Historical Newspapers of South Carolina

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Trying to Explain. Tillman and Bates Make an Explanation of the Bond Transaction. THEY TE.L1I1 ALL ABOUT FUND ING THE DEBT, But Nothing About Where the Commission Went. It Will Hardly Satisfy the People ioho Want and Demand Explicit In? formation Concerning the Commis sons that Rhind Did Not Get. At last Senator Tillman speaks on the bond deal matter. He stated that he would not have anything to say until "some responsible party" made the charges, bat as wasv indi cated in The State's special from Rock Hill last week, he has seen the necessity for giving the people a statement in regard to the matter and here it is : To the public :-1 have been absent from the State during most of the last two weeks, making 6ilver speeches in thewest,and have been ignorant of the furor createdaby the unsigned articles in the New York Times, charging crookedness in the bond matter. I read it, as copied in the State papers just before leaving South Carolina, and immediately decided that the author was my political and personal enemy and a South Carolinian. I did not feel that the auonymous attack was worthy ol notice and so stated to a reporter. On my return I find that A. B Williams is known to be the writer, and this statement of it? self, will be sufficient to most men as to the motive of the attack and truth of the charges. I learned further that Dr. Bates had written a card ex? plaining the receipt by bim of a com mission amounting to about $2,000 for extra and unofficial work, but ap? parently shunning or ignoring the graver charges directly or indirectly made of a collusion with Rhind and and the commission. On arriving at Columbia, I found Dr. Bates had pre? pared a full statement of the whole bond transaction, but under bad ad? vice had confined his statement as published to an explanation of the commission paid him. which was not at all satistactory even to his friends, and thereby had invited rather than disarmed criticism. He . submitted this statement to me and now gives it to the press at my suggestion. I have read it carefully and can cor? roborate as true everything it con? tains as to the facts of the case. But for the fact that there are others involved in the so-called "bond scan? dal, I would adhere to my orig? inal purpose of treating it with silent contempt, because Gen.. Butler made practically the same charges at Wal terboro in 1894, and I made a full and complete answer to them then I recognize, however, that the shafts of slander and malice which have fallen harmless from me may wound others who are not less worthy of public confidence I take occa sion, therefore, to repeat what I said v at Wa?terboro two years ago. I have never received one dollar of Rhind's commission, and never made any j agreement, directly or indirectly with Rhind or any one else that would " give me compensation for making the oonlract upon the terms agreed upon. I worked in the State's interest and for her benefit wholly, and it is sim? ply damuable that the papers of the State should give currency and quasi endorsement to these repeated slan? ders and lies I take occasion to say that the work done by Dr. Bates was eiii?rely outside of and apart from his official duties, and that every criticism of him for it.in my judgment,is unreason abie and unjust Ile consulted me as to the propriety of doing it, and I did not then and do not now see why he should have refused to do the work that in no wise conflicted with his official duties, and which did not cost the State one cent. On two oe casions Dr Bates, in the plenitude of caution for what he supposed to be for the best interests of the State, refused to sign the modifications of the coutract which the exigencies of the situation demanded, and I over? ruled him because I saw it was our last and only chance The agreement to do the work for the syndicate was made two weeks after the last compact was signed, j and he signed that under'my persua? sion I was associated with him four years on the terms of the closest intimacy. If he is not aa honest, honorable, conscientious and high toned gentleman, then we have none in South Carolina. B R Tillman. I DR BATES' ADDRESS. The following is Dr. Bates' state- . ment, referred to by Senator Till- ; man : To the People of South Carolina : On June ll, I gave to the press a ; brief statement explaining the pay? ment to me by the bond syndicate of $2,031.25 for extra services to them during the refunding of the State debt. That document, instead of bei?g criticised in the light of past events, known of all men. and easily accessible in public documents and newspapers, has been made the ex- j cuse for the most malignant and out- j I rageous insinuations and accusation Most oi them have emanated fr< j papers opposed to the Reform moi I ment and could be attributed to m I ice and a desire to secure poiiti< ! advantage- But as many Refoi papers have been equally urneasc ! able and se* e in their comments, i have decideu to give a full history ! the refunding matter so that fi ! minded men may judge for thei selves how unjust and cruel all t insinuations and accusations til have been made against me ai j against Governor Tillman, wi j whom I was associated in the tran action The orignal refunding act w passed in 1889 I came into offi December. 1S90, arid at the close the fiscal year, October 31, 1891, reported officially as follows : "I complied with instructio given in the act and had prop notices inserted in newspapers, also had circulars and copies of tl act printed and notices given th they could be had on application I parties desiring information and ha^ sent out a large number of copie Until July, 1892. the office is r stricted to the system of exchangn: the new 4 per cent, for the brow consols. But little progress In been made in exchanging. On! $29,396.TO of new 4 per cents ha? been exchanged for au equal amoui of brown consols. Under the rigi requirement of the act, I am afrai not many exchanges will be affec ed " The legislature amended the act i December, 1891, at my suggestioi and provided for the m ayment of commission for placing the ne bonds if it should be necessan However, we were still restricted t issuing bonds bearing only 4 pc cent, interest and not allowed to se them at less than par. In my annual report of October 31 1892, I stated as follows : "Th holders of the brown consols hav not 6hown their willingness to ei charge them for the new bonds, bu seem to prefer to await their maturi ty before deciding what they will dc Negotiations for placing new bond have not yet been completed.'' I During a visit to Charleston prio to October, 1892, I was told by mor than one prominent bondholder ant financier in that eily, whose names can give, if necessary, that it wa useless for the State to attempt t< refund in bonds bearing less than i per cent, interest. One of thes< gentlemen went so far as to say tha inasmuch as the State had under the consolidation act of 1883 settled with the holders of her bond? at 50 cents on the dollar, she ough not to expect her bondholders to ex change thei r maturing bonds for oll? er than 5 per cent bonds .While in New York prior to Octo ber, 1892, I was assured by a prom inent dealer in South Carolina bond that the State could not float a bond bealing less than 5 per cent inter? est and could not eve; float a 5 pei cent bond unless she made some settlement of the non-fundable bonds listed on the stock exchange, amount? ing to $5,965,000 and other bonds in which there was in\ Mdity. Copies of our refunding act and the best showing of our finances that could be made were presented in person or_ through the mail to such horses as D jxel, Morgan & Co., but without result. We have been criticised for allow? ing one man an exclusive option on the bonds lo be issued. We were led to the adoption of this plan on account of the bad condition the State's credit was in, and we had in mind the experience of Treasurer Bamberg when he undertook to re? fund the deficiency bonds, amount? ing to only $400,000. Some of the newspapers noticed his advertisement, savagely attacked the credit of the State, both in Europe and in the United States, and ridiculed the invi? tation for bids for South Carolina bonds. Other parties wrote him in? sulting letters We knew aleo there were dissatisfied holders of invalid State bonds and other professed creditors of the State, who were aware that the State was approach? ing a financial crisis. They knew that almost her entire bonded debt and on which she was paying 6 per cent, interest was about to mature and practically the State had not a dollar with which to pay it, and they were planning to take advantage of the situation to force the State to settle their claims. We were in? formed that other States and com? munities floated bonds advantageous? ly through brokers or promoters. Therefore, on