New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-04-13
NORTH CAROLINA REPUDIATED BONDS
A SUIT THAT INVOLVES THE PAYMEET OF TWENTY
THREE MILLIONS OF DOLLARS.

A SUIT THAT INVOLVES THE PAYMEET OF TWENTY
THREE MILLIONS OF DOLLARS.
RALEIGH, n. c., April - Especial. The de-
cson o! the Supreme Court OF the United states III INC
Virginia coupon has resulted in suit to compel
this state TO pay interest on what known IA the spec
fall tax bonds These bonds issued under acts OF
the Legislature passed the session OF lsGsG9 to I'M
finished railroads as follows Western railroad
81 800 900 Western North Carolina Railroad. S604o,-
600 Wilmington Charlotte and Rutherford Raiiroai'
-. oOO.o 900; WILLIAMSON and Iarboro halI'o'''
100000; Atlantic, Tennessee and ONO i'al'ro'u'
100000; total Sl1,3G6,oOo. The interest,"
ner cent now amounts TO much Nv 'uo
principal. making the grand total aoont >-", 800.
involved in the suits. The constitution OF '"o 30.
opres spccal tax 10 be levied in the acls aIPioP''
Ing the bonds hence they are dcnomih"'eo Spoo'' '
bonds The proceeds OF these pohus "eio 'i"
and ,he state received little benehI Inc S"ho io-
a. the session Of SG9'70 passed an act to repeal the
-ous acts appropriating these bonds and every rev.
ann. ac, from that day TO this contains the following
section;
That the Auditor of this shall not make or cause
10 be made any headings or nanxs TO- OF on Of
the State other than such IA are required ana AZ ate
act. or as may be hereafter required by law
nor shall any taxes he levied directly by SAID hndoi
any law heretofore passed TO the contrary
Ing and II the Auditor shall be guilty OF any violation
OF this he SHALL conviction, be punished III the
discretion Of the court.
vent the Auditor from putting on the tax lists the
special taxes herein referred to- The sherfs are con-
PEELED TO collect the charged against them on
the tax lists therefore, tho Auditor should be CON-
peed 10 reiustate on the list every the taxes
royided authorized and levied by the several acts ap
propratng special tax bonds In aid OF the several
railroads the sheriffs would collect the same ana pay
the same into the state Treasury. The bond
holders would then he certain o! tneir
money, because the constitution ordans that
every act of Leg stature leaving tax shall state tue
speca object which to be applied aud IL snail De
applied to no other purpose The State treasurer would
be compelled to pay interest fast as demanded or
OF him. -, CO.. 1,. ..
The plaintiffs in the su brought in the state Court To-
day are L. Norton George Bliss Rchard j. Cross
and George I. Bliss. composing the 1rn OF Norton
Roberts Auditor OF the State. This suit Will be re-
move on application OF the plaintiffs into ths circuit
Court OF the United States. Another suit nV0Vihs the
same question, brought up In the United states
Circuit Court by A. IL. Temple, a citizen OF
this state against William p. Roberts
Auditor Tho plaintiffs contend that the
decision the Virginia coupon cases fuly warrants the
suit. , . 4,
this state for taxation is S2O0.OOO0oo should the
plaintiffs succeed in their suit the annual interest
taxes The plaintiffs contend that the repeating act and
the act forbiddng auditor to put the taxes on me
tax list are unconstitutional and therefore are VOID inc
ca.es will probably be heard In June before Judges Bona
and Seymour OF the United States Court. l." L. An
drews Of New-YOrk. Samuel T. Phillips. ex-Solctor-
General and Gray and stamps OF this city are counsel
for the plaintiffs