Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1911-11-21
TO COLLECT STATE BONDS.

South American Government May
Bring Suit Against North Carolina.
Plans have been laid by representa-
tives 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 Presi-
ident Taft for voluntary arbitration
Of the claims. This suggestion was
made in a letter addressed to the
president by H. B. Hollins & Co., who
have undertaken to act as bankers for
the bondholders. The communication
to the president seeking his good Of
ices was referred to Secretary Of the
Treasury MacVeagh. The representa-
tive Of the foreign bond-holders' COM
mittee expect to have a conference
with the secretary some time in the
near future, with view to formulat-
ing plans which they hope will be
ton Of their claims.
Instead, however. Of resting on the
hope of a friendly adjustment, the
European and American holders Of
these bonds, who are cooperating,
have sent a representative to one OF
the South American republics to close
an arrangement under which this
South American government has al
ready agreed to accept a gift Of some
of these southern bonds with a view
Of bringing suit for their collection.
This was made known by a repre-
sentative Of the bondholders. A sim
liar method Of collecting on the de-
faulted state bonds has already been
resorted to with success In the past,
and it Is assumed that no difficulty
would be encountered. in view of the
previous decisions Of the supreme
court, In an effort of a foreign gov
ernment to collect. This would not
directly. of course, affect any other
holders Of the bonds. but once the va
lidity Of any particular issue Of these
state bonds was confirmed In a suit
by a foreign government the bond
holders would be in a position to force
a settlement with the state, under the
the alternative of their giving away
enough Of the bonds to make posi-
BILE collections from the state much
in excess of the amount which the
bond-holders themselves would be
willing to accept in settlement.
The present effort to collect on the
these bonds follows a long series of
attempts to negotiate a settlement.
The bonds, whose holders are repre-
sented by those engaged in the pres
ent movement, amount to about $685.
100000. exclusive Of interest OF
these about $11,0GO,000 were issued
by North Carolina, $5,000,000 by
South Carolina, $5.000.000 by Geor-
gia and about $7.O00,O00 by Mississip-
pi. The accumulations Of interest
amount perhaps. all told, to about
iwice the par value Of the bonds. In
New York state alone, according to
information gathered by Edward l..
Andrews, New York counsel to the
London committee Of North Carolina
bondholders, there are about 2O,OOo
holders Of fepudiated bonds of south
ern states. Abroad, aside from the
large number of English holders,
there are many German, as we'll as
other continental holders 1t was said
that the German government through
its consular representative Is mani
Testing an interest In the present ef-
fort to make a settlement.
Under a 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 understood
that an action of this kind was sug-
gested to Gov. Dix by representatives
OF the bondholders, but that he did
not approve the suggestion-Ne"
York Times.