The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-17
A Dark Conspiracy
Laid Bare in
Court.


McBee was held to court in $4,000 bond
for conspiracy with X. S. Finch in OBJ
tanning the receivership of the A. and N.
G. Railroad, the following was presented,
Col. John w. Hinsdale being on the stand
as a State witness and the questions being
asked by Attorney General Gilmer.
Q. Did McBee tell you he represented
a Party who owned stock?"
A. II don't remember whether he did
OF did not
Then Col. Hinsdale explained that lie
knew that it required nonresident
stakeholder to file bill in equity in the
Federal court, that there were no sugges-
lions OF this to him, but it was implied
that the suit should be in the Federal
court; and that this was considered pre-
tcrable. He was not able to say wheth-
er 1T was McBee or Day who spoke of
the Federal court, nor could he think of
single reason that was given with re-
gard to having it there. His first CONVEX
sation with McBee was on the night of
the Goth and he did not hear HIM speak
OF withdrawing his proposition to lease.
Z. Was the contingency of this suit
based upon any action the Governor
night take with regard to leasing the
road to McBee?"
A "McBee said he had a proposition
before the Governor and he did not think
that Governor Aycock was going to lease
to anybody.
@. did McBee tell you what he was
going to DO if the Governor would not
lease to him or anybody else ?"
a. Mr.. MeBee went over the whole
SIT Yyc ion
States proxy in September and his not at
tending the directors meeting in Novem-
Der. He said the proxy was defeating
the Will of large majority of the pri-
waite stockholders who favored lease,
and if it could not be obtained through
the Governor then it should be by some
other way. The object OF the suit was
to effect a lease
Questioned as to whether he knew that
the Governor had announced that he
would receive competitive bids UP to Sat
urday, February q. he said he did not.
Q. did McBee tell you of his solicit
tude for the stockholders and the road?'
A. He said the road ought to be leased
that the will of large majority
OF the stockholders was being thwarted
by the refusal of the State proxy TO go
into the meeting and there was no way to
erect lease except through the courts"
Mr.. Hinsdale said he thought McBee
was representing parties who wanted to
make through line and who would build
a road from New Bern by Washington to
Edenton and thus give a competitor to
the Atlantic Coast Line. Il thought 1t
would be best to all to lease the road
and this was talked at the conference.
He stated in answering questions that
he knew there were parties in Raleigh
owning stock in the A. and N. c., but
they had not been consulted, nor was
there any suggestion to call them in,
though he knew several stockholders
ready to cooperate to bring about lease.
He knew of nothing being said of a
proposition to place grievances before the
Board of Directors or to consult them or
the stockholders, this being because eight
or the twelve directors were appointed by
the Governor and the Board of Internal
improvements and that these would act
with the Governor and end the matter.
Q. Don't you know at that time that
the Governor was considering PROPOSE
tion from McBee to lease and that propo-
sitions were pending?"
A. Il think So
@. why did McBce bring on the suit
then?"
a. Because he said he did not believe
a lease could be effected through the
Governor. That was his conclusion"
Col. Hinsdale stated that McBce had
not said he owned stock in the railroad,
and that until Finch came he did no know
that. That Finch arrived in Raleigh he
thought. on Sunday night, February q,
as he saw him on Monday.
Here questions asked by the State con- |
corning conversations between Col. Hins |
dale and Finch were objected to, as no /
connection had been shown between Finch |
AID McBee, and McBee was not present. |
The court sustained the objections say
ing that sufficient foundation had not |
YET been laid.
Col. Hinsdale answering about conclu- |
stems reached on the night of the 10th I
said none had been rachel that night |
everything was then tentative. That Finch |
was mentioned that night, though he did
not remember that McBee had said he
would telegraph for him. He saw Finch
and McBce together on Monday morning
at Capt. Days and then the facts in the
notter were gone over again. He did not
ask Finch if he had any stock and no
prop osal could have been made to enter
suit without stock being owned.
Q. WAS there a suggestion made that
he acquire stock"
A. Eyes, this was later"
c. 'Who were present."
A. Finch, McBce and myself"
c. 'Why was Finch suggested in place
of McBee:"
a. Finch was a nonresident"
q. what of McBee?"
A. 81 don't know. He did live here and
/ don't know whether or not he is a resi-
dent of tha State
C. do you know how long it was be-
fore Finch acquired the stock?"
A. ION the 23rd"
@. do you recall any suggestion as
to the party from whom it could be ac-
quired?"
a. 81 think Duncan's name was men
tened
Q. ''Was application made to Dun
can?''
A. Il don't know
@ Ibid you hear defendant say"
A. 81 don't remember
@. Who prepared the bill?
TNax ynucpIf MpRcc and