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' BY E. B. MUfeRAY & CO. ANDERSON, S. C, THURSDAY, FEBRUARY 14, 1878. VOL. XIII-NO. 31. - RATXS OF ?SUBSCRIPTION'.?05Z DoiXAK unoT?t>rT Cinm D?r annum, In ?nscc Two 100Mu3l|NKVnr. ;e.fz. C^l^as f:r nix Soiiacripttoas are- not taken for s leu period has six month*. BATES OF APVBHo .Doll sr per i^u?re ol oneJncl?for th?ai^lnser??n,?n?Ftfly Cent? per square fsr subsequent insertions less than thren months. No adrertlsemeuts counte less than a square*, % ,, . ... UlkerJcontracts winbeai'attowfth fhosevbhin? to adrertise for three, six or tvalre months. A? Tertising by contract most be confined to the im inodlate business of the Arm orlndiTldoal contrac? ting. ? : Obltnarj- Xotieis exceeding five line*. Tributes of lliespect, and' all personal corrmunications or nutters of .indl-rtdual interest, will be charged far at advertising rates. Announcements of marriages r.nd deaths, and notices of a reli clous character, are i'oapoctfnUT solicited, and wDl-be Inserted gratis ' -:-:-: RBPOETOF TliE B05D COMMISSION. '.Tb'ilie honorable the Senate, and Some of \ Th*e" co'mmissloa to investigate the in debtedness of the State,-, elected at- the last session*of your honorable bodies, bj? joeapaofully toaepottj? ?e commission, mat in.the State Cap|gl3^fttos?^^in^|t?t--^jr Of Auyust, 1877, and continued to meet for the performance or their duties from day Their chairman, baring previously given public notice to all holders of con Bolid?Ucw: - bonds, coupons and certifi? cates of stock to producs the same before the commission at Columbia from the first, *ilay of August to the first day of September, the commission proceeded at once to receive, examine and register snciii of them as were produced for that purpose; and, as many of them were not produced until after the expiration-, of the period mentioned, the commission continued the work of reception, exami? nation a&f ?e6?s'try' until the first day of January, 1878, when they closed their books for registration. All the consolidation bonds, coupons and certificates of stock produced before the commission^jiad ;b":en issued in proper form eScVpT'Sohd No. 442,. for -tf&w, which waa without-' the; counter ?igtmture- of the Comptroller'General iind.eschange and? transfer- certificate of ;ntcck: No. 860,- for $252.50,' which was without the' great seal of the 'State;'! j1 j * The numbers and denominations of the consolidation, bonds and certificates of stock produced before the commission .aro .as follows: . 13,137 bonds for $1,000 each~$3,137,000 O0 1,082 bonte for $500 each... 541,000 00 27 irertificates of stock for 348 certificates of stock cf miscellaneous denomina tiwa.....' 188,680 70 62 exchange and transfer > certificates of stock of various denominations.... ^ 31,299 43 ^o^f-ajLiArA of bonds" and" ' certificates of stock pro? duced..$3,882,980 13 A schedule of these bonds and certifi? cates of stock, with the matured coupons attached,-to ^id^bond^datupated as i5fcA?ftwlW.'i;,w^ereto'anM and mac e a pirt of this report. In this connection, the commission deem it proper to state that tbey did -not 'certify as "correct any' df the consolida? tion bonds, coupons and certificates of j stock produced before them, because it was impossible to determine upon their validity at the time of their production, and beeimse, by the terms 6! the supply bill of June 9,1877, the final determina? tion 'fifl ferij^ld^wda; widely humped ' for the action of your honorable bodies; ' and it appeared to the commission that a certificate ol their correctness in any other sense than their validity would be ^Vl^HteM^ Iba?fp inform I their 'holders "or others. 'The commis? sion, however, furnished certificates of [ the fact of tb 2ir production, whenever requested by tbe producers to do so. , After the.larger part of tbe cppsalida-. lpx)OA-anq"ee>o|>?te9 of j ' stock b:id been received,; examined and registered, the commission appointed a si!b-commis8i?n,wcomposed of tT^o of ? their number, toattend to that dutyjwith | . reference to such other bonds,- coupons and certificates of stock as should be pro? duced, while the remainder of the com? mission addressed themselves to the duty of making.a. cqmplete asd thorough in? vestigation of the following: and kindred matters ^rtiealarly'mentioried in tbe second section; of the johit resolution' providrngfor their election:^ First, ??heZentixe acwjantVif consolida* tion bones and certificates of stock that bad been- issued under the act to reduce the volume of tbe public debt and pro ?rids fo> the pay eat of-tbe wsme. -- Second. Whether there is in the State ftnfthe fc v^??neien illed8>oiic& qgupops an^L certificates I >ck,wuecWr accordance w5th law~f ind authorized to be consolidated by tbe act above recited, to the .amount i jquired by the said act Without dwelling upon-the extent of J the htbor involved - in tbe performance, of this duty., or the difficulties under which ; the labor has been Der formed, growing a3 well out of the character of ] thu "labor itself as out of the absence from the State of all who bad been con? nected with, t he treasury during the peri? od in which these traufactions, had been carried on, the commission respectfully . report that- they have, made a complete r>aiid-thorough investigation of the mat? ters in "question. L Theyhavecompleteiyand'thorough ly examined ajl the books in/the treasury . showing the issue of consolidation bonds and certificates of stock. 2. They have completely and thorough ly examined.'all the vouchers in the treasury iu exchange, for and in lieu of | which tho consolidation bond:, and cer? tificates of stock were-issued. -Tbe comciission have also prepared '. three books: one of them for consolida? tion bonds,for $1,000; anoth er of them for consolidation bonds, for $500; and tbe other of them for consolidation certifi? cate? of stock; and have entered .herein, under proper beads, tbe number of each consolidation bond anci certificate of j stock issued, its date of issue, its date of j redemption,- its rate of interest, by whom it was signed, to whom it was issued, the date if was actually issued, and the numbers, classes, and denominations of | the old bonds, coupons and certificates of stock it was issued for ; and, also, the date of (be pre'uetion ot each- consoli? dation bond and certificate of stock pro? duced before the commission, the n.nne of it? present holder, the name of the person producing it, and the number of I matured coupons attached to it or. the amount of interest accrued upon it, with a blank column left in each book for, (en? tering the present status of each consoli? dation bond and certificate of stock, al? ter the action of your honorable bodies on the subject matter of this report, and according to the conclusions Of your hon? orable bodies thereon. From the investigation of .tbe Commis? sion, and as, shown by these booksj the entire .amount of consolidation bonds and certificates of stock issued is as follows: 3 575 bonds for $1,000 eneb..$3,575<000.00 11216 bonds for $500 each... 608,000.00 132 certificates of stock for $1,000 each....N. 182,000.00 52 certificates of stock for s $500 each. .26,000.00 1977 certificates of stock for < miscellaneous'-denomiDa-" . tions....:... 