The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-11-12
is IT ANOTHER SOUTH
ERN RAILWAY SCHEME?
CONTINUED from First Page.)

inconsistent and contradictory and con-
fused as to the amount of such bonds
now outstanding. The defendant State
refuses to pay anything on the second
mortgage bonds except it's offer of
twenty-five per cent. of their principal,
which is some ten or eleven per cent.
of the amount which is honestly and
rghtfully due.
10. That during some twenty years af-
ter the so-called extension of the first
mortgage bonds by the agreement of
1880. exhibit "C"), the defendant State
has been receiving dividends on it's stock
amounting to one hundred and eighty
thousand dollars year ($1so,OOo), while
the annual interest on the first mort
gage bonds has amounted only to the
sum of one hundred and sixty-three
thousand, two hundred dollars ($163,2OO),
thus leaving an excess of sixteen thou
sand, eight hundred dollars S16,S00) per
annum for the period of twenty
years, making a total of three
hundred and thirty-six thousand
dollars ($336, 0O0) which has been covered
into the general fund of the State Treas
ury and has been used for ordinary ex-
penses of the State. And the State is
now receiving dividends on it's stock,
paid semi annually at the rate of two
hundred and ten thousand dollars ($210.-
000) a year, while the annual interest on
the first mortgage bonds is one hundred
and sixty-three thousand. two hundred
dollars ($163,200) year, thus showing
forty-six thousand eight hundred dollars
t$46,800 year in excess of the interest
on the first mortgage bonds, which forty
- - Ill
S00) the defendant State refuses to pay
over to the second mort gagees, notwith-
standing their manifest rights to this
fund on the facts hereinbefore recited.
H. That the defendant. Charles ~Salter.
is citizen of the State Of New York.
and the defendant is citizen OF the
State of
12.That the defendant ................
is one of the holders and owners of the
bonds hereinbefore described and desig-
mated as the first mortgage bonds. Your
! Orator is advised and believes and 50 al
leges that your Orator is entitled to ray
off and discharge the first mortgage
bonds, notwithstanding the so-called ex-
tension of 1880, and to this end to have
| a decree Tor sale of the thirty thousand
| shares mortgaged or pledged as afore-
d
| thereof as may be required to pay of
| and discharge the first and second mort
| cages. And to this your Orator IS en-
| titled, as it is advised whether or not
| the first mortgage shall be held in law
| to have continued to be a first mort
gage after the so-called extension of 1880
| That the holders of the first mort gage
bonds are very numerous, and it is i'm
HI 0rot nr 70 - f.r
before this court as defendants by the or
binary process of the subpoena; that the
interest of the defendant ............ is
Identical with all his associate hode RS
Of the first mortgage bonds and he is
made party to this bill in order that
he may defend for himself and for the
benefit of all who have a general and
common interest in the matters to be
determined.
13. That the defendant, Charles Sal
ter, is one of the holders of the second
mortgage bonds and your Orator is ad-
vised that the rights of your Orator can
! not be fully administered without the
presence before this court of the holders
of the second mortgage bonds And the
| holders of the said second mortgage are
very numerous and it is impracticable to
! bring them all before this court by per-
| sonaI service of subpoena, and he is made
party to this bill that he may defend
| for the benefit of himself and all his as
| sociate second mortgage bondholders, the
| matters to be herein determined being
of interest. general and common, to all
| OF said bondholders.
IA. That your Orator obtained title to
| the bonds herein declared ON by
! assignment of Simon Schafcr v'ho is a
resident and citizen Of the State of New
I York, and whose place OF business is 81
| Wall street, in the city Of New York
| The said Schafer transferred, assigned
and delivered to your Ora1or the said
| bonds as an out and out donation to the
! State of South Dakota, with the request
| that the proceeds of said bonds, whether
derived by sale, compromise or collection
| should be applied by the said State for
| the benefit of it's University; that said
| donation was accepted by the Governor
| OF the State of South Dakota in pursuance
! of it's laws and the said bonds are held
by your Orator as the absolute and TN
conditional owoner thereof without any
obligation, understanding or agreement
| whatever between your Orator and the
| said Simon Schafer, or between your
OTdICF Ut any ptISOu Y! party, Ouu
| the donation SO made by the said Simon
| Schafer was without any reservation, ex-
f.! press or implied, for his benefit or for
| the benefit of any other person. And
| the acceptance of the donation by the
! State of South Dakota was absolute and
unconditional, without any agreement
express or implied, that the bonds or
their proceeds should be applied accord
ing to the request of said donor, but on
the contrary, the bonds are the absolute
property of the State to be used and APP
piled as the State may determine.
To the end therefore, that your orator
may have that relief which he can only
obtain in a court of equity, and that the
defendants may answer the premises, but
not upon oath or affirmation, the benefit
whereof is expressly waived by your
Orator, it now prays the court:
First. That an account may be taken
by or under the direction of this court,
ascertaining the number and amounts of
tho bonds hereinbefore described and
designated as first mortgage bonds and
second mortgage bonds, together with
the coupons to them attached, and that
publication be made requiring all holders
of said bonds to prove them before a
Master of this Court.