The Horry herald. (Conway, S.C.) 1886-1923, February 22, 1912, Image 3

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A SERIOUS CHARGE LETTER WAS CHANGED IN GOVERNOR BLEASE'S OFFICE. SAYS FINANCIAL AGENT J. P. Matthews in a Letter to Governor HI ease-?Letter as Changed From Original Holster Up Illease's Claim for Credit for Getting State Ijoan?The Letters Given. Correspondence relative to the famous State loan dispute was given r?ut Tnf?sflav niirht. Stato Treasurer It. H. Jennings asks Mr. J. P. Matthews. cashier, three questions: First. "Was it necessary for the Governor to go to New York to effect the loan?" Second. "Was it intended to lend the money at a lower rate than was offered in the bid?" Third. "What was the agreement as to interest?" Replying, Cashier Matthews said: "I will say that it was not necessary for the Governor or any other oflleor to go to New York" for the money offered at 3 per cent, under the bid of Apr!' 17. It was the custom of a State official'to go to New York "for the protection that such olllcer could give to the State." Second. "It was not intended to get or offer cheaper money than was bid for." Third. "There was no agreement as to interest." Here is the whole correspondence: Responsibility Shifted. The following message was sent to the general assembly on February 8 by the governor of South Carolina: ' 11 - ?' 1 ~ 9 "To tllO HOnoraDl?, me raeumcrs Ui the Genera] Assembly of the State of South Carolina: "Gentlemen: In my general mos- j sago to the general assembly for 1012, under the head of 'Finance,* I made certain statements; and I herewith transmit to you statements from Mr. J. Pope Matthews, cashier of the Palmetto National bank of Columbia, and the Hon. George Bell Timmerman, solicitor of the Eleventh judicial circuit, in reply to a statement recently filed with you ,by the ) State treasurer. "The statements of Messrs. Matthews and Timmerman clearly show that the arrangements for borrowing the money, and the signing of the notes by myself, had not been completed until after we reached New York. "I have stated my part of this transaction just as it happened; and, whatever differences may have taken \ place between Mr. Matthews, as agent of the State, and tho State treasurer as to the amounts drawing interest, is of no concern of mine, and if the amounts did not draw interest as was agreed with me they should do, Mr. Matthews' letter clearly shows the reason. T could only make the agreement that it p should draw interest; it was the duty of the State treasurer to see that the agreement was complied with. "Very respectfully, "Cole L. Blease, "Governor. Kxplnnation Asked. The following letter was addressed by It. 11. Jennings, tbe State troas^ urer, to J. Pope Matthews, the flnan cinl agent of the State: "The statements in your letter of the 7th instant to Gov. Please aro not in accord with the statements made in your letter of the 6th to me. I "In order that tho matter in controversy may he perfectly clear, I respectfully submit the following questions for your answer: "Was it. necessary for the governor, or other State officer, to go with you to New York to enable you to furnish the money borrowed at 3 per cent., which you had contracted to do, as evidenced by your bid of April 17, and as shown ,by your receipt of April 20th? "In requesting that a State officer ^should accompany you to New York, was it, or not, your purpose to furnish the money needed at a lower rate, if possible, than you had offered in your bid? "What was the agreement between & yourself and Gov. Please, as to the borrowed money on deposit in your bank drawing interest? "Very truly yours, "R. H. Jennings, "State Treasurer." Record Sot. Straight. The following letter was sent to t? it. Jennings, the Stat.o treasurer, by J. Popo Matthews, financial agent of the State: "Your letter of the 12t.h in reference to the State loan just received, and I regret to say that there wero errors in my letter of the 7th to Gov. Please. "These errors were caused by the | rewriting of the letter after I had read the original draft. I did not read the second copy before signing, as explaned in a letter to the governor, a copy of which I am enclosing herewith. "Replying to your first question, I will say that it was not necessary for the governor or other State officer to go to New York with me to enable H|W|BBP|BBWWPPWf'^W'w|'' V* t v \ * i pqf,i?ijl{yp. , iy, .mp . me to tamtah tbe moae/ borrowed o at 3 per cent., a* we contracted to c do, aa evidenced by my bid of April fl 17, and as shown by the receipt of ti the bank dated April 20. It has been n the custom In the past for some I officer of the State of South Carolina to go to New York with me on h account of the size of the