Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1911-01-10
THREE C'S BONDS.

THREE c's BONDS.
The supervisor and board of COM
fronted with the task of carrying
through this year the biggest financial
transaction the county has had occa-
sion to make in the last twenty-fi five
years. The transaction referred to is
nothing more or less than the refund
ing Of the township bonded indebted
ness, amounting to at least $134,40C
and possibly more.
The bonded Indebtedness referred tc
is that incurred by the townships OF
York Catawba and Ebenezer in aid OF
the Charleston, Cincinnati and Chicago
railroad. 1t may also devolve upon
the York county supervisor to refund
the bonds issued by Cherokee town.
ship, then in York, but now in Cher
okee county. The settlement of this
question, however, will depend upon
the wishes Of others more deeply con-
cerned.
The story of this debt runs back
twenty five years. The details OF II
are more or less familiar to men OF
toned to inform themselves as to cur
rent events; but to the younger gen.
Grafton most of it Is new. About the
only thing that the average taxpayer
of Catawba, EbeneZer and York town
ships between the ages of 21 and 45
knows, is that he has been paying this
tax every year for the past "a years
and there has not been much use In
asking what it was about for the rea-
son that he would have to continue to
pay the tax all the same.
But the debt Is now coming due and
it has to be paid. OF course, the
county could not think Of raising the
entire amount in cash. There Is
small sinking fund that has been ac-
cumulating during a number Of years
as the result of a law passed through
the efforts Of Hon. j. S. Brice, when he
was in the senate; but as that sinking
fund, however much 1t will help, does
not amount to any considerable part
of the whole debt, new bonds will have
to be issued to pay up the big balance.
The original debt was $4,000 In
Cherokee township; $4,000 in York
township; $4,000 in Ebenezer town
ship, and $4,000 in Catawba township
In all the townships except York, the
bonds were issued May l, 1886, and
will fall due on May l, 1911, right upon
us. The York township bonds were
not issued until April l, 1887, and will
not fall due until April 1 of next year;
but in order to save time, the super
visor will no doubt ask the delegation
in the general assembly to at once give
authority for refunding the whole is-
sue. In the case Of those bonds near
est due, there is certainly no time to
lose.
Although the original amounts In the
different townships were as stated, The
Enquirer would not like to say just
what are the amounts due. 1t Is GER
tain that they are no more; but up TO
the time Of the preparation of this ar
ticle there has not been opportunity to
ascertain exactly. There is no trou-
BILE, of course about getting exact in
formation. 1t is only matter of care
full inquiry and a little more or less
tedious calculation, but the information
we are giving is correct as far as II
goes, and close enough to actual hg-
ures for all practical purposes.
After the bonds had been voted and
issued, they were placed in the hands
of the Boston Safe Deposit and Trust
company, to be held pending the COM
pletion of the contract of the Massa-
chusetts and Southern Construction
company to build the railroad and put
it in running order through the town.
ships named. BY the time the railroad
was completed, or at least before the
bonds were delivered, the lawyers
butted into the situation and COM
menced litigation that extended over
a number Of years, and finally resulted
in some sort of a compromise, that
was generally held to have saved the
townships interested the sum OF 1884,
900.
OF this $4,000 part was included in
Cancelled bonds and a part in Cancelled
past due coupons; but out of the $54,-
900 there came Of course some $4,000
or more of litigation expenses, includ-
ing counsel fees, etc.
The first compromise effected was
that involving the $4,000 bonds issued
by Catawba township between the
county commissioners of York county
on the one hand and w. K. Blodgett
of Boston, Mass, on the other hand.
At the time of this compromise, there
was in force a judgment against the
township for $4,000 on account of past
due coupons, the interest that accrued
from the date of the issuance of the
bonds up to January l, 1890 BY the
terms of the compromise, Mr.. Blodgett
agreed to refund this interest and to
shave the original debt to 100000. 1t
was agreed that the $4,000 of bonds to
be surrendered be left with the Bos-
ton Safe and Deposit company for a
period of ten years, and If at the end
of that period there had been no de-
fault in interest, this sum would be
surrendered to the county commission
ers for cancellation. Five thousand
dollars of the 100000 was deposited in
South Carolina as indemnity against
the $4,000 of interest that under the
agreement was to be Cancelled. The
understanding was that the total
amount saved to Catawba township by
the compromise was $23,966.42. 1t was
necessary for the commissioners to
levy that year seven mills on the taxa
BILE property of the township to pay the
interest remaining due along with the
interest that would accumulate up to
January 1, 1892.
The Ebenezer township compromise
resulted in q total saving of s5,639.94.
including the cancellation of 20 per
cent of the original debt. The COM
missioners found 1t necessary to i'm
pose a mill levy to square up past in
debtedness and start with a clean bal
ance sheet on January l, 1892. This
compromise was effected July 6, 1891.
The York township compromise was
not effected until September 25, of the
same year and it was not quite so ad-
vantageous as in the case of the other
townships. Mr.. Blodgett claimed that
s25 900 of these bonds had passed out of
his possession and he could not rebate
the accrued interest on them. He did,
however, rebate the interest that had
accrued on $50, 900 up to January l, 1889,
and 20 per cent Of the whole $4,000
debt, leaving 100000 still due by the
township. To square up the accrued in
terest, the commissioners found 1t nee
essary to impose levy of 81 mills.
The general conditions OF the COM
promise in the case of York and Ebe-
nezer townships were the same as in
the case of Catawba, it being stipu-
lated that $4,000 of the bonds that
were to be Cancelled in the one case and