579,111,79 14'> exchange and transfer certificates of stock of mis? cellaneous denominations. 93,166.61 -Total amount of bonds and certificates of stock issued.$5,013,278.40 All of these consolidation bonds and .certificates of stock, howeyer, have not bet.'n issued in exchange for and in lieu of ?ld bonds, coupons, ceriificates of stock sad interest orders. Under the litst pro? vision of tbe fifth section of the act to j reduce the volume of the publik debt and | piovide for the payment of the same, fm i of these bonds for $1,000 each, numbers rK$, 127, 131,-138-?nd 210,havB been ex cb anged for certificates of stock No. 870 .for. W?OTAffin^-thr?suai them for -$1,000 each, numbers 77,78,139,144 to 162,-208,-406tii"209,' 3r6~fcr220, 262, 263,269.288 and ?8ihave been exchanged fo: certificate of stoikNo. 855 for $23,000, a?d the certificate of stock im mediately exchanged for bonds Nos._ 3455 to 3477 fo;* ^1,000 each. A large number of cer? tificates of stock have been exchanged for bonds, and a considerable numbsr of cer tiLcates of Bx>ck hare.b'sen transferred and surrendered at the treasury and new certificates of stock? issued in their stead. The entire amount of consolidation bonds and certificates of stock issued and now outstanding is as follows: 3,547 bonds for #1,000 each..$3,547,000 00 1,216 bonds for' $#)&" each.! - 608,000 00 28 certificates of stock for $1,000 each.;..:. 28,000 00 10'certificates, o.1. stock for '-?' ' .$500 each..:....."... ' 5,000 00 437". certificates', of stock, of ? miscellaneous. denomina? tions.............-Z~ 156,549 86 81 exchange and transfer certificates of stock of mis - ^ellaaeous denominations 51,741 05 Total amount of bonds and certificates of stock out !ii standing..........$4,896,290 41 ?" Tho amount'of matured coupons on the outstanding consolidation bonds is ?249,300, being for Dauuary 1, 1877, and July 1, 1877?the coed m ission regard! ng all coupons maturing at previous dates as constituting a part of the floating in-, debtedness of the State'; and the amount of matured interest on the consolidation certificates of stock is $26,920.57. A schedule of outstanding consolida? tion bonds and certificates of stock,' des? ignated as Schedule No. 2, is hereunto annexed and made a part of this report .As this sum of $5,396,290.41 represents the actual amount of consolidation bonds .and certificates of stock Issued in.ex? change, for old bonds, i coupons, certifi? cates of stock and interest at the rate of ?fifty per centum of'the face value of the latter, the entire amount of the latter in the treasuryas vouchers[should be$8,792, 580.82^'. The investigation of the commis? sion shows the actual amount of vouchers to be $8,792,779. Amount of all elates of bond3..$6,251,350 Amount of attached coupons.... 878,171 ?amount of detached-coupons.... 603,590 Total amount .of bonds and stock?......$8,792,779. . Of these $8,79^779 .of . Vouchers, The commission find that $4,793,638 were "issued in accordance with law and au? thorized to be consolidated by the act above recited." They consist of the fol? lowing vouchers issued in accordance with law and authorized to be consolida? ted by the act: Amount of all classes of bonds..$3,246,640 Amount cf attached coupons... 435,756 Amount of detached coupons... 56,569 Total amount of bonds and stocks..../..'......$4,793,633 The remaiaingV $3,999,146 of these vonchem, in the judgment of the com mianion, .were npt. issued in accordance with law and authorized to be consolida? ted by the act above recited." They con? sist of the following vouchers not issued in accordance with law and authorized' to be consolidated' by the act: Amount of all classes of bonds.$3,014,710 Amount of attached coupons... 437,415 Amount .of detached coupons.. 547,021 Total amount of bonds and , stocks.$3,999*146 I The grounds on .which the commission adjudge part of these $3,999,146 of vouch? ers to be-not authorized to be consolidated by the act above recited are respectfully submitted as' follows: 1. As to detached coupons from relief of the treasury bonds, numbem 777 to ?m, 820-io 827,^59 tp 906 aad.923 to !)35,. amounting to $9,135. '?- Between;March 16,1869/andj^Tlril 21, .1S6|>,' inclusive, th? State Treasurer "chaiiged the Financr?l Agendwith relief of the treasurv bonds amounting to $1,000.000, and" -under date of October 81,1871, the StateTreasurer credited"the' Fin.mcbl Agent with }01 relief of treas? ury bonds ?uinbered as above, for $1,000 each, amounting to $101,000, "they never having been issued as a chargir agairM the State';" and in recognition of this fact these $101,000 of relief of t.'ie treas? ury bonds were hot included amongst those" "authorized to be consolidated" by the acts above recited." ~ . Assuredly, as the bonds were never is-. s?ecV as a charge against the State, the coupons on them could never have be? come a charge against .the .State, and there was lib authority^ for cb'nWtlidating then under the act. 2. As to. detached coupons from con? version bonds,' numbers'^271:.to 3,469, 8,474 and 3,476 to 3,496,--amounting to $9,??r< "*'??." .'_ , Under the act to provide for the 'con-' version of State securities,4t .k?s theuni fo/di practice in the treasury, on the surrender of any coupon bonds of the StatBvto issue in lien thereof certificates oT stock of like amount, and on the sur renc er of the certificates of stock to Issue in-lieu , thereof coupon bonds of like, amount,' the coupons already matured on the latter bonds beHg "^detached 'froini then and attached" to the certificates of stock and filed away as vouchers. The conversion bonds in question were issued between November 16, 1871, and May. 14, L872, inclusive. The coupon bonds surrendered for certificates,, of stock in the transactions in question are riled away as vouchers in the treasury, with all .the coupons-which matured previous to their surrender taken off; the certificates of Mock issued in lieu of these' bonds boro; interest only from the date of the maturity' of^the test of these coupons; and the conversion bonds issued-in. .lieu, of these certificates of stock should' have carried only tho coupons maturing after thei-* issue, while the coupons which'pre? viously matured should hare been de tached from them, attached to thecertifi-i cates of stock and filed away as vouchers. The facts are, however, that the cou? pons matured on these conversion -bonds previous to their issue, are not. attached to the certificates of stock surrendered for them, and do not anywhere appear as vouchers in these matters of conversion. I On the contrary, the certificates of stock are without any mark or sign of any cou? pons having ever been attached to them, and -the coupons in question appear as vouchers in matters of consolidation 1 Whether they were fraudulently issued with the conversion bonds to which they were originally" attached, or whether they were detailed from the conversion bonds and abstracted from the treasury afterwards, the commission are unable to state; but as they matured before the bonds to. which they were originally at? tached were issued from the treasury, they never, become a valid claim against the State, and there was no authority for consolidating them under the act. 3.?As to detached coupons maturing on or before July 1,1871, jrom State Capitol bouds, amounting to..rc.