The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1875-02-26

guishment of the public debt, and to
no other purpose; and although the
Acts which levied the taxes to pay the
interest both expressly provide that
the proceeds from the taxes levied
thereby "shall be applied to the pur-
poses for which they are respectively
levied, and none other" yet the State
freasuror has persistently applied the
proceeds of the tax levied to pay tho
interest due July /. 1874. to other pur-
poses. He himself testifes that he
borrowed some of tho interest money
OF July I, 1874, account to pay the
Legislature, December "a, 1874, and
to pay the interest due January l,
1873. and also to pay the deficiencies
for the fiscal year ending October 81,
1874" AS the State Treasurer, after
diverting $50, 1000 to pay the Legisla
ture, on 22d of December, 1874, had
still balance in bank of 279, ,O04. 20,
and as he has run down that balance
IN bank, by the 11th of January, 1875,
to about $22. 1000, Notwithstanding ali
his receipts for taxes in the meanwhile,
and as his January !, 1876, interest
account shows that his payments ex-
oeeded his receipts on that account.
up to January 13, 1875, only S801. 63.
1t can readily be perceived how large q
proportion of the money he diverted
from the interest fund was devoted to
tho payment of "some Of the def.
ciency accounts for 1S73-74, such as
balances due public institutions. sala-
ries OF State officers, County officers,
&o."
The committee submit that the con-
struction put upon the Act by the
State treasurer, as q justification for
his violation of it, IL as monstrous as
the violation itself. To say that .'lhe
Act means that the fund shall not be
permanently diverted" is to mako a
mookery of the Act which provides
that any diversion of the fund, whe-
ther directly or indirectly, shall be q
felony; while the bald assumption.
that iii. at the end of the fiscal year.
each account shall receive it's propor-
t!on, or If. at any time during that Pc
ROD. when an account on that specific
fund vas presented. it should be paid,
then the fund was not diverted"-
leaving the fund ''during that period"
to be used "for some other pressing
purpose"-is to deride the contract
made by the State with the holders of
tue bonds for the creation of such a
fund, and to render worthless all the
legislation by which that contract has
been sought to be fulfilled.
The committee submit that if fund
which tho General Assembly has di-
rected to be raised by o specific levy,
and to bo kept separate and apart from
all other funds, and to be applied to
the payment of the interest and to the
rxtinguishment Of the principal of the
public debt, and to no other purpose
If such fund, 30 made the basis OF
solemn contract between the State
and its public creditors may be mixed
up with all other funds in one account,
and may be diverted from its lawful
purpose and used for any other pur-
pose that the caprice or partiaiity of
the State Treasurer may dictnte, and
all this In the faoe. not only of the
positive prohibitions of tho statute,
but OF prescribed penalties of fine,
imprisonment and deprivation of Of
fice-if all this can be done by the
State Treasurer with impunity, then
stralut Of public Off :ers is dead let
tor III South Carolina, aud tho fear of
punishment need deter no public Of
ticer from it's violation.
The committee herewith submit the
testimony taken by them, and respect
fully ask to be discharged.
IHO3. 9. DUNN, Chairman,
W. B. NASH,
Is. +. WHITTEAIORE,
On the part of the Senate.
%. NJ. BRAYTON. Chairman,
". y. HAYNE,
Il. n. NEE TIE,
L Il. HUMBERr,
On the part of the E>Nse.
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