Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1904-12-30
Mistellaasuus Reaaing.
BLUE RIDGE BOND SCRIP.

BLUE RIDGE BOND SCRIP.
Something About the Fraudulent Debt
| to Wesley and Others.
| The Columbia State Of last Tuesday
printed the following interesting out
line Of the Blue Ridge Bond Scrip
case, recently before the supreme
court, and decided by that tribunal
In favor Of the state:
Mr.. T. B. Lee, Jr., was the owner OF
piece Of land in Fairfield county In
1901. In paying taxes he offered part
money and part Blue Ridge scrip. The
county treasurer declined to receive
the scrip, Subsequently the lani was
put up for sale for taxes and was
bought by Mr.. II. s. Robinson Of Char
lotte. Mr.. Lee refused to relinquish
possession, contending that he had Of
fered legal tender in payment Of taxes
and he could not be evicted. Mr.. Rob-
inson took the matter to the court of
common pleas Of Fairfield county. AT
the instance Of ]. C. Buchanan, tax
payer Of that county. Mr.. William El-
liott, Jr., appeared as counsel and as
amicus curiae charged that the suit
was an effort . . 'to place upon the
State of South Carolina an indebted
ness Of s1.SO0.000 or more"
| An individual cannot sue the state
without permission Of the legislature,
and It was alleged that the offering OF
this scrip in lieu Of cash was but an
other way Of getting the court to pass
upon its validity, and the suit Is In
effect a suit against the State Of South
Carolina.
| The case was taken to the United
States circuit court and Judge Simon
ton decided In favor of H. 8. Robinson
as against T. B. Lee and in his decis-
lon declared the Blue Ridge scrip to
be invalid. Mr.. Lyles on behalf OF
his client, appealed the case. w. l.
Turkett Of Fairfield was admitted as
party to the suit, being represented
by Mr.. Elliott.
Mr.. Elliott in his brief gives the fol-
lowing historical data taken from
''The PROSTATE State" book written
in 1874 by Mr.. James A. Pike, late
minister of the United States at The
Hague:
"The Blue Ridge Railroad scrip is
another scandal embracing several
millions of pure stealings, The case
Is briefly this: Some years ago char
ter was obtained for railroad across
the southern end Of the Blue Ridge
from South Carolina to Kentucky. II
was a difficult work, and the state
promised 1t aid on conditions. The
road was never made, and these. con-
ditions were never fulfilled, but since
the restoration the state obligations
were authorized to be issued. But
this was not the worst Of 1t. The
sum authorized was s1,800,000. II
turns out that on the strength Of this
authority over s5,00O,O00 Of the scriI
has been, issued. It was rendered
available, to the holders by being made
receivable for taxes, and in this way
thas got spread abroad. The whole
scheme has been for the moment frus-
trated by a decision Of the courts that
the entire transaction Is fraudulent
and void from the start. With $4,000,
600 of this stuff afioat, which the leg
isature can legalize II the members
are paid enough, what hope Is there
that the state will escape liability
for the emission?"
Mr.. E. b. Wesley of Port Chester
N. Y, Is the owner Of over $1,5O0,OO0
Of this scrip. provided that 1t Is
valid with the interest included, and
should one dollar Of the scrip be valid
when presented by another party, Mr.
Wesley would step in and try to get
his scrip validated.
Mr.. Wesley In his affidavit In this
case says:
THAT In the year 1872 he was en-
gagged in business In the city OF New
York, and has been 80 continuously
since that date; that during the said
year 1879, this witness was approach
ed by John B. Palmer Esq. president
of the Central National bank OF the
city Of Columbia, In the State OF South
Carolina, and by L. D. Childs, Esq,
| president Of the Carolina National
bank of the city Of Columbia, in said
state. who requested doponent to ad-
vance a certain sum Of money to take
up a large block Of bonds Of the Blue
Ridge Railroad company Of South Car
olina, guaranteed by the State OF
South Carolina, this witness being Of
fered, as security for the loan desired
to be made, a block Of the certificates
of Indebtedness of the State OF South
Carolina Known as the revenue bond
scrip, issued under the act OF March,
1872, for the purpose Of taking up and
retiring the bonds Of the Blue Ridge
Railroad company, guaranteed by the
State of South Carolina; that witness
after some hesitation, finally agreed
to advance the sum Of three hundred
and twenty-six thousand nine hundred
and twenty-five (326,925) dollars
taking as security therefor the sum OF
nine hundred and seventy-five thou-
sand (975,O00) dollars Of the reVe-
nue. bond scrip, at the par value there
of, said sum being advanced to the
State of South Carolina, to bear inter-
est at the rate of 6 per cent per an
mum, with which sum there was re-
deemed from hypothecation two mil
lion four hundred and eighty-hve
thousand (2,4s5,O00) dollars of the
bonds of the Blue Ridge Railroad COM
pany, with the guaranty Of the State
of South Carolina endorsed thereon
He also cites other instances In which
he WAS given scrip in return for money
advanced.
| FL - Moopobine