The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1879-01-09
RESTRAINING TIE STATE.
The Treasure. Prevented from Paying til,
Interest OH the fsUcOgnixri ISouus of "a,
State.

a motion was made in the United
states Circuit Court Yesterday before
Judge Brayan, Of great interest to the
holders of the consolidation bonds and
stock CT the State Of South Carolina. 1t
will be remembered that by the supply
bill OF June 8, 1877, the State provided
for the whole Of the interest on the con.
solidation debt for the year 1877 which
should be found to be valid and bona tide
W the commission appointed by the Leg
lslaturc to investigate the debt of tile
State. This commission found that only
81 ,577 $50 Of the bonds and stocks issued
under the consolidation act were valid
and that the remainder, being $2,8I8,.
l34, were invalid, as resting upon invalid
and illegal securities. The interest upon
the amount reported valid by the Bond
Commission for the year 1877 WIS
promptly paid by the State out of the
funds which had been collected to pay
tie interest upon the entire debt
Last spring, when, what was known as
the bond compromise was effected by the
Legislature, tax was levied again su(ii-
clent to pay the interest on the whole of
the consolidation debt recognized and
unreco9nized, with the proyiso that no
interest should be paid on the unrecog-
nized debt until it should nave been
finally adjudcated to be valid debt of
the State. The interest fund of the un-
recognized debt for the years 1877 and
1873 remain therefore in the treasury,
and at the late session Of the General AS
semby it was enacted that out Of this en-
tire fund so remaining in the treasury
should be paid the interest on the recog-
nized debt for the year 1879, the remain
der being of course left in the treasury
for the benefit Of any portion of the un-
recognized debt which should hereafter
be established as valid From the fund
before mentioned was also to be paid the
interest for 1879 on the consolidation Sc
curities issued during the last year and
known rs the Hampton debt.
No provision, except through this accu-
mulated interest fund, was made for pay
mel t of the interest on the recognized
debt, which is admitted by everybody 10
be valid, but to prevent the holders of
the unrecOgnizcd debt from sustaining
any injury by the apparent diversion of
what they consider to be their iund, the
appropriation bill provides "that as soon
as the question Of the validity Of the (un-
recognized) bonds shall be finally deci-
ded provision shall be made for the pay
ment OF the interest upon all bonds which
may be decided to be legal, honest and
valid.
In the United States Court yesterday.
Mr.. Samuel Lord, Jr. acting for Mr.. w.
II. Brawlcy, filed bill to restrain the
State Treasurer from paying out any part
whatsoever of the interest fund now in
the treasury collected as before mention
ed and appropriated by the Legislature
| . u { purposes described.
In presenting the bill Nfr. Lord stated
that the position his clients held was that
the interest fund had been collected for a
specific purpose, and that any act of leg
islation diverting it i'll whole or in part
from that purpose was breach of faith
on the part of the State, and Was beyond
that violation Of contract with the hold
ers of the unrecognized debt, and was,
| therefore, unconstitutional and void.
The grounds for the application of an in
junction are fully and ela5o.ately set
forth in the bill, which is very volumi-
| nous.
After hearing the reading of the papers
and the argument, Judge Bryan granted
! the following restraining order.
United States of America, District of
Circuit Court. J. B. Manning ct al
against S. l.. Lcaphart, Treasurer Of
South Carolina.
It appearing, from the bill ofcomplaint
| filed in this case, and verified by WIN. H -.
Brawlcy, attorney Of the complainants,
that the said complainan.s IS have prayed
for a temporary injunct.on against the
defendant, 8. l.. I.eaphart, Treasurer of
the State of South Carolina, and it also
appearing by the said bill that there is
danger of irreparable injury to the said
complainants from delay to grant such
injunction, and it further appearing that
the facts stated in the said bill are sufi-
cient to warranv the granting Of res
training order until there can be decis-
ion upon the motion for the granting of
an injunction; nov, therefore, in order to
pre~cnt such injury.
1t is order that the Marshal of the Uni
ted States for the District of South Caro-
lima, or his deputy, do serve n copy of the
notice ANNEXED hereto, and also q
copy Of said bill, upon tho defendant, S
l.. Leaphart, Treasurer of the State OF
South Carolina, and that upon the service
of said notice, and also upon the service
of this order, said defendant be, and he
is hereby, restrained from applying the
proceeds Of the tax, or any part Of the
proceeds of the tax liens by the act pass.
ed on the 9th day of June, 1873, and en-.
titled can act to raise supplies and make
appropriations for tho fiscal year com.
mencing November l, 1877" and the
act passed on the Goth day Of March
1873, and entitled "An act to make ap
preparations for the payment of the pei
diem and mileage Of the members of the
General Assembly, the salaries of tht
subordinate officers and employees there,
of, interest on the public debt, and fol
other purposes therein named," for the
Payment of the coupons maturing res
pectively in the year 1877 and 1878, II
the payment of the coupons on consulida
TED bonds which mature i'll the yeur 1879
aud for paying out, parting with, or dis
posing of the aforesaid proceeds ant
moneys now in the State Treasury, Of
any part thereof, except under the direc
tion of this court and until It's further or
der therein.
This order shall remain OF force unit
the hearing and decision Of the said mo
ton for an injunction.
1t Is further ordared that The complain
ants in this bill, jointly and severa;sy, o.
one or more of the said complainants
shall enter into bond with sufficient Sc
curity to be approvcd by United State.
Judge of the DISTRICT in which said sure
ties may reside. and to be filed in the of
flee of the Clerk of this Court by the l5tl
day of January, 1879, in the penalty o
O,Oe0, payable to S. l.. Leaphart or hi
anccessors, all damages and costs OF ex
ceeding the amount said penalty which
said defendant may sustain by reason O
the said restraining order, If it shall b,
finally decided that the cqmplainants art
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