The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-06-28

a last resort, the bondholders secured
certain States 10 provide for receivins
donations of defaulted bonds, which
thus would become the property Of
those State and could be sued on BY
those States in the Supreme Court OF
the United States.
And it IS under such ain enactment
of the State of New York that the
present movement is threatened.
From this narration, it will sufii-
GENTLY appear that the acts authCriz
ing the issue of these Special Tax
Bonds were conceived in sin and
brought forth in iniquity. They were
the fruits of a conspiracy to defraud,
the result of bribery and corruption
Moreover. they have not the war
rant of the Constitution of 1868. Sec
ton l OF Article j of the Constitution
of 1868 reads: THE General Assem-
bly, shall levy a capitation tax on
every male inhabitant of the state
over twenty-one and under 80 years
Of age, which shall be equal on each
to the tax on property valued at $30o
in cash. The commissioners of the
several counties may exempt from
capitation tax in special cases. ON ac-
count of poverty and infirmity, and
the State and county capitaiion tax
combined shall never exceed $2.0O on
the head
The limitation on taxation en-
braced in this section is therefore THAI
the tax on 100000 of property shall
never exceed $500. 1t is plain and
specific. The tax on 500 of property
for State and county purposes, cannot
under the Constitution exceed 66 2-3
cents. no matter how this tax may. be
divided between the State and the
counties.
There is q direction for laying a
specific annual tax to form Il sinking
fund for the payment of interest
There is also a direction that the
State shall have no power to contract
any new debt except in an emergency.
until the bonds Of the State shall be
at part, unless it shall in the same
bill levy q special tax to pay the in
terest at maturity.
However inconvenient the limitation
on taxation may be, the limitation
itself is plain and positive, and the re-
quirement to levy particular special
taxes is a rule of action to be OBJ
served within that positive limitation.
These bonds have been issued
under acts that are in conflict With
the Constitution of 1868.
The public had notice that the pro-
cccdings resulting i'll the election Of
1868 were void: that the legislators
then chosen were not elected under
any constitution in force At the time
of the election; that the acts them
selves were passed through bribery
and corruption; and that even Under
the Constitution of 1868 those acts
were without the warrant of law.
Holders who took ehcse bonds from
the poOl or improperly and illegally
acquired them before February, 1870,
and aided the railroad presidents in
their breach of trust, are not bona
fide holders in the eye OF the law
Holders VINO acquired them after FEB
ruary 1870, when the acts were re-
pcalcd, and the bonds were directed
10 be returned to the Treasury and
were fepudiated, stand in ever worse
plight.
So In addition to tho inIirmity of the
bonds in their origin, there is an in
irmity in the holders themselves
Sill the people of the State are
threatened with big club.
Whatever may be the determination
of the Supreme Court of the United
States, it will be net by the people of
North Carolina with resolution. They
will never pay a farthing ora these al
legged bonds, nor, if the plaintiffs
should recover Il judgment would it be
effective of any good purpose.
1t may result in strained relations
between the people Of North CAROLYN
and the people of New York; it may
result in cxhausting every means OF
retaliation that can be devised: but ii
VIII yield no money. The club will
not only be used in vain, but there
may result damage and injury to those
who furnish the club and stand at the
back of the men who WELD it.
Very respectfully,
S. a. ASHE.
tRalcich ~ c. June 81 1905.