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' The Herald and News ^ YOLOTE LI., 5U3TBEB 70. KEWBEEBY, S. C., TUESDAY, SEPTEMBER 2, 1913. TWICE A WEEK, $1^0 A YEAR. [THE STATE LOAN j IS FINALLY SETTLED $300,000 BO KHO WED FRO31 PAL-j METTO NATIONAL BANK. | Governor Signs Notes Already Bearing Signatures of State Treasur rer and Comptroller General j Columbia, August 31.?Governor j Blease has affixed his name to the j notes aggregating $300,000, which j had been previously signed by CompJ" "ller General .Tones and State Jreasurer Carter, and the State treasury is again in funds with money aplenty to meet the running exIpenses of the State government until taxes come in on the first of the year. woe Qwarripri tn the Pal JL UC 1UCIU '? UC U ?? MA M VV* w ? metro National bank, of this city. 9 There are five notes, each bearing ' 5 per cent interest, from the following dates: One hundred thousand dollars with I interest, from September 1; $50,000 ' "with interest, from September 15; , $50,000 with interest, from October f 1; $50,000 with interest, from Octo^ "ber 15; $50,000 with interest, from ft November 1. Hr Lids were submitted at the meeting of the financial board on Friday, at f "v which only Treasurer Carter aid Comptroller General Jones were pressent. The Palmetto bank made I the best offer from an interest standf point and the bid was awarded to them. The notes, signed by Treasurer Carter and Comptroller General Jones, were carried to Governor Blease by Mr. Matthews, the cashier of the Palmetto bank, and he affixed his signature. fc Governor Blease was given the folgjh lowing receipt for the notes by the Palmetto bank, and the governor also made publicv today the following letV ter he addressed to Cashier Matthews covering the matter: - Receipt for >'otes. , "August 30, 1913. "Received of Cole. L. Blease, Govr?f tho Statp nf South Oaro ? - I lina, the following notes, aggregating ; the sum of three hundred thousand 1 ($300,000) dollars, said notes payable j W to the order of J. P. Matthews, signed f by Cole. L. Blease, governor; S. T. Carter, State treasurer, and A. \V. j i Jones, comptroller general. "Note dated August 29, 1913, due January 10, 1914, for $50,000, with f interest from September 1, 1913, at 5 per cent. "Not dated August 29, 1913, due January 10, 1914, for $50,000 with interest from September 15, 1913, at 5 per cent. "Note dated August 29, 1913, due January 10, 1914, for $50,000, with interest from October 1, 1913, a't 5 \ per cent. "Note dated AuSust 29, 1913, due January 15, 1914, for $50,000 with interest from October 15, 1913, at t L S per cemt. ^ "Note dated August 29, 1913, due January 15, 1914, for $50,000, with W interest from November 1, 1913, at H 5 per cent. "The amount of the notes will be placed to the credit of the State, general account, at once, subject to check. "The above notes so received were H made payable to the order of J. P. Mo+fhawc hv riirAotion of this bank. (iTiawvwu ?? w ? ? "Wilie Jones, ''President Palmetto National Bank. "J. P. Matthews, "'Cashier Palmetto National Bank." Letter to Cashier. Governor Blease wrote as follows to J. P. Matthews, cashier Palm Tsational^bank: "I herewith return to you the following notes, which I received this afternoon: "Note dated August 29, 1913, due January 5, 1914, for $100,000, with interest from September 1, 1913, at 5 per cent. "Note dated August 29. 1913, due January 10, 1914, for $50,000, with interest from September 15, 1913, at | "Note dated August 29, 1913, due I January 10, 1914, for $."0,000, with j interest from October 1, 1913, at 5 per cent. BBL "Note dated August 29, 1913, due Inn January 15, 1914, for $."0,000. with B interest from October 15, 1913, at 5 W per cent. "Note dated, August 29, 1913, due January 15, 1914, for $50,000, with interest from November 1. 1913, at 5 per cent. "All of ;aid notes payable to the order of J P. Matthews, signed by S. T. Carter, State treasurer, and A. I W. Jones, comptroller general. I "I have affixed my signature to i ! these notes. I notice the seal of the j State is not impressed upon the notes, j but that will be done. "These notes contain practically and embodv substantially the same ! offer your bank made to me on the j loth instant, according to my under- ; standing ot its terms, wmca were j pie enough to my mind?"the j notes to bear interest from date the j State needs the money. I did not un- ! derstand your letter of the 9th in- j ! stant, to undertake to vary from the ! ! express terms of the propostion j which I accepted, to wit, that the | money obtained from the notes was | to bear interest as the State need- i ed it, that is, to draw it out, and in my reply to you of the 20th I dis- ; tinctly referred you to the letter in ; my possession containing your proposition. Upon examination now of j the notes sent to me, they are in accord with your proposition and with my understanding with regard to it. The dates for the money to be ad- I vanced are fixed as the money will be needed by the State, as I am