The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-07
GOVERNORS
HOT WORDS

CONTINUED from First Page)
GOV. RUSSELL'S ANSWER.
UNITED STATES CIRCUIT COURT
FOR THE WESTERN DISTRICT OF
NORTH CAROLINA.
The Southern Railway Company
VS..
The North Carolina Railroad Company.
Sydenham b. Alexander, w. Z. Max
well, Lee S. Overman, Charles w.
Johnston, Ed. Chambers Smith. V. n.
Turner. Hugh MacRae, John L. ALI
son, II. w. Fries, Bennehan Cameron,
r. +. Hoke, j. J. Young, Daniel ~.
Russell, Zebulon Vance Walser ana
J. NJ. Wolfe. -
Daniel L. Russell, who is sought to be
made a party defendant in this SUIT by
the Southern Railway Company, respond
ing ito the bill Of complaint as an lndlvld-
nal and not as Governor of North Caro-
lima, and doing this much as matter OF
courtesy to this court, makes answer as
follows:
l.
ser. who is Attorney General of North
Carolina, and all the denials and allega-
tons Of said answer. as well as the an
swer itself, adopt
2. / reserve ito myself all the right Of
exception to said bill of complaint and
protest that under my oath of office as
Governor Of North Carolina l will not
recognize as binding upon me nor will
yield obedience to any order of any court
that binders or retards or interferes
with me in the exercise and perform
ance of any Of the duties committed by
the people of North Carolina through
their Constitution and Legislature to
my judgment and discretion as their Gov
ernor; nor will / obey or regard any or
der Of any court which undertakes to
prevent the State Of North Carolina from
exercising it's constitutional powers as a
sovereign State, and hereby expressly
decline to appear in this court as Gov
ernor aforesaid, or to do any act which
might seem to make the State of North
Carolina party to this suit.
3. deny that the State of North Car
olina ever entered into any contract with
the Southern Railroad Company for the
lease Of the North Carolina railroad. The
ninety mine year lease was made by the
North Carolina Railroad Company Of
the first part, to the Southern Railroad
Company of the second part, and the
State was and is no party to this alleged
contract of lease. The State has an in
terest in the North Carolina Railroad
Company, being the owner Of three
fourths of its capital stock
al 1Snfx, aa
State proxy and the State Directors, vot-
ed for this lease. I allege that in doing
so they committed an unauthorized and
unlawful act. They violated the charter
of the North Carolina Railroad; they
made an alienation for the ninety-nine
years, equivalent to sale, without any
authority in their charter or in any law
of North Carolina, and in their actions
in this behalf they acted as unfaithful
and unauthorized agents, and committed
an ultra wires act that is not binding on
the stockholders of the North Carolina
Railroad Company nor ON the State as
one of the stockholders.
A. The State as a sovereign, and also
as a stakeholder, has the right to test the
legality and validity of this lease in its
own courts. This plaintiff, the Southern
Railroad Company, corporation foreign
to North Carolina, is seeking to strike
down this right of the State. The only
purpose of this action on the part of the
Southern Railroad Company is ito deprive
the people OF North Carolina Of their
right to test the legality of this lease
in the courts of their State.
5. The exhibit is a correct copy of a
newspaper interview which was author
lied by me, and which was intended as
a communication to the public; and so are
the other exhibits containing extracts
from my inaugural address and q certain
special message which l sent to the
Legislature. SO far as / am aware, this
is the first time Though it may not be
the LAST when corporate arrogance has
arraigned Governor for his communica-
tons ITO the Legislature and to the peo-
pie whose servant he is. If, when | gave
out this interview, had known as much
as l have since learned about the frauds
and impositions put upon the State by this
Southern Railroad Company, that inter
view would have been less mild and more
elaborate and vigorous.
6. Upon an examination Of the reports
of this Richmond and Danville now the
Southern) Railroad I find that for the
year ending July, eighteen hundred and
ninety-four, they admit that the North
Carolinae Railroad received as gross earn
ings $4,000 per mile, and for the
year ending July, eighteen hundred and
ninety-five, $5,5O0.O0 per mile, and for
the year ending July, eighteen hundred
and ninety-siv. they admit, $4,000 a
mile; and they claim the operating ex-
penses Of this road for the year ending
July, eighteen hundred and ninety four,
were seyenty-three per cent of the gross
earnings, and for the year ending July,
eighteen hundred and ninety-fve, that it
was seventy per cent of the gross earn
ings, and for the year ending July,
eighteen hundred and ninety-six, that it
was seventy-four per cent of the gross
earning; so that in eighteen hundred and
ninety-four, with $4,000 as gross earn
ings per mile, they claim that their net
earnings were only $1,300.O0 per mile, and
in eighteen hundred and ninety-tive, with