The news & observer., 1897-02-23

this road was earning SO, 400 a mile and
another report said that it was earning
over $4,000, and that its expenses were
not over 5S per cent?"
He did not remember.
Day: did not Governor Scales ;
scheme include the Atlantic and North
Carolina Railroad at the same priceF'
Oyerman: Il knew it was mentioned,
but do not remember that it was in
cluded"
Day: did you not know that in 1888
the Atlantic and North Carolina Railroad
was not earning any dividendY
Overman Yes, sir"
Day: Under the terms of lease, was
not S130,000 worth of property to be re-
turnedT'
Overman: "They have given bond"
Day: Were not these terms of the
Southern lease to return the property or
pay for it?'
Overman: Yes"
Mr.. Overman said $4,000 was up in
the Charlotte Bank for the S130,000, but
Capt. Day insisted, suppose the Southern
did not give up the lease for 80 years
would you make them a present of the
$130,000? After fluter, Grant exclaim-
ed: IF you get through with only one
witness the committee is going to report. +"
Capt. Day now went into the matter OF
Overman and Spruill not agreeing to the
90 year lease, which brought out the
statement from Oyerman that he had
heard that Andrews would have yielded
had it not been for Spencer.
The question of $4,000 inventory was
then gone into, which Col. Overman said
was secured by $1T5,000 clause in the
lease Capt Day asked to have the
clause read. Col. Overman's conference
with the Governor was discussed Capt.
Day asking if he told the Governor of the
threat TO parallel, which he said he didn't
remember. Didn't Col. Overman know
the Legislature could repeal the charter
Capt. Day skipped to the Atlanta and
Charlotte, discussing the radness Of the
Charlotte, discussing the aridness Of the
pairing the value OF the two roads
''Wel, thatll dor exclaimed Grant and
the witness was dismissed.
Mr. Manning asked if any cOnpensa-
tion was paid him for making this
lease.
NO, sir" said Col Overman, "and the
people of North Carolina know / have
been fighting railroads all my life."
Capt. Day expressed surprise that
such a question should be asked of Col.
0verman.
At $50 the committee adjourned until
S o'clock
NIGHT SESSION.
The committee reconvened ait S:15 and
f11HS A Al Il
the Governor had requested him to say
that as his communication had been used
in the memorial he wanted to be repre-
sented, and, if necessary, to bring a suit
to impeach this transaction either on
the basis of fraud or otherwise, and to
that end he wished to recall Col. Over
man for three questions.
Col 0verman took the stand. and
Judge Avery ELECTED the reply that he
had understood Mr.. Ryan accompanying
Mr.. Spencer to Burlington was counsel
for the company.
Second, that the threat was made by
Col. Andrews mot by President Spencer
that parallel road would be built. Col.
Oyerman did not hear anything from
Mr.. Spencer.
Third. As to the gross earnings Of Sc
900 a mile his attention was not called to
1t, nor did he look at the reports of the
Railroad Commission Judge Avery
asked if there were not only $4,000
more net earnings under the Southern
than under Joe Turner-or 1861. 900 a.
gainst $4,000 under Joe Turner. Col.
Overman said his attention was not call
cd to this. Col. Overman stepped aside.
Gen. Hoke was sworn and took the
chair.
Gen. Hoke had been a director nearly
20 years Of the North Carolina Railroad
in answer to Mr.. Manning. He had con-
structed the Georgia Carolina and North
ern railroad. He now was one of four di-
rectors representing the private stock,
and was at Burlington, where quite a
large block of stock was represented.
Gen. Hoke voted for 80 years, and stood
by it and all the private stockholders
were in favor of the action taken. Gen.
Hoke told of his 20 years connection.
Then the stock was selling at $35 a share;
now what has produced that, not the
road bed and stock which could be ac-
quired for less than those. What caused
this was the certainty of the rental. Then
about the construction bonds
when they We're due Gov. Jarvis was
very much disturbed as to the matter Of
foreclosure on the basis Of stock at $50
a share. In the refunding scheme, the
bondholders agreed to give up $24O In
terest and the new bonds were issued for
40 years, following which came, as a con-
sequence, an easier adjustment Of the
State debt, as the per cent bonds
would rise and the 4 per cents would
rise, and the people would come in under
the impetus and give impulse to the
bonds which quickly went from go to