advised, on the. 1st of September, the 15th of September, the 1st of October, the 15th of October, and the 1st of November, these notes bearing lut^r- ! est from these dates as the money is i drawn out. The date of maturity has been changed to some dates in January, which, as I understand, will belter suit the condition of the treas ury of the State to pay, rataer than oil the first day of January. The amount of interest, or cost to the State, that will be incurred on these notes, therefore, will be substantially, if not very nearly, identical. "The State has gained nothing by all of this palaver by the other members designated by the Act to borrow money. Jn my opinion their actions and statements in newspapers have not been wise or judicious, as affecting the credit and good name of the state witn regard to ner nnanciai aifairs, and they have, to the extent that they could injure her, committed such injury by not accepting and signing the notes that I had signed and had delivered to them under the offer and acceptance that I had made, which was presented to and left with the sinking fund commission. At the time I accepted your offer the money market was extremely tight, and it was difficult to get any definite promises to loan money at anything but an exorbitant rate of interest, and very few, as you know, cared to take up the loan 10 the State at all. With m me last two weeits ana ai mis time, as you also know, the banks of the State and throughout tlie South have been much relieved by the action of the secretary of the treasury in placing money at a low rate of interest with many of these banks 'to move the crops' and which would relieve the banks from other demands upon them. At the time when it was proposed to borrow from you this money on the notes that I signed, there was no definite step taken by or that could be depended upon as taken by the secretary of the treasury in this matter; so that the situation at the present time for handling the ' - - ? "~ nr'Vi o. f if lUaU is quite uiucicui iwm r, u.v.s. was oil the 15th of August, and prior thereto, when our negotiations were going on. I have stated that I did not propose to have anything further to do with this matter of the loan with the other gentlemen designated by the act, and suggested that it was my opinion that they could them selves now proceed, being a majority, j and act in the matter, that I had done my duty towards the State. You now j inform me that you are unwilling to ! lend the money to the State without my signature to these notes, and that' in your belief the other two gentlemen cannot make a valid note for the /->, >n.y +>iot tVio hontq rvr nthprs UlUilCJ U1 CJLXCA.W UiV w. w? , holding money would not be willing to accept the paper unsigned by me, and you also inform me in writing that 'the loan is awarded to you with the understanding that the notes are to be delivered to you signed by the comptroller general and State treasurer. you to procure the approval j and the signature of the governor and j place the amount to the credit of the ! State.' "I hesitated to sign these notes because I saw no reason why the notes I had already signed could not be used, under the letter of Mr. Matthews of August I-", heretofore alluded to, but in view of what has but recently developed, that there are! certain institutions of the State which are in need of money to pay j for the actual expenses of the opera-1 : tion and conduct of the same, and ! that the officials and employees of the ' 1 / State paid out of State funds are more or less dependent upon :heir monthly warrants for the support of themselves and their families and that it would work great hardship upon them and great injury upon the individuals and State institutions, and in view of the belief, although contrary to mine, that the other two persons designated by .the Act cannot make a valid obligation binding up on the State, but all three must join in making the notes necessary to borrow the money, and that unless 1 do sign these notes they vil1 be unable to obtain the money and the above stated consequences would necessarily follow, and also inasmuch as the notes are practically and substantially the same as contained in the agreement I made with you on the loth instant, I have made up my mind to sign these notes. I am advised that ( 1 should not allow any objections [ that may be personal to myself to stand in the way of performing my duty to the citizens of the State, and I shall not in this instance, although I have good personal reasons, refuse 1 to sign these notes and obtain the | money necessary to pay for the operation of some of the institutions of the State; and to the officials and employees of the State their monthly salaries. "Very Respectfully, "Cole. L. Blease, Governor." j ^Governor." State Treasurer's Statement. "It would appear on the face of the ' bids that the People's bank, of Columbia, offered the lowest rate, which was 4.45 per cent, but as a matter of j fact the Palmetto National bank's bid amounted to $503 