The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-01-06
south Dakota Snit.


Since my last message to the Legis-
! lature the supreme Court of the
United States has decided the case Of
| state OF South Dakota US. the State
of North Carolina Charles Salter and
/ SIMON Rothschilds. in favor Of the
complainant. The decree in that case
was as follows:
"A decree viii therefore be enter
ed which after finding the amount due
on the bonds and coupons in suit to
be $4,000 and that the same are
secured by one hundred shares Of the
stock Of the North Carolina Railroad
Company belonging to the State OF
North Carolina, shall order that the
said State OF North Carolina pay said
amount with costs az sui to the
State or South Dakota on or before
the first day OF January. 1905, and
that in default of sucn payment All
order Of sale be issued TO The marshal
of the United States Court directing
him 10 sell at public auction all the
interests of the State of North Car
DINA IN and TO one hundred shares OF
the capital stock of the North Caro-
lima Railroad Company. such sale 10
be made al the front door Of the
capitol building in Washington, ID.
c., public notice to be given of said
sale by advertisement in some daily
paper published in the city Of Raj
eigh, North Carolina and also in some
daily paper published in the city of
Washington"
Recently Attorney General Gimer
OF thjS State moved the Supreme
Court to extend the time for the pay
ment of the money 50 that your hon
orable body might have an opportunf-
ty to pass upon the question of the
payment OF the Judgment. The court
granted this motion ana has extended
time of payment until the LIST day of
April 1905. A short history OF this
suit may not BE amiss.
IN 1919 the State Of North Carolina
incorporated and chartered the North
Carolina Railroad Company by an act
of It's General Assembly chapter 81
acts 184S-'49, by which act it was
provided that the capital stock of said
company should be three millions OF
dollars, Of which two mission was to
lie subscribed by the state and one
miil-on b. private parties Al, OF which
said subscriptions were duly made and
paid into the Treasury of the North
Carolina Railroad Company. After
wards by virtue of the laws of 1854
90, chapter 81, section /, the State
subscribed and paid IN an additional
one million dollars fer an equal
amount Of said stock and the State is
now owner OF thirty thousand shares
stock of sad railroad company. III
order 10 raise money for the payment
Of this three million dollars sub
seription ii was provided by both of
the said acts that the State should Is
sue it's six per cent. bonds for three
million dollars 10 be due IN thirty
years from date and said bonds were
duly issued and sold. | was further
provided by said act that all Of said
stock held and owned by the State
should be pledged as security FOR
this three millions of bonds; that 'af-
edwards on the 18th day of Feb
ruary 1855. the Legislature OF North
Carolina enacted chaDter 22S OF the
laws of 1S54-'j5 ana on the 18th day
of DScelnber 1866, enacted chapter
106 of the laws Of lS6G-61, BY which
the State Treasurer was directed 10
mortgage Tor the security Of the bonds
under said acts such an amount OF the
stock owned by the State in the North
Carolina railroad Company as should
equal in it's par the principal or par
of the said bonds, to be used in aid of
the Western North Carolina Railroad
Company. and the said act of 1866
declared that said mortgage should
have the force and effect in law and
equity of a registered mortgage. III
pursuance of these acts the State of
North Carolina did issue her bonds in
aid of the Western North Carolina
Railroad Company with the following
endorsement upon them
State of North Carolina,
TreasureHs Department,
Raleigh, July /. 1867.
Under the provisions of an act OF
the General Assembly Of North Caro-
lima entitled an Act 10 enhance the
value of bonds to be issued for the
completion of the Western North Car
DINA Railroad Company and for 9th
er purposes ratified the 18th day OF
December. 1866, ten shares of the
stock in the North Carolina Railroad
Company originally subscribed for by
the state are hereby mortgaged rs
coll4terai security for the payment OF
its bonds
Witness The sienature of the pub