The news & observer., 1901-11-12
THE SUIT Is FGR 1898, ,0001'
This Down $40, 800 Per Year
on Bonds That the State
Refused to Recognize
Some Interested Parties Have Gobbled
up the Old Bonds and Are Using
Them to Get the North Carolina Rail-
road For Song.
Especial to News and Observer)

Especial to News ard Observer.)
Washington, d. c.. Nov ia motion
was made today in the Supreme Court
of the United States by Wheeler H.
Peckhan, Esq. of the New York bar,
for leave to file bill Of complaint on
the part of the State of South Dakota
looking to the sale of the North Carolina
railroad. The court took the motion
under advisement This suit is brought
under that provision of the United
States Constitution which permits one
State 20 size another.
II the State Of South Dakota wins IT'S
suit, the North Carolina railroad viii
be sold at public auction and all OF
the proceeds over enough to pay the first
mortgage bond holders Will be paid to
the holders Of the bonds of the Western
second mortgage on the States stock in
the North Carolina railroad
The Southern Railway, which holds a
80 year lease on the North Carolina rail-
road, is believed to be behind this suit,
for they tried at the last session Of the
Legislature of North Carolina to val-
date the bonds upon which this suit is
now brought.
The bill of complaint of Mr. peckham
is as follows:
In the Supreme Court of the United
States, October Term. 1900.
In Equity.
The State of South Dakota, Complainant
VS.
The State of North Carolina, Charles
Salter and others, defendants.
To the Honorable, the Supreme Court
OF the United States:
The State of South Dakota by
----------- the Attorney General
thereof. brings this bill against the
state of North Carolina, and ---,
q citizen of the State of ------,
and Charles Salter, a citizen of the State
Of New York.
And thereupon your Orator complains
and says:
/. That your Orator is the holder and
owner in it's own right, and is in actual
possession of ten certain writings obli-
gatory bonds with coupons thereto at
tached, which bonds We're issued by the
defendant the State of North Carolina,
for the benefit of certain railroad
known by its corporate name as the
Western North Carolina Railroad Com
pany, which said bonds the said defell--
oants duly executed and sealed with its
seai-all of which ten bonds with the
coupons to them attached are now shown
unto this court. Each and every one of
said bonds is dated July 1, 1857 is of the
par or principal OF one thousand dollars
Isl 000) and has matured and become due
on the first day of July, 1897, and has
10 ii attached semi-annuai coupons
which fell due from January /, 1869. TO
July /, 1887, inclusive, each Of said cou-
pons calling for the sum Of thirty dol
lars $500 being at the rate of six per
centum per annum on said principal. A
COPY of one Of said bonds is hereto at
tached as part of this bill Of COM
plant marked Exhibit a.
,. That said bonds were issued under
and by virue OF an Act of the General
Assembly of North Carolina entitled
IAN Act to incorporate the Western
North Carolina Railroad Company"
ratified the 18th day of Feb
ruary, 1855, being Chapter 22S of
the Acts of 1S54-'55, and of an Act
amendatory thereof, to-wit, Chapter 106
of the Laws of 1866 '67. ratified the
nineteenth day of December, 1866, enti-
tied sAn Act to enhance the val'ie OF
the bonds TO he issued for the compile
,;an of the Western North Carolina