The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1896-06-24


600. The statement in the New York
Times that he was offered per cent:
on Sc, 100000 of per cent bonds IA
months prior to time Of issue is not
true. After some months spent ln
New York. Mr.. Rhiud failed 10 his
efforts and reported that he did not
think it possible for the State to float
bond at par bearing less that 4 J per
cent. Interest, and that South Carolina
6 per ceut. bonds we're then selling at
95 cents on the dollar.
Ga September 5, 1892. Col Mike
Brown, OF Barnwell. s G., was grant
ed an option. The commission allowed
iu this agreement was per cent He
also failed 10 his efforts and reported
that u per cent. gold bond could be
aoated at par
During the month of October. 1892.
Governor Tiilman aud myself visited
New York and remained there some
weeks trying to induce capitalists to
take the issue OF bonds then provided
for. We did not succeed iu our efforts
Governor Tillman. in ao interview
published in the newspapers soon after
his return from this visit from New
York, said f:
There is strenuous effort being
made by the holders Of the old fraudu-
lent bonds to force the State 10 some
sort of recognition of their claim aud
some Of our own people ia Charleston
are 10 conspiracy with New York sharks
who eatteued upon the misfortunes of
our people in the reconstruction period.
Owing to the virtual cessation Of busl-
cess, produced by the Columbus cele-
bration and the feeling Of unrest and
distrust which exists because of the un
certainty as to which party will be
victorious in the coming election, we
found capitalists unwilling to make any
offer which we could accept
The South Carolina bond holders evi'
IDENTIFY aud most naturally preferred to
have their 6 per cent bonds Continued,
and at the session CT the Legislature ip
1892, an apparent effort was made by
i Col J G. Haskell to have them COZ
tinued four years, aud this bad very
demora!iziog and depressing effect
upon the negotiations then pending 10
New York.
After our return from New York, |
urged Governor Tillman not to aban-
don all effort even for time. If pub
lie effort on our part was tobe abandon
ed l advised that private effort through
broker be continued as We had DO
time to lose and the danger Of failure
was great on account of the serious diff
6culties 10 our way. Mr.. Rhiud was
confident, if bis plains were approved
and be was allowed au opportunity.
that he could succeed 10 arranging with
asypdicate to take our bonds aud enable
US to float the debt I advised that the
opportunity be given him aud the re-
suit was most fortunate tor the State. ln
my annual report Of October 81, 1893,
statement of the refundug matter is
given and all the details Of the work
set forth.
The agreement with Mr.. Rhiud was
suggested By him and made early in
November, 1892 1t authorized him
to open negotiations on either basis
stated below:
First, to sell the present issue Of
bonds at 95-thas is, at par, less q
commission of 5 per cert.
Second, to sell an issue of 20 40
year bonds, bearing interest at the rate
Of u per cent. to net the STATE par.
It being understood as part of this
agreement that either transaction sill
necessarily be submitted to the lcglsa-
lature of the State for ratification, aud
aud we pledge ourselves to recommend
to the legislature the passage of an act
ratifyiog such transaction.
During the month of November,
Mr.. Rhiod submitted proposition frou
Mr.. French, then president of the
Manhattan Trust company, on the part
of said company and its associates. 1t
was upon this proposition as basis that
the refundiog act of 1892 was intro.
duced into the legislature. This act
was the same as that of 1889 and 1891,
except that it provided for J per cent.
bonds instead Of per cect. bonds. and
they we're to be q, 40-year bonds in-
stead of 40.year bonds and provision
was made in the act for cumulative
sinking fuud to be derived from the
royalty on phosphate The PROPOSE
ton of Mr.. French was to take 20 40
year 4a per cent. bonds at par and
place to the credit of the State in the
Manhattan Trust company, $3.50, 900
by December l, 1892; 100000 by
January l, 1898, and any balance that
might be needed by February l, 1898.