$22,080 Blue Ridge Railroad bonds, amounting to. 18,410 Funding interest bonds, amount? ing to,;"....'.:,....... 45,643 Bills receivable bonds, amount? ing to;..:.;....\......~. 48,930 Interest 1 public debt bonds, amounting to. 94,110 Bills Bank of State bonds, amounting to. 59,988 Relief ofTreasury bonds,amoant ing to.....?. 130,900 Lane commission bends, amount? ing to. 4,770 Conversion bonds, amounting to 61; 194 Total amount of detached cou !ons.$486,025 he Comptroller General, who was specially charged by law with the super? vision of the public debt of the State, and who had the largest means of know? ing its amount and condition, estimated the interest thereon as follows: For fiscal y em* en ding Octo? ber 1,1868.....~ $434,791 52 For fiscal year ending Octo? ber 81, 1869.'.;. 329,492 38 For fiscal/year ending Octo? ber 81, 1870...:.......:...... 838,693 86 For fiscal year ending Octo? ber 31,1871.482,594 40 Total amount of estimates.^1,585,572 16 It is to be borne in mind that the act to p rovide for the funding of the interest -ana principal of certain stocks and bonds of the State past due, ratified September '21,1866, provided for funding part of the Srincipal and all of the interest of the ebt of South Carolina, the aaid interest to be calculated as due up to the date' of July 1. 1B67, so that the Comptroller General in estimating the interest on the debt was not required to go back of the latter dato. And the commission re? spectfully add that they have carefully and thoroughly examined the Comp? troller General's estimates and find them to be substantially correct. The payments of interest on the public debt for the same years were as follows: By the State Treasuber? During fiscal year ending Oc? tober 81,1869...$332,554 62 During fiscal year ending Oc? tober 31,1870. 190,879 44 During fiscal-year ending Oc? tober 31, 1871..:. 176,371 98 Amount of payments by State Treasurer.:.15699,806 04 Br Financial Agent? During fiscal year ?, ending October 81,1869:.....$196,714 50 During fiscal year ending October 81,1870.. 808,623 50 During fiscal year ending October 31,1871. 895,070 00 Amount o:' payments by Fi? nancial Agent'......../.. 900,408 00 'Total amount of payments..$l,600,214 04 Excess of payments over estimates. $14,641 88 In addition to this, there have been $2,474 of coupons which matured during the same years consolidated with the bonds to which they |were attached, showing payments of interest for those years of $17,115.88 over and above the amount estimated by the Comptroller General. While this fact would seem to afford I comparative evidence, in the absence of any proof to the contrary, that all the ! interest on the public debt maturing for ! those years had bean pard, allowing even a wide margin for any possible underesti? mates of the Comptroller General, all the presumptions in the matter point to the same conclusion. The State was not only paying the interest as it became due, up to and after July 1, 1871, but paying it in gold, and the holder of a coupon had every possible inducement to collect it at maturity. In occasional cases, absence, illness or other causes may have pre vented him from collecting it promptly, but neither absence, illness nor other causes would have led him ' to detach it from the bond, when Ao practi? cal purpose would or could be subserved thereby. ? i .It is a matter of ;bqth legislative /and judicial record, that all matured coupons were cut off from bonds;before the latter were issued from 'tue''treasury or Finan? cial Agency; and all the circumstances attending these transactions indicate that the detached coupons in question were obtained in that way or from that source. But, .however or wherever obtained, they- ware not valid claims against the State,' and were not authorized to be con? solidated under the act. Whatever proof exists that any part of the interest: on the public debt maturing on or,before July 1, 1871, remained un? paid must be found in the fact that cer? tain coupons maturing on or before that date remained attacked to the bonds to which they originally belonged, or in the presentation of certain certificates of stock with evidence of the non-payment of interest thereon up to that date. In thi matter of such coupons particularly, the fact they remained attached to the bonds to which they originally'' belonged must be rega'.-ded as conclusive evidence that they had not been paid; and if they were iu all other respects- fundable, the fact that they matured on or before July 1-, 1871, would _not tend in any wise to ?render them invalid. In this view" the commission have treated as valid the $2,474 of coupons already mentioned as consolidated with the bonds to which they were attached. 4. As to detached coupons funded by R. K. Scott, L. N. Zealy, agent, and Y. J. P. Owens, agent, between June 10, 1874, and June 24, 1874, inclusive, amounting to $331,996. .Nearly all of these coupons matured on or before the 1st July, 1871, and would be properly regarded ou that ground alone as not valid claims against the-Stute; but the testimony of N.Ues G. Parker, late State Treasurer, herewith Bubmi .ted, as well as the testimony of other witnesses, and all the known cir? cumstances of the case, point inevitably to the conclusion that all of these cou? pons, as well as those which matured after the 1st July, 1871, those which ma? tured on'and before that day, were "cut off the bonds that passed through the Fi? nancial Agent's hands," and remained in his possession as the property of the State. They were, in no sense, valid claims against the State, and there was no au? thority for consolidating them under the act The con mission submit that the grounds herein presented agninut the consolidation of the detached coupons respectively mentioned are in no wise inconsistent with the spirit or intent of the act, and in no wise impeach or im? pair the policy for the settlement of the public debt which the act was intended to effect It could not have been the purpose of the act that coupons which matured before the bonds to which they belonged were issued, and which were not issued with the bonds to which they belonged, b at were previously detached from thorn and filed away in the treasury and financial agency as vouchers to show that they had never been issue i and had been so detached?mere waste papers without an element of value or vitality? should he galvanized into life just long enough tj be passed over the Treasurer's counter and filed away as vouchers for consolidation bonds issued in their place. There are four other classes of vouchers which were consolidated under the act in accordance with its provisions, but which tbe commission, under the authority con? tained in the joint resolution providing for their appointmeut, respectfully report to your honorable bodies aij not having been "issued in accordance with law." 5.?AS TO TB!E HYPOTHECATED BONDS 'AND COUPONS. A mount of all classes of bonds..$l,718,300 A mount of attached coupons... 263,759 A mount of detached coupons.... 