The news & observer., 1897-02-27

portunity to bid. Mr.. Maxwell, a dlrec-
| tor ON the part of the State testIfied
| that Mr.. Hoffman said he could not
| bid six years before the expiration OF
/ the Smith lease of 1871, because the
| Southern would run the road down. Ihat
| I voted for the 90 year lease because |
| knew the Southern would run the road
down ON u.s. Director Maxwell further
| testified that Mr.. Hoffman could not
| bid intelligently before the expiration of
the old lease, because he could not know
| in what condition he would receive the
| property.
9th. The majority failed to find as q
fact, that any member of the board OF
directors knew or took any steps to as.
certain the real value of this property,
,r what the Southern was paying for
similar property, and of less value, than
the North Carolina Railroad The MIN
ority refers the Senate to the testimony
Of Mr.. OYerman, Mr.. Alexander, Mr..
Maxwell and others of the board of di-
rectors ON this point, who testified in sub
stance that they did not know the value
of any other railroad property in North
Carolina, South Carolina or Georgia.
And the minority fail to see how trustees
lEtN9 UEtl ditOSpII1t1 w SANSAA
duties, or can be acquitted entirely of
censure, who have failed to take proper
steps to ascertain the value of property
intrusted to their care. The minority
are not acute enough in perception, to
draw the subtle distinction between the
blame that attaches to fiduciary who
actively engages in suppressing bidding
at his own sale, and one who makes an
unenforced sale under conditions where
competition is impossible. To the COM
mon mind this seems a distinction with
out difference. The effect upon the
cestiu qui trust is the same even in court
Of morals, and where, as in this case,
the only information relied upon was that
furnished by the lessee, it follows that
courts of Law and Equity would pro-
nounce the same judgment.
The most ardent defender of the Board
of Directors will hardly acquit them OF
undue haste, and want of prudence an
making the lease, for there is no pretence
made that any public notice was ever
given of the making of this lease, and
turn in what direction We may, we find
surrounding the whole transaction the
want of proper publicity.
The minority begs to report to this
honorable body that after careful con-
81 siieration it finds the Directors on the
part of the State guilty of the want of
proper prudence, caution, care and pub
licity IN making the lease of 80, condi-
tions that carried with it all the fateful
consequences of a blunder.
The minority of your committee would
call the attention of the Senate to the
course of conduct ON the part of the
States Directors, and ON the part of the
Directors representing the private stock
holders General Hoke testified that he
communicated to the private stockhold
ers, the offer made and what his con-
templated action would be. 1t does not
appear, however, that the stockholders
of the State communicated with the peo-
pie of the State to obtain a concensus
of their opinion before consummatimg
the deal, or that they needed the pro-
test of the public press which was al
most unanimous IN its condemnation.
G.. e. BUTLER,
For the Minority.