The people's journal. (Pickens, S.C.) 1891-1903, 1896-06-18
TII0an'S Bond Deal.
ALLEGED HISTORY OF THE SOUTH CARO-
LIMA REFUNDING.

SPECIFIC CHARGES AGAINST
SENATOR TILI.MAN, GOVERNOR
EVANS AND STATE; TREASURER
BATES
BALTIMORE, June Ex-senator Till
man of South Carolina has been very
Tree with his criticisms of tho national
administration for it's manner Of con-
Quoting bond operations, and in tho
recklessncss of his rhetorical frenzy
has not hesitated to impute improper
motives to the President and Secre-
tary Carlisle. In view Of these facts q
little history Of ono of his own bond
deals is Instructive and interesting.
About s., 25O,O0) Of South Carolina
per cent. bonds fell due July |, 1893.
Tillman was Governor Of the State
thcn: John Gary Evans, the Senator's
closest political and personal friend,
and said to be sl;.tGG rs his colleague
In the Senate, was administration lead
er in the Legislature, and DR.. Bates
was State Treasurer.
The Legislature, at its session in
1871, adopted refunding bill, sug
gested by Governor Tillman. This
provided for an issue Of ST, 600, 900 per
cent. bonds to fund the outstanding 6
per cents. and Treasurer Bates and
the Governor was appointed Commits
sloncrs to manage 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
IN the transaction, the brokers and
tho syndicate which took the bonds
having quarreled. The action was
brought hero because the funds in
volved were held by a Baltimore trust
company.
The evidence shows that one of the
first steps taken by the Commissioners
was TO give monopoly OF the entire
transaction to a MIR. lthind, q 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 4 per cents. He OBJ
tanned the exclusive option on the en-
tire transaction from Governor Till
man latc in May, the contract being
that he was to receive a commission OF
S per cent on the ST, 200, 600 "a matter
of $300,000.
Mr.. I>hind failed to make tho trade.
however, and in October surrendered
his option. Then Governor Tillman
u.
They visited New York and roamcd
through Wall street. On returning
home, they declared that per cent.
South Carolina bond would not sell
even at 80, attribIting the States poor
credit to the course of Charleston
bankers 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
broker in it, after having exhausted
all his own efforts and influence. And
here the curious fact may be noted
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 trade. Yet this broker is
rated high in the reports. while Mr..
!Shind, who controlled the option, and
was trying TO use it, is not rated at all.
With the assistance of the New
York man syndicate was formed
headed by the late F.. 0. French OF the
Manhatten Trust Company, which
cent. South Carolina bonds on n nomi-
nal basis of par fiat. This arrange
ment fell through when MIR. French
died.
The New York broker then enlisted
the aid OF a Rich mOnd broker, and the
two again went tc work, the Legisla-
ture having met in tho meantime and
started its machinery to pass new re-
funding bill, which, it now appears,
by the evidence Of the persons inter-
ested, was suggested by the brokers,
through I>hind, to Tillman and Evans.
MIR. Evans was not only the administra-
lnr nfNfn a iva lc., Il
Legislature, but he was at tho same
time the attorney Of Rhind, having
been engaged in that capacity, accord
ing to his own sworn statement, when
lthind was appointed fiscal ngcnt.
1t is, therefore, established by un-
doubted and unchallcngcd testimony
that Governor Ti,iman 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 the pur-
chasing parties to construct and steer
, through the Legislature tho Act under
which the bonds were to be issued.
The Act prov ided for SIS. 25O 600 A
per cent. bonds. to run twenty and
forty years. These bonds were to be
dated and issued July |, 1893, but they
were to begin. to bear interest from
January |, 1893. In other words, bo-
nus OF six months interest, or q
per cent, amounting to $l1S,0OO, was
offered TO whoever would take the
them.
The syndicate organized by the New
0rk ana ltichmond brokers agreed to
take the bonds at par and to accept
three-fourths of 1 per cent. of the
bonus, amounting to $4,000, making
the net cost of tho bonds to its mem,
bers about 90 Id. The remaining ID
per cent, or $1S,oOo ostensibly Went to
MIR. Rhind, the man who had been
chosen by Mr.. Evans, the administers
tion leader in the Leg islature the man
who had employed Mr.. Evans and
Major w. L. Gary, Mr.. Evans uncle,
as his attorneys, and who had tho on,
tion on the entire bond issue before t.
had been provided for by the Legisla-
ture.
1t does not appear that Mr.. Rhind
took any active part in the organiza-
tion of the syndicate. 1t Is in evidence
that ho horrowp1 5000 from tho No,,