The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-07-29
PAYING TEN PER
CENT INTEREST
What the State Does on PEN
itentiary Debt.
DEBTS SHOULD BE PAID
CHAIRMAN TRAVIS CONFERS
WITH STATE TREASURER.
TREASURER WILING TO LEND MONEY
And Chairman Travis Submits Proposition
that Would Settle the Controversy and
Pay The Creditors With
out Fur.her Delay.

OUT TuFdlSf Uedys
Since the court has held that the war
rants issued by the Executive Board in
payment of the penitentiary debts were
in all respects issued according to law,
and that it was the duty of the Trca-
surer to pay them without delay, | find
by talking to Chairman Travis that the
Board feels that it is relieved of all re-
sponsibi1ity for any further delay i'll
their payment, and that the Responsible
ny is now resting solely upon the Treas
urer. But, out of regard for the creditors
who are still being needlessly kept out of
their money which lies idle in the
Treasurer, Mr.. e. j.. Travis, the chair
man of the Board called on the Treas
urer this week to try to arrive at
some agreement by which the debts
might be paid without awaiting the de-
termination of the appeal.
TREASURER WILL APPEAL.
He found the Treasurer fully deter
mined TO prosecute the appeal. notwith-
standing the fact that the Judgment of
the Superior court is unquestionably
ample protection to him, and reversal
of the Judgment could in no way be of
interest to him.
He seems to think he is under some
sort of obligation to the Attorney Gem
eral growing out of Il mysterious corie
of official courtesy which supercedes
all consideration of the rights of credi-
tors or cost to the State. to make every
possible effort to sustain his opinion, and
that it would be doing the Attorney
General an objectionable indignity to
submit to a judgment of any tribunal
below the Supreme court that was III
conflict with his opinion.
MR.. WORTH'S PROPOSITION DE
CLINED.
Finding the Treasurer not to be moved
from his determination to- sustain the
attorney General the chairman proposed
to him to pay the warrants as they
stand, and let the superintendent enter
into a written contract that, in case
the Supreme court reversed the present
Judgment. they would repay the amount
of the 1899 debts out of the first money
derived from the sale of crops. In this
way, If the Judgment was sustained,
there would be no changes to make, and
if it was reversed the Treasurer would
still be safe.
The Treasurer declined this PROPOSE
ton He asked the Board to issue sep
arate warrants for the 1898 and 1899
debts, so that he could pay the 1898
debts out of the bond fund.- and the 1899
debts out of the appropriation for cur
rent expenses.
The Board had to decline this for two
reasons. First, because there is not
now remaining in the Treasury suffi-
cient amount of the appropriation to
pay the 1899 debts included in the war
rants, there being now only $4,000 Of
the appropriation on hand, and the debts
of 1889, prior to March, amounting to
about $4,000.
Second, because it would deprive the
penitentiary Of every cent it has to pay
its employees and meet current expenses
at the very time it most needs it. From
now till October fst is the period for
which this money will be needed. After
that date the cotton crop will be coming
ia rapidly and the pententiary authori-
ties think it will furnish all the money
required.
TREASURER WILLING TO LOAN
MONEY.
The Treasurer offered to meet this OBJ
from the general fund. but the Board
was not willing to borrow money.
1t did not care to have the penitentiary
put in a position to be reported as bor
rowing money in addition to its appro-
priation, BY using its appropriation for
purpose to which the court has ruled
it was not applicable. Neither could it
understand why the Treasurer should be
50 scrupuously careful about the legality
of his disbursements of the bond
fund that he cannot submit to the ruling
of any tribunal below the Supreme
, court, and vet is 50 ready to lend other
funds in his hands without any au-
thority Of law whatever.
THE '9S AND 90 CLAIMS.
The chairman of the Board asked the
Treasurer what would be his course of
action il the Board were to separate the
indebtedness of 1898 and 1899, and issue
separate warrants for them. lie stated
that he would pay the 1893 warrants
from the bond fund, and the 1899 war
rants from the appropriation.
MIR. TRAVIS PROPOSITION.
The chairman of the Board finally pro-
posed to the Treasurer to transfer to the
credit Of the penitentiary the 81 900,
which was paid to him in January and
February from the 1899 receipts Of the
penitentary, and was applied by him as
credit on the loan he made to Super
intendent Mewborne in March. 1898,
and the Board would pay the 1899 debts
with that, and issue him warrant on
the bond fund for the amount due on
his loan. which was debt outstanding
and due on January i, 1899. This prop
osition the Treasurer took under con-
sideration.
THE BOARDS CONTENTION.
The Board contends that this $4,000