The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-07-11
Against Dona-Ho,d.rs.

Va1~pAyers Against DOnU.ioid srs.
The complaint OF the taxpayers
against the fraudulent conversion bonds
was a!ed before Judge Carpenter, OH
Wednesday, upon hearing which and on
motion, he passed the order for tempo
rary injunction, which we published
yesterday. The plaintiffs recite the Act
of the General Assembly to provide for
the conversion Of the State securities,
passed March %, 1869, and the Act re-
lating to the bonds Of the State, ap-
proved March 13, 1872. commonly
known as the Validating Aot, and the
provision under it for an annual tax, in
addition to oil other taxes, to be levied
to pay interest on the bonds named in it;
and then proceed to declare the uncon-
stitutionality of the Acts, AMI the fraud
ulent character OF the bonds issued
under them.
They say that in and by the Constitu-
tion Of tho State of South Carolina, the
power Of the General Assembly to con-
tract public debts is limited to the pur-
pose OF defraying extraordinary e1pen-
ditures; and by the said Constitution it
is ordained that suoh debts shall be au-
thorized by law for some single object to
be distinctly specified therein, and that
no such law shall take effect until it shall
have been passed by the vote of two
thirds of the members Of each branch of
the General Assembly, to be recorded by
yeas and nays on the journals Of each
House respectively. And the plaintiffs
aver that neither of the said Acts of the
General Assembly, above recited and ap-
proved respectively March %. 1869, and
March ID, 1872, were passed in conform
ity with the said provisions OF the Con-
stitution, but, on the contrary, are in
violation thereof, and are unconstitu-
tional and void, and that no valid obi-
cation of the State exists to pay any Of
the bonds or stock Issued under the pre-
tended authority of the said Acts OF
Assembly.
That the Treasurer OF the State has,
nevertheless, issued bonds OF the State
under the pretended provisions of the
said Act, entitled "An Act to provide for
the conversion of State securities to the
amount Of 81, 191, ,700," and that the said
bonds are set forth aud included in the
said report of the Treasurer, bearing
date October 80, 1871; and that these
bonds are the eame bonds which are
mentioned in the Act of the General AS
sembly, entitled IAN Act relating to the
bonds OF the State of South Carolina"
The plaintiffs aver that, according to
the provisions Of the said Act, entitled
IAN Act to provide for the conversion Of
State securities" the new bonds author
izsd to be ISSUED were intended
to be issued as substitutes for
the stock authorized to be taken
mp. and the new stock authorized
to be issued was intended to be issued as
u substitute for the bonds authorized to
be taken up, aud it became and was
necessary part Of such transaction; that
the bonds and stock so taken up should
be cunceled aud extinguished before tho
new stock or bonds could lawfully be
issued; that tho whole pretended issue
Of the said 81, 91,700 of bonds was
made without taking mp, cancellation or
extinguishmcnt of other stock or bonds,
previously issued in behalf OF the State
that such issue acas frdudulenAy made,
with the intent to create new debt Of
the State. and was not issued in lieu Of
other stock or bonds Of the State previ-
ously issued; that oil the said bonds,
amounting, as aforesaid, to S7,191,7
hre, tueIeioEci HleSal, lThuuuleAt nuu
void, and have not creatod and do not
now constitute valid obligation of the
State OF South Carolina.
They say further, and conolude thus:
The plaintiffs nver that the said pretend
ed lien is cloud upon tho title to their
property, and that the payment thereof
would work great injury to themselves
and all other taxpayers and holders Of
property in the said State; that the said
several bonds upon which the said claim
is founded, are all fraudulent and void,
and that the plaintiffs are entitled to
havo the same delivered up and Cancelled,
nnd to have their property discharged Of
any charge thereon for payment Of
principal or interest Of oil or any Of said
bonds.
The plaintiffs thereupon pray jn,lg-
ment that the said Morton, Bliss & Co.,
the Peoples Bank, G. o. Witte, D. L.
Gil!ilnnd, and oil others holding Quo or
moro OF the s7,10l, 700 of bonds, may
produce tho said bonds, aud the same
may be declared void and Cancelled under
the decree Of this court; that's. L. Hogc,
the Comptroller General OF the Stnte,