Springfield globe-republic. (Springfield, Ohio) 1884-1887, 1886-10-28

E..NN.
"o 'o'i"""s ie''oi iioi'r "t"'' -Au"''''
h'ese"e''ef' "enh"cra'' an" James Law
renee, fund commissioner, also democrat,
is in reply TO A campaigu lie against Gen.
Isuas = Rohirsop now sacrat,,,, of state
-..,.
anu " C''i''' '"' WI Wv
Hcah tCke'' anu iuIll uiHl'">eS oI lhe In'aIi'
malicious and deliberate talSehOodS officially
iSsued and circulated hy the democratic
.,,,, -, ,,,,,,,,,,;,,..r
COLUMBU>. o.. Oct. 26. 1885.
Hon. J. 5. Robinson, Columbus. O.:
DEAR SIR-The democratic state eXeCu-
tive committee having published and crCu-
lated false and malicious attack upon
you in connection with the proposed re-
/ funding of the state debt in the spring of
! 1885, We deem ii proper to make this state
ment:
| |. The intimation that you were mainly
responsible for the action of the sinking
/ fund commission in that matter is entirely
/ false. Ii is certainly singular stupidity on
the part of the democratic committee to sup
pose that party capital can be made by mis-
| representing a transaction in which, what
ever its merits, three democratic officers
were concerned and one republican. We
J
Hoadly, prior to his departure for West
| Point, knew that the sinking fund commits
sion was considering the question of re-
! funding the debt and was fully adj
vised of everything which had thus far
been done in the matter. 1t was in his Office
and his presence that one. if not both, of rs
met Albert Meter for the first time, and h.
knew Of Meters proposition TO exchange
| the outstanding six per cent. bonds for new
/ bonds bearing four cent interest and not
| only made no objection thereto. but gave us
10 understand that he favored an exchange
! on these terms. All persons concerned
were also aware that under the law the
sinking fund commission could make no
exchange without the approval of the gov
ernor.
2. The question OF selling bonds OF the
state either at S.65 per cent or any other
rate of interest was never considered by the
commission, and was never suggested by
you or any other member of the board The
six per cent bonds had still year and a
half to run, and there was no way 10 cali
them IN except by voluntary arrangement
with the holders for an exchange.
8. After the passage by the general as
sembly of the retunding act of April II.
1855, for which the sinking fund commits
/ Sifh W a. IA NV way lNoltlASlbios NO lSIt IL
10 be our duty 10 attempt TO carry
out the retunding of the debt in
the only mode then possible. 10 wit, by
an exchange. Accordingly, by the direc-
tion of the board, the auditor of state
corresponded with number of the large
bondholders for the purpose of aScertaining
on what terms an exchange could be effect
ed. Governor HOadly and one member Of
the board also conferred personally with
Hon. George VI. Parsons, OF Columbus. on
the subject. The result OF this investlga-
ton was that the greater portion of the
persons inquired of declined to exchange
their bonds even for new per cent bond.
shortly after tins Albert Netter, protesting
TO represent large portion of the out
standing debt. came TO Columbus and pro
posed to exchange the entire debt. or so
much thereof as he could obtain, for new
bonds bearing per cent. interest. When
tins proposition was made you were absent
from the city. but on returning you at once
expressed your opposition to 1t, and SubSe-
quently joined with us in rejecting il.
:. The proposition OF Meter and Borg
for the exchange OF the outstanding SIX per
cent bonds for new bonds bearing 3.65 per
cent interest which was afterward accept
ell Dy the commission subject TO the ap-
proVa! OF the governor, was undoubtedly 4
better proposition FOR the state than any
thing which had been offered prior TO the
departure OF Governor Hoadly. Ii Is true
that the proposed S.65 per cent bonds were
10 run 1or considerably longer terms than
haH oeeh talked OF WIN Governor hoaaIy'
but, allowing Tor TINS, the net annual inter
est would Stlli be less Theeorrespondence
OF the board heretofore published. including
all Inc Dlu- received after The nhllgIfN
to the matter by the press. clearly shows that
no exchange could nave 6een made at that
time on any better terms. In fact, Meter
and Berg were probably the only persons
VINO could nave carried out a general eX-
chdhSe, ana Win them the arrangement
was that the new bonds failing due hTst
Slouid De hrst delivered IN exchange Tor
"ld OohdS' so that II they tailed To carry out
'lelI proposition theS WOULD nave received
ule least valuable OF tec new issue
D. Inc result mas ShoWl that II was PROB
AMY mistake 10 attempt tlle feiunuihS OF
| lhe uept py an exchange SO long before the
maturity OF tiie Ola ponds, which al the time
were selling IN The market Tor a con>ldera-
Oily larger premium than the rate OF interest
warranted As soon As the proposed
arrangement Tor an exchange became
known the premium asked for
the Old bonds Immediately ad-
Nahced, ana Tor time was equal 10 the en-
TIRE interest for the time they had TO run.
Inc most Just criticism on our action has
Drth because we dld not communicate TO the
PuDlic each step ot our negotiations, and
bet the policy pursued was absolutely
necessary, Tor an exchange on large scale
was impracticable to make the exchange
directly with the individual bondhoiderS.