Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-02-09
eLEAsE.JENNINes DISPUTE.
State Treasurer Declares Governors
State ney,ts About 4 oans ara EaIse.


State Treasurer Declares Governors
Statements About Loans are False.
Capt. r. H. Jennings, says a Colum-
bia special to the News and Courier,
state easurer. submitted a long state
ment in vindication of his position
with regard to the borrowing Of $780,
900 for the state The chief point in
volved Is as to who really negotiated
the loan, and whether interest was to
be paid OH balance. The correspon-
dence states that no interest is to be
paid. Capt. Jennings disputes the
credit claimed by Governor Blease for
negotiating the loan.
Il, therefore, deny the statements OF
the governor. They are absolutely
without foundation. Very respectfully,
"R. H. Jennings, State Treasurer"
This Is the way the treasurer con-
cluded the statement of his side of
the recent controversy with the gov
ernor as to certain loans made to the
state In 1911, concerning which a con-
current resolution was recently intro
duced in the senate calling for an in
|vestigation Of charges made by the
governor against the state treasurer.
The resolution was adopted with the
amendment to ask the treasurer to
state his side Of the affair in writing
and that this be spread upon the jour-
nails Of the senate and house Of rep
|resentatives. The treasurer has pre-
pared his statement and this was intro
duced In the senate tonight. Only q
part Of 1t was read, 1t being ordered
printed in the journals.
The statement Of the treasurer is
lengthy and contains copies Of let
ters exchanged between the treasurer,
the comptroller, the governor and GER
tain bankers Of the state. The state
ment Is addressed to the general as
sembly and starts as follows:
II gratefully accept the permission
extended to me to submit this COM
munication to your honorable body In
regard to the money borrowed for the
use Of the state in 1911. In presenting
this matter, I respectfully submit the
entire record to show that no contract
either written or oral was entered into
by which the money borrowed was to
bear interest while on deposit. Pur-
suant to an act passed in 1911 author
izing the governor, comptroller general
and treasurer to borrow for the use Of
the state 100000. II 80 much be neces-
sary, addressed letters on the 11th of
April, 1911, to several bankers who
had expressed desire to handle the
states notes, requesting that they sub
NIT propositions not later than April
II.
Among the bids submitted was one
by Mr.. J. P. Matthews, who is cashier
of the Palmetto National bank Of CO.
lumbia, s. c."
The treasurer then quotes from the
bid Of Mr.. Matthews, in which he Of
fered to lend the state $500.000 or
go to New York with a representative
of the state in an effort to secure the
best possible rate.
The treasurer's communication then
continues:
"On the day fixed, April II, the gov
ernor was absent. Comptroller Jones
and I opened the bids which had been
filed with me.
ION the 18th Of April the governor.
comptroller general and I met In the
governors office. when the bid Of Mr..
]. P. Matthews was accepted and the
contract awarded to him to furnish
$500,000 at 3 per cent interest.
"On the goth Of April four notes for
olUU,UUU edCu dlu lWO hOtCo hOi poVt-
900 each were prepared"
Then follows a copy of the text Of
each of the 100000 notes.
II signed these six notes." continues
Treasurer Jennings statement, "as
treasurer, and delivered them to Mr..
j. p. Matthews, cashier, who agreed
to procure the signatures Of the gov
ernor and comptroller general, neither
Of whom could be seen at that time.
Mr.. ]. P. Matthews receipted to me
for these notes"
Several letters from Mr.. Matthews
and the comptroller general are quot
ed explaining some details OF the loan.
The treasurer's statement ends as fol-
lows:
"Inasmuch as / am the person who
gave out q statement Of the facts In
regard to the money borrowed In 1911
and to which the language Of the gov
ernor was doubtless directed when he
in his message said that any report
or correspondence to the contrary Is
q malicious falsehood and was an ef-
fort to rob me Of the credit due me in
securing this loan,' beg leave to state
that the foregoing records and corre-
spondence sustain the truth OF my
statements which were made not to
claim credit, because at least once be-
fore during my administration and
Governor Ansel's second term the same
amount Of money was borrowed for
the state at the same rate Of interest
and upon better terms in which credit
was not thought Of.
Again, the statement made by the
governor that the money was on de-
posit here drawing interest for the
state Is at variance with the records
submitted.
II therefore deny the statements in
the message Of the governor. They
are absolutely without foundation.
Yours respectfully,
"R. H. Jennings"