The news & observer., 1897-03-05
The Committee Wrestles With
the Knotty Problem.
WITNESSES QUEs 1oNED
INFORMATION TO BE ASKED OF
THE SUPREME COURT.
AS TO The CHANGE OF C4AefeR
Joint Resolution proposed Asking the
Supreme Court to Pass Upon
One or More of the
GIauSae
Clauses.

railroad lease rpconvened at $3.50 O'Clock
yesterday afternoon.
Mr.. II. b. Arendell was sworn and
examined by Capt. Day.
Please state whether or not you had
any conversation with any member of
the board of directors Of the North Caro-
lima Railroad with reference to the pro
posed lease, prior to the meeting of the
board at Burlington?'
Il think | did; | am sure the matter
was mentioned between Mr. Lee S
Oyerman, Of Salisbury, and myself I few
days before the meeting was held"
Can you state what was saidY"
Il don't remember just how the matter
was brought up but think | asked him
how he stood ON the question
He replied that he had not fully con.
Sidered the matter, but was then inclinel
to favor lease.
Il think | volunteered the remark that
in my opinion the proposed lease for any
thing like ninety-nine years would be an
exceedingly unpopular move.
He replied that he should carefully
consider the natter and act as his best
Judgment dictated, regardless of circum-
stances"
Were you at Burlington on the 10th
day Of July, 1895, when the board of
directors met and leased the road 2"
Il was at Burlington on that occasion. -
In reply to other questions, Mr.. Aren-
dell stated:
''The meeting was private. Asked diff
ferent members of the board for infor-
nation, during the afternoon and ear
ly evening.
Was there in the capacity of news
paper reported Several replied that there
was nothing for thep ublic
Went several times to the house in
which meeting was held, doors were clos
ed; was told that only directors and the
attorneys were admitted
''One of the directors came TO the door
after being asked for and stated that
there was nothing yet for the public
Did see Mr.. Samuel Spencer, or a
gentleman said to be Mr.. Spencer go
from his private car to the house where
the board was in session, after members
of theb oard had been to the car.
'Was told by a director between 8 and
10 o'clock p. M, that lease had been
made, went again half an hour later
to the directory room and was invited
in. Directors were not then in session.
was told then the terms of the lease.
Ex-Gov Elias Carr was next examined.
Il was Governor of North Carolina in
1895, when the North Carolina Railroad
lease was made. The first mention
of the matter was during a conversation
between Col. Andrews and myself, Il
don't know that advised the directors
to lease the road. | was in favor Of it
and so told the directors.
Il had report from committee composed
of Dr. Hogg and another gentleman
named by Southern Railroad Company
as to condition of North Carolina Rail-
road prior to leasing the road.
Don't know of any special fitness of
DR.. HOgg as to ascertaining accurate
condition OF a railroad. | know that
he has no occupation, nor has had since
| have known him. Major Wilson told
me that he did not think we could ever
get us much for ther oad again, as we
We're getting. Yes, we did get more"
Had several conversations with Major
Wilson on the question Can't say how
many.
Don't know that he was anxious that
the road should be leased to Southern.
Did not ask him to make special in
vestigafion as TO physical condition of the
road.
There war something said about the
Southern paying the tax in addition to the
Il had heard it said that unless we
leased the road to the Southern they
would parallel the road and depreciate
its value"
This fact and also the question of
paying the tax did influence me in IA
voring the lease.
Il had during my administration striv-
en- to get all the railroads on tax list.
No annual meeting was held in 95
of the stockholders OF the North Carolina
RAILROAD Company according to my best
II recall no other failure to hold an
annual meeting
There was a failure in '95 to elect
directors on part of the private stock
holders.
'Am not familiar with-the bylaws
Of the North Carolina Railroad.
1T takes 100 stockholders and ma
jority of the stock in value to constitute
Il valid stockholders meeting.
Major ]. w. Wilson was next exam
ined:
There is no report in Railroad Com
missioners office of the committee com
posed OF DR.. Hogg and another gentle
man as to condition of North Carolina
Railroad. don't know about the DIR. Hogg
the stockholders generally
a committee to look after the
road. 1t may be that this was the DR..
Hogg committee. l have never seen an
expert report OF any committee as to the
condition of that road.
II have examined the North Carolina
Railroad, and part Of it was not in good
condition Some old rails in the neighbor-
hood of Gibson.
physical condition was good from
to Charlotte. An average
from Greensboro to Raleigh,
and the condition from Raleigh to Colds
boro not so good as from Raleigh TO
except about GihsonvilIe.
My own impression was that tbs
Southern could parallel from Charlotte
% Greensboro. and would do it, and that
We could not gct as much for the North
ts