88 less interest than the People's bank and was - - I $ 225 28 less than the People s nation- \ al bank rate. The calculations were j made by myself and comptroller I general Jones and two disinterested 1 expert bankers and they found that the interest charged by the various ! banks would be as follows: "National Union bank, of Rock Hill, between $5,500 and $6,000; the j condition stipulated by this bank was 1 such that it had to be estimated; Peo- ; pie's bank, of Columbia, $4,969 17; People's National bank, of Rock" Hill, $4,690 57, and the Palmetto National bank, $4,465 29." This statement was mad 3 by S. T. Portor stntp tr^q ;,*Tvr and secretary of the ^r.ancial 'oru-u, wnen asked as to the loan. In addition to that of the Palmetto I bank the following bids were submitted: Equitable Life Assusance society, j all to be taken at one time at 6 per cent interest with 3 per cent on daily j balances: the People's bank, of Columbia, for the full amount at 4. 45 I i per cent interest; the People's National bank, of Rock Hill, through its . cashier, C. L. Cobb, two propositions - ! ' for the full amount at one time at; 4 1-2 per cent interest, or in two in- j stalments the first half to draw from ; | date and the balance from October and at 4 3-4 per cent interest. MEXICO PREPARING FOR. WAR? Indicated by Orders Affecting Conntry's Military Forces. Mexico City, August 30.?Mexico haa ifrcnori nrriPT'R fr?r ? new diSDOSi- I tion of the troops and for the raili- \ tarizatfon of all able-bodied men in I that portion of the republic under control of the central government. There also will be a general shifting of head-quarters to cities along both coasts and the northern frontier. It is announced that to each of a number of generals have been sent instructions of importance, but their character is not revealed. Recently orders were issued to every governor and jefe poilitico to organize and drill all able-bodied men unaer meir respective junsuiuuuuo for the ostensible purpose of taking part in parades on September 1, national Independence Day. The minister of Interior, Dr. Urrutia, has notified every planter in the republic. This is for the purpose of defending individual properties against bandits, it being pointed out that the revolutionary conditions had so far abated tbnt the only menace to these properties was from bandits. ~ i students isearmsr Arms. The streets of the capitol are daily traversed by marching students armed with rifles, under officers of the regular army. Xot frequently whole companies of boys from 12 to 15 years old are seon and occasionally there passes a company of poorly dre???d youngsters typical or the bootblack a"d newsboy element. i These have been caught by the wave of enthusiasm, but the parading students, while professing willingness, have been left little choice since the government order that students in all government schools shall be subjected to military training. The minister of foreign affairs. Senor Gamboa, is still awaiting a reply from the American envoy, Mr. Lind, to his lost note, but if there have been any further exchanges the fact has not been admitted by either the foreign office or the embassy. Many telegrams and letters congratulating Gen. Huerta on the "patnnrl virilp ?tnnr1'" hp has taken before the "Colossus of the North" continue to be published. Refugees Coming In. Refugees from interior points are beginning to arrive here. The trains tonight proceeded to Vera Cruz with a heavier American passenger list than on any night since the warning from Washington for Americans to leave Mexico. Consul General Shanklin's office was visited oy an unbroken stream of Americans seeking information regarding the warning and some asking for transportation. To all Consul Snanklin has showed his instructions and impressed upon them that Washington's warning "is to leave at once." Hundreds of Americans of the better class are availing themselves of free transportation; and some by no means paupers are cut out of funds, and with no market for anything they may have for sale, are I forced to consider the proposition. Consul (Shanklin has been bombarded with questions as to what is to be done for them while they are waiting for a vessel at Vera Cruz or on their arrival in the United States will furnish transportation to their .QOmes or reiauvea. WON'T HEED WILSON S WARNING. Americans in Mexico City Apparently Unwilling to Leare. Yaw York. Ausust 30.?President Wilson's recommendation that American residents of Mexico leave the country is "resented" by the American colony in Mexico City; few Americans intend to leave; if they do leave, their welfare and financial interests "would be seriously prejudiced;" the president's action "was unwarranted" and due "to simple ignorance of what is actually transpiring in Mexico"?this summarize the contents of various telegrams of protest received in the city yesterday and today from Mexico Liiy. Senor Sebastrn Camacho, President of the Mexican senate and one of Mexico's elder statesmen, telegraphed