transac- s! tlon, and for the protection that such a officer could give to the State. b "Answering your second question, f< which reads as follows: 'In request- 1< lug that a State officer should accom- a pany you to New York, was It, or h not, your purpose to furnish the money needed at a lower rate if pos- 1< Bible than you had offered in your bid? I will say that it was my in- " tcntion to give the State the very best rate that I could |K>ssihly secure for them, und it was my intention to y lower the rate If possible. My pur- n poso in requesting a State officer to S accompany mo to New York was to u safeguard the interests of both par- fi ties, and to havo presont, when tile ii contract was finally completed, an r< officer of the State as a witness to the transaction in case any question c should arise in the future, and also p that ho might furnish any informa- T tion in regard to the State's affairs if e< dosirod. 11 "In reply to your third question, S which is as follows:' 'What was the 11 agreement between yourself and s; Gov. Bleaso as to the borrowed mon- r< ey on deposit in your bank drawing t< interest?' I beg to state that there a was 110 agreement. tl "Yours vory truly, o (Signed) "J. P. Matthews, h "Cashier." g o Composes the Letters. The following letter was addressed ' on February 9 to Gov. IMease by J. Pope Matthews, financial agent of the State: "At your request I called on you (] In your office day before yesterday, and dictated to your stenographer a statement relating to the loan made fho State last summer through the 4. Palmetto National Bank. This statement as firat written out by your stenographer and submitted to me read as follows: ' " 'Columbia, S. C., Feb. 7th, '12. J" " 'Hon. Cole L. Blease, Governor of , ?i South Carolina, Columbia, S. C. " 'My Dear Sir: Complying with t( your written request, in reference to 4 the loan made through me to the | State of South Carolina, I beg to aay that w? submitted a proposition to tho flnancial board just as we have " done in tho past. I invited, in my '' bid, a representative of the State to j}1 go to New York with me to finally ^ conclude tho matter, his expenses to ( bo paid by the State of South Caro- c lina. The representative to repre- 1 sent the State of South Carolina was delegated to the governor by the j commission. I had, of course, noticed considerable comment in the ( ' papers in refercnco to tho ability of u the Stato to borrow money if you 1,1 were elected, and I thought it noth- |,( ing but proper that tho owner of )l $500,000 worth of paper of South u Carolina should have occasion to dis- u cuss with the governor tho affairs of tho State, in order that they %( might, for themselves, get some idea fo of who they were doing business (' with. " 'Tho paper was accepted readily V( and there was not the slightest hesitatation in tho acceptance of the paj>cr. " 'In reference to your other question, in regard to 20 per cent, being left on deposit with this blank, I bog to say that there was no request as made. sl " 'It would have been our pleas- U} uro to have paid interest on the ,T State's balance, as agreed with you, (,(1 if the treasurer had been in the po- (<> sition to have left any stated amount Wi with us for any definite time. It has <M been tho custom in the past for the State to havo to pay quite a sum of money for pensions some time dur- cc ing tho first of the year, and as a 1? rule something like $250,000 to ar $2 75,000 are paid out for such purpose. Shortly aftor that the interest 2^ on tho State debt is obliged to he 111 met, and this, with tho pensions, T1 practically takes up all of the $500,- th 000. If any unexpended balances in wero left in tho bank wo would bare gladly paid interest thereon; and if xvi we had had any definite understanding as to tho amount and time, as stated to you, we would have gladly 1?' paid interest thereon. We have regular interest-bearing accounts with tho Fftato for which wo pay 4 per ca cent. " 'It has been customary with the banks throughout the country to re- ar quire 20 per cent, of the money bor- 0,1 rowed to bo left on deposit without i-e interest. This, I .believe, was cov- ov ored in your message, along with other matters, which are the true in facts in tho case. m "I believe the above covered all 80 of your written requests. wl " 'Yours very truly, Pi "J. Pope Matthews, mi " 'Cashier Palmetto National Bank pa cf Columbia, S. C. tic liotter Was Rewritten, m; "Yesterday when the letter was en presented to me to bo signed, my at- 1? tention was called to the fact that a8 there had been some repetition in w< tho wording of tho original draft and m< to tho fact that the letter had been w< rewritten. es "I was very busy at the time, and fu on being assured that the letter was re in all respects substantially the wi same, I signed the letter without \ OMjMuiBf I* wMh lb* orlfbul draft xcopt for the flnt iMtfAgrapk I now nd that la copying the let tar earaln rhiutgw had haea wid> which inkea tha mum different from what intended and somewhat misleading. "I did not gat an opportunity to 50k over tha copy of tha letter Igned till lata yaatarday afternoon, s 1 was not only vary busy at tha ank, but had to ba out of my office jr two hours In the afternoon. I earned later, however, that you had lready sent in your massage to tha )gislature. "The following Is a copy of the jtter signed by me: " 'Columbia, S. C? Feb. 7th, '12. 