Hillsboro recorder., 1888-02-16
Is the State of North Carolina liable to
be Sued upon the Special Tax Bonds'

This question is Low pending be-
fore the Supreme Court Of the United
Ststes and wall sooa be heard by that
tribunal.
The facts pecsssary to an under
standing Of the question are coacisely
these? In 1868 the Legislature Of
this State authorized the issuing Of
the class Of bonds known ss the "Spe-
cial Tax Bonds,' providing in the
Acts, as a means Of securing the pay
men. of principal and interest, that
an annual tax Of ] Of one per cent be
levied upon all taxable property in
the State and collected and paid into
the Treasury and used in paying the
interest on the bonds and the surplus
to be Invested as a sinking fund for
the payment Of the principal at matu
rity. The bonds were issued in 1859
and refer On their face to the Act au-
thorizing them to be issued.
As soon as the State was recovered
from the control of the Radical party.
the Legislature repealed the law levy
ing tie tax SO levied as above, and
subsequently the Constitution itself
was so amended as TO make it uDcon>
stitutional to pay any of this class of
Bonds, and the Revenue laws of 1885
and 1887 in express terms. prohibit
the Auditor from taking any steps
looking to the collection OF the Spe
cial Taxes.
One Alfred IL. Temple a citizen of
this State brings his suit upon some
of these bonds in the United States
Circpit Court at Raleigh, praying to
have the Acts ofthe Legislature and
this Amendment OF the Constitution
declared illegal as impairiag the obi.
gatiou Vr tuv UonHaUS Uvt"vs-~.i.-
State aud the Bondholders. At the
hearing in the Circnit Court the
Judges Bond and Seymour divided in
their judgments The former holding
that the State could be sued upon the
bonds by citizen OF the State, and
the latter repudiating that idea abso-
Iutely. There was formal judgment
taken and the case carried 10 the Su.
preme Court. This cause has been
advanced npon The docket Of that
Court and will he heard in Aprll next,
when case from louisiana, involy.
ing the very same point will also be
heard. The counsel for the plaintiff
are Mr.. Samuel T. Phillips of Wash
inZton. Mr. Elwari L. Andrews Of
New York, and Messrs Gray & Stamps
OF Raleigh. The State is represented
by the Attorney General Of the State.
Messrs Battle and Mordccai Of Ra.
leigh, and our townsmen Messrs Gre.
ham aud Ruffin.
From our stand point il seems 10 US |
that this case should be q warning To |
the honest taxpayers Of the State. |
Had tue Radical Party never como
into power no Special Tax Bonds
would now have been IN existence 10 |
menace the people of the State. This
debt now, amounts to rlore than 25
millions.
Had the Radical party never been
iutrustsd with the dsstiuies Of North
CaroIins, the State to-day, would not
be involved in a fraud which will
bankrupt her il shS is compelled TO
pay il, nor would il be compelled 10
go to the expense Of employing the
sblsst counsel in the State, ct q heavy
cost.
This. suit il uppertune. and should
remind the tax payers that IL the Rs.
ideals should again come into power
nothing better can be expected OF
them than another batch Of Special
Tax Bonds, from which the people Of
the State never have snd peyer will
realize one cent 0i benefit.
Had the Democratic party never
come iuto power we would have had
these fraudulent bonds TO pay. IL was
only through the Democracy that The
State wassaVed from bankruptcy and
ruin, 90 far. II this suit now pending