The 1868-1869 North Carolina railroad bonds scandal took place in North Carolina after Milton S. Littlefield and George W. Swepson defrauded North Carolina

North Carolina

North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...

 of $4 million by issuing fraudulent bonds

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

 for a railroad project.

Notable Persons Involved

• Milton S. Littlefield, "Prince of the Carpetbaggers"
• George W. Swepson
• Calvin Littlefield

Summary

In the state of North Carolina during the Reconstruction era of the United States, railroad bonds were often issued by Republican legislators. Littlefield, who bought into the bonds, soon defrauded the state of North Carolina, causing a scandal between him and Swepson, described by some as being "rascals".

Littlefield and Swepson were indicted, but never convicted.

Impact

The scandal most likely hurt the State of North Carolina

North Carolina

North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...

more than any party. Due to the scandal, the state's railroad development from the bonds issued stagnated until the year 1880.

External links

• Courts.gov Littlefield case record