'Hon. Cole L. Blease, Governor of South Carolina, Columbia, S. C. " 'My Dear Sir: Complying with our request, In reference to the loan * * ~ c>n?. r\t mue mruuKu uio iv mo umco vi. outh Carolina, I beg to say that :e submitted a proposition to tho nancia'i board, just as we have done 1 the past. I Invited, In my bid, a epresentatlve of the State to go to lew York with mo to dually conludo the matter, his oxpenses to bo aid by the State of South Carolina, 'ho governor was delegated by tho iniiptroiler general and State treasrer as tho representative of the tate of South Carolina to accompay mo. I had, of courso, noticed conIderable comment in the papors in eferenco to the ability of the State d borrow money If you were eloctod, nd I thought it nothing but proper :iat the owners of $500,000 worth f paper of South Carolina should ave occasion to discuss with the overnor the affairs of tho State, in rder that they might, for themclves. get bomo idea of who they ere doing business with. The transection was not concluded, neitherere the notes signed until after we Pitched New York. Tho paper was cotpted readily and tliere was not allchfoaf hna1?taHr>n in tho ar eptance of tho notes and the bor)wing of the money. " 'In reference to your other queson, in regard to 20 per cent, being ft on deposit with this bank, I beg ) nay that there was not such reuest made, as heretofore. It ha? con customary with the hanks iroiighout the country to require () per cent, of the money borrowed > bo left on deposit, without inter->t; but in this loan, as stated by du, no such request was made. " 'If the treasurer had loft any ated amount with us for any deflito time, it would have been our leasure to have paid interest therein, as agreed with you. It has been le custom in tlio past for the State > have to pay quite a sum of money >r pensions some time during the rst of the year, and as a rule someling like $250,000 to $275,000 are lid out for such purposes. Shortly fter that tho interest on the State abt is obliged to bo met, and this, ith tho pensions, practically takes [> all of the $500,000. If any unex3nded balances had been loft In the ink we would have gladly paid inrest thereon, as stated to you; and e would have paid interest thereon. " 'This, I believe, was covered in )ur message, along with other matrs, which are the true facts in the ise, just as stated in your message. " 'I believe tho above covers all of iur wiltten requests. " 'Yours very truly, " 'J. P. Matthews. 'Cashier Palmetto National Bank of Columbia, S. C.' Matter Not Discussed. "One could judge from my letter i above that you an<l I had made a ecial agreement in reference to unsed balance of the $500,000 bor>\ved in New York, while you, of uirs^, know <iuite well that the matr of paying interest on balances as not referred to at all during our itire trip. "My letter was also made to say at this bank had required 20 per nt. .balance 'heretofore' on State ans, but did not require such a bailee in this particular instance. My atement to you in reference to the ) per cent, balance referred to comereial accounts only of individuals, le word 'heretofore* was added in o copy signed and did not appear the original. "In rending the letters over you ill notice thai other mistakes have >cn made. In other words, In atmpting to revise the wording of the iter in lias heen very confused and 0 meaning completely twisted. "I think It nothing hut proper to 11 your attention to these changes, liieh I did not notice when I signed. "I will add that if I had made an rangement with you to pay interest ' 1 the State's deposits then my let- j r might be taken to imply that we ire the State interest. "You will recall that while discuss- 1 g the letter with you, and while dating in your office, you made " veral suggestions, asking me i tiether, if the State had had sur- i us money and if a positive arrange- I ent had been made, we would have id interest on the surplus money. 