The semi-weekly messenger., 1907-09-10
SAYS Railway Officials are Using
Subtefuee
Justices Assumption Resented by
Thom-Declared it Was Without
Foundation and Offensive-Nant
Declared EmphaticalIy That Drag
Net Investigation Should Not be
Made Of His Books.

Washington, September 7.-SpeaEe!
Justice, the North Carolina house Oi
representatives, leading counsel toI
the state of North Carolina in the
Southern railway rate hearing case
now going on here, sprung a decided
surprise on the railway officials today
at the hearing before Judge MontgCm-
cry, the master in chancery, in de-
manding that the books of the South
ern rilway be produced in court III
order that certain points along Whicl
Comptroller Plant had testified, might
be verified by an expert accountant in
the presence of Mr.. Justice, Mr.. Plant
and Judge Montgomery.
Mr.. Justice stated that his object in
securing the books was to show that
the Southern railway company, b. q
subterfuge was concealing the amount
of salaries paid to the fficers OF the
company Mr.. Plant declared that he
would allow no accountant to go into
his office and make a drag-net investi-
cation of his books. Judge Montgomery
ruled that counsel for North Carolina
could see any entries made on Mr..
Plants books verified in the presence
of the master and Mr.. Plant himself,
but that the books could not be OPEN
ed for public inspection.
These developments were brought
oh a
Justice Nut to Mr. Plant as to whether
the officers of theSOuthern 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-
bile and Ohio, the capital stoock Of
which is owned by the Southern rail- =
way and whose principal officers are
Southern railway officials, some South
ern officials did receive salaries from
that road but on number Of other
lines in which the Southern was in
terested and whose officials also were
officials of those lines, they did not
receive any salaries from such roads.
1t was then that Mr.. Justice declared
his object was to prove that the South
ern Railway company, by subterfuge,
was concealing the amounts paid to the
officers of that company Counsel Thorn
of the Southern railway, with consid-
eraD1e feeling, resented what he re-
garded as Mr. Justices assumption
P-gg g?d shrdlu cmfwyp cmfwyp the
n He declared that it was utterly
Without foundation, was offensive, and
that it could not be justified in legal
ethics Mr. Justice replied that Mr..
Thoms language was unethical and Of
fensive, but Mr.. Thorn declared that ne
used the language he did because Mr.
Justices language was to him exceed
ingly offensive 'If Colonel Andrews
and Mr.. Finley, by the vote of the
stockholders of the Southern Railway
company in other roads of by the in
f1uence of the Southern in other raods
are paid salaries by them, Mr. jus
tic edec1ared, then the Southern in
cosideration of that fact gets the se.-
vices of these gentlemen at less than
what it otherwise would have to pay,
To this Mr.. Thorn objected, saying
that the only question Involved wes
whether or not there were any unnt'-
expeditures made by the Southern oAt
of it's treasury in respect to its oper-
ations. He declared that the South
ern might be the owner of half the
continent and might be rolling III
wealth from it's outside investments
and still that it would have nothing to
do wit hthe justice of its rates.
Mr. Justice reiterated his demand
for the production of Mr.. Plants books
and that his testimony be verified To
ibis suggestion Mr. Plant replied warm
i that he would not permit an expert
accountant or any one else selected oy
any one to 60 into his office and make
drag-net investigation, but that he
would be willig to go through his re-
cords and submit details in respect
theretoto any question Mr.. Justice had
propounded in relation to the facts 20
which he had testified. Judge Mont
gomery settled the disputed question
by declaring that Mr.. Plants testimony
Guild be verified in the presence of him
self and Mr.. Plant. At this point a.
recess was taaken.
At the conclusion of Comptroller
Plants testimony, L. H. Green, for
seven years general freight traffic man.
ager of the Southern railway, took the
stand. In response to a question from
Counsel Thorn he testified that the
freight rates in North Carolina were
not unreascab1y high. first, because
they were made by the North Caro-
lima railroad commission; second, be :