The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-26

ana the giving OF nOllCe 10 lnc StOch>
holders, as the most prudent and the
safest course. His advice on this point,
he said, was not taken.
"You were not overruled by Mr..
| Finch?" asked Mr. Maxwell.
Il am quite sure that Mr.. Finch did
not insist upon an immediate applica-
tioH," replied Col Hinsdale.
| Mr. Maxwell asked if anything had
been said of the advantages of the propo-
sition to lease by the parties repre-
sented by Capt. McBee over those of any
other bidders.
Col. Hinsdale said he remembered
there had been something OF this kind,
tha: Capt. McBee had said he did not see
how any such proposition as the one
to build to Sanford could be made to
pay ,and if any such lease were made,
he had no idea it would be continued,
as the profits would not be sufficient to
enc BILE the payment of the rental Capt.
McBee had said further that if the road
should be leased to the parties he rep
resented, it would make the shortest
and quickest route for the large amount
| o. truck raised III the vicinity of New
Bern.
Upon question by Mr.. Maxwell, Col.
Hlnsdale stated what took place in Nor
folk. The bill, he said, was read to
Judge Purnell by himself. No represen-
tatjons were made to Judge Purnell be-
sides what was in the bill. After hearing
the bill, Judge Purnell decided that the
complainant was entitled to his petition
Tor receiver. Then Col. Hinsdale re-
peated his testimony given at the trial
OF Capt. McBee regarding Judge Pur-
Gelfs uncertainty concerning his right
to make an order of this kind out of
the State. Col. Hinsdale said he re-
nlembered there had been something said
about Judge Purnell coming into the
tate to sign the order. After he came
, elk to Raleigh, Col. Hinsdale said he
Investigated this question further and
came to the conclusion that an order of
this kind made outside of the State
was not legal, and he so informed Capt.
Day
Gen. Gilmer asked Col. Hinsdale if he
knew at the time he and Capt Day We're
first consulted by Capt. McBee, that he
then had a proposition to lease pending
before the Governor. Col. Hinsdale said
he was so informed at the time.
Asked why Mr.. Finch happened to come
to North Carolina at that time, Col.
Hnsdale said he had a supposition that
Mr. Finch had been informed by some
one that an application Of this kind was
going to be made.
Then Gen. Gilmer asked why it was
| that in the bill Finch was alleged to
be the owner of As shares, when the
transaction with Mr.. Smith was for AZ
shares Was this not, he asked, for the
purpose of keeping the public from
knowing the identity of the party from
whom the stock was obtained.
] Col Hinsdale admitted that it was
/ for the purpose of keeping this knowl-
ledge from the people. Then he went on
rather heat edly:
And | will say l don't think the pub
lie had anything to do with it, that Mr..
Finch had right to purchase stock
from anybody he pleased"
do you think that Mr.. Finch had a
right to apply for the appointment of a
receiver for this property without own
ing a single share of stock?"
why, no.
'Did you not commence the prepara-
ton of this bill before MI Finch had
acquired any stock in this company
Il did not know when we began this
bill that Nh. Finch owned no stock, but
! dale then went on to say that he knew
that unless Mr.. Finch, should acquire
some stock any papers that might be
prepared would be worthless.
Col. Hinsdale adm - that the law
required that before bill of this kind
could be filed the complainant must be a
stakeholder in the corporation con-
cerned.
hn mo
ton of this bill with the knowledge that
Mr.. Finch was not a stockhoder?"
Yes, and knowing that it would be
futile unless he did become a stock
holder"
Asked if he knew why Capt. McBee
desired to lease the road at that par
ticular time, Col Hinsdale said positively
that he did not
AT the time that you began the pre-
,,paration of this bill had you any c.ie,t
Railroad?"
mo, SIR
Il ask you if the institution of this
bill and the manner of it's institution, was
not to force a lease of the road?"
Il have said that the purpose of this
bill was to secure the lease of the road
out delay"
Who. suggested Capt McBee as re-
Iceiver?"
Capt. Day"
You said that you were of the opin-
ION that notice should be given?''
i said SO, and l say so now
Who prOtested?"
Capt. McBee."
Collector E. c. Duncan, Of the Internal
revenue Department, testified next.
We're any propositions to purcha Sc
STOCK submitted to you, and by whom?'
asked Gen. Gilmer
Yes, Capt. McBee, on Tuesday. the
zsfa CT February. Capt. McBee wanted
some stock and he had been told that |
was connected with some parties own
ing STOCK. On the night of Monday, the
zzc, l received phone messag ge from
Capt. McBee, asking me to come to
Capt. Days office. I was tired and
could not go. He called and asked me
ii | had any stock in Raleigh. He did
not say for whom he wanted the stock
but did say something about the filing Of
a bill in equity
MIR. Duncan started to po haol, +o Ch