February 20, 1892, the governor and myself, in the exercise of the discretion allowed us in the refunding act, made an agreement with Mr. J G. Zachery of New York, granting him an exclusive op? tion for 90 days on the entire issue of new 4 per cent, bonds. This gen? tleman presented his testimonials from prominet business and represen- i tative men in New York and else? where. He, however, failed to se? cure subscriptions foi the bonds or contract for the exchange and drop- j ped the matter at the expiration of j that lime. On the 16:h ct' May, 1892, ao option j was granted to Mr. Ooldea Rhino, of Augusta, Ga., who prcsenred letters I from prominent fioanciers in New York ! with whom he had business connections 1 and prominent business meo of our ; own State and Georgia Our agree- 1 - O j ment authorized bin.? to pay to parties j taking tbs entire issue of 4 per ce bonds at par, a commission of ?12 OOO. The statement in the New Y< Times that he was offered 5 per ce on ?6,000,000 of 4 per cent bonds months prior to time of issue is i true. After some months spent New York, Mr. Rhiod failed in efforts and reported that he did i think it possible for the State to float bond at par bearing less that 4? ? ceot. interest., and that South Caroli 6 per cent, bonds were then selling 95 cents on the dollar. On September 5, 1892, Col. Mi Brown, of Barnwell. S C , was grai ed an option. The commission allow in this agreement was 3 per cent. ] also failed in his efforts and report that a 4\ per cent, gold bond could floated at par During the month of October. 18? Governor Tillman and myself visit New \'ork and remained there son weeks trying to induce capitalists take the issue of bonds then prorid for. ' We did not succeed io our effon Governor Tillman, in an interne published in the newspapers soon af; his return from this visit from N< York, said : "There is a strenuous effort bei; made by the holders of the old fraud lent bonds to force the State in sor sort of recognition of their claim ai some of our own people in Chariest* are io conspiracy with New York sbar who fattened upon the misfortunes our people in the reconstruction pei io Owing to the virtual cessation cf bus ness, produced by the Columbus eel bration and the feeling of unrest ai distrust which exists because of the u certainty as to which party will 1 victorious in the coming election, ? found capitalists unwilling to make ac offer which we could accept." The South Carolina bond holders ex dently and most naturally preferred l have their 6 per cent, bonds continuel and at the session cf the legislature i 1892, an apparent effort was made b Col J C. F?askell to have them cor. tinued four years, and this bad a ver demoralizing and depressing <?ffe< upon the negotiations then pending i New York. After our return from New York, urged Governor Tillman not to abac don all effort even for a time, If put lie effort on our part was to'be abandon ed I advised that private effort throug a broker be continued as we had n time to lose and the danger of failur was great oo accouot of the serious dif Acuities in our way. Mr. Rhiod wa confident, if bis plains were approve' aod be was allowed ao opportunity that he could succeed io arraogiog wit] asyudicate to take our bo?ds aod enabl us to float the debt I advised that th opportunity be given him and the re suit was most fortunate tor the State, lt my aoDaal report of October 31, 1893 a statement of the refunding matter i? given and all the details of the worl set forth. The agreemeot with Mr. Rhiod wa! suggested by him and made early ir November, 1892. It authorized bia to open negotiations on either basie stated below : "First, to sell the present issue oi bonds at 95-that is, at par, less a commission of 5 per cent. Second, to sell an issue of 20 40 year bond?, bearing interest at the rate of 4} per cent, to net the S taft par. It being understood as a part of this agreement that either transaction wi i 1 necessarily be submitted to the leg is la lature of the State for ratification, aud aud we pledge ourselves to recommend to the legislature the passage of an act ratifying such transaction." During the month of November, Mr. Rhiod submitted a proposition from Mr. French, then president of the Manhattan Trust company, OD the part of said company and its associates. It was upon this proposition as a basis that the refundiog act of 1892 was intro? duced into the legislature. This act was the same a6 that of 