The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-08-15
THE TRIANGULAR FIGHT.
GOVERNOR SCOTTS REPLY TO SEC
RETIRY CARDOZO.
The Whole Ring FIoundertng In the
Mire-A Clear Case or Pots and Kettles.

The following reply of Governor Scott II
the recent charges Of Secretary Of State Car
dozo is published in yesterdays Columbi
Phoenix:
STATE OF SOUTH CAROLINA,
EXECUTIVE DEPARTMENT,
COLUMBIA, August, 1872.
Hon. f. L. Cardozo, Secretary of State:
SIR notice in the Phoenix, of the 9th in
slant, your letter to Messrs. Melton and Cor
bin, yocr attorneys, relating TO your RESPONSE
bility In the sealing OF State bonds.
might, with great propriety, pass this com
muncatiOn by unnoliced, but from the fac
that 1t bears upon Its face the evil splri
which prompted its publication, and which
has led you to narrate several personal con
versations you held with the treasurer ant
the attorney.general, In which you take spe
cial pains TO associate the Governor with whal
they may have said to you in relation 10 the
bonds, showing thereby the animus thai
prompts you to make me party to wha1
other State officers may, from time 10 time
have said to you.
No one connected with the State Govern
mont knows better than yourself how con-
stantly have resisted the very letter and In
tent OF the law Itself to borrow 81 50O,OO0 "a
money, under several acts known as an ''act
to redeem the bills eceivable-s50O,G00 al
ssact to pay the interest on the public debt
81 OOO 000;" an 'act for the relief OF the Treas
ury-Sl, ,O0O, ,O0O" These acts seVerally pro-
videG that that amount of money should be
borrowed on coupon bonds, and yet for more
than one year have persisted In constituting
the acts that there should be only that amount
of bonds Issued, viz: 81, 500, 600 in the aggre.
gate. These bonds were prepared and sign
ed, as provided for In the acts, by the Cover
nor, countersigned by the treasurer, and
sealed by the secretary of State. But, as may
-. q a fvnn u
ity to borrow 81, 800, 900 In money on 81, 500, !
900 of State bonds, or even to realize
that amount by the sale of the same. Hence
IL became necessary to Issue an additional
amount of bonds, which was done with The
full knowledge and approval OF the secretary
of State, who showed his alacrity In his con-
currence by thenceforLh. In every instance,
Sealing the bonds before the Governor had
ever signed them. Indeed, 80 ready were you
70 comply with the request of those who diff
tered with me In the amount OF bonds 10 De
issued. that there was no time up to Novem-
Der, 1871, In which there was not, at least,
$1,000, ,0G0 of bonds In the ueasurer's hands,
without any other evidence OF Their having
been executed, save the seal OF the State nav
ing been placed thereon; and to-day there are
$5O0,00 OF bonds, with the seal the Stale
placed upon them, in the hands of the Amerl-
can Bank Note Company. OF New York, which
were returned 10 them last November, to be
cancelled by my special demand.
It is unnecessary to detail the provisions oil
the law authorizing the issue of the sterling
loan, as any one can examine it. The com.
missioners who were charged with the duty OF
placing that loan on the mark consisting OF
the Governor, secretary OF State, attorney
general, treasurer and mptroer.general-
held but one meeting, and that was IN the
Office of the secretary of State; soon after the
Taxpayers Convention in May, 1871, when the
of4 tpoo fp1 Qnn
the secretary of State secretary Of the board.
At that meeting, melton was made by me to
indefinitely postpone any action as to Lhe ne
gotiation Of these oonds, and from that time till
the present moment the question has never
been brought before the board either directly
or indirectly. Nor has there ever been any
intention, to the best OF my knowle
edge and belief, on the part of any, Of
the members of that board, TO negoitste
any portion Of the sterling loan. The
only evidence to the contrary Of this assertion
Is the fact that during the summer OF 1871,
$500, ,C;c of these bonds were sent from New
York u the secretary OF State, Gas was IN
present State auditor, who took them,to his
own home, at night, and caused the seal OF
State to be- placed upon them, and then imme-
diauely returned them to New York. This ac-
ton appeared the more suspicious to me when
1t came to my knowledge, from the 1act taat
my name was not upon the bonds; and yet,
with an industry that was unaccountable, you
nlaced them beyond nv control, knowing, as
assume you did, that had proposed TO the
American Bank Note Company to have my
name printed upon this issue, If 1t had ever
been determined to negotiate the loan, thereby
saving myself the unnecessary labor Of sign
ing my name twelve thousand times.
Now, sir, you state that you had suspicious
that everything was not right regarding the
s1f Main
to the public what secret motive impelled you
to place the seal of the State surreptitiousiy
upon So. 500, 600 of bonds, which you claim was
intended in their turn to be converted into
conversion bonds? = a.
You must have become aware of the fact that:
about the 1st of October last, /, for the first
time, through public rumor, got the 1nforma-
ton that these bonds had been sealed by you
and transmitted to New York. could not be-
lieve It possible that the secretary of State
would have discharged such an important
public duty without aJ least having mentioned
he fact to the Governor, who, more than any
other person connected with the State Govern
ment, Is held responsible In public option for
whatever is done to affect the Interests Of
the State and people, whether he has the
power to control 1t or not. On learning
from the treasurer's chief clerk that you
had taken these bonds to your own pri-
vate residence, and placed the State seal upon
them, and then returned them 10 New York, I
Immediately called upon the comptroller-geue-
raj, stated the facts, and he consented TO 90 to
New York and learn what had become OF the
bonds. The following extracts from my let
ter, giving him authority to take possession
of the bonds, aud my letter to Mr.. Kimpton on
the subject, will explain themselves.
Extract from letter of instructions to Hon. j.
l.. Neage, omptroller-general, dated Column
bia, October II, 1871:
s'You ara further authorized and tnstrEcsssS
to secure any bonds of the above named 'ster.
ling loan,' that may be In the hands OF the treas
urer, financial agent, or any other party, which
may have my name printed upon them, ano
deposit them In some secure depository, and
forward me the receipt for the same; orr 10
the event of your failing to secure the posses
sion of them, you will at once notify me of the
TACT"
"STATE OF SOUTH CAROLINA,
"ExECUTIvE DEPARTMENT.
s'CoLUMBLA, October IL, 1871.
II. Fl. Kimpton, Esq, Financial agent OF
:, the State of South Carolina, Ne,o York:
I "SlR-I have been informed that the treas
urer of the State has executed and forwarded
20 YOU some of the bonds known as the ster
ling loan. write to Inquire If my inrorma
ton is correct; If 30, must say that shall
feel it my duty 10 notify the public of the fact
and caution all parties against purchasing
said bonds, as they have been fraudulently Is
sued. Your reply 10 this will be awaited will
great anxiety, and trust that the Information
Received may prove incorrect; and mus
further inaiat that all the bonds that hav