The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-08-02
ORIGINAL LEASE OF N. G. II. r..
A Trace of History that is News to the
Younger Generation.

The Chatham Record, which thinks
new lease of the N. @. r, &. at this
time premature and imprudent, con
tains the following piece of history IN
this weeks issue:
"a few facts in regard to this lease
NAV be of interest to the younger gene
ration, which has grown up since it was
made, for there was much criticism or 1t
at the time it was made. Indeed it was
such surprise to the public and some
of the circumstances connected with it
were So secret aud suspicious
that legislative Investigation of
the whole matter was made The
States directors were all Repub
licans (appointed by Gov. Holden), of
whom Col. W. f. Henderson, of Lexing-
ton, is the sole survivor, and Hon. Will
liam a. Smith known as elbow Your
Horn Bin'D was the president of the
company The Legislature (Which was
Democratic, at its first session after the
lease was made, appointed committee
of three Senators and five Representa-
4ives to investigate fully into all matters
connected with the lease and especially
whether or not ''any money or other
consideration had been paid, or agreed
to be paid to any person for the purpose
of procuring the lease"
This committee made an investigation
and reported fully at the session of
1871-'72, the report being signed by
Senators John W. Graham, j. M. Worth
and J. A. Gilmer, and by Representative
E. B. Withers This report is too long
to copy here, but it shows that the lease
had been made without any advertise
ment of public notice, and indeed no
notice had been given even to the dlrec-
tors of the particular object of the meet
ing september 18th, 1870 which had
been called for the purpose of making the
lease The whole matter appears TO
have been arranged by President Smith,
and the directors merely ratified his &C
ton. And now comes the very suspicious
part of the proceedings, for the commit
tees report states that ''all the witnesses
examined deny any knowledge OF any
consideration, paid or understood or
agreed to be paid, except Maj. Smith,
who states that he could not answer as
it might lead to questions eliminating
himself. In this we believe lies the true
secret of the lease" The committees
report sets forth in full the question pro-
pounded President Smith, which is in
the following words:
"Do you know of any sum of money
or any other consideration whatever
having been paid or promised to be paid
to any person in this State or oRt of it
for the purpose of procuring the lease
of the North Carolina Railroad or in any
way connected with said lease ~
This question Maj. Smith declined to
answer because, as he alleged, 1.-THE an
swer might criminate him or lead to in
formation that would criminate him."
The committee, commenting on this re-
fusal to answer, very properly reported
as follows when a public servant
cannot answer all questions touching his
connection with any transaction affecting
the interests committed TO his charge,
it is not unfair to conclude that his own
interests, rather than the States aid
OompaRy's, have been taken care of. No
further attempt was made to force Maj.
Smith to answer, because the committee
reported "that the Legislature cannot
rightfully compel disclosure.
All this may now be termed "ancient
history, but 1t is one of the many Incl
denus, happening during the days of Re-
publican misrule in North Carolina, that
should warn our people from again en-
trusting our State government to the
control of that party or its allies!