The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1901-11-28
From Our Regular CORRESPONDENT.
LEFT OVER FROM LAST WEEK.

| The sensation OF the paStWeek has
| been the publication in the daily papers
| OF stories concerning a suit that has been
| brought by the State OF South Dakota
! against the State OF North Carolina Ia
| State as such being allowed under the
| Constitution to sue another State) to
| collect certain bonds issued by act OF the
| Legislature of 1866.
| 1t was first declared by a paper that
| the suit was really an attempt on the
| part of the Southern Railway Company
| to secure the ownership of the old North
| Carolina Railroad Ton which it holds Il
ninety-nine-year lease) by using bonds
| issued by the Legislature OF 1866, whose
acts and misconduct are known to our
| older citizens and are matters OF history
| duly recorded,
| Two other papers, however, seem to
refute that statement by showing, APP
parently that the charge is untrue, and
| that the bonds which the State of South
| Dakota holds We're issued by our own
people Corning the Legislature OF 1860
and that their validity was recognized
| by the act Of the Legislature of 1879,
| and which passed the act to compromise,
| commute and settle the State debt, and,
as further stated i'll these papers, and as
the record shows an offer was made in
that act to settle on the basis OF twenty
| five cents on the dollar. | understand
| that only about 300 Of these 81 600
bonds remain outstanding (there having
| been originally ,713), which proposition
would seem to Indicate that NIB OF
| those 81 900 bonds have been cancelled
by our State Treasurers.
As this question appears to be OF I'M
usual interest just now, you will prob
ably be willing Mr.. Editor. to enlghten
| your readers. and the following deduction
which occurs to me, and possibly to some
others, may not be inaccurate. | Offer 1T
therefore to your attention.
The bonds in question were issued as a
| second mortgage upon the State stock
in the North Carolina Railroad at the
rate of ten shares Of stock, with a face
value OF 500 each to one bond OF the
face value OF 81 OO0-Which would seem
to be dollar for dollar.
Ten OF the 300 outstanding bonds are
said to have come into the possession of
the State Of South Dakota, and | learn
that it is upon these ten that suit has
been brought in the Supreme Court OF the
United States.
Now, then does it not follow that if
the State OF South Dakota is, by the
United States Supreme Court. allowed to
enforce her claim, the holders of the re-
naming 300 bonds granting there are
300 outstanding will likely transfer
their holdings to some State or States,
which States will naturally sue upon
them and recover.
The State of North Carolina owns
10000 shares of North Carolina Railroad
stock, and it appears to me that these
300 outstanding bonds are a mortgage
upon 5000 Of those Shares. Last week
the stock was worth %17O per share.
more than $500 worth OF the bonds
aforesaid, WouIdn it?
Ii this line OF argument is correct. can
- not see how the first ''sensa tiOnal' pub
| LEGATION and those following it can be
correct or truthful. or how it should
. necessarily follow that the lawyer in the
! | case cannot serve two clients faithfully,
! without having the imputation thrown
in his face that he does not know his bus
| mess
= My private opinion, should it be pub
;, licly expressed, is that he does know it.
6 Speaking of the South Dakota suit to
+ enforce the payment of certain bonds
- issued in aid OF the Western North Caro-
- lima Railroad. Senator Simmons says he
}, thinks that State is not the real party in
interest and that it allows the Use of its
!. name to give the Court jurisdiction. Con
- tinuing. he says that these bonds were
given to the State Of South Dakota by
q one Shaefer, and that in his donation he
+ requested the State to give to the Uni
versity OF South Dakota the benefit O
whatever might he realized from the
bonds by suit or compromise; that wher
South Dakota accepted this donation
with that request, it accepted the bonds
with the implied agreement to hold The
/, recovery for the benefit of it's University
l. 4 l. I IL, Il,
n object is not so much to recover the value
,e OF the ten bonds as it is to collect The
a. bonds still held by Shaefer, and that thu
: means indicated are being used to hav,
: enough of the stock of the North Caroline
10 Railroad Company impounded and sole
to pay all the outstanding bonds is
y sued in aid of the Western North Caroline
D. Railroad, practically all of which Shaefe
re Is SAID to now own; that the suit Seems
A. to have been brought for Shaefer's bene
: fit, and that Shaefer or the other bond
- holders provided Shaefer does not hole
them alb are not made parties to thu
l. suit; that a Judgment in their behalf il
le asked. fixing both their demand and the
ct so-called lien.
e Governor Aycock said on Friday even
re ing that for the benefit Of the privat
II stockholders the North Carolina Railroad
r will not be sold as q result of the sui
- brought in the name OF the State OF Sortl
T." Dakota against the State OF North Caro-
lima. He had just returned from vii
/ mingtOn, where he delivered an addreS
1t OF welcome on behalf OF this State to tn
lie ladies of the United Daughters of the Con
IS federacy.
l. FIFTH SESSION OF SOUTHERN COTTON SPIN
ST. NERS ASSOCIATION.
L The fifth annual convention OF TIL
Southern Cotton Spinners' Association
N met in Atlanta last Thursday at tn
n kimball House, with three hundred mem
Of hers OF the Association and their friend
o in attendance, ana President j. II
- McAden presiding. Mayor Minis, c
y, Atlanta delivered the address of We
VI come and Mr.. d. A. Tompkins. repute
SO to be the best posted and most cOmpeten
* mill man in the South. a member OF til
United States Industrial Commission an
Of an eX-PreSident OF the S. c. S A.. OF Char
IS lOtte, and Chairman of the Board c
n Governors OF that Association, respOnde
!. on behalf OF the Association Hon
~ Hoke Smith spoke on the development c
u our home talent; Senator McLaurin (wh
De arrived during the first days session n
Or u o clock spoke on the subject of EN-
tension OF our Foreign Trade" Thes
two addresses Were delivered at the be
hemian smoker" Thursday night. Dur
ing the afternoon the delegates and guest
ID AL 01n AMAZE