The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-02-06
4 SENSATION SPRUNG
Gov. Russell, of North Carolina, Publishes
a Letter Of President Hoffman.
COULD NOT BID FOR THE n. C. RAIL WAY
Tf,e rEcsidcnt 0f-taar- $ eaboard Says
Ne was Not Allowed to Participate
In tho Kidding Upon nn Equnl
Footing with the Southcrn-Presi-
dent Alcxnnicr Denies the Cllntse

Raleigh, n. c.. Feb. 5-(SpcciaD--
Governor Russell to-day created a de-
cided senSa ton by sending Special
message to the Legis'a turc. including
the correspondence between President
Hoffman. OF the Seaboard Air Line, and
himself, and fIoffmans proposition to
pay S4D0, 600 annual rental for The North
Carolina railway for twenty years.
HOFFArAN'S CHARGES.
Hoffman in one of his letters says he
had not been allowed to participa te
upon an equal footing with the South
ern in submitting bid for the road. al
thoush he had desired to submit such
aait bid heretofore &c, He says that if the
SeaDoard All Line secures the North
Carolina railway there would he no hest
tancy in agreeing to handle the South
ern trains over such parts of the line
rs desired upon payment Of trackage
charges, not in excess Of those paid by
the Southern t. the Atlantic Coast Line
for similar accommodate tion.
Hoffmap further says the operation Of
the North Carolina railway by the Sea-
board All Line would have a safutary
effect upon the commerce Of the section
i; traverses anu that the road would
prove Il valuable adjunct to the Sea-
board Air Line, and afford the people or
North Carolina essential competition.
y STARTLING ASSERTION
Governor Russell says: THE asser-
ton of President HOFFMAN. that the
companies he represents were not allow
ed TO participate with competing lines in
submitting n bid for the North Carolina
railway, and that this fact was known
TO the president and directors OF the lat
ter before the ninety-nine year lease to
the Southern was consummated, is
startling. N
III 1t be true then the transaction Is
not only void In equity. but fraudulent
ta1x sill
is sustained by proofs the courts will
nullify this lease on the ground Of
palpable and tlagrant fraud"
GOVERNORS ARG UATENT.
He then says the lease will give the
State net gain Of 500, 900 annually over
the lease to the Southern. and that there
is good reason 10 believe the Scaboard
would also pay organization eXpensea
and all taxes. Ee argues that the bill
10 annul the lease Of the Southern be
passed Just as 1t stands now. Hc sayn
the Southern railway cannot cOmpla III
that ii did not lease from the State.
but from the North Carolina Railway
company, that as Il freight cooperation
it was permitted TO take the lease by
virtue Of an unwritlen law, which said:
You are authorized by the laws OF Vir-
ginia to take theis lease and not by the
laws Of North Carolina. This State adj
mits you here rs L matter of hospitality
anu Guilty.. MS NCSptl5iltS tilQ colllIlS
she will withdraw AT her plca asure.''
The Governor also says the Seaboard
can be made TO purchase or lease the
Atlantic and North Carolina railway on
terms very satisfactory 10 the State.
CHARGES CONTRADICTED.
President S. E. Alexander, Of the
North Carolina railway, VIII publish a
letter tomorrow saying: president
Hoffman in his letter 10 Governor Rus
sell says he was III consultation With me
and our directors before the ninety nine
year lease was consummatcd 10 the
Southern This proves he had a chance
to bid on the lease. AS president I
asked him If he would not make Il bid on
the. road and he replied: No. cannot
now. They would run the road down on
me. President Hofman's second let
ter TO the Governor is misleading and
not warranted by the facts. I am as
tonished that he could have made such
a statement"
Director w. G. Maxwell says he was
present when Alexander asked IIoff-
man to bid, and that although this
meeting was held at Hoffman's request,
the latter made no proposition TO lease