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3ew$ Am Observer. " V ( " rf i1" " 1 " FPBtiBBjED DaIXT (iXCEPT MOHDAT) AXD . Wtxt. Bi THIS NEWS fe OBSERVER CO 4. I. HoREK, Xdltvr. Daily onj-- jor, Ly m&M iwstpaia. . . T tun " 1 1 1 Weekly, iie yw, " l. j uMitn, " : ,r " - Ho rjima entered without payment, and nop per scat aAer ULe expirafjuiu 01 time paid lor. wei Isday, august is, isss. itovembcr eih. ! ! SATIOXAI4 "TICKKT. it ' 1 i 1 1 . I! I OR PBSIUKST : GROVEll CLEVELAND, . f li a lot k. . ji FOB VlCE-rUSIDEIT : ALLEN G. THUIIMAN, FUIi'iELECTDIlSTATK at Lahqb: ALKliKU M. WAIUfcl,,ot New llauover; HE K.-ibIt;gi)WICK, of Orange, SI l3isiitf ct; .Klectobs: 1st Mi-11". HiWVN, Jr., of Beaufort. fcn KisTi-,).Ml K:VUUI) AKlV"i Wilson. -M1iiit&--CHA8MSH B. AtfUCK, of Wajue. iin j i.- iIW'Alil W. 1'nU, Jr.uf Joimaton, 6T t .1 ft fXHtfitKV t Bnrrv. Vtm i i.-J . -H.L J. rtHBEKlON. of Stanly : 1 ;l i.rr."'YS. e i.u r.iL., 01 ireucu. ' llnS M . A'ANCE, of Caldwell. W.T. cltAWf-'OKi: o lfaywood. Hi 11 Ou j! '. sxixje: XIClIET. r FOB OOVERNOR : : DANIEL Q- FOWLE, of Wake. FOB LIETJt QOVKKN0B : TU0MA3.M. HOLT, of Alamance. For Associate Justice of Dreme Coart 1 T fill the the Su vacancy caused Ashe: by the Jeath of Thomas 8. JOS. J. DAVIS, ; of Franklin. , fot Associate Justices of the Su preme. Court under amendment to tbe - Constitution: r JAMES E. SHEPHERD, H of Beaufort ;. AliPHONSO C.AVERY, of Burke. -..JKB SXO&XTiBX OF STATE . WM. L. B1UNDERS, ; J of Orange. FOB TREASURES : DONAIJJ W. BAIN, : IV: FOB Bf EBINTXNDETI OF FCBL10 USBTBDO- T10S : . SIDNEY M. FINGER,! V of Catawba. " ' FOB ATTORHII GKHIBAL . tUEODORE F. DAVIDSON, VI A7IUIUUIUUV- :15 5 c: FOB AtJDITOB : G. W. SANDEBUN, ol j Wayne. FOR COARCS. I hi OCTH DISTBIOT : B. II. BUNN, - - of Nash.' " PUBLIC 8PEAB1KU. Fmger and Col. T. F. Davidson, the iej!uocratic candidates for Governor, r OHserintendent 01s labile Instruction ut 'Attorney General, -will address that people upon-the issues of the campaign atine .IQiiQWiBg limes and .plates : ' "' Si - Hayesyille, Wednesday, Ang. 15. franklin, Fridaj, Aug. 17. Highlands, Saturday, Aug. 18. Brevard, Monday, Aug. 20. ; . HndersonTille; Tuesday, Aug. 21. Ooiumbus, Wednesday, Aug. 22 Ratherfordton; Thursday, Aug. 23. Shelby, Friday, Aug. 24. 1 ttie local committees are expected and iiurged to thoroughly advertise these appointments by handbills and otherwise. ' . j i- j Sweb Whitaxeb, i 5 Ch'm'n Dem. State Ex. Com, APPOINTMENTS POK IIOM. U. II. BUSK AND HOI. U. W. SA.IDKKMS. Hon. B. II. Bann,-D emocratic can didate for Congress in the Fourth Diatrict, and Hon; Q. W. Sanderlin, , Democratic candidate for State Audi tofj will address the people upon the . issQes of the campaign at the foil lowing times and placer : . EolesTille, Wake county, Thurs day riAuguBt 16. Graham, Alamance county, Satur day, -Aug 18. . Swepsonville, Saturday night Au gust 18lh. ''' Siler City, Chatham county, Thurs day, AuguBt 23. : Hon. E. W. i'qv, Jr., Democratic candidate for Presidential Elector, . will be present at Durham, Hillsboio and $inithneld. ' 3XB WHITAXEB, , Chm'n Dem, State Ex. Com. I The Jflaipiicuulon. ThiBre will be a joint discussion of the issues cf tho campa'gn between Hoc. jDanicl G. Fowle and Hon. Oliver IL Dckery. Democratic and Repub lican candidates for Governor, at the follo-f irg times and places : Jlqnroe, Monday, Aug. 27. Wailesboro, Tuesday, Aug. 28. Albemarle, iWednesday, Aug. 2y. Tr4y, Thursday, Aug. 30. Ap-Iieboro, Friday, Aug. 31. Kiler, Cuattiam county, Sa'urday, Boj't.'l. Graham, Mondayj Sept. 3. Hififilwro, Tuesday, Sept- 4; liofboro, Wednesday, Sept. 5. V&ceyvilk-, T.hur8day, Sept. C. Iteifdavillo. Friday, Sept. 7. Wanut Cove, Stokes Oo. Monday, Sebt.flO, ilt. Airy, Tuebday, Sept. 11. Elkin, Wednesday, Sept. 12. Vadkinville, Thurbday, Sept. 1. Wlhbton, Friday, Sept. 11. I jrf xington, Saturday, Sept. 15. j fd kuville, Monday, Sept. 17. ' . Kit-lory, Tuesday, Sept. 18. Jjttioir, Vrfdnesday, Stpt. l'J. ijlurjzau'r.n, Thursday, Sept. 20. :J!ar.tin, Friday; Sept. 21. iJoresville, Iredell Co., Saturday Sev!. 2i- : SWEE WlIir.VKiK,- ; Cu'm'n. D0m. tate Ei. Com. fl'tiK amount of damage Mr. Par xBll 6sks in his suit again, t tho Leu doi Times is 50,00$ pounds, or $250, 000. 'There is nothing smull about tbi Irish leader.' riniour alex aadk' address. Wei regret that! we obtained a cot y of the ddreB pf pa pi. Alexander, the president of the Allianoa, too late lo permjt its publ Jeaticin in this iue. We H1 give it fin dur next. After speaking ot' the unparalleled growth of the Alliance in; this State, be points out lb e evda in she land to be reme- died. He FajSi j'The profit of farra iag are so sihaII itbat the tnoet rigid econ-ituy Las to he used to save" the homesteads; aad often a farmer real izes lens pro lit than if be hired hlm- self and family fr negro wages and lived ou negro rations. Why is this? Id is the great question for the Alli ance to solve.'' j He says that the farmers generally believe the mer chants are the cause of tbeir not re ceiving due reward for their labor. But, he adds, '-it ib not true that the merchants are responsible for the farmers' condition or for the system tt.at causes farming to be unprofita ble." What the trouble is he discusses m length, and k we will print his address in fuil Vijotnorrow we will not now attempt a condensation of it. We print today a full resume of the casq. brought against the State by MoitOD, Bliss & Co, through an . . it ' . h t r rfl 1 . - ageni jOi , tueiis, a. ix xeiupio, iru force the peoplq of Ihun State to pay the Special Tax! Bonds. This Morton is the man Col, pockery asks our peo p'e to vote for. Jas (Vice-President, to sit as presidmgrofheer of the Senate of the United iStates and give tbe casting vote, pdjrhaps, for a bill fore ing the people bl North Carolina to pay these special tax bonds. The amount of the special tax and interest is about f30,00p,000. It would ruin our people for ever. We propose to put in a ballot quare against Morton and his special trtx bond suit, and Dockery too. j ? ' Blaine was jto have reached his home in Augusta, Maine, last night, and today he is 0 open the Sate campaign in si speech at Portland. After the. State election, which is to take place September I0th,"he will go into the national campaign, taking the lead as the; facto leader of the Republican ptfrty.'; He is evidently the Republicaii kite of which little Ben Harrison is but the tail. He is expected to doj the most oonspiououa sailing in the ary regions of misstate ment and mystification of the issue for the purpose ' of deceiving those whose every interest depends largely on the triumph of Democracy at the polls in November. i ' -fm;. Wx see it 1 slated that J. Wiley Shook, a leading Republican of Hay wood county,1 editor of the Clyde Register, metriber of the national Re publican contention, etc, etc. has declared that-be is going to vote for Maj. Finger j for superintendent of public instruction ; that he cannot stand the igaoranoe of Mason, the Republican candidate for the office. Next ! The Democratic party is pre pared to wUcpme all witnin ita ranas ho are anxious to turn rrom the false gods 6t Radicalism. There is rtxtm aud to spire for the whole peo ple, in tbe '(Deitfocratie household. jtooiko from tie appearance of the members it the Farmers' Alliance we have seen, they are capable of takim? Wood Wion in nrn- ti . r,." ,;;r-7" special welfare of the farming inter- csts of the Stjite, and we doubt not that their consultations will be for the advantage of the people of the State. They butrnt to hava a sUnH. ins committee to ;i the evils that jburden agriculture here frying a tax shall state the Spa in North Crqlina and suggest reme- bjeot to which it is to be ap- dies. The chief of these burdens the isxwa axd Mb8ebveb has time and again pointed out, but the snbiaM ought to be carefully examined by a ; m m it is understood that the SeereUrv of the Treasirv ia abont to h;n . n hr,L. : 6 v,,uHMU rrgni to .IDS SUr F u-uu mit pay up me . bonds due mm wi a A ..11 1 a 1 a - m 1891 verv ilaDidlv.' W rin h... to pay dearly for them.but it is better to do (hat tbaju to;have the money re- maming idlt, knd the Republicans, it appears, do not oroooae to rliv tbe country bj- passing a bill reducing in-. i IT48 a very general wish that the Alliance will it the f nd of its regu lar session have certain proceedings which may be! opened to tbe publio and so afford ( the people an oppor tunity to see Something ot lhe con- eniiou anuita work tfu opportunity that is very niuch denired . very njuch desired. Tujt are g4tiDgj;eady in New York to vate , Judge Thurman sure enough wheh jhe goes to the metrop olis There will be no sham sponta ucivjr jU mm, case as mere was so conspicuously! in the case of the Blaine reception. . I vesatok iiftiDLEBKRaiR bas been knoc ked on tne head by a member of the uahoiie faction in a Republican meeting at YVoodatock, Va. Wood stock setms o be an unlucky place Laset J EBoiiE,the famous New York wit, Lay'gone (Lhe way of all flesh. II was in his ijune editor, politician, tiaancitt, Kportcmaii and after dinner sptate.- of ute. He was always a Democrat. 1 W'k h' i .) :the iFarmers' All ance w il siriko a heavy blow at the cotton baling trustJ No w, Cicely, be Baid as thev jseaud ib-rnselves on tbe. grand ' tand, "if iheiie is'antything you don't ' nndeibtaiid, jUfat afk me and I'd tell i you all about it." "Thank you, i (ieoige," roplfed Cicely. "Who ia ; that young uijiu go ng about with g'ahsen; is he,lbe unipin? "No: he's tbb soda water man. Here, young i iiiiiu, :ve ua (wo glioses ol Jemou. i 'rakes Magazine. j ; eu it royiueu r pr: aacmg en Man "Washijigton is a grat c.ty." No v Yorker-rf'You, bawo't got any zoological girdan;, Lave you?" " A hat's the matter with Oougresh" Texas SiXtingsi THB HORTOlf MJIT. THK MHJJOS SPIT BtFOBS THX CSI TED STATXS BtTPRIMX d$UBT AGAINST THli STATt OF ROBTB CAROLUrA Uor. of Uie News and Oteerver. iVtSIKOTOJI, Alg. 13, 188. .Sa taiwh bas been said and written abjut Ibe iut or suits of tbe .Virgin ia bon4 holders against that State, that it id surprising. the suit of certain Nortb Airftlina boudhlders has at traci( bo 'little at tu lion, in or out Bida of 1 H-limi s. Bat old Rp Van Winkl is haid to wake up and peo ple outfids of bis dominions are apt to tbiiik t&at be never gets to be widfl aWak. , Thfoy will . lied them selves .cnista&on in this nstac, nev erthelfess. ; In the ease against Virginia there is no dispute about the validity of the bond! and the only ground of controversy is, that the State author i ios sre lgghng and halting about tee payment ot tne aoerumg and ao crued interest- Buvia the case against North Car olina, the issue is upon the validity of the bouds, which tho legislature and people deny, and are determined never ;'0 recognize and redeem. The suit la foe the payment of the c upous on ony ten bond;-; but the bill of uompiainl before , the circuit court invites the cj operation of ail the holders of tnre millions worth of bonds, of" the same character. And the coupons On the, all over due for now eighteen year, with interest up on the over due coupons, which was awarded by the circuit court in this case, wut'run up a bill of ton or more millions against, the State. Tbe com plainant in this