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Monday, j Ten High Class i Angelo Mummo Carnival ( 1 THK 31 ATT EH OF KEITH) Mi THE STATE'S 1SDEI5TEDNES (CONTINUED FROM PAGE 1.) discrimination in favor of the Sout Carolina four and one-half per cen Brown Consols ana against Lime States bonds. The procedings wer brought against the county auditc and the interests of the State wer / handled by the attorney general' office. .Judge Prince overruled ever contention of the plaintiff banks an sustained every contention of the ai 1 T ? n+fnr.liino- tVl torney general. i am <-u decree of Judge Prince to this mes sage, and this decree , conclusivel shows to my mind thai toe objection to the provision recommended by m and the arguments upon which sue objections were based, were not we] taken and are not tenable. So clsarl has this 11 fitter been determined i the decree of Judge Prince, and so con elusive are his findings, that even th + + fnr fho hQ rilr? \vhr? hroiish anui nt *5 ivi - w ? the proceedings must have been con vinced of the correctness of tue judge' conclusions and findings, for 1 am in formed by the attorney general tha no aDDeal or notice of appeal to th supreme court has been filed in tii proceedings. Governor's Contention Sustained. In the early part of January, 1915 and just before ycur last conventioj in annual session, proceedings wer instituted in the supreme court o South Carolina, entitled State, ex re latione W. W. Ray v. Cole. L. Blease governor, et al. These proceeding were brought for the purpose of test ing the legality Of the proposed issu cf the refunding bonds under the Ac . of 1912. Many references were ha and much testimony was taken bot Nvithin the State of South Carolina analso in the cities of Baltimore, Xe"\ York, Boston, Hartford and Worcestei / ?' 11 111111 Neuralgia sufferers Una instant renei in i Sloan's Liniment. It penetrates to the painful part? I soothes and quiets the nerves. No rubbing?merely lay it on. SLOANS LINIMENTI Kills Pain 1 For Neuralgia "I would not be without your Lini-1 ment and praise it to all who suffer I with neuralgia or rheumatism or pain of I any kind."?'Mrs. Henry Bishop, Helena, jgj Missouri. Pain All Gone " I suffered with quite a severe neuralgic headache for 4 months without any relief. I used your Liniment for two or three nights and I haven't suffered with my head since."?Mr- / Swinger, Louisville, Ky. Treatments for Cold and Croup "My little girl, twelve years old, caught a severe cold, and I gave her three drops of Sloan's Liniment on sugar on going to bed, and she got up in the morning with no signs of a cold. A little boy next door had croup and I gave hL * the mother the Liniment. Shegavehim three drops on going to bed, and he got up without the croup in the morning." ? Mr. W. H. Strange, Chicago, IIL At all Dealers. Price 25c., 50c. and 51.00 Sloan's Book on Horses sent free. r Address I DR. EARL S. SLOAN, lac, Boston, Mass. 1 Februay 9 th, TROPICAL AMUSE Shows - Three Big F la's Royal Italian Ban Grounds on 1 In relation to the placing on the marS ket of the South Carolina refunding bonds in particular and the bond mar, | ket generally. Leading bankers and ~ bond dealers in these various cMr ^ gave their testimony in regard to the u placing of these bonds, which has been ^ renorted to the supreme court by the e! special referee in said case. Not a 11 J single banker or bond dealer examined e sustained the objections urged against s the double tax exemption clause which had been urged by me, but, on the C1 ! other hand, my contention was sus""! tained by practically aii these who e j were examined, i Mnwcrc Tnlm \V Hnmpr. Jr.. aild " Robert W. Martin, of the firm of ^ j William A. Reed & Co., of New York k City, testified that "in our opinion, ^ such ail amount cf the bonds described could not be sold at par, so far as our % knowledge of the market in and about Xew York was concerned." Mr. Fred. G. Boyce, Jr., of t.he firm , I of Townsend, Scott & Son, of Balti_ | more, testified that he "expressed the s | opinion to the gentlemen who visited him in .June and now afffrms it, that t in his opinion, it will be very difficult e to Hoat a four per cent, bond under the e act of 1912, for the reason that there is no tax exemption allowed to banKs, corporations, etc.. who have their capital stcck or surplus invested in these '' bonds. If at any time in the future 1 the bonds should be offered