The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1897-11-30
MORE FRAUD DISCOVERED.

Southern Railway Company, good
collateral of the market value, at all
times, of one hundred and seventy five
thousand dollars, &c secure the lease
money t the North Carolina Railroad
Instead of depositing collateral, at all
times convertible into money, the
Southern Railroad has deposited a Ger
tain number of their own bonds-that
Is, their own promises TO pay. In their
re-organlx alton of the Richmond and
Danville they have issued one hundred
and Twenty million Of what they Call
first consolidated mortgaged regis
tered gold bonds TnIs issue of bonds,
they have listed on the stock exchange
n New York and they pretend to give
them a market value. It is very ques
tionable whether they have any &enu
inc market value. Every body knows
that it ia a trick of the money sharks
to issue paper called bond and put it
on the stock exchange for sale and
then send out their own brokers to buy
it and sell it and operate in it, thus
buying from themselves and selling to
themselves, all for the purpose of max
ing it appear that there r bona 6de
transactions whereas in truth nobody
in buying or selling, but the whole
thing ia a dodge for the purpose of
keeping up an apparent market value.
Now it turns out that the North
Carolina Railroad has got nc security
for it's lease money except some Of
these first consolidated mortgaged
registered gold bonds" We r in
formed that the Southern claims to
have put up thirty of these bonds of
the par value of ten thousand dollars
each. We are also informed upon
what seems to be reliable authority,
that in truth, they have only put up
twenty two OF these bonds. IL this be
so, then the North Carolina r abroad
and the State have got no security for
the lease money except twenty two
Southern Bail way bonds Of the par
value of two hundred and twenty thou
sand dollars.
It seems that these bonds have baen
quoted on the stock exchange as lc y
down as seventy Six. IG il claimed
that they are now quoted at eighty
two.
IL is believed by many good hnan
ciers that these bonds have no actual
bona fide market value. IE is believed
that they are simply foated by Nor
gan and Company in the hope OF un,
loading them upon investors. It is be
IIeved that they are really and actually
worth lutte or nothing The chances
are that if this two hundred and sven
Ey thousand par OF stuff which they
parade as their great grand first con
solldated mortgaged registered gold
bonds" were advertised for sale by the
N 0rGh Carolina Railroad Company,
they would not bring thirty cents ON
the dollar, unless Morgan and Com
pany should step il and take uhem up
In order to save their own credit.
Aud this is the trash that the Elias
Carr Directors accepted as collateral TO
secure one hundred and seventy five
thousand dollars TO the State and to the
| North Carolina Railroad.
Look &C itl The Southern Railroad
Company promises to pay aOous two
hundred thousand dollars a year for
the North Carolina r abroad and TO Sc
cure it's own promise, gives as col
lateral another lot Of it's own promises
A man gives his note for a thoussEd
dollars then TO secure is, he gives an
other one of his wn notes executed by
himself, for twelve hundred dollars.
That is, if l do not pay my note, 1r.
Creditor, then you sell the collateral.
That is, / pay my note by giving you
another note. That beats Macawber.
The collateral scheme never struck
him.
The Governor ought to request his
Directors TO call upon the Southern
r ll~ay to put cash registered Uni
ted States bonds or North Carolina
STATE bonds and to do it quick. This
concern should De made to understand
tnat they are now dealing with men
who propose to look out for the State
and its interests.
As q Nimrod we are not d success,
and the only kind of bird we positively
crave go bring down" is q dead one,