The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1873-07-17
After the Fraudulent Bonds.

Alter tne frauQulenL BOnQS.
1t appears that number of taxpayers, rep
resenting different sections of the State, have
determined to attack the issue of what is
known as the Conversion Bonds" and through
eminent counsel have applied for an injunction
against the proper officials to restrain them
from levying and collecting any tax for the
payment of interest upon this particular class
of State bonds. Under the act of the Legisla-
ture, permitting the issue of the conversion
bonds it is believed that nearly million dol
lars were properly issued in exchange for old
bonds and stock, but the remaining S6,O0O,O 900
we're illegally issued and pledged for the liza
bilities of the State, or were fraudulently "con-
verted" into the pockets of the bond swindlers,
yclept the Financial Board, under the Scott
administration. Judge Carpenter has prompt
ly granted temporary injunction, and prepa-
rations are making for grand contest over the
bond swindles.
We have long contended for an appeal to
the Courts, which is the only and last resort,to
get rid of the mountain of fraudulent debt
heaped upon the State by Radical officials
The failure to bring about an investigation of
the financial management of our State since
reconstruction, as sought directly and unavail-
ingly in the suit of Morton, Bliss & Co, has
undoubtedly caused the present movement, and
we believe that an earnest and united effort on
the part of the Taxpayers will unearth much
of the rascality practiced upon them in the
past few years. Without concert Of action,
and the means necessary to push forward the
suit, there can be no success; and if the people
of South Carolina really desire to expose the
wickedness of Scotts administration, and pre-
vent the grievous burden of spurious indebt-
edness from being imposed upon them and
their posterity, now is the time to manifest this
earnestness by SUPPORTING the movement just
inaugurated. The Charleston Mews and Courier
urges prompt and decisive action in the bllow-
ing words:
1t must not be supposed that this thing will
be allowed to 60 by default. There is great
an interest at stake. The holders of six or
seven million of bonds will make strenuous,
persistent and desperate fight. If the tax-pay
ers are in earnest, and expect to win, they must
go into the struggle in deadly earnest Also
When the bondholders get their counsel, then
the real fight will begin. There ought to be
concert and organization among the taxpayers
all through the State. In each county town
they should assemble, and give support to the
movement by moral and material aid. Let the
movement begin with the City Council, the
Chamber of Commerce, or other public body
and through them cooperation can and will be
secured.
If this opportunity of ventilating the Con-
version Bonds is lost, through lukewarmness
or apathy, it will probably be the last effortto
throw off this grievous burden of illegal and
fraudulent debt. ~
The Aiken Tribune (Republiean) expresses
sympathy with the movement and explains the
reason for selecting the conversion bonds as
the point of attack in the present suit, as fol-
lows: 5000
The complaint of the taxpayers against the
so-cafled fraudulent conversion bonds, was filed
in Columbia, Wednesday, before Judge R. B.
Carpenter, who passed an. order granting a
temporary injunction, restraining any 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 in the
complaint until the further order Of the Court.
Treasurer Cardoza Immediately left for New
York, apprehending tits thought that the suit
of the taxpayers would probably alter the
status of certain bonds in the market. The first
effects of the suit will probably be to depre-
ciate even the present small value of the con-
version bonds, and perhaps to enhance, tosome
extent, the value of the other classes of bonds.
But the holders of other illegal and fraudulent
bonds need not congratulate themselves. 1t is
true, that the taxpayers have settled in the
present case only upon the conversion bonds,
but the others will have their turn next, and be
subjected to the same crucble The conversion
bonds were selected because they were greater
ip bulk, being nearly one;half of the bonded
debt, than any other one class, or even than all
the other classes of new bonds put together,
and because, too, the fraud or iilegality con-
nected with their issue may be said to be al
most self-evident 1t simplifed matters to
leave out the other bonds ir the first suit and
to concentrate the attack upon the frauds
claimed to have been perpetrated under the
conversion act.
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