The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-20
The Particulars Fully Set
Forth.
Continued from Page One)

W lNdlelSn on Sunday, the list daV
OF FEBRUARY 1904, for the purpose of
| aIallS IN the effort to get possession
OF the said railroad and to iniure
embarrass and obstruct the President
ana Board of Directors of the said
railroad, IN the regular operation and
conduct OF the business of the said
railroad. That the said defendants
met in the city of Raleigh, North Car
oilna, on Sunday, the 21st day of Feb
rtary, 1904, and they again met in
the said city on Monday, the END day
or February 1904, and consulted with
their counsel concerning the matters
aforesaid, and the said counsel at
once began to prepare Bill of Equity
to be filed in the Federal Court at
Raleigh, North Carolina, in the name
OF the said K. S. Finch against the
Atlantic & North Carolina Railroad
company, asking for theappoint-
ment OF receiver for the said rail
road company, that it was understood
and agreed at the time the said Bill
of Equity was being prepared, that
an application would be made to the
Hon. 7. II. Purnell Judge of the Fed
eral Court for the Eastern District of
North Carolina, to have the defend
ant V. r. McBee appointed as receiver
of the said railroad. That neither of
the said defendants was at that time
|
| their said counsel advised them, after
they had been engaged for some time
in preparing the said bill, that suit
| could not be maintained for the ap
pointment of a receiver unless the said
defendant K. S. Finch, whose name
was to be used as complainant in the
said suit was stakeholder in said
railroad. That in consequence of this
advice. the defendant v L. McBee, on
flal 0rI 11xr .Df Fob. ltNy QUO
gested that stock would be procured
in the name of the complainant, so
that the complained might allege in
his said bill that he was a stock
holder in said railroad. That the said
| defendants on the said 23rd day of
| February, 1904. proceeded to try to
| procure stock in said railroad; they
| tried first to procure stock, on time,
/ of T.. c. Duncan, ESQ, who was bona
fide stakeholder in said railroad, for
the purposes aforesaid. and said Dun
! can declined to let them have the
| same, and thereafter the said de-
| PENDANTS applied to Ed. Chambers
| Smith Esq, who was the bona fide
| owner of forty-seVen shares of stock
| i'm said railroad, of the par value of
one hundred dollars each, and said
defendant MCBee offered said Smith
the par value OF the stock, when the
same was worth only about thirty
five cents on the dollar in the market
at that time. This offer was made
about -four O'Clock p. m, on the said
23rd day of February. 1904. The said
Smith agreed to take the par value of
the stock and the said McBee in
| formed him that he was trying to pro-
| cure it for another party, and there
after about one and a half hours later
in the evening of the 23rd day OF Feb
ruary, 1904, the said defendants,
Finch and McBee, called to see the
said Smith at his office in the city of
| Raleigh, North Carolina, and in the
presence of the said defendant Nc
| Bee. the defendant Finch offered to
take the said forty-seven shares of
stock, then owned by the said Smith,
at par, which offer the said Smith
accepted and the defendant Finch
gave to him a paper writing in words
and figures following:
$4,000.
Ninety days after date, 1 promise
to pay to Ed. Chambers Smith, or or
der, for value received, $4,700.00.
Forty-seven shares of stock of the At
lamtic & North Carolina Railroad Com
rany deposited as collateral for this
note, being certificate No. 1896.
x. S. FINCH (SeaL)
Witness: MARIE E. STUNKEL."
"That no money whatever passed
from Finch to Smith in the transac-
ton and the certificate of STOCK was
endorsed in blank by Smith and
handed to the said Finch, and the
said Finch Immediately handed the
same back to Smith to be held by him
as collateral security to the said note
| of $4,700.00. That the said stock was
procured for the purpose of, bringing
the said suit in the Federal Court in
the name of X. S. Finch, as aforesaid,
who claimed 10 be citizen of the
state of New York, as aforesaid, to get
possession of and impoverish the said
railroad and to deprive the President
and the Directors of the said rail-
road of the possession of the same, as
charged in the bill of indictment. mat
the said Bill of Equity was prepared
before the fOrty-seVen shares OF stock
were actually procured, ana the same
was sworn to between IL and j
o clock of the night OF the 2}"d LAY
| 81 February, 1904. That at the IN
stance of the said defendants, Finch
and McBee, it was alleged by the SAID
Finch in the said bill of equity that
he was the owner of forty-flVe shares
of stock in the said railroad, ana TINS
was done for the purpose OF conceal
ing the name of the person from whom
| the said stock was prOcuTeu' anu tle
transaction in regard to the same.
: That the said defendants well knew
that the said Governor had given no.
tfce some time before the 2Oth DAY OF
February, 1904, that he would receive
bids for the lease of said railroad UP
to the 9th day of February lava, and
the defendant V e. McBee, on the zofd
f day of February, 1904, Withdrew the
: propositions to lease, made 10 SAD
? Governor, and together with ms CO.
: defendant Finch prepared the sald plll
r in equity to have the defendaht '. r.
McBee appointed as receiver Tor the
purpose of taking possession OF the
, said railroad, thereby preVehClllB the
said Governor from making a proper
lease as contemplated, after the bids
were in on the 9TH day OF FEBRUARY,
1904, and to secure the possession OF
said railroad upon such terms as they
might see fit That the sald GoEe<nor
received from the defendant McBee,
or the 23rd day of February L9o4' d
f letter Withdrawing his salo Dld IN
E words and figures as follows
Raleigh, N. c., Feb 20 1904,
! | 'sHis FxcaIIancv Hon. ChaS. d. Ay-