The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-02-06

in relation to the placing on the mar
I ket of the South Carolina refunding
bonds in particular and the bond mar
ket generally. Leading bankers and
bond dealers in these various cite
gave their testimony in regard to the
placing Of these bonds, which has been
reported to the supreme court by the
special referee in said case. Not a
single banker or bond dealer examined
sustained the objections urged against
the double tax exemption clause which
had been urged by me, but, on the
other hand, my contention was sus-
tanned by practically ali those who
were examined.
Messrs. John w. Horner, Jr2 and
Robert w. Martin, Of the firm of
William A. Reed & Co.; Of New York
City, testified that 'in our opinion,
such an amount of the bonds described
could not be sold at par, so far as our
knowledge of the market in and about
New York was concerned
Mr.. Fred. G. Boyce, Jr., Of the firm
of Townsend, Scott & Son, of Balti-
more, testified that he expressed the
cpinion to the gentlemen who visited
him in June and now afirms it, that
in his opinion, it will be very difficult
to float four per cent bond under the
act of 1912, for, the reason that there
is no tax exemption allowed to banks,
corporations, etc, who have their cap
ital stock or surplus invested in these
bonds. If at any time in the future
the bonds should be offered
for sale, and his firm is
the successful bidder, they would
expect to sell large part of such
bonds in South Carolina, but under
the act Of 1912, there being no tax
exemption, as above described, the
bouds would not be so desirable to
South Carolina purchasers. With a
tax exemption they are inclined to the
view that the bonds might be ficated,
as this would be very likely TO give
a broader market for them and make
them a more attractive investment
generally
Mr.. Clarence D. Turney, of the firm
of A. B. Leach & Co., of New York
City, in his testimony, concerning the
double tax exemption, said: ANY pri-
ilege which would attach to bond
would naturally increase its STABILITY
and make it a more attractive invest
ment, not only in South Carolina, but
in the New York market, and the more
liberal these concessions are, the more
attractive it would be-
Col. Henry Schachte's Opinion
In addition to the testimony Of
northern bankers and bond dealers,
the testimony of Col Henry s lchte,
president of the Germania Savings
Bank of Charleston, was taken in the
form of an affidavit In this, he sets
out in a convincing manner, clearly
and succincuy the advantages Of the
tax exemption urged by me, and the
reason thereof. He says:
There are about one-half Of tae
State OF South Carolina bonds held
and owned in the city OF Charleston
about one-third OF which is held by
/ the banking interests here. In the
event that the same tax exemption
! should be allowed to the proposed re-
funding bonds, as are allowed in the
present bonds, there would probably
be not more than $1,500,000 in bonds
taken up by the various banks of the
State on account of the liberal tax
exemption. I feel sure that they can
not be refunded at par, at the present
time, without this exemption, and I
also feel sure that a four per cent.
bond, exempt as above, could be re-
funded easily at par
Attached to Col. Schachte's affidavit
is the following letter previously writ
! ten by him in reference to this same
question. do not know to whom this
letter was written, but set in out here
because of the convincing force of