to James A. Scrymser, president of the Mexican Telegraph company, saying that the American colony is "satisfied and tranquil," and requesting him to call President Wilson's attention to the "tremendous damages which would result from his demands, or which in all loyally, I state there is no reason." The Methodist Episcopal board of foreign missions received advices from Dr. John W. Butler, superinito mission in Mexico City, t V JL. A WO M.AIVW. v__ _ saying that the "Washington instructions for an American exodus" were "muOh resented" by the American colony; that the reasons given for it "aDDear inadequate" and that the missionaries there objected to leaving. In view of this protest, the Methodist board, the Presbyterian board and those of other denominations have declined to advise their missionaries to leave the country, recommending only "that the women and children be recalled to places of safety." The Mexican Telegrap'h company received a telegram from its superintendent in Mexico City, Charles E. Cummins, saying that there was "a j strong reaction from the first scare caused by President Wilson's command to leave Mexico," and that in his opinion a very small proportion of the American colony here will go. Dry Season. "I heard that you were going to v./-v oAfoViio Til 11 nod F!s UC ma 1 1 1UU L'J * v? > ^ j ther. Is it true?" asked one young society woman of another. "Be married to him? I should say not! Why, I wouldn't k^ow what to do with him. He can't ride, play tennis, golf or drive a motor car!" "Well," said the friend, "he can swim beautifully, you know." "You wouldn't want a husband that you h^d to k^ep in an aquarium, would you?"?Tit-Bits. BLEASE WRITES PRISOX BOARD. Has Tower to Remove Them if They Lease Convicts*?Governor Opposes Leasing Prisoners for "Any Purpose Whatsoever." Columbia, August 30.?A strong and significant warning to the penitentiary board not to make any con- , tract leasing the convicts now em- j ployed in the hosiery mill to any par- ; ty or corporation agreeing to establish a leather or woodworking plant within the penitentiary walls was given to tne members of the board ot directors of the State penitentiary today in a letter from Governor Blease. J He told them he would not stand for ! the convicts to be leased to anybody i I for any kind of work, and emphasiz- j ! ed the strength of his opposition by ' referring them to that provision of the State constitution giving the gov- j ernor the right to remove the board i of directors and superintendent of the j penitentiary from office until the next j session of the general assembly. "A ' word to the wise," the governor | significantly says, "should be suffi- ! cient." ! I The penitentiary board decided the other day to call for bids for leasing the convicts at their next meeting on September 10. The hosiery mill con-' tract expires November 1, and some disposition must be made of the 200- j odd convicts now- employed therein, j The following is a copy of the gov-1 ernor's letter I The Governor's Letter. I "-Messrs. A. K. Sanders, John G. Mobley, W. H. Glenn, J. D. Deas and Jasper M. Smith, members of the Board of Directors of the State Penitentiary?.Gentlemen: I did not attend the meeting of your board on, Wednesday, at the penitentiary, but through your chairman and your Mr. Mobley I invited you to call at the executive office. If you had called there T would have given you my reasons for not attending your board meeting at the penitentiary building, wn:ch reasons I am suie any of you would i;ave said were absolutely sufficient, an^ you would hkve endorsed me in net going. However, I do not care to .^ske a personal matter public thrcugh the telephone system, which ,'n recent years has come to be a publicity bureau instead of a source \ i of private communication. I have j received no official commuqication as to your action, but I am basing this letter to you upon the reports of your meeting as contained * in the newspapers. "t wont tn imnlore von, to beg you and to advise you not to make any contract basing ore or any number of the convict under your control, to any individual, private firm or corporation, for any purpose whatsoever,' whether it be to engage in wook work, leather work, brick work, silk wort, or any other kind of work.s ' The people of South Carolina have been appealed to in no uncertain terms in reference to this system of leasing convicts, and after a most bitter '-.rd stubborn fight a large ma* jority o' the white people of this! Stav. hav? reelected a governor who ' fought this system, and they elected j a legislature which abolished this! srstem. Joining with the people, the ' legislature JKip^r.