The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1872-01-25

Forming thus happy band. ,,i
Some, indeed, may meet with darkness,
=. Mingled with the blackest streams;
/ Yet I've nothing seen but beauty,
10 . In that lovely land Of dreams. -
.uy4zea odl ,;i''oii .aiiE LULA =
| Vil1ianstoa, S. c. Nio. f9-
..i3tI.I T.. - i-.--e -. .----- e. 81
The Meeting Of South Carolina Bondholders
a9.,f IN Baltimore. mol, - 5-aT ioi
The. Baltimore Sun, of tie 11th inst, gives
the annexed full report of the meeting of South
Carolina boadbolders in that city, Of which
mentions was made inourilast issue:
The holders of South Carolina bonds helda
meeting last evening at the Eutaw House, for
the purpose of taking action in reference to
their claims against that State. A. B. Patter-
son, ESQ.,, was called Ito the chair, and Mr..
Chas. E. Roberts appointed Secretary. There
were fourteen persons present, representing
some two hundred thousand dollars of bonds,
mostly owned in Baltimore, but some held in
New York, and other places, represented by
proxy. - '.'-'.a'.5E ~ '''i. - ~ 7...'
The chairman stated that much larger
amount of bonds would have been. represented
but for some misunderstanding regarding the
meeting Some. dozens of letters had been re-
ceived from parties in New York and elsewhere,
making enquiries as to the object of the meet
ing, but they were addressed to the Secretary,
Mr.. Roberts, at the Eutaw House, and had on
ly come into his possession on this evening".
Had these letters been received in time to be
answered, no doubt much larger amount of
stock would have been represented. The chair
shen asked the Secretary to read the following
legal opinion:
THE undersigned, having been engaged as
counsel to investigate and report the legal mer-
its of the bond claims held by various bona fde
purchasers against the State of South Carolina
respectfully state that the subject matter of the
INQUIRY, though important in the large pecuni-
ary amounts involved, lies within a,small COM
pass as legal proposition. have in my hands
a letter dated September '29, 1871, written by
the direction of Gov. Robert K. Scott, and
signed BY his private Secretary, inreply to q
letter of. inquiry from gentleman of this city,
in which was enclosed "copy of statement
Of the debt Of South Carolina lately forwarded
to the Hon. John Scott, United States Senate,
Chairman of the Joint Select Committee to en-
quire into the condition of the late insurrec-
tionary States" The letter concludes by en-
phatically declaring that this report may be
relied upon as correct" and on the faith of this
had invested large sum in the purchase of
South Carolina bonds at the average price of
about sixty.seyen cents in the dollar, continued
to hold said bonds, then worth ffty-three cents
in the dollar; since when the decline to the
present time has been fifty-six per cent, or
eighty-four since purchase.
The copy of Governor Scotts report, enclosed
and referred to in his letter, states the "total
issue of bonds and stock to be S9,52S, ,564. TO-"
from which he deducts S250,000 paid during
the fiscal year 1871, and S100, 900 held by the
sinking fund, leaving residue of issued bonds
and stocks of only S9,17S564.10, all the en-
dorsenents by the State of railroad bonds being
declared by Governor Scott to be amply. pro-
tected against loss. Undoubtedly this state
ment can be considered as q substantial cause
of action BY the gentlemen who continued to
hold ON the faith Of it., if it was falsely and de-
ceitfully made. we. now have reliable evi-
dencet that; contrary to the statements made by
ness OF South Carolina on the 18th Of Decem-
Der, 1871, was ut least $16,37l ,306 if not $22,l
600, 900, and it results that he either misrepre-
serted the facts as known 70 him, in September
last, or has been privy to the subsequent over
issue of several millions Of bonds contrary to
the intimations' and declarations Set forth in
said report, thatSno further issue would be ne
cessary.
The above statement and inferences are abun-
dainty supported by the reports of legislative
committees and other testimony found in copies
of the Charleston papers. 1T is clear that the
gentleman who has this direct and unequivocal
assurance from Governor Scott can better than
any one else enforce strict accountability at
his hand, and the only remedy open at present
to the holders of these bonds, now so deprecia-
ted, would seem to be to act in concert with my
client by giving them countenance and support
in legal proceedings to be instituted in the
United States Courts in South Carolina and
perhaps in New York, with a view to ventilate
these stupendous frauds by the coercive process
of the Federal Courts, leading if necessary, to
the Supreme Court of the United States. If
these suspected frauds are proved in court of
Justice, as it now seems they will be, its judg-
ment will not only make the guilty offenders
disgorgetheir ill-gotten gains, but the develop
ments in such suits must result in criminal
prosecutions, by which all such offenders may
be made to feel the extreme penalty of the law
they have so shamefully violated. My client is
ready and willing to lend the use of his name
and the testimony he has, for the institution Of
legal proceedings, and to apportion pro rata the
fruits of any Judgment he may recover among
all those who may come in at once and contrib
ute their pro rata of the moderate preliminary
expenses which are necessary to set on foot
these proceedings, and prosecute them with
vigor and energy. But he is not willing to
move in even so clear q case for the limited in
terest he has without the cooperation of such
a number of the bondholders as will not only
render the pro rata Of preliminary expenses as
trihing and insignificant to the great object in
view, but will give moral force to the legal
prosecutions as well as to such an appeal for
legislative relief as may be thought advisable.
Having, as he believes, better ground for ac-
tion than perhaps any other stockholderr, he
has, with the cooperation of few others hold
ing bonds in this city, originated the idea of q
devise the best method of ultimately realizing
the face of their bonds, now SO much depre-
ciated.
A. HI, rocuoct ond for tho common hennfit