The herald and news. [volume] (Newberry S.C.) 1903-1937, 1905-10-20

the matter II it lay WITHIN MS power
to do SO. When they arrived at Mr..
Zinmerman's home about noon they
were informed that he was at the in
surance office OF Nj. S. L. Miller.
They drove without delay to the office
of Mr.. Miller and were informed that
Mr.. Zimmerman had just left. That
was about I o'clock and it was not
until 4 o'clock that the warrant was
placed in the hands of Sheriff Cole
man, AS soon as the warrant had
been sworn out, the news was made
public, and Mr.. Zimmerrnan's friends
as we'll as the officers Of the law were
all on the lookout for him, but he has
not been seen since the time or about
the time he left Mr.. Miller's Office.
DR.. Zimmerman Hard Hit.
It will be some time before it can
be told definitely in whose admlnlstra-
tons these affairs occurred, but at
present it appears that the Liabilities
will be about as follows:
w. T. C. Bates .. -. - 1900
w. II. Zimmerman =. 1o,5oo
R. H. jennings. 1,4oo
Total. .. >. 80. ..9I2,1oo
To this of course must be added the
interest which will increase the total
amount lost by the State OF South
Carolina and to be recovered on the
bonds,$3,oo2.
It is alleged that the fraudulent en-
tries were made in this wise: A party
having bonds might prefer stocks in
exchange. The papers would be pre-
sented and the transfer made. Then
instead of cancelling the bond the
clerk in charge, apparently, would
take out one of the bonds when there
would be large package and at some
convenient date would put it on the
market as if it were a negotiable in
strument instead of bond whose vail
dfty had been wiped out by the ex-
change. The bonds OF the state are
payable to bearer, just as a bank note
or other currency, and the stocks are
payable to order only.
The interest on the bonds is the
same as the interest on the stocks, but
the coupons on the bonds may be pre-
sented by any one whereas the inter-
est on the stocks is sent in checks to
parties in whose name the stocks are
made out unless the state treasurer
has been notified of the transfer OF
the stocks. For that reason many
people prefer stocks to bonds and
there are issued sometimes as many as
1850 certificates in year.
How It Could Have Been Done.
To show how easily this kind OF
transaction might have been made
without discovery except by accident,
there are on the books Of the state
treasurer bonds of this issue alone
valued at $3,374,ooo and stocks valued
at S2,226,ooo. Since the date of the
issue of these bonds there have been
issued 4,o44 bonds of the denomlna-
ton of $1,000 and 2,134 bonds Of the
denomination of $500. Many of these
bonds have been exchanged for stocks
and therfore it will be apparent that
fraudulent transactions might have
occurred as the employees OF the
treasurer's office are considered above
suspicion and the bonds are not count
ed.
1t is said that when package OF
bonds would be returned in exchange
for stocks it would be very easy to
cancel nine of the bonds and substl-
tute for the tenth cancelled bond
which had been taken up several years
before. The legislative investigating
committee would count merely the
bonds as units without inspecting
them, and if the number corresponded
wirh the number reported exchanged
for stocks within the year, there
would be no suspicion of the fact that
for bond exchanged in 1900 and that
stance in 1895, had been substituted