The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-12-24
RUSSELL AND BUTLER AND THE
SOUTH DAKOTA SUIT.

Senator Butler in the South Dakota ease
Butler admits that he was employed in
| the case before his term in the Senate
| expired, while still holding credentials
from North Carolina. Russell denies that
ne was employed until his term as Gov
ernor expired, but admits having talked
about the bonds with Ricaud, Butler and
Busbee while he was Governor. He knew
| their plans in part, wrote message to
| the Legislature which, between the lines,
| shows he sympathized with them, and
very shortly afterwards became asso-
ciated with them in the case against the
| State involving one and a quarter million
dollars. The thing has an ugly look and
no explanation can make it look of even
doubtful propriety. Practically those two
| high officials were trustees of the State,
charged with the duty of protecting the
| States interests. Instead of being on
guard fer the people of North Carolina,
Butler hires himself to fight the State
while in office (but does not appear
/ openly on the records), talks to Russell
about the bonds, and as soon as Russell
resigns he becomes the open attorney
with Butler and others to compel the
State to pay more than million of
dollars How would you like to have
your trustees to protect your rights as
| Russell and Butler protected The rights
| of North Carolina?
Russell had about a half column space
| in the Morning Post--Cthe organ of the
Southern Railway, the Tobacco trust,
Pritchard and Russell and any old thing
that the Southern bosses and trusts ia
vor), few days ago in defense of the
position of Senator Butler for becoming
attorney for the bondholders ir~the South
Dakota suit while he held a commission
| from North Carolina as Senator. Among
other things he says "of course it would
not be proper for a Senator or a mem
| Der of Congress to accept employment
| for collection of claim against the gov
| eminent because that would be too
4
position, but there have been cases
where Senators during their term APP
peared in the court against the govern
ment, and some times against their own
State" 1t will be observed that Rus
sell does not mention single instance!
If it be admitted that it would not be
I vet
| his State for parties who are trying to
compel it to pay over million dollars
| it has for thirty years solemnly declared
| it does not owe--if that would not be
| breach of the trust due by Senator
| to his own State, there are circumstances
connected with the South Dakota case
that make Buffers appearance traitorous
to his State. When Butler, during his
term as Senator, was hired. the bond
holders had no constitutional right to
sue the State What did he do? With
others-probably including Russell-he
conceived fraud to compass the over
throw of the states honor in the adj
justment of it's debt. This is harsh
charge but it is true North Carolina in
1876, when it's own people were fully in
power after the carpet-bag and scala
wag rule adjusted it's State debt in an
honorable and fair way. 1t repudiated
in toto all the special tax bonds, because
they had been conceived in dishonor and
born in fraud. 1t scaled the other bonds
in a spirit of fairness to the bondholders
and to the people. With reference to the
bonds upon which South Dakota is suing,
the State agreed to pay % cents on the
dollar in new bonds The whole financial
world applauded the action of the North
Carolina Legislature. most Of the bond
holders accepted the terms of the set
Element, and for nearly thirty years the
matter has been regarded as a closed in
cident. In fact, there was no way to open
il except by the method attempted by
Butler, Russell & Co., seeking to further
the suit by plain fraud upon the juris
diction.
Under TIE Constitution of the United
States no state can be sued except by
another state. The transfer of the bonds
to South Dakota is so palpable an eva
sion it is almost certain to fail before the
! United States Supreme Court. 1t is in
conceivable that the Supreme Court will
permit South Dakota to be heard, if it
understands the devious methods en-
ployed to secure hearing in that tri-
bunal.
Here are the successive steps by But
| Ter and Russell. taken while holding
commissions from North Carolina or very
| soon thereafter:
/. Butler secured South Dakota politi-
clans, Republicans and Populists, to en-
act law in that State that would en-
able the holders of the bonds to present
ten bonds to that State.
2. In pursuance of the agreement made,
ten bonds were given to South Dakota
upon condition that it would bring the