The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1874-10-14
COLUMBIA, S. c..
wednes lay Morning. ootb'r IL, 1874,
Senator Damn. Bond Disclosures.


the discussion upon the bonds which
is going on between Senator Dunn and
Treasurer Oardozo. Mr.. Dunn having
made personal Investigations. as CHAIR
man Of q committee duly authorized
10 do SO. among the bankers and
brokers, OF New York, as to the condi-
tion of the bonded debt, the amount
Of bonds hypotbecated, for what
sums, and for how much sold, and ut
what times, and as to all other particu-
lars embraced in his commission, in
June last made report to the Trea-
surer, alleging that he had discovered
several Irregularities in the issue of
bonds. In the Treasurer's first article
OF the 9th instant, he states these
Irregularities as having been reported
by Mr.. Dunn to be: That the bonds
had limit fixed in the Acts which
authorized their issue. and that they
were sold after the expiration OF that
limit. standing they had been
hypothecated before it, and the State
(by means of that hypothecation, we
suppose, had received the money au-
thorized to be raised on them. In Sc
nator Dnnn's reply, he quotes from
his report to the Treasurer to show
that bonds to the amount of about
$l.250. 0U0 had been hypo.hcoated to
parties in New York, at periods after.
their limit had expired. ranging be.
tween seven months aud nearly Two
years. In his rejoinder, of yesterday,
the Treasurer re-states this part of the
report OF Mr.. Dunn. admitting what
he before denied, that one of the
irregularities, as reported to him, con-
sisted in the bypothecation of the
bonds after the expiration of the time
TO which their use was limited by the
law.
Wr. Dunn regards the hypothecation
Ehlch be- thus alleges to have taken
place, to have been in violation Of law,
as it was the use of the bonds out OF
lawful time. We have heard him say
that they are just as bad on this ac-
count as the conversion bonds are bad
for other reasons. Treasurer Cardozo
now agrees with him that the use by
hypotheoation or otherwise Of bonds
after the time fixsd in the Acts limiting
their issue would be illegal. But he
denies the fact which Mr.. Dunn al
leges that he ascertained on his visit
to New York, and treats the statement
OF it as an assumption. He does not,
however, produce any evidence to sub
stantiaie his own assertions. that
Kimpton hypotheoated these bonds
dozen times, both before and after th o
legal time, except the improbability
that be and Parker could keep bonds
in their poss ssion any considerable
time without making use Of them.
That is improbable; bat whatever may
have been the shifts to which these
men Eesorted by use of bonds in
their hands, We have not the shadow
OF doubt that Senator Dunn's state.
ment OF the fact of final unlawful hy-
poshec'tion is entirely correct. In
fact, the Treasurer, nnconsciously,
perhaps, admits as much himself, when
he says that Kimpton hypothecated
them dozen times gfle'. they wore le-
gally dead. II that be true, it was a
dozen times violation OF the law, and
just as much and as gross a violation
each time as if tue dozen times of by.
Pothecation within the specified time
had not taken pluce.
Mr. Cardozo treats MIR. Dunu's
statement as an assumption. but at last
himself thus comedies it to be fact,
and in conceding it. admits the COR
rectness Of his adversary's general
conclusion, and, in his own language,
Ill Mt. Dunn has really discovered
that over million of the bonds OF
South Carolina, besides The conversion
bonds. have been illegally issued, then,
indeed, it is matter Of very great
public importance" SO fur US the
discussion has advanced, Senator Dunn
l.. H. a.