The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-02-22
GOV. RUSSELL WILLING
BUT THE RAILROAD COMMITS
SION FAILED HIM.
REFUSED TO LET the RATES STAND
This Knocked tho Whole Business Into a
Cooked Hat--WilI the Governor Re-
fuse to Help Fight in
The Courts?

The proposition of the Southern Rail-
way to buy peace in the courts on the
North Carolina Railroad lease question,
by leasing the Atlantic and North Caro-
lima Railroad has been renewed.
Details of this proposed lease were
printed in this paper a month ago, and
some additional information concerning
it given at the recent meeting here OF
the Atlantic and North Carolina Rail-
road. Within the last few days, how
ever. new element has entered into
the deal An element that has been
knocked out of it partially, at least, but
one that is still causing much comment
and speculation.
The original proposition of the South
ern Railway to the State-for it was the
railroad that made the proposition for
a compromise and not the Governor
was to take uDe Atlantic and North Car
DINA Railroad for thirty years, pay u
per cent interest on the S320,0O0 bonds
of the road; per cent on the S1,SO0,OOO.
of which the State owns S1,200,000; buy
all the rolling stock of the road for
Il
ment, and pay all the attorneys fees
and expenses incurred by the State in its
fight to annul the 99-year lease Of the
North Carolina Railroad.
This was Col. Andrews proposition.
Governor Russell thought the Southern
ought to pay 215 per cent on the ST.
100000 stock. This would give the
State $4,000 year on its 100000 of
the stock Without this 21a per cent
the Governor said he couldn't play. With
it. Andrews said he couldn't play; that
it was decidedly too steep for his pile.
And so the matter stood until one day
last week the News and Observer an
nounced that the Railroad Commission
would. when it met, reduce rates on
certain roads in the State. Among those
mentioned were upwards of half dozen
owned by the Southern.
Col. Andrews and his crowd at once
decided they could see that 211a per cent.
so they let the Governor know what
they We're willing to do. But the viii
lingness had a string to it. viz: That
the Railroad Commission should not re-
duce passenger rates on any of the lines
owned or operated by the Southern.
The Governor said he was not sure
he could control the Commissions ac-
tien in the matter. but he'd try it; he'd
apprise them of the situation fully and
he was sure they would appreciate it;
that they knew he had his heart set on
leasing or selling the Atlantic and North
Carolina. Railroad and he thought they'd
do all they could to help him.
But His Excellency recokoned with
out his host.
The Commission said they were pledg-
ell to reduction of rates. they thought
they were too high; and so yesmterday
morning they went ahead and swiped
them down p per cert. And that's
why Governor Russell was out of hui
NOR yesterday, and Colonel Andrews re-
fused to play ony more.
1t was expected that the deal would
be consummated yesterday morning. but
it wasn't, and last night it seemed as
far off as ever. VIII the lease be made
today so that it can be submitted to the
board of directors at Newbern tonight:
it is not probable. though it nal be done.
as the Governor is said to be threatening
that if the Southern goes into court
about the rates, he'll not employ counse,
to fight the case for the Commission.
If this is true it is pretty safe to say
there'll be plenty of lawyers in North
Carolina who viii offer their services to
the Commission free.
If the lease of the Atlantic and North
Carolina Railroad it made, it is to be
submitted to the Legislature for its APP
proval.