The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1896-06-10
TiIlman'S Bond Deal.
History of a Peculiar South
Carolina Refunding Plan.
From The New York Times.

From The New York Times.
BALTIMORE. June 3 Senator Till
man, of South Carolina, has been
very free with his criticisms OF the
National Administration for its man
ner of conducting bond operations,
and in the recklessness of his
rhetorical frenzy has not hesitated to
impute improper motives to the
President and Secretary Carlisle In
view of these facts little history Of
one of his own bond deals is instruc-
tive and interesting.
About 5,25O,0G0 Of South Caro-
lima 6 per cent bonds fell due July
/. 1893 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 of the
Legislature, and DR.. Bates was State
Treasurer.
The Legislature, at It's session III
1891, adopted refunding bill, sug-
gested by Governor Tillman: This
o provided for an issue of S6,000,0OO
4 per cent. bonds to fund the out
standing 6 per cents, and Treasurer
Bates and the Governor were ap-
pointed commissioners to manage the
matter in behalf Of the State.
The acts of Messrs. Tillman, Bates
aud Evans are outlined in the evi.
dence in a 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 quarrelled
The action was brought here because
the funds involved we're held by
Baltimore trust company.
The evidence shows that one OF
the first steps taken by the commits.
sioners was to give a monopoly of
the entire transaction to MIR.
Rhind, broker of Augusta. Ga
whose name does not even appear in
the commercial reports. Mr.. Rhlnd
testified that early in 1892 he was
approached by Mr.. Evans, now Gov
ernor, and asked to place the South
Carolina 4 per cents He obtained
exclusive option on the entire trans
action from Governor Tillmap late in
May, the contract being that he was
to receive a commission of 5 per
cent. on the $4,000, ,000-a matter of
$500, 900.
Mr. Rhind failed to make the
trade, however, and in October sur
rendered his option Then Governor
Tillman and Treasurer Bates took a
turn at it They visited New York
and roamed through Wall street. On
returning home they declared that
4 per cent. South Carolina bond
would not sell even at 95, atrributing
the States poor credit to the course
of Charleston bankers and other
political opponents of the State Adj
ministration.
Mr. Rhind again was called in to
take the job III November, 1892. He
managed to interest New York
broker 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
headquarters in his Office, regarding
him.sas TOO small an operator to un-
dertake so big trade. Yet this
broker is rated high in reports, while
Mr.. Rhind, who controlled the op-
ton. 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 +. 0. French, of
the Manhattan Trust Company, which
agreed to take s5,250,00o of 4 IL
per cent. South Carolina bonds on a
nominal basis of par fat. This ar
rangement fell through when Mr.
French died.
The New York broker then enlist
ed the aid of Richmond broker,
and the two again went to work, the
Legislature having met in the mean
time and started it's machinery to
pass new refunding bill, which, it
now appears, by the evidence of the
persons interested, was suggested by
the brokers, through Rhind, to Fill.
man and Evans. Mr.. Evans was not
only the Administration representa-
tive and leader in the Legislature, but
he was at the same time the attorney
of Rhind, having been engaged in
that capacity, according to his own
sworn statement, when Rhind was ap-
pointed fiscal agent.
1t is, therefore, established by un-
doubted and unchallenged testimony
that Governor Tillman not only let