Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-12-05

lent On this pledge OF stock, and th'
State could not be injured by selling
the stock now, &c, SC, sc.
The attorneys for the defenants IL
elaborate speeches replied, that the
Court had no jurisdiction to make thi.
sale as asked for; that this was not {
caeo Of pledge nor q case of mort
/. gage--but declaration OF trust that
i'll pledge the possession Of tl4e proper
ty passed to the pledgee-here the
| property had n'oyer been in the bond
holders possession The State retain,
! ed the legal title to the stock, and de.
! clared trust for the benefit of the
! bondholders this being SO, no orde,
| could be made 10 sell unless the State
were q party to the suit. For 40 case
/ can be found where the legal title has
been divested by an order of Court, the
| holder of that title not being party.
Ii the court were to sell, it would be a
| vain thing, The purchaser would
get nothing. The State would
not be barred. Her rights, passed Oh
in her absence, would still be IN exist
ence. The Judgment as to her would
be a nullIty. AS to whether the stock
was pledged to pay the interest, the
counsel urged that the Legislature had
pledged the stock to pay the principal
had pledged the dividends to pay
the interest; if the interest was also
secured by the stock, why had they
pledged the dividends to pay it? The
contract was written, the Court conld
not vary it !; it was expressed that the
interest was to be paid in certain
way. E.rpressio a0eius, cacl"siO ate
yilks.
The interest, when due, is cot part
of the principal the interest is evi-
denced by coupons. These coupons,
suppose, are all cut off. Suppose the
the stock IS sold and the proceeds ap-
piled to pay the detacded coupons as
here asked. In 1888, when the bonds
fall due, the holders Will demand from
the State the stock pledged to pay the
principal. VIII it be any answer to
say notwithstanding the pledge to
You, the stock has been sold TO pay
the interest 2" The I5g,lacietet23o al
uaconrcnicnti" is Il good argument,
saith Coke.
This is not a proceeding IN rem il
is = motion to make Trustee sell, or
IN his place, appoint q Commissioner
to do so. The State is the Trustee
the Trustee is not before the Court
she can't be brought before the Court.
The Constitution forbids it. YOu can
not have your motion unless she is
here and on can't get her here and
If she were here, your suit would be
dismissed, the Court having 10 iuris-
diction.
am aware that in this hasty sketch
] have not done justice to the speeches
that were made; but / have endeavor-
ed to state inteligibly the points made,
on each side, as far as my memory
Serves me. An earnest effort was II lle
to defeat this motion to sell the stcck,
as it is thought that q sale would mil
ltGte against Major VIM. Smiths pur-
poses in the West. We fear, however.
that as the bondholders are regarded
by the Federal Court as the equitable
owners of tie stock, they will inter
fere seriously with the Majors ar
rangements by injunctions, &c, rs
there are runors about Raleigh .ha5
such Will bo their policy.
The decision Il the Court in this
case is anIiously awaited: saie would
sacrifice the property, and leave the
bulk OF the State Bonds unpaid. 1t
might be wiser for the State TO ex-
change the stocks for the bonds and
thus relieve that much OF the State
debt. But this again might in crfere
with Major Smiths plans.
The Self suit will be argued by Rev
erdy Johnson tomorrow. That suit
on the Special Tax Bond IS still more
important to the people than this. by
the way 1 hear that the resolutions
introduced by Mr.. McNeil, OF Robe
son, concerning the Special Tax Bonds
have been favorably considered by the
committee and ordered to be printed.
They will doubtless pass. Rumor
hath il that Joe Turner Will be the
Public Printer for the ensuing year,
the Cons nrvativcs thinking tnat turn
Gbout IS jar Di0D, there Icing two
party organs here. y.