The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-18
BlEASE MAKES CHARGE.
GOVERNOR ASKS SUPREME
COURT FOR A REFEREE.
Chief Executive Charges Sinking fund
Commission With Agreement With
Bond Dealers.

of South Caroline in his return read
before the supreme court yesterday
charged the members of the sinking
fund commission with having made
an agreement with New York bond
dealers to shut out competition after
the supreme court had passed upon
the validity Of the bond refunding act
of the last general assembly. The act
in question provides for refunding of
about $5,50O,OOO Of State bonds.
The members Of the sinking fund
commission are the governor, j. Fra
ser Lyon, attorney general; A. w.
Jones, comptroller general; r. H.
Jennings, State treasurer. The other
members are the chairman Of the
finance committee of the senate and
the chairman of the ways and means
committee Of the house. The late
Senator w. l.. Mauldin Of Greenville,
was chairman of the senate commit
tee and Lowndes j. Browning of Union
was chairman Of the house body.
Several days ago the supreme court
Issued an order requiring the mem
bers Of the sinking fund commission
to show cause why the act for re-
funding the bonds should not be de-
clared unconstitutional and why the
members of the commission should
not be restrained from carrying out
the provisions Of the act. The gov
ernor, accompanied by his attorney,
Fred n. Dominick of Newberry, ap-
peared in the supreme court yester-
day morning. The return was read
by Mr.. Dominick. The court after
hearing the return granted three
weeks for the governor to make fur
ther return.
In his return yesterday the COVER
tire matter to a referee to take tes-
timony and make report.
Mr.. . DeBruhl, assistant attorney
general, representing the sinking fund
commission, and w. T. Aycock, at
torney for the taxpayers bringing the
proceedings, had agreed to submit the
case on printed briefs. Mr.. Aycock
did not believe that the sinking fund
had acted in bad faith. Mr.. DeBruhl
said that a representative Of the New
York bond buyers had come here and
examined not only this act but former
refunding acts thoroughly and it was
this representatives suggestion that
one or two matters in the act had
not been passed on in court and that
an action should be brought to this
end before the bonds were placed on
sale. He denied not only any bad
iaith on the Iart Of the sinking fund
them and the New York bond buyers
as charged by the governor and said
that none Of the bonds had been Of
fered for sale.
The following is a part Of the re-
turn Of the governor:
THAT he believes that said men,
bers of sinking fund commission have
undertaken to make some agreement
or arrangement with certain parties
Ia rf
bonds to be issued by the said sinking
fund commission under the resolution
Of December 90, 1912, for the pay
ment of the bonds and stocks hereto
fore issued and which are to be called
in, mentioned in said resolution as re-
funding bonds and stocks, under the
act Of February 23, 1912. The terms
and provisions OF this agreement or
proposed arrangement are not known
TO this respondent, nor have they been
made known to the public, or what
parties have been negotiating with the
said members of the said commission
for the purchase Of said refunding
bOndS ana stocks before they have
made proposals for the purchase
thereof and that whatever. proposal
may be made by said parties TO the
comptroller general under said reso-
luton will have already been nego-
tiated and agreed upon, thus shutting
out any fair and proper competition
therefor and that as part Of said
arrangement or agreement this pro-
ceeding or action is had to carry it
into effect and to obtain beforehand
and before such proposal is made the
judgment Of this court, so as to eff
fectuate their purposes, which this
respondent AYERS to be illegal ana
contrary To the ,rue interests Of the
state of South Carolina; and this re-