Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1873-07-17
A Bold Moyemsal Against the
Conversion B0niS. %.

will be TO file a complaint before Judge
Carpenter alleging fraud and illegal
ity in the issue of the bonds eommon-
ly known as the conversion bonds,
amounting in the aggregateto 81
I9l, 700, praying an-investigation, &C.,
and an order Of injunction against
the fiscal officers of tie State, restrain
ing and preventing them from the
levying or collection of any tax to
pay the interest on the said bonds, or
from paying the interest upon them
from any fund whatsoever. Judge
Carpenter, tits presumed, will, as 8
matter of course, grant temporary
injunction forthwith to hold until
the final hearing and decision of the
cause. r.
sAttorney General Melton has very
promptly conceded the use OF his
official name to the complaining tag
payers.
1iO Aoi3oWihS ~ AAAS ASHAy " WV
written request Of the taxpayers
counsel:
OFFICE OF ATTORNEY GENERAL, l.
COLUMBIA, s. G., July Q, 1873, !
.Messrs. c. C. Memmingsr, W D.
~ Porter, Butler, and LsSaussprs !!
DEAR SIas-.I have the honor to
acknowledge the receipt Of your com.
munication Of the 90th ult.; in which
you say!
1--WE have been retained by certain
of the taxpayers and property hol-
ders in, South Carolina ITO institute
proceedings for testing ahe validity
OF the bonds issued under the con-
version act, and for having The same
declared void and cancelled. We
would prefer that the proceeding
should have the sanction of the at
torney general, and we now address
you to ask permission to use the
name of the attorney-general ex re-
latione.
In the case OF the State ex rela-
tione Morton, Bliss & Co., against S.
l.. Hoge, comptroller-general, it was
my duty to enter, what I cannot but
regard as conclusive, plea to the
Jurisdiction of the court it was not,
however, and is not now, my pur-
pose to avoid an investigation of the
public debt, whenever proceedings
proper to that end may be instituted.
T. In reference to the proposed pro-
ceeding, am not sufficiently advised
to enable me to determine what posi-
tion my official duty may compel
me to occupy, but I take it for grant
ed that it cannot be inconsistent with
the formal use OF the name of the
encouragement, to which every cit
izen in such casei entitled.
have the honor in reply, to &C.
cord, as requested permission to use
the name of the attorney-general ex
relatione. And l am.
With great respect, gentlemen,
Your obedient servant,
SAM'L W. MELTON,
Attorney-General.
1t is said there is quite a lutter
among some Of the magnates at the
Statehouse, consequent upon the pro-
posed crusade of the taxpayers against
the conversion bonds, which was first
disclosed definitely to them by the
request made to the attorney gene
raj for the use of his official name.
Immediately thereafter Treasurer
Cardozo left for New York, and the
general impression is that the appre-
hended suit of the taxpayers, which
will probably alter the status of cer-
tain classes of bonds in the market,
was the cause of his departure.
THE FIRST EFFECT OF THE SUIT
will probably be to depreciate even
the present small value of the con-
version bonds, and perhaps to en-
hance, to some extent, the value of
the other classes of bonds. But the
holders of other illegal and fraudu>
lent bonds need not congratulate
themselves too extravagantly. 1t is
true, as the reply of the attorney
general above written indicates, that
the taxpayers have settled in the
present case only upon the conversion
bonds. But the others, your cores.
pondent is informed, will have their
turn next, and be subjected to the
same crucible. The conversion bonds
were selected because they were
greater il, bulk. being nearly one.
half of the bonded debt, than any
other one class, or eve than all che
other classes of new bonds put toge sh.
er, and because, toe, the fraud or ille-
gality connected with their issue il
admitted on all sides, and may be
said to he almost selfevident. Il
simplifed matters to leave out The
other bonds in the first suit, and
to concentrate the attack upon the
giant frauds under the conversion
act.
On the 9th, the complaint of the
taxpayers against the fraudulent con-
version bonds was fled before Judge
Carpenter. After hearing the com.
plant, and upon motion, Judge Car.
penter passed an order granting 9
temporary injunction, restrainingany
and all Of the fiscal officers of the
State from levying or collecting any
tax for the purpose of paying the
interest upon the bonds mentioned il
she complaint until the further orde,
Of the court. E
The case is now fairly in court, ,anc
everything runs smoothly 50 far.
TAKE NOTICE.