The county record. [volume] (Kingstree, S.C.) 1885-1975, 1897-05-27
THE REVENUE BOND SCRIPT.
Nearly s2,OOo,ooo Blue Ridge
Bonds Involved.
A BOND SCRIPT STATEMENT
Wesley's Claim and the Important
Litigation Which May Grow ou'
of the Agricultural Hall Case.

The News and Courier OF recent
Date saws while the Vandercock case
may be attracting great deal OF atten-
ton, the Agricultural Hall case, which
may in time settle the validity OF the
Blue Ridge bonds, involves nearly two
millions of dollars.
In this day very little is known about
these bonds for which Mr.. Wesley is
suing. Mr.. Wesley claims that ne Is
legally and morally due the money on
his bonds, and the United States Su-
preme Court will, no doubt, IN tlme
have to settle the issue. -,
In view of the vast Importance OF the
questioning of the validity of the bonds
that have been held to be illegal, the
following statement, prepared IN the
| State Treasurer's Office, will be read
with special interest:
On the 18th of September, 1868, an
Act was passed authorizing additional
! aid to the Blue Ridge Railroad Com
pany. This company, which was TO
connect with the Georgia and East Ten,
nessee Railroad, had been granted AID
in 1854, to the amount of 81, 600, 0O0,
upon certain conditions, which, it would
appear by the Act of 1868, were not
complied with. This Act authorized
the guarantee by the State of 81, 900, 600
of the bonds of the company, and the
| further guarantee of $4,000, 600 from
time to time as the company made con.
| tracts for the completion of the road.
| The Act provided that as soon as any
bonds of the road were endorsed by the
comptroller then the estate property
and funds of the roads in South Caro-.
lima. North Carolina, Georgia and Ten
nessee should stand pledged to the
State for the prompt payment of the
bondd and interest. This condition
was subsequently, repealed, and the
State had no security.
These bonds were delivered to the
| company, and the financial agent OF
the State was authorized by the Act to
advance money from time to time on
these bonds, which he did.
It soon became apparent that the
company would not be able to pay IN
terest or principal, and that the State
would become liable, and thereupon an
Act was passed directing the financial
agart with the consent of the company
20 transfer the bonds guaranteed by
| the State in his hands, as collaterals for
the advances made, to the State treas
,, urer for cancellation, and that there
upon the company should be discharg-
ed from all liability to the State on &C.
count of the advances made, and that
whenever the said company should sur
render the remainder Of the "a, 600, 900
bonds. then the treasurer was to issue
to them S1,8O0, 600 in revenue bond
scrip, or to give them pro rata amount
of this scrip for such of the bonds
as might from time to time be surren-
dered.
The scrip was receivable for all State
taxes. except taxes for interest on the
public debt.
The revenue bond scrip does not ap-
near in any official statement of the
Iecognized debt of the State either un.
der the late Republican or present
Democratic administration.
There is not even in existence any
official statement or showing OF the
amount Of scrip that may, from tim to
time. have been issued or put upon the
market, and the only entry relating to
the matter that can be found on the
books of the treasury is the following,
namely, 1872, July, in which the State
| is debfed for amount Of revenue bond
! scrip issued in accordance with pro-
visions Of Act of the General Assembly,
approved March Q, 1872: Amount OF
bonds surrendered 50, S95 at 81, 600,
o. ro- QSo "a
The Supreme Court has twice decid-
ed that the issue of this scrip was In
valid and illegal. The scrip is not in
cluded in the provisions of the Con
solidation Act OF 1873, nor any OF the
Funding Acts of the State, no provision
has evei been made for the payment Of
same, (prir cipal or INTEREST," nor is
there the remotest probability that the
scrip will ever be recognized as valid
obligation of this State. The account
itself, if the brief entry referred to
above may be called on Act, was form.
ally and finally charged off the books OF
the treasury and closed by direction OF
a Joint resolution of the General As
sembly, passed cath Of December, 1878.
The scrip must lie regarded as worth
less, and since the decision of the Su-
preme Court the issue has been classed
among the fraudulent transactions OF
| the agents of the Republican govern