions, even if they had had the power under the sanction of law and the time to have done so. In this connection, however, your committee recommend the adoption of the following reso? lution : Resolved, That his Excellency the Governor be requested to direct t he Attorney General to enquire into all cases of alleged frauds upon the Treasury, that may be brought to his no? tice ; and to make suitable provision for the remuneration of informers, and to the com? pensation of additional counsel, which may be necessary. That the Attorney General be in? structed, if found necessary or expedient, to attach the property of person a ascertained to be in default to the Treasury, or in any other wav to be unlawfully in possession of moneys of the State. A committee on the part of the Legislature is now in session in this city charged with the investigation of the transac? tions of some of the State officials. Your committee recommend the appointment of a committee of three by the President of this Convention, whose duty it shall be as repre? sentatives of a large body of the tax-payers of the State, to tender their services and co-opera? tion to the Legislative committee, in aid of the investigation now going on. Your committee not having the authority of law to press their enquiry into to the numerous alleged frauds and corruptions, to a satisfac? tory conclusion, and recognizing the occasion as one of too much gravity to be hastily and inadvisedly passed upon, have declined to be influenced in this regard by the unsworn state? ments of individuals. The foregoing recom? mendations, however, if carried out, will test the sincerity of those who have the authority for investigation, aud lead to a purification of the body politic. The adoption of the following suggestions is respectfully recommended for the considera tion of the Legislature at its uext session, with a view to the enactment and modification of certain laws. 1. Increase the revenues of the State by ad? ditional legislation insuring the full and faith? ful payment of the royalty on phosphatic de? posits dug and mined, pursuant to the terms of the charters of the respective companies. This may be effected by the appointment of reliable bonded inspectors or weighers, who should be required to determine by weight or measure? ment the number of tons mined before sale or shipment, e.na\ who shall receive for compensa? tion, a reasonable commissfon on amounts secured to the State through his office. Your committee are advised that a large pro? portion of the public expenses might be met from this source, if properly collected, where? as, but-thousand dollars have so far been paid into the State Treasury. 2. Repeal or prevent in future acts vesting valuable franchises, the right to dig and mine phosphates, etc., etc., in companies, all or a great part of whose corporators are members of the Legislature at the time of the grant. 3. Stop the drawing of money from the Treasury for alleged current legislative ex? penses on the order of the Speaker of the House or President of the Senate, in advance of any appropriation, which practice is in direct violation of Section 22, Article 2 of the Constitution, which provides: That "no money shall be drawn from the Treasury, but in pursu? ance of an appropriation made by law." 4. All appropriation bills should specify items under each general head. For instance, the practice is to cover, under head of "Legis-* lative Expenses," the payments to alleged em? ployees, clerks, messengers, etc., of the Gene? ral Assembly, who, as your committee are in? formed, outnumber the members thereof. 5. Reduce the n .mber of State and county officers, by blending the duties of two or more offices in one, and reduce the fees of Coroners, which are excessive. 6. Enact a law limiting each session of the Legislature to thirty days. 7. A law should be enacted, or the present law modified, prohibiting County Commission ers'from issuing any check until the account upon which it is alleged to be based, is first audited and approved by the County Treasurer or some other independent officer, and requir? ing the Commissioners to publish quarterly a statement in the nearest newspaper, of ail amounts collected and paid by them, from whom collected, to whom paid, and on what account. 8. Let the old law regulating the fees of solicitors be substituted for the present. 9. Repeal the actgranting a salary of $2.500 per annum to the Adjutant General. The office is a mere sinecure. Its practical duties can be performed by a clerk, to be appointed by the Governor, acting as Assistant Adjutant General. 10. Limit each public officer to one salary or compensation, for the same service. (Vide Lieutenant Governor's pay.) 11. Abolish Commission to codify the laws. It costs the State $15,000 aud does no duty which cannot be discharged by a clerk. The duties of your committee, Mr. Presi? dent have been delicate and arduous, and the time within which they were expected to dis? charge them, too limited to permit such a thorough investigation of the matters com? mitted to them, as they justly deserve. They have had to rely upon statements voluntarily furnished by the officials themselves, and the evils sought to be corrected may not find im? mediate redress. They trust, however, that such information as they have been able to procure, may lead to other and further investi? gation by the committee above recommended, and that the suggestions and remedies which they have had the honor to make, may result in good to the whole people of the State. Ail of which is respectfully submitted, M. C. BUTLER, Chairman of the Committee. After the several committees had rendered their reports, resolutions of thanks were adopted, expressive of gratification of the man? ner in which the Governor and other State officers had conducted themselves, to facilitate the various examinations and proceedings, also thanking the several railroad companies for the tender of free passage of the delegates to their, homes. Also, to the presiding officer, Hon. W. D. Porter, for the able manner in which he had conducted the proceedings. Mr. Porter responded in a speech expressive of his appreciation of the honor, and of feel? ings on the occasion. SPEECH OP MR. PORTER. If I felt any gratification at the honor con? ferred in the opening, I must feel still greater gratification at the satisfaction in the manner in which the duties of the chair have been dis? charged. It has been altogether to me a duty of pleasure. It has been my fortune to pre? side over one branch of the General Assembly of the State of South Carolina. I would pay to that body the tribute of saying that dur? ing the whole period during which I dis? charged those duties, I can call to my mind no act of any member towards the Chair, or to? wards a fellow member that would bring to me a feeling of regret. So much kindness was always exhibited in that body that it is a mem? ory of an honor that will remaiu with me to the last day of my life. And now, gentlemen, one of the greatest pleasures is what seems to me a re-union of the same kind. I see so many of my old associates. I receive from so many con? gratulations, and experience so many recollec? tions of the relations, that I feel as if it were a meeting of old friends after some shipwreck, or after some long period of tribulation. It is really a pleasure to look again in your faces, to see the sparkling of your eyes, and to feel the throbbing of your hearts?hearts that are now, as they ever have been, true to the best interests of the commonwealth. As for this Convention, I will not speak in praise of it; we need not be ashamed of it. Let its results speak in behalf and appeal for it to the country for its sympathy. I think it good that this voluntary body has determined to continue its sessions. If it act as an undignified and unharmonious body, it will accomplish nothing; but, if it act on the same spirit that it has, if it avoid Federal and State politics: if it wager no war against the State or the United States Governments, but simply, if it welcome to its ranks, as we have done, gentlemen who propose to be good, who are for wholesome laws, good magistrates, and a just administration of the public, funds : if it do that it will have accomplish? ed a great good. I think we have done much to remove misunderstanding, and inaugurate a period of better feeling, and better conduc? tion of our public affairs. Thanking you again for the honor you have conferred upon me, and wishing you a safe return to your homes. I bid you farewell. The Convention then adjourned sine die. Marion complains of high rents. Rust has appeared on the wheat in Oconee county. Charleston has an orgai.ization known as the " Poultiel Club." Mr. E. C. McClure is about to resume the publication of the Chester Reporter. The Washington Light Infantry, of Charles? ton, are organizing themselves into a Rifle Club. A new paper, the Darlington Index, is to be published in Darlington, commencing on the 11th instant. Union is troubled by the discharge of fire arms and pistols after "dark. The officers are active in arresting the law-breakers. A severe thunder storm passed over Union last Wednesdav, the lightning striking, but no one injured. The gardens were considerably damaged. :