case is doubtless set up like the John Doe in an action of ejectrjieni, by all the bondholders. The transcript of the record of the circuit court of the United States for the eastern district of North Caroli na, explains' the origin and nature of tne BUiu it is numoereu . a,im, on the Supreme Court docket; and the appeal is entitled: "The State of North Carolina and WiiliamiP. Roberts, Auditor of the State ot North Carolina, appellants, vs. AUr&l hi. Temple." "Appeal from the Circuit Court of the fjnited States for the Eastern District Jof North Carolina. " The tfanecr pt recites that on the 12th of: April, 1886, Alfred H- Tem ple, 0 citizen of the State of North Carding, by his solicitors, filed his bill "against the Slate of North Caro line,?' and William P. Roberts, the Audtorl of the State," and gave bond in thjs slim' of three hundred dollars for the prosecution of the suit. 'The foil' of complaint pUor that "your Orator" brings his bill "as well on behalf of tbe holders of special tax bonds of the State of North Cat o lina issued to the Wilmington, Char ioted and Rutherford Railroad Com pany who may hereafter come in and contribute to tne expenses of this suit pa upon your orator s own be half V ; ; The : bill proceeds to quote from tne Constitution of 1868, as follows ""Until the bonds of the State thai be at par, the General Assembly shall hav no power to j contract any new debt Of pecuniary obligation in be nail 4of tbe Mate, except to supply casual dencit, or lor suppressing in yasion' or insurrection, unless it shall in the Uma billievy aspecial tax to pay theoo$eieivtimn!Wl!Jrt, A?ni InerfTarc 10 woi aoy person, association, or corporation, except to aid in the com pfeUoA of such raijroads as maybe u.un,'n. tbe time of the adop- I r. uonrututwn, or in which theStotebas t direct pecuniary in terestl uuUjss the : subiect h ,,h mtttij to a direct jrote of the people ' f? State and lie approved by a mfJor?v 01 ' who shall vote 1 therein." (Article 5, section S ) "Every act of the General Assem 1 1 ... a jm -. a. 11 a . . pueu ana it shall be applied to no otheft purpose.!' (Article 5, section 8.) Ther bill proceeds to state that th wummgtou, (Jbarlotte & Rutherford itailrwU Company was chartered by me uenerai Assempiy on tbe 13lh o t '."rt?ry, wa; "ana inat it was un- W WOf the act of Jan af"i h n which the i98Ue of the bOhds f6r its rnmnlt.nn l.i . . ioo isu; a;so, that the bond of the Stat; at the latter I date. wr imil-r P1"- I - hrst secUon of the act of 18C9 the capital stock of the com Py P seven miJhdns of dollars, and tbe Pplo Treasure? of the State was hiuuiubu, iproviuea tne atnrthn ers, within ninety days, should aocept . L , ... , iut aenamens to the charter,) to su Dscnoe lour millions of dollars, on Denairoi tne ptate, to the caoital toca i tne company. ihf conditions upon which this aid to th companiy was civen bv the Slateiwere as! follows: The bonds were to b9 in sums iof one thouaand dollar eachi beaimg six pr cent in- iresij ana ; witn coupons attached, which were to be paid semi-annuallv. Tbe number of directors of the com pany 4yas limited to thirteen, of which number the Governor of the State was to appoint sevtn and the stock. holdejra were to Hect six. Within s xty days after the pjaynajeht of one million of the bonds by! the? State to the com pany a meeting; of tbe stockholders was to take place, new directors were to be chosen or ia re election to take placebo that, with the directors ap pointed oy the ; Governor, "a re or gauiziiion of ine oomDinv immftdi- ately,'' might be effected. becjjon 6 provided for "an annual tax of ene eighth of one per cent" "uporTll the taxable prorertv of th Stat which shall be levied, collected and paid in tb State Treasury as I other tu after b I, blic taxes, and the surplus. avintr the interest, shall 1 in vested ,.in securities of the Uniled btatea- or other safe seoutities and kept as a sinking; fund for the pay ment bf tbe principal money at ma turity:? ! Sec .7 provided, that "Ou or before the daw upon wfjich the first coupon of the ponds authorized to be issutd by tLU act shall become due, the presi dent ipf the above named railroad f r J' juviiu Treaaurer, either in cash or in ma .01tlliKtiV uhllll i rtftH V lha m,Kl;.. tured; nouponpends upon which the pubi'c. Treanrer is made to pay the intereai under this act, the sum of one htindred and twenty thousand dollars," The president of the com pany was to Tay to the Treasurer a like sbiu when theaecond coupon be came -due, eighty .thousand when the thud bcato.tt due ni forty thousand at tie uaturity tf the fourth. Bj Section 8 the Treasurer was required to retain seven hundred and twenty thousand dollars of the bonds as collateral security for the faithful performance of the conditions of the pri ced ic g section. But these col at era! sequrity bonds were to be paid out te the company as fast as the conditions of' the above nth; section were complied wiib And it is further provided, v:hat at;tho obd of two years from the maturity of the lirst coupon the sev eral pajuijul'S iu td3 by the president of the eonipav tire to be refunded in State bonds-, . Section 9 provides that the divi dends bi tun State upon the bends ownid b tlio State in the company shidl be applied, so fjr as may be neceebXrj, io the payment of the in terest of the bonds issued to the com pany. ! Sac. 12, Authorizes the directo'rs to receive subscriptions to the stock 01 tne company in lands, moneys, j"bondej (stock or other property. The: bill states the act was passed with the regularity required by the Constitution; that the stockholders aoeepSel the aa as an amendment of the