The news & observer., 1897-02-23

| bic terms, he would like to know"
Col. Overman Qetter read) replied that
if desired, he would call a meeting of the
directors. Accordingly Col. Overman
called a meeting for the 11th of July.
Col. Andrews was there with PROPOSE
| ton to lease-that he had an option on
the Atlantic and Danville from Danyille
| to Norfolk, also a road called the North
Carolina Midland with only a 80 mile gap
to get line through to Charlotte. If
they could not get the North Carolina
Railroad they would consolidate these
other roads, but preferred the North Car
olina Railroad for the purposes of a
great East and West line as well as
great North and South line, but if they
could not get the lease renewed-they
wanted to take up the betterments, but
they were willing to pay per cent and
taxes Col. Overman proceeded on imma-
terial points, saying finally that he was
afraid they would take up the better
ments.
/ Q.-Capt. Day: What did you think
they could take up, Captain?
! A.-Col. Oyerman: II thought they
would take up the heavy iron, engines
and cars and leave us some old cars and
engines"
Col. Oyerman thought the Mocksville
and Mooresville gap could be built for
S3.O00,000 (He meant $300,000) Then
| the Raleigh meeting was gone
into. The directors first agreed
to demand taxes (the meeting was 23rd
july and the other terms were agreed
upon except as to time.
After this. a meeting was called for
Burlington. Mr.. Spencer, their attorney
Mr. Ryan and Col. Andrews were there
The board at first refused to lease the
road for 80 years, but agreed for so
years. Then a committee composed Of
Mr.. Maxwell, Capt. Alexander and Mr..
Spruill reported the 80 year agreement
The resolution was carried to Mr.. Spen-
Ger, who returned answer that they could
not take it for less than 80 years, and
then this concession was made-two flor
80 years. voting against-of whom Col
lOyerman was one. He had it from consul
Itation with friends then that the lease
was a good business transaction. The
meeting to ratify later was at Greensboro
l-he was not there. There was no secrecy.
Mr. Maxwell had seen Mr.. Hoffman,
who had declined to bid. One thing con-
sidered was the ability of the lessee to
carry ont the terms of the lease, and
that inleasng it to the Southern Railway
Company, they would have better se-
lcurity, as the road was necessary to the
Southern for it's life.
In 1885, he was sent for by Governor
Scales, who told him he thought he would
have an offer of an extension Of the
lease of the North Carolina Railway at
8 per cent, and he was inclined to favor
lit, and had asked him (Col Over
mani to look into the matter
Since then he had been giving attention
to the North Carolina Railway. His
lfather had helped to build the road, and
lhad sold his stock at low figure, where
las he (the witness) had seen his stock go
up from 90 cents to $1.35. The rental of
the North Carolina Railroad had never
been defaulted on because the link was
necessary. Mr.. Manning drew out by
lquestions facts favorable to his side, but
mot material to the main outlines.
Cross-examined-Day "Do you know
what they pay for the Atlanta and
Charlotte?"
Overman: Il don't know-never been
over it in my life"
| Day: did you know they were pay
ling 81, 750 a mile?'
0verman: mo"
/ Day: WAS not the best way to ascer-
tain the value, to enquire into the price
paid for that road?'
Col Oyerman went into a history of
the lease in 1872 at per cent and no
effort was made TO annul that lease, and
thought that per cent now was
good price.
Day: Don't you think that it was
your duty to compare the price paid for
that road with the price paid for other
roads?"
Overman: 1--WE knew the value of our
property. / do not think any property
in the country had such a condition to
return the property in its original condi-
tion.''
Day: did you confirm your opinion
of the value by comparison with other
roads?'
| Overman: Il knew the value of the
road and that they could return it
stripped naked and bare; I thought it
was good trade and that was the con-
sensus of public opinion"
Day: Don't you think it was your
duty to ascertain the value of other
similar railroad property?'
| Overman: Il was so well satisfied it
would be good trade, as to rate, taxes,
organization expenses, with betterments
/ to go to the lessor that I was willing to
make it for the short term and not for
| the long term
| Day referred to Judge BurwelPs re-
mark that this was the best railroad
property in the South and if that were
| so, was it not worth more than 81, ,750
| per mile, the amount paid for the At
| lanta and Charlotte Railroad and do you
call that good trade this road leasing
for 81, ,150?
Overman: II wouldn't say it was II
good trade if the Atlanta and Charlotte
Airline were surrounded with the same
conditions as the North Carolina Rail
road"
Day: did you look into the gross and
net earnings of the roadg'
OYerman: ''Yes, but l am not able to
remember them now"
Day: Didn't you know that one report
| Of the Railroad Commission showed that