Wilmington journal., 1869-02-12

speedily obtained circulation aud credenCe
that our bonds to tia amount Of millions
OF dollars had been exchanged for railroad
bonds and mortgages which were Informal,
detective, invalid and worthless, because
Of non ou-contDrlaity TO tue express aud snc-
nifc requirement Of public law. regard
for the deeply iATolYed interest u the
State seemed - demand a1 lnTeStlGa-
tlnm.
II f:-Gn - Il difference 81 oNlulnn lii re
yarI t. Ejl., wisdom OF generous and 0uni-
ticeat loans at Il time when our Stale san
default Oh outstanding obligations, be-
!ieyed there would D", aud ihIhA there
nov J., uaauinity OF sentimont n1 to the
importance Oi securing sdch al exercise OF
Ruth0r.tv. conferred b. these loan bills, as
thai. il securities take bv the State prove
! worthless. the wort hic5sUess shall not re-
sui. from informaIity Of execution. Acc0r-
I dinghy, prepared and introduced into the
Senate Il resolution c@iUn9 tor Select
committee Of three Senators 10 " ln7sstl-
gate Tie extent and the manner ii which,
If at al, authority to issue certain bonds
had been exercised 10y the treasurer.
The Senator from Rowan, entirely igno-
raat, us he must have been, OF my resolu-
tion, us / was of his, until within g few
minutes OF the introduction Of mine, Of
fered as u substitute joint resolution
which WAS accented as such, and having
passed the two~Houses created the Joint
Select committee whose report is now
under consideration.
These resolutions were more c0mpre-
hensiva than ny own. They called for an
investigation into rnmOra OF bribery and
corruption Of members Of this General
Assembly. During the discussion pro
voked by these resotutiOns [ promised to
"Iocate or <'pG5 my t1o@er upon the
use OF dollars and cents fer the purpose in
dlcated.
Il will be observed that this iuvestga-
tion hai two,fold purpose. one relating
to the exercise of powers conferred upon
State Executive officers, nud the other re
Ia'iug 10 rumoTs of bribery and cOrrup-
ton.
Your attention Is nov invited 10 so much
of tnee evidence as relates TO the first branch
of this Investigation
TIE act to amend the charter Of the Will
!iams5on and Tarboro' Railroad Co. ratlf-
Ell Aug. 18th, 1868, authorized the Treas
urer OF the State, npon certain conditions,
to exchange the bonds Of The State :or those
| Of the Company 10 the amount Of $500 600.
| The bonds OF she Company we're required
| by said act to b. secured by n mort
| gage upon all the property Of the Com
| pany.
Tie Company has received the bonds of
| the S att, but the State has not receiv ed
the Companys mortgage, SIS required by
! the act.
| The Treasurer has accepted what pur-
| ports to be this mortgage, but what III law
cannot be enforced.
| 1t is absolutely worthless, unless, by pG l.
mission of 3 United States civil officer,
which can only be obtained within few
months, the penalties Of violated law are
RENTED.
Tie United States Interna! neyen1e law
requires that it should have upon 1t $500
| OF revenue stamps, and declares that the
| Company, for this evasion of the law, has
| incurred penalty u two thousand dollars
and that the State, for receiving the mort
gage unstamped, shall never be allowed to
Introduce it in evidence. Il is therefore
worth leas than the paper upon which it Is
written.
This nnstamped mortgage was accepted
| by the Treasurer before he obtained the
opinion of the Attorney General. The fact
| that lie took the note Of the company for
amount Of stamps pending sucn opinion,
| does not save the State from the penalty OF
| violated law. [ desire to recur to the same
question in connection with another Rail-
road Company.
The act to amend the Charter Of the
| Chatham Railroad Company was ratified
Aug 18th, 1868. This act authorized and
directed the Treasurer Of the State, upon
| certain conditions, to exchange the bonds
of the Company, to the amount of 81, 600, =
900. As in the preceding act, so in this,
the bonds were required TO be secured by
O. mortgage upon the property 0t the Com
pany. The Treasurer of tho State has
par:ed with the $4,000, 900 III our bonds
bat he has not receivedau enfoycible mort
gage upon the property OF the Company.
Ihe instrument pnrporting TO be mort
gage upon the property OF the Company Is
rendered worthless by the UDj5ed States
| IntCru8! Revenue Law, because Uf the
omission Of stamps, which should hnve
| been affixed to the amount Of 50 coo. The
| testimony OF the Treasurer (see page 6. of
reportj shows that he issued this 50, 900 600
| loan to the Chath4m Railroad Company
on the evening of October 1871 1868, or
| the morning Of October Goth 1868, while
| his letter TO the Attorney General (see page
2S. III. No. H. shows that he did not r9-
quest the opinion Of the Attorney General
| upon the question Of stamps, until No.
yeInber 2S5h, 1868, or thirty-oiue days
| after lie accepted the unstamped So 600, 600
mortgage.
| Tnut opinion wIIl be found OF page 29
marked 8 A No. l." Il is as remarkable
as it is iaconic. | request Senator to read
| it, and TO reflect low sammariiy it disposes
OF a question IN which the interests of the
State are involved &c the amount OF mil.
! lions OF dollars.
Here it is, written OF the 7erY day the
opinion was sought
| STATE or NoRTu CAROLINA,
| ATTORNEY GENERALS OFFICE,
ltaIeigh, n. O., Nog e, les.
| Hon. D. d. jenkins, Public IreUsurer-
| SIR IN nv opinion, the bonds Of the Chatham
| Railroad COMPANY delivered to the State do not
| require stamps, also the mortgage To the State
| by said Road does not req 1lre revenue amps.
| Respectfully.
| WI. II. CoLEMAH,
! Attorney General
| This opinion was Transmitted to tie Sec
retary OF State, with the request to register
the mortgage.
The act expressly required that the mort
! gage should be regtstered-not deIiUered for
Registration, but registered in the office OF
the Secretary of State as one Of the condl
tions precedent to the issue OF our bonds
to the Company. The Company has hac
possession of our bonds nearly tour months
4 4