cbarter of ,the company; that tbe public iTtaaurer thereupon sub scribed four million dollars to the capital stock of the company; and that about the first day of June, 18G'.), in part payment of tbe sub- eciiptjon, the public Tn.aurer is-iutd 1 to tbe company one thousand coupon bonds of the State, (amounting to one million dol'ars ) Subsequently in the same year ;wo thousiand more of the bonds (two millions of dollar), were issuod, and of the remaining one thousand bonds subscribed, Beven hundred and twenty were ret lined by the State in accordance v-ith tbe provisions of section eight of the act. The bonds are made redeemab'e at the National Bank of the Republic, in he city of New.'York, on the first dav of April, 1899'' I'Ue bill states that "your orator" "is the bonajide holder for the value of ten pf said bonds", eich being for the sum of one thousand dollars, and all of them having the coupons at tached, payable April iBt, 1870 aud semiannually thereafter. Tbe princi pal of the said bonds amounts to ten thousand dollars and the overdue coupons attached thereto amounted wben the decree was issued in the Circuit Court, to. nine thousand, nine hundred dollars. The bill states that the special tax waa collected in 1869, and -paid out for 'the coupons; but that in the month of January, 1870, afier the payment of some of the coupons bad been made, ard while Urge amounts 'of money arising from the collection of the special tax aforesaid remained in the bands of tho State Treasure, applicable to the payment of tbe coupons, "tbe State of Noitb Caro lina in violation of the Constitution of the United States, did by legisla tive resolution, direct the appropria tion of the said moneys then in the hands of the Treasurer, to other pur poses, pursuant to which invalid di rection such monev s were thereupon improperly expended by t he State of ficials, a .d are thereby lost to your orator1 aad the o'ber bondholders of the same class." The bill proceeds to state that af ter all of tbe. three thousand bonds had been issued, tbe State undertook to impair their obligation, and to that "Jltwlv&l, That tbe Treaaurer be instructed and directed not to pay any more interest on the special tax bonds until authorized and directed so to do by this General Assembly. Ratified 20th day of January, To the same end, says the bill, upon the 8th of March, 1870, the legith ture passed "An act to repeal certain acts passed at the session of one thousand eight hundred and sixty eight, and one thousand eight hun dred and sixty-nine, making appro prietibns to railroad companies." ine act repeals "all acts passed at the last session of this Wislat il rfl making appropriations' to railroad companies; and "that all b)ndi of the State which have baeu issued uu der said acts now in the hand i of any president Or other ofSoera of the ,.0--- poratipn, be immediately refuu led t tne xreasurer. The second section of the set i.r . Tides that any money in the f mu- collected for the paymint of th9 coupons on the bond isauad to the Baid railroads s'a!l b appropriated to the use of. the State overnmeut ana tnat. the counties ohall bs cred ited with the amounts Of the said tai paid by them, respectively. - a lie Dill pf complaint ouotes a sim ilar act, passed in 1871, forbiddmi tue payment or principal or juteres t on "any portion of the bonded del.t. of this State heretofore made or pre tended to be made by authority of this 8tate,f except the 61d debt, for which provision was made bv tb-r egisJature The act provides- for turning into the general fund any moneys collected under the special tax provision of the railroad charters. the bill of complaint auotes an amendm.nt to the Constitution, nro- posed by the legislature aad ratified by tte people on November 3, 1880, as lo lows : "a,0r shall tho General Assembly assuage to pay or author.ze tho e.nl- ectkln Of -any tax to par, either di- rectly or indirectly, express d or iui plied, any. debt or bond incurred or issued by authority of the convention I tt.e year 1808, or any debt or bond tncutied or issued by the legislature of tho year 1868, at its special session of 1:808 and its regular session of 1868 and 1869 and '70. excent th onifa issued 'to fund the interest of be publio' debt, unless the pur posing to pay the same shall have xif submitted to the people or bv tbtui; ratified by the vote of a major i y cf qualified voters of the State at a regular election held for that pur- The "complaint" states that none of the coupons belonging to said b ;nds whioh have fallen due since the 20ih:day of January, 1870, have been pa'd, though the stuue has been duly demanded; that lhe abov mentioned special taxes have been collected; that none of, the contracts perlormable under the eaid act of January 29.ii, 1869j have been performed, and that tbe government of the State has con stantly enforced upon its ollicials oomlliadce with the subsequent nul- I niyiKg enactments above set forth. Ti complaint siates that the fore go. ng facts show that a contract was euteied into between the bondhold ers ajid the State of North Carolina. I and executed by levying the tax, the collection of tne tax and the direc tion to the State officials to pay for the coupons and invest the surplus for the redemption of the bonds, i It is also urged that the acts of the legislature of the years 1870 and 1S74 and the constitutional amendment of 1SS0 are violations of tbe Constitu tion of the Uui'ed States, "loth in its contract clause and in the fjur teenth auieudia'jct there o " Such is the case of the cjinplain aut, and in view of the yearly ac cruing compound iuterest,fur tcghteen ; years, the