Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-06-27
From the n, y. Sun, June !.
REPUTATION CHEcKMATED.
For rHE TWO C4ROLINAS ANU
LOUISIANA TO PAN.
teN Workers and other Northern
Capitalists about to Undo the Null
lifying Work OF { Ii Carpct-Bag
E.egislatOrs.

Capitalists about to Undo the Nuf-
iifying Work OF Ia e Carpct.Bag
Legislators.
! The bonds of the Southern States
have met with steady sale in New
York among those capitalists of the
country who invest their surplus
change through the Wall street bro
kers. And until lately these securities
we're regarded by the public as good
Investments. there being a general
faith IN the recuperatlNe power OF
those States. So the trade has gone
on briskly, brokers getting liberal
commissions, purchasers getting hand
some impressions of the great seals Df
States, and the States or State officials
getting cords Of greenhacks. Lately
however, th; harmonious feelings
growing out OF this satisfactory eX-
change have been rudely disturbed by
various circumstances, and the public
confidence in Louisiana and North and
South Carolina bonds especially has
been shaken. Officials have become
blinded by their greed to the obvious
policy of paying at least the accrJting
Interest on the State debts, Legisla-
thres have. repudiated special portions
Of those debts, fraudulent over issues
have been made, and i'll some few cases
it is said that bonds Lave been stolen
from the various treasures and put on
the market.
MAKING READY FOR FLIGHT.
A meeting of North Carolina special
tax railroad bondholders was yester-
day held i'll Thos. Denney i Co. :
office, in consequence of the following
facts: .-
North Carolina III 1868 issued III
large quantities bonds for the assist
,lnce of her railroads, and provided for
ID special tax to pay the interest there
ql. The bonds were sold, and about
81 $50, 900 was collected to pay the
Interest. .Abcnt $500, 900 has been
lEaid. The rest of the interest, about
g. 200, 600. is unpaid. The rest of the
1honey collected, about $i00.0O0 has
l,een otherwise appropriated by the
Legislature, while at the same time
the law authorizing the bonds and the
consequent tax was repealed, thus
practically repudiating them.
The Chairman of the meeting, Mr..
Thomas Denny, Jr., made report OF
the action OF Il committee to move III
the interests. Of the bondhoiders. He
said that the case had been submitted
to the Hon Reverdy JoAn,soA ana Mr.
G. Mcdonald, with Whom conditional
arrangements lad been made to prose
calte their claiIns iii the courts. Hsevertiy
johnson haa gwen an oplnlou that the
bonds are legally binding npon the
State, which had no right to appr"-
1niatf, to herself the proceeds of the
special tax which was levied or to re-
)feal the provisions of such levy, or the
legislation under which the bonds were
issued; that the proper officers are
therefore still bound. and may be
compelled to levy the tax provided for.
This can be done by nonresident
holders getting Il writ Of mandamus i'll
the United States Circuit Court for til
district Of that State \ simil&rr Cpi..-
ion of the Hon. Calei, :4->s.!t4G i'll d
parallel case W.. 2,--ssnse,t 10y Nj.
McDonal',
titia s,SEwS OF WAR.
! s'rhe Chairman further said that The
committee were prepared TO receive
! the subscriptions of those bondholders
who are willing to JOIN in prosecuting
| tie necessary suits. The eXr3nst
would be So per bond in al,y c.,rl. anq
! $40 additional in case # success. Ar
| ringements had he2q Ittale to push She
! snit as rs.pi ,lY as possible in order Il
! hare it c6hc1udcd before the meeting
/ OF the State f.egislatlue IN N0ve.aner
and therefore there w4s need o.
i.promptness in subscriptions.
! The ChHir.aai, Also said, on lnforma
| tipE, .hat the amount in the treasury
| I'd the credit of the various special ia,
issues az the time of its misappropria
ton by the Legislature was sufficient
to pay nearly all back interest on tl,e
81, 200, 900 of bonds, holders ~ whiat
he invited to join II tiP AVIS, AMI tha'
tile cemm1tt9p WsApia eIdeavor 10 OBJ
t;rn ludarAs.At ags.iast those moneys
| fo3: ,Al bpnetit of the subscribers.
/ iRespiations We're passed approving
! the action of the committee, and the
meeting adjourned to meet next Wed
/ nsstlay at the same time and place,
LIKE SUIT PEN,},Sxs.
I Zone OF the r14,Asnsnt Wall stree
| firms has :. sni. similar in nature IN thu
Seu,i, Carolina Supreme Court. Th
South Carolina bonds were issued witt
similar provisions to those OF Nortl
Carolina, and the State has similarl,,
failed to levy the prescribed tax.
! Louisiana has practically repudiatet
tile larger portion of her public deb
10y passing an act limiting her 1e.s.s i
Sa5, 900, 900. when in ,2ei.s. j i4et sh
had more thu SO Its4as amount q
dSht s}:J3-alr, siit+s.N II
E'44aEelis Of these three States hav
| been more directly affected by legisla
; tive action than those OF the othe
Southern States. bat the others ar
! some of them seriously affected by tia
mixed condition of affairs in both tA
Legislative and administrative h,anche
: of the State Governments. 49,