g for sale, and his firm is f the successful bidder, they would expect to sell a large part of such '' bonds in South Carolina, but under | s the act of 1912, there being no taxexemption, as above described, the 0 bcuds would not be so desirable to South Carolina purchasers. With a | tax exemption they are inclined to the ; view that the bonds might be floated, | as this would be very likely to give j N I a broader market for them and make % i j.them a more attractive investment j generally." j Mr. Clarence D. Turney, of the firm ; of A. B. Leach & Co., of New York j City, in his testimony, concerning the double tax exemption, said: "Any priilege which would attach to a bond would naturally increase its salability and make it a more attractive investment, not only in Souti Carolina, but in toe New York market, and the more liberal these concessions are, the more it TT'/\nl/1 V\A ' jclLLlclCliVC ll, nuuiu Col. Henry Sehaclite's Opinion In addition- to the testimony of i northern bankers and bond dealers, ; the testimony of Col. Henry & ichte, j president of the Germania Savings I Bank of Charleston, was taken in the form of an affidavit. In this, he sets ! out in a convincing manner, clearly ! and succinctly, the advantages of the tax exemption urged by me, and the . !.reason thereof. He says: "There are about one-half of the State of South Carolina bonds held j and owned in the city of Charleston, ; about one-third of which is held by l the banking interests here. In th# I event that the same tax exemption i should be allowed to the proposed refunding bonds, as are allowed in the present bonds, there would probably be not more than $1,500,000 in bonds taken up by the various banks of the State on account of the liberal tax exemption. I feel sure that they cannot be refunded at par, at the present time, without this exemption, and I | also feel sure that a four per cent, j bond, exempt as above, could be re! fuilded easily at par." ! Attached to Col. Schachte's affidavit is the following letter previously writi ten by him in reference to this same | question. I do not know to wihom this I i letter was written, but set in out here i because of the convincing force of J -c COMMI ,1914. :: :ment company ree Acts - Clean, M< id - Concerts Twice -ower Main its argument in relation to ilie subject in hand: "Charleston, S. C., February 2, 1912. "Dear Sir: Referring to my conversation over the telephone in relation to the bill for refunding the Brown Consol debt of the State, I write as follows: "A very large portion of the Brown Consol debt of the State is held by the banks of this city, and I presume much of it is held by other banks throughout the State. This security has been much sought after by moneyed institutions, especially banks, on account of the provisions of the act under which these securities were issued, because of t'.ie nontaxable features therein contained. Consepuently, this created a demand for the bends which largely increased their market value. In refunding the present debt, the more attractive the securities are made tn investors, tih'e higher nrice at which the State will be able to float them. "On December 24. 1889 (Vol. 20 St., page 350), the act for redemption of that part of the State debt known as the Brown Consol bonds &nd stock was approved. Evidently with a view of making the proposed issue mone attractive, this act was amended by adding a section to be known as section 13, providing: " 'That so much of the capital stock of any bank or banking association or any other moneyed corporation located within this State as is or shall be invested in the bonds or stock, or either of them, the issue of which is provided for in said act, shall be exi empt from all State, county, township, municipal, or other taxation.' This ! act of 1889 was further amended by the j act of December 24, 1891 (Vol. 20 St., page 1058), making sect:"..* 13 read as | follows: " 'That so much of the capital stock ! or funds of any bank, banking asocciai j tion or corporation of any nature or [ kind, located within this State as is, | or shall be invested in the bonds or j stock, or either of them, the issue of which is provided for in said act, shall) be exempt from all State, county town! stiip, municipal, or other taxation.'" 