Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-12-03
SOUTHERN FRAUDS.
CarpeLBaggers' Operations i'm NortI
carolina Bonds - MisapplicasioI
OF State Funds.

: Carolina Bonds - IIisapplicasiol
r OF State Funds.
Woodruff d: Clafin's Weeklv Ne,
York; of the Sd inst. contains the follow
ing exposure of the sharp financiering b
the Radical carpet bsggers in North Car
: dina:
The history of fraud and corruption Il
Legislative bodies in this country ha
probably no parallel TO that perpetrate,
in North Carolina. Its General Assem-
bly," elected in 1859, SAT for sixteel
months out of the twenty-four month
for which it was elected, and during tn,
entire session little else than schemes 0
State plumber were discussed or entere;
upon.
The bulk or its frauds was covered ur
in bill for the issue of Especial Ia !
bonds, to the amount of about 81, 0OO,
600. These bonds were ostensibly foI
aiding the railroad improvements of the
State. Some of these roads are not worth
finishing or keeping in order, owing to
bad location and defective construction.
Others are of utility, and in honest hands
would give prosperity 10 the people.
The entire railroad system of the State
is embraced by the following companies ::
The North Carolina Railroad Company.
Charlotte, Columbia and Augusta Rail-
road Company.
Wilmington, Charlotte and Rutherford
Railroad Company.
Western North Carolina Railroad Com
pany.
Chatham Railroad Company.
Northwestern Railroad Company.
The Western Railroad Company,
OF these companies the wilmington.
Charlotte and Rutherford" received 81.
100000 of the Especial tax bonds
The "Western North Carolina" receiy-
ed 81, 100000. ''The Western Com
pauy, 1900, 000-the remainder being
divided out to the Chatham Railroad and
the Northwestern Railroad, and other
Companies.
These bonds were delivered over to the
officers of the company mostly in mass
no security for their application to con-
struction of the roads, or safeguards of
any kind, being interposed to secure the
State from lOss-and strange as it may
appear, this was permitted, if not abso-
lutely sanctioned by the law authorizing
the issue.
HO1O 10dS sltch q laaU obtained? 1t
is creditably asserted in North Carolina
that it was by the collision of Gov.
Holden with one 80 called ''Gen. Little
field, the then State printer, one George
w. Sweps0n, an almshouse manager,
and Messrs. Porter and Fitzhugh, of
the firm of SOutter Il Co., neIO bankers of
the city of New York.
The first plan of operation by those
who united in this swindle, was the tax
ing of a room in the capitol at Raleigh,
by Littlefield and SwepsOn, which was
opened and arranged on the plan of tav-
ern ''bar, " excepting that all was free to
members of the Assembly. A plentiful
supply of costly wines, brandy, whisky,
rum, etc, was supplied. Porter, of Sout
ter & Co., it is asserted, supplied the
funds. And in this manner, according
to Swepson's boast $24O, 900 was paid
out either in '1iquor" or cash brides to
secure the passage Of the law. 1t now
appears that Lttlefield still owes about
$4,000 of his part of the purchase of
the wines and liquors for the ''bar."
The law through, no delay ensued be-
yOnd the necessary time to create the
bonds; they were delivered to the respect
i've companies. Littlefield first abscopdedz
with seven millions of the bonds TO Flor
ida, where with portion of them he
purchased brOken-down railroad of that
State, became President of its company,
and thus clothed with something more of
nominal responsibility than he had hither-
to possessed, made his appearance in New
York, together with Swepson, and An
drew Jackson Jones, another of the CO.
operative railroad Presidents in the swim
die.
Entering thus upon broader field of
finance, their friend and cosdjutor, Por-
ter, became his guide. 1t appears he
advised that they should place the bonds
in the hands of Soutter & Co., his firm.
sud that they would advance money on
them as wanted, and so rig the market as
to cause an appreciation in price. They
were then ranging at about sixty cents on
the dollar; but Porter either did not fairly
estimate the capacity of his house to ad-
vance, or that of his friends TO draw.
Soutter IL Co. became pressed, and Little
field, Swepson, Jones & Co. more press
ing. They were all fond of the good
things of life, and did not stint themselves
in wine or other enjOyments of an expen-
sive nature which flesh is given to. Jones
had his specially" in gambling, and it is
said lost, at single sittings, sums of $780,
900.
Soutter IL Co. could not stand the drain
and began secretly to sell, thus depreciat-
ing the bonds, until they reached down to
abodt 40, at or possibly before which the
other parties began to think the old bond
of honor among thieves was no longer
sacred to the fraternity, and in the hope
of extricating the remainder of the hypO-
thecation, sought aid by inducing their
Wall street friends to buy while they Sc
cretly sold. Very soon these bonds sunk
to less than fourth of their par late, and
entirely out of reach of the first sWindlers.
Of the entire SIT, 900, 900, less than
five per cent. of the amount has reached
North Carolina, and not one hundred
thousand dollars has been expended on
the Western North Carolina road, for
which the seven millions were issued.
A more barefaced act of thieving vii
lainy has never been perpetrated, and all
the parties in it should be fully punished.
They are still at large, although under
some plea Swepson was arrested at Tayl-
oT's Hotel, and placed under bonds TO the
amount of $2J, 900, heing sustained and
made good by a deposit of like sum of
money in Jersy City Bank.
LiItlefeld went to Europe, but il is
supposed he will have TO return or keep
in hiding there. Swepson uses the old
refuge of Drew d: Fisk, Taylor's Hotel
but even this, it is asserted, cannot hold
him in safety for much longer period.
1t will be remembered that James T.
SOutter was formerly President of the
Bank of the Republic; but being a
Southern sympathizer," he fled to Eu-
rope during the rebellion, and there en-
gagged in aiding the Confederate cause,
his love for the SO6th being so great that
he tries his hand at a new form of South
ern expansion.
1t is evident the State of North Caro-
lima Will adopt one of two courses, either
the entire reputation of this fraudulent
issue, or the arrest and punishment of
each party engaged in the frauds, and
thereby possibly recovering such portion
of the stolen securities as will enable it
to escape the disgrace of reputation.
This latter would seem to be the honest
and true one, and New York should lend
the most efficient aid thereto. 1t is full
time she did something to drive from her
business places either those who come
from abroad or those who live here to
practice such swindles and villainies as
this North Carolina transaction holds up
to the world for its scOrn and condemna-
ton.
AS Mr.. John w. Quarles was going
home, about week ago, he met man
named Num-, about four miles north of |
ha To- Tiya uhn i