The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-11-03
SECOND MOVE BY BUTLER, RUS
SELL AND NEW YORK
ASSOCIATES.


bends. We quote
Under the Constitution of the
United States a suit cannot be brought
against one of the States by citizen
of any foreign State. Under the re-
the United States in the case of South
Dakota against North Carolina, how
ever, a government may recover
against a State of the Union upon its
obligations.
The committee is now planning to
transfer some of the bonds of the de-
faultng States not to another State as
South Dakota, but to a foreign state,
the idea being that public sentiment
in the United States would induce the
Southern States to pay off the bonds
if suit should be brought by the for
eign states.
Venezuela and Columbia, it is an
nounced, have consented to accept
gift of some of the repudiated bonds
and to bring actions upon them against
the defauting States"
According to the New York Com
bonds also own like repudiated bonds
Of other Southern States and have eff
fected an organization by which they
have enlisted powerful interests in
New York and elsewhere. They have
offered Venezuela and Columbia to
give them one-third of their holdings
if they will bring suit. and to pay all
the expenses of the litigation and agi-
tation. The men who own these bonds
have purchased them for a song and
can we'll afford TO give these South
American Republics a big slice to per-
nit the use of their names for the ne
farious purpose in which they have
engaged.
1t will be remembered that, when
the arbitration treaty was before the
Senate last year. this paper and other
Southern papers protested agains the
adoption because it contained pro-
vision that would have made finding
of that court against a State in the
Union binding and final. 1t was
pointed out then that the provision
was incorporated in the treaty to en-
able Venezuela or some other like Re-
public to buy up the repudiated recon-
struction bonds, carry the matter be-
fore the Arbitration Court of Euro
against the Southern States, and bank
rupt those States by forcing payment
The President and Republican leaders
in the Senate pooh-poohed the fear
and said the section had no such pur-
pose and thew did not see how it could
TO
Bacon, the North Carolina Senator,
and other Senator's refused to consent
to anything that did not specifically
exclude any arbitration of bonds
claimed to be due by an American
State. This latest move shows that
this fear was we'll grounded and that
if the Southern people had not been
alert they would have been at the
mercy of arbitrators who would have
understood none of the conditions
surrounding the issue of those noto-
diously fraudulent bonds. and would
not have looked beneath the signing
by the men who were then in office.
1t was miraculous escape for us
the discovery of the Greeks concealed
in that Trojan horse.
But the men behind that movement
are resourceful and some of them are
INSCRIPTIONS. They succeeded in
their first attempt by inducing South
Dakota to practice a fraud on the
jurisdiction of the Supreme Court
That would not have succeeded but for
Dat nf
and Daniel L. Russell, Senator and
Governor of North Carolina when the
nefarious scheme was Matched out
But for their official position these
moral traitors would never have been
in possession of enough inside info
nation to prove successful Benedlct
Arnolds Their success then has en-
couraged them to go into the bus
mess upon a wholesale scale, and fail
ing to induce South Dakota to again
be a party to the wrong, they seem to
have obtained the consent of Venez-
uela and Columbia to give them a
standing in court.
Before starting the litigation, the
company seems to be determined to
try to work up public sentiment TO
secure payment and appeal to the
President to help them collect these
dishonest bonds, for the New York
dispatch goes on to say:
THE gift of the bonds, however,
according to Z w. Andrews, counsel
of the committee, must be bona f1de,
the committee recently sent letter
to President Roosevelt suggesting that
he urge the defaulting States to arbi-
tratc their debts
There is trouble ahead that will call
for all the wisdom and determination
of the Southern people to avert the
evils that this strong company of bond
spectators threaten to put upon the
States of the South. Their success
would be to almost confiScate State
property for the payment of bonds
conceived in fraud and brought forth
in iniquity. and for which the South
ern States received no benefit.
TITS NOT SEEMLY.