In December, 1802, Whitney negotiated the sale of his patent-right with the State of North Carolina. The Legislature laid a tax of 2_s._ 6_d._ upon every saw (some of the gins had forty saws) employed in ginning cotton, to be continued for five years; and after deducting the expenses of collection the returns were faithfully passed over to the patentee. This compensation was regarded by Whitney as more liberal than that received from any other source. About the same time Mr. Goodrich, the agent of the company, entered into a similar negotiation with Tennessee, which State had by this time begun to realize the importance of the invention. The Legislature passed a law laying a tax of 37-1/2 cents per annum on every saw used, for the period of four years. Thus far the prospects were growing favorable to the patentees, when the Legislature of South Carolina unexpectedly annulled the contract which they had made, suspended further payment of the balance, and sued for the refunding of what had been already paid. When Whitney first heard of the transactions of the South Carolina Legislature, he was at Raleigh, where he had just completed a negotiation with the Legislature of North Carolina. In a letter written to Miller at this time, he remarks: "I am, for my own part, more vexed than alarmed by their extraordinary proceedings. I think it behooves us to be very cautious and very circumspect in our measures, and even in our remarks with regard to it. Be cautious what you say or publish till we meet our enemies in a court of justice, where, if they have any sensibility left, we will make them very much ashamed of their childish conduct." But that Whitney felt keenly the severities afterward practised against him is evident from the tenor of the remonstrance which he presented to the Legislature: "The subscriber avers that he has manifested no other than a disposition to fulfil all the stipulations entered into with the State of South Carolina with punctuality and good faith; and he begs leave to observe further, that to have industriously, laboriously, and exclusively devoted many years of the prime of his life to the invention and the improvement of a machine from which the citizens of South Carolina have already realized immense profits, which is worth to them millions, and from which their prosperity must continue to derive the most important profits, and in return to be treated as a felon, a swindler, and a villain, has stung him to the very soul. And when he considers that this cruel persecution is inflicted by the very persons who are enjoying these great benefits, and expressly for the purpose of preventing his ever deriving the least advantage from his own labors, the acuteness of his feelings is altogether inexpressible."