The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-04-01
IMITAToRs OF SOUTH DAKOTA.


move of a syndicate of spectators
who own millions of repudiated bonds
of Southern States. There are so
many evidences of this that the action
that North Carolina ought to
take with reference to those
was not easy to decide. The State
had always been ready to pay every
cent it received, and after long con-
sideration it was decided to pay every
dollar received with interest on that
amount with interest also on the
State has put behind it all the bonds
of that character upon which there
was any claim of a lien upon stock
owned by the State.
The Richmond Dispatch yesterday
shows that the spectators in these
Southern bonds are getting ready to
take the second step. 1t says that 'the
State of Maine recently refused to ac-
cept a donation of Virginia debt GER
tifcates with the view of suing this
State, but it is not likely that other
States will take as high view of the
natter
It's prediction comes true. for bill
has been introduced in the General
Assembly of New York by Mr.. Head
to make the Empire State the agent
of the spectators to enforce the col
lection of bonds issued by corrupt
Reconstruction Legislatures which the
States have repudiated. Here is the
referred to the Judiciary COMMITTEES:
Section l. Whenever any person or
persons, copartnerShip, corporation or
association shall give. beQueath or as
sign to the State of New York any
bonds, warrants. chooses in action or
other obligations of any other Stale.
the governor is hereby authorized in
his discretion to receive. and accept
the same for the benefit of the State
and the right and title thereto anu
therein shall thereupon pass to and
vest in this State, and the same and
all the proceeds thereof when collected
shall be held by the comptroller in
special account or fund subject to be
appropriated by the Legislature only
for the support of common schools,
or for the promotion of some educa-
tional interest in the State.
Section 2. Whenever it shall be
necessary to protect or assert the right
or title of the State to any such bonds.
warrants, chooses in action or other OBJ
legations so received. or to collect or
enforce the same or any part thereof.
principal or interest. the Attorney
General is hereby authorized and oil
rected to take the necessary and
proper proceedings or to bring suit
thereon in the name of the State IN
any court of competent jurisdiction.
State or Federal. and to prosecute all
such suits or proceeds to termina-
ton.
Section 8. This act shall take effect
immediately.
Behind this bill is a coterie of the
most powerful holders of stocks in
New York. Not many months ago
one of the first lawyers in North Caro-
lima was in New York on business with
an officer of one of the greatest trust
companies. When he had finished his
business, the officer of the trust COM
pany asked the North Carolina law
yer if he knew where he could buy
any North Carolina Special Tax
bonds. "Our company does not deal
in these securities he went on to ex-
plain, ''but it has been made the de-
pository for such bonds by parties who
have been engaged in buying them up.
OF course they do not pay much for
them, but they think the day will
come when they can force the col
lection of these bonds" The lawyer
told him that these bonds were utter
ly worthless and nothing could ever
be realized for them and pointed out
that the Constitution of North Caro-
lima contained a provision, voted into
it by the people, forbidding the levy
of any tax for the payment of the in
terest and principal upon these dis
honest bonds. or in any way recognize
ing them. The New York banker re-
piled: do not be SO sure they win
never be paid. OF course there is the |
risk to run, but let me know il you
can get some of these bonds at low
prices. The gentlemen who have |
made this company the depository |
wish to buy Them
1t is wei that the Constitution OF
the State forbids any recognition of |
hose fraudulent bonds; otherwise |
some North Carolina fellows more !
holy than thou would be clamoring |
for their payment in full with ac-
erued interest. If North Carolina |
;peculators are interested in the Spe- |
,ial Tax bonds. as they were in the
south Dakota bonds, we will yet hear |
such advocacy by their tools if they |
see the slightest chance to mulct the
State.
Misunderstanding about trouble
Why the South is going to have plen-
y Of it when 1.-The system" begins to
demand that the courts stretch the
eleventh amendment to enable them
% get rich quick. The big fortunes in
mines and manipulations have about
passed, and the New York crowd is
ool1ing for another scheme by which
hey can get something for nothing.
gainst this day they have been filling |