The news & observer., 1905-06-08

equals the entire principal. The trans
fer of this one-third proportion and its
enforcement by another State would
cost North Carolina as much as the
acceptance of proposition from the
bondholders to cancel the entire in
debtedness for the amount of the out
standing principal. AS a simple buSi-
ness proposition there can be no ques-
tion that it is to the interest of the
State to avoid the exertion of these
measures against her, and to adjust
this debt upon moderate basis, so
reduced as to be hardly perceptible
feature in her financial affairs.
The Special Tax bonds were issued
by the Reconstruction Legislature of
1869 and the State received next to
nothing for them. They were hawked
about and sold by the pound rather than
by the sum named in the bond. Just as
soon as the respectable men came into
power in North Carolina these bonds
were repudiated by the vote OF the
whole people in an amendment TO the
Constitution ratified by a tremendous
majority. These bonds were bought
originally for q song by folks who had
notice that they were fraudulent; the
men who have lately bought them up
to begin litigation, after having en-
gineered the South Dakota suit, paid
for them with the knowledge that the
Constitution of North Carolina forbade
their payment; and the real men be-
hind Carlisle, Butler Russell and the
rest have embarked upon the present
gigantic scheme in the hope of making
millions by some stretch of judicial
power or by soaring the State of North
Carolina into come compromise The
South Dakota scare was ,effectual for
three reasons: l. The State had act
ually received in cash twenty five cents
on the dollar; g The bonds were au-
thorized by legislators who had no
graft; 3. The State had pledged GER
tain colloteraf to their payment. These
special tax bonds stand upon quite a
different footing. They were fraud
ulent from the beginning and the Con-
stitution of the State forbids the pay
ment of a cent TO any holder of these
fraudulent bonds.
According to Mr.. Andrews the spe-
cial tax bonds amount to $11,400, 900.
The interest due is $23,940,0OO. This
makes a total of 5,340, 600 that he
says North Carolina owes, but he says
-(for which all thanksD the inter-
est more than double the principal,
may be cancelled if the State will
turn over to his syndicate the stock
it holds in the North Carolina Rail-
road Ana that's 1.-The milk in the
cocoanut" The nstigators of all this
bond deviltry will never be satisfied
until they get the control of the States
stock in the North Carolina Railroad.
This paper declared the day the
South Dakota suit was inaugurated
that it was but the entering wedge for
d fight to compel the payment of the
fraudulent special tax bonds and the
ownership of the States stock in
the North Carolina Railroad. Ii gave
facts showing that bankers in New
York We're buying up. Special Tax
bonds. The men now published have
been let. into the deal, maybe on the
are HIGHER UP''-men of influence
enough to secure a clause in the origi-
nal Arbitration treaty, men influential
enough to get both South Dakota and
New York to pass special acts to
further their conspiracy. The careful
reader of the magazines has seen not
few special pleadings for the purpose
now avowed-pleas to the South, now
that it is rich" as one puts it Ito re-
deem itself by assuming every dollar
of the bonds issued by the Reconstruc-
ton Legislatures. thus presenting a
spectacle to challenge the admiration
of the world
The State will never compromise
or pay a cent of this fraudulent debt!
81 see that the factional fight be-
tween the Rollins faction and the
Blackburn faction has for the time
ended" said a gentleman yesterday.
Keep your eye on the future. Rollins
will succeed Holton as District Attor-
ney, and Harkins will give way as
Revenue Collector to some man named
by Blackburn, probably Wagner"
Asked where he got the information,
the gentleman said sit came by grape
vine telegram from the conferences
beyond the Blue Ridge.'-Rhamkatt
Roaster.
The death of Hon. Beriah Wilkins is
national loss. He was for years a
Democratic leader and member of
Congress from Ohio before he became
editor of the Washington Post. He
was a courteous, honorable and able
gentleman who loved his country, and
faithfully served his day and gener-
alton.
No commercial or other body in
Greensboro has enthused over the
coming of the Republican organ or or
gans to that progressive town. 1t is a
live town and cannot be killed by one
misfortune.
Andrews? That's the name of the
New York man who does the talking
for the crowd trying to force the pay