Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1897-05-19
REVENUE BOND SCRIPT.
Something About an Alleged Obligation
of the State.

Something About an Alleged Obligation
of the State.
News and Courier.
The Blue Ridge Bond script con-
cerned in the Agricultural Hall case,
involves so far as is known, about two
millions of dollars. In this day very
little is known about these bonds, for
which Mr.. Wesley is suing. Mr.. Wes-
ley claims that he is legally and moral
ly due the money OH his bonds, and
the United States supreme court will,
no doubt, in time 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 ille-
gal, 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 Railway compa-
ny. This company, which was to con-
meet with the Georgia and East Ten
nessee railroad, had been granted aid
in 1854, to the amount of 81 1000, 900,
upon certain conditions, which, it
would appear by the act of 1868, were
not complied with. This act author
lied the guarantee by the state of ST.
OOO, 900 of the bonds of the company,
and the further guarantee of $3, ,OOO, 600
from time to time as the company
made contracts 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 Carolina, North Carolina,
Georgia and Tennessee should stand
pledged to the state for the prompt
payment of the bonds and interest.
This condition was subsequently re-
pealed, 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.
1t 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 finan-
cial agent with the consent of the
company to transfer the bonds guar
anteed by the state in his hands, as
collaterals for the advances made, to
the state treasurer for cancellation,
and that thereupon the company
should be discharged from all liability
to the state on account of the advan-
ces made, and that whenever the said
company should surrender the remain
der of the S4,O00,O00 bonds, then the
treasurer was to issue to them 81 1,8OO,-
900 in revenue bond scrip, or to give
them a pro rata amount of this scrip
for such of the bonds as might from
time to time be surrendered.
The scrip was receivable for all state
taxes, except taxes for interest on the
public debt.
The revenue bond scrip does not ap-
pear in any official statement of the
recognized debt of the state either un-
der the late Republican or the present
Democratic administration.
There is not even in existence any
official statement or showing of the
amount of scrip that may, from time
to time, have been issued or put upon
the market, and the only entry re-
lating to the matter that can he found
on the books of the treasury is the fol-
towing, namely, 1882, July, in which
the state is debited for amount of rev.
enue bond scrip issued in accordance
with provisions of acts of general as
sembly, approved March 2, 1872:
Amount of bonds surrendered 1896
at 81 900, 81, 1,797 1924"
The supreme court has twice decided
that the issue of this scrip was invalid
and illegal. The scrip is not included
in the provisions of the consolidation
act of 1873, nor any of the funding
acts of the state, no provision has
ever been made for the payment of
same (principal or interest nor is there
the remotest probability that the scrip
will ever recognized as valid obliga-
ton of this state. The account itself,
if the brief entry referred to above may
be called an Act, was formally and final
ly charged off the books of the treasury
and closed by direction of a joint reso-
luton of the general assembly, passed
oath of December, 1878. The scrip
must be regarded as worthless, and
since the decision of the supreme court
the issue has been classed among the
fraudulent transactions of the agents
of the Republican government, which
was in power from 1868 to 1876.