The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-11-13


road LOBBYISTS denied that there ever
existed any such plan except in the imag-
nation of the News and Observer. But
as usual the News and Observer was on
the scent of the scheme that was being
Matched out"
lhese were prophetic and weighty
words, which events of the present make
as GEAR as the noon dav sun.
Here is an editorial from the News
ana observer at the same time:
nose who are on the inside know
that Tor two years past Andrews and
husseil have been scheming for the
oouthern Railway to get the State
STOCK IN the North Carolina Railroad"
everybody recognized the scheme to
freeze out the private stockholders and
pocket millions, and that is why Russell
and the Southern Railway crowd was
defeated.
Chapter begins with the introduction
OF the petition in the General Assembly
Tor the reminding of these bonds. Here
the hand of the Southern Railway hobs
up again. Mr. F. Fl. Busbee, attorney
Tor the Southern had charge of the meas
ure. lie appeared before the judiciary
committee in it's behalf, but there it re-
ceived its death blow. Mr. Busbee set
forth in the petition that he represented
New York parties and the owners and
holders of PAP bonds, each in the sum of
$l,0OO issued by the State in 1866 for the
benefit of the Western North Carolina
Railroad.
The News and Observer killed this
scheme to sell the North Carolina Ray-
road by exposing the devious plans that
were attempted with this object in view
Here is what the Observer said Febru-
airy 10th, 1901, at this time
Some of the richest stockholders in
the North Carolina Railroad believe
now, and have believed for five months,
that the Southern Railway was trying
to get control of the stock of that road
in order to freeze out the minority
stockholders.
There is now pending in the Legisla-
ture bill purporting to be for New
York banking firm, asking to sue in the
courts to assert their claim to bonds is
sued by the State.
Many years ago, after long discussion,
the ablest and most mature minds of the
State secured the repeal of the fraudu-
lent bonds, which had been issued by in
competent parties and commutcd AMI adj
justed all the balance OF the State debt.
If the State owed the New York bank
ers any money or any bonds issued prior
to the war, it was either included in the
settlement made about 1876 and carried
into effect under the administration of
State Treasurer, John M. Worth, or it
was outlawed and repudiated. The Leg
islature will, of course, not reopen this
or any other similar obligations and the
men who own the bonds do not probably
expect it. 1t may be that the alleged
claim, which has come up, the payment
of which was recommended by Governor
Russell in his message, may have had
some influence in the desire of interested
parties to foist him upon the State as
Chief Justice. 1T MAY BE THAT 1T
WAS EXPECTED THAT HE (RusselD
and others might be induced to decide
this old claim against the State valid
and turn over for sale 2,340 shares of
stock in the North Carolina Railroad.
which, under the alleged terms, would
have to be sold. Then the Southern
Railway could buy them, and, having
control of the majority of stock, could
proceed to enrich itself at the expense of
the private stockholders.