The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-04-05
ANSWER FILED IN
SOUTH DAKOTA CASE
BY Attorney-Ge General GiImer
For North Carolina.
..,.-~t,Er O@stnRr a. =
EXHAUSTIVE U0CUMfN I
Never Any Compact or Agreement
With South Dakota.
WAS NOTEvER IkF0RMtD OF ANY CLAIM
The Defendant Denies That There Was and is
Controversy Within the Meaning of
the Constitution Betw zen the
Two States.

Attorney General Robt. D. Gilmer has
filed the answer of the State of North
Carolina to the bill of complaint of South
Dakota in the matter of the Western
North Carolina Railroad Company
bonds.
The full text of the answer is as fol-
lows:
This defendant, now and at all times
hereafter saving and reserving unto her
self all benefit of exception which can or
may be had or taken to the many errors,
uncertainties and other imperfections in
the said complainant said bill of com
plant contained, and especially protest
ing that this court has no jurisdiction
of either the parties to or Of the subject
matter of this suit, because the mat
tiers complained or do note constitute.
within the meaning of the Constitution
of the United States, any controversy be-
tween the States of South Dakota and
the State of North Carolina, or aGy Of
her citizens; for answer thercunto, CT
unto so much and such parts thereof as
this defendant is advised is material or
necessary for her to make answer unto,
this defendant, answering, saith:
THAT she denies that she has any
knowledge or information sufficient to
form a belief, save by the bill Of COM
plant herein, as to the truth of the allie
cation contained in the first PARAGRAPH
thereof, to-wit, that the said complain
ant is the holder and owner in its own
right, and is i'll the actual possession #
the ten certain writings obligatory or
bonds with coupons thereto attached,
as in said bill of complaint described ;
and this defendant therefore denies the
allegation and demands strict proof
thereof.
This defendant further says that she
is informed and believes, and so alleges,
that if the complainant is in the possess
sion of said writings obligatory by as
signnent or otherwise, such transfer of
possession and indicia of ownership are
purely colorado and colusive, and made
for the purpose of evading the provis-
ions of the Eleventh Amendment of the
Constitution of the United States, all of
which Will be hereinafter more particu-
larly set forth in this answer.
II.
This defendant further says that it
is true that certain writings obligatory
or bonds with coupons attached as de-
scrihed in paragraph one of complain
ants bill of complaint, and DESIGNATED as
Second Mortgage Bonds i$800,O0 Gated
July 1, 1867; $1,323, coo dated January l.,
1868, and $340 900, dated October 4, 1868,
4G0n
sued by the Treasurer of the defendant
State, and that the same purported to
have been issued by authority of an act
OF the General Assembly of North Caro-
lima, entitled IAN act to incorporate the
Western North Carolina Railroad Com
pany,' being chapter 22S, acts 1854 '55;
but this defendant alleges that the same
were not issued and sold according to the
provisions of TIE said act, which in Sec
ton 81 provides as follows, to-wit:
'''Be it further enacted. That so soon
as it shall become necessary to issue the
bonds aforesaid, the public Treasurer
shall advertise in one or more newEpa-
pers, as he may think best, and invite
sealed proposals for such amount Of the
aforesaid subscription as may be wanted
at any one time, and it shall be his duty
to accept those terms which may be most
advantageous to the State: Provided,
That in no event shall any of the bonds
be sold for less than their par value;
ard any premium which may be obtained
on the sale of said certificates shall be
placed in the public treasury and used as
other public funds, and kept or invested
to pay the int crest on the debt hereby
authorized
That no advertisement in the newspa-
pers for sealed proposals was made as
by said act required, but said bonds were
issued and by private arrangement turn
ed over to the authorities of the said
Western North Carolina Railroad Com
pany, who, as the defendant is informed
and believes, and so alleges, sold them
at a price greatly below par, thus pre-
venting the State from receiving any
premium which might have been realized
by means of public advertisement and
sale as provided. The defendant there
fore denies that the said writings obi
gatory or bocds and coupons" are valid
obligations of the State, and alleges that
the complainant and it's assignors. both
immediate and remote, had notice of the
compliance Of the said law provid-
ing for their issue ard sale. And fur
thermore, we'll knowing that the defend
ant had denied their validity and had re-
fused to pay interest thereon, the alleged
assignors of complainant, both imme-
diate and remote, purchased the same, as
the defendant is Informed and believes,
and so alleges. at a purely speculative
price, and for not more than twenty five
cents on the dollar. And the defendant
further saith that it was the intent and
direction of the General Assembly that
the public Treasurer shall sell the bonds
and pay the money to the said railroad
company, and there was a prohibition
against selling for less than par, as
above stated: that the State of North
Carolina was interested that the railroad
should be built and completed by as