The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-21
THE DAKOTA BONDS
Negotiations for Final
Settlement Progress
ing Satisfactorily

Governor Glenn and Attorney Gem
eral Gilmer returned early yesterday
morning from their trip to New York
in the interest of a settlement of the
South Dakota bonds. While the at
torney for Dakota, with whom they
make a definite obligation to accept
the terms proposed by the State, he
indicated his willingness to advise
their acceptance by his client and, in
fact, wired the offer to the governor
of South Dakota and advised its ac-
ceptance.
AS will be recalled, the attorney for
the State of South Dakota is Mr.. Peck
ham, of New York, and it was with
him that the governor and the attorney
general were in conference. Their ne
gotiations were characterized by per-
feet good faith and were satisfactory
in every way, except in so far as Mr.
Peckham was not able to come to a
binding agreement as to the settlement
of the claim of South Dakota.
The basis of settlement proposed by
the State is understood to have been
to pay the ruling market price of ten
shares of stock in the North Carolina
Railroad, as under the terms OF the
issue of which the bonds were part
ten shares of that stock were pledged
for each bond outstanding, and the de-
cision of the Supreme court was, in
effect, judgment for 900 against
the State, with a sale of ten shares
of the said stock decreed as an alter
native to the payment of the judg-
ment. Even if sold, the State of South
Dakota would under the present de-
cision be still without the remedy or
the machinery for enforcing her claim
to the extent of it's face value, and
would have to resort after the sale of
AI- = ~r
Supreme court of the United States for
deficiency judgment which would
involve new and undecided questions
of law and greatly prolong and COM
plicate the litigation. Under the terms,
which it is understood were rendered
by the State, all this would be obviat-
ed and the State of South Dakota
would receive from her ten bonds given
by Schafer Brothers approximately
ST, 500, the amount which sale of the
stock pledged for their payment might
reasonably be expected to bring at the
prevailing market price.
When seen yesterday and asked as
to the negotiations, Governor Glenn
declined to talk other than to say that
he considered that the trip would
bring about a final settlement of the
Dakota matter. He would not say,
positively, what was the exact offer
made by the State, but expressed him.
self as greatly pleased with Mr.. Peck
ham personally and as confident that
South Dakota would follow his advice
i'm the matter of the adjustment of the
bonds which had been under litiga-
ton
Governor Glenn left New York on
Thursday night, stopping in Washing
ton on his way home, where he was
re-joined by Mr. Gilmer. who waited
in New York until Friday afternoon,
to ascertain the reply of the telegram
from the governor of South Dakota
in response to Mr.. Peckham's tele-
gram. The South Dakota people did
not commit themselves, as the matter
could not be fully explained by wire,
but did not indicate that they would
offer any serious obstacle to a deter
mination of the litigation along the
lines advised by their counsel.