The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-02
THE SOUTH DAKOTA BONDS.

| serious and careful consideration 70
| the South Dakota bond matter have
united upon a report recommending
to the General Assembly the payment
of all the outstanding bonds of
Schafer Brothers. They propose Il
payment on these terms: to pay
Schafer Brothers twenty-five cents
upon the dollar for MI the bonds they
hold and TO pay the interest on the
bonds and coupons since the settlc-
mcnt i'm 1879. The committee state
that in reaching their conclusion they
have been guided by the State Demo-
cratic platform which was in these
words:
"Aftcr long and careful dclibcratiOn
and conferences with many OF Its crcd-
itors. the State of North Carolina adj
iustcd its debt upon basis SO fair
and honorable as to Win the apprOVai
of the financial world and to- secure
ratification by nearly every creditor.
Attempts have been made to Reopen
the question settled at that time by
the states wiscst and best men. Tho
Democratic party Of 1901 approves
tho settlement made In 1879 and viii
forever oppose any and all attempts
from any quarter to set aside the set
Element then made. 1t Will abide the
mandates of the courts but IL will not
consent TO reopen the settlement that
was alike crcditablc to the State and
fair TO the holders OF its securities"
Under the recommendation of this
committee, the holders of these bonds
would get the same amount they
would have received il they had ac-
cepted the States offer in 1879. The
state would have paid in interest and
principal the amount the committee
now recommends. except the Interest
on the coupons. If the present holders
of these bonds had settled in 1879.
The committee believed that in law in
tcrest on coupons might be obtained.
When the holders of these bonds and
the committee had come very near
together, the question of interest on
the coupons seemed to be the only
matter that prevented an agreement
for a settlement. The committee. de-
sirous TO recommend what they be-
iieve is all the State should do. be-
licyed under the Democratic platform
il was right to pay interest upon the
coupons. and they agreed to add that
amount to the twenty-five cents prin-
cipal and tho interest on that princi-
pal since 1879.
This matter has been one of ex-
IRENE importance and great difficulty.
Many able lawyers believe that. in
view of the decision of the Supreme
Court of the United States. the hold
ers of these bonds might through
trades with other states enforce the
collection of all these bonds through
which the State might ultimately be
made TO pay over six hundred thou
sand dollars. IN view of that danger
the committee felt it to be their duty
to settle these bonds il possible in con-
forlmity with the State Democratic f,
platform. and in this desire they have
construed the platform to mean that |
interest 1.-THE 60 cents principal and !
interest on the coupons could be al
lowed.
This paper has all along declared |
that this General Assembly could
make no settlement contrary TO the |
declaration in the Democratic state |
platform. The committee having hon |
estly construed that platform to mean
that interest since 1879 should bel
paid. WE. accept their construction. ana
believe the people of North Carolina
will accept this construction, that the |
General Assembly will adopt the reso- |
luton and bill offered by the COM |
mittee. and the state will pay every |
dollar. with interest. that the wise
men who settled the debt i'll 1879 said |
North Carolina owed. 1t is proper
that the State should pay every dollar,
with interest, that it received. In the |
of the committee |
his is done, and the whole world viii |
say that North Carolina has been true
TO It's every obligation.
Governor Glenn and the special |
committee have honestly sought to /
reach an agreement with reference TO
these bonds that would pay every [
cent the State honestly owes. be true |
o the Democratic platform, and for |
ever settle all possible litigation that
might arise over these bonds. Tho
whole State owes 10 them a debt or |
gratitude for their earnest efforts TO 1
secure a proper settlement. as 1t owes I
Governor Aycock for the part his adj
took in leaving nothing !!
lndone to protect the interests of the |
State in this matter
At the beginning of the negotia-
lions the holders of the Schaffer bonds
demanded S395.O00 for their bonds.
The Governor refused to consider that
offer. They then made another ulti-
natum of 100000. That offer the |
Governor refused to recommend to
The General Assembly. Later on they
made another "ultimatum" of $242,-
900. The committee declined that
ultimatum'' and made as their best |
TO pay the amount offered |
by the 1879 settlement. plus interest |
up to the present time. That propo-
sition was accepted upon an agree |
~ sNot oil yHnx