1 dictating I referred to this ques- f ^t\. hut the letter as sisrned has < iido me say something very differ- < t from what I intended. In the 1 iter tho expression was used 'as reed with you.' In dictating these I >rds I certainly intended them to I can that I agreed with you* that I < juld have been willing to pay inter- i t in case there had been surplus i nds, and I did not intend them to i fer to any supposed agreement had th you heretofore. "If we had made any snch ar BLACKBURN'S VERSION BLKASB'S STENCHi RAP HUB ON j CHANGES IN LETTKtt. ? Says Cashier Mattliaws Was Shows and He Head the Letter as Used by the Governor. Mr. W. F. Blackburn, stenographer to Governor Rlease. handei to reporter copies of a letter which lie had addressed to Mr. J. P. Matthews, as follows: Mr. J. P. Matthews, Cashier, Palmetto National Bank, Columbia, 8. C. Dear Sir: My attention has been called to a letter from you bearing - A ' ? U l-U 4. . date February ?, in wuu-u juu niaio. "Yesterday when the letter was presented to me to be signed my attention was called to the fact that there had been some repetition In the wording of the original draft and to the fact that the letter had been rewritten. "I was Tory busy at the time, and on boing assured that the letter was In all respects substantially the sane, I signed the letter without oemparing it with the original draft except for the first paragraph. I now find that in copying the letter certain changes had been made which makes the sense differeut from what I intended, and eomewhat misleading." And In which you further state: "In reading the letters over yon will notice that other mistakes hare been made. In other words, In attempting to revise the wording of the letter It has been very much confused and th# meaning completely twisted." In reply thereto I beg leave to state that your letter of February 7 Is Just as you dictated it In the governor's office to me, with the exceptions which were called to your attention, when I presented to you letter No. 2. Letter no 2, a? I designate It here to Identify it, was written out by me; carried to the Palmetto National bank and handed you by me at your desk; I showed you both letters, the one you signed In 1 the governor's office, No. 1, and let ter No. 2, pointing out the changes ' which had been mad? and compared the first paragraph with you. You continued reading letter No. 2, and after you finished reading the entire letter, you signed it and tero up your ! copy of letter No. 1 and threw it in the waste basket under your desk; 1 handed the original letter, No. 2, ' back to me and asked me for a copy ' (hereof, which I gave you. I then ' left the bank. 1 An examination of the original let- 1 ter will show two pencil marks made on the margin thereof, indicating the 1 places where tho changes were made. A further examination of the original ' letter, No. 2, will show that you init- ' ialed page one on the margin, sign- ( ing, "J. P. M.," clearly showing that. I you did read tho letter and in order ' to protect yourself from any chances. ' as a business man, you initialed the ' first page, and on the bottom of tho ( letter (the second page) signed "J. i P. Matthews, Cashier, Palmetto National Bank of Columbia, S. C." Your statement that the letter was twisted by me is absolutely misleading and really amusing. The idea of a man, the cashier of a bank with a capital stock of $250,000, a surplus and profit of $ 100,000 and deposits of $2,500,000 (approximately) sign- i ing a paper Involving a $500,000 r transaction without reading it over, t and without knowing what ho was s signing, simply doing so at the re- c quest of an humble stenographer, t working for a small salary, is absurd. ' if this be true, Mr. Matthews, it is i time for your board of directors and \ the depositors of your bank to begin i to investigate what othor papers or I transactions might have taken place \ with your signature, without consid- ^ eration or without reading. To be c frank, Mr. Matthews, I have no oh- J jectlon to you playing "twlttle dum f and twlttle dee" with the governor \ and the State treasurer, trying to \ hold the friendship and influence of a both for your bank, making one _ statement when you are in the pros- ^ enc? of one and another when you are in the presence of the other; neither do I object to your playing with the State treasurer that little ' game of "tickle me, Robert, tickle . me do; you tickle me, Robert, and I'll tickle you," In order to hold the deposits of the State for your bank- ( ing Institution; but I do seriously j object, my friend, Mr. Matthews, to r you endeavoring to make me appear j that I twisted your letter or that, i made a false statement to you in or- ^ dor to get you to sign a letter when u it is not true; but, in order to save t. o rnngoment it would have, of course, il materially affected (lie rate