The Caucasian. (Clinton, N.C.) 188?-1913, 1897-09-30
LEASE FRAUD
INVESTIGATION.

Witnesses Examined Before Csn-
missioner CrAis-o6osrs Of
The Southern Are
ORDERED TO PRODUCE BOOKS
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wAantHorox, u. q, S~p,. ss-na.-
fEtiip Williams Aservtt, Whe 90. sn-
ployed By the North Cs,oiias Rail
road Company, Ne one II their counsel
IN The lease case. and vho "a. ansr-
wards employed by Cov~rnor Ras.sli
and Attorney General wsl.er in tho
same case. 10 still IN Wsshingfon q
The Raleigh holsl sne vas s~>r TO-
night BY . correspondent of THs Csr.
C Asi.S-
Cat Avesett has be~a y~rt,p. tte
only council on either side tho has AL
tended oil the hearings before ~p~casl
Master Craig. Who uAs appointed BY
J udGe Simouton To take testimony on
The Issues Of fraud In the making Of
the leases Of ls.l aud icc.. lie con
senL~d After some reluctance, Co uak-
. statement Of what had occurred ~
these several hearing. To your corsss
ponent- lie said:
Yes We are having our day in cocri.
IN fact have had the greater Part at
IL. At the fret hearing ai Salisbury
the State offered in svldenos an on cisI
copy Of the testimony taken before
the North Carolina Legislature, which
the Saith lease Of lssi.
and which We believed establishes
that that lease wss 90 tainted with
fraud ~ To defeat any claim which the
Southern Railway Company may makr
~ purchaser Of the cid Richmonc a
Danyiie interest in this lease st the
mortgages sale Of the Richmond a
Danvilie Railroad. We offered iu ss-
idence at that time oil the t~siirnor.
taken before the legislative commiftr-
OF 1887. which contained, - every
body will recall. sdmiss ions on the
Ross VI
and Alexander, the North Caro-
lima Railroad Company, that tire
vice. President Of the Southern Rail-
way and others conn. cted with that
Company. had represented 10 them la
1885. that the Southern Railway. o..
purchasers Of the Richmond A Ian
Vile Railroad interest In the i~ase of
1871, had the power and would eIer-
cise the power TO strip the North car
olins Railroad property Of all better
ments and Improvements placed there
on by the Richmond A Dauviile Rail-
road. This in the Language cf NJ.
Overman would have left the North
Caroliua Railroad Company nothing
but road bed ard this in the lang
uage Of General Iioke, had his threat
been capable Of execution, would have
left the North Carolina Railroad Con Z.
pany nothing but - right aud q strip
Of rust" This threat We have proven.
~ . matter of Law and fact the south
ern Railway Company had no power
10 carry out, and We have further
proven by his CO. Receiver Col. D. ".
Huidekoper, that the President Of the
Southern Railway. while associated
with him as Receiver Of the Richm ond
and Dsnville Railroad. had knowiedx~
OF this law and these facts, as had hi .
| counsel w. Leslie Ryan, and that the
Richmond 4 Danville always accepted
and used the North Caroiins Railroad
with full and complete understand
ing, that every improvement placed
threon which in any way attached 10
the same became the property Of tue
State. We claim that these threats,
which were false, and which were
known 70 be false ~ the time they
we're made, were in themselves
sUvvIcIExT vRAUD To JUsTI1r TBE m
PLACEMENT
Of this contract md to vitiaie the
| same.
F! We also proved st the FIRST Salisbury
bearing that the Board Of Diectoss oI
the North Carolina Railroad had acted
upon certain reports Of the cost Of op
Grating the North Carolins Railrost
made By the Southern Railway, fos THE
years ending June, less and lss4, VI hici
| report We claim were . skiliful manip
ulation Of facts and figures for tn.
purpose OF pesverting the true earning
power, And cost Of operating the Norti
Carolina Railroad and which ne clsiu
Was % manipulated for the purpose o
deceiving the Old Board Of Director
Of the North Carolins Railroad, 40,
which, if their sworn statements ar
TO believed, did deceive them and In
duce them 70 enter into this contrac
through
NEUTRALITY-SUSPICIOUS. AED DECEIT.
Al the second salisbury hearing
Col. A B. AndseWs, o material VII
ness, Was excused and his teEtinonJ
which would have laid the found alto
for much other testimony. has not 90
peased- when he does appear moc
Of the evidence nos offered will
strengthened and explained AZ tbi
bearing, IL will be semembered, -
had the distipgaished honor Of On
. presence u ex-GovesnoS Carr, an
that in ts presence on the stan
xessrs. Norris A. lteck With. his 40
pointees on the Board Of Internal Inn
ps0vements Of the state, testified q
the fact that Govesoos Carr, fresh fror
an interyieW With the first vice-Presi
J dent Of the Soutbern Railway. hs
come 70 them and
k82CEoIxx0 O sATfgIcATIos
. of the North Carolina Railroad lea.
} along With the rafi6csfion Of the AZ
!. laufic and North CarOIioa lease, an
, that be had recommended them % COZ
, suit with c0u nsei for tbe Soutbeso Raj
way ss 90 its saii6cation, which the
regard ~ improper that they sbous
, do and which seemed 10 them %
su IN "a exhibition Of desire on ssoves
eOs Csrr's part that the North Csrolin
{ Raiiroed lease should be ratified b
4 them, with great expedition thai the,
q after 6sst agre~iog 90 its epdorsemen
4 refused 20 90 esdosse is and csu-e
tbs minu'es of their board TO 3
amended reistisg tn bsseto. They sut
thas subsequently, Governor Carr "a
e deavoeed To induce them 10 unite In
. written statement 20 the neWspspes
o that they had taken no action reiafis
Z 70 this iesse and had not refused 70 ri
q ffv the same
Mr.. Sleuili. Director In the Sori
ICsrolias Rsilsosd Who did not vose "a
the S9-yeas leas~, testified that he b
E~vnA tkaf IN fhN al6 hoa1d haA af~a<