The times. [volume] (Richmond, Va.) 1890-1903, 1897-09-25

In the North Carolina Railroad Hearing
what Opposing Counsel say.

WASHINGTON. d. c.. Sept. 2L-The
hearing before Hon. Kerr Craige, the
special master appointed by Judge Simon
ton, OF North Carolina, to take testimony
on the charges OF fraud In connection
with the lease OK the North Carolina Rail-
way by lhe Southern, was continued here
to-day.
Several officials OF the Southern road
and a former auditor Of the Richmond
and Danviue road. were subponaed by
counsel for the state 20 produce books
and vouchers. which the latter claim con-
tain the entries 90 sustain their conten-
ton OF manipulation OF the Southern rail-
way books. but on the advice OF counsel
for the southern. the witnesses refused
20 produce the books and vouchers ealied
for The matter was certified 20 Judge
Simonton's court. where "a ruling Will be
asked. The hearings viii be resumed at
Raleigh. y. c.. ON the 2Sth Instant
Z. w. Averill, Of Raleigh, one or tne
counsel for the State IN speaking OF .ue
case tonight, expressed inc opinion lnat
the chargcs alleged against tho southern
railroad had toCn proven. 49,.
In the hearings IN New ,s lorA eo, De'yle ne
Mr.. Craige.' be said. witnesses lot We
state were produced 20 prove that we
Southern railway falsely threatened tne
old directors of the North Cat9liilA W. WI
mcnts placed on ~ by the Nchmonl anu
Danville railroad during its term as le--e'
which the Southern railroad nad no l9W
or to do The state also claimed ihat
the books OF the Southern railroad had
been manipulated for the purpose on lh-
ducing the directors or the Norm ,aIo-
lima 10 regard the latter as having niue
or no earning capacity when as "a matter
of fact IL was earning from 10000 10 Np,-
600 I'm excess Of its expenses. ana lhe
amount paid by the lessee for the rent
"The State also offered 20 prove that
the Central Trust Company. OF New
York. TO which the Southern had given
mortgage. had no standing In court IN
this case. as the assignment OF the tease
Of the North Carolina road, made IN
1895. TO it as trustees Of the Southern
bOndhOlders was not made unih TOUR
months after the beginning or tnls sun.
at the Baltimore hearing. President
Hoffman. of the various rHlroads coIn-
prising the SeabOard Airline system.
testified that his roads had protested
against the North Carolina road making
tho lease Of 1898 six years before me lease
Of 1871 had expired, and his company was
ready TO pay 500 600 per year for thirty
wear lease At tho meeting at Raleigh
the State will offer witnesses 10 sustain
the charges that money was Improperly
spent by the old directors of the North
Carolina road 10 prevent an investigation
bv the Legislature into the making or
this lease"
Mr. Fairfax Harrison general solicitor
Of the Southern road and who appears
in the controversy. Is disposed 70 regard
the whole proceedings that are now go
ing on as absurd. He said.
"Tt Is the laughing stock of the people.
and the whole state OF North Carolina
! As amused at the testimony that has no'n
BROUGHT ont hv the other side. The pro-
ceedlngs have now got to the state or acute
absurdity The other side have finished
their testimony. and we will submit 20
| the court a complete and elaborate g'
| roet ~ the whole question so as 70 nnallV
| dleDose Of the entire charge or fraud,
| telling ths whole story or the transac-
| tf0ns Leading un 20 the lease. which were
| those of an ordinary business nature.
our case is already won II was won
when Judge Simonton granted the pre-
| liminarv Injunction restraining an lnter-
ference with the operations or the lease.
and we have nothing % fear Ine othet
side have not nroduced any evidence or
! suggested any line Of testimony showing
! in anv manner th@ improper use or money
Ina the whole tre 7factiou.
! Concerning tho assignment or me yea 81.
| Of 1895 10 tho Central Trust COMPANY, pr
| was made entirolv indenondent on wv
| euit and had nothing whatever 10 40 WIN
! N The assignment was made ln me uruAl
| course Of business. and was NOT hhetenf,
| bv this proceeding. There arc charges or
! fTand Tho counsel for The state nave
| otandonod the theory ON which theY
| started ont that there was mutual frauu,
/ and are irving TO build up theory vi
fraud iu law