The farmer and mechanic. [volume] (Raleigh, N.C.) 1877-1885, 1880-12-23
The 50. $50, 900 Tax Scheme.

When the Legislature meets it should
immediately repeal the Act ratified on
the ,4th March, 1879, authorizing the
Governor to appoint a State Commits
sion Of three gentlemen to negotiate
for a settlement OF what are known as
the IN. &. Railroad Construction
Bonds and leave the class OF Bonds
for settlement on the same terms with
others as equally as honest and wor
thy, and as much entitled to conside-
ration, or let the holders continue their
proceedings in the L. S Court and
take the stock if they can get it. The
Suites stock IN the Roddi IS al the Bout
holders cun act from the State, and the
State is not responsible for anything
according to the old Act authorizing
the Construction Bonds to be issued.
We are willing for the Construction
Bondholders to have what is pledged,
but unwilling to give them more than
was promised and pay them tUtce as
much as other State creditors are pdtd.
Every man who is opposed to sad
ding and burdening the tax payers Of
the State with an additional debt OF
nearly 50, 900, 900, should favor the abol-
i,hment Of that Commission. espe-
cially if it has agreed to the unfaii
terms recently recently announced 2s
proposed by the Bondholders.
When the matter Of appointing a
Commission to settle the Construction
3 md debt was under consideration by
a committee of the Le4i5la ure, Gov.
Jarvis, Treasurer Worth, and others,
told the Committee that if the Com
mission was authorized the ConStruc
ton Bond debt could be compromised
1T 90 cents on the dollar, Tor at % al
the highest tigure,) with a + or D pei
cent Bond. And when one of the Com
mlttemsn proposed to insert III the Act
a proviso that the Commission should
not pay more than s. cents on the dol
lar for the Bonds, the Governor advised
against doing SO as he might be able
to get them at 60 cents. We knOU
that Gov. Jarvis made that Statement.
and we know he will stand by il; and
if Treasurer Worth did not make the
same statement he led the Legislature
to believe that he agreed with what
the Governor stated.
The fact is, the first Section of the
Act authorizing the Commission ex
~pressly says that it is done for the pur-
pose of securing q reduction of the rate
of interest on the Construction Bonds.
The Bonds originally bear six per cent
interest, and the proposed plan (of
Brokers and speculators) for their fun
ding also allows six per cent-not
making any reduction of interest as the
Act contemplated should be done.
Here is the first section of the Act:
Sec. /. That in order to renew and
adjust a portion of the State debt in
Cured to aid in the construction Of
the North Carolina Railroad, and OBJ
tain an extension Of time Of paying the
same and reduce the rate of interest
thereon. the Governor CT the State is
hereby authorized to appoint three
Commissioners for the purpose Of neg
otiating with the holders VI the said
bond. and contracting with them for a
renewal of the said debt ON terms which
NAV be advantageous to the State and
which approved of by the Governor and
Public Treasurer.
Nov, it is reported tina: the Com
mission has agreed to fund the Bonds
with a new State Bond bearing a six
per cent interest, allowing the Con
s,ruction Bond halders 100 cents on the
dollar for a Bond that was begging
ia the market not long ago, at 80, 90
and 20 cents on the dollar, disregard
ing the prime object of tue law in au-
thorizing the Commission, to reduce
the rate of interest on the Construction
Bonds.
The ~exorbitant proposition is made
bv B~ondholders Virginia and New
York Brokers and home speculatorsl.
We do not believe that DIR. Worth
would originate such an ubiquitous
proposition, OF agree to it, or that the
State Commissioners would do so if
they understood, properly, the schemes
of the manipulators and rings which
nave been operating with the Bonds
and trying to saddle our taxpayers
with an additional debt of 81, 80, OOC
at six per cent interest.