The Caucasian. (Clinton, N.C.) 188?-1913, 1897-09-16
FRAUD ALREADY
PROVEN
A Second Hearing Before Special
Master Craige on the Lease
Question.
IMPORTANT TESTIMONY.

enced the Action Of the Direetors-Th>
seaboard Air Line Wanted to Ria-Di-
rsctors Paid = Per Diem to Lobby to De.
feat the Russell Bill Durinx the Last
Legisssture-Hearing Continued fer
September :stb, 1T Raleigh.
The second hearing on the lease
question was held before Special
Master Craige in Salisbury on last
Tuesday and Wednesday, Septembsr sr
the 7th and S.h. The attorneys pres
eht representing the State and the
North Carolina Railroad were. Ex-
Judge Avery. W. II. Day, Phillip W.
Avirett and w. c. Douglass. Messrs.
Busbee, Battle, Bason and klut,z
the Southern Railway
and Central Trust Company; Col. Jas.
d. Manning the Board Of Directors.
The evidence offered by the pres
ent Board of Directors brought to
light some very interesting and start
ling facts, and clearly proved that
the charges of fraud, if not bribery,
were well founded.
The first witnesses were Messrs.
Herbert Norris and B. C. Beckwith,
whose testimony in brief was as fol-
lows:
Mr.. Norris stated:
That Governor Carr had presented
Mr.. Beckwhh and himself, constitu-
ting the board of internal improve
ments, with a paper purportlng to be
the lease of the Atlantic and North
Carolina Railroad to certain parties
and asked them, as the board of in.
ternal improvements to endorse the
lease. The Governor stated that If
gas almost an exact copy of the lease
of the North Carolina Railroad. and
that it was good thing for the State
That he, Norris, told the Governed
that he could not endorse any paper
until he had had time to inspect it,
but that the Governor wanted their
endorsement at once. That Mr.. Beck
with asked that copy Of the docu-
ment be given to them, and that all
of the parties interested in the
lease be brought to Raleigh before
the board. That the Governor said
it was not practicable to bring the
interested parties before the board.
That during the time they were read
ing the document, Col. Andrews
came into the Governors Office and
took Governor Carr into the next
room. That after this conference
with Colonel Andrews and Just as
tbo meeting was adj burning or about
to adjourn that Governor Carr said
that 1t was their duty to endorse his
Apprentices for directors of the North
Carolina Railroad, and his action in
leasing the road. That they did
this, but that when they went out
that he, Norris, remarked to Mr..
Beckwith that they had done some
thing they ought not to have done,
to-wit, endorsing the lease of the
North Carolina Railroad. That, that
night, Mr.. Telfair, Private Sc :retary
of the Governor, came to Norris in
the hotel and asked him not to re-
mark to any one what had been done
that day by the board of internal i'm
provements. Witness stated that
when he saw Col. Andrews come into
the Governors Office he felt that
there was some understanding be-
tween him and the Governor about
their endorsement of the lease.
E Mr.. B. G.. Beckwith corroborated
Mr.. Norris testimony.
The next witness, Mr.. D. A. Tomp
kins, stated that President Hoffman
of the Seaboard Air Line offered to
bid on the lease if the matter was
postponed till near the close of the
thirty-year term. That he was pres
ent at a conversation in Charlotte
last year at which President Hoff-
man and Viee-President st. John of
the Seaboard, Capt. S. B. Alexander,
Mr.. w. C. Maxwell and himself were
present. That President Hoffman
had said that the purpose of the meet
ing was to protest against the lea sc
of the North Carolina Railroad SO
long before the expiration of the old
lease. That he, Hoffman, could no,
make an offer to lease the road SO
long before the expiration of the old
lease.
Mr.. Frank Spruill, former direc.
tor, testified that he and Director,
Overman were opposed to the lease,
and that President Spencer of the
Southern seemed willing to accept 8
so year lease, when President Alexan
der of the North Carolina road spoke
in favor of the ninety-nine year lease
whereupon the long term was de
manded.
Some telling evidence in this lease
matter was brought to light by th'
exhibition by the present board Of di
rectors on the second day of the hear
ing of vouchers for $2.7l2.50, the ag
gregate of amounts paid to the ole
directors and their counsel for lob
bying In the Legislature of 1897 t
defeat the bill for the anulment o
the lease. The vouchers and re
ceipts showed clearly that the service
rendered by the old directors an
their consel were for lobbying. Tn
President and directors received ST.
per day for their services in this be
half.
Another telling feature was the proc
that since the Southern Railway ha
had the property it has been charg
ing the lesser company with an aver
age of $140, 900 for the maintenanc
of the equipment of the North Care
lima Railroad, old chairs, stoves, I'll
cups, etc., destroyed years ago, an
that it has also been loading dow
the North Carolina Railroad with a.
sorts of expenses for "conductinl
transr ortation' in order to depree
ate the value of the property an
thus lease it for song.
Master Craige will sit in New Yorl
continuing the hearing, Septembe
2lst, and end. and will immediatel
| after sit in Baltimore and Washing
ton. The next hearing in this Sta'
will be at Raleigh on the 2Sth
September.
The general opinion throughol
the State is that the State has mad
out q very strong case, but at Il
l Il 90