The Montgomery advertiser., 1906-05-20
$50 Umbrellas $2.OO.

December 19, 1866 entitled an act to enhance the value of the bonds to be issued for the completion of the Vest ern North Carolina Railroad and for other purposes" which, after referring to the prior acts of the state author izing the issue of bonds and stating that a portion of them had already
 And, whereas. 1t is manifestly the interest of the people of the whole State. that the residue of the bonds, when issued shall command a high price in market, therefore Be 1t enact ed, etc, that the public treasurer be, and he Is hereby authorized and direct ed whenever it shall become his duty under the provisions of said acts of 1854-55 and of 1S60-61. to issue bonds of the State to the amount of fifty thousand dollars or more to mortgage the State now holds In the North Car olina Railroad as collateral security for the payment of said bonds and to execute and deliver with each several bond deed of mortgage for an equal amount of stock to said North Carolina Railroad to constitute a part of said
 bond, and to be transferable in like manner with It, as provided in the charter of said Western North Caroli- na Railroad Company; and further, that such mortgages shall have all the force
 and effect in law and equity of regis tered mortgages without actual regis try
 Under this last act bonds were is-
 sued on the sum of S1,00O each, having this endorsement:
 State of North Carolina, Treasury De
 partment, Raleigh, July 1, 1867.
 under the provisions or an act or the General Assembly of North Carolina, of the bonds to be issued fols the com pletion of the Western North Caroli- na Railroad Company, and for other purposes ratified 18th of December, 1S6R SharaS nf the stock in the North Carolina Railroad Company, orig inally subscribed for by the State are hereby mortgaged as collateral securi- ty for the payment of this bond.
 These bonds were attested by the proper officials and seal of office and ran for thirty years, consequently be- came due in 1897.
 In 1879 the State of North Carolina appointed commissioners to adjust and compromise the State debt, and all of the last mentioned bonds were compro- missed with the exception of about $250,- 900. Simon Schafer and Samuel Scha- fer, either as individuals or as part ners, owned large proportion of these outstanding bonds, having held them for about thirty years. In 1901 simon Schafer gave ten of these bonds to the State of South Dakota. The letter ac- companying the gift advised the party to whom it was written that it would be the inclination of the owners of majority of the total issue then out standing to make additional donations to such governments as may De able to collect them and that donors of these ten bonds would be pleased of the leg islature of South Dakota should apply the proceeds of these bonds to the uni versity or to some of it's asylums or other charities
 Pricr to the donation and in expecta- tion of 1t, the State of South Dakota had passed an act which was approved March II, 1901, entitled an act to re- 1uire the acceptance and collection of grants, assignments, etc, to the State of South Dakota.
 The State of South Dakota. leave first having been obtained. filed It's bill of complaint in the Supreme Court of the Unified States. The case was decided by that court February f, 1904. The court held that it had jurisdiction over an action brought by one State against another to enforce a property rlg ght. and where one State owns abso- lutely bonds of another State which are specifically secured by shares of sto k belonging to the debtor State that court can enter a decree adJudlns the amount due and for foreclosure ana sale of the security in case or non payment leaving the question or Judg- meut over for any deficiency to De de- tPrmined when it arises; that under the special provisions of the State ln- vOlve1 the endorsement on bonds that each bond for $1,O00 is secured by an equal amount of the par value Of the stock subscribed for by the State, Is tantamount to a separation and identl- hcAtinn af the nurnhar of shares men