1889 and 1891, except that it provided for 4J per cent, bonds iostead of 4 per cent, bonds, aod they were to be 20 40-year bonds in? stead of 40-year bonds and provision was made io the act for a cumulative siokiog fund to be derived from the royalty oo phosphate. The proposi tioo of Mr. Freoch was to take 20 40 year 4? per ceot. hoods at par aod place to the credit of the State io the Manhattan Trust company, ?250,000 by December 1, 1892; ?5,000,000 by Jauuary 1, 1893, and any balance that might be Deeded by February 1, 1893. Uofortuoately, Mr. Freoch SOOD after- j wards became ill aod died. During his ? brief illness some of his strongest asso- ! cutes withdrew, haviog become alarm ed at the universal shipments of gold from the Uoited States to Europe, the first decided indication of the approach? ing terrible panic of 1893. Mr. Rhiod, however, cootioued his efforts aod assissted by one or more of ! the associates of Mr. Freoch succeeded in organizing a syndicate of New York, Baltimore, Richmond, Charleston aod other capitalists, of which the Baltimore Trust and Guarantee compaoy, Robert j G. Davidsoo, presideot, was the ageot. Thia syndicate after much correspood- J ecce aod delay, entered into a written j contract with the State on the 19th day cf January, 1893, to take ?2,000,000 of the bonds at par flit, and were al? lowed an option ca the remaining ?3, 250,000 until April 1st, 1S93. at the same price. On thc 17th of March, 1893, toe syndicate ezercised the op- ? tion and an amended contract was made binding them to Juke ?he entire issue. The bend? were to bear interest from January 1st, 1893. Copies of the original and the amend? ed contracts are on file, also copies of j; all the asreemews, with lhe brokers ? and the extensive correspondence ? ail easily accesible. The act of li under which the refunding took pl appropiiated the money in the sink fund for the payment of a commisri Not a dollar of this money was us and strictly speaking, no com m isa was paid by the State to aoybo The interest fr:m January, to Ju 1893, as required by the contract, \ paid (every cent of it) to the Ba more Trust and Guarantee company, to the subscribers of the eyndic upon their order. How the syndic settled wi.th Mr. Rhind was bis ? their own affair and one with wh the State had uothing to do. 1 State would gladly have saved this months' interest, but her danger' i extremity were such that she had pay it and under the circumstances i was glad to pay it io order 'o be p pared to meet her debt maturing July, 1893. She had not the mot io her treasury and was obliged to e bonds in advance in order to raise Had an offer to take gold bouds be accepted, I believe she would hi been forced to pay interest from Jar ary to July, 1893, jost the same. The act of the legislature author?2 the payment of this interest,the contr: was sustained by the supreme cou The bill was introduced and passed the financial coaia?ttee after all the c tails of the contract bad been submitt to him aud approved. The only bo fide offer made by any responsible ba or [arty, beforo the contract, with t Rhind syndicate was sighed, was o by Mr. E. H. Pringle of the Bank Charleston, to take $250,000 of t bonds at 97 per cent. This was mu less than we sold the whole lot at. Any assertion that members of t syndicate offered to take the bonds ? 3-4 of one per cent, is false, and sot of the Charleston holders of old bon antagonized the State throughoi Gov. Tillman was convinced th they schemed in every way possible keep us from refunding the debt at a and desired io got us in. their power ai then dictate hard terms. Tbs edito; i co!u'D9 of The News and Courier at ti time, were cited by him to sustaiu t truth of this conviction. There w doubtless deep chargrin when tbi found we succeeded in refunding tl debt without them. As for Mr. Rhiud's commission, was a matter that concerned him ar the syndicate. Every banker and ca italist in the State knows that the Sta debt was refunded to great advantaj and as economically as could be expec ed under circumstances in the fa? of such strong opposition at home ac abroad. The charges or insinuations that have shared in the commissions allowe by the State are false and without foui datioo. After earnest solictation to c the work, aud when I saw that would not conflict with my duties-1 State treasurer, I did render the synd cate much responsible aud valuable se vice, for which I accepted compensatior not a dollar of which came