The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-04-20
A BIG CAUSE
Before the U. S. Supreme Court.
One of Great Interest to Bankers
and Capitalists Everywhere.
The Suit Involves Claims Amount
ing to at Least 100000
Against the State Of North Carolina
On An Appeal
From a Decree Of the Circuit Judge,
Bond, Upon the Difference of opin-
ion Between Him and Dis
trict Judge Seymour.

WASHINGTON, April l9.--The last week
in this month it is expected the supreme
court-chamber will witness the hearing OF
cause not only interesting to New York
bankers and capitalists, but OF general in
terest to the country.
This suit. which involves claims amount
ing TO at least 100000, is against the
State OF North Carolina on an appeal from
a decree of the circuit judge, Bond, upon
+ division OF opinion between him and the
district judge, Seymour, at the June term,
1887, of the circuit court OF the Eastern
district OF North Carolina. The decree
was in favor of Alfred ii. Temple, q citi-
zen of North Carolina, against the State
for 5000, PRINCIPAL money, consisting OF
the coupons attached TO ten 8, 900 bonds,
with interest on thscoupons, amounting at
the date Of the decree, TO S., 500.
But the whole of the bonds OF the class
10 which these ten bonds belong, known
as special tax bonds, amount to S3,0OO,000
The coupons and interest have not been
paid since January !, 1870, 50 that Ii the
supreme court should affirm the judgment
OF the decree in this case il will add, with
compound interest, more than 100000
TO the public debt Of the State.
ARAILRoAD swiNDLE.
The bonds were authorized by an act OF
the Legislature Of January 30, 1869, as a
subscription 10 the stock OF the Whining
ton, Charlotte & Rutherford railroad. The
directors of the company protested against
the measure, the effect Of which was TO
give the State a majority OF the directors
and the control OF the company. The new
board at its first meeting dismissed X. II.
Cowan. the president, and appointed DR..
William sloan in his place. But so soon
rs the net was passed the Treasurer, Jen-
kins, by order OF the Governor, Holden,
issued Il 100000 OF the bonds to Cowan,
which he sold in New York at an average
Of 10 cents on the dollar.
When Sloan came in, in July, 1869,
So 100000 Of bonds were issued 10 him,
which, through the agency OF John +.
Pickrell, a New York broker, he sold for
~ cents on the dollar, and on 81, 100000
Of the bonds the company realized $751;
$50 What became Of the remaining
100000 Is not explained In Pickrelrs
statement.
These facts are derived from the report
OF an investigating commission appointed
by the Legislature in 1872. Sloan admit
ted OH oath before this commission III ut
he received twenty shares in another COM
pany for Withdrawing his opposition 10
an appropriation in its favor, and other
witnesses testify 10 the same fact.
Pickrell' s,account with Sloan shows that
they entered into ARTICLES OF agreement"
under which Sloan deposited with Pickrell
s., 900, 600 Of bonds and received $4,000
down, upon basis Of $40 on the 500.
One million seven hundred thousand dol.
lars worth OF bonds were Sold as above
stated, for Sl59,250. Sloan also hypothe-
Gated GOO first mortgage bonds on the road
| Of the same denomination with the State
bonds. These were TO bring 10 cents on
the 81, and II appears that during the year
1870, or from January 81 10 October 3, of
that year, Sloan received from Pickrell
1896, $3.50 upon the State and fimt mort
gage bonds, which bonds amounted 10
S2,30O,0OO. The advances were made at
different times Pickrell invariably
charged per cent. per month commits.
sion, together with interest, 10 the date Of
settlement, October 10. The interest was
charged upon the money advanced upon
the commissions upon several hundred
dollars Of travelling expenses and telc-
grams. The bill Is thus run mp 10 Si4l,-
tsl12. lie then adds another charge OF
per cent. interest upon this sum for a
period not stated, amounting TO Sli,32O.2i,
which, added 10 the principal, makes an
aggregate OF $3.50, 1856. And finally lac
charges y per cent. commission upon this
amount. bringing him Sli, i02.Bl, and
:. making n grand total OF loans, commits
sions upon commissions, interest upon in
tercs,, travelling expenses and kilograms
amounting 20 Si6T, 508.97.
Sloan certilos this account OF Pickrcll TO
be correct. As was said Of the bishop OF
Grcnada's steward and butler, These
two make pair"
The complainant, Temple, in his bill be-
fore the circuit court cites the State con-
stitutional provisions showing that the
Legislature cannot grant aid to any new
enterprise or improvement while the pub
lie credit IL below par, nor unless tax u
imnosed 20 meet the demand on the treas
ury. nor unless the question is submitted
10 The popular vote and approved. But
thai road In progress may bc completed
by the State, II special tax be imposed,
regardless OF the other two conditions. lie
cites the law Of January 20, 1869, by which
$4,000. 900 worth OF stock was appropriated
10 the road, accompanied by an imposition
Of a special tax. Seven hundred and fifty
thousand dollars worth were TO bo retained
by thcr treasurer until certain conditions
were complied with by the company.
STOP PUT TO IT.
The bin proceeds TO state that after the
bonds were issued the State undertook &c
impair their obligation; and 70 that end on
the 10Th day OF January, 1870, the Legs
ia,ure resolved, THAT the Treasurer be In
structed and directed not TO pay any mor'
interest on the special tax bond until au
thorized and directed so TO do by this Gen
eral Assembly"
And the bill further complains that OF
tho sth Of March, 1870, the Legislature
nasscd can act 10 repeal certain acts passe'
n the session Of 1868 and 1859, making az
nropriations to railroad companies I'M
net repeals 'all acts passed ~ ,ne las
session Of the legislature. making apprvo
prlations 10 railroad companies, ana eau
unon the holders Of tho bonds issued y
lie companies " return them TO the Ireas
urcr. IT.. Al.
This resolution and ct repeating Ia