The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-06-28
A LETTER TO
JOHN B. CARLYLE
Capt. S. A. Asbe Gives
History of Special
Tax Bonds.
IT'S AN ABLE RECITAL
The Bonds Issued BY the RecOnstruc-
tion Legislature Were Conceived
in Sin and Brought Forth in
Iniquity-.-1hey Are Illegal
and Fraudulent.

The following letter. written by Cap
tain S. A. Ashe, of this city, to Mr..
John G.. Carlyle. the head of the syn
dicate that has been organized for
the purpose of trying to compel the
State of North Carolina to pay the
Special Tax bonds, is as timely as il is
illuminating, interesting and convinc-
ing. 1t traces step by step the issuing
of these fraudulent bonds, shows that
they were void from the beginning.
and that the present owners took
them with notice of their illegality
and of the fact that their issue was
procured by corruption.
The full text of the letter is as fol-
lows:
Raleigh, N. c., June 26, 1906.
Hon. John G. Carlyle,
New York City.
Dear Sir: The papers announce
that you are at the head of a syndicate
to force the payment of certain al
legged bonds of North Carolina. known
as Special Tax Bonds. whose validity
has net been recognized by the state
for a generation.
AS part of the program, it is
stated that the aid Of the State of New
York has been invoked, provision hav-
ing been made by that State to accept
donations of defaulted bonds and To
sue on the same; and this threat is
held over the State Of North Carolina
as a club to beat her into acceding To
your demands.
In the role you are now playing,
you do not appear as a counsellor or
law a sworn officer of the court I'm
which you practice, but your employ
ment is such as any broker might un-
,l-x Il, Of
a, man who with club in his hand
takes his victim at a disadvantage. de-
mandug your money or your life"
1t Is proper. therefore, to advise
you that under no conceivable circum.
stances will North Carolina ever pay
a cent on those claims. You may
strike with your club. The victim OF
yovr assault may fall beneath your
blow; but that will not bring you the
cash. The Supreme Court Of the
United States may take jurisdiction: il
may enter any decree your ingenuity
may devise, but the club will be used
without avail. The people of North
Carolina Will never recognize the vail
dity Of those alleged bonds.
What they may do hereafter il does
not become me to forecast; but you
may be assured that the people OF
North Carolina, who will certainly
have the sympathy and cooperation
of the people of the entire South VIII
know how to take measures I'm their
own behalf
Let me refresh your memory: The
people of the South, including those
of North Carolina, having submitted
to the authority of the United States
on May %, 1865. President Johnson
appointed w. w. Holden Provisional
Governor of North Olrolna who con-
vencd Il convention which, in October.
1865, declared null tho Ordinance OF
Secession and otherwise took every
step required of the state To restore
North Carolina to the Union; ana by
the proclamation Of the President ana
by the action of the Chief Justice OF
the United States, North Carolina was
again a State in the Union. An cleo
ton was held November 9, 1865. for
Governor and the Legislature and the
autonomy of the State was fully eS-
tablished and maintlined in accord
with the President of the United.
States, who WAS charged with the duty
Of enforcing the laws of the Union; al
though Congress continued tn hold
that the territories of the several
Southern States had no organized gov
ernmcnts in them.
IN March. 1867, Congress passed
what WAS known as the Reconstruction
Act. in effect annulling the Statehood
of North Carolina. declaring tnSt no
civil government existed within that
territory and that North Carolina was
a disorganized military territory with
out constitution. Ia VS. or government.
The Act provided or the organization
OF a. government under the direction
Of the military and based on the suf-
fragc of the negroes and OF those
whites not declared disfranchfsed. The
orders of the Major General were
law; but the Major General gracious.
ly authorized the existing Governor
and other officers CT North Carolina
to continue in the discharge of theii
functions and allowed the courts to
recognize the State laws. except so far
as he might from time to time make
his general orders.
Immediately thereafter, i'm March.
1867 the Republican party was or
ganized in North Carolina, and there
upon the commanding general issued
his orders for the registration of
voters, embracing negroes. but not in
Guiding many whites.
The registration being completed. he
ordered an election to be held on No
vember, 10, 1857. under registrars and
poll-holders Of his appointment. for
delegates to a Constitutional ConVen-
ton, the returns being made To him.
The Convention met January T. 1858,
and the Major General ordered All
Continued on Page Three.)