out of th State. These services were some extr official and others unofficial, aud wer services ? could not have been especte or required to render as ?State treasure) They facilitated and expedited th work of refunding, and in renderin them I protected the interests of th State. The matter was not one tob published in an official report but wa known and approved of by persona friends and acquintances of both fae tiens, who are as honorable as an; critics in the land. I have in no wa; violated my official trust; on thc ceo trary the compensation received by m was for services rendered the syndicat upou matters growiog out of an unprece? dented fiuancial panic then raging ove the entire country and threatening ti defeat the contract into which we hat entered. Matters arising after the contract bac been made and which, but for tbe ser vices I rendered, would have imperil led the settlcnent and disarmed tb? State from meeting its maturing obliga tion. The records and vouchers in this re? funding matter have been carefully ex? amined by two committees-one of the legislature and Che other of the sinking fund commissioners. - Transactions covering the recording, cancelling and filing away nearly five and a half mil? lion of Brown CODSOIS and the hand? ling of nearly $3,000,300 of cash in? volved io the refunding and all done during the panic of 1893 were carefully examined and every voucher, entry and figure were found correct. The credit of the State has been re? habilitated. She bas out to-day bonds bearing only 4 1-2 interest and they sell readily at ?109.50 to gi 10. In 1892 her bonds bore six percent, inter? est aod sold as low as 95, and some of ber most influential aud wealthy capi? talists were busy undermining her credit. The successful refunding of the State debt during one of the worst pan: this country has ever ?nown, entitle* Gov. Tillman and myself, the persons sharged with this responsible, diffi? cult and delicate daty to some honor and credit, and I confidently be [eivu these will be fully accorded us by an exacting but just people, though there be those who would not only rob us of that credit, but would rob us of character, as well if they had the power. in faithful service for the State I have done what ? could. W. T. O. Bates. _ . ?il Ti -oo. - Jill ? - Ayer's Pi?.s promote the natural motion of ?he bowels, without winch then' can he r.o regular operations. For the cure of bilious? ness, ? r. d i ses t io ri, sick headache, constipation, ??iisndicc, and liver compUint, these pills have noequal. Every dose effective. / Mr- Whitney's Statement. NEW YORK, June 22.-Wm C. Whitney was seen to day before he left for Albany to attend a conference of Democratic leaders. Ile said : "The report that I said that the east? ern Democrats were discouraged by the overwhelming majority of silver men that will be delegates in the national convention is nutt ne We are by no means discouraged and propose to put forth our most persu? asive powers to induce the national convention to adopt a gold p'ank We are willing to admit that the silver men will have almost a two thirds majority in the convention We rely, however, on our arguments and hopo for a victory. We are inclined to believe that we may in? duce the silver men to recognize the importance of having a gold plank in the platform Despite the reports that we are discouraged, we are more strongly than ever convinced that we have a fighting chance Gold men in tile east are just getting keyed up ou the subject and every day more interest is expressed in the situation by men of importance. "The gold sentiment is growing stronger "I cannot say what wiil be done at Albany to-day, bat in ali probality the gold plank to be adopted at Saratoga will be formulated " The Albany conference of which Mr. Whitney spoke will be held at the apartments of Senator Hill. ' - MU m i II?? SAVANNAH, GA , June 22.-The Georgia Cir and Manufacturing com pany, incorporated with a stock of $300,000 has begun the erection of its plant. h<;re. The machinery of the plant was formerly located at Hunting? don Penn , and was recently bought by Savannah esyitalists The company j wili employ 40U to 500 hands. The 8.000 mites or more of railroad i tributary to Savannah will give ?he I company praetieili y all of ifs business j in the way of car bunding. at:d perhaps the tersest amount of thc cir repairing j Some of t!?e railroads have found it j cheaper to have their building and re j pairing work done by ooortraot than to I do it themselves. It is stateoTbat cars can be built here for 25 per cent, less than elsewhere on account, of the great timber blets located near by A wood vulcanizing planr will also be established in connection with the car factory. - - mu- .