great number of boudhold- ere, and to avoid a n.ultiplici y of suit?, he suggests ihatlit "constitutes a cae tit for a court of equity." He asks for-au injunction! as "necessary to protect your orator aud the said bondholders in their Fedeial rights," Slc. i "To the end, therefore, that the special tax bonds of the State of North Carolina issued under the act of tbe General Assembly of the State of North Carolina, passed on January 29, 1869, and held by your orator as aforesaid, or by any person becoming pa ty hereto, be declared to be s ill subsisting and valid contracts; and that the executed contracts of the State providing for the collection and payment of the special tax levied by said act be dec'ared to be still effectual and binding, and more particularly, to be uQ'tnpaired aud unaffected by tne subsequent legislation and constitutional proviniou above sat forth, and that tbe above resolutions of the Oensral Assembly of North Carolina, passed on January 29:b, 1870 "The act of the Gen?ral Assembly of Nortb Carolina of March 8-.h, 1870 "The seclious of the act of No vember 23d, 1871, above set fortb; ' The provison of tbe State Consti tution t-tt out in (Lo bill, fo :ar as it maybe thought to obaliuct or to ct uciirn the contention of your ora tor "Bj declared to impair the obliga tion of the contract herein above set fortb, and so lo be unconstitutional and void." Tbe complain: then prays the court o decree tbe exe utioa of the act of January 29, 1869. A writ of eubrujTft was ordered to bo issued bv the oourt, directed to the State of North Carolina and to VV. P. Roberts, Auditor. It was served upon Gov. Scales, Attorn y General Davidson, aud Mr. Roberts, the Audi'or, and returned to the clerk's office the first Monday in May, 1886, the same being rule day. "And at the said rule day, to wit,, on the first Monday in May, 1886, Theodore F. Davidson, At'oruey Gen eral of tu S;ac of North Carolina, Rufliu & Graham and Ba tie & Mor decai enter their appearance as solici tors for W. P. Roberts, And tor, and especially for a motion to dismiss in behalf of tho State of North Caro lina " "And at the next succeeding rule day, to wit, on the first Monday in Jun", 1886, demurrer of W. P. Rob erts, Auditor of the State of North Carol im, and motion to dismiss as to the S-.ate are filed;" which mouon to dismiss as to the State, and demurrer as to W. V. Roberts, "Auditor of the State of North Carolina, are aa fol lows: "T. 1". Davidson, Attorney-Gennrai of the State of North Carolina, on behalf of the said State, comes ami .consent to be a party de.ffcdiut to me complainant a bill of complain!, and moves the Court here to dismiss the p aid bill as to Baid State." The demurer of the Auditor denied his personal responsibility, and want of authority to disregard the laws of the b'ate. Tbe case wa- continued. At thf November term the oause was argued, and the decision reserved by the Court, contising of Judge nugu l, rKn, ot tbe United States Circuit Court, iind Judge Augustus n. Seymour, oi the district Court. And at the next term, held at Kal eigu, uuue, too, me aacree was made by Jadge Bind, in favor of complainant, Alfred H. Temple. The decree was that the State of North Carolina was indebted to Temple "for coupons held by him iu h s bill al leged, and now by him deposited wi h the clerk of this court, to tbe amount of niue thocsmd nine hun dred dollars, principal mouey, to gether with five tho isaud five hun dred an 1 forty five d ilrs for in terest due t hereon up to the presont term of this court, and also for in terest upou said principal niouev uutil paid, which amounts the said State is hereby adjudged and decreed to pay to tho said Temple. '"And it is further ordered that the 8a d William P. Roberts, as Auditor of the State of North Carolina, pro ceed in due course of his office to ex executu the provisions of the act passed by said State on tbe 29th of January, 1869, entitled 'An act to amend the charter of the Wilming ton, Charlotte & Rutherfoid Railroad Company to provide for the comple tion of said read and to secure for the State a representation in this company," so jar as such execution mar b j necessWy to satisfy this de cree ATBivcause is retained for fur ther directions, Sen. IIugu L. Bond, Circuit Judge. Ju1h Seymour, of the Eastern United States District Court of North Carolina, dissented from the decree of Jude Hand, but iu such cases, the opinion of tho Circuit Judge pre vails. The defendant appealed to th Su preme Oourt; and a certificate of the division of opinion between the two Judges was ordered to bi entered and certified to the Supreme Court. The transcript only s"ow, ou the part of counsel for the S:ate, the mo tion to dismiss the case, as to the State, and the demurrer of tho Attorney-Genera!. Doubtless the counsel for tho State brought out tho facts, when the cause was argued before the court. As this is an equity case, the facts may have great weight with the higher court to which appeal has been taken. Some of the leading facts in the case are ihese: Iu the fir-i p ace, the bouda of tho State, wui n tu act of 1869, for ameudiug tho cliai ii of the road, and lending i or s jbaoribing to it, four millions of stock, was passed, were not merely under par, but they were barely worth fifty cents .in the dollar. This , fact may oeyerineu oy a reiarence to tbe "Fi nancial Chronicle of that periods In Hie si-cond place, the ' company did not ask to be assisted by the S ate, aud was opposed to receiving tbe proffered aid, but yielded from necessity. This fact is proven by the sworn testimony of the then presi dent of the company before a eibai