The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1905-01-12

der said acts such an amount OF the
stock owned by the State in the North
Carolina Railroad Company as should
equal in its par the principal or par Of
the said bonds, to be used in aid of
the Western North Carolina Railroad
Company, and the said act of 1866 de-
clared that said mortgage should have
the force and effect In law and equity
OF registered mortgage. In pursuance
o: these acts::the State of North Caro-
lima did lesue her bonds in aid of the
Western North Carolina Railroad Com
pany with the following endorsement
! upon them:
Estate Of North Carolina, Treasurer
Department, Raleigh, July l, 1867.
Under the provisions of an act OF
the General Assembly OF North Caro-
lima, entitled, AN act to enhance the
value of bonds to be Issued for the COM
pletion of the Western North Carolina
Railroad Company and tor other pur-
poses, ratified the 10Th day of Deem
Der, 1866, ten shares OF the stock in
the North Carolina Railroad Company
originally subscribed for by the State
are hereby mortgaged as collateral Sc
curity tor the payment of its bonds.
"Witness the signature OF the public
Treasurer under seal of ONCE aud the
counter signature OF the Comptroller.
"KEMP P. BATTLE,
Public Treasurer.
rs. w. BURa1N, Comptroller"
The Western North Carolina Rail-
road. Company sold these bonds
for form twenty-five to sixty cents on
the dollar and cut of the proceeds pro-
ceeded to build said railroad. In
1879 the Legislature of that period
realizing the lmpossibility OF tho States
paying all of its obligations, passed an
act looking to the Communication and
settlement of the State debt. In that
settlement provision was made for the
compromise of the second mortgage
bonds at twenty five cents on the dollar.
The holders of the bonds with the ex-
eeptlon OF Simon Shafer & Bro. accept
ed this compromise, but they hold on
TO their bonds, amounting, according
to their lace value, to about $25O.O00.
In 1901, during the session Of the Leg
lslature Of that year, Messrs. Shafer
Brothers tiled their mem orial with the
Legislature asking for settlement of
said bonds. The Legislature declined
to take any action in the premises.
Subsequently Simon Schafer donated
ten of said bonds to the State of iSouth
Dakota and on October Z, 1901, the
said State OF South Dakota applied to
the Supreme court of the United
States for permission to file her bill OF
complaint against the State. Of North
Carolina, Charles Salter and Simon
Rothchilds, in order to enforce the
payment of said bonds. No demand
had eyer been made by the State of
South Dakota upon this State for the
payment of said bonds SO donated to
her and the first information l had OF
the purpose OF the said State TO sue
this State was noticed in the newspa-
pers of the country that application
had Eeen made to the Supreme court
of the United States for permission to
bring suit. In view OF the settlement
which was attempted to be made in
1879 and which was made with all of
the bondholders except the said Simon
Shafer and Brother and few others, !
deemed it my duty to have the said
suit defended. To this end l employ
ed eminent counsel to assist the. Attor-
ney Geneaal in defense of said suit, but
the court by vote of five to tour de-
cided the case against this State. 1t
now appears that unless the judgment
is paid the stock pledged by the State
for the security OF these bonds will be
sold at the capitol In Washington early
in April next. l am In entire sympa-
thy with the able men who in 1879
undertook to settle and commute the
State debt in North Carolina. l am
CERTAIN that they did what was honorable
to the State ard just to her creditors l
am equally certain that the Jurisdict-
lon of tie United States court oyer
this matter has been secured by chi
canery. It is certain also that the bonds
have not been Issued as provided in
the act. All of these matters were,
however, fully laid before the court
and that eminent tribunal has given
judgment against the State" ascertain
ing our Indebtedness and directing
payment Of the same.
1 an in accord witbe the Democratic
platform adopted at Greensboro, June
"a, 1904. That platform declared that
tae Democratic party approves tho
settlements made in 1879 and will for
ever oppose any and all attempts from
anv quarter to get aside the settlement