The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-01-24
BALKED ADJUSTMENT
Eiqht of the Bonds on Which South
Dakota Sued Sent to Treasurer to
be Exchanged Held up For
Suit by Russell Who Had
Heard From His
Partner, Ricaud."

the bonds on which the State OF
South Dakota sued for it's judgment
against the State of North Carolina In
the Supreme Court of the United
States?
That is, in law. perhaps an imn1a-
terial question; as a point in the MIS-
tory of an infamy against the State,
as the key Of a suspected conspiracy
of men who were elevated by political
fortune to places in which they came
into possession of facts which enabled
them 10 map out a plan of campaign
by which they sought to enrich them
selves at the expense Of the people who
had honored them, the question is one
that serves to point both a lesson and
a duty.
Had it not been that his life had
precluded the possibility of his shame
one would have said that Daniel L.
Russell, fresh from the office of Gov
ernor of the State, would have hest
tated about embarking as counsel in
a suit which represented the attempt
to nullify the effort of a commonwealth
to emerge with honor from the travail
and the poverty of a war which sap
ped it's life blood and misrule
which added the black page of infamy
to the story of its crushed hopes and
the wounds that bled almost to de-
spair.
That this man Russell should have
plotted. even while he was Governor
~.
so criticised for fathering In an off,
cial capacity is thing that would,
again, be unbelievable were it not for
the personality Of the man himself
and the audacity of his corruption.
Yet here. my masters. is the circum
stantial evidence on which the hypo-
thesis above set forth is based. Read
it and ponder it n moment and then
discount at your own rate the value OF
the assumption of the people who, with
Russell are interested in the payment
of these bonds, OF the honor of the
State"
Dakota Bonds for Compromise.
On the oath of October. 1900. there
We're received by w. H. Worth. Treas
urer of the State of North Carolina.
eight thousand dollar bonds issued in
aid OF the construction of the Western
North Carolina Railroad. of an issue
which had been included in the offer
OF compromise at twenty-five per cent.
made by the legislature Of 1879. These
bonds were owned by Il man with a
Jewish name, which precluded the pos
sibility of his loss. Il man named
Lichtenauer. who had sent them to the
State to be redeemed in accordance
with the compromise proposed in
1879
In pursuance of their receipt and
his duty Treasurer Worth had pre-
pared four per cent bonds of the State
designated b vlaw to replace these
bonds for the amount of the designat-
ed compromise proposed.
Russell Holds Them Uu.
When he mentioned the matter to
Governor Russell, however the latter
directed Treasurer Worth TO hold up
the bonds, saying that he had letter
or telegram in regard TO them from
his ex-partner. Mr.. Ricaud. of Will
minGton.
In pursuance of this order and foB
the reason that the new bonds could
not be issued without the signature
of the Governor OF the State. Treasurer
Worth waited and did not issue the
new bonds as he had been requested
to do by the owner thereof.
MIR. iichtenauers Change of Mind.
Seven days after their receipt, on the
30th Of October. the treasurer received
a telegram from the owner OF the
bonds asking their return to him,
without availing himself of the com.
promise which he had already accept
ed Again acting under Governor
Russell's direction, the State Treasurer
returned the bonds TO Mr.. Licntenauer.
with this endorsement made after the
bonds mad already been cut by him
bonds had already been cut and
cancelled for the purpose of the
F.! forwarded 10 him:
The Record on the Bond.
After this entry had been made
and the new bonds prepared ready for
the si~na:urc of the Governor and
State Treasurer and before the new
bends were signed, Mr.. Lichtenauer
ordered the return to him of these old
bonds which Yves done. The cancel
lation had been stamped into these
bonds. and the State Treasurer signed
a certificate written on each OF these
bonds which reads IS follows: This
bond was sent TO the State Treasury
Department by Fir. j. VI. LiciItcnauer
2O-a2 Broad street, New York, and
the cancel alton stamped in 1t in an
t;cipation of tie issue OF new four
per cent Consolidated Debt bonds, for
which il VS. eXciianSedDic. Before
the ncn -four per cent bonds were