The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-05-20
CARDINALS BLUE RIDGE BONDS.
How Wesley Refused Frank Moses
Proposition to BE Bribed.

case VIII result either in the state having
to pay a debt of s1.lOOO0O, which has been
hanging over it for twenty-five years, or
openly repudiating what the courts de-
| clared to be just obligation-aud public
sentiment here would not permit the latter
| course.
Six years ago agricultural hall, in the
city of Columbia was Sold the depart
ment of agriculture having been abolished
with the Inauguration of Clemson College
The property was bid in by E. B. Wesley
of New York, who, according to the terms
of the state, paid $1,000 cash, gave bond
and mortgage for the remainder. and had
the privilege of paying all cash at any
time before the expiration of the mortgage.
| Immediately on the perfection of the state,
Mr.. Wesley, through Mr.. Lyles, his attor-
ney in this city, rendered to the state
| treasurer in revenue bond scrip" issued
| by the state, the remainder of the $4,000
purchase money. The tender was refused,
Gov. Tillman had the property instantly
| taken in charge by two armed men, Mr..
| Wesley was refused possession, and the
| state dispensary established in the build
ing. Mr. Wesley sued for possession. He
won his case in the circuit court and this
| decision has been affirmed The purpose
| of Mr.. Wesley is to force the state to
| foreclose, when the validity of the revenue
| scrip can be. passed upon. The state has
constantly endeavored to keep the ques-
| ton of the validity of the scrip out of the
court. as it is practically certain what the
result will be.
The history of the scrip and Mr.. Yves
| ley's claim. is as follows
Some time prior to 1872, the state of
| South Carolina had, under the act of leg
| islature, placed its guaranty upon $4,000
| 900 of the bonds of the Blue Ridge Rail-
4 81 h.
placed in the hands of the officers of that
company and had pledged in the city of
| New York for considerable sums of money.
On the 2nd of March, 1872, the legislature
| passed an act to provide for the redemp-
| ton and cancellation of the bonds so
| pledged and for that purpose authorized
| the issue of $l,S00,000 of revenue bond
scrip" commonly known as blue Ridge
! scrip and the officers of the state under
| took to procure the surrender of the Blue
! Ridge railroad bonds by substituting this
] scrip so issued. Two of the prominent
/ business men of Columbia, both presidents
| OF banks, recognizing the Importance of
| accomplishing the object of the act of
| 1872 so as to retire the large amount of
| Blue Ridge railroad bonds, went to New
| York and sought out Mr.. Wesley, who
! did not then own one dollar Of the secur-
| ity Of the state of South Carolina and was
! in no way interested in the Blue Ridge
| Railroad Company. The South CAROLYN
! ians represented to Mr.. Wesley the great
| importance to the finances of the state to
| have the $4,000, COO of Blue Ridge bonds re-
| tired, and urged him to advance the mon
| ey necessary to do so with an assurance
| that there should be placed in his hands
$l,105,COO of the revenue scrip as collateral
| security for such. Mr.. Wesley did adj
| vance the sum of $344, 925 cash, aud with
this sum redeemed 81, 900 of the Blue
| Ridge railroad bonds with all their cou-
| pons attached. He took chisel and pune
| tured the bonds and the coupons and ship
| ped them by express to the state treasury,
| where they are now, in mutilated condi-
! ton. Mr. Wesley received his $l,105000 i'm
| revenue bond scrip, and has always main
tanned that he held it merely as colat-
| eral. The scrip is now in the vaults of
| the Carolina National Bank in this city,
| where it has been since the transaction
| in 1872 Mr. Wesley has been constant in
| his assertion of a claim against the state
| by reason of his expenditure of this sum
! of $344 925 for her account, but has failed
| to get satisfaction or to have his claim
| submitted to a commission.
| The validity of this script is resisted by
the state upon the technical ground that
| in its form it is open to the objection that
| it constituted bills of credit and that its
issue was prohibited by the constitution
of the United States; and upon that
ground, in 1873, the supreme court of
| South Carolina, the COURTS consisting OF
! Justices Moses, Miller and Wright, in the
| case Of state eX-relatione SILVER VS.. Ha-
| good a. controller general, ruled that
| the scrip was invalid. The question of
! the validity of the scrip had been twice
| before United States supreme court, first
! in the case of Williams VS. Hagood SO
| L. s.. 72, where the court held that the
/ question could not be considered by the
| court because the bill alleged no equity
| in the complainant which entitled him 10
a decision on the validity OF his scrip,
| but il reserved the right to the com
| plainant to bring another action to test
! its validity. Since the retirement Of the
Blue Ridge bonds, through Mr.. Wesley.
| nited States supreme court has held
| them to be valid obligations Of the state.
| SILVER VS.. Hagood, as controller general,
| was not binding upon any holders Of
scrip and in the second suit, to which Mr.
| Wesley was a party, the action was dis
missed, the sole ground that the state of
| South Carolina was a necessary party,
! but could not be forced into court against
| her will under the Eleventh amendment
| of the constitution Of the United States.
| Nowhere on the merit in either case is
| there any expression Of the court that can
be tortured into a depreciation Of the
! claims OF Mr.. Wesley. or OF an expression
| Of opinion that the scrip Is invalid.
A prominent lawyer said to-day: After
a very thorough study OF the whole sub
| Ject my nina becomes strongly convinced
that II the validity OF this scrip is ever
squarely passed upon by the United
| States supreme court Il will be maintain
| ed. and that the state of South Carolina
will be Obliged TO provide for the payment
| Of the entire issue, as Il Is all made re-
celvable for taxes. And II lts validity Is
once squarely affirmed by the United
/ States supreme court there will be no
| means of preventing is being used for the
payment of all taxes due 10 the state. and
! the state could only prevent the wheels
/ Of government stopping by making some
/ satisfactory provision for the retirement
/ OF the entire issue. Mr. Wesley Is repre-
/ scented as a man OF the strictest integrity.
! He could have obtained recognition OF the
validity of his scrip by the use OF the
money"
The gentleman now living In Columbia
was present at an Interview between Mr..
Wesley and Judge r. J. Moses. Jr since
/ governor. but a short while before the III
| Ing OF the decision by the supreme court
! on the case above referred
70. IN which Moses. after
mentioning the fact that Mr.. wes-