183,980 Total amount of all bonds and '' coupons.....'.$2,166,039 By the act to authorize a State loan to 'pay interest on public debt, ratified the 26th August, 186B, the Governor was au? thorized to borrow $1,000,000, or as much thereof as he might deem necessary, on coupon bonds, within twelve months from tbe passage of the act. By the act to authorize a loan to re? deem the obligations known as the bills receivable of the State of South Carolina, ratified the 2fch August, 1868, the Gov? ernor was authorized to borrow $500,000, or as much thereof as he might deem Uecessary, on coupon bonds, within twelve months from the passage of the act. ' By the act to authorize a loan for the relief of the treasury, approved the 17tb, February, 1869, authority was given to borrow $1,000,000, or as much thereof as] might be deemed necessary, on coupon bonds, within twelve months from the passage of this act. Under the directions of the officere mentioned in the several acts, the Finan? cial Agent might sell the bonds provided for in the first and second acts and use as collateral security for loans, or sell the bonds provided for in the third act. By the act to authorize th; Financial Agent of South Carolina, in the city of New York, to pledge State' tonds as col? lateral security and for other purposes, approved the 26th March, 1869, the Fi? nancial Agent was authorized to pledge the bonds of the State which the State then had or might thereafter have in its possession, as collateral security for State loans, provided that in all transactions he should conform to the provisions of the act to Authorize a loan to redeem the obligations known as the bills receivable of the State of South Carolina. And the act to authorize a State loan to pay the interest on the' public debt and the act to .authorize a loan to redeem the obligations known as the bills receivable of the State of South Carolina were so amended as to extend the time during whica said loans might be negotiated to twenty-four months from the passage of said' acts. Whether the authority thus given to the Financial Agent gave him only the same authority to pledge tie bonds to pay the interest on the public debt and the bonds to redeem the oilla receivable as be already had to pledge the bonds for the relief of the treasury, or whether it fave him authority to pledge other bonds esides, it is not necensaryin his connec? tion to determine. Even if it gave bim the authority to pledge other bonds be? sides, the proViso limits the ime within which he shall exercise such authority to twelve months from the passage of the act, so that, while he might pledge bonds to pay the interest on the public debt and bonds to redeem the bills receivable until the 26th Augunt, 1870, he could not pledge any bonds beeide af; er the 26th March, 1870. And yet the report of the special joint committee appointed by the General Assembly to ascertain what bonds of the State were pledged by the Finan? cial Agent of the State as coIUteral secu? rity for State loans, shows that the bonds in question were ail pledged by the Fi? nancial Agent for State loans between the 21st September, 1871. and the 10th September, 1872; more that, one year after tbe latest time for -pledging any of them had expired I There is no evidence) within the knowl? edge of the commission that these bonds, any of them, bad ever been'pledged within the times limited by law. Al? though the. very act which authorized the financial Agent to pledge the bonds of the State as collateral security for State loans directed bim to make and forward to the Comptroller General a re? port of his transactions quarterly, yet he made no mention of any pledges of these bonds or of any bond? in any of the re? ports he made and forwarded to the Comptroller General during his term of office* But even if these bonds had been pre? viously pledged within the dates limited by law, it would not justify another pledge of them after those dates bad expired. It would be difficult to define the legal principle or" public policy by which a compliance with law in one in? stance can be construed to legalize a vio? lation of law in another. If the bonds in question were pledged by the Financial Agent within the times' limited by law, tbe fact would establish nothing more than that the law in auch cuso had been complied with ; it could not possibly have any healing effect upon a subsequent hy Eothecation after the date limited by law ad expired. If it had any effect at all, it would rather be to show that the au? thority conferred upon the Financial Agent had been exercised and exhausted. If it be suggested that these bonds may have been previously pledged within the date limited by law, and that their last hypothecation was necessary to redeem them from the first, and consequently that the two hypothecations were practi? cally only one, it is to be answered, that there is no evidence such was the case, but conclusive evidence to the contrary; for the records of the Comptroller Gen? eral's office and the Treasurer's office show, that the whole amount of money authorized to be raised by the sale and hypothecation of bonds was raised, and more than raised by the sale of other bonds than those now in question. Waiving all discussion of the question whether the several acts authorizing loans authorized the issuing of bonds to the amount of the several sums named in them, or the issuing of as many bonds as would produce those sums by sale or hypothecation, and assuming for the purposes of this statement that they au? thorized the raising of such sums, no matter how many bonds would be re? quired to producevthem, and also assum? ing that the Governor deemed it necessary to raise $1,000,000 to pay the interest on the public debt, although only $434,791.52 was due, and also assuming that the Gov? ernor deeuied it necessary to raise $500,000 to redeem the bills receivable, although only $300,000 of bills receivable were in existence to be redeemed, and also assum? ing that it was deemed necessary to raise $1,000,000 for the relief of the treasury, although no orte was charged with the authority of determining how much was necessary, and the Treasurer and Finan? cial Agent found that not more than $899,000 of bonds w.is necessary to be issued for that purpose, the total amount authorized to be raised by the sale and hypothecation of bunds was $2,500,000. Add to this the face ralue of tbe bonds authorized to be issued to the Laud Com missioner, but actually issued by the Treasurer as for the market and sent di? rectly to the Financial Agent for sale or hypothecation, without authority of law, and the total amount is $3,200,000. . The reports made and forwarded by the Financial Agent to the Comptroller General sho w the proceeds of the sale of bonds to have been as follows: $300,000 bills receivable bonds, at 70c..$ 210,000 00 $700,000 bonds, at 70c. 490,000 00 $2,843,000 bonds. 1,503,783 38 $4,214,500 bonds. 