The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-09-25
THE sOUTHERNs BIG CASE.
One of the Counsel for North Caro-
linn Says That the State Has Won.

linn Says That the State Has Won.
Washington, Sept. A.-The hearing be-
fore Hon. Kerr Craige, the special master
appointed by Judge Simonton OF North
Carolina, 70 take testimony on the charges
of fraud in connection with the lease of
the North carolina railroad by the South
ern, was continued here to-day. Several
officers of the Southern railroad and a
former auditor of the Richmond and DAN
vile were subpoenaed by counsel for the
state to produce books and vouchers,
which the latter claim contain entries to
sustain their contention of manipulation
of the Southern railway books but on the
advice of counsel for the Southern, the
witnesses refused TO produce the books
and vouchers called for. The matter was
certified to Judge Simonton's court, where
a ruling will be asked. The hearing will
be resume at Raleigh, N. c.. on the 2Sth
instant.
p. w Averitt of Raleigh, one of the
counsel for the state, in speaking of the
case tonight, expressed the opinion that
the charges alleged against the Southern
railroad had been proyen. "In the hear
ings in New York before Mr.. Craige," he
said, witnesses for the state were pro-
duced to prove that the Southern Rail-
way Company falsely threatened the old
directors of the North Carolina with the
stripping of that road of all improvements
placed on it by the Richmond and Dam
vile railroad during its term as lessee,
which the Southern railroad had no pow
er to do. The state also claimed that the
books of the Southern railroad had been
manipulated for the purpose of inducing
the directors of the North Carolina road
to regard the latter as having little or
no earning capacity, when, as a matter
of fact, it was earning from 100000 to
100000 in excess of its expenses, and the
amount paid by the lessee for the rent.
The state also offered to prove that the
Central Trust Company of New York, to
which the Southern had given a mort
gage, had no standing in court in this
case, as the assignment of the lease of
the North Carolina road, made in 1895 to
it, as trustee of the Southern bondhold-
ers, was not made until four months after
the beginning of this suit. \
At the Baltimore hearing President
Hoffman of the various railroads compris-
ing the Seaboard Air Line system, testI-
fed that his roads had protested against
the North Carolina road making the lease
of 1895 six years before the lease of 1871
had expired and his company was ready
to pay 100000 Pea year for a thirty-years'
lease. At the meeting at Raleigh the
state will offer witnesses to sustain
the charges that money was improperly
spent by the old directors of the North
Carolina road to prevent an investigation
by the legislature into the making of this
lease.
Fairfax Harrison, general solicitor for
the Southern railroad, and who appears
in the present controversy, is disposed to
regard the whole proceedings that are
now going on as absurd. He says "It
is the laughing stock of the people, and
the whole state of North Carolina is anus
ed at the testimony that has been brought
out by the other side. The proceedings
have now got to the stage of acute alb
surdity. After the other side have finish
ed their testimony we will submit to the
court a complete and elaborate discussion
of the whole question, so as to finally
dispose of the entire charge of fraud, tell
ing the whole story of the transac-
tions leading up to the lease,
which were those of an ordin,
ary business nature Our case Is
already won. it was won when Judge ST.
monitor granted the preliminary injunc-
ton restraining any interference with the
operations OF the lease, and we have nCth-
ing TO fear. The other side have not pro-
duced any evidence or suggested any line
of testimony showing in any manner the
improper use of money in the whole trans
action. Concerning the assignment of the
lease of 1895 to the Central Trust Com
pany, it was made entirely independent
of this suit and had nothing whatever 10
do with 1t. The assignment was made in
the usual course of business, and was not
hastened by this proceeding. There is
nothing in the charges of fraud. The
counsel for the state have abandoned the
theory Dn which they startled out, that
there was any actual fraud in fact. and
are trying to build up a theory Of fraud
in law"