The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-04
THE SOUTH DAKOTA BONDS AN
ENTERING WEDGE.

Writing to the Savannah Morning
News of the South Dakota decision,
familiar to the readers of this paper,
Mr.. Fred. Lewis quotes one OF Geor-
gia's ablest lawyers as saying: 1T is
the most important and far-reachlng
question that has come before the
United States Supreme Court since the
days of secession"
The New York Times declares that
it "dwarfs the Northern Securities
case" and the way several Northern
newspapers are discussing it, shows
that it is regarded by some at least as
an entering wedge for collecting other
bonds repudiated by the South. The
Boston Transcript evidently thinks
that this decision is an entering wedge,
for it says:
"It is unsafe to reason directly
from the present decision to a theory
that all the repudiated State bonds
can be collected in this way. The
bonds are of many different issues by
many different States; the terms and
conditions of them vary. Undoubtedly
analogous to the ones just sued upon,
and these can be collected. But just
as surely there may be some whose
terms differ to such an extent as to
make the present decision no prece-
dent for them. Furthermore, there is
a broad difference between a bond
which you can promptly turn INTO
cash and a bond which you can only
collect by giving it to State Unlver-
sity or asylum. Then, too, tnere Is
another uncertain element in the case:
This decision may give a flip to the
consciences of the defaultlng states,
and this spur, together with the re-
neWed prosperity in the southern
States. may induce them to repudlate
repudiation and redeem their good
names in the markets OF the World.
This possibility, indeed, has always
been a factor in the market prices OF
the repudiated bonds-for example, 1t
has always been felt, for some rea-
son, that Georgia was not so con-
scienceless as her sister States, and
that in good time she would redeem
her bonds; and for this reason the
pGdiated bonds Of the State have
commanded four or five times the
price Of those of other States. An
other element, which remains an UNI
changed factor in the value of these
bonds is that in any of the States
strong and courageous leader may
arise who will, from motives either
mercenary or moral, induce his State
to pay it's debts"
The papers are already printing the
amounts of the repudiated Recon-
struction bonds, and whetting the APP
petite of the collectors of these frau
dulent securities for at least partial
payment They give the volume of
these repudiated bonds as follows:
Alabama, S3S.S12,000; Arkansas, $780,
SO7, 900; Florida, S5,2S0,000; Georgia,
$13,5SO,0O0; louisiana, $50, 1000;
Mississippi, s22,600,O0O; North Caro-
lima, $4S,35S, 900; South Carolina, S19,-
100000; Tennessee, $29,S50,000; and
Virginia, $72,22O,0OO. This makes a
sum total of $303,114, 900, and the in
terest is said to amount to as much
more. According to the Transcript, 1t
is expected that the renewed prosperi-
ty of the Southern States will be pour
ed into the laps of the holders of these
fraudulent bonds because some
strong and courageous leader may
arise who will, from motives either
MERCENARY or moral, induce his
State to pay Such leaders have arisen
in North Carolina-Daniel L. Russell,
Marion Butler and their "HIGHER
UP" associates. Having obtained the
decision of the Supreme Court these
.'HIGHER up enemies of the State
1aiD h i,oCr in
their power to secure Legislature
that will obey the orders from
"HIGHER UP" Never since Recon-
struction has there been planned so
gigantic a robbery of North Carolina
as is now contemplated by the "HIGH-
Err UP" crowd responsible for all the
A & n. c.. r. r., Watts law agitation,
educational criticism and other agita-
ton started to divide Democrats so
the '.HIGHER up railroad crowd
can gain control of the General As
sembly of 1905. If they succeed, we
shall see lobbying and bribe-giving
and railroad domination shamelessly
dominate the politics of North Caro-
lima.
The Georgia lawyer quoted by the
Savannah Morning News's correspond
ent shows that Georgia has reason to
be alarmed by the South Dakota de-
cision. We quote:
The discussion came up apropos of
the repudiated bonds of the State of
Georgia, known variously as tn" Bull
lock bonds, the Henry Clews bonds
because Clews owns a large block of
them, the fraudulent bonds of 1870,
the BrunSMick and Albany bonds or