The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1879-01-09

The act establishes an Office, and the
officer was to be known as the land COM
missioner of the State of South Carolina.
; lie was to be appointed bv an advisory
board, which consisted of the Governor,
comptroller-general, State treasurer, sec.
retary Of State and attorney general.
The appointee was to give bond in the
penal sum of $4,000 for the discharge of
the duties of his Office, and WAS to receive
a salary of $4,000.
TO this land commissioner, who could
scarcely think without the sanction of
the advisory board, the Legislature di-
rected the treasurer to issue "Bonds of
this State in the sum of two hundred
thousand dollars, with coupons attached"
The plain intent of the act was that the
Bonds should be placed in the hands of
the land commissioner; his duties in
volring purchases and sales Of lands, the
direction in the 7th clause of the act as
to investment of moneys from sales, to
constitute a sinking fund for the redemp-
ton of the bonds indicate, separate
management, and that they were not to
be merged in the general funds of the
State.
Except the direction that the bonds
were to be issued to the land commits
sioner, there is no direction as to their
sale, nor any limit in the act of the time
within which they could be sold.
The bonds issued under this act bear
upon their face the words, "Issucd under
an act approved March 27, 1862"
The next act in relation to the Land
Commission was passed lst March, a. d.
1870, for an issue OF S500,00O. These
bonds were issued without limit as re-
CARDS time, but the power of negotiating
them was withheld from the land COM
missioner.
The bonds were to be negotiated by
the advisory board in such form and
manner as the board should determine.
The bonds issued under this act bear
upon their face the words loan under
act approved March 1st, 1870"
On the Goth of March, 1869, the day
before the passage Of the first Land Com
mission act, the Legislature, by act, au-
thorized the financial agent ito pledge
the bonds of the State, which the State
now has or may hereafter have in its
possession, as collateral security for State
loans," with the proviso, That in all the
transactions he shall conform to the pro-
vision of AN act entitled an act to au-
thorize loan to redeem the obligations
known as the Bills Receivable of the
State of South Carolina" ratified the
Goth day of August, A. d. 1868.
There was, by the section of this act,
an amendment of the acts of August,
1868, extending the time for loans to two
years.
Waving the question whether, under
the first act, any one could negotiate the
bonds but the land commissioner, and
consequently whether their hypotheca-
ton by the financial agent was not illc-
gal, it seems plain that the pledging Of
the bonds issued under both acts is OBJ
jectionabe.
The bonds were impressed with all the
restrictions attaching to other bonds
pledged by the financial agent.
Neither the loans nor the hypotheca-
ton were made within two ycars-thc
time limited.
For the reasons stated above, in regard
to the hypothecation Of other bonds, the
conclusion is that the land bonds hy-
pothecated were not issued in accordance
with law, nor authorized to be consoli-
dated under the act of Assembly A. d.
1878.
The defehdant objects that the coupons
detached from bonds between the 10th
June, 1874, and 9th June, 1874, amount
ing to 1891 1886, have not been issued in
accordance with law, nor authorized to
be consolidated.
The testimony of Henry L. Tappan,
(parol testimony, p. 73) shows how cou-
pons accumulated in the treasury until
November, 1872 lie says they were put
away in the vaults of the treasury, and
when he left the office, 1st November,
1872, they had not been disturbed.
James o. Ladd, in his testimony (par.
test, p. 72) says that while he was in the
treasury "there were maturcd coupons
clipped off from bonds sent to Kimpton.
These coupons were put in packages and
put away in the iireproof vault inside of
the safe in the treasury. They were not
cancelled at the time. They were put
away, and so remained uncancelled up
to the time he left the Office"
According to John L. Neagle's state
ment (par. test, p. sly he received in the
early part of A. D. 1878, from Niles G.
Parker, about 100000 of coupons for
his action in and as his share for the
funding of the coupons. His doubts
were quieted by assurance of Parker that
the thing was all right.
He turned over to Y. J. P. Owens for
funding large part of the coupons, be-
tween $4,000 and $4,000. He again
was disturbed about the character of the
transaction, and having "ascertained that
they (the coupons) were wrongfully in
his hands destroyed them, viz: the bal
ance, about $4,000, within the last
twelve months"
In the settlement with the financial
agent, journal House Representatives,
lS72-1S73, p. S07,) it is stated the agent
had returned to the State all coupons not
paid, excepting on outstanding bonds
owned by third parties or held as colIat-
eral as hereinafter mentioned.
The coupons of bonds owned by third
parties would be the property of the
owners of the bonds, and out Of Kimp-
toms reach, unless upon payment. The
proof is, the bonds and coupons pledged
were never paid by Kimpton. The
above facts corroborate the testimony of
Parker, (par test, p. l9) where he states
ut length the scheme between Scutt,
Chamberlain, Neagle, Kimpton and HIM
self to fund the coupons through Owens
or others. Aside from the testimony,
nothing can be more significant of the
transaction than the conduct of the par
tics engaged in it. There is no pretence
that the State owed them who were then
its present or late officers; Or that they
obtained the coupons in any business
transaction. Why fund through an.
other? They are dealing with tens of
thousands in a manner so free, rs TO sug-
gcst the idea of come easy, go easy"
i)ons If ,crnrd with humnn conduct that