1,238,344 01 $3,442,127 39 Showing that $242,126.39 more money was raised by the sale of bonds than * * * * was authorized to be raised under the most latitudinarian construc? tion of the acts which the Financial Board, the Financial Agent, or the paw? nees could desire. The pledging of the bonds in question, therefore, was absolutely without author? ity and without necessity, and utterly null and void. The right of the State in them was not, and could not be lost by such a proceeding. They did not, and could not thereby become valid claims againit the State, and should not have been consolidated under the act. While these considerations apply to all the bonds in question, there are addi? tional considerations which apply to some of them with particular signifi? cance; ; . 1. By the act to provide for a sinking fund and the management of the same it was provided that all revenues derived from the sales to be made by the commis? sioners, should be applied to the extin? guishment of the public debt, by invest? ing the same in the public securities of the State. Sales were made by the com? missioners, and the revenues derived from them invested in Stale bpjids. By the terms of the act, this was the extinguish? ment of the public debt to the amount of the investment?that in to say, the bonds in which the proceeds of sales were in? vested, in contemplation of law, were paid, retired and cancelled, and were not .subjects of hypothecation by the Finan? cial Agent. . 2. By the act of Congress donating lands to the several Statesand Territories which may provide colleges for the bene? fit of agriculture and the mechanic arts, it was provided that the laud scrip therein directed to be issued to each of the States should be sold by said States, and the proceeds thereof applied to the uses and purposes prescribed in said act, and for no other purpose or purposes whatever; and that all moneys derived from the sale of the lands aforesaid by the States to which the lands were appropriated, and from the sales of land scrip therein pro? vided for, should be invested in stocks of the United States, or of the States, or some other safe stocks, yielding not less than 5 per centum upon the par value of said stocks; and the moneys so invested should constitute a perpetual fund, the capital of which should remain forever undiminished, except so far as therein provided for the expenditure of a sum not exceeding 10 per centum upon-the amount received by any State under the provisions of the said act, for the pur? chase of lands for sites or experimental farms whenever authorized by the respec? tive Legislatures of said States. By the act of the General Assembly accepting the donation of lands for the State of. South Carolina for the endow: meat of agricultural colleges, the State of South Carolina accepted all the pro ( visions of the said act of Congress and of subsequent acts, and consented to the conditions specified in the said acts; the proper officers were authorized to receive, sell and assign the scrip or land warrants issued to this State by virtue of the act I of Congress referred to, and it was pro ? rided that the proceeds of sale should be invested either in bonds of the United .States or in 6 per cent, interest bearing bonds of this State, the principal of which bonds should be forever held sacred for I the purposes directed in the act of Con? gress aforesaid. I The agricultural land scrip issued to this State by virtue of the said act of Congress was obtained by officers author? ized to receive it and sold by them ! through the Financial Agent, and the proceeds of sale were invested in bonds of this State. I According to the express provisions of the said act of Congress, and by the ob ! ligattons of the State of South Carolina : assumed by the act of the General As? sembly accepting its provisions, these I bonds were held by the State, not in ac? tual, ownership,, but in sacred trust, for I the purpose of endowing, supporting and ; maintaining at least one college in this State where the leading object should be, without excluding other scientific and classical studies, and including military i tactics, to teach such branches of learn? ing as ire related to agriculture and the i mechanic arts, and for no other purpose or purposes whatsoever, and were not subjects of hypothecation by the Finan? cial Agent. i But the report of the special joint committee, appointed by the General Assembly to ascertain what bonds of the State were pledged by the Financial Agent of the State as collateral security for State loans, shows that the bonds in which the proceeds of the sales made.by the Commissioners of the Sinking Fund were invested, and which were so as afore? said paid, retired and cancelled, and the bonds in which the proceeds of sale of the agricultural land scrip were invested, and which were so as aforesaid held by the State in sacred trust for the purposes .prescribed in the said act of Congress, were all included in the bonds pledged by the Financial Agent for State loans, between the 21st September, 1871, p*A 10th September, 1872. As to bonds for the payment of inter? est on the public debt, second issue: 836 bonds for $1,000 each.$ 836,000 Attached coupons. 113;595 Detached coupons.?. 99,845 Amount of bonds and coupons..?! ,049,440 The act to authorize a State loan to pay interest on the public debt, approved August 26,1868, authorized the Govern? or of the State to borrow on the credit of the State of South Carolina, on coupon bonds, within twelve months from the passage of the act, a sum not exceeding $1,000,000, or as much thereof as ho might deem necessary, to pay interest on the public debt, &c. An examination of the statement of the American Bank Note Company will show that on the 19th and 21st of September, 1868, they sent to the Governor 1,000 bonds of $1,000 each, amounting to $1,000,000, designated as "loan to pay interest on the public debt." Report of joint special financial inves? tigating committee, page 265. Reports and resolutions 1871-72. An examination of the Treasurer's books shows that in November, 1868, H. H. Kimpton, Financial Agent in New York, is charged with 1,000 bonds of $1,000 each, issued to pay interest on the public debt. On further examination of the state? ment of the American Bank Note Com? pany, (p. 264,) it will be seen that on the 13th August and 19th November, 1869, they sent to the Treasurer 1,000 bonds of $1,000 each, amounting to $1,000,000, designated as "issued under act approved August 26,1868." R. K. Scott, who signed these bonds as Governor, in his testimony before a committee appointed to ascertain what bonds of the State were pledged by the Financial Agent of the State as collateral security for State loans, said: "It was not ir. v intention that more than $1,000,000 of these bonds should be out, but the whole $2,000,000 did go out, and did become s, part of the public' debt; $500,000 of them were returned, and I destroyed them in the presence of' Mr. Parker, D. H. Chamberlain, Dr. j Neagle and others. The $500,000 de Btroyed had been replaced by conversion bonds." Reports and Resolutions 1874-5, page 741. Before the same committee, N. G. Parker, who was* State Treasurer at the time these bonds were issued, in answer to the question, bow many bonds were issued under the act for payment of in j terest on the public debt, said: "At first, $1,000,000; afterwards another $1,000, 000." . His testimony before this commission, together