Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-09-25
NORTH CAROLINA II. II. LEASE.
Hearing at Neutrality-suspicious. ls
subpOenaed Decline to Attend.

subpoenaed Decline to Attend.
WASHINGTON. ID. c.. September "a
The hearing before Hon. Kerr Craige, the
special master appointed by Judge Simon
ton. Of South Carolina, 10 take testimony
on the charges Of fraud in connection
with the lease OF the North Carolina rail-
road by the Southern railway was con-
tinued here to-day. Several officials OF
the Southern road. and a former auditor
Of the Richmond and Danville road, were
subpOenaed by counsel for the Stale 10
produce books and vouchers, which the
latter claim contain the entries 20 sus-
tain their contention Of manipulation OF
the Southern railway books, but on the
advice Of counsel for the Southern, the
witnesses refused to produce the books
and vouchers called for The matter was
certified TO Judge Simonton's court
where a ruling will be asked. The hear
ings will be resumed at Raleigh, y. Co.
on the 18th instant
p. w Averill of Raleigh, one Of the
counsel for the State. i'm speaking OF the
case tonight, expressed the opinion mat
the charges alleged against the southern
railway had been proven. In The near
ings in New York before MI. CIalBe ne
said. witnesses for the state were pro-
duced to prove that the Southern railway
falsely threatened the old directors OF the
North Carolina with the stripping Of that
road of all Improvements placed on II by
the Richmond and DanVlle railroad du-
ring its term as lessee, which the SOuth-
eTn railroad had no power TO 90. Inc
State also claimed that the books OF the
Southern railroad had been manipulated
for the purpose Of inducing the directors
of the North Carolina TO regard the latter
as having little or no earning capacity,
when, as a matter OF fact, ii was earning
from 100000 TO 10000 in excess Of It's
expenses, and the amount pald Dy the
lessee for the rent.
"The state also offered to prove that
the Central Trust Company, of New York,
TO which the Southern had given a mort
gage, had no standing in court IN TINS
case, as the assignment OF the lease OF
the North Carolina road, made in 1880. 10
IL as trustee of the southern bondholders,
was not made until four months aItcr
the beginning of this suit. At the Balti-
more hearing. President HOFFMAN, OF the
various railroads comprising the SeaDodlI
AIRLINE system, testified that his ROAD
had protested against the North Carollna
road i making the lease Of 1880, SIX years
before the lease Of lSl had eAplIed, anu
his company was ready TO pay $f"VVV Ier
wear for a thirty-year lease Az Ihe
meeting at Raleigh the State VIII oiter
witnesses to sustain the charges lhat
money was improperly spent by the old
directors Of the North Carolina road 10
prevent an investigation by the ne. L,eglSia-
lure into the making of THIS tease -,
Mr.. Fairfax Harrison, genera solIci-
tor of the Southern road, and who APP
nears I'm the controversy, Is disposed TO
regard the whole proceeding that Is now
going on as absurd. He said: 1T is the
laughing stock of the people, ana the
whole State of North Carolina IS amused
at the testimony that has been brousht
ont by the other side. The proceedllgS
have now got to the state OF acute an
surditv. The other side nave nhlsheu
their testimony. and we viii submit 10 the
court a complete and elaborate digest OF
the whole question, so as TO hnally as
nose of the entire charge of fraud, telhhs
The whole story of the TRANSACTIONS leau-
ing M to the lease, when were
those of an ordinary business ma
tire our case is already won
II was won when Judge Simontoh
Granted a preliminary injunction restrain
inc an interference with the operations OF
the lease. and we have nothing 10 lear.
rrba other side have not produced any
evidence. or suggested any line OF tesu-
rnonv showing i'm any manner the I'M
nroner use of money in the whole trans
action Concerning the assignment OF me
lease OF 1895 to the Central trust COul.
many. II was made entirely independent
~ this suit. and had nothing whatever 70
do yyfth II The assignment was mace
in tho usual course of business, ana WIS
not FASTENED by this proceeding. me
counsel for the state have apahuoIeu snS
theory on which they started OUT. lilal
there was mutual fraud, ana are ISIhB
10 build up a theory OF iraud III law