Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-10-03
PETTIGREW's BOND SUITS.
His Success Against North Carolina
Brings Millions in Claims.

dispatch from Yankton. S. D., says:
Friends of ex-senator r. F. Pettigrew OF
Sioux Falls say that as a result of the re-
cent successful prosecution of the action of
South Dakota against North Carolina in
the federal supreme court Mr.. Pettigrew
has obtained contracts from bondholders OF
half dozen southern states under which
he will undertake collection of defaulted
state bonds amounting, principal and in
terest, to between 500 100000 and $50 600 Geo
The actions are to be begun soon in some of
the states, while in others there will be
delay In preparing the statements of facts.
The actions will be brought for collection
OF principal and interest of several millions
of dollars of state bonds which were issued
to construct state railways in the years fol.
lowing the civil war. In many cases bonds
were used for which the states received abb
solutely nc return. In others. clandestine
issues are alleged to have been made for
much greater amounts than were authorz-
ed. A large amount of the bonds were final
" repudiated. They have been to a greater
or less extent a political issue in all the
states.
;. Ex-senator Pettigrew got Schaefer
BROTHERS of New York to give the state Of
South Dakota bonds of North Carolina Of
the face value of $4,000 in trust for the
State University at V"rmillion. The bonds
were accepted ana the legislature authOriZ-
eG Attorney General Robert w. Stewart Of
Pierre to act counsel in collecting the
bonds in the name of the state.
Ex-senator Pettigrew had found cases
where one state had sued another and suit
was begun against the state of North Caro-
lima. The Supreme Court of the United
States after three days of argument in
April, 1893. assumed jurisdiction, and in
February of 1894. by a vote of to 4, a de-
cree was issued requiring that enough Of
the stock held by the state of North Caro-
lima and pledged collateral be sold to
satisfy the holders of the bonds The sale
will be made from the east door Of the
capitol the first Monday of the coming JAM
uary. The stock in question is that of the
North Carolina Railroad Company leased
to one of the subsidiary corporations of the
Southern railroad. There is, according to
the terms of the bonds, one dollar of the
stock for every dollar of the bonds.
Just how Mr.. Pettigrew expects to get his
private clients into court is not known but
1t is said that he has plan worked out
and is sure of success. He has contracts
for collecting several million dollars of the
bonds on commission. 1t is said that his
contracts extend already to between 81 OOO,-
600 and $40. 200 600 of bonds of North Caro-
lina Georgia, Florida, Texas Louisiana and
Mississippi, representing cases more or less
parallel to that of the North Carolina se-
cIrites. 1t is supposed that he plans some
process of intervention on behalf of the
private bondholders before the sale is made,
thus forcing the federal Supreme Court to
take cognizance of them. A number Of
samples" of defaulted state bonds have IL
is said, been given to states, which will lat
er appear and start actions.