<??. H"oaw-' Not many business houses tn these United State3 cnn bo*st of fifty years' standing The business of Dr. J C. Ayer & Co., Lowell, MASS , whose incomparable Sarsa? parilla is known and used everywhere, has passed its half-centennial and wa9 never so vigorous s* at present. Official League balls for sale by H. G. Osteeo & Co. Pianos, Orgar.3 and Sewing Machines sold on easy terms, and exchanged for old ones at the Sumter Music House, in Masonic Temple. ? *.* Shortens ki bor. lessens pain, ";" diminishes danger to life of both mother and child and leaves her in condi ! tion more favorable to speedy recovery. "Stronger after thai: before confinement" says ii prominent midwife- Is the best remedy Kuown and worth the price for that alone. Endorsed and recommended by midwives and all ladies who have used it. Beware of substitutes and imitations. Makes Child-Birth Easy, Sent bv Express or mail on receipt of price, $1.00 per bottle. Book -TO MOTHERS" mailed free, containing voluntary testimonials. BRADFIELD REGULATOR CO.. ATLANTA, GA. SOLD BY ALL DRUGGISTS. BUY NONE BUT THE GENUINE. 8,000 Merchants sell Hawkes' Spectacles successfully. Half of them handle other Spectacles without success, Showing the Great Popularity of HAW? KES' GLASSES over all others. These Famous Glasses are fitted to the eye at A. J. China's Drug Store, Sumter. S. C. Dec. ll-o Sewing Machines and Org"r.s cleaned ecd repaired at the Sumter Music House. Something new ?.r?>i origir.nl in tab It ts at H.G. Uitten ? Co.'s Book Store. Tablets with paper do!! covers for 5 c-nts ?S JUST AS COOP FOR ADULTS. WARRANTED. PR8CE50cts. GALATIA, ILLS.? Nov. 16,1353. Paris Medicino Co., St. Louis, Mo. Gentlemen:-We sold last year. COO bottles of GROVE'S TASTELESS CHILL TONIC and have bought three gross already this year. In all oar ex? perience of 14 years, in the drug business, have never sold an article that gave such universal satis? faction ad your Tonic. Yours truly, ABNEY. CARE & CO? SOLD-No Cure. No Pay, by A. J. China J- F.JW. DeL?rmo,' J. S. Hughson & Co. GUARANTEED IN WRITING. Stu? dents complete in KALK the time at HALF the expense- required elsewhere. Ten to thirty placed monthly. Actual Business Derart meat equipped with genuine commercial batik and office fixture/, supeiior to the equipments of any other college in America. Purely practical instruction and daily drill in real bank and effice transaction. Penmanship by the only graduate pc-n-artisi in Georgia. The only Southern College fully abreast with the spirit of progress and teaching Electric Shorthand, the lightning system of the cen? tury. Tbe only college which it is cheaper to attend than to remain idle. Premiums from Four Expositions. Enrollment 700 Der vear. Address at once GEORGIA BUSI? NESS COLLEGE, Macoo Ga. Nov. 6.-o THE PLACE TO GO. F. H. WARREN Manufaturer of all kinds of Harness and Saddlery and Dealer in HORSE BLANKETS, LAP ROBES, TURF GOODS AND GENERAL STABLE SUPPLIES. First Class Work and Satisfaction Guaranteed. SEND FOR PRICES. 223 Meeting Street, Charleston, S, C, Oct. 16-0 Hardware. Cutlery and Guns, '5 TINWARE, POT WAKE, AGRICULTURAL IMPLEMENTS For sale at lowest market prices. MARSHALL, WESCOATCO.' CHARLESTON, S. C. Ocr. 16-x. DR1ALML?M?I, DENTIST. office OVER STORE CF SUMTER DRY GOODS COMPANY, nance on Main Street, Between Dry Goods Co. and Durant & Son OFFICE HOURS : 9 to i.30 ; 2 to 5 o'clock. April 9. 2 J? F. W. DeEORiVIE, PHARMACIST. Prescription Specialist Prescription department in charge of graduate of Philadelphia College of Pharmacy. List of Soda Water Drinks for this Season : 'Our Own" Lemon Phosphate-over 5,000 glasses dispensed last season. Apricot, Fruit Phosphate, Banana, Ojange Phosphate, Blood Orange,w Raspberry Phosphate, Cherry Ripe, Wild Cherry Phosphate, Pineapple, Grape Phosphate, and others. Piatn, Ice Cream Soda, Quince, Milk Sh?ke, Ked Messina Orange, Egg Phosphate, Red Currant. Egg Lemonade, Tuti Frutti, Lemonade, - Peach, Chocolate, Loni JO, j Lime, 1 Vanilla. Ginger, Rasberry, Coca Cola, Wine Cocoa. fl Strawberry, j SOMETHING NEW EVERY FEW ' The Above Flavors in Ices cr Soda ; DAYS DURING THE SEASON Water. Prices same as last season. TROPICAL FRUIT BLEND;