with the evidence developed in the examination of the vouchers for con? version and consolidation bonds, leaves no room for doubt, that under tbe act tu authorize a loan to pay interest on the public debt, $2,000,000 of bonds were is? sued, being $1,000,000 in excess of the amount authorized by the act. In addition to the illegality of the sec? ond issue of these bonds, the testimony indicates that che element of fraud en? tered into the transaction. In his testimony before the committee already referred to, D. H. Chamberlain, Attorney General and member of the Financial Board at the time these bonds were issued, in answer to a question con? cerning over-issues of bonds being dis? cussed by the Financial Board, says : "I remember the question was raised as to issuing the additional bonds for the relief of the treasury, and for the pay? ment of the interest on the public debt, but I think the question was raised be? cause if the numbers of the bonds issued showed a larger amount than $1,000,000, it would injure ;hcir credit in the mar? ket" To deceive the public, therefore, the second issue of bonds were numbered from 1 to 1,000, thus duplicating the issue under the act, the only distinguish? ing feature being that upon the first issue were endowed the words "loan to pay interest on toe public debt," while tbe endorsement upon the second issue was "issued under act August 26, 1868." The evidence of N. G. Parker, accom? panying this report, shows that the fraud was detected by a party in New York becoming possessed of bonds of both issues, having the same number. The fraud being exposed, tbe $500,000 since reported as^destroyed and $50,000, since cancelled and remaining in the treasury, were somehow redeemed and retired, leaving $450,000 of tbe first issue, as well as the whole of the second issue, out I standing. The commission are of opin? ion that the whole of the second issue [ were fraudulently issued and placed upon the market without authority of law, and were null and void ab initio. Nor can there be any pretense that the second issue was in any wise necessary for the purposes of the act. i In his messago to the General Assem? bly, on the 7th July, 1868, Governor Orr I stated the debt due by the State on Oc? tober 1,1867, was :f5,523,576.50, of which J $5,407,215.23 was principal and-$116, 361.33 was interest. The Comptroller General estimated tbe amount of interest due on October 1, 1868, was $434,791.52. As the act was passed Auguut 26,1868, it is to be assumed that its provisions did not extend to the payment of interest be? coming due after October 1, 1868, the last day on which any interest became due for that fiscal year; and. $434,791.52 must, therefore, be considered the amount of interest proposed to be paid by moneys raised under tbe act. ' How much of this interest was paid out of the taxes collected under the act to raise supplies for the year commencing in October, 1808, approved March 23, 1869, it is impossible to determine with certainty, but the reports and records of tbe Treasurer throw enough light on the matter to afford a practical solution of it. 1st. The recapitulation of expenditures at the State treasury for the fiscal year ending October 31, 1869, shows the amount of interest paid at the treasury during that fiscal year on account of in? terest accrued liince .the same was last funded was $529,269.12; but the amount actualy paid at the treasury was $332, 524.62, the treasurer having credited the Financial Agent with $196,714.50 of cou? pons paid at the Financial Agency as so much cash, and then credited himself with the payment of that additional amount of coupons. Of this amount of $332,534.62, as ap? pears from the records of the Treasurer, (224,908.62 Was paid on account of in? terest on stock accrued since the same was last funded to October 31, 1869, ex? clusive of what was paid for coupons on bonds which maturbd during the same period; and it will appear from the statement designated as schedule S, ap? pended hereto and made a part of this report, that $120,925.96 of it was paid on account of interest accrued since the same was last furlded up to October 1, 1868. 2d. No part of this $120,925.96 was paid by the State Treasurer out of the proceeds of the sale of interest on the public debt bonds sent to tbe Financial Agent. By schedule 4, appended hereto, and made a part of this report, it will ap? pear not only that no proceeds of the sale of such bouds had been received from the Financial Agent?none of them having yet eve n been reported as sold?but that (he Financial Agent had not yet fully paid over the proceeds of the sales of other bonds which had been sent to him and which he had reported the sale of. 3d. As no part of mis $120,925.96 was paid out of tbe proceeds of the sale of interest on the publi: debt bouds, and as ihere was no other sufiVient source ex? cept the taxes collected under the act of Marth 26. 1869, from which it could be paid, and as the report of the State Treas? urer shows that the amounts received from the said taxes during the months i.n which the interest was paid were much larger than the amounts paid for interest, it necessarily follows that "he paid the interest out of the taxes collect? ed under the said act. The whole amoum; of interest due on October 1, 1863, being estimated at $434,791.52, and $120,925,96 of it being paid out of taxes, the amount to be paid out of the proceeds of the interest on public debt bonds ivas the remaining cum of $313,865.54. The only sale of bonds which can b; determined to be interested on the public debt bonds was included in the reported sale of $700,000 South Carolina bondii at 70 cents on the dollar; so that the sale of 450,000 of them must have produced $315,000, be? ing $1,134.46 more than the amount of interest.remaining to be paid out of their proceeds. AS TO LAND COMMISSION BONDS. Under act of 1869. 124 bonds for $1,000 each.....$124,000 Attached coupons. 16,710 Detached coupons. 900 $141,610 Under act of 1870. 340 bonds for $1,000 each.$340,000 Attached coupons. 41,550 . Detached coupons. 16,230 $397,780? 397,780 $539,390 Whilst there can be no question of the authority of the- General Assembly to create public debts, or to enact all laws ?ot inconsistent with the Federal and State constitutions, it is equally clear to the minds of the commission, that when an ordinance of the State constitution prescribes, limits or defines the conditions under which legislative authority may be exercised, the Legislature cannot pro? ceed in any other manner than that pre? scribed, limited or defined by the ordi? nance. On March 7,1868, the people of South Carolina in convention met, did ordain as follows: "Section L That it shall be the duty of the General Assembly to provide for the establishment of a board to be known and designated as Commissioners of Pub? lic Lands." "Sec. 2. The Commissioners of Public Lands shall have authority under regula? tions prescribed by law, to purchase at public sale or otherwise, improved and unimproved real estate within this State, &c: Provided, That the aggregateamount of purchases made in any fiscal year shall not exceed the par value of the public stock of this State, created