expenses already incurred in passing through the Senate" the bond bill and the settlement bill already mentioned. The bill referring to the Financial Agent authorized the Financial Board to "adjust and settle the claims and demands and accounts, and all or any matters of difference relating to the Financial Agent," to receive from him any balance due by him to the State, and thereupon to give him an acquittance of all demands against him, growing out of any of his transactions as the Financial Agent of the State of South Carolina. The bill "relating to the bonds of the State" provided in substance for the validation of all bonds issued between August 26, 1868, and March 26, 1869 (included in the Treasurer's report of October 31, 1871), with the pledge of the State's "faith, credit and funds" for the payment of the same, and reenacted the provision in each of the designated acts for the levy of a tax to meet the interest on the bonds validated. These two acts, with the act for the issuance of the Blue Ridge Scrip, constituted one scheme for the benefit of John J. Patterson, H. H. Kimpton and the members of the Financial Board-Governor Scott, Attorney-General Chamberlain, Treasurer Parker and Comptroller-General Neagle. The Blue Ridge Scrip was declared void by the State Supreme Court in 1873, and a judgment to the same effect was rendered by the Supreme Court of the United States in 1904. CHARGES OF A REPUBLICAN COMMITTEE. On February 13, 1871, the House adopted a resolution directing that "a committee of three on the part of the House and two on the part of the Senate be appointed to make a complete and thorough examination of all the accounts of the State Treasurer, ComptrollerGeneral, and Financial Agent since their induction into office, with power to send for persons and papers, said committee to have power to appoint a clerk and an expert if necessary; also to submit any part of the results of their examination to the Attorney-General for his official action." The Senate having concurred, the joint committee was constituted as follows: Senators B. F. Whittemore, of Darlington, and S. A. Swails, of Williamsburg; Representatives John B. Dennis and Timothy Hurley, of Charleston, and W. H. Gardner, of Sumter-all Republicans. This committee-styled the "Joint Special Financial Investigating Committee"-after taking much testimony, and after "having fulfilled the duties assigned them, as far as it was possible during the time allowed" for their investigation, made their report to the General Assembly at the session of 1871-72. The matters considered were presented under different heads. The expenditures of the State Government for all purposes, from September, 1868, to October 31, 1870, were reported to have been $4,184,783.42. The adoption of specific appropriations was recommended as necessary for the proper conduct of the Government and the maintenance of the State's credit. Attention was called to the fact that none of the banks wherein State funds were deposited had been required to pay interest, as provided by the statute authorizing the Governor, the ComptrollerGeneral and the Treasurer to select the depositories of such funds. The cost of enrolling and arming the militia was reported at $374,696.59, and of the transactions involved the committee declared that "a glaring robbery of the treasury, for personal ambition and gain, had been perpetrated.” The committee considering that to the sum above stated should be added $5,000 "Adjutant-General's contingent," $8,000 salaries of that officer and his assistant, and $33,463.12, expenses of the State constabulary-reported the total expenditures for the militia, the purchase of arms, the "armed force" and the constabulary, $421,159.71; "nearly enough to pay the interest on the State debt for one year." The Land Commission was characterized as a "gigantic folly" and "one of the most expensive experiments-productive of greater distress and dissatisfaction-that has been legalized or patronized by the State" the committee further declaring that "a more outrageous and enormous swindle could not have been perpetrated and a more subtle manner of concealment perfected." The aggregate of expenditures of the commission, "as far as known," was reported to be the sum of $746,724.07-being $326,723.07 in excess of the amount apparently realized from the sale of the bonds issued for the purchase of lands. The "Advisory Board"-Governor Scott, Comptroller Neagle, Treasurer Parker, Attorney-General Chamberlain and Secretary 12-R. S. C. Cardozo―were explicitly charged with "neglect of duty and unwarrantable violation of law." The land purchased-"the improved and unimproved, eligible or uneligible, the 104,078 acres, sandhill, swamp and otherwise"-was reported to have cost the State seven dollars an acre. The committee represented that the State's relations to the Financial Agent were such that there was no real security against any malfeasance of which he might be guilty-special attention being called to the fact that the only security afforded was in the personal bond of H. H. Kimpton. The board was charged with having made unwise appointments, given imprudent advice, recommended extravagant or ruinous financial operations, and thus made themselves responsible for any loss or damage to the State by reason of the acts of Kimpton. The State debt, October, 1871, was reported at $22,371,306.27, besides $6,887,608.20 of contingent liabilities in the shape of endorsements of railroad bonds. The figures thus given, compared with those given the committee of the Taxpayers' Convention in May, 1871, led to the general belief that in the statements made by