The news & observer., 1904-05-24
Attempt to Get A. & N. C.
R. R. For Nothing.
Is NOT A NEW GRAB
Mr.. Pou's Interview Throws Light Up
on the South Dakota Plan Which
Might Have Been Based on
Atlantic and N. Carolina
Railroad Bonds.

One matter to which the committee
to investigate the Atlantic e North
Carolina Railroad calls attention was
the employment of lawyers by the
railroad to oppose the sale of the
States stock, knowing that Mr.. James
H. Pou, of this city was one of the at
torneys employed by President Bryan,
reporter yesterday asked Mr. Pou if
he would make statement about it.
Mr.. Pou said:
II have no objection to telling you
everything | know about the PROPOSE
ton to buy the States interest in the
Atlantic & North Carolina Railroad.
I'm 1899 we were offered a retainer
by parties who wished to buy the
States stock for 25 cents on the dol
lar. We declined. Again in 1900 we
declined to have anything to do with
that proposition. In the latter part of
1900 it was announced that at the end
of that year the firm of Simmons, Pou
& Ward would be dissolved. | was
asked if |, then alone, could be en-
ployed by those parties. / said no.
About that time | was asked to appear
for parties who wished to buy the re-
cognized but uncompromised, bonds
of this State. | was told that litigation
was in contemplation which might in
crease the value of those binds very
greatly. declined h:.tiy Def9"e
the Legislature of 1901 met President
Bryan saw me in Raleigh and told me
that he believed a very strong effort
would be made to induce the General
Assembly to sell the States interest
in the Atlantic & North Carolina Rail
road, and that he wished to employ me
to oppose the sale. He said that the
proposition was to offer the State 25
cents in the dollar and. in case of ne
cCssity, to increase this bid slightly,
and that they hoped to buy the States
stock somewhere between 25 and 80
cents IN the dollar. He said that he
believed, this would be a very bad
trade FOR the Sac and disastrous 20
the private stockholders, and to the in
terests of the section through which
this road ran. He said that Eastern
North Carolina had just begun to de-
velop, and that in his opinion the value
of this road would increase very rap
idly; that every month showed an in
CT ease in receipts; and that if the East
continued to improve, the road would
soon be very valuable property. II
told him that | would be glad to ap-
pear in the matter and resist sale
of the States stock on any such
terms. He sent me lot of the reports
of the road for many years back, and
studied the history of the road, legal
and financial. | came across the case
of Christian VS.. The. A. N. G. r.
r., 1873 u. S., and studied the record
and briefs therein.
II came to the conclusion that the
States stock in the road was intrinsic
ally worth fifty cents in the dollar at
that time, and that sale at 70 cents
in the dollar ought not to be consid-
cred | saw that the future OF the
road was promising and that the value
OF the stock would probably continue
to rise. In studying the history of the
road, and especially the Christian
case, to my great surprise | found that
there were outstanding bonds OF this
State to the amount of about $136,O0O,
which had or claimed lien upon the
States stock in this road, and that
the purchaser of the States stock
would not get good title to the same
unless these bonds were paid or COM
promised. | at once saw the signifi-
cance of the exorts then being made
to buy all of the outstanding recog-
nized and uncompromised bonds of
this State. The Soutn Dakota suit
had not been instituted. When it was
instituted | was not surprised. After
| ascertained the value of the States
stock. the prospects of the road and
the difficulties ABOUT sale OF the
States stock with those, bonds out
standing, | became satisfied that the
legislature would never authorize the
sale of the States stock. | advised
Mr.. Bryan that in my opinion ne need
not be uneasy, but that / would keep
in touch with the situation and ADVISE
him il necessary.
mo serious effort was made to Sc
cure a sale of the States stock before
that Legislature. Mr.. Bryan paid me
a fee of $4,000, which | considered a
reasonable one, considering the I'M
nortance of the matter and the time
gave to it's investigation. This fee was
but a small fraction of what was offer
Cd TO us on the other side and refused
by us.
Later events have justified to the
fullest extent President Bryan's pre-
dictions made In the latter part OF 1900
as to the future value of the stock IN