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

What NofiIlG afolinians 81

Continued From Page Thres.l

/ sorts 81 stocks and bonds declined.
and in a few days the ruin was COM
lplete. The loss on margins seems
to have been somewhere in the neigh
borhood of 100000. The bonds de-
lposited as margins were sold for a
song. and the whole issue of special
tax bonds for internal improvements
lpetered out.
4 Andrew Jones, president Of the
Western railroad, did save enough to
lose a batch at faro aid Josie Mans
field. dotted courtesansSf New York,
it appears. got her share 0gt Of the
wreck. MftlsfF
4 / 1t was Waterloo f6r the North
Carolina railroad presidents and dis
astrouslys involved Swepson, who had
entered into the affair with large
lprivate fortune at his back He re-
ltired from the presidency Of his rail-
road. and LittlefieId wan .elected in
October as his successor, and the
funds of that company we're Sbso-
lMtely dissipated. Jones had moth
ing to show for the bonds Of his COM
lpany, while'D DR. Sloan, who was late
in getting his bonds from the treas
lusy, refused to share In the losses
Of the pool and deposited his bonds
with Pickerell and company. from
whom he was never able to redeem
! them. The whole issue was lost. By
4 their breach of trust the railroads
derived no benefit from the bonds;
nor didsthe state.
Quickly following these events the
Isame legislature again convened in
regular session. The few democrats
in the body were active and agrees
sive. But the leaders OF the repub-
lican party were determined to re-
trieve the disaster, If possible. They
pointed out that but St4,000.000 OF
1 special tax bonds had been issued.
land the taxes were coming In to pay
the interest. that the entire state
debt was but $4,000. 000. and what
Twas THAI 10 North Carolina? That
there was only one road open. and
that was to press on.fs Sustain the
Icredit of the state: tax the people;
pay the interest. and look to- the
future development OF the state to
settle the principal. But the people
were not so complaisant.
The public mind was greatly ex-
cited. At once measures were intro
dnced In both houses covering the
whole ground Of the special tax
bonds. Resolutions to investigate
railroad frauds; bills to protect the
interest of the state and to require
accountability on the part OF rail-
road officials; bills forbiddlng the
payment OF interest and arresting the
collection of special taxes; bills for
bidding the treasurer, TO issue any
more bonds and requiring the rail-
road presidents 10 turn into the state
treasury all on hand pndisposed OF,
and repeating all OF that legislation.
The excitement was intense. The
: democrats In the Legislature. backed
by tremendous public sentiment.
pressed these measures and we're
: heartily an dzealousiy aided by
those republican members who had
clean hands aud proposed to rescue
the state from the pile OF profitless
: debt that had been accumulated Sc
D recklessly.
III Charges Of corruption and fraud
that had been whispered came to be
openly spoken. and the question went
round. who had borrowed money
from Littlefeld or Swepson?"
. One week after the organization
Mr. Pou, OF Johnston, moved that the
T house 60 into committee Of the whole
: TO Investigate these matters, and
I after a struggle the motion was car
b ried. and the next day the committe,
< OF the whole house sat. The develop
d mems were slow. The committe,
n had to send for papers and witnesses
: Distractions were interposed a
; every step. IL was not until afte
the Christmas recess that work wa
i begun in earnest.
r On January 10. the senate passe,
q a resolution to appoint a committee
a OF three 20 investigate. and on tn
d. goth. Phillips. Bragg and Scott wer
5, appointed by Lieutenant-G overno
d Caldwell, bitter partisan. but
d man with clean hands, and soon be
Ie gan an investigation. The senat
te also passed bill repeating all thI
" railroad legislation. which came /
e. the house on Friday 10th, where
was fought with great desperation
le Dilatory tactics we're resorted 70 /
W defeat IT without avail. Motions /
IA amend. TO substitute, 70 refer cor
suined day after day, but the friend
ie Of the bill, under the leadership Z
al Thomas J. Jarvis and Mr.. Pou, DresI
se ed II on 70 its passage. After II ha
to lpassed It's third reading. a motion {
4, reconsider was successful By on
ID vote. and the bill was postponed "a
G. several DAYS BY a majority OF tel
IS II looked, indeed. as IL Littlcneld ha
"a fully RECLAIMED his mastery over N
Is. house. But eventually Mr.. Pou wa
IN able 70 carry his point and the bi
ia was passed. The acts we're all ri
IA pealed, and BY the same legislatuI
n that passed them.
H. The first act, passed February 2
,e- 1870, forbade the sale OF any Bon
nd and declared that the introduction /,
d that bill should be notice TO n