the State officials to that committee the figures were "doctored" so as to give out a false report of the debt. Of the debt above stated the committee reported that bonds in the sum of $6,314,000 had been fraudulently and unlawfully issued. No report was made of the transactions of the Financial Agent or of his indebtedness, if any, to the State-the committee recommending that these matters be further and fully investigated. A special committee of the House (C. C. Bowen, Benjamin Byas, F. H. Frost, P. J. O'Connell, W. H. Jones, Jr.) reported that the above noted bonds, in the sum of $6,314,000 constituted an over-issue by which the State had been defrauded, and recommended that the House "take the necessary steps to hold accountable those persons. who have violated the laws and ruined the credit of the State." The impeachment fiasco followed. At this session the General Assembly formally discharged the "Joint Special Financial Investigating Committee." CHAPTER V. THE KUKLUX TROUBLES. The condition of the white people of South Carolina, reference had to the protection which every citizen might rightfully expect from the Government, will have been learned from the account already given of the course of affairs in the three first years of Governor Scott's administration. The State Government was in fact hostile to the white race, and that government, without reference to its personnel without reference to the character of its agents—was doggedly backed by the military power of the United States. In view of the attitude of the negro government towards the unorganized white citizens, some of the latter joined the Kuklux Klan -more generally called by the shorter name, "Kuklux." The Klan was not active at this time. There never was a raid, the single complaint against the Kuklux being that at the election in the fall of 1868 some men-afterwards alleged to be Kuklux-crowded the polls at Rock Hill to prevent negroes from voting the Republican ticket. For this alleged conduct nobody was ever arrested or tried. What the Klan was the Government officials undertook to show by a paper used in evidence in certain trials in the United States Circuit Court in 1871-72, alleged to embody the obligation, the constitution and the by-laws of the Kuklux Klan. The obligation was set out as follows: I, [name] before the immaculate Judge of Heaven and Earth, and upon the holy evangelists of Almighty God, do of my own free will and accord subscribe to the following sacredly binding obligation: I. We are on the side of justice, humanity and constitutional liberty, as bequeathed to us in its purity by our forefathers. 2. We oppose and reject the principles of the Radical party. 3. We pledge mutual aid to each other in sickness, distress, and especially pecuniary embarrassment. 4. Female friends, widows and their households shall ever be special objects of our regard and protection. Any member divulging or causing to be divulged any of the foregoing obligation shall meet the fearful penalty and traitor's doom, which is death! death! death! Constitution. Article 1. This organization shall be known as the Order, Art. 2. The officers shall consist of a cyclops and scribe, both of whom shall be elected by a majority vote of the order and hold their office during good behavior. Art. 3. It shall be the duty of the C. to preside in the order, enforce a due observance of the constitution and by-laws and an exact compliance with the rules and usages of the order to see that all the members perform their respective duties, appoint all committees before the order, inspect the arms and dress of each member on special occasions, to call meetings when necessary, draw upon members for all sums needed to carry on the order. Sec. 2. The S. shall keep a record of the proceedings of the order, write communications, notify other Klans when their assistance is needed, give notice when any member has to suffer the penalty for violating his oath, see that all books, papers or other property belonging to his office are placed beyond the reach of any one but members of the order. He shall perform such other duties as may be required of him by the C. Article 4. Section 1. No person shall be initiated into this order under eighteen years of age. Sec. 2. No person of color shall be admitted into this order. Sec. 3. No person shall be admitted into the order who does not sustain a good moral character, or who is in any way incapacitated to discharge the duties of a Kuklux. Sec. 4. The name of a person offered for membership must be proposed by the committee appointed by the chief verbally, stating age, residence and occupation; state if he was a soldier in the late war; his rank; whether he was in the Federal or Confederate service, and his command. Article 5. Section 1. Any member who shall offend against these articles or the by-laws shall be subject to be fined and reprimanded by the C., as two-thirds of the members present at any regular meeting may determine. Sec. 2. Every member shall be entitled to a fair trial for any offense involving reprimand or criminal punishment. Aticle 6. Section I. Any member who shall betray or divulge any of the matters of the order shall suffer death. Article 7. Section 1. The following shall be the rules of order and any matters herein not provided for shall be managed in strict accordance with the Kuklux rules. Sec. 2. When the chief takes his position on the right, the scribe, with the members shall form a half circle around them, and at the sound of the signal instrument, there shall be profound silence. Sec. 3. Before proceeding to business the S. shall call the roll and note the absentees. |