The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-02-25
A FAMOUS CASE.
Latest Move In the Blue Ridge bond
Script Litigation.

Columbia, S. c., Feb 23.-The last stage
in a case in which Sl.SO0oO0 is involved
has been reached. 1t is the most inter-
estlng one that the state of South Car
DINA has ever been connected with. For
six years the legal department of the
state has been sparring with Attorney
w. II. Lyles of this city, representing
E. B. Wesley, retired banker, of New
York, to keep what is known as the Blue
Ridge revenue bond scrip from getting
into the United States Court on its mer-
its. Each of the last two moves by the
state have cost $4,000. In 1854, the Blue
Ridge Railroad Company, which was to
connect with the East Tennessee and
Georgia Railroad, was granted aid by the
state to the amount of 100000. In 1858
an act was passed authorizing the guar
antee by the state of $780,
900 bonds of the company,
and the further guarantee of 100000
from time TO time as the company made
contracts for the completion of the road.
A condition that as soon as any bonds
of the road were Endorsed by the Control
Ter General, the property of the road in
South Carolina, North Carolina, Georgia
ana Tennessee should stand pledged to
the state of South Carolina for the prompt
payment of the bonds was subsequently
repealed, so the state has no security.
These bonds were delivered to the railroad
company ard the financial agent of the
state was authorized by act of the legis-
lature to advance money on them from
time TO time, which he did. When 1t be
came apparent that the Blue Ridge Rail-
road Company could not pay interest or
principal and that the state would become
liable an act was passed directing the
financial agent to transfer the bonds guar
n 10 l.
collateral for the advances made, to the
state treasurer for cancellation and that
thereupon the company should be dis
charged from liability TO the state and
that whenever the company should sur
render the remainder of the 100000
bonds the state treasurer was to issue
$l,SOC,OoO i'm revenue scrip or to give them
q proportionate amount of this scrip for
SUCH bonds as might from time to time
be surrender. This scrip was receivable
for all state taxes
There is evidence of the books of the
state treasurer of "a, 1896 coo in bonds having
been surrendered, for which 81 797. 1852. "a on
revenue scrip was issued. This scrip. Mr.
Wesley, then banker in New York pur-
chasd from the holders. as he says in.
good faith. The state courts have he'd
the issue of scrip to be Illegal and the
government has refused to recognize it as
debt of the state, but ii has not been re-
pudiated.
When Clemson College was established
ana the agricultural department abolished
Agricultural Hal, on Main street. in Co
lumbia, was ordered sod at auction. 1t
was worth $4,000, but no one here needad
1t, so the bid of $4,000 by w. II LIVES Of
this city, for e. b. Wesley, New York
was accepted.
Inc conditions were 5000 cash. balance
IN Two annual payments of 5000 each. or
all cash at option of purchaser. Mr.. Lvles
paid 5000 in currency. gave a mortgage
Tor the balance, and then, saving he had
decided to take up the mortgage. as al
lowed in the terms of the sale. offered
So,VOO In revenue bond scrip. 1t was refus
ed and Gov. Tillman Immediately mt
armed guards in the building to hold II
against Wesley or his agents. The bio
state dlSpensary was then esta bIshed in
the pulidlng. Mr.. Lyies went from court
to court. winning at every step. Last
week the building was put in his hands
py the United States Court, and the dis
pensary board paid him $4,000 for hack
rent. But the bond scrip had not vet
come up on its merits, and il was under
stood Mr.. Lyles intended to get IL into
court in that shape when he offered the
next payment as required by the terms of
sale' nearing this concurrent resolu-
ton was passed by the legislature authnr-
lzihg the sinking fund commission to mark
the mortgage Satisfied" so when Attor-
ney Lyies to-day rendered another nav
ment in revenue bonds the Secretary of
state smilingly intimated that he was
mistaken in supposng he owed the state
of South Carolina anything, and made him
a present of $4,000 by handing him oyer
the mortgage, satisfied" Mr.. Lyles saws
he has provided against this contingenov
1t is understood another sale of the bui,6
ing will be made, in which the scrip win
figure.