Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1896-06-24
were approved and he was allowed al

were appTOFcu auu uo Wdo oAo"oo oD
opportunity, that he could succeed il
arranging with syndicate to take oul
bonds and enable US to float the debt
I advised that the opportunity be
given him and the result was mos
fortunate for the State. In my annua
report of October 81, 1898, a statement
of the refunding matter is given anG
all the details of the work set forth.
The agreement with Mr.. Rhind wa
suggested by him and made early ir
November, 1892. It authorized, hin
to open negotiations on either basis
stated below:
"First, to sell the present issue o.
bonds at 95-that is, at par, less
commission of 5 per cent.
"Second, to sell an issue of 20 40
year bonds, bearing interest at the rate
of Al per cent. to net the State par
It being understood as a part of the
agreement that either transaction will
necessarily be submitted to the legis.
lature of the State for ratification, and
we pledged ourselves to recommend te
the legislature the passage of an ac'
ratifying such transaction"
During the month of November, Mr.
Rhind submitted a proposition from
Mr.. French, then president Of the
Manhattan Trust company, on the part
of said company and its associates
It was upon this proposition as a basis
that the refunding act of 1892 was
introduced into the legislature. This
act was the same as that of 1889 and
1891, except that it provided for A
per cent. bonds, instead of 4 per cent
bonds, and they were to be 20 40-yeal
bonds instead Of 40-year bonds and
provision was made In the act for 8
cumulative sinking fund to be derived
from the royalty on phosphate. The
proposition of Mr.. French was to take
20 40. year Al per cent bonds at pa,
and place to the credit of the State In
the Manhattan Trust company $780,.
900 by December 1, 1892; $4,000, ,00t
by January 1, 1898, and any balance
that might be needed by February J.
1893. Unfortunately, Mr.. French soor
afterwards became i'll and died. Du.
ring his brief illness some of his strong
est associates withdrew, having be-
come alarmed at the universal ship
ments of gold from the United States
to Europe, the first decided indication
of the approaching terrible panic Of
1868.
Mr.. Rhind, however, continued bis
efforts and assisted by one or more Of
the associates of Mr.. French succeeded
in organizing a syndicate of New York,
Baltimore, Richmond, Charleston and
other capitalists, of which the ,Balti-
more Trust and Guarantee company,
Robert G.. Davidson, president, was
the agent. This syndicate, after much
correspondence and delay, entered into
a written contract with the State on
the 10Th day of January, 1898, to take
50, 600, 900 of the bonds at par fat, and
were allowed an option on the re.
naming $3,25O,000 until April 1st,
1893, at the same price. On the 9TH OF
March, 1898, the syndicate exercised
the option and an amended contract
was made binding them to take the
entire issue. The bonds were to bear
interest from January 1st, 1898.
Copies of the original and the
amended contracts are on file, also
copies of all the agreements, with the
brokers and the extensive correspond
ence all easily accessible.
The act of 1892 under which the re-
funding took place appropriated the
money in sinking fund for the payment
of commission. Not dollar of this
money was used, and strictly speaking,
no commission was paid by the State
to anybody. The interest from Janu-
ary, to July, 1898, as required by the
contract, was paid (every cent of it) to
the Baltimore Trust and Guarantee
company, or to the subscribers of the
syndicate upon their order. How the
syndicate settled with Mr.. Rhind was
his and their own affairs and one with
which the State had nothing to do.
The State would gladly have saved
this six months interest, but her dan
ger and extremity were such that she
had to pay it, and under the circum-
stances she was glad to pay it in order
to be prepared to meet her debt matur-
ing in July, 1898. She had not the
money in her treasury and was obliged
to sell bonds in advance in order to
raise it. Had an offer to take gold
bonds been accepted, I believe she
would have been forced to pay inter-
est from January to July, 1893, just
the same.
The act of the legislature authorized
the payment of this interest, the con-
tract was sustained by the supreme