mode to p [fie State on the $.">00,000 loan. "This statement is made to protect n the bank and to avoid any misoon- fi struc.tfon which might be placed up- t. sn the letter signed by me yo^ter- y lay. i am sure ui.u you wouiu 1101 w have rue make a misstatement. t< "You, of course, as an officer of It he State, can use this letter as you t< hink best. Tint. I will ask that you e 3o me the favor of correcting the p Impression Riven in the coinmnntcn- t: tion of yesterday, fly so doing you c Evlll certainly oblige. > "Yours very truly, f< "J. Pope Matthews, "Cashier." FATAL TRAIN WRECK THREE DEAD AND SIXTY-SEVEN MORE OR LESS HURT NINE CARS JUMP TRACK All But Two Cur* of Train (join# at ( High Speed Thrown From H?ih, < l'ltinginK Down Embankment to ; River's When tojunlizing { < liar Drops From Locomotive. Three persons were killed and sixty-seven injured Thursday, when the Pennsylvania Limited, No. 2, eastbound, jumped the track at Warrior's i Ridge, a short distance west of Huntington, Pa., and nine ot' th# eleven J cars rolled down an embankment to the edge of the Juanita River. The dead are: Harry A. Mass, New York; Mrs. J. E. Tavenner, Washington, D. C.; negro maid * named Hall, New York. On? body is supposed to be under the wreck- ( age. The train, consisting of t? n passenger cars and a postal coach, left Altoona, thirty miles wast of the scene of the accident, more than an 1 hour late. At the time of the disas ter, It is stated, the limited v as go- * lng at the rate of fifty miles an nour. * As the heavy train, which was draw 1 1 by two locomotives, neared Warrior's Ridge, the equalizing bar on the * second locomotive dropped to (lie rails. This bar is over ttie trailer wheel, and holds up the spring of the ' locomotive. The first car passed over the obstruction, but nine succeeding cars ' jumped the tracks and dropped down the embankment to the brink of the ! i river. As the ponderous steel cars, with ' their human freight, dashed down the bank, the telegraph poles were snapped off like pipe stems. Two re- 1 lief trains, one from here and another from Altoona, were rushed to tho scene of the wreck. All of those 1 killed were in the first, dining car. This is said to be the first time on , record that a train composed of allsieel cars has been wrecked on the Pennsylvania. Nothing shor* of a t miracle could have saved frail wood- c en cars from crumbling and going c into the Juanita River. Even the big i 1 steel cars were badly twisted, but 1 there were no splinters or fire to add j o the horror of the wreck. Conductor H. R. Patterson, of Harrisburg, who was in charge of the'j wrecked train, said there were 102 persons on the train. It is said that some of the cars turned completely c over and that three of them are * practically hanging on the bank of the river. The water at this point is I ^ oetween fifteen and twenty feet deep mil had the cars toppled into the riv?r nothing could have saved the occu- c pants. r COME OUT IX THE OI'EV. t , c redely's Supporters Bitterly Assail T r President Tuft. * c A statement issued Wednesday . light at "The Washington oflices of ho Roosevelt national committee" In c he interest of Col. Roosevelt, and N dgned by Medill McCormick, declar-j Ml that President Taft's administra- j! li '1.1 nmhnrlfofl nnnti ?l nnlipv O f I """ V",,J ' " ' * - c 'political suicide and murder. ' Presdent Taft's New York Speech, in ^ vliich he referred to "political neu- J. 'otics," is criticized, as in Secretary tfcVeagh'a speech at Lansing, in vhich he declared that Mr. Roose- ? relt would not and could not he a , andidate for the presidency. Mr. dcCormlck, who recently withdrew .( rom Senator La Follette's campaign, tlas opened oflicos in a down town N Washington ollice building. The J( itatement was issued from there. 'ourself in a transaction, which from rour two letters, one is forced to udge that you have been playing louble. No, Mr. Matthews, you read he h'tter over very caiefully, you ^ nitialed it, in order to show you aution, as all good business men do, nd now, Mr. Matthews, don't play he baby act and try to throw the ilame off on a poor humble stenogapher who has to work hard fojr his n ittle salary and who has nothing to 11 nake his living out of except his a rain and his good name for faithful- r< ess and honesty, while you are en- ' renchod with your many thousands ^ f dollars in a handsome paying pos- ^ Lion, wealthy, influential anl inde- " en dent. 11 I assure you that you have done sl le a grave injustice and I am satis- * ed that when you take the second lt nought your manliness will prompt i' ov to apologize for the insinuations * thich you have made in endeavoring j make the world believe that your n rter was "twisted to bolster claims ^ ^rodit." and that von wore not so areless or so reckless as to sign a a per of this magnitude and Imporfince without having read it very ii arefully. Don't plead guilty, Mr. D Tatthews, to such folly; it looks bad lc :>r such a great financier. tl Yours Very truly, F (Signed) W. P. Blackburn. w REFUSE TO FAY CLAIM 1 If ATS AND MEAN'S COMMITTED AGAINST I*A VMENT, | Aay* tht Contract flutcrwl Into Was Illegal aiikI Without Warrant of I>arr of Slate. On the grounds that the contract entered into between W. W. Dixon and F. M. Bryan and Todd & Benson was illegal, the ways and means committee of the House reported unfavorably Tuesday night on the question of paying $13,550 to the Charleston architects as the hrtt installment on the plaas they drew for remodeling the State house under an agreement, iniered into last September iti tho fcorernor's office, by the firm and tho oihcoinmittee from the committee on State house and grounds. Hero is the report: 'To the Honorable, the House of Representatives of the State of South Carolina. "Gentlemen: We, your committee 9t wars and means, to whom was referred the report of the committeo ->n the State house and grounds published in the jp lrnal of Thursday, Krbruarr 1, 19 12, beg leave to report we hare gone into the matter as thoroughly as possible an 1 submit he following report: "We desire to call your attention to message No. 5, i age 251, of the journal of last year, which called tho attention of the general assembly to the approaches of the ground floor jf the enpitol, in tho following words: " 'I think some arrangement should he made by which carriages :nn he driven to the side entrance, and that the entrance he so arranged that persons can might from their carriages and enter the State houso with convenience, either in bad or e,ood weather. 1 have heard many Grangers remark about having to pass through water closets in order to enter our State cilices, and I hope that you gentlemen will take some steps to relieve the situation.' "We also desire to call your attention to the concurrent resolution in *e?f>onse to said message, which resolution is as follows: 'He it resolved oy the house of representatives, with die senate concurring, that hip exceleney, the governor, is hereby audiorized and requested to appoint a jonimittee or authorize a committee of State house and grounds to employ the services of an architect to nake such estimates of costs and to nake such plans as may be desired o carry out the recommendations of lis excellency, the governor, in regard to the State bouse as suggested n said message.' "Hy construing the resolution in onnection with tho message, we are if the opinion that tho committee on state house and grounds nas far exseeded its authority in entering into he contract with the architect, and hat the plans submitted wore never :onteinplated by, and are useless and inavailable for the purposes of the esolution. "The improvement of tho entrance o the present building and redress >f the publicity of the closers affords to sufficient pretext for the enornous pro.'ect. of enlargement of tho apitol and dome, the plans for which he committee has seen lit to conract. "With the report was submitted a laini by Todd & Ilenson, architects, or the sum of $13,550 for the plans hove referred t:>, which were contacted for by a subcommittee of tho onimittee on State house and rounds, which original claim is hereon/1 ty.o/Io ii nnW nf eport. "Since we have concluded that the on tract was entered into without warrant of law, we recommend that he claim bo disallowed. "We herewith submit legal opin)ns by the attorney general, G. R. Lembert, T. J. Klrkland and W. if. licholson, furnished to the commit?e upon its request, and upon which has based its legal conclusions. "L/Owndes J. Browning, "Chairman." COTTON IMCKINti MACHINES. 0, 'hey May Be Manufactured in tho City of Spartanburg. The Journal says a conference was eld Wednesday morning between lembers of the new industries comjit tee of the chamber of commerce ml C. NT. Goodwin and V. T. Cooley, ^presenting the Southern Cotton larvester Copany, which, it Is nought, will result in tins company uniting in Spartanburg. A machijio ke those which the now company roposes to manufacture was demontratod in the chamber of commerce liis morning and it will do the work, is said. Cotton is extracted from tie bolls by suction. Inductmenta ro being offered and it would not e surprising to see this company lake its permanent home in Sparin burg. They llad a Close Call, After fifteen hours' imprisonment i the Fairmount coal shaft near anvllle, 111., fifty miners were reused hy men who chopped ice from 10 shaft. The men were entombed riday by the breaking off of tho heel of the controlling cage.