The herald and news. (Newberry S.C.) 1903-1937, September 02, 1913, Image 1
' 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.
%