The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-04-19
SOMETHING DOING AMONG SPEC
ULATORS IN SPECIAL TAX
BONDS.


bonds out of the way, North Carolina
may now expect to be further
harassed on account of litigation or
threats of suits on the great mass of
special tax and other repudiated bond
issues Of reconstruction days. To
The end of forcing the collection or
compromise of these bonds was
doubtless due the inception of the
South Dakota gift and subsequent
litigation, ending in the compromise
of the Schafer bonds by the last Leg
islature and the payment of the face
and interest of the ten bonds, of
which "gift" was made to the State.
In the New York Tribune there ap-
pears the following advertisement,
double column and set forth in heavy
display type, which would seem to in
dictate that the campaign against the
State is about to begin:
NORTH CAROLINA SPECIAL TAX
BONDS.
Arrangements having been made for
the negotiation and collection OF the
above described Bonds, the holders are
requested to deposit their Securities
with the United States Trust Company,
pursuant to an agreement, dated
March Goth, 1905, copies OF which may
be obtained at the Office of the Trust
Company, No. As Wall Street, New
York
Deposits should be made before
April 25th, 1905, and Certificates will
be issued i'm exchange for Bonds.
Bonds already deposited with the
United States Trust Company may be
transferred under this agreement.
EDWARD T.. ANDREWS, Counsel.
JOHN G. CARLISLE.
JEFFERSON NJ. LEVY,
HENRY I'll. MELVILLE,
Il. e. WHICHER,
Committee.
VIM. KING HALL,
Secretary, 10 Wall Street, N. Y.
The special tax bonds have been, as
is we'll known, in litigation before, the
Supreme Court of the United States
having declared that since their pay
ment was specifically prohibited in
the State Constitutional amendment,
no levy could be made for their pay
ment. In the light of that decision it
is evident that the promoters of the
deal lay stress upon the South Dakota
decision, on what ground we do not
know. The activity in this dream of
speculators--the bonds having been
bought up by the thousands for a
song-shows however, that the long
expected renewal of the effort for
their collection is at hand.
Before the South Dakota decision.
while it was known that one State
could sue another. it was thought that
the principle applied only to lands or
boundaries or to bona fide money diff
ferences between the States at the
most. The hocus-pocus of the South
Dakota ''gift" and the decision sus-
tanning it was a shock to the sense
of justice of the entire South
With shaken confidence, but deter
mination fixed to resist to the last the
Old North State will await with calm
ness the move which is threatened in
the Tribunt advertisement-wha
course it may take.
This latest procedure ought to conr
vince every doubling Thomas that
The News and Observer has been right
all along in its position that the South
Dakota gift, suit, and decision was but
the first gun in the general engage
ment that is to be undertaken against
the whole reconstruction bonds repu-
dated by the South when the thieving
scalawags and carpet-baggers were
driven out. The spectators in these
bonds will first suggest compromise
Fortunately the State Constitution for
bids any dickering with them