The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-12-13
THE LAW ALLOWS 1T AND THE
COURT AWARDS IT.

| ton from DR.. D. M. Cahey, of Phila-
delphia, with reference to the danger
to the South in the arbitration pro-
jects. 1t is we'll worth reading and
thoughtful men will find it full of in
terest and warning.
From first to last the South Dakota
bond proceedings have had the APP
pearance of a scheme more far-reach-
ing than the attempt to force the pay
ment of the litigated bonds. Below
! the surface there are "Napoleons of
finance" who are using these bonds as
the entering wedge for general raid
upon Southern States to force the pay
iment of the bonds issued between
1866 and 1870, most$of (which were
fraudulent and all of which were sold
at sum far below their face Value.
the only holder -of,repudiatedNs securities
who is behind the South Dakota suit
is credulous enough to believe in a
gold brick proposition. The Demo-
cratic State Convention believed no
such fairy tales when it declared that
disturbed and pledged it's honor that
it should not be disturbed if the DEM
ocratic party succeeded in the election
this year And yet the specializing
Shylocks. behind the South Dakota
bonds. will be ready to ask the General
Assembly to repudiate the platform
upon which it's members were elected.
If they do it. they will be responsible
for the Pandoras box of bond ills that
will be opened.
The matter is of the most serious
nature. Business and Finance of New
York, in it's October number. discuss
ing the South Dakota suit. made this
statement:
1.-THE courts decision in this case is
considered of great Importance, as UNI
der it, it is thought, a way may be
found to enforce payment of the ce-
pudiated bonds of Southern States,
amounting to several hundred mill
lion dollars. An individual, of course.
cannot bring a suit against a State,
but holder of any of these repuliat-
Ell bonds might give or sell them to
State, which might, in turn. sue the
defaulting State, and, under the Su-
preme Courts decision, recover pay
ment. The court. in it's previous de-
cision against North Carolina, took the
unprecedented step of directing the
United States marshal to seize and
sell by auction sufficient property be-
longing to that State to settle the
should not be made within i speci-
fled time"
AS bearing upon the matter, Bust
ond Finonoo nri,fo tho fojntCincy
special:
"Sioux City, Iowa, Oct. 17.-There
is an interesting story back of the de-
cision of the United States Supreme
Court to grant a rehearing III the case
of South Dakota against North Gaze
ira. North Carolina like other
Southern States, soon after the war
issued great amounts Of bonds
to build railroads, and later re-
pudiated them AS a State cannot be
sued by an individual the bondhold-
ers stood to lose everything. After
many years ex-senator PettigreW had
his attention attracted to the situation
and secured, it is said, highly :e-
munerative contract To- u commission
if he could collect these bonds. His
plan was simple. One State can sue
another. Under his plan, it is said.
$4,000 of the bonds were given to
South Dakota, and South Dakota sueu
North Carolina on them. The suit was
decided in favor of South Dakota. COW
ering principal and interest of the
bonds, amounting to about $22,0
It is supposed that Mr.. Pettigrew now
proposes to secure standing in court
for private bondholders by some plan
of intervention, and thus collect their
claims against North Carolina. 1t IS
said that he has secured contracts for
collecting several million dollars of this
kind of claims in various Southern
States"
The Supreme Court granted the
Shylock demand of the pound of flesh
nearest the heart and provided how #
should be obtained. but it remains to
be seen whether this State will per-
NIT "the shedding of one drop of
Christian blood by furthering the de-
signs and schemes of the Shyiocks who
are behind this whole movement,
Within the past year they have been
buying up repudiated securities of this
and other Southern States and they
struck ile' in the South Rekota case.
North Carolina stands firmly upon the
declaration contained in the State
platform adopted in the Greensboro
State Convention of 1904. The con-
vention unanimously made this deliv-
erance:
'.After long and careful deliberatiOn
and conference with many of its cred
itOrs, the State of North Carolina adj
justed its debt upon a basis so fair and
honorable as to win the approval OF
the financial world and to secure rat
iicatiOn by nearly every creditor. At
tempts have been made to reopen the
question settled at that time by the
States Wisest and best men. The DEM
ocratic party of 1904 approves the set
tIement made i'm 1879 and will for
ever oppose any and all attempts from
any quarter to set aside the settlement
then made. 1t will abide the mandates
of the courts. but it will not consent
to reopen the settlement that was
alike creditable to the State and fair
to the holders of its securities
That was a wise, timely and SEN
sible declaration by the honest party
charged with protecting the welfare
and honor of the State. The refusal
of the attorneys for the bondholders