The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-01

efforts TO effect an adjustment be-
tween the State and the bondholders.
I'm their interviews with the Gov
ernor, both had expressed their desire
to avoid dickering back and forth
concerning the terms upon which an
adjustment could be reached.
Under the repeated requests of the
Governor that the bondholderS should
be urged to name the lowest possible
amount ut which all adjustment could
be effected, counsel returned to New
York and saw not only Mr.. Schafer.
the representative of the two hundred
and forty-two bonds, but also the in
diVidual bondholderS whom he repre-
sentcd.s With great difficulty counsel
finally secured authority TO come to
an adjustment on the basis of the
payment of the principal of the bonds.
His instructions were not to make this
as n proposition unless he was as
Sured that 1t would meet With the APP
prevail of the committee, but to indi-
cate to the committee. With entire
frankncss. his exact instructions. aud
the minimum amount at which SET
Element was possible.
such Il great concession was not
deemed possible when the Lcgisla
ture convened. This offer is less than
thirty-seven per cent Of the amount
admitted to be due upon the bonds. 1t
is only fifty-seven per cent of the
value Of the North Carolina Railroad
stock. pledged for the bonds. now in
the possession of the State. 1t is
about sixty-one per cent of the money
which has already been collected ~
the state as dividends upon this stock
which was pledged 10 the bondholders
rs security for their interest rs il
accrued. These dividends. in justice
and fair dealing, as we'll as in law, be-
long to the bond-holders.
This is less than one-half Of the
cost of the bonds to the bondho.d-
ers.
This was not communicated to the
as n formal proposition,
because, as was stated TO the commit
tee, the bondholders could not afford
to have q proposition so liberal,
amounting almost to a surrender of
the very principle for which they were
contending, as we'll as an enormous
financial loss, rejected.
ut was. however, distinctly stated
to the committee that the bondhold-
in writing, if any assurance was given
that it would meet with the favorable
recommendation of the committee: 1
or such an offer, if made by the COM
mittee. would be accepted. At the
same time counsel We're frank in stat
ing upon Jnelr PROFESSIONAL WORD, mat
having. made these extreme conceS-
sions. no further reduction was posi-
BILE, and no counter-proposition of less
could be entertained or even
transmitted to the bondholders. IN re-
Spouse, therefore, to u telephone mes
sage just received. in which il is
stated that the committee are dis
posed to make a counter proposition
based upon a principal sum of two
hundred and fifty dollars, with inter-
est added, which will amount to one
hundred and ninety-eight thousand
($19S,000) dollars for the two hun
dred and forty-two thousand bonds.
counsel with great respect. and with
greater regret that their statements
solemnly made to the committee
should have been regarded merely as
the beginning of negotiations instead
of an ultimatunl. respectfully beg
leave to withdraw the suggestion made
on yesterday. unless the committee,
upon further consideration, should
recognize that the suggestion was
made either to be accepted or de-
clined, and not as a basis for future
very respectfully.
~. G.. RICACD.
II. II. BUSBEE,
Counsel for EondholderS