The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1896-06-17
THE BOND DEAL.
AN ALLEGED HISTORY oFTHE SOUTH
CAROLINA REFUNDlNG.

Some Charges Made Against Senator TILL
man, Governor Evans and State Treas
nrer Bates in a New York Newspaper.
BALTIMORE, June Ex-senator Till
man of South Carolina has been very
Z free with his criticisms of the national
administration for its manner of con-
Quoting bond operations, and in the
recklessness OF his rhetorical frenzy
has not hesitated to impute improper
motives to the President and Secreta,
nv Carlisle. In view of these facts a
little history of one of his own bond
deals is instructive and interesting.
About SIS, $50, 900 of South Carolina &
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 administration lead
ser in the Legislature, and DR.. Bates
was State Treasurer.
The Legislature, at its session in
1891, adopted a refunding bill, sug'
.gested by Governor Tillman. This
provided for an issue of Sc, 900, 600 4
per cent. bonds to fund the outstand-
ing 6 per cents, and Treasurer Bates
and the Governor was appointed Com
smissioners to manage the matter IN
behalf of the State. The acts. of Mes
srs- Tillman. Bates and Evans are out
lined in the evidence in suit devel-
.oped in this city for the division OF the
commission involved in the transac'
ton; the brokers and the syndicate
which took the bonds having quarrel
ed. The action was brought here be-
cause the funds involved were held by
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, 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
tsined the exclusive option on the en-
tire transaction from Governor Till
man late in May, the contract being
that he was to receive a commission of
.5 per cent. on the $4,000, ,00o-a mat
ter of 100000. Mr.. Rhind failed to
malHe the trade, however, and in DC.
,tober surrendered his option. Then
sGovernor Tillman and Treasurer
Bates took turn at it. They visited
New York and roamed through Wall
street. On returning home, they de-
.clared that a 4 per cent. South Caro-
lima bond would not sell at 95, attrib-
uting the States poor credit to the
course of Charleston bankers and other
political opponents of the State ad-
,ministratiop.
S Mr.. Rhind again was called in to
take the job in November, 1892. He
managed to interest a 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 head
quarters in his Office, regarding him
rs too small an operator to undertake
30 big a trade. Yet this broker is rated
high in the reports, while Mr.. Rhind,
who controlled the option, and was
trying 10 use it, is not rated at all.
With the assistance of the New York
man q syndicate was formed, headed
by the late F. O. French of the Man
hatten Trust Company, which agreed
to take $3.50, 1000 of Al per cent:
South Carolina bonds on a nominal
basis of par fiat. This. arrangement
fell through when Mr.. French died.
The New York broker then enlisted
the aid of Richmond broker, and the
two again went to work, the Legisia-
ture having met in the meantime and
started its machinery to pass a new re-
funding bill, which, it now appears.
by the evidence of the persons inter-
ested, was suggested by the brokers,
through Rhind, to Tillman and Evans.
Mr.. Evans was not only the admins
tration representative and leader in the
Legislature, but he was at the same
time the attorney of Rhind, having
been engaged in that capacity, accord
ing to his own sworn statement, when
Rhind was appointed fiscal agent. 1t
is, therefore, established by undoubted
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 a paid attor-
ney of the purchasing parties to con-
struct and steer through the Legisla-
ture the Act under which the bonds
were to be issued.
81 The Act provided for $3.50, 900 Al
per cent. bonds, to run twenty and
forty years. These bonds were to be
dated and issued July l, 1893, but they
were to begin to bear interest from
January 1, 1898. In other words a
bonus of six months interest, or 2f
per cent, amounting to $11S,0 900 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 tc
accept three.fourths of one per cent. OF
the bonus, amounting to $39, 900, max
ing the net cost of the bonds to its
members about 99{. The remaing Il
per cent. of $7S, 900, ostensibly wen
to Mr.. Rhind, the man who had beer
chosen by Mr.. Evans. the administra
ton leader in the Legislature; the
man who had employed MIR. Evan.
and Major w. T. Gary, Mr.. Evans