New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-05-01
THE NORTH CAROLINA RAILROAD BONDS

AN EFFORT TO BE MADE TO COMPEL THE STAT" III
| PAY THE INTEREsT-HIsToRY OF THE BONDS
trRoN AN OCCASIONAL CORRESPONDENT or THE TRiBuNkl
! RALEIGH. n. c., April 29.-The decision OF
the sunrene Court of the United States in the virginia
cases has created great anxiety in this state con-
! cerning the future disposition of the spech oaA
bonds The Constitution framed by the Convention t""'
was called into existence by the Reconstruction Ac
was ratified by people on April IL lsoS anu ihon
bers of the Legislature were elected al tue SAINT ''
three-fonrths OF being Republicans Ihis ConSu-
tution was approved by Congress and under Jus pro-
visions the State readmtted into the uhloh' oeo
ton OF Article " OF this Constitution twcn Is hso
Section OF Article V. OF the Constitution OF 1870 %
| follows:
Until the bonds Of the State shall be at the General
Assembly slall have no rover 60 contract any ne"
debt or pecuniary obligation IN behalf oil Tue otaie
vasion OF inst,rrecon unless shall in the same bl
levy "A special pay the interest apluay. At Wy
(eneral Assembly sua have no power 10 give or Gnu
tie credit of the state In aid OF any peHoI
corporation, except 10 aid In the OF sr1 Of
this Constitution. in which the state mas u,oo.
pecunLry interest inless the subject ne I
direct vote the people Of the state ana be aPpIoo ~
"a majority OF those who shall vote thereon
Acting in conformity with this constitutional pro
vision LEGISLATURE at the session OF lso5- o. pase
acts authorizing of bonds in aid Of unfinished
railroads follows:
Western Coal fields 90
%ilnsnet o Chariot and SSoooo9
Atlantic tennessee ami OHIO. loooIO
II.S66.OOO
Each Of these acts contained section levying
snecial tax 10 pay Interest annually. which caused
these securities be known as special tax bonds
From the 81 100000 OF bonds ISSUED and sofa IN tue
markets OF world the State received but little peneht
and the pressure great that the same Lcssa
ure at the next Qs6970, passed nn act To re-
peal the several OF tho preceding session which
the aforementioned appropriations OF bonds
in aid OF unfinished railroads The following amend
ment TO the Constitution also submitted to the peo
vle aud was ratified by them tho November election In
1880:
Sor shall the General Assembly assume or pay, or
authorize the collection OF any TO either directly
or indirectly, express or implied, any DEBT OF Done III
wear one Thousand hundred and siNty eight nor
shall any debt or fond incurred or SsIea ny e d 's
eight either at lis special session OF the year oue tnou
sios o. the years thousand eight hundred ana Sky
eight and thousand eight hundred ana siAt5 ne
aGd one thousand eight hundred aud ana one
thousand eight hundred ahd seventy. except tue Dos
seucd To- fund interest the old debs OF the oate
unless the proposition t. pay the same shall nave his
been submitted ~ the people and 10y them ratified by
the Of majority Of all the qualified voters Oh lo
state at a regular election held Tor thht purpose
In 1860 the special taxes collected under the several
acts IN nav interest on the bonds had been paid into the
| Treasury TO the amount Of S904.5OO. On December
following an passed directing that the S9OioOo
should be appropriated 10 the state ana credited ID Inc
counties In the proportions received rom Oheh Al
election TOR members OF the Legislature was had on the
| first Thursday OF August, 1870. and the Democrats
elected large majority OF both houses aud at the first
session OF this Legislature this act repealed ana the
spec tax Interest uni appropriated to deiray the
expenses OF the State and was 40 used some OF
the questions arising this statement OF the law ana
| the facts are these;
! unon the stale The supreme Court has decided IN
many cases that State can euter INTO valid contract
aux the bonds were legally Issued had the State
the power to REPEAL inc ace n s .eyT ans when
directed the levy OF special taxes 10 meet lne anu IN
terest charge The right To enter hto Oicts u ne
Cared av Chicf-Justice Marshall IN Fletcher Agnust
peck 10 bring such contracts within the piohhon OF
mai mart of the Cor sttuou OF the United States winch
declares that no state shall pass any mpairlg the
oSgaiIon OF contracts and This clause OF the Con-
lies TO all cor tracts without resau 10 the
| parties between whom they are made.
third II the Acts whole car not be repealed ny
the Legislature. had that body the power TO repeal tue
sections authorizing levy aad collection OF the special
axes This question been decide IN the negative
In November, 1886, the state OF AikanSss
bank It's capital consisted altogether OF state luhds'
aud notes we're 10 be receivable in all payments OF
debts due the State" In 49, this section was re-
peaied It was contended that Tie repeal was noI era
i've and in Woodruff against Ifainaii doIn hVm@a
tue supreme Cour OF the United states decided te 10
Nal 20 unconstitutional 10 this case Jnsllc1 ~
Ian saws: state can no more IMPAIR 81 legislation
the obligation OF It's own contracts Than IL can ppr tIe
look 10 the action OF SOVEREIGN state 10 he characterized
10y a more scrupuous regard to justice ana a hlghcr
morality. than 1eiong 10 'no oiu'''' " -
| diyidnals."
The interest on the special tax bonds Ia per cert and
would be 1851 900 year. This would require an add
tona tax levy OF 81 cents the 500 valuation OF real
and personal property for each The tax levy no"
for State and county purposes docs not exceed the con
srtutiona limit OF 60 cents ON the 800 valuation Inc
speca taxes authorized IN the acts In aid oil the western
Coaheds the Western North Carolina and the Whining
ton Charlotte and Rutherford railroads Is Tor each l2
cents on the 500 valuations on the Williamson and
Tartoro bonds SD cents: and on the Atlantic TENNESSEE
ana Ohio bonds oneforeth of per cent The valua
ton in $50 Of the entire real and personal property OF
the state WAS $2O0000000 This was the valuation IN
1860 and the same valuation directed for the ye
1869 The valuation Is now $50, OOOOOO Ihe specla
| taxes aggregate as cents the 500 valuation ahu
would raise 1904 800 each rs long as the Naluaon
remains equal that OF last year The EXCESS ~ IN
terest each year would be 222 $40 which would go u
tho arrears Of fifteen years Altogether ana oi
ali uurposee for tie state aud the counties TINS
youId make the annual 81 05 the 500 valuation
slcl il appalling the people OF the State The anua
coJ.ctions Tor state and county purI oses would bt
500 excluding the additional taxes COLLECTED by
fhc several cities and towns OF the state.
n Il generally believed here tat suit will he brought
against the Audit0ro the State in tho June term OF The
Uuited states Circuit Cour' 20 compel him to again pu
tile Rpeca taxes The lists OF The several counties