Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1911-11-15
WALHALLA, SOUTH CAROLINA
TO COLLECT OLD STATE BONDS.
South American Government May
Bring Suit Against N. Carolina.
New York Times

Plans have been laid by represenI
tatives Of holders Of the repudiated
bonds Of several Southern States, par
ticularly Of North Carolina, to effect
an enforcement of their claims
through a suit by a foreign govern
ment in the event Of the failure of
the plan recently suggested to Presl-
dent Taft for voluntary arbitration
of the claims. This suggestion was
made in letter addressed to the
President by II. b. Hollins & Co.,
who have undertaken to act as bank
ers for the bondholders. The com
munication to the President seeking
his good Offices was referred to Sec
retary Of the Treasury MacVeagh.
The representatives of the bondhold-
ers, including the American represent
tative of the foreign bondholders'
committee, expect to have a confers
ence with the secretary some time in
the near future with a view to formu-
lating plans which they hope will be
| successful in bringing about arbitra-
| ton Of their claims.
Instead, however, Of resting on the
hope Of friendly adjustment, the
european and American holders Of
these bonds who are cooperating e
the South American republics to close
an arrangement under which this
| South American governn ent has al
ready agreed to accept a gift Of some
| OF these Southern bonds with q view
| to bringing suit for their collection.
Ih1S was made known by q represen-
| tative of the bondholders A similar
method OF collecting on the defaults
ed state bonds has already been ra-
| sorted to with success in the past,
and 1t is assumed that no diff1culty
would be encountered, In view of the
previous decisions of the Supreme
| Court, in an effort Of foreign gov
ernment to collect. This would not
directly, Of course, affect any other
holders of the bonds, but once the
validity Of any particular issue Of
these State bonds was confirmed ina
suit by a foreign geyernmentth the
ndholders would be in aspoaff36fY
IL terss
away enough Of the bonds to make
possible collections from the State
much In excess Of the amount which
the bondhc'ders themselves would
be willing 20 accept in settlement.
The present effort to collect on
these bonds follows a long series of
attempts to negotiate a settlement.
Ihe bonds, whose holders are repre-
Sentcd by those engaged in the pres
cnt movement, amount to about $2S,-
900 900, exclusive Of intertst. or
these bonds about 81 100000 were
issued by North Carolina, IS 100000
by South Carolina, $5,O0O,000 by
Georgia, and about $7,0OO,00O by
Mississippi. The accumulations Of
interest amount, perhaps, all told, TO
about twice the par value of the
bonds. In New York State alone, ac-
cordng to information gathered by
Edward l.. Andrews, New York coun-
sci to the London Committee of
North Carolina bOndholders, there
are about 10000 holders of repudi-
ated bonds OF Southern States.
| Abroad, aside from the large number
Of English holders, there are many
German as well as other Continental
holders 1t was said that the Ger
nlan government through the consul
lar representative, is manifesting an
interest in the present effort to make
a settlement.
Under law passed in this State
some years ago the State authorities
were authorized to accept gifts Of
such bonds, and bring suit for their
settlement, but no such step has
been taken by this State 1t is un-
dcrStood that an action OF this kind
was suggested to Governor Dix by
representatives OF the bondholders,
but that he did not approve the sug-
EeStiOn.