The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-02-12

nasty and Imprudent action should
not be taken. but with all the facts
thoroughly considered, We should take
such proceedings as will be alike hon
cradle to the State and at the same
time protect our tax payers as much
as possible. Respectfully submitted,
r. b. GLENN, Governor.
Schafers' Attorneys Letter
The following communication from
Schafer Brothers. accompanied the
message:
',ro His Excellency.
the Governor of North Carolina.
Sir:--"For the reasons stated in our
communications of January 81. which
still seem to us controlling. we did
not submit a proooSition for the set
tlement of the two hundred and
forty-two ten share bonds held and
represented by Schafer Brothers. In
that communication we stated in d.
rect language the lowest basis upon
which a settlement could be effected.
selves as bound to agree TO such a
settlement. if it can be accomplished
within reasonable time.
I'm order that every method of ar
irving at an amicable adjustment may
be tried, before the bond holders take
other steps to secure a whole or Il
part Of the money justly due them by
the state of North Carolina. we have
determined to make a final suggestion
in regard to the matter. Whatever
course the bond holders may take in
the future no fair-minded man shall
be able to say that they have not eX-
hausted every POSSIBLE means to come
to fair terms with their debtor. When
all hope of this shall have been aban-
doned then no man can justly censure
them for looking elsewhere for a pur-
chaser of their bonds.
When the State thought it desirable
to settle with the holders of the North
Carolina construction bonds. after a
subordinate Federal Court had ad-
Judged that they were valid obliga-
tons and secured by an enforceable
pledge of the stock of the North Car
DINA Railroad q statute was passed
which will be found in Acts 1879.
chapter 1873, entitled: An Act to adj
just and renew a portion of the State
debt
In our case, not a subordinate court
but the Supreme Court of the United
States upon the validity of the bonds.
and that they are secured by lien
upon the stock of the North Carolina
Railroad held by the State, not even
the dissenting members of the court
Cdtltu lilS III uucStiolIs tiiSiI ttiSSelt
being solely upon the question of
jurisdiction and the manner OF en-
forcing the Judgment.
While we are representing clients
who have received scant consideration
at the hands of the State we are not
the less interested in maintaining tho
financial integrity and reputation fol
fair dealing which ought to be a mat
ter dear to the hearts of all North
Carolinians.
We believe that if an act similar
to the Act of 1879. above cited, shall
be passed by the General Assembly.
and a commission of men of equal
standing with the gentlemen appoint
ed under that act shall be named. an
adjustment can be reached. If the
General Assembly shall see fit to limit
the power of such commissioners. re-
them from making any con-
tract to pay any amount in excess of
$3.50 per bond, the State would be
protected against any possibility of in
jury.
1t is unnecessary to elaborate this
suggestion or to ask you to do more
than to call the matter 70 the atten-
ton of the General Assembly, leaving
the responsibility with that body. If
this shall fail, the consciences of Slc
present holders of the bonds viii at
least ae"uit them of any want of con-
sideration shown TO the State. or of
any failure to offer extreme conces-
sions in their effort to reach a settle
ment.
Very respectfully,
"A. G.. RICAUD,
IF. II. BUSBEE x SON b
Attorneys for Schafer Brothers,