The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1879-01-09
RESTRAINING THE STATE.
Tho Treasurer Prevented from Paying the
Interest OH the Recognized Bonds of the
State,

Judge Brayan, of great interest to the
holders Of the consolidation bonds and
stock of the State of South Carolina. 1t
will be remembered that by the supply
bill of June 9, 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 fdc
by the commission appointed by the Leg
islature to investigate the debt of the
State. This commission found that only
81 SIT ,S35 of the bonds and stocks issued
under the consolidation act were valid,
and that the remainder, being $2,SlS,-
454, were invalid, as resting upon invalid
and illegal securities. The interest upon
the amount reported valid by the Bond
Commission for the year 1877 was
promptly paid by the State out of the
funds which had been collected to pay
the interest upon the entire debt.
Last spring, when, what was known as
the bond compromise was effected by the
Legislature, tax was levied again suli-
cient to pay the interest on the whole of
the consolidation debt recognized and
unrecognized, with the proviso that no
interest should be paid on the unrecog-
nizcd debt until it should have been
finally adjudicated to be valid debt of
the State. The interest fund of the un-
recognized debt for the years 1877 and
1878 remain therefore in the treasury,
and ut the late session of the General AS
sembly 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 thereafter
be established as valid. From the fund
before mentioned was also to be paid the
interest for 1879 on the consolidation Sc
curitics issued during the last year and
known as the Hampton debt.
No provision, except through this accu-
mulated interest fund, was made for pay
ment of the interest on the recognized
debt, which is admitted by everybody to
be valid, but to prevent the holders of
the unrecognized debt from sustaining
any injury by the apparent diversion Of
what they consider to be their fund, 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.
H. Brawley, filed n 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
10 the purposes described.
In presenting the bill Mr.. Lord stated
that the position his clients held was that
the interest fund had been collected for
specific purpose, and that any act of leg
islation diverting it in whole or i'll part
from that purpose was breach of faith
on the part of the State, aud 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 elaborately 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
South Carolina, Fourth Circuit.-in the
Circuit Court. J. B. Manning ct al
against S. L. Leaphart, Treasurer Of
South Carolina.
1t appearing, from the bill ofcomplaint
filed in this case, and verified by VIM. II.
Brawley, attorney of the complainants,
that the said complainants have prayed
for q temporary injunction against the
defendant, 8. L. Leaphart, 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 suffi-
cient to warrant the granting Of q res
training order until there can be decis-
ion upon the motion for the granting of
All injunction now, therefore, in order to
prevent such injury.
tits order that the Marshal of the Uni
ted States for the District of South Caro-
lima, or his deputy, do serve copy ofthe
notice annoyed hereto, and also a
copy of said bill, upon the defendant, S:
i. 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 the 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 per
diem and mileage of the members of the
General Assembly, the salaries of the
subordinate officers and employees there
of, interest on the public debt, and for
other purposes therein named" for the
payment of the coupons maturing res
pectively in the year 1877 and 1878, to
the payment of the coupons on consoida-
ted bonds which mature in the year 1879,
and for paying out, parting with, or dis,
posing of the Aforesaid proceeds and
moneys now IN the Statc treasury or
any part thereof, except under the direc-
ton of this court and until It's further or
der therein.
This order shall remain of force until
the hearing and decision of the said mo-
ton for an injunction.
1t is further ordered that the complain
ants in this bill, jointly and severally, or
one or more of the said complainants,
shall enter into a bond with sufficient Sc
curity to be approved by United States
Judge of the DISTRICT in which said sure
ties may reside, and to be nlcd in tho Of
flee of the Clerk of this Court by the 18th
day of January, 1879, in the penalty of
s2O,0e0, payable to S. L. Leaphart or his
successors, all damages and costs OF ex-
cecding the amount OF said penalty which
said defendant may sustain by reason of
the said restraining order, If it shall be
n L \ - Al