-vpd of this class of work by abolishing your present hosiery- mill system, Which means that they disapproved of the leasing system, at.fi if you now make a con- , tract leasing one or any number of! these convicts to any individual, private firm or corporation, for any purpose, you will do so directly contrary to the expressed will of the white people of South Carolina and of your legislature. >"o Difference, He says. "Why, gentlemen, what is the difference? If you are g^ing to march these poor, unfortunate human be-1 ings out of their cells in the early I morning, and right on into another building, there to be confined all day, and deprived of fresh air, and deprived of sunshine, what makes the ?i?ii * ^ r> r-a ii'nrlHnpr ditierence waeuiei met ait in a hosiery mill, or a harness factory, or where? It is not so much the class of work, but it is the char- ' acter of the imprisonment, and the i absolute depriving these people of the necessary fresh air and pure sunshine to give them that health and strength which God intended they should have, and which you, because j of your temporary power, have no : right to rob them of. i "I hope that there has been no i agreement reached between your j board and Mr. Graham, to the effect j that if he would surrender his con- ! ' tract for the hosiery mill vonr board I i . would give aim a new lease on these prisoners to run some other class of business, because I assure you that such contract will not be allowed to stand, and that by Mr. Graham's submission he has shown no favor to the people of this State, for the courts will uphold the abolition of this nuisance, whether your board or Mr. Graham should see fit to carry on a controversy in regard thereto, or to retire gracefully. "I am in favor of letting each couaty keep its own convicts and working them upon its own highways, and I hope the judges of this State will x adopt that system in passing sentence. As to Dangerous Convicts. "Those prisoners who must come to the penitentiary because of the heinousness of their crimes saould be worked in a reasonable way, at some business within the walls of the penitentiary, absolutely under your control and direction, and most positively not under the control or direction of any individual, private, firm or corporation; and you should provide such proper restrictions and regulations as to give these people that rest which the human body requires and that fresh air and sun- 4 shine which God intended that they should have. Because they are prisoners does not take from them their humanity, nor does it deprive them nf thp snnl that is in the hnriv nf each of them, and when you oppress ore of them you violate one of the greatest commandments ever given by God to man. "Now, gentlemen, I will not be in the State when $bu meet on the 10th of September, under my present ar rangements, and, therefore, I will not be present, but once again I warn you not to lease these people to any private parties. I am not going to make any threat, but I advise you to read the constitution of this State as to your powers and duties, and partis cularly to read Section 8, of Article 12, and, take into consideration, along with this, my well-known position ir reference to inhuman treatment of these people. And, last, but by no means least, carefully consider that I have the power to relieve them from any cruel or unjust punishment which you or anybody else may try to put on them. "1 hope, gentl^mer, that I have made myself plain, and I hope that nothing unpleasant will take place, but a word to the wise?to use an old saying?should surely be sufficient in this case "Very respectfully, i ?"Cole. L. Blease." _ -v,? Governor." AMERICANS CA>'T LEAVE. \ Prevented by Federal Commander, Say Three Who Escaped. Eagle Pass, Texas, August 30.?Invested by 10,000 rebels and defended by 5,000 federals, Torreon, State of Coahuila, Mexico, holds a number or Americans who ,iave been refused permission to leave the beseiged city, according to three American refugees who arrived here today. The trio, tti i. 3 ? /" u : ~^ a A?->_ r raub. ana .uiiiuxi an.u au.drew Odel, escaped after Gen Bravo, the federal commander, had said no American could quit the place. They procured mules and, unharmed, made the journey of 600 miles to Piedras Negras, the rebel headquarters opposite Eagle Pass. The men said the federals in Torreon burn their dead each day and that disease has been largely prevented. A scarcity of food, however, is occasioning much suffering among the poor. Incident to the investment of the city, the refugees said, six Americans, members of the constitutionalist army, were captured recently and summarily executed. The losses in recent engagements, they declare, are not nearly so heavy as reported, totalling not more than 300 or 400 on each side. Death of Mr. Charley Douglas' Mother. Columbia Kecora, sum.' Mrs. W. W. Smith died at her home in Leesville on August 29. The funeral will be held at Saluda Sunday. Mrs. Smith, who was well known in Columbia, was married three times. She is survived by two sons, Charles Douglas, of Newberry and R. W. Davis, of Columbia. She is also survived by several brothers and sisters who are residents Saluda and Newberry counties. The news of her death brought deep sorrow to her many friends who loved her for her noble character and many acts of kindness to others in time of trouble. %