The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-12-19
BUTLER & RUSSELL
Their Own Evidence Convict Them of
Conduct That Will Forever Damn
Them in North Carolina.

Hoke Justice, bHd nos challenged the
right of the Supreme Court to order the |
payment Of money which the Legislature !
had solemnly declared should not be paid |
if that protest had not been followed by |
impeachment proceedings-who believes
that the intention of bringing the matter
before the Supreme Court would have
been abandoned "a little while before |
ern Railway attorney, who appeared in
the case when the unconstitutional, ille-
gal and revolutionary decision was |
rendered by the Supreme Court that |
it could by mandamus compel the |
State Treasurer to pay out money which, |
by formal act, the Legislature had said |
should not be paid-the same Southern |
Railway lawyer was the open attorney |
(Butler was an attorney also but not |
known to the public) of the New |
York litigating bondholders who were |
virtually driven out OF the State courts |
by threats of impeaching the judges for |
doing in a very little case exactly what |
they were going to ask them to do in |
very big case. The precedent of paying |
out money against the prohibition of the |
Legislature having been settled in the
oyster case, the New York bondholders
sworn testimony Of Ex-Governor Russell |
now, if not then, one OF their attorneys
were ready to go to the Supreme Court
of North Carolina and ask them to give
them the same mandamus they gave
White to compel the Treasurer to pay his |
outlawed claim. If White could be paid a
small claim against the legislative pro-
hibition, the same ruling would enable |
the New York bondholders to get man
damus for the payment of interest on /
their bonds. But for the threat of i'm |
peachment, who believes the New York
hondholders would have abandoned their |
intention of asking the Supreme Court
to do for them exactly what the court
had done for White?
Where do the Southern Railway specu-
lating big men in league with Russell, f,
Butler Co., come in? They doubtless
hold some of the bonds-perhaps most OF
thcm-and are behind Schaeffer Brothers
partly for that reason. The chief motive
has been limited at. They hope to see
the State lose the suit. If it loses the
State must pay in the neighborhood of
$3.50 900. 1t has not a dollar in the State
Treasury but deficit How will it pay
The Southern Railroad magnates, behind
this whole litigation, do believe that, in
stead of issuing new bonds, they have
enough power to influence the Legislature
to sell all the States stock in the North
Carolina Railroad. They already control
most of the private stock or could put
their hands on the bulk of it in short Or
der. If put up for sale. they know that,
having secured for the Southern Railway
99-year lease, no other railroad folks
would bid upon the States stock. Capt.
lallSlS WOulQ not Dld nISn DecduSe lHey
know the Southern Railway management, |
having control of the road, could manipu
late the stock at will. Therefore they
feel sure they could buy it at from $50
to 200 They could at once stock it for
from $50 to 400. and pocket the difference.
The Governor says the State would not
al cfn huf he CHI
lose the suit. he would call the Legisla-
ture together in the last extremity and
recommend the issue of new 3, 31s or 4
per cent bonds to pay the debt. Very
we'll. The Governor would do that, but
he has no veto power. The Legislature is
supreme. Every power the Southern Rail
way manipulators and spectators could
exert would be brought to bear to con-
vince the people that it would be better
to sell the stock at nearly or quite twice
its par value, retire with the big profit.
than to hold on to it and issue three
quarter of million dollars of new bonds.
The plausible argument, contained in
Governor Russell's message to the Legis-
lature printed today, and freshly printed
yesterday in the Raleigh organ of the
Southern Railway, is the plausible argu-
ment that certain Southern Railway
folks, who want to buy the States stock.
have been making for some time. Or
course some officials will be loud IN
denying that the Southern Railway is be-
hind this gigantic attempt to hold up the
State. But some of the men high UP in
the councils are behind it, either on their
personal account or for the railroad. II
unfortunately the State should lose,
everybody will see that certain Southern
Railway bosses will move heaven and ,