The Durham recorder. [volume] (Durham, N.C.) 1879-19??, 1910-09-29

ture, on February 20, 1870, forced
through bill directing the return
of all bonds unsold to the state treas
urer: and on March s, 1870, repealed
all acts authorizing the issue OF state
bonds, which repeating act appears
below.
Mr.. Andrews says II would be
"fruitless to recall these historical
events" But they constitute the
wool and warp of the transaction,
and cannot be ignored. They will
be found fully set forth in the ac-
companying letter to Mr.. Carlisle.
1 The people OF North Carolina were
not responsible for the election of
that legislature: il was not elected
under their constitution and laws:
nor. indeed, vas 1t elected under the
constitution Of 1868. The people of
North Carolina were not responsible
for the corrupt practices of that body,
for they were bound hand and foot
and could not control its action.
The constitution or 1868, under
which that body claimed to act, con-
tanned provision forbidding the is
sue OF bonds, when bonds we're not
bringing par value. without a special
tax TO pay interest; and also another
provision limiting the rate of taxa
ton. Special taxes we're laid to pay
the interest on these bonds, but these
special taxes largely exceeded the
constitutional limit Of taxation.
The iegislature had no authority to
lay such taxes: and no authority 10
issue the bonds without laying the
taxes. SO the constitution was vio-
lated. All persons dealing In these
bonds took with notice OF this in
trinity: All who aided In any breach
of trust have also personal inhrm-
ity; all who took after February 20.
1870. also had notice of the repeal
OF the acts, and OF the fraudulent
Issue, and OF the bribery OF members,
and OF the ring OF the robbers, and
OF their operations.
IL Is not known what government
Mr.. Andrews referred 20 when he
said THAT the amount would be
transferred to the absolute owner
ship OF government in whose hand,
the entire sum would be.collectibIe. "
lie Is familiar with the action OF the
government Of Rhode Island. Doubt.
less he has also been advised that the
law which ex-senator Butler, OF
North Carolina. procured to be pass.
ed IN South Dakota has been re-
pealed, aud that a strong. pure pub.
lie sentiment IN that state now
lrepndlates the action OF South Da-
kota in that matter. II Is observed
that in the letter OF Mr.. andrews
May 10. 1910, 70 the New York Stock
Exchange, the following language Is
used: by this settlement with
shafer brothersl North Carolina
avoided judgments 20 a much larger
amount. upon bonds which would
have been donated TO other states
for purposes OF suit" II is indeed
Interesting 10 know which OF oui
sister states can be used by the bond
holders committee for purposes Of
suit.
North Carolina has never recog.
nized any obligation to pay thess
special tax bonds, and. indeed. IN
1850, by an amendment TO the state
constitution. the general assembl,
vas expressly forbidden to pay an,
money on these bonds without frs
Submitting the matter 20 the people
Of the state. This amendment wa.
adopted by almost unanimous vote
the vote being li7.2ss for. and ONLY
5,f5S against the amendment. Tn,
same gnanlmity stiil exists. NORTH
Carolina will never recognize these
bonds as her obligations.
ON June rs. 1906, Capt. s. A
Ashc. historian. who was an actor II
public matters during the period dc
scribed, addressed letter 20 Hon
John g. Carlisle. then the counsel d
the bondhoidcrs. which. being a re
ci,al OF the historic facts. Is toda,
as conclusive a reply 10 Mr.. Andrews
address" as Il was 20 Mr. Carlisle,
threats. This letter OF Captain Ash,
had lis effect In financial circles and
followed By the strong and patriot,
presentation OF tho same matters b,
Hon. RIB, Glenn. then governor o.
the state. TO the governor OF New
York, contributed TO the Determining
the authorities Of the state OF New
York not 60 become o party TO the
schemes and intrignes Of the Carlial,
committee. II Is given In full with
certain added documents. as follows,
Raleigh. n. G.. June &c, 1895.
lion. John g. Carlisle. =.
New York City.
Dear sir.--The papers announc,
that you are AZ the head of a ayndl,
cate to force the payment OF certain
alleged bonds Of North Carolina
known as special tax bonds, whose
validity has not been recognized By
the state for a generation.
Az part OF the program, II II
stated that the aid OF the state ol
New York has been invoked, provls.
ion having been made BY that stat,
20 accept donations of defaulted
bonds aud 10 sue on the same: and
this threat is held over the state ol
North Carolina as a club 20 beat hen
Into acccdIng TO your demands.