The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-11-13
NINE CHAPTERS I'm THE RAIL
ROAD SCHEME.

the like but the attempt of the South
ern railway manipulators to obtain pos
session of the North Carolina railroad
is SO plain that nobody will be deceived
by denials. Let us follow the story in
its various chapters, for the men who
see millions of dollars of velvet" in
the transaction have. been planning to
get possession of the States stock for
many months. The various chapters
are as follows:
/. They obtained a ninety-nine year
lease on the North Carolina railroad
seven years before the old lease ex-
pireH. They convinced some good
men that this was good
trade for the State, but they
argued this to themselves: IF we get
a ninety mine year lease, the State will
feel that it has no interest in the road
beyond the rental, we can buy out the
State, freeze out the minority stock
holders and then we can float $S,000,000
on a s4.00O,000 railroad, and pocket the
difference" That is scheme that has
often been worked. and the lease was
the first step-it was to silence oppo-
sition from the State.
2. The second chapter was to capture
Russell, then Governor. He had been
very abusive of the Southern railway
schemes but they needed him in their
business, and in 1898 they added him
to their assets, and he was ready to do
anything desired to further the scheme.
g. Before the Legislature of 1901 met,
letter, which sit is desired shall not get
in the newspapers" to certain parties
This was the first move In the scheme
= - Inc IN islation that would
let the itching palfnSAret hold of the
States stock in the NorthsGAsc,ina rail-
road sssAaa
4. The next chapter was when the
Supreme Court issued a mandamus on
the State Treasurer to pay Theophilus
White certain money which the Legisla-
ture had declared should not be paid.
The law was not violated and the Con-
stitution overridden to pay Theophilus
Whiteaa paltry few dollars, but TO ES-
TABLISH A PRECEDENT WHERE
BY A PLIABLE SUPREME COURT
COULD ISSUE A MANDAMUS AND
ORDER MONEY PAID OUT OF THE
STATE TREASURY IN DEFIANCE
OF A LEGISLATIVE INHIBITION.
If that had been acquiesced in. the
holders of these Western N. C. r. r..
bonds would now have mandamus on
the State Treasurer to pay the bonds
upon which suit is now being brought
by the State of South Dakota, which is
the public partner of the schemers.
s. Following in the wake Of the
White mandamus, it was necessary that
majority of the Supreme Court
should be ready to stick to that man.
damus and give the schemers the man
damus to compel the payment of the
interest on the Western N. G. r.. r..
bonds. This explains why the Morning
Post, organ Of the Southern railway
was so zealously at work to have Gov
ernor Russell made Chief Justice of the
Supreme Court. They believed he was
reliable
g. The next chapter brings us to the
message of Governor Russell to the
Legislature in which heA suggested that
the bonds now being sued on by South
Dakota might give trouble and show
ing how much the State needed money
for the education of the children which
could be obtained by effecting sale of
the North Carolina railroad.
Z. The next step was the Fabius HI.
Busbee bill permitting the holders Of
the bonds now being sued on to bring
suit:in the State courts, the object of
which, of course, was to virtually re-
peal the act of 1879, which repudiated
three fourths of the par value of the
bonds declaring that the State would
them.
s. Then came the impeachment pro-
ceedings in which the leading attorneys
and lobbyists and boss officers of the
Southern Railway exerted every effort
in their power to prevent the convic-
tion of the judges who had issued the
peremptory mandamus to take money
out of the State Treasury which the
Legislature had ordered the State
Treasurer not to pay.
g. Publicity and honest opposition hav-
ing prevented the success of these vari-
Gus schemes to get the ownership Of
the North Carolina railroad in the North
Carolina courts. the schemers manage
to make South Dakota the cat to pull