The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-02-02
Gov. GIenn's Reply to
Shafer Brothers.
Continued from Page Five

1dSe Is lNt.J
tatives of the General Assembly con-
Cured. one of the counsel for the
oondholders left the city and had an
other meeting with his client, and went
| over the Whole question fully. urging
him TO make additional concessions
and to submit to large personal loss
With Il view of making q proposition
| upon a basis which every man who
values the financial credit of the State
would be obliged 10 approve. The
views Of counsel prevailed and Mr.
| Ricaud returned TO Raleigh authorized
| to make a final proposition embody-
| ing every conceivable concession
which the holders of the bonds in
common fairness, could be asked to
| make He was authorized to accept
| for the 242 bonds represented by
| Schafer Brothers $3.50 per bond, that
| is. $3G2, 500. This offer is less than
| 46 per cent. of the debt as adjudged
by the Supreme Court of the United
| States. 1t is only 81 per cent. of the
| actual cost of the bonds to Schafer
! Brothers 1t is only II per cent. of
| The actual value of the security pledged
for the bonds now in possession Of the
state, and il is only Il per cent. of
| the amount already collected by the
| state as dividends upon the stock
| pledged for the security of the bonds
since the date when the stock was
! turned over to the State under the
| adjustment of 1879. The annals Of
J North Carolina, and OF finance any
| where cannot exhibit SO liberal and
| just proposition. If the State is not
willing to do this much to redeem it's
/ pledge solemnly made in 1866 and to
! redeem its credit, il is useless to make
| q proposition of any kind.
'Fhese facts and figures We're COM
/ municated orally to your Excellency.
and as you had previously announced
your opposition to the former PROPOSE
! ton you were asked to consider these
/ figures in connection with your con-
| stitutional advisors and your counsel
and with the legislative representa-
| tives. if you desired to consult them.
The bondholders having made these
| great concessions were naturally un-
! willing to submit q proposition to the
| General Assembly if it was to be
stamped in advance With your disap-
! prevail. AS you had not heSitated
previously TO indicate your disapproval
| Of the larger figures. we thought that
after full time had been allowed for
consideration. you would be willing
TO indicate whether such q PROPOSE
! ton would De condemned in advance.
1T will be useless for the bond
holders TO make these extreme conces-
SionS by way of a formal proposition
if the imDrimatT of EXecutice disap-
prevail or hostility, is to accompany
or TO follow its submission To the Gem
cral Assembly
we understand YOU 10 say that the
4 bond holders have no right TO expect
!! from the Executive Department any
! indication of its approval or disap-
prevail of their offer. amended after
the previous conference 1t seems ia
counsel. therefore, utterly useless to
! repeat their efforts made in 1901, to
come to an understanding with the
state. No well-informed man can now
doubt that it would have been better
for the state to have met the bond
holders in conciliatory spirit at that
time. We honestly believe that it will
| be better for the State to meet the
/ bondholderS in a spirit of mutual con-
cession and forbearance now, but we
are unwilling to advise our clients
/ having made these extreme conces-
| sions. TO run the risk of meeting Exc
cutive disapproval upon the thresh-
hold. Very respectfully.
A. G.. RICAUD
i f. II. BUSBEE,
Attorneys for Shafer Brothers,
Governor Glenn: NO hing TO Trans
nit
+ February LIST, 1905.
"Messrs. A. G.. Ricaud and f. Fl. Bus
1 Raleigh, n. c.:
i "Gentlemen-Your letter of January
3Oth, relative TO North Carolina State
bonds held by your clients, Schafer &
Brother, of New York, has been care
fully read and considered by me Hav-
ing stated therein that you will sub
NIT no formal proposition to the State
for the settlement Of these bonds,
there is nothing before me to transmit
TO the General Assembly. If your
clients desire TO make in writing a
formal offer, stating what they will
accept in full payment Of all bonds
held by them against the State, this
proposition. accompanied by such
recommendations as / deem advisa BILE
Will be at once transmitted TO the
Legislature for their consideration In
1879 the State made your clients a
fair offer of compromise, which was
not accepted. Since then the State
has had no proposition to make. Tn
less, therefore, your clients desire to
take some action. / consider that there
is nothing before me requiring any
I further action on my part
! Respectfully yours.
/ "R b. GLENN Sioyernor