The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1893-01-25
rSpecial to The News and Courier

Especial to The News and Courier.I
COLUMBIA, January 19.-There Is
no longer any necessity for withhold
ing from the public the cardinal points
OF the refunding Of the State debt, as
far as it has gone. There is now every
reason to say that the entire issue OF
the bonds will be taken, and that the
final contract will soon be signed.
While the contract has not yet been
formally signed the more important
details have been practically agreed to.
There are few minor points to be
submitted to the Baltimore Trust and
Guarantee Company and if acceptable
to them there will be no further delay
in the transaction. Representative
lawyers of the syndicate of capitalists
were in the city to-day and had long
talk with the State Treasurer and
Governor about the matter. The con-
ference was entirely pleasant and all
Of the terms were practically agreed to
here to-day.
The first agreement was made about
two weeks ago, but Governor Tillman
told me to- day that he wants it dis
tinctiy understood that the final con-
tract has nc. eenIsigned, although tits
s his Judgment that there will not be
the slightest difficulty and that the
syndicate will take the entire issue at
the terms agreed upon. The terms
have been made with the Baltimore
Trust and Guarantee Company on
basis of par for $4,000, 600 Of the bonds,
with the privilege Of taking the re-
mainder of the issue at the same
price.
How THE SYNDICATE rs PAID.
The bonus which the syndicate will
receive will be the equivalent Of one
payment Of semi-annual interest on
the bonds they handle. It was found
that the bonds could not all be safely
placed without allowing any costs or
commissions, so it was decided that 1t
would be best to have the refunding
on q safe basis and allow the parties
handling the bonds some return.
This method Of allowing the bouds to
bear Interest from January /, 1898, in
stead Of from July l, 1898, was simply
regarded as 8 method Of allowing the
syndicate to make something out Of
the transaction. While tho pending
contract is for $1,000, 900 Of the new
Is DeIIeved that The entire Issue
will be taken by the Baltimore Trust
and Guarantee Company. This corPo-
ration represents the interests Of the
Lancaster & Willisms syndicate, and
their Interests are the same.
The entire issue Of bonds under the
recent Act is about SIS. s00, 900, and the
pending negotiations affect the entire
amount less about 100000, which has
already been exchange Tor the new
per cent bonds and which in turn
are e1changeable for the new Il per
cent bonds. The 100000 worth OF
bonds will be exchangeable without
any rebate, and under the contract
with the Lancaster & Williams syn
dicate no more of the bonds can be ex-
changed. It will be seen that the syn
cate will, if it handles the entire issue,
receive about $12S, 900 for the work.
A TEST CASE SUBMITTED TO THE sU-
PREME COURT.
There was some question raised as to
the construction ofthe Act, and 80 as
to have this done case was made up
by common consent to have the Act
construed. An injunction was gotten
out by Mr.. John Gary Evans, and the
papers show the exact status Of the
matter. The text Of the application
for Injunction reads:
South Carolina, Richland County-1n
the Supreme Court-Ex parte John
Gary Evans vs.. B. r. Tillman as
Governor and W. T. c. Bates as
Treasurer of said State, defendants.
The petition of John Gary Evans
respectfully showeth unto the Court:
/. That he is citizen and taxpayer
of the State of South Carolina, and that
B. r. Tiliman is Governor and w. T.
G. Bates is the Treasurer of said State
respectively.
2. That at the last session Of the
Genera, Assembly of said State an Act
was passed entitled San Act to provide
for the redemption Of that part of the
State deos known as the Brown consol
bonds and stocks by the issue Of other
bonds and stocks;;' that among other
and various provisions Section OF
said Act reads as follows, TO wit: Sec
fion 6. The Governor and State Trea-
surer are hereby authorized and in
structed to sell the issue Of bonds here
in provided for at not less than par or
face value, and the proceeds thereof
shall be applied to the payment Of the
consolidated bonds and certificates Of
stocks commonly called Brown consols
and TO no other purpose, reference to
said section and the entire Act being
prayed herein as often as may be neces-
sary.
8. That your petitioner has been in
formed by the Governor and Treasurer
aforesaid. and believes the same to be
true, that they have entered or are
about to enter into q contract with
parties unknown to the petitioner,
which contains, among other stipula-
tions, the following, to wit: The said
bonds and stocks so purchased shall
bear date 1st January, 1888, and shall
carry interest from January l, 1888,
payable semi-annuslly; they shall be
sod By the parties Of the first part ard
purcha I'd by the party Of the second