The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-09-08
THOM AND JUSTICE
IN HOT COLL0QUY
North Carolina Attorney
Accuses Railway Of
Concealing Facts.
THOM REToRTs
HOTLY THERETO
Attorney for Southern Flatly De-
nies, and Accuses Justice of
Violation OF Legal
Justice De
mands to See
Book.

WASHINGTON, d. c.. September L.
Speaker Justice. of the North Carolina
House OF Representatives, leading
counsel for the State of North Caro-
line In the Southern Railway ratio
hearing case now going on here.
! sprung a decided surprise on the rail-
| way officials to-day at the hearing
before Judge Montgomery, the master
| In chnncery in demanding that the
Southern Railway Company's books be
produced In order that certain points
along which Comptroller Plant had
testified might be verified by an ex-
pert accountant In the presence OF
Mr. Justice, MIR. Plant and Judge Mont
| gomery.
| Mr.. Justice stated that his object
| in securing the books was to show
I that the Southern Railway Company
| by subterfugc was concealing the
| amount of salaries paid to the officers
\ of the company.
| Mr.. Plant declared that he would
allow no accountant to go into his
office and make drag-net invests
I CATION of his books. Judge Mont
geometry ruled that counsel for North
/ Carolina could see any entries rnndo
Ion Mr. Plants books verified in the
ipresence or the master and Mr.. Plant
himself, but that the books could not
be opened for public inspection.
These developments were brought
about as the result of n question Mr..
Justice put to Mr.. Plant as to whether
| the officers of the Southern Railway
Company and OF some of the lines In
(which the Southern owns stock were
receiving salaries from such lines.
Mr. Plant testified that on the Mo-
lbile and Ohio. the capital stock or
which is owned by the Southern Rail
way and whose principal officers are
Southern Railway officials, some South-
lern officials did receive salaries from
that road, but on a number of other
Hines inT,wiiich the Southern. was In
lterested and whose officials We're Of
fcials OF those lines, they did not re-
ceivc any salaries from such roads.
Thom Resents Question.
!. 1t was then that Mr.. Justice de-
/ clared his object was to prove that the
4 Southern Railway Company, by a sub
! terfugc. was conceallng the amounts
! paid to the officers of that company.
/ Counsel Thom, OF the Southern Rail-
/ way. with considerable feelng, resent
cd what he regarded as Mr.. Justices
assumption. He declared that 1T was
utterly without foundation, was offen-
sive. and that 1t could rot be justihed
Bin legal ethics. Mr.. Justice replied
cal and offensive, but hIr. Thom de-
\ clared that he used the language he
| did because Mr. Justices language was
to him exceedingly offensive.
"If Colonel Andrews and Mr.. Finley,
4 by the vote Of the stockholders OF the
| Southern Railway Company, IN otner
1 roads. or by the influence of the South
i ern in other roads, are paid salaries
nv them," Mr.. Justice declared. then
| the Southern, In consideration OF that
i fact. gets the services of these gentle-
! men at less than what 1t otherwise
would have to pay, and we are entltied
| to know It,"
l that the only question involved was
i whether or not there We're any undue
4 expenditures made by the Southern
i out OF its treasury In respect to It's
/ operations He declared that the Soutn-
4 ern might be the owner Of half the
continent, and might be rolling IN
4 wealth from it's outside investments,
i and stiil that would have nothing to
L do with the Justice of Its rates.
!. .Justice Reiteratcs Demand.
i Mr.. Justice reiterated HIS demand
4 for the production of Mr.. Plants
books, and that his testimony be veri-
To this suggestion Mr.. Plant re-
/ piled warmly that he would not per-
4 nit an expert accountant or any one
else elected BY any 4one to 20 into
4 his office and make drag-net tn-
i yestigation, put that he would be
i willing to go through his records and
4 submit details in respect thereto to
j any question Mr.. Justice had pro-
4 pounded in relation to the facts to
which he had testified. Judge Mont
gomery settled the disputed question
i by declaring that MIR. Plants tests
+ J. -, e. 49, -I,x Al..oE
1 of himself and Mr.. Plant. At this point
a recess was taken.
4 At the conclusion of Comptroller
PLANES testimony, T.. III. Green. for
seven years general freight traftlc
manager of the Southern Railway. took
the stand, In.response to a question
4 from Counsel Thom, he testified that
the freight rates in North Carolina
We're not unreasonably high, irst be-s
cause they We're made by the North
Carolina Railroad Commission; second.
| because they had been reduced ma
.iteriallY by the commission from time
Ito time to; third, because the cost OF
handling had increased; fourth, that
they did not yield an unreasonable
return; fifth. because they We're lower
4 than any other form OF land trans
4 EIportation; sixth. because they We're
4 lower than the general average OF
SIlocal rates in other States through
i (which the Southern runs, and, finally.
4 because the people served by the
4 Southern Railway In North Carolina
are generally prosperous.
4 Carolina Reduction Greateat.
4 When asked by Mr.. Thorn whether
II there was any basis OF local conibina-
4 ton rates in the South as low as that
4 required by the recently enacted North
4 Carolina State statute, Mr.. Green res
%. st~. 1a&ls
4 uuired much greater reduction than
i any other State served by the Sonsh-
4 ern, which was the sum OF the local
Il plus as per cent. In South Carolina the I
lrate was only 20 per cent, while IN y
Eo,her States 1t was 10 per cent.
s.n, CON ce "A ~