Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1896-07-15

LOST $135,OOO, BEING OBLIGED
TO PAY INTEREST FOR SIX
MoNTHs-THosE WHO WERE
INTERESTED IN WHAT He DE-
cLAREs WAS A DEAL"
Wy. Times, July 9th.
A prominent business man OF
Augusta, Ca, who is visiting this
city, said yesterday that the facts
in the Tillman South Carolina
bond scandal had not yet been
published.
"I was in a position," said he, ste
know the inner workings of the
entire deal, for 1T was nothing else
I formed one of a syndicate Or
ganized to bid for the issue of
South Carolina bonds, and through
my efforts to secure the bonds
learned that the whole affair had
been manipulated by Gov. Tiilmap,
and that he and other State Off
cials were largely interested in
having the prearranged programme
carried out.
The bond issue authorized by
the Legislature was to be $6,OOO,-
600 Al per,cents. 1 took an interest
in getting up syndicate to make
g bid for the entire issue. The
syndicate was readily organized,
and consisted of a number of
banks of Charleston, S. c., and
Augusta, Ga. 1t was known that
Tillman had declared he did not
want the Charleston banks to get
any of the bonds, because that
city had always opposed him and
his methods.
"To avoid the appearance of the
Charleston banksin the bid, it was
arranged that ne bid should be
made by the Georgia Railroad and
Comp of Augusta
through, c. G. Go>drich, cashier.
,IItllfiis bank was down for 100000
pf ahe bonds if the bid was accept
ed. In Sother words, tho Georgia
Railroad and Banking Company
was acting as agent for the syndi-
cate.
"When we had the bid compile
fed we sent an agent with it to Co.
lumbia. The bid was for the ell
tire $6,000,000 at par. Our agent
saw Gov. Tillman and submitted
the bid. The Governor seemed
confused, but sal | that he could
not receive the bid, AMI that if
anv bid was to be proffcrtd it
would have to be made through
his agent, Golden Rhind OF Au-
gusta.
sour agent said he thought Il
matter of this kind should be set
tied at headquarters, and asked If
the Legislature would receive the
bid. 1T will not said 'i'illman.
1T will do just as 1 say
Shortly after this, when we saw
that we couli do nothing, we sold
to Mr.. Rhind for $4,000 our Char
lesion subscription list, and let the
matter alone.
1.-THE bonds were sold to these
Charleston banks and to others for
$e,OOO,OO0, but the State got only
$5,S65, 900, or at the rate of 974.
AS we had made bona fde and
guaranteed bid of 100 to take the
bonds at once, the State of South
Carolina lost just $135,e00.
"Tbe device by which the trans
action was sought to be covered up
was very cleverly conceived. The
bonds were engraved to bear inter-
est from January, 1898. By the
terms of sale the State did not get
it's money until July, 1898. The
interest coupons for the six months
January to July, were turned over
to the agents and others interested
in the trade. At A per cent. a
year the interest for six months
amounted to 24 per cent, or $780,
600. The State paid interest On
$6,OOO,OOO from January to July,
while it did not get the use of a
cent until July.
"As the entire $6,000,000 was
paid in by the syndicate in July,
Tillman could make the specious
claim that the bonds had brought
par. His blind followers did not
know that their State had paid in
terest on the 100000 for six
mouths before 1T was placed in the
treasury. They had brought par
so far as the buyers were concern
ed, but the people of South Caro-
liaa had to pay $4,000 or a six
months interest coupon, to close
the deal.
"Who got the $4,000 I do not
pretend to say. The men who pur-
chased the bonds did not, and the
only others interested were the
agents and the State officials, The
agents get up such deals for pay
it ls their business and legiti-
mate one-but it is stated that at
least half of it went to some one
besides the agents, and the State
officials are busy denying that
they got any of it.
"One interesting feature of the
matter is that Tillman is accusing
President Cleveland of selling
bonds for less sum than he could
have obtained for them in open
market. Mr.. Cleveland accepted
the best bids. Tillman, on the 9TH
80 Lo,I1 rof,,ol n Hid fo. ir,,p,o