The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-04-07
Ghe Wlessen9er.
TIKI. BOND CASE SETTLEMENT.

IHIs tbONb VASE L..
We publish elsewhere in this Issue
a special dispatch from Washington
City to the Raleigh Post, giving an
account Of the settlement by the sCate
of the judgment held against it by the
state of South Dakota and also of the
payment of two hundred and fifteen
thousand dollars to Shaffer Brothers
for the bonds of the same issue heid
by them.
Governor Glenn is TO be congratulate
ed on the closing up of this matter.
The state has come well out Of it The
case has caused the governor and other
state officials great annoyance. There
can be no doubt that they have pur-
sued the very best course in the in
te...st of the state. 1t would have been
the height of folly for them to take
the advice of those democrats who
during the session of the legislature
stand pat" on this bond question: to
take no action whatever either as to
tie bonds held by Shaffer or those ."
which the South Dakota judgment was
based. Some of the governors advis-
ors urged him to allow the legal pro
ceedings as to the latter to take their
course. which meant that property Of
the state of North Carolina would be
put up at public sale at the door OF the
national capitol and that the just debt
due TO the holders of the other bonds
would be held against the state with
its constantly increasing interest and
with the possibility that at any day the
state might be confronted with a sec
ond suit of the South Dakota kind and
have judgment recovered against 4
for near Il million dollars. Such advice
though, generally came from men who
offered it unsought by those whose
duty it was to manage the finances of
the state.
FOr the ten ond held by South Da-
kOta the governor had to pay the full
amount of the judgment, which was
the ace value of the bonds and inter
est up to date. The principle amount
interest to seventeen thousand. The
state during Governor AycOck's admin
istratiOn spent about ten thousand dol
lars chiefly in lawyers fees and ex
penses in fighting this case. Had the
matter been settled earlier much of this
sum would have been saved to the
state.
AS to the bonds held by Shaffer, the
governor made a splendid bargain. The
amount claimed was six hundred and |
ninety thousand dollars. The debt Was
settled on almost the exact terms as
those proposed in the act of 1879 under
which a large part of the state debt
was refunded, only that in this cas-,
the state pays cash and retires thu !
bonds instead of issuing new securi-
ties to the ~bOndholders. TO do this, |
though, she has to issue new bonds.
These will be put on the market ana
no doubt will sell above par. :
SO, on the whole, Governor Glenn
should feel hat he has well conserved |
the interests of the state. He shOula
be fully satisfied with the results. We
do not believe that even those who were |
awhile back urging the opposite course |
to the IL he pursued will now find
fault with his action. In fact, we look
for some of them to claim for them |
selves all the credit for the successful
closing of this annoying and harassing |
incident. Whatever course these may
pursue the governor feels assured that
he has acted for the best interests of
the state and that the people who did
not take position against him on tie
question to gain cheap political nOto-
rietV aDDrOVo of what hp has done