The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-18

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settlement upon the basis of paying
40 per cent on some debts, % per cent
on others, Is per cent on still others.
1t was chapter SO of the Laws of 1879.
1t was approved by most of the bond
holders; and was given widest public
ity. as is shown in section Z, as fol-
lows:
THAT the public treasurer is au-
| thoriZed to give public notice of this
plan for a settlement of the States
Indebtedness by advertising in such
newspapers as he may select"
1t is therefore seen that this thing
was not done in a corner" The same
| Legislature (chap. 26S) submitted an
amendment to the Constitution to the
voters of the State, which they rati-
fed, forbidding the payment of princi-
| pal or interest of the special tax bonds
except by vote of the people.
In 1881 Governor Jarvis congratu-
| lated the people upon the adjustment
/ of the public debt and said it would
no longer impede our progress.
Before that time there had been
conferences and correspondence be-
tween the creditors and the Governor
looking to some compromise and adj
justment No creditor expected the
State, emerging from a disastrous war
and more disastrous Reconstruction
period with all the savings of a CEN
fury swept away, to pay in full. Some
of the creditors proposed large reduc-
TONS and none demanded payment in
full. In June, 1877, Isaac Davenport,
Thos. Faulke, and VIM. Lummus, rep
resenting the creditors of the State,
wrote to Governor Vance requesting
the Governor, Treasurer and Attorney
General to meet the committee in New
York to consider IAN equitable ad-
justment of the public debt at the
earliest moment" In response to that
letter Governor Vance replied that
those officers had power only ito con-
fer with the bondholders, hear what
they have to say and report their pro-
posals to the Legislature" and there
fore declined to go to New York to
hold a conference: He added:
Were we clothed with the authority
to effect some arrangement that would
be binding even to the extent of Il
united influence upon the Legislature,
we would gladly accept your invita-
ton and our utmost endeavors should
not be wanting to settle this import
ant matter on such terms as would
be acceptable to our creditors and not
oppressive to our people"
The first suggestion of re-opening
the 1879 settlement was the filing of
a petition by Fabius II. Busbee, Esq,
for the New York holders of the
bonds, upon which South Dakota has
since sued, asking permission to sue
the State. The Legislature refused to
consider it. The next thing that
alarmed the people was when the Su-
preme Court approved the mandamus
upon the State Treasurer to pay
money which the Legislature had for
hidden to be paid. If that decision
had stood without question: it had
been settled that the Supreme Court
could compel the payment of money
the Legislature had forbidden to be
paid, what would have prevented the
South Dakota sued upon with man
like Russell as Chief Justice? 1t was
for job of that sort that caused the
railroads to try to foist Russell upon
the State as Chief Justice. The next
step was for Russell and Butler, as
tl.y~
to betray their trust to the people of
North Carolina and by a fraud upon
the jurisdiction make the South Da-
kota decision possible. The same gang
is behind the A. & n. G. r. II. now,
hoping that the outstanding bonds is
sued for that road can be paid, or
the road forced to a sale on the block.
The South Dakota decision is meant
as the entering wedge to a re-opening
of the settlement of the State debt.
fleet upon the wisdom, justice and
honesty of the settlement of 1879. The
men who effected the compromise and
settlement knew all the conditions.
which cannot be known today. As
showing that the settlement proposed
was fair, nearly every bond except the
w. n. c. r. r., and A. & n. c. r. r..
bonds held by certain interests for ul
terror purposes has been exchanged
for the new bonds, and no other bond |
holders have sought to reopen the |
question. The State should stand
firmly upon that settlement. Let
South Dakota sell what it has got
and let execution issue. This State
does not propose by any threat to be
coerced into treating one class of
creditors differently from others hold |
ing like bonds. If it re-opens the |
1879 settlement and pays the New
York holders who have an Interior
motive, it ought to recall all the bonds
upon the just terms proposed by the
State and settle with them upon the
same basis the HIGHER UP" crowd
is now trying to eXtort. 1t is right
to feed all out of the same spoon. 1t