The Caucasian. (Clinton, N.C.) 188?-1913, 1901-11-21
THE sourn DAKOTA BoSD -UII

JihPb OH DcHhii VI tiIt OtdNc vi
South Dakota to secure the paymen!
of these bonds which are In fact
mortgage bonds with the State
stock In the North Carolina Rail
road pledged as security.
Immediately after the filing of
the bill In this case In the Supreme
Court, the Raleigh News and Obser-
yer raised tremendous howl, chsrg-
ing that the SUIT was a scheme by |
some one to- rob the State by forcing |
1t to pay an unjust debt. 1t init
msted--if 1t did not charge OPENLY
that these bonds were fraudulent |
and without any valid consideration
and that II would be crime and an
outrage TO force the State to pay
them, or, rather, to sell . certain
amount of the States stock in the
Western North Carolina R,ilrOad 10
satisfy the mortgage on this stock,
the bonds In fact constituting such Il
mortgage. A great many good peo-
pie were no doubt mislead Ivy the
wild, irresponsible, and what nov
seems to be entirely uutruthfu
statements of the News and Obser-
yer.
The editor Of the Raleigh Post,
Mr.. Furman, was for some time
Auditor of the State and happened
to be familiar with this whole bond
transaction. Mr.. +. III. Busbee, Of
the Raleigh bar, was also familiar
with the whole matter, inasmuch as
he ut one time had represented GER
tain of these bondholders in an APP
peal to the legislature. Both these
gentlemen have made clear and
mprehensive statements giving
the facts In the case. From their
statements it would seem that the
bonds are entirely valid, that the
State got the money and put it into
the Western North Carolina Rail-
road, which is now worth three or
four times what it was then, aud
that, therefore, the State is now in a
position to pay what seems to be an
entirely honest debt, and pay it out
OF part of its interrs st i'm the West
ern North Carolina Railroad with
out taking a dollar cut of the Treas
ury of the State. The editor of the
Charlotte Observer has written a
very intelligent editorial in this
connection reviewing the long state
meDts prepared by Mr.. Furman.
In order to present the facts stated
therein, which up to date have been
uncontradicted, we publish the cd
itorial from the Charlotte Observer.
1t Is as follows:
THE SOUTH DAKOTA LAW SUIT.
Mr.. r. M. Furman, editor of The
Morning Post, of Raleigh, who has
taste for this sort of thing and
whose long service as State Auditor
gave him familiarity with the
States financial affairs, has an edito-
rial In The Post of yesterday upon
the suit which the State OF South
Dakota has instituted against the
Slate of North Carolina, which at.
fords the clearest exposition of the
nature of the bonds which are being
sued upon, and just what is involved
that has yet appeared in print. These
bonds are not a part of the fraudu-
lent issue made by the ,hieving
Legislature of 1868 aud subsequent
ly repudiated, but were is -ued by
authority of an act of the Legisls-
ture of 1866, which was compose d
of our own people, and were s'never
tainted with fraud or so treated Al
any time by the State" Ga the
contrary, their validity was recogni.
zed by the act Of the Legislature OF
1877 to compromise, commute and
settle the State debt, and an Offtl
was made in this act to settle them
on the basis of twenty-five cents on
the dollar. These bonds numbered
in all 1,713, of the par value q
200 each-$1, $4,000, and of the
Issue OF 1,713 all excep'i ing about
800 have been redeemed at the rate
Of Is cents on the dollar, and can
called. The bonds, by the terms OF
the act by authority OF which they
were issued, we're a second mortgage
upon the States stock in the NORTH
Carolina Railroad at the rate of ter
shares of stock of the face value Of
$100 each to one bond of the fact
value of 81 ,000-in other words dol
lar for dollar. OF the 800 bond
outstanding ten have come int,
possession Of the State of South Da
kota, and upon these suit is broug,
As matter of course if South D..
kots Is permitted by the Suprem,
Court of the United States to en-
force her claim, the holders of tn,
remainder Of the 800 bonds out
standing will transfer them to some
State or States which will sue upor
them and recover. The State own,