The Union times. [volume] (Union, S.C.) 1894-1918, 1896-06-26
BATES ON o".. .:.....,,.:... "er;..a.| i. b.
BOND ISSUES.
THE STATE TREASURER MAKES
HIS STATEMENT.
He Tells How He Came TO Accept n Fee
ofTwO Thousand Dollars From
the Syndicate.

OF little over 81, ,OUO OF the COM
missions about which there is 80 much
talk. DR.. Bates statement is as fol-
lows:
eyes, it is true that l received from
the syndicate the sum of S2,03125.
This was for acting as their repres-
entative in making settlements with
their subscribers, collecting and re-
mlttlpg their premiums and attending
to their expense account.
''For instance, there were subscri-
beIs iii Charleston for $4,000, 900 of
the new issue which the syndicate had
contracted to deliver in Charleston.
These were to be paid for mostly in
Brown cOnsols, but the holders of the
consols naturally would require tho
syndicate to deliver to them the new
Issue of bonds before they would part
with the possession of their consols.
''Two courses were therefore open to
the syndicate. One was to pay tho
State Treasurer $4,000, 600 in cash. re-
ceive the new bonds, and then exchange
them with the Charleston subscribers.
The other was to secure some repre-
sentative here in Columbia whom the
Charleston bondholders were willing
to entrust with their bonds and ex-
change them for bonds of the new is
sue. l suggested to the syndicate the
employment of n Columbia banker as
their representative, but they preferred
that should do the work, and at the
urgent request of the Baltimore Trust
and Guarantee company, the agent of
the syndicate, on or about the 21st of
March, 1893, [ consented to act for
them, as the bondholders in Charles
ton and elsewhere were willing to place
their bonds in my hands for exchange.
THE public will understand that
there is n vast difference between:
First, my accepting the money
as consideration for making a con-
tract for the sale of State bonds; and
| secondly, my accepting compensa-
tion rendered by the syndicate for
extra services as their representative
long after tho contract had been made.
The first would have been offered, of
course, and accepted prior to the con-
tract, and would have deserved severe
criticism. The second was rendered long
after the contract had been made, and
was for extra services that could not
have been expected or required to rem
der as State treasurer. The work me-
cessitated the keeping of special, diff
ficuit and extensive account, and in
volved much responsibility and trouble.
\ good portion of the amount received
went to pay for extra and special cleri-
cal work.
II am sure reasonable public will
agree that the work did was unofficial,
ard did not conflict with my duties as
State treasurer. Nor will be expected
to render responsible and valuable SER
vices for syndicate of wealthy capi-
tahsts without some reasonable COM
pensation, especially as the compensa-
tion was not paid by the State. Out
side of the So, ,031.25 did not receive
one cent from the syndicate or any one
! else on account of my connection with
the refundine of the bonds.
"W. L. G. BATES, State Treas"
After DIR. Bates had given to the
press the above statement, he received
the following letter from the president
of the Baltimore Trust and Guarantee
company, the former mayor of Balti-
more, which he also gave for publica-
ton:
Baltimore. June 9, 1896.
Hon. W. T. G. Bates, State Treasurer,
Columbia, S. c.:
Dear Sir: I understand that some
question has arisen as TO the propriety
of your having accepted compensation
from the syndicate which purchased
South Carolina bonds in 1898, and we
think it no more than fair to state that
under the rigorous terms imposed by
your then governor, the Hon. Benz. r.
Tillman. it would have been exceed
ingly difficult for syndicate to have
carried ont the terms. of purchase with
out the constnntpresence, in Columbia,
of some competent and Trustworthy
person charged with the duly of per-
forming the various acts of necessary
clerical labor which were necessarily
required. 1t WAS not convenient for
this company, as the agent of the syn
dicate, to have such representative
continually on the spot, and you were
asked SO to act, and the compensa-
ton paid you was only fair, and
SAID payment came from the
syndicate alone, and in no wise,
even remotely, affected the interests
OF your State nor the interests of the
most insignificant of your taxpayers.
The payment for your services was
made upon the volition and by the
sanction of the executive committee of
the syndicate. 1t was entirely proper,
and the engagement of yourself in
such capacity really proved to be q
safeguard to your people, because in
the execution of the clerical duties
which the syndicate required you in
variably manifested an unuttersble
zeal for the protection of the interests
of YOIlr Stnfp and In tho oxn.ai.a