Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1896-06-24

He consulted me as 70 the propr1ety o
doing it, and I did not then and d.
not now see why he should have
refused to do the work that in no wis.
conflicted with his ioficial duties, ant
which did not cost he State one cent
On two occasions, DR.. Bates, in hii
plentitude of caution for what b,
supposed to te for fhe best interest o
the State, refused y sign the modifica
cations of the contract which tht
exigencies of the situation demanded
and I overruled him because I saw il
was our last and ou1y chance.
The agreement 70 do the work fol
the syndicate was made, two weeks
after the last comp{ct was signed, and
he signed that under my persuasion
was associated with him four years
on the terms of tHe closest intimacy
If he is not an HONEST, honorable, con
scientious and hig3-toned gentleman
then we have none, in South Carolina
B. R. TILLMAN.
DIR. BATES, ADDRESS.
The following is DR.. Bates statement
referred to. by Senator Tillman:
To the People of South Carolina:
On June IL, gave to the press q
brief statement explaining the pay
ment to me by the bond syndicate Of
80, 2,031. .25 for extra services to them
during the refunding of the State debt
That document, instead Of being crit.
icised in the light ofpast events, known
of all men, and easily accessible in pub
/ lie documents and newspapers, has
been made the excuse for the most
malignant and outrageous insinuations
and accusations.
Most of them have emanated from
papers opposed to5the Reform move
ment and could be attributed to NAL
ice and q desire to secure political ad
vantage. But as many Reform papers
have been equally unreasonable and
severe in their comments, 1 have deci.
ded to give full history of the refund
ling matter SC that fair minded men
may Judge for themselves how unjust
and cruel all the insinuations and &C.
cusations that have been made against
me and. against Governor Tillman
with whom was associated In the
transaction.
The original refunding act was pass
ed in 1889. came into office Ia
December, 1890, and at the close, Of
the fiscal year, October 81, 1891,
reported officially as follows:
III complied with instructions given
lin the act and had proper notices
inserted in newspapers. I also had
circulars and copies of the act printed
and notices given that they could be
had upon application by parties desir.
ling information and have sent out q
large number of copies. Until July,
1892, the Office is restricted to the
system of exchanging the new 4 PEI
cents. for the brown consols. But
little progress has been made in ex'
changing. Only $2s, ,S96.7O of new 4
per cents. have been exchanged for an
equal amount of brown consols. Un.
| der the rigid requirement of the act, i
am afraid not many exchanges will be
effected"
The legislature amended the act In
December, 1891, at my suggestion,
and provided for the payment of q
commission for placing the new bonds
|if it should be necessary. However,
we were still restricted to issuing
bonds bearing only 4 per cent. interest
and not allowed to sell them at less
than par. -.
In nv annual report of October 81
1892, I stated as follows: "The hold
ers of the brown consols have not
shown their willingness to exchange
them for the new bonds, but seem to
prefer to await their maturity before
deciding what they will do. Negotia-
tions for placing new bonds have not
yet been completed"
During visit to Charleston prior to
October, 1892, I was told by more than
one prominent bondholder and fnan-
cier in that city, whose names l can
give, if necessary, that it was useless
for the State to attempt to refund in
bonds bearing less than per cent. in
terest. One of these gentlemen went
so far as to say that inasmuch as the
State had, under the consolidation act
of 1873, settled with the holders of her
bonds at so cents on the dollar, she
ought not to expect her bondholders
to exchange their maturing bonds for
other than 5 per per cent. bonds.
While in New York prior to October,
1892, I was assured by prominent
dealer in South Carolina bonds that the
State could not float bond bearing
less than 5 per cent. interest and
could not even doat per cent. bond
unless she made some settlement Of the
non-fundable bonds listed OH the stock
exchange, amounting to S., ,965, 900 and
other bonds in which there was inva-
lidity.
Copies of our refunding act and the
best showing of our finances that could
be made were presented in person or
through the mail to such houses as
Drexel, Morgan & Co., but without
result.
We have been criticised for allowing
one man an exclusive option on the
bonds to be issued. We were led to the
adoption of this plan on account of