The Caucasian. (Clinton, N.C.) 188?-1913, 1901-01-17

alton which they can exercise by .
Iirect memorial addressed 70 your
aonora ole body.
The cootention Of these bond
,olders seems 10 bs Substantially
10 follows: That they own bonds
.mounting TO $3.50 600 prime pal.
md 800 900 interest; thai thess
,onds were issued TO the Western
North Carolina Railroad Iom many
4 nder the Act Of February. 1855 -
amended by the Act OF Decemo Der
1866 these bonds were secured BY .
sratusory mortgage on the States
,tock In the North Carolina Rail
road Company 70 the extent OF %
AMOUNT Of the par Of the Stat'S
stock equal to the par Of said honda,
that by the Asss Of 1894 and OF '5S,
the thirty thousand sharss Of stock
owned by the State (thrse miilioos
OAR are now worth at market prics Q
about Ave millions of dollars), were
20 secure the conssruc-I
ton OF frst mortgage bonds; that
the amount OF tn, 50 6rss m JrtRsR"
bonds now outstanding 10 &z,7D,
600; that these bonds issued under |
tho Acts Of lS49 and 1855 fell hns
in or about the years 1880 to 1880 (;
that in 1880 the State entered into
an agreement with the holders OF
the first mortgage bonds by which
new six per cent. bonds were 10 be
issued to mature In 1919, such new
bonds to be an extension OF the OLD
bonds, and to hold on the States
stock the same line or security ~
that which Apper' aimed 70 the old
bonds that the holders OF the SEC
ond mortgage bonds acquired them
before the maturity Of the first
mortgage bonds and thereby took
the right to pay of the first mort
gage bonds at their maturity, aud
that the mortgsgor, the State AND
the Hrst mortgages, could not law
fully enter into an agreement Tor
the extension Of the drst mortgage
bonds without the consent OF the
second mortgages: that the holders
Of tbs second mortgage bonds ~ re-
not Iarties to the agreement for the
extension OF the first mortgage
bonds and enforce their own lien
against the states Stock for tho
payment of their own second mort
gage, and 90 they ask the state TO
waive it's sovereign immunity from
suit and submit itself to the courts
20 the end that the rights of the
parties may be determined, and
thew seek to show that II the courts
should hold in their favor, the State
would not only pay Oh what they
claim Is an honest debt. but would
also save very large amount OF
money by being released from the
Iobligation to pay six per cent .
year ON 81, 720, 900 for nineteen years
when 1t can and does borrow mon
ey for much less than four per cent
q year.
In the State Compromise Debt Law
of 1879, the second mortgage bonds are
scheduled at twenty-five cents on the
dollar of the principal, and they arr
now fu ndable in new four per cents Al
this rate.
If the State should submit this mat
ter to the courts, and the courts shOult
hold in favor OF the views OF the secOnf
imortpa2e bond hOld-rs, and If these
second mortgage b md h ,lders shoult
la1ree that in case the courts should de
cree in their favor, they would surren
der their aond- by taking not NOR
THAN $500 600 out of the proceeds OF th'
sale of the States stock, it would re
louire in round numbers about three
millions of dollars to pay of the tW'
MORTGAGES. rhis would leave the Stat
still holding unincumbered stock Wortl
about two millions on the market. o
the state by purchasing at the judicia
ss lie could retain all it's stock and Dor
ROW the three millions by the issue
bond, at a very low rate Of interest
probably three and half per cent
1t is to be remembered that thes
first mortgage bonds are greatly priz
by their owners and demand high prl
ces on the market Their value, o
course, is based upon the fact that tn
collateral or mortgaged stock is WORT
nearly double the amount OF the bond
and the further fact that while none
on the best securities commando oni
three per cent. these bonds call for III
per cent for nineteen years. II tn
General Assembly should take this mat
t r into consideration, it should also b
subject of inquiry as to whether Il
the submission by the State TO Tn
courts, there would be an element
bad faith toward the first mortgag
! bond holders who would perhaps con
; tend that, as the State in 1850 promise
, to pay them six per cent until 1919, III
promise shuld be performed without re
/ l.sv - ho mort
gage bond holders.
it is to be observed that II the Legis
lature should decide to make availabl
| for the common schools and college
, and charities, this valuable asset OF tn
, State-its thirty thousand shares
stock in the North Carolina Railroa
, Company-or any part of it, there is n
way to do it, except by disch,rging tn
liens upon it, because with these lncun
berances outstanding, purchasers coul
not be found who would pay for shar
. of this stock the same price A. tina
which they would pay for share
: private stock.
THn ATLANTIC RAILRoAD
, This property has not paid any divi
, dends during the years 1899 and 190(
IL appears that it's Management ha
used its net earnings in improving it
property. 1t seems that the stock ha
> been selling at about twenty-five pc
, cent. of its par. At this price, . sal
, of the States stock would realize il
round numbers three hundred thousan
dollars II . reasonable price could b
obtained. this property furnishesan -
Iset available FOR increased eXpendi
lures.
aovHRNoR's SALARY AND TaH MANSION
The State provides for the Governo
and his family Mansion spacious an,
stately and well adapted to enterta n
ments and social coca lions. The hber
Atty Of Mr.. George Vanderbilt has i'm
proved the Mansion grounds an 1 mad
them more attractive. The salary O
the Governor is not adequate, to NEE
the demands imposed upon him by tn
environments which surround him