Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-11-28

Rutherford Railroad, $4,000, ,O0(
Western n. {. K. r.. Eas-
tern Division.l .13. OO(
Western \. c. Ii. T., Yves
tern Division.y 6,367, ,0Ot
Western Il. r., (Coaliields,y 1920. OO(
Williamson and Tnrbor0
r. r.. Do. .nOC
Atlantic. Tennessee and Ohio
z. r., Contatanainr,t I47, ,00C
! SiI. .4O7. .OOC
OF the above the first million Of dol
: lars of bonds issued TO the Whining
! ton, Charlotte and rutherford II. Il.
Co, were sold, it is said, at about fifty
| cents in the dollar. and the proceeds
! were used in paying the debts OF the
company contracted on construction
| account, but the residue. about ~,
900, 900, were sold At heavy sacrifice
at almost nominal prices, and the
! company derived little benefit from
j them. The same may be said OF those
! issued for the Western y. c. Il. r..
| Co. AT any rate but little work was
| done on the road from their proceeds.
/ The bonds for the Wiiliamston and
| Tarboro X. L. Co, were sold at better
rates, but as said above, the State has
| lost its entire investment. The Yves
tern Goal Fieldsl Il. K. Co., derived
no benefit worthy Of mention from the
81, ,}2O, 900 issued for that Company
The foregoing statements sEOw that
the experience OF the State in Rail
road and Navigation enterprises has
been unfortunate with one exception,
the North Carolina Railroad Company.
Even this was for many years non-div-
idend paying. Practically as to the
rest of the debt except that contracted
on account of the Insane Asylum, the
State has nothing whatever to show ex-
cepJ Whatever general increase of
property has been made by the partial
construction OF the works
Such general improvements III the
valne of property III the State does not
exist. The valuation OF the real estate
Of North Carolina i'll 1860 was III round
numbers S97, ,67O,000. In 1872 it was
in round numbers $50, 100000. am
unable 20 give comparison IS TO per-
sonal property because it was not taxed
according to its value until 1868, but l
think as the total valuation of real and
personal estate in, 1872 was 1923, 800, 900
there has been similar retrograde as
to both,
I have gone into this matter in such
detail because those who sneer at our
not paying interest on the public debt
ignore the facts of our situation.
Omitting special tax bonds altogeth-
er, the interest on the rest of our debt,
supposing our accrued interest to be
funded, would be S1,406, GG3 % per
annum.
To this add the expense OF support
ing the State Government and it will
be necessary TO raise 81 800, 600 per
annum, or ] and 3-5 per cent of the
real and personal prot ertv. Add ali
amount Cor county taxation equal to
that for State Government expenses.
and we have outside the towns aud
cities, , lilo per cent of our property.
And in many of the cities and towns
the levies for municipal purposes IRE
as large, if not larger. Now add rs
the holders of special tax bonds pro-
pose a tax of 1856. 600, or : of l per
cent on the property and we have
grand total Of and $40 per cent.
1t is manifest that our people can
not and will not pay such enormous
levies. Any attempt. to enforce it
would result in total reputation.
Even If any General Assembly
should vote levy at present, even
emitting special fax bonds, the people
would reverse their action at the next
election.
Tho most feasible plan for settling
the question Of the puhlic debt is to
authorize the issy,e of new bonds. with
Il tax levied in the act for the pay
ment Of the interest. holders OF bonds
of the State II be allowed n surrender
the same and receive the new L1nds at
such rate by way Of o0Diprorlise as
might he prescribed hy The General
Assembly. | would respectfalis : sug-
gcst that 0n.- Of the new bonds be Of
fercu for two OF the old or antc-war
bonds, and those issued to fund the
interest OF the same, of like dcnomina-
tions-tor three OF all other bonds is
sued since the war, except special tax
bonds. As 10 the latter, let q commits
sion he appointed, whose d1tY it shall
be To estimate what portion of the pro-
cccds went iuto uur public works, and
report to TIN" General Assembly. Then
the Assembly can declare valid IL part
OF the special tax bonds, proportiOned
to such amount realized.
OF coIlcse If any creditor should pre-
M ~ No'i1t lhS I'ioi'OSit ihtNltsAtSu
and take his chances for hettcr terms
hereafter he cnull ,ic SO.
But am inclined to think that :gtcr
a full explanation ot ihc poverty OF The
STATE, most, If not All. would enter into
the arrangement.
| earnestly hope sume plan will be
carried into effect. greatly fear that
loug"r delay will result i'll entire repu-
oiation by iractiois ut least. Already
such II policy is advocated by men of
influence, and there is danger that it
will become popular Prompt action
only viii uefeat it.
I learn by the public prints tiat the
Auditor and myself are threatened with
suit by the holders OF special tax
bonds. This would be in effect a suit
against II sovereign State, prohibited
by the Constitution Of the United
States. 1t will be resisted OF course
to the last extremity am informed
that the Governor and Attorney
General have full power to employ
counsel in such defenCe-if not re-
commend that such power be granted
by the General Assembly
That the State shall pay thee Londs
III full-nan: or which were fraudu-
lently sold by tho State agents, nearly
oil under circumstances which am0nn-
ted to notice to prudert men not to
buy, cannot be entertained, in my opin-
ion. for Il moment.
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