The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-03-12
CARLISLES FIRST CASE.
EMPLOYED As COUNSEL ny j. PIER
rONT MORGAN.
Mission In North Carolina To- Secure
Injunction HcstrnininE Anuui-
mcnt OF Haiirond Lease.

Raleigh, N. c., March 1.-The political
OF cx Secretary Carlisle an tho representa-
tive OF the Southern Railroad company.
Tie comes really ms the attorney Of J.
Piorpont Morgan. antk over the heads of
the regular counsel. to sustain lease.
out of which that gentlemen and HIS
friends get IA plum Of 100000 per year In
cold cash,
Tho case OF tho North Carolina rail.
road by tho Southern Railroad oomptnY
haa long bocn a topic OF political bitter
neas. 1t ia discomfort with that lenso,
made by Governor Carr. which upset the
democracy IN tho election which made It
possible for Priiohord and Butlcr 10
reach the unitei states senate The op-
position TO the lease embraces all parties
In 1871 tho original Richmond and Dan
Vile company ana other interests IN
volvod developed scheme Of consoliJa-
ton WI cb gave 10 the South the Rich
mond aud DanviIo railway. II IL un-
necessary 10 enter into details. save to say
hat an important link IN this scheme
was tho North Carolina railway. from
Goldsb0ro 10 Charlotte. a3s miles. In this
road the State government holds a con
trolling interest, anl the directors np-
pointed by tho governor have majority
vote. IL was through them that this road
was loaced to tho Richmond and Danvilic
TOR tiilrty years al a rental Of q per cent.
when the management. of which The late
John " lnmhn and his friends we're lead
eis, began taking from the Central OF Ueor.
gia. they got into deep water, which well
nigh Awampci them. Another organization
became necessary,
II was In this crisis that those interested
In tho various lines applied Ia J. Pier
pOnt Morgan ia undertake tho reorganlAn-
ton. That gentleman and his associates
sent Mr.. Sam l.. Spencer. who is now
proaidcnt OF the road through their grace.
10 look over tho properties. 10 get them
In shape, aud 90 report upon the adVisa-
biliiy Of taking hold. lie did this work
80 thoroughly and no much to the satia-
faction Of Mr. Morgan that when the syn
dictate took charge they selected az ita
president Mr.. Spencer, whoEc name now
appears as the responsible head of tho
Southern Railway company, although
Morgan carries Il ia his broeches pocket.
One OF the proiminarcs TO the successful
reorganization was that the lease OF the
North Carolina, which expires In 1901.
hnunl1 be tAttulhu 10 fluiA' II
or. falling. they would build snother con-
Meeting limo
There are many conflicting stories about
tho manner in which the State authorities
were approached 10 have this lease ex-
tended. Governor Carr and the State direc-
tors consented TO d renewal OF the lease
for ninety nine years at rental OF per
cent during the first six years. being the
unoxpirod portion Of tho old lease. and 7
per cent for the balance OF the time. No
sooner was this tradI made than the peo-
pie began to protect
The present governor, Russell, republi-
can. made It leading plank that, II elect
ed. he would haze tho lense annulled. He
stated Ia his speeches that the North Caro-
lima railway. 1888 miles long. was rented
for $4,000 year. while the
Western aud Atlantic railway Of Georgia.
only 1888 miles long, was rented for siT0,-
900. And the Georgia railroad from At
lnnta to Augusta, was rented for 5000 900.
while only ITO miles ~ irngth.
He figured II out that tho Syndicato
behind the Southern railway pocke,ed an.
nually over 100000. He was elected. and
lis first work Was 10 call upon the logis-
lature to annul the lease. The legislative
balls have bccn crowded with lobbyists
during the entire session. a bill authorix.
Ing the governor TO take steps TO apnui was
aised by the house. but In the senate It
hung fire. Finally compromise was ar