mission appointed hy the legislature at the session of 1871 -'72. The com mission was appointed to icver,.rate charge'' of f rand arid corruption prc ticed ia tl; Conventi.'u tf lu7?"68, and tho !r;i?'ia; uie of lS(W-'7t In I r.py : o ' hrt f !1 1 J-J l3y tt i'.u appr.r-r.ri- Wi.i'imjr- I t COIUUIIjSIOLi: j "tj. Do yju kto-v I r f tti- passage ol h b j the legtsiatu-, making th ution-c: !t OJO.000 to tbi iron, Charlotte A: Ra'baitot'd Ila.il j road! II so, state tho ciri- iui-t:irceH particularly. il Uowuu. fn-at- dent of the Rjad. when the bill was passed was the witness "Answer. When the suggestion was first made of passing such a bill through the legislature, the directors, at least all with whom I consulted and I certainly consulted wi h a' majority of them were opposad to any such measure, aud detenu ned not to come to Kileigh or to have any thing to do with it. S on aft-rardf, a bill having pased tbe Senate to divide the road into the Eiteri) aud Western divisions as distiuct corpo rations, th-j directors, thiuking that that measure would dustroy the value of the mortgage aud prevent tbe sale of the bonds, either in meeting or by agreement ou the street, sent a dele gation to Raleigh, 'of which I and Jadge Person wire memberf, to op pose its passage. Wben we reached Raleigh we found the legislature de termined to pass Borne bill which would take the road from tbe man agement of the then administration aud pu it in t he hands of the Repub lican party. "I told them fur ther that e were opposed to the pass age of any bill making appropriations, aud that if we were in tbe legislature we would vote against all such bills, for the State was in no condition to engage in such measures." But the directors and the company fou'id it necessary Lo succumb. One thousand of the bond', amount ing to $1,000,000, were issued to Mr. Cowan, which, he sayc, be cold at an average of 45 cents in the dollar. This first issue was noce-seary in order to get cont ol cf the rt ad. But Cowan was Bupersedtd at the first meeting of the atockboldets, in July, and Dr. William Slpm was elected in his place. Tbe State tbeu held a ma jority of the stock and of the diroc tors. The report of the commission ers appointed oy tne legislature "to investigate the charges of fraud and coi ruption," states : "In July, 1869. Dr. William Sloan was elected pr'jsident cf tb.B com pany, and afterwards in the month of October he received from ihe pi'blic 'Treasurer $2,000,000 of these bonds. Of these, $1,700,000 were hypothe cated with John F. Pckrell, ot Nev York, in January, 1870, to secure ad vances to be made by him to this company. From January, 1870, to November of that year, Mr. Picirell had advanced tiid sum f $391,026 52 leas $3,000 repaid Jauuary 27, 1870, by check on Bank of the Republic In November he makes a full return of. hia accounts wi h the company, from which it appears that he clauus as due him the nam of $14,850 65, and allows the company credit for tbe proceeds of sale of the $1,700,000 bonds, amounting to $159,250 net, and for the sale of 600jX)0c first which had been also hypothecated to secure the wine loans, amounting to iiww, ana maims as due him 44.- 850 66. "The price for which these spe cial tax bonis U reported as sold at, seventeen cents in the dollar, less seven and one half off, and the price of tbe first mort gage bonds is forty six and three fourths cents ou the dollar." It appears from this statement of the investigating eonimuiee that the company's president and aiTnt. n.i $1,700,000 of bonds, issued on the credit of the State, for the s. ll m r f 1159,250, or a tnfla over nin.) per cent, of tho nominal value nf tho bonds The moitgage bonds, which repre sented the property of the company, brought not far from half their face vaiue-j Ihese statements of the com missioners are made up mail iv f.nm Sloan's testimouy before them. Ha stated on oath that be had opposed tne appropriation for I Ik. A n.. .; . reuuesaee and Oaio Kaiiroad, uiiinlv on acoouut of the gauge. But when that company or, lather, when its friends in ihe Letrislature. agreed to cnauga me gauge, Jbe gave up his v c opposition, aud received fortv shares in me roau tneretor. tie suggested perhaps as a matter of delicacy that the bonds should be handed to his friend General Laflin, a member of the .Legislature. But this was not done; aud Sloan afterwards received twentv shares from Swepson iu New York, and directed that the other twenty l. I J I r suoum oe given to jjinin George SV. hwepson, president nf tne western vision of the Western North Carolina Railroad, another wit ness before the investigating commis siof, in explaining what had be'en done with certain bonds in his hands which he had borrowed from the president of another road, Baid : "Twenty of those I borrowed from "Mr. MaAden I gave to Dr. Sloan to induce him to sign an agreement en tered into in New York in the summer of 1869 by the holders of North Caro lina bonds in reference to th sain thereof." This is a somewhat differ ent account of the consideration fcr which the biibowas paid from that given by tne recipient thereof; bnt the main fact, that the new president of the Wilmington, Charlotte & Ruth erford Railroad, whom the Governor (Holden) and Treasurer (Jenkins) entrusted with the sale of $2,000,000 of Sta.t.e bond, rece.ved a bribe con sist.ng of at leas twenty shares of stock in another company. The ar ides of agreement beiweeu Sloau and Jha F. Pickrell, a New York broker, show that Sloan hypothecated two m.lhous of State bonds w.lh Pickre.l aud received yj,uuu uowu, upon a basis of ten tlolars on tie huulred, with powt r and authori'y to sell