The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1906-10-23

state Convention OF 1906 refused to
endorse il. and ii was not Gnti3 III
year 1906. with 3utler this Cocoon
spirator in the South Dakota bond
dead in command that ms infamous
administration got a word Of approval
This proves two things: ]. That the
present Radical party would give
another dose Of Eusscllism if given
another victory. >. That its leaders
believe the people have such short
memories that the very men who
were responsible for the ~disgraceful
government in 1S95-1S99 think the
people have forgotten their crimes
against good government ana are
ready to entrust them with power
again.
Does anybody believe if Russell had
never been Governor and Butler had
never been Senator they would have
been RETAINED to think out" a way
to u the State?
1t seems that the Statesville paper
reported lit Governor as saying that
the ponds offered for cancellation be
longed to Schafer. The Governor refer
red to he bonds of that class as the
Schafer bonds to distinguish them,
as did the reporter. AS q matter OF
fact Governor Glenn gave the facts
as they Were-that a mar by the
name Of Lichtenauer owned some Of
these bonds-eight $1,000 bonds-and
he sent them to State Treasurer
Worth to be redeemed in the new
bonds in accordance with the act Of
1879 to Commute and Settle the State
Debt. The State Treasurer proceed
cd. in accordance with the act, 20 can
eel the Lichtenauer bonds and issue
new bonds in exchange for them.
When he took the new bonds to Gov
ernor Russell TO sign. what happen
ed? The Governor declined to sign
the new bonds, and ordered the old
bonds held. But let the Republican
Treasurer ten It in his own words:
l remember when these bonds
We're sent in. / held them up by the
order of Governor Russell, who sad
that he had received a letter or a tele-
gram from the man who was formerly
his partner, in New York. lie was
not the mar who sent the bonds.
Some time afterwards that gentleman
requested their return and | sent
them back to him. AS the bonds were
already cancelled, that certificate was
put on them to show that the cancel
lation was a mistake"
AS the permanent record of this
transaction there was placed on the
bonds. which had already been can
ceIled in pursuance of the compromise
offered, this certificate of Treasurer
Worth:
after this entry had been made
and the new bonds prepared ready
for the signature of the Governor and
State Treasurer and before the new
bonds were signed, Mr.. L~ichtenauer
ordered the return to him of these old
bonds, which was done. The cancel
Iation had been stamped into these
a certificate written on each of these
bonds which cad as follows: This
bond was sent to the state Treasury
Department by Mr.. J. NJ. Lichenauef
20-22 Broad street, New York. ana the
cancellation stamped in it in anticipa-
ton of the issue of new four per cent
Consolidated Debt Bonds, for which
it was eXchangeable. Before the new
four per cen bonds We're executed,
Mr.. L~ichtenauer withdrew this bond.
The cancellation was premature and
does not affect this bond. No new
bond or bonds has or ever have been
Used for this bond. The State Treas
urer returned it to Mr.. Lichtenauer at
his request.
state Treasury Department, Raj
eigh. n. c., his October so. 1900.
(Siened) "W. II. WORTH.
'State Treasurer
In other words, Governor Russell
at the end of his term, prevented the
compromise of bonds by the State 81
1.-THE request of his former law partner
Mr.. Ricaud. whose clients afterwards
bought the ponds from Mr.. Lichten-
auer. in order that Butler. Russell and
Ricaud might have q larger claim
against the State in the suit Which
they were already contemplating. Pur
another way. Russell deprived the
State of the difference in money be.
tween the price at which the bonds
We're offered for compromise and the
price at which the were afterwards
settled after they had become the
subjects of litigation.
That was in October. 1900. In 100
Russell went out of office. Butler
Went out of office in the March fol.
lowing. Though Russell had held VI
the bond exchange. contrary to hi:
duty as trustee for the State, he ant
his New York associates needed some
co-conspirators to get d chance t.
maintain a suit against the State. But.
Ter was in the Senate with Pettigrev
of South Dakota. Russell. Butler anC
Pettlgrew conspired together to ge,
south Dakota TO sell to the bond.
holder It's sovereignty. South Da.
kota sold itself. the suit was brough
by these parties by a fraud upon tht
jurisdiction, the Supreme Court by {
divided opinion gave a decision fol-
the payment of the bonds sued upon
the Legislature settled all the bond.