The Union times. [volume] (Union, S.C.) 1894-1918, 1896-07-03

election, we found capitalists unwil.
ling to make any offer which we could
accept"
Tho South Carolina bondho.ders evi-
. IDENTIFY and most naturally preferred to
have their q per cent. bonds continued,
and ut the session of the Legislature in
1892, nm apparent effort was made by
Col. j. =, Haskell to have them CON
; tiA';ed four years, and this had very
dcmoraiiziDg and depressing effect
ubon the negotiations then pending in
cew York.
After our return from Now York, I
urged on Governor Tillman not to
abandon all effort even for time. If
public effort on our part was to be
abandoned | advised that private eff
fort through IL broker be continued, as
wc had no time to lose, and tho danger
OF failure was great on account of tho
serious difficulties in our way. Mr..
l;hind was confident, if his plans
were approved and he was allowed m
opportunity, chat no could succeed in
arranging with II syndicate to take our
bonds and enable lis to float our debt.
| advised that tho opportunity be
given him, and tho result was most
fortunate for the State. In my an
nunl report of October 81, 1898, n
statement OF the funding matter il
given and all tho details Of tho work
set forth.
The agreement with Mr. Rhind was
suGEcsted by him and made early in
November, !S92. 1t authorized him to
open negotiations on either basis
stated below:
First, to sell the present issue of
bonds nj % thntis, Mt par, less IL COM
mission OF 5 per cent
Second. to sell IN issue OF 90 40
year bonds, bearing interest ut tho
rate of per cent. to net the State
pmr. 1t being understood us n part of
this agreement that either transaction
will necessarily be submitted to tho
legislature of the State for ratification,
nnd we pledge ourselves to recommend
To the legislature the passage of an net
rntityinG such TRANSACTIONS"
During the month ul November.
Mr.. Rmnd submitted rroposition
from MIR. French, then president of
the Manhattan Trust Company, on tho
pnrt or said co!npany and its associates.
II wns upon this proposition rs basis
That thc rcfunding act of 1892 was in
trodncoa into the Legislature. This act
WAS the Same ms that of 1889 and 1891,
rNccp: that it provided for IL per
cent bonds instead of per Gem.
bonds, and they were to be 20 lO-ycur
bonds in0tcnd of iG-ycar bonds and
provision wns made III the act for nc
cumulative sinking fund to be derived
from the royalty ON phosphate. The
proposition Of Mr.. French was to take
H' 70 Year per cent. bonds 1T par
hnd place to the credit Of the State in
the Manhattan Trust company, $780,
600 by December /, 1892; $4,000, 600
by January l, 1898, and nny balance
that might hc needed 10y February !,
1913. Unfortunately, Mr.. French
Eoon afterwards became Ill and died.
During his brief illness some of his
strongest associates withdrew, having
become alarmed nj the universal ship
mcnts of gold from the United Stntes
to Europe, the first decided indication
OF the approaching terrible .T--Hio OF
Mr.. Rhind, however, continued his
efforts and assisted by one or moro OF
the associates OF Mr.. French succeeded
III organizing II syndicate of New
York, Baltimore, Richmond, Chnrlcs-
ton and other capitalists, of which the
Baltimore Trust and Guarantee com
pany. hohcrt G. Davidson, president,
was the agent. This syndicate, after
much correspondence and delay.
entered into II written contract with |
the State on the 10Th day of January.
1898, to take s., OUO, 900 of the bonds !
ut par flat, nnd were allowed nm option
on the remaining $3.50, 600 until |
April LIST. 1893, t the same price. On
the 18th of Mnrh, 1898, the svndicu.c
exercised the ,hon and IN amended
contract was Indc binding them to
tahc the cntirdssu". The bonds were
t" bear intrrdt from January lst,
l~l%,
Copies of "a original anl the amen
de! cnm.ractArc on file, also copies Of
all the aGrcl"ntS, with the b,uilrrs
and the o,.tiSivo correspondence and
nii cn,iiy nca.hl".
The act ClSl2 under which the rc-
funding to. place appropriated the
money thcinking found Cor the uny-
mcnt of "a 'mn.ission. Not dollar
oi this m,:y was used. and strictly
spcakiLS,o commission was paid bv
the Static anybody. The interest
from Inlary, to July. 1898. ns re-
luircd 1.-The contract, was paid leverv
cent of to the Baltimore Trust and
Gunrnns Company. or to the sub
Scrihct,t the syndicctc upon their
order. low the syndicate settled with ,
Mr.. rad was bis and their own nf-
fair n,onc with which the State had :
nothi to do. The State would glad (
~ ha saved this six months interest.
but danger and extremity were
such"t she had to pny it and under =,
the ''nmstanccs she was glad to pay :,
it ifder to bc prepared TO meet her :,