Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1896-06-10
DETAILS OF THE DEAL,
How South Cardinals Debt
Was Refunded.
WHO RECEIVED The COMMISSIONS ?
The Baltimore CORRESPONDENT Of the
New York Times Complies an
Ugly Story From the
Court Records.
New York Times, June 4.

man, OF South CarOlln8, mas Deen very
free with his criticisms of the national
administration for its manner of con.
ducting bond operations, and in the
recklessness of his rhetorical frenzy has
not hesitated to impute improper mo.
tives to the president and Secretary
Carlisle. In view of these facts little
history of one of his own bond deals
is instructive and interesting.
About $5,250,000 of South Carolina
6 per cent. bonds fell due July l, 1898.
Tillman was governor of the State
then. John Gary Evans, the senator's
closest political and personal friend,
and said to be slated as his colleague
in the senate, was the administration
leader in the legislature, and DR.. Bates
was State treasurer.
The legislature, at its session in 1891
adopted refunding bill, suggested by
Governor Tillman. This provided for
an issue of Sc, 600, 900 per cent. bonds
to fund the outstanding per cents,
and Treasurer Bates and the governor
were appointed commissioners to man
age the matter, in behalf of the State.
The acts of Messrs. Tillman, Bates
and Evans are outlined in the evidence
| in suit developed in this city for the
division of the commissions involved in
the transaction, the brokers and the
syndicate which took the bonds having
auarreled. The action was brought
here because the funds involved were
held by q Baltimore trust company.
The evidence shows that one of the
first steps taken by the commissioners
was to give a monopoly of the entire
transaction to Mr.. Rhind, a broker of
Augusta, Ga, whose name does not
even appear in the commercial reports.
Mr.. Rhind testified that early in 1892
he was approached by Mr.. Evans,
now governor, and asked to place the
South Carolina per cents. He OBJ
tanned the exclusive option on the
entire transaction from Governor Till.
man late in May, the contract being
that he was to receive commission OF
s per cent. on the $4,000, ,0O0-a mat
ter of 100000.
Mr.. Rhind failed to make the trade,
however, and in October surrendered
his option. Then Governor Tillman
and Treasurer Bates took turn at it.
They visited New York and roamed
through Wall street. On returning
home, they declared that per cent.
South Carolina bond would not sell
even at 95, attributing the States poor
credit to the course of Charleston bank
ers and other political opponents of
the State administration.
Mr.. Rhind again was called in to
take the job in November, 1892. He
managed to interest New York bro
ker in it, after having exhausted all
his own efforts and influence. And
here the curious fact may be noted
that Mr.. Rhind testified that he at
first did not approach this broker on
the subject, although making head
quarters in his Office, regarding him as
too small an operator to undertake so
big a trade. Yet this broker is rated
high in the reports, while Mr.. Rhind,
who controlled the option, and was
trying to use it, is not rated at all.
With the assistance of the New
York man, a syndicate was formed,
headed by the late F. o. French, of the
Manhattan Trust company, which
agreed to take $3.50, 900, of AZ per
cent. South Carolina bonds on nomi-
nal basis of par fiat. This arrange
ment fell through when Mr.. French
died.
The New York broker then enlisted
the aid of a Richmond broker, and
the two again went to work, the legis-
lature having met in the meantime
and started its machinery to pass a
new refundipg bill, which, it now ap-
pears, by the evidence of people inter-
ested, was suggested by the brokers,
through Rhind, to Tillman and Evans.
Mr.. Evans was not only the ad-
ministration representative and leader
in the legislature, but he was at the
same time the attorney of Rhind, hav-
ing been engaged in that capacity, ac-
cording to his own sworn statement,
when Rhind was appointed fiscal agent
1t is, therefore, established by un-
doubted and unchallenged testimony
that Governor Tillman not only let out
the job of selling the bonds of his own
State exclusively to one man months
before the time of sale, but permitted
brokers in Wall street and elsewhere
to dictate legislation to his legislature
and allowed paid attorney of fthe pur-
chasing parties to construct and steer
through the legislature the act under
which the bonds were to be issued.
The act provided for s5,250,00O AZ
per cent. bonds, to run 20 and 40 years.
These bonds were to be dated and is
sued July 1, 1898, but they were to be-
gin to bear interest from January l,
1898. In other words, bonus of six
months interest, or 24 per cent,
amounting to $11S,00O, was offered to
whoever would take the bonds and pay
dollar for dollar for them.
The syndicate organized by the
New York and Richmond brokers
agreed to take the bonds at par and to
accept three-fourths of per cent. of
the bonus, amounting to $S9, 900, ma