and appropri? ated by the General Assembly for the purpose contemplated in the 4th section of this ordinance for such fiscal year: And provided, alto, That the rate at which any purchase shall be made shall not ex? ceed seventy-five per cent, of the value of the land so purchased, including the improvements in the manner prescribed by law." - Sec. 3. The General Assembly shall have authority to issue to said commis? sioners, public stock of this State to such amount as it may deem expedient, which stock, or the proceeds thereof, the com? missioners shall have authority to apply in payment of all purchases made in ac? cordance with the second section of this ordinance; provided that such public stock shall not be negotiated at a rate less.than the par value thereof. Sec. 4. The commissioners shall have authority under regulations established by the General Assembly to cause lands purchased "to be surveyed and laid off into suitable tracts to be sold to actual settlers" subject to the condition that one-half thereof shall be placed in culti? vation within three years, '&c. Sec. 5. All lands purchased by said commissioners, or the proceeds of the sales thereof, shall be and remain pledged for the redemption of the public stock issued under section 3 of this ordinance, but the General Assembly shall have authority subject to such lien and pledge, ?;o make upon the faith and credit of the State fund, further issues of public stock, but the stock issued as last aforesaid ana the proceeds thereof, shall be used exclu? sively for the redemption of the debt of the State outstanding at the date of such issues and which shall not be funded. Whilst this ordinance was in full force, to wit: On the 27th March, 1869, the General Assembly passed an act entitled "An act to provide for the appointment of a Land Commissioner and to define his powers and duties." ?This act created an Advisor? Board, consisting of the Governor, Comptroller General, State Treasurer, Secretary pf State and Attorney General, who were "authorized and required to appoint a suitable person to be known as the Land Commissioner of the State of South Car? olina, and said commissioner shall in all the duties imposed upon him by the pro? visions of this act, be governed by their instructions and advice." Under the 5th section of this act the Treasurer of the State was "authorized and directed to issue to the Land Com? missioner, bonds of this State, in the sum of $200,000 with the coupons attached, if in the opinion of the Advisory Board, so much be necessary." Under this author? ity and direction the Treasurer issued $200,000 of bonds. On March 1,1870, the General Assem? bly passed an act amending the act last referred to "and for other purposes," in which-the Treasurer of the State was "authorized and directed to issue to .the Land Commissioner, bonds of the State in the sum of $500,000, with coupons attached, if in the opinion of the Advis? ory Board so much be necessary, which bonds shall be negotiated in such form and manner as the Advisory Board by a majority of votes shall determine. Under this act the Treasurer issued bonds to the amount of $500,000. Whilst under the terms of these two acts of the General Assembly, "the Treas? urer of the State is authorized and direct? ed to issue to the Land Commissioner," the bonds provided for under said acts; the fact has been established, that for reasons best known to the Advisory and Financial Boardsand thu Financial Agent, the bonds never went into the possession of the Land Commissioner, as directed in said acts, but were - unlawfully delivered by the Treasurer to the Financial Agent, by whom they were sold or hypothecated at much less than their par value, contra? ry to the manifest purpose of the ordi? nance, and in utter disregard of the terms of the acts aforesaid. (Reports and reso? lutions, 1875-76, testimony of R. K. Scott, page 1171, D. H. Chamberlain, ^page 1217; C. P. Leslie, page 1223.) j It is not unreasonable to conclude that the framers of the ordinance expressed themselves in careful terms, correspond? ing with the importance of the authority 1 to be exercised by the Legislature, and . in order to protect the public interests by ! leaving so little implication. The pro- ! viso "that such public stock shall not be negotiated at a.rate less than the par value thereof," ii the standard by which the ordinance intended the Legislature to measure the exercise of its authority, so that the purposes of the ordinance, as to its essential provisions, might not be frustrated or disappointed. "When the means for the exercise of granted power is given, no other or dif? ferent means can be implied as being more effective or convenient. The rule applies to the exercise of power by all departments and all officers. What the law requires to be done for the protection of the taxpayer is mandatory and not directory merely. Constitution!? do not unually undertake to prescribe mere rules of proceeding, except when such rules are looked upon as essential to the thing to be done, and they must then be regarded in the light of limitations on the power to be exercised." By comparing the arrangements of de? tails as well as the identity of language employed both in the ordinance and the acts, it is conclusive to the minds of the commission that the provisions of each aie connected in subject matter, the acts depending upon the ordinance for au? thority, and both so operating together for the same purpose that the act could not have been passed without direct re? ference to the ordinance. LEGAL ADVERTISING.?Vit are compelled to require cash payment* for advertising ordered by Executors, Administrators and other fiduciaries. and herewith append the ratei for the ordinary notices, which will only be inserted when the money comes with the order: >i Citations, two insertions, ?'?-.; $3.00 Estate Notices, three insertions, ? - 2.00 Final Settlements, fire insertions - ?? 3.00 TO CORRESPONDENTS.?In order to receive attention, communications must be accompanied by the true name and address of the writer. Re? jected manuscripts will not be returned, unless the necessary stamps are furnished to repay the postage thereon. 