The Caucasian. (Clinton, N.C.) 188?-1913, 1911-02-16

and he further testified that on the
strength of this security he was en-
aoled TO sell the bonds at a hundred
cents on the dollar.
SO We see that If there was ever
an honest bond issue by this State.
or any other State, and that IL ever
the credit and honor of this State
was pledged in good faith to pay an
honest debt, that it was in this case.
The fact is, which everybody knows
and which no one will deny who has
any regard for the truth, that the
State could never have sold those
bonds for hundred cents on the dol
lar had it not been for this pledged
security which induced the public to
buy the bonds.
The Value of the Security Pledged.
Now let lis look for a moment at
the security which induced the public
to buy these bonds. That security
is very valuable. The State is now
and has for many years been getting
an income from this security (its
stock in the North Carolina Railroad
large enough TO pay the interest on
the first mortgage bonds, and have
left over S46,S00 each year more
than enough to pay the interest on
the second mortgage bonds. Has this
money which the State has been re-
ceiving and is now receiving ever
been applied to paying the interest
~ 1nr{O cy0
bonds? No. A Democratic Legisla-
ture repudiated these bonds and re-
fused to pay the interest as it became
due. Years went on, and the hold
ers of these bonds not only received
no interest, but the bonds became
due. and still the State refused to
pay.
When those bonds became due
the State could have paid them out
of its security and the income on the
same, without taxing the people
dollar. That security is so valuable
that out of it could be paid the prin-
cipal and the interest of the first
mortgage bonds and also the prinei-
pal and the interest of the second
mortgage bonds, and then the State
would have a clear two million dol
lars and more left over.
These are some of the facts that
were brought out in the suit before
the Supreme Court to establish the
validity Of these bonds. Is it strange
that the Supreme Court OF the Unit
ed States, with these facts before it,
held that these were honest bonds
and that the State was not only in
honor bound to pay them, but that
the State could no longer hold back
the valuable security and the large
income from it which honestly be-
longed to those who had been in
duced by the State to buy its bonds?
Is there a single honest man In the
State who wants to see his great
Commonwealth refuse to pay such an
honest debt?
Following the decision of the Su-
preme Court upholding the validity
OF these bonds and declaring that the
State could no longer refuse to pay
them, and could no longer hold back
Tic tdludUA0 cSN0KkAy anu IuS IuSOmt
from it to those who bought her
bonds, what happened? The very
next session OF the Legislature-be-
ing the Legislature OF 1905-pro-
ceeded to make final settlement of
these bonds. The Legislature ap-
pointed a committee. all Of whom
were Democrats, and instructed them
to confer with the Governor and the
Council OF State. to consider the IL
ability OF the State and to reccm-
mend settlement Of these bonds.
"A report of that committee will
be found in the House Journal OF the
Legislature OF 1905, on pages 1.14s
and 1,150. It recommended settle
ment OF thase bonds The report
closes as follows:
We believe this settlement is
both honest and just. and we there
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