The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1907-01-15
SPECIAL TAX BONDHOLDERS
Baked

The newspapers have made mention
of the recommendation Of Governor
| Earod, Of South Dakota, in his mes
| sage to the legislature, that the state
refund to North Carolina the sun re-
covered in the bond suit. From the
News and Observers Washington cor
respondent We learn that copies OF the
message were received in Washington
On Friday, and Senator Kittridgc. OF
that state, supplied u senators and
representatives, with them. From this
message it is learned that a commit
tee of North Carolina bondholders"
not only induced the state of South
Dakota to accept the Western railroad
bonds and bring suit on them, but
also sought to induce that state t o ac-
cept fifty thousand dollars of the re-
pudiated special tax bonds of this state
but the offer vas rejected. Regarding
the return of the money and the sec
ond offer of bonds the governor says
in his message:
Morally, we ave no right to one
cent of this money, and we ought to
be brave enough and true enough to
give it back This money was clearly
intended for our university. She can
use, it, but it is tainted honey I
would send this money back to North
Carolina for her university and appro-
pirate a like sum for our splendid uni
versity. 1t is entirely plain that ingen-
uous schcmers are using our state for
private ends. Further, let me call
your attention to the following CORE
spondence. 1t is plain That designing
individuals would continue to use the
good name of the state of South Dako-
ia to collect questionable securities Of
other states.
New York. aMrch 27, 1906.
Samuel Fl. Elrod Governor South
Dakota:
Dear Sir-The committee of North
Carolina bondholders desire to donate
to the state Of South Dakota G5O.G00)
fifty thousand dollars of bonds of
North Carolina which, with interest
amount to about (S15O, OOO)
one hundred and fifty thousand dol
lars. Will 0 kindly inform us whether
the state of South Dakota will name
agent in New York to accept deliv-
cry OF these bonds, Or whether the
should be transmitted to your capital?
Respectfully yours,
r.. L..
"Pierre, S. D, April 2, 1906.
mr.. E.. L. Andrews, counsel for North
Carolina bond holders, New York
City:
My pea Sir-T beg to acknowledge
receipt of your letter Of March 27th
that you desire to donate to the
state of South Dakota &50,OOO) fifty
dollars of the bonds of North
which, with interest overdue,
amount to about ($15O,O0O) one hun
bred and fifty thousand dollars. {
Your kind offer is declined for the
eason that it seems to me to be against
public policy and good conscience.
Yours very truly,
=. "S. H. FLROD.
Governor"
The decision in the case of State of 6
South Dakota VS.. the State Of North
opens up endless opportunities =
or states to deal in the bonds and L
'ther obligations of sister states. 1t E
s not possible to eXaggerate the scan s
|als, the corruption Of legislatures and
tate officials. and the possibilities Of =
raft which would follow if states :;
hould start to trade on the power !
which the decision gives them. No
tate ought to be endowed with power q
o speculate upon u~nenforcible claims b
f indiviuals against other states. 4
Our state h no bonded debt. Our -
are contented, prosperous and =,
Apply, and We ought not to keep North /
money. She has a bonded b
ebt of s6,53e,00O, and she has not yet a
covered from the terrible conse- n
unces OF the civil war. Let us put u
urselves in her place, and then let us y,
G unto her as we would have her do u
nto us. p