The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1896-06-17
TILLMAN'S BOND DEAL.
Alleged History Of the South Carolina
Refunding.
From the NeW York Times.

l EtlCHSa INV
Refunding.
From the New YORK Times.
BALTIMORE, June Ex-senator Till
man, of South Carolina, has been very
free with his criticisms of the national
administration for it's 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 Secre-
tary Carlisle. In view Of these facts
a little history of one of his own bond
| deals is instructive and interesting.
About S., 25O, 900 of South Carolina
6 per cent. bondsfell due July /, 1893.
Tillman was Governor Of the State
then. John Gary Evans, the Sena-
tors closest political and personal
friend, and said to be slated as his
colleague in the Senate, was admins
t~ration leader 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 IS, 900, 900
4 per cent. bonds to fund the out
standing 6 per cents, and Treasurer
Bates and the Governor were appoint
ed Commissioners to manage the mat
ter in behalf of the State.
The acts of Messrs. Tillman, Bates
and Evans are outlinedin the evidence
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 quarreled. The action was
brought here because the funds in
volved were held by a Baltimore trust
company.
The evidence shows that n of the
first steps taken by the Commissioners
was to give a monopoly of the entire
transaction to a Mr.. Rhind, a broker
of Augusta, Ca. 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 late in May, the contract being
that he was to receive a commission
of 5 per cent. on the $4,000, OO0-a
matter Of $500, 600.
Mr.. Rhind failed to make the trade.
however, and in October surrendered
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 a 4 per cent:
South Carolina bond would not sell
even at s., attributing the State s
Door credit to the course of Charles.
ton bankers and other political oppo-
nents of the State administration.
Mr.. Rhind again YVES called in to
take the job in November, 1892. He
managed to interest a New York bro
ker in it, after having exhausted all
his own efforts and influence. Aud
here the curious fact may be noted
that MI. Rhind testified that he at
first did not approach this broker on
the subject, although making head
quarters in his Office, re garding him as
too small an operator to undertake 80
big a trade. Yet this broker is rated
high in the reports, while Mr.. Rhind,
who controlled the option, and was
trying to use it, is not rated at all.
With the assistance of the New
York man a syndicate vas formed,
headed by the late F. 0. French Of
the Manhatten Trust Company, which
agreed to take S., 25O, 900 of At per
cent. South Carolina bonds on a nom
inal basis of par fat. This arrange
ment fell through when MI. French
died.
The New York broker then enlisted
the aid Of a Richmond broker, and the
two again went to work, the Leglsla-
ture having met in tie meantime and
started it's 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.
MI. Evans was not only the admins
~tration representative and leader IN
the Legislature, but he was at the
same time the attorney of Rhind, hav-
ing been engaged in that capacity, ac-
cording to his own sworn statement,
when Rhind was appointed fiscal agent.
1t is, therefore, established by un-
doubted 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 st ct and elsewhere
to dictate legislation to his Legisla,
ture, and allowed a paid attorney OF
the purchasing parties to construct
and steer through the Legislature the
Act under which the bonds we're to be
issued.
The Act provided for s5,25O,OO0 4!
per cent. bonds, to run twenty and
forty years. These bonds were to be
dated andissued July l, 1893, but they
we're to begin to bear interest from
January l, 1893. In other words, a
bonus of six months interest, or y
per cent. amounting to~Osll9,OOO, 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 to accept
three-fourths of l per cent. of the
bonus, amounting to $50, 900, making
the net cost of the bonds to it's mem.
bers about 994. The remaining l?
per cent, or s78, 600, ostensibly went
to Mr.. Rhind, the mai who had been