The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1906-05-11
Must Be Paid For by Responsi.
bic Parties.
GOV ERNOR HEYWARD
Writes aLetter to State Treasurer Jen
nirgs on the Subj ct. Nothing Was
Done by Legislature to Mako
Provisions for Redeemlrg
Worthless Bonds.

VoAth DUuubs
Gov. Hayward Wednesday made
ofloial Inquiry into the matter of the
bonds purloined from the offics of the
State treasurer says The State. The
amount 20 lost to the State approx
mates 500 The fact that pur-
loining had ben going on was dis
covera' >st October and was made
public at that time.
The defalcation then amounted TO
sic. 403 rs The tee, value Of the
bonds purloined was al2,5OO aud the
interest was %, ,90375 Between that
time and January lst the accru I'd in
tarest was $281 25 and to date Is bout
8400 additional.
AS no announcement of any move
ment to pay has been made and as
the interest is inol easing daily, tho
legislature having declined to make
an appropriation to take up thes
WORTHLESS bond certificates, Gov
Hayward thought it his duty to make
some INJURY. The officials responsi
BILE f,r the making good Of the losses
suffered by the State are Capt II Ell
jennings, State treasurer from 1901
to datt DIR. w. III. Tina ernau, from,
1895 to 1901; and DR.. w z. y Bates,
tom 1891 to 1896
Accordingly, CIV HeyHard a..
dressed tue following letter TO Capt
Jennings as there had been some di
oussion as to the manner in whic
Jhe loss should b. prorsted and Dap
JanniDgs is the incu noent Ia this
tfl3G:
May Q 1876.
Mr.. r II Jennings, StaUe Treasurer,
tri n,:rla, ) 9.
M D,ar Sit: / beg leave to cal
your d cen ption To the last annual re.
port Of the comptroller general TO tbe
general assembly relative to an Ia.
vesisation of certain irregularitiesin
The State tressurer's office. This in
vestigation revealed the fact ..;St IL
the exchange of certain Bro wn OonSo)
coupon bonds the State has lost, by
number of fraudulent transactions,
the sum OF 9l2, 500, together witt
90, 903 rs inte rest paid by the State,
making total Of 8l6 403 IS, and
will be glad II you Will inform me
what steps, IL any, have been taken
looking towards the reimbursement
Of the State for the loss incurred. AS
chief magistrate feel 1t my duty t.
call your attention TO this m after,
and desire to have this information
requested In order that may refer
1t 10 the off1ce of the attorney general,
80 that the interest of the State ma,
be protected.
Very respectfully,
d. o. Hayward,
Governor.
In reply to the letter of inquiry
from Gov Hayward, Capt. Jennings
made an official answer In which he
said:
Il am In receipt Of your letter OF
this date In re the matter OF fraudu
lent transactions in exchange of GER
tain Bro an consol bonds Of the State.
You ask what steps, II any, have
been taken looking towards the reim-
bursement Of the State for the loss
incurred.
II answer for myself that l have
arranged for loan with which to
purchase 81, 900 State bond, which
will be deposited in bank to await
the decision of the proper tribunal az
my individual liability as State
treasurer, that with interest being
the amount reported so far as having
been fradulently taken during my ad,
ministratiOn.
II am not authorized to speak for
Or. Bates and DR.. Zimmerman, for
mer treasurers, as they have not In.
formed NE as to their intention.
Neither do know what further ac.
tlon viii be required to take in the
premises, out await instructions from
the attorney general and yourself"
The amount Of the shortage 10 In
cteasing daily and 1t appears that
there should be some way Of securing
1t. Each Of the State treasurers who
has been hurt by the populations OF
some one has stated that his bonds
men shall not suffer and that each
individual will pay the losses incurred
In his administration, with interest.
There is D criminal indictment
against d. Zimmerman, bond clerk,
during the period Of all OF the trans.
actions. On account Of the faot that
Mr.. Geo. Bell Zimmerman, solicitor
from this circuit, is q son OF one OF
the eX. .tr6asurerS, he has been reliev.
ed OF the prosecution by courtesy,
and Solicitor James E. Davis of Barn.
we'll has Oeen entrusted with the case.
Ii is believed that the State treasur.
or and his predecessors Interested In
these proceedings win ask for counsel
to assist Mr. LAWS.
La letter dated Oot. 7, 1905, from
Hon II. FL jennings, State treasurer,
90 the c)mptroller general he called
attention TO what appeared to be an
irregularity IN the matter OF the ex
change Of g certain $1,000 Brown
coupon bond, purporting to have
been Cancelled during the months of
January, 1907, and the amount cover.
cd into q stock certificate. He stated
that, judging from the records, the
State appeared to have lost the
amount of said bond and the interest,
az 4 l-2 per cent, s.noe that date;
and he requested that tho comptrol-
ler general make full investigation
OF the status Of the States aecurl-
ties, as requlle ed b. law. The investi.
gation was Immediately made In per-
son by the comptroller general, assist
ed by 8 II. Garter, bookkeeper, and
j. Fuller Lyon, bond clerk In the
State treasurer'a office. The result
OF tho investigation caused aensa.
tion over tie State. The comptroller