1ST We are not responsible for the views and opinions of our correspondents. AH communications should be addressed to "Ed? itors Intelligencer," and all checks, drafts, money orders, Ac, should be mode payable to the order of E. B. MURRAY A CO., Anderson, 8. C. "As one part of a statute is property called in to help the construction of an? other part, ana is fitly so expounded as to support and give effect if possible to the whole, so is the comparison of one law with other laws made by the same Legislature or upon the same subject, or relating expressly to .the same point en? joined for the same reason. It is to be inferred that a code of statutes relating to one subject was governed by one spirit and policy, and was intended to be con? strued harmonious in its several parts and provisions. It is, therefore, an es? tablished rule of law that all acts pari materia are to be taken together as if they were one law, and they are directed to be compared in the construction of statutes, because they are considered as framed upon one system and having one object in view." The ordinance, in the judgment of the com? mission, being of paramount authority, they regard the issue of bunds under the acts afore? said, known as Land Commission bonds, as having been issued contrary to the provisions of the ordinance as well as the acts aforesaid, and, therefore, without authority of law. AS TO BILLS RECEIVABLE BONOS. The act to authome a loan to redeem the obligations known as the bills receivable of the State of South Carolina authorized the Governor to borrow on coupon bonds, a loan not exceeding $500,000 or as much thereof as he might deem necessary, to redeem the bills receivable. The whole araonnTdf hills receivable issued and outstanding was $300,000. As the bonds issued under the act wereall sold at 70 cents on the dollar, it required the issue of not exceeding $429,000 of them to produce the amount necessary to redeem the bills re? ceivable. The actual issue of bonds was $500,000, being $71,000 more than was ne? cessary ; and the commission are of opinion that these $71,000 of bonds was issued in ex? cess of what the act authorized. Inasmuch, however, as the commission are nnable to designate the numbers of the bonds issued in excess, they have placed the whole amount of bills receivable bonds which were in all other respects fundable among the valid vouchers. A3 TO REGISTRATION. The commission deem it their duty to call the special attention of your hunorable bod? ies to the fact, ascertained at the outset of this investigation, that jhe following bonds, to wit: For redemption bills receivable, $500,000; payment interest public debt, $2,000,000; relief of treasury, $1,000,000: Land Commission ad 1869, $200,000; Land Commission act 1870, $500,000, were put upon the market in disregard' of section 14, article 9, of the constitution, which requires that "a correct registry of all such bonds shall be kept by the Treasurer in numerical order, so as always to exhibit the number and amount unpaid, and to whom severally made payable." I; That a registry of these bonds was never made is shown by the evidence of N. G. Parker, former Treasurer, and"" J. L. Little, his chief clerk, which evidence is append? ed-hereto and made a part of this report. What effect this want of compliance with a plain constitutional requirement would have upon the validity of the bonds referred to, the commission submit for decision to your honorable bodies.. It would seem,1 swever. that the framerscf the constitution required this registration to be kept, not only as a record by the examination of which tbe outstanding obligations of the State could - be, readily ascertained, but also that those dealing with the agents of the State or in State securities might, by reference to the record, protect themselves from the impo? sition of bonds improperly put upon the market. This view seems to be supported by the decision of the Supreme Court in the case of Morton, Bliss & Co. vs. Comptroller General. The effect of a departure from die requirements of iiection 14, article 9, of the constitution, doea not appear to have been Taised; and was not, therefore; decided by the court. In speaking, however, of this section, Associate Justice Willard, who de? livered the opinion of tbe court, said: "This section determines both the evidence that shall entitle the public creditor, and that which shall guide the executive'officers in all duties pertaining to such indebted? ness. The creditor must hold a *bond of a certain character and number, and tbe exec? utive officers must tent the validity of such evidence of debt by the official registry re? quired by the constitution." Morton, Bliss & Co. vs. Comptroller General, 4 Richard? son, New Series, p. 456. In this connection the commission re? spectfully call the attention of your honor? able bodies to an act, entitled An act re? lating to the bonds of the State of South Carolina," approved March 13, 1872!, and known as the "validating act" The pur? pose of this act was to waive certain irreg? ularities, and to put at rest "doubts which had arisen whether s lid issues were in strict conformity to the provisions of the said several acts under which they were respec? tively issued." In the preamble to this act the classes of bonds concerning which doubts had arisen were enumerated ; and among them were all the classes above men? tioned ?s not having been registered in ac? cordance with the constitutional require? ments. The 3d section of this act provides as follows: "That each and all of the bonds named in the said annual report of the Treasurer of this State for the fiscal year ending with October 31,1871, be and the same are here? by, declared to be legal and valid bonds of the State of South Carolina, for the pay? ment of which the faith, credit and funds of the State have. been, and are hereby pledged; Provided, That no binds be included which are not registered in the Treasury at the time of the passage of this act, as provided for by section 14, article 9, of the constitu? tion relative to finance and taxation." By this provision of the validating act, the above mentioned classes of bonds are expressiv excluded from the benefits, if any, there tobe derived from that act. The commission invite the attention of your honorable bodies to the fact, ".hat the following consolidation bonds and certifi? cates of stock, to wit: Bonds Nos. 3529 to 3575 for $1.000 each, $46,000; Nos. 1206 to 1216 for $500 each, S5.500; certificate of stock No. 53, $500; certificate of stock No. 988, 5360; certificate ?f etock No. No. 989, $202.50; certificate af stock No. 990, $495; certificate of etock No. 991, $237.50; certificate of stock No. 992, $30; certificate of stock No. 993, $235; certificate of stock No. 9S-4, $55; certificate of stock No. 995, $75; certificate of stock No. 996, S300 ; certificate of stock No. 997, $135; exchange and transfer certificates of stock No. 883, ?85; exchange and transfer certificate of stock No. 884, S75, exchange and transfer certificate of stock No. 885, $70; exchange and transfer certificate of stock No. ,886, ?$235, were issued by F. L. Cardozo as State Treasurer, the same being signed by D. H. Chamberlain as Governor, and countersign? ed by Thomas C. Dunn as Comptroller General, after the terms of all those officials had expired. As there are a proper number of vouchers remaining in the treasury for the issue of these consolidation bonds and certificates of stock, it would seem that they should be made good to the parties to whom they were issued in all cases where the vouchers had been issued in accordance with law and au? thorized to be consolidated under the act. and the commission therefore recommend such action on the part of your honorable* bodies as will secure that result, u It will be observed that the amount of the several classes of vouchers respectively described as not "issued in accordance with law and aulhorized to be consolidated under ?the act," appears to be much largerthan the amount of them as previously stated in the aggregate. The apparent excess grows opt of the fact that some of the vouchers are included in more than one of the clashes in (Concluded on Fourth Fage.)