The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-08-14
TO FORCE PAYMENT
Of SOUTHERN BONDS
Plans of the North American
Trust Company.
A COPY OF THE CONTRACT
Propositions to Settle on an Equitable
Basis Will be Made.
THAT FAILING ColRrs WILL Be SOUGHT

May mink PROPER ano on All Settlemen'S
or Collections on Bonds in its Hands
tits to Get so Per Gen..
Recently the News and Observer made
reference to the efforts of certain trust
companies in New York to get control OF
large blocks of repudated or discredited
Southern securities, with view to maxi
ing an organized effort, backed by un-
limited capital, to compel their payment
AS over $26OOO,OoO of these bonds were
issued for North Carolina by carpet bag
gers and repudated by the State, and as
it would now take 100000 to pay them
at par, with accumulated interest, their
payment is of concern here
The North American Trust Company. of
New York, which has recently been very
active in picking up Southern securities,
are sending out to banking houses in the
East the following circular letter and
agreement:
New York, May 14th, 1901.
Dear Sir or Madam:-A very large
amount OF bonds were issued by the
southern States during the reconstruction
period, OF which many have been repu-
dated and have today no market value.
Al intervals for years individual efforts
to collect these bonds have resulted only
in expense and annoyance to the holders
OF same. We believe that individual ef-
forts will always prove futile, and at the
solicitation of large holdings of these
bends we have consented to make the eff
fort to collect or compromise same. with
the full belief that in united way sat-
isfactory results may be had. AS soon as
sufficient bonds have been deposited to
justify such action, propositions to settle
on an equitable basis will be made, to
be followed by other steps if necessary,
which, under the advice of our attorneys
promise good results.
We will take pleasure in acting for you
tnder the terms of the contract. copy
which is enclosed, which shall not in
olive you in any expense, annoyance or
ability. We believe in this united way |
iere is reasonable chance to make (
aluable what is now absolutely worth |
S. We promise cur best efforts in I
'ur interest in this direction.
Yours very truly,
NORTH AMERICAN TRUST co,
Richard J. Scoles,
Vice President.
The agreement accompany this letter |
l referred to in it, is as follows:
This agreement, made this fifteenth day |
April, 1901, by and between the under
ned holder of the certain securities
opposite his name hereinafter called
bondholder) party of the first part,
the North American Trust Company,
orporation duly organized under the
CT the State of New York (herein-
q called the Trust Company, party
qe second part, witnesseth:
hereas, the said bondholder is the
Or of the certain bonds or evidences of
1btedness set forth and described af
tits signature to this agreement, which
s'bcnds have been repudiated in whole
OF part by the State which issued the
Sc;
| whereas, the said Trust Company
lslling upon the terms herein set forth
todertake the enforcement collection,
coromise or adjustment of said bonds
or her evidences of indebtedness, as
helafter stated;
Il therefore in consideration of the
preses and of the sum of one dollar, to
eaOf the parties hereto, in hand paid
by e other, the receipt whereof rs
herr acknowledged, the said parties
agras follows:
Lie said bondholder agrees to de-
posis said bonds or other evidences of
inde,dness with the Trust Compan.
uponhe execution of this agreement.
il.he said Trust Company agrees to
take lch proceedings as may in it's dis
creti' seem advisable or proper for the
purpt of enforcing the payment, COM !
prom or adjustment Of said bonds, !,
In VIE or in part, it being understood |
mat said Trust Company shall have |
aosolu discretion as to any acts it may I
perforor proceedings which it may take |
or rein from taking for the said pur-
pose oenforcing the payment, compro-
mise collection Of said bonds.
III. e said bondholder hereby ire
VocapiMakes, constitutes and appoints |
the sa Trust Company its true and |
lawful ttorney, with full power to de-
mand yment of said bonds and upon
lallure receive payment therefor, to
prlng az and all suits, actions or pro-
ceedlhgat law or otherwise, as it may
In its Gcretion see fit, to collect the
said boIs or to enforce the payment |
thereof; , compromise, settle and adjust |
the amouts due or claimed to be due UNI
der said onds, or any part thereof upon |
such tens and conditions as it may |
see fit, ad to accept in payment, COM
promise Dr. satisfaction thereof such |
amount c amounts as the said Trust |
Company hall see fit or consider it ad |
Visable tcaccept, or to accept in lieu of
or In exchnge for said bonds other bonds
issued blythe same State by which the
said unde-describEd bonds were issued,
provided hat the said bonds accepted
In lieu Of VI in exchange therefor, shall
be tonds recognized and admitted by said
state to bevalid and binding upon it, and
upon any ompromise, satisfaction, set
tlement or other adjustment of said re-
pudiated boids, to deliver and surrender
the same tothe State by which they were
issued. and b give full release and dis |
charge to sad State of. from and against !,
any and all fIrther or other claims upon
said bonds. or any part thereof.
~ 1t is further agreed. that the said |
trust Company shall conduct all pro-
ceedings which it may elect to take for |
the enforcement or collection of said