the same m ac coidancfa witn the rules of the stock board in default of pay meut.and "tne par y ot the hrst part agrees that if the party of the Becond part shall continue this advance to two hundred thoitsaml dollars and the stock board shall a;, any time throw out the said special tax bonds, so they shall not be a good delivery, then the party of the first part is to pledge and hypo thecate an amount of his company's first mortgage bonds, on a basis of forty cents ou the dollar.as additional collateral security for said advance, with interests and charges." Thirty days' notice ws to be given to Sloan be-fore the bond were placed ua tbe market Pickrrir t) account asr'i at the coin piny t-how lbt Sloan hypothecated v i b bitu 1,700 &ia;t! bond of a thou- Siud dollars iiiii, cr ti'jveu hundred i.'Hisaui i t.'get Ler v. iiJL .! lj , ' ''oi..lj uf U.o! com pa:: v 1 i-'.iomiLiiiiii.ii i in li t' ! Iha be a ivHi.o.Hl ;o one i.i;'!cn ii-ars worth. -"' SPS" ul iLe tut riie Slate .bonds. ioan, a " dif- j f riit tim bfg.umug January 21. 1870, Htd ending October 8, the same ! year, sains i ara.-uutiu.'j to ,396.- i .;7- 70. ; mat He oLurge i up upon each ! of thecje rei;uiariy. a Ivauct-B. 'two per cent per month for commissions, together with in terest, to ine. uaie ot eeitlement. cn October 15, of the same year. The interest was charged upou the money j advanced, upon the commissions, upon several hundred dollars of trav eling expenses and telegrams. The aggregate of these items is $141, 784 12 He' then adds another charge of seven per cent interest, upou this sum, amounting to'$14,320 24; which, added to the principal, makes an ag gregate of 4i4i36,104.3G. And finally, be charges per cent commissionb upou this Amount; bringing hiiu in if 11.402 61 u-'ore, aud making a giaud total of bans. couimissioLii, lMcr. -t rpou mte.ebt; traveling expenses and itlegnme, amounting to !? 167,506 97. So that tbero l.s lirst a charge of two per cent commissions per month upon each item- 6f the arcount, amounting to 24 per cent per annum, to which is added 2.J per cent commissions at tbe close. In like manner seven per cent interest is charged upon tach itam, with seven ;per cent again at tho foot ot the bill.; Sloan certifies this amount of Pick rell to be correct. Gen. L. G. E3teB, a Republican member of; the legislature of 1868-'70, appeared before the commission, and in an answer to the question, whether he knew of any money, bonds, or other thing valuable being given, offered, or loaned, to any member pf the contention or legislature, or to any State official, to influence- h a action in procuring tho passage of au act making impropriation" to n.il roads, cr for otaer purposes, through the legislature: "AnswerT-Yes. I paid John T. Dewetfetj (afterwards eltcted to Congress); $2,500, 'o bo divided be tween himself aud Bjii.n LafliD, to secure Lifl;n'.s vote Htid influence on a bill providing fo. tho ifsue of $1, 000,000 of boiid.i to the Wilmington, Charlo te" lix btiford Riailrcad." The witness' ciontioned o her in stani;es of bribery, not connected with this tase, including the one paid rto Sloan. The acts of Assembly of January 29, 1870, and of V arch .8, 1870, which the complainant n cites in his bill, and calls Upon 'he court to declare "unconstitutional and void," were passed by the same Republican legis lature which appropriated the four millions of bonds to the road. And the amendment to the Con stitution proposed by the legisla ture was! ratified by the people in 1880 by a majority of 111,930 votes, which amounted almost to unanimity, and showed that bo'h parties were agree ! in declaring the bonds invalid. In an analogous case before , the -.r-wU wuuui me otate, in 1869, Chief J ustice Pears -u gave an opin ion which would set aside these spe cial tax bonds as unconstitutional. It was that of the University railroad against the Governor and Treasurer. The 5th article, section 1, of the n--w Constitution piovides that ."Tee Gei eral Assembly t,hall levy a capita tion tax on every male inhabitant of the State over twenty. one and under fifty yt-ara of Bg-, which hhall be equal, on. each, to the tax on proper ty valued at three hundred dollars in cash. Thw commissioners of the sev eral counties may exempt from capi tation iax, in special cases, on account of poverty and infirmit viand the State and county capitation tax combined, shall never exceed two dollarsim the head " j The Chief Justice held that "The act under consideration is luWicIa'ion of the Consriiuiiuu iii thi.-: 4,ho ti;x levied by it disturbs the proportion whivQ by the C Mistituiioa, cap isiion tax m: t bt-'ar t ) the mx 'n the v.l i I Olprjperty, to wit: 'tie t .x on a pull shall be tiiudi to the lax uu .U,r. hun lied djllara worth of pri-pity ' The'iewo have the proportion inen follows a nrovi-ion. The St.At... nr,,l county tax combined j-hall'ntvor cx ved two dollars on fbe head;' an! tht, necesHury uTect is that the State aud county tax ou the value of prop erty shall uever exceed two dollars on three jhundred-dollars 4 worth of property; land the effect also is, that if the tax pn a poll ia Joes thp.n two dollars ihi a the tax on three hundred dollars wdrth of property must be less in tie same ratio. In other words, the1 tax on the poll is 'the standard' by which the tax on proper ty is levied But helChief Justice shown that tbe poll tax was fis.od.at the Fauu ses sion, in ''the . revenue act. at 105 cents per Lead, and the property tax, accordingly, at 3o cents per hundred dollars worth, or 105 conta for three hundred dollars worth Hence everv additional special tax, however small, must oe unconstitutional. The