The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1881-04-14
The! Blue Ridge Scrip Suits.

Blue Ridge Railroad, against the Comp
troller- General and other officers of the
State of South Carolina, and Amos D.
Williams against the same, will come up
for trial. These suits are brought to
enforce the liability of the State of South
Carolina for the Revenue Bond scrip,
issued under the Act of March 8,
1872.
The parties prosecuting the case un.
der the name Of Williams are Edward
B. Wesley and Amos D. Williams, BAN
kers, of New York City. These two
gentlemen advanced about 100000 at
the request! of the State treasurer and
the president of the Blue Ridge Railroad
Company, to enable the State to redeem
its guarantee on very nearly $4,0O0,000
of bonds of the blue Bidge Railroad
Company, which had been guaranteed
by the State prior to March 2, 1871. By
the act of that date the State provided
for the issuing Of 81 100000 Of scrip
(styled Revenue Bond Scrip) to take up
and retire $4,OO0,0OO of bonds of the
Blue Ridge Railroad Company which
had been guaranteed by the State and had
been pledged in Wall street with differ
-ent. bankers. Messsrs. Wesley & Will
liams we're induced to make the advance
mentioned on the faith of this Revenue
Bond Scrip. The Blue Ride Railroad
bonds were taken up, With the exception
of 5000, 900, which were in the hands of
the State agent and were handed over to
the State treasurer. and by him cancelled,
the Revenue Bond Scrip being left in
the hands of these gentleman as. collat-
eral alsecurity. -
Sometime subsequent to this loan q
question was made as to the validity of
this Revenue Bond Scrip, on the ground
that it was unconstitutional to issue it,
and the question was so decided in
anothercase by the Supreme Courtof the
State. From that time to the present.
therefore, these gentlemen have been
trying to recover their money, with the
interest due, which now, in the aggregate
amounts to nearly 100000. Various
legal proceedings have been taken by
them and by the assignee of the Blue
Ridge Railroad Company, which finally
resulted in .sappeals to the Supreme
Court of the United States. The cases
were argued by Mr.. Dennis McMahon,
of New York, for Messrs. Wesley &
Williams and for the assignees of the
Blue Ridge Railroad. The State was
represented by Attorney:General YOU
mans.
In the case brought by Mr.. Williams
the decision of the lower Court was
affirmed with the liberty to the plaintiffs
to commence new suit, on the ground
that they had rot made a demand
on the State officers for the amount
of their claim prior to commencing the
suit. The Supreme Court, at the time
of this ruling, plainly intimated that if
Mr.. Williams had made his demand on
the State treasurer prior to the COM
mencement of the suit, it would have
held that the legislation Of the State of
South Carolina repeating the Revenue
Bond Scrip Act after its issue was
unconstitutional. The case brought by
assignees of the Blue Ridge Railroad was
reversed and was sent down to the Cir.
cult Court for new trial.
Mr.. Williams, in the meantime made
the required demand upon the State
officers and commenced new suit, and
both cases will consequently now be tried
together before Judges Bond and Bryan
during the present term on new and
revised pleadings and additional eyi.
dence. The record will. occupy 200
printed pages. The cases.will be argued
By Mr.. Dennis Mcmahon of New York,
Col. j. II. Rion of Chesterfield, and, Mr..
Thomas S. Cavender of Columbia for
the plaintiffs, and by the Attorney
General for the State.
Messrs. Williams and Wesley with
their counsel, Mr.. Mcmahon, are in the
city, and say, that they lent the money in
good faith, andallthey desire is to get back
the principal with interest at seven per
cent. per annum. Through their agency
the State was released from liability under
its endorsements of the Blue Ridge RailI
road bonds, and, at the same time, has
escaped, so far, from any recognition of
the Revenue Bond Scrip, on the security
of which the money to redeem the bonds
was advanced.