Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1872-03-01
From the Baltimore Sun.
North Carolina State Funds.


The annexed letter from one of the State
Senators of North Carolina is Of interest to
holders Of the debt of that State
RALEIGH, Y, C., Feb. 1J, ST..
In answer to many inquiries in regard 10
the action of the present Legislature in re-
gard to the State debt, l would say that
the only measure that has passed is the act
to authorize exchange of the stocks owned
by the State in the various railroad and
canal companies for the bonds with which
such stocks were obtained, when in the act
of Incorporation such stocks were speclf-
cally pledged for the redemption of the
bonds SO issued if the stocks are not so
specifically pledged thentO take i'll exchange
any bonds Of the State not special tax
bonds, or bonds declared unconstitutional,
or considered to come within the principle
decided in any case. The bonds that will
be taken are all those issued prior to May
25th, 1861, and those issued during the war
for purposes Of internal improvement, (but
the scale of three bonds for one share of
stock will be applied to those bonds issued
on 1St January, 1863, in aid of Chatham
railroad y also all bonds issued since the
war prior to October 1st, 1868, or under all-
thOrity of acts passed prior thereto, and also
under funding act of August 25th, 1868. In
regard to the State stock in The North Car
olina railroad, the party offering to take 20
shares Ono less will be allOWed) must also
in the offer agree to take 20 shares in the
Western North Carolina railroad, eastern
division, and 10 shares in the Atlantic and
North Carolina railroad, and to pay for the
fifty shares so taken, two bonds issued for
the n Orth Carolina railroad, two issued to
the Western North Carolina railroad. I'M
der chapter 106 of laws 1866 and '67,
(Which also contain mortgage Of the stock
of n Orth Carolina railroad,) and one bond
issued for Atlantic and North Carolina
railroad. This may seem hard offer
But we must consider that the bonds for
the North Carolina railroad are not due
until 1888, and the stock cannot be sub
ected for their payment until that time
The Atlantic and North Carolina railroad
If entirely in the hands of private stock
holders could be made profitable road
The Western North Carolina railroad is at
present somewhat embarrassed, bit as the
amount is very small compared with the
value OF the road, arrangements could easily
be made to complete the road to AsheVille
and to pay off the present Indebtedness. |
would suggest a general meeting Of the
holders Of the classes Of bonds issued for
the three roads above mentioned, either in
New Ork or Baltimore, to take the mat
ter into consideration, and advise them inn
mediately to take measures to accept the
terms offered i'll the act. The stock in the
| Western railroad, Fayetteville and Coal
field) is not specifically pledged, and any Of
the bonds l have mentioned in the former
part of this letter will be accepted in ex-
change.
There is little probability that the State
of \ orth Carolina will resume payment of
interest on the public debt for many years
to come. In fact, it is extremely doubtful,
10 say the least, if payment Of the full
amount of interest ever will be resumed
A strong effort has been made in the pres
| ent Legislature to provide for the payment
of Interest upon a compromised debt
This has been badly defeated. | believe
those who accept the terms of this act will
get more for their bonds than will be paid
To any other creditors. The Attorney
General and Treasurer are appointed COM
missioners, and will make due advertise
ment of the time and place at which the
exchange may he made.
In all cases the bonds will be taken at
par, and coupons can be retained or certi-
ticates given for them if surrendered. In
addition to the exchange Of stocks, all cor
| poration bonds held by the State will be
exchanged for State bonds issued 10 such
corporations, and coupons on either side
may be retained to make equality.
j. W. G.
Such of the North Carolina bonds as are
mentioned in the above letter, we under
stand, are bringing ten per cent. more
than the regular quotations for old bonds
| of that State