Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1879-10-02
CHE Aurkpille Guqairer>
YORKVILLE, s. G.. /:
THURSDAY MORNING, OCT. 2, 1879.
DECISION on STATE BONDED DEBT.

THURSDAY MORNING, OCT. 2, 1879.
DECISION ON STATE BONDED DEBT.
The Supreme Court, on Saturday last, filed
its decision in the State bond cases. The
decision, which is quite lengthy, was delivered
by Associate Justice McIver and concurred in
by Chief Justice Willard. Associate Justice
Haskell dissents, holding that all the Consol-
idation bonds are valid obligations Of the
State. The following are the conclusions
reached by the court:
1. That all the bonds issued under an Act
entitled "An Act to reduce the volume OF the
public debt and provide for the payment OF
the same,'' are valid obligations of the State
of South Carolina except as follows:
l. Such as were issued in exchange for bonds
issued under can Act to authorize loan for
the relief of the treasury or for the coupons
of such bonds.
2. Such as were issued in exchange for the
second issue of bonds under an Act entitled
''An Act, to authorize State loan TO pay IN
terest on the public debt" or the coupons OF
such bonds"
3. Such as were issued in exchange for those
conversion bonds which were issued in eX-
change for either of the two classes OF bonds
last mentioned, viz, bonds for the relief OF the
treasury, and the second issue of bonds to pay
the interest on the public debt, or in exchange
for the coupons of such conversion bonds. :,
II. If any consolidation bond rests wholly
upon any of the three Objectionable classes OF
bonds or coupons just mentioned, then it is
wholly void /; but if it rests only in part upon
such Objectionable classes of bonds or coupons,
then it is only void to the extent which it does
rest upon such Objectionable bonds and coup
ons, and for the balance of it, it is a valid op-
legation of the State. .,
III. That the burden of proof is upon the
State to show that any particular bond which
may be brought into question does rest, either
in whole or in part, upon such Objectionable
bonds or coupons, and, if in part only, then
the State must show what part is so affected.
The judgment of the Court of Claims is set
aside, and the cases are remanded to that court
for such further proceedings as may be neces-
sary under the principles herein announced.
The State raised nine exceptions upon
which the validity of the bonds were chal
lepged. The disputed bonds were those which
had been consolidated, 1st, from detached
coupons from the Relief of Treasury bonds;
I'd, from detached coupons from Conversion
bonds; Sd, from detached coupons maturing
on or before July 1st, 1871; 4th, from de-
tached coupons funded by Scott, zealy and
Owens; 9th, from hypothecated bonds and
coupons 9Th, from the second issue of bonds
for payment of interest on the public debt
and coupons; 7th, from the Land Commits
sion bonds and coupons; 9th, from Conver
sion bonds and coupons issued for the second
issue of bonds for the payment of interest on
the public debt; 9th, from the Conversion
bonds and coupons issued for the Land Com
mission bonds. The Court has sustained the
first, sixth and eighth objections, and has
overruled the others.
The Columbia Register gives the following
as the results of the decision:
1t excepts from being valid obligations OF
the State under the Consolidation Act, as
stated in the final report of the Bond Com
missioners, "Vouchers not issued in accord
ance with law and authorized to be consollda-
ted by the Act" as follows
PAYMENT INTEREST PUBLIC DEBT, SECOND ISSUE
amount Anached Detached
Bonds. Coupons. Coupons. 1otal
$4,000 $l13,595 5 99,s45 $l,040,O0O
RELIEF OF TREASURY.
$694,OOO $l36,s45 sl36,170 $l,O66, OILS
CONVERSION BONDS.
$2Os45O $2s,72O S6l,S79 s 294,O59
s2,4os,51
If we apprehend rightly, these are the false
vouchers which, wherever found, are held to
be not valid obligations of the State, and are
to be deducted from all consolidated bonds is
sued therefor, the balance, if any, being good.
That is, suppose a holder of securities funded
$100, 900 of vouchers of valid obligations, and
another 100000 consisting of second issue
bonds to pay the public debt, or for relief OF
treasury, or conversion bonds issued for either
of the classes of bonds as above, he would
have, under the decision, the latter hundred
thousand eliminated from his vouchers as new
er having been valid obligations of the State,
and hence would receive $4,000 of consolida-
ted stock on his good vouchers alone, or OH
S100, 900, as by terms of the consolidated Act;
the court holding that the Consolidation Act
did not carry these invalid obligations. We
then may estimate that this decision shuts off
50, ,4O9, ,514 of vouchers as bad, and saves the
issue of 81 ,204, 757 bonds, or that much actual
money to the taxpayers and this because the
State is held by the court never to have in
CURED the obligation in conformity to it's
Constitution and laws. .