The news & observer., 1905-12-31
Railroad War Brewing in the
West.
Continued From Page Nine.)

Continued From Page Nne.)
over any money. that transaction hav-
ing occurred as it were in the midst
of Mr.. Ans ley-'mit himself SO to
speak. Then Mr.. Powell wanted to
know what security the Southern Rail-
way had for advancing money to the
new road and Colonel Andrews after
reflection stated that the Southern
considered that the stock subscriptions
were held by the Southern as "a se-
curity for such payments.
The difference between a SubScrip-
ton to stock and the taking of a bare
subscription as security when no mon
ey had been paid in and nothing had
been done towards the building of
the road proposed. not being exactly
clear Mr.. Powell continued his cross
examination and Colonel Andrews s
then stated that the amount SO paid
by the Southern had been charged
up to the directors of the new road.
This would seem to imply, of course,
that the Southern had merely loaned
the money TO the directors. all Of
whom it employs in one or another
capacity, il order to enable them to
pay their subscriptions relying for re-
payment upon the salaries which
would become due to such new road 8
directors as Southern Railway en-
ployees
At Least $1,000 Year.
1t was thus that, in a bound, the
examination came down to the salary
Of Colonel Andrews himself. Reply
ing to questions, Colonel Andrews sta
ted that he had paid no money on his
subscription; also that his salary had
not been docked.
But" he was asked, you have re-
ceived enough in salary since the or
ganization of the Johnson City and
Southern in June to pay your subscrip-
ton %
Colonel Andrews smiled jovially and
waved a deterrent hand at the Ste
nographer, whom he cautioned not to
Now, hold on he replied
to Mr.. Powell, Mr.. Biggs in
cited that question. Judge Clark and
10 Daniels put him up to it. They
have been trying to find out my salary
for twenty years"
Under these narrowing conditions
Colonel Andrews refused for a time
to answer until there had been con-
siderable figuring and it was ascer-
tanned that his liability on the stock
to about six hundred dol
lars.
That amount, he admitted, with an
expansive smile, he had received from
the Southern during the past six
months-enough to have paid his sub
scription had the railway seen fit TO
close down on his salary for the ad-
vance made to him as stockholder.
So that the upshot of this portion
of the roSs-eXamination was that the
Johnston City and Southern is an in
dependent corporation; that the
Southern Railway is not a subscriber
to it's stock, but has merely loaned
some thirty-five hundred dollars to
the new road for which it has taken
as security the obligation to take stock
and that this money has, in addition,
been charged up against the stipends
which the several industrious gentle
men concerned draw for their services
from the Southern Railway.
In other words, Colonel Andrews,
Mr.. Miller. Mr.. Busbee and Mr..
Ansley are technically in the position
of hypothecating their salaries in ad-
vance for the purpose of engaging in
Independent competitive railroading
against their employing corporation.
Since they did this, to a great meas
ure with themselves however, the
Southern has no kick coming" even
in the matter of the funds which
Treasurer Ansley, faced with an empty
exchequer. persuaded himself to pay
to himself.
Through all these complications. it
is pleasant to reflect that the Johnson
City and Southern has maintained its
independence!
And it is reassuring to learn that
the vice president of the Southern re-
ceives at least one hundred dollars a
month in salary.
Old Fight Touched On.
OF other matters touched on by the
cross examination Colonel Andrews
testified that he was unable to speak
with knowledge. Especially was this
true with regard to questions con-
cerning recent litigation over the coal
lars of assets were tied up for several
Tennessee by which millions of dol
lars of assets were tied up for several
months on suits brought on behalf OF
minority stockholders in the corpora
tions concerned. The clear intima-
ton in these questions was that the
Southern Railway had been the. real
party in interest behind the suits for
the purpose of hindering and delay
ing and causing embarrassment to the
new road Colonel Andrews testified
that he knew nothing of this and he
was also ignorant of other collateral
matters of a similar character about
which he was questioned 1t is said,
however, that when the suits against
the South and Western were thrown
out of court by Judge Goff last spring
it was the Southern Railway which
paid the bill of costs involved for the
and that this bill
to upwards of 100000.
Southern Railway Contention.
Statements of counsel for the South
ern in the matter of the condemna-
ton proceedings are to the effect that
they are not intended and cannot pos
sibly have the effect of interfering in
the least with the construction of the
line of the South and West