1 observe that the provision of this section 13 have been omitted from the bill now proposed, and I suggest taa; I these same provisions be incorporated ' in the proposed bill, which could be done by adding the same to section 11. Mv reason are as follows: "First. Because in my judgment this provision had much to do wi\h giving the present Brown Consol sec XI. _ 1_ _ A 1.. ~ U j urines me market vtuue \\ i<ju me.y ; have commanded, and if incorporated in the present bill will have the effect of enabling the State to float the pres- j ent securities at a higher price than | ; if left out. i L "Second. Because if this provision I be omitted it may be difficult to float j the bonds at par, whereas if put in ; I ; tliev could be readily floated at par. j "Third. Because this has been illus- i i I trated by the fact that the city of Xew,j Very attempted to float an issue of 4 per cent, bonds, but could not do it, and were obliged to issue a 4y2 per cent. bond. "Fourth. In further illustration the city of Charleston 4 per cent, oonas issued for refunding purpose which contained this provision are sold even now in extremely stringent money market at about six points higher than ; other 4 per cent, bonds which do not j contain such a provision. "Fifth. Unless this provision is inserted the banks which hold near onet'bird of the issue would have no reason to exchange or purchase, particularly since they have no difficulty in lending money readily at 7 per cent., j and in some instances at a higher fig- j SNCING Six Big Di , K. G. BARKOOT oral and Up-to-date Daily on Public Squ. Street, BBB?On??EM I ! ! ! I MHII III 8 c Jl] % I Bought sold r'h ? them o ing. It Sum St I ure. "I cannot believe that any promises I have been made by any one to pur- J chase these bonds at par without this ; prevision, whereas I feel sure that i with this provision they would readily j bring more than par if sold. 1 would ; be very*glad if you could advise me as ; to what further steps, if any, 1 should take in this matter. "Thanking you in advance, and with ; kind ergards, I am, "Yours very truly, "Henry Schacnte, "President." | State of The Bond Market. In this Connection, I beg to call your attention to ,the state of the bond market generally during the past year, and to quote you a short item publihed in a Xew York financial journal on the 7th day of June, 1913, which shows in ' a general way the conditions of the bond market at that time: "Bids aggergating $36,430,000 were received by the State comptroller for the $27,000,000 New York State notes, dated June 10, and due February 2, 1914. Average j interest rate bid was about 4.97 per j cent. Averegae interest rate received by the State from j tho 36 successful bidders was j 1 J / ^ ays and Six <> ?/i n , Manager, rresern - Ferris Wheel and are - Whole Week Newfc AR LOAI Rk. ^J1 71^ flL JUL IV! I ist Receiv< cheap and \ ght. Call an wer before pu ?s a pleasure t them. f I mer-1 ock C * 4.86 per cent. There were oO bidders in all. This was the first time New York State ever sold ajort-term notes. Authoritv to do so was embodied in a bill passed at the last legisla* aire granting ihe comptroller permission to sell short-t^rm securities with interest not exceeding "? per cent, in anticipate n of sale of long-term bonds. Kate of interest on future issues cf State bonds was also increased by the legislature from 4 per cent, to 4*/2 per cent., and it is the intention ? '* ' ' A- 11 U ~ .wl ? of tlie Scate autnoriues iu ien uuuus at that rate early next year to take up these .$27,000,000 notes.'' In the foregoing, I have, to my mind, conclusively shown that tue objections urged against my recommendation as to the tax exemption cannot be sustained; I have shown from the testimony quoted that it is. not only to the best interest of the State and to the advantage of the sale of the bonds, but that owing to the present condition of the money market, the bonds cannot be sold at par; the finances of the State would be sacrificed and the interests and credit of the State would suffer untold injury, under the present ( CONTINUED ON PAGE 8). Big Nights I Merry-Go-Round fl of Feb. 9th, 1914 J IfPlW. P. 1 1 :: I sd j I will be I d look I ircnas- m o show m I Vise & f :o. # I Wood's Superior J C! ^ Jl f ^i OCCU V^dlS ] are choice, recleaned, heavy seed grain. We offer all the best and most productive kinds for spring seeding; Burt or 90-Day, Texas Red Rust Proof, jfl Swedish Select, V Bancroft, Appier, etc. Write for prices and samples. 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