reoble of North1 Carolina en further. They hold that thd bo.lv which passed this and- OLher artii nt the k:nd, by which more than twentv millions of dollars were voted to rail roads, and then squandered and sto len by the agents appointed, was no legislature of the State. It was not elected by ;t'he voters whose qualifica tions were defined by the Constitu tion, under which the body professt . ! to act, nor under that which had been lai sside. . The so-called legislature I as cnosen on tne same tbree days in Apri', 1868 on which the Constitution was ratified ty the people, or the por tion "fcof them who were allowed to vote by the Reconstruction Acts. The act of Congress declared that the election for members of the Leg islature, Sfeaie ofbesrs and Congress men may be held at the same time and places with that for the ratification of tbe Constitution. The convention declared that these several elections must take place on the same day, if General Canby, the commander of District No. 2 should approve. Gen eral Caabyigave the order according ly, and the Legislature," "Governor" and 'Congressmen" were chosen un- aer tne military order not by the voters wlo;W6re qualified by the Con stitution of) 1868, but by those only who were allowed the cnvilo-A ,.V der the reconduction cu,ant w the exclusion of the thousands wfio were proscribed by those sots. It was doiibJess wt!. u the province ' f C ""Jgr Ms to defifi tha toudii ens i rcoEhtr:ictinr; but ite'tter Con--;es vrr : .v n'lut powr an a.ibi tiu'ily v::i w.u th.tll v 'U ..nd who .- not v.nr i" b'j t'T'j'tniEd Si,t.te . j. .. ii .iH'td by be V.I V.' lllri' ua . t(.f -mt-s. It 1 S ti" 'if.r'tt of sdiTfago wa) '.v " li'ttv U a.--.ndm!Ct - I d !v " l.'ie C: ;U't .lit Hit In Stutu i. ' utii'ij tb Uu: tl.tt aniid ' - be si..'idjd by thr- - dttrt t! f qvs x -1:. It. U. u .'lit. had ii fo .rtbs oi t!u Consist tit : ti tiCDi" of Voli ! : So home Sli tuld lse.WitlHwiil. it (3kr the plnrr of n PiMfot aiifl eo(ly PrHcrlilUiiN. No lost ot lime, no interf. n-.i with l".x"iess lil!i- lakit iv Su tinnfr tr..!!i 'it'siirr atlt i ti;: li.j:. Ii';l.., ;h! it, .V ,1,. p. i ,..r s h .i !!;. rui.dsl ;p"i int . -.iitl toij. ; l-v ,'.!. 'ft'. tlH' M H l! ..!'t D-'UCS r.'fl' 11. -'. '' '.!!. 1 'I i.i''ir;i i'V.ui'iail' ' ' il. i' ;-, I:''." ' . k t t i I'liif in.Mliiii j l .:iri'"iiS tfli ;iJtt't il'. i I t!ie sUnnai'l' ami s vts tens mc yn u. " 1 "l.;if t.in prHil. ltU" A PIIVrH5'S mlr!,:p for twenty .im OP1IO. Hiid liavi- nv. t LetMi iWp t put up a Tj;ptaltt' im ponnd ttiat wotiM. 'tkc SiinnioiiH fJver K'iriilatr. protnp'lv and atlwtualiy iootb tlir liver to an 'on,, aad at Ul? wnie titm- nid onli-d of w;ik. niK) tile dtKeatlTe and asHinutatiVf pitr of the ss tera. 1.. M. M. Ii . Washington, Ark. KXAMIlrKTOHRE THAT VOUOSTIHUIIKM'INF, fllstluKHislicd Irom all fraud ajul ImitatkHiH by our rwi 1 trade mark on frout orwrBper. anil i the jldo Uie teat aud signature ol J. if. Z..-iim & to. I Know, You Know, HE-NO STANDARD He-W Tea, Pure and unadulterated. Is the most healthful, economical, delightful and fragrant of a'l Teas. Take no imitations. -i, and 1 lb, pack ages, only 75c- pound. W.CiA.B.STROMCH. Wholesale and Retail Grocers and Candy Manufacturers. Importer's agents for He No Tes, Jobbing trade eupplied at Im porter's prices. Celebrated Magnolia Winter Cured Hams, 113-i to 15c, at W. C & A. B. STROXACH'S. Thurber's specially imported spices nnd London mixed spices for pickles, at W C. &. A. B. STRONACH'S. Pure old cider Vinegar, fcur 3 ears old, for. pickles, at W. C & A. B. STRONACll'S. Confectioner's A sugar, for preserv- ing, at W. C. & A. B. STRONACll'S. Genuine old Seed Tick Rio. coffee, v 20c. lb., at. W (1 A, It STRONACH'S. Extra ee'.ected broiling beef, 5 to 10 lbs, at W. C. & A. B. STRONACH'S. Extra selected freshly sm oled beef tongues at W. C. & A. B. STRONACH'S. Wilson's fresh crystal wafers, 1 and 2 lb tins, at W. C. & A. B. STRONACH'S. Augusta Creamery Jereey Butter, lb prints, at W. C & A. 11. STRONACH'S. Selected family North Carolina roe herriDgs, old and new packing, at fishery prices, at W. C. & A. li. STRONACH'S. Tho finest of all sugar cured hams, the Wesphalia, 16 2 3c lb, at W. C. &, A. 1. STIlONACfl'S. Use Bacilicide Elixir for prevention and cure of all malarial affec tions neuralgia and head ache of malarial origin S.IUU per bottle, at W. O & A B STRONACH'S. Wine of Cccou for rei-vuusproBtraLfn, brain exhaustion u,,d ail kinds of mental and pLfca' dcbilitv, $1 00 per'bmtU, W. C. &. A. B. STUONACti'S. Old toilet soap, lOe 1 r bi x, at W. C. & . -p. STRONACH S. We Three: Stiouucb's Pamtelas honest value Operas A. A- X A. 1 Conchas are the beht of all, 5c. cigars, ut W. C. & A. B. STl.ON.H li s Haxall Crenshaw M;!h- tin a!, h . W. C. & A. 15. STRONACH'S Tbe en a. Atluiitic it P,':fif 'IV -i CoV famous Thea Nec.ar Tt a, ."0c. lb, at W . C. k A. B. SIKONACH'S. Fiue'leas, Oolong, EniiGb Brwk-f-ibt Impei ial. Young Hjton, Gui.pyvidci- Jppn,, ut grocer's proiitn. at W. C. & A Ii. STRONACH'S. Extra cloie f n.;l y sVa cmcktru, equal o aiy. Sold at. 15c. lb , 01:1V 10:-. ih. at. W. C. & A B SI RONACU S New tummer cheese, Edan and l'icp apple cheoFe, at w C. .t, A. B. STRONACH'S. C CD -v o to c P CD O u 05 S3 & o I a 05 CO CO O O D3 r-i ft o OS -S- I c p-H o 1 o o S3 o m O o w o a o O DR.E.B; RtNKIiV Uomoeopatblo Pbyslolan, MiitS Halifax Street Opposite Cotton riatfora, Attends to the general practice of meli- ii"?peolii paid So diMa ( worms aad ohUArea. cm'
The News & Observer (Raleigh, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Aug. 15, 1888, edition 1
2
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