Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1857-01-30
CAPE rEAR AND-pEEp RIVER NAV. co.
" nrnnnr az sEIECT COMMITTEE.

Cape FEAR AND DEEP RIVER NAs.So'
REPORT OF SELECT COMMITTEE.
Thu Select COMMITTEES appointed to examine the char
10, Of tbe Cane Fear and Deep River Navigation Company
and the several acts Of the Assembly granting them aid to
& have instructed the undersigned submit the follow
ing report: tc. r.. "a D.o, River
Navigation Company organized, limited the capital stock
to of which individuals were to subscribe
in that whenever the company shall subscribe and in
to the hands the treasurer OF the company tne
into the hands OF the company $780,
600 and they shall continue to subscribe and pay IN IN
been fnbscrbed for and paid This provision to
have been faithfully observes by the company until two
to induce prompt payments by the the
company with the view of getting ct the balance
the same into its treasury and insisting that this was
compliance with that provision of its charter re-
be paid the remaining portion of stock reserved the
State But this requisitien, his Excellency Gov Reid
made paVnient Of s. 900 on this debt and the balance
1885 Oo0) assumed by individuals, wro, to facilitate
the work agreed this for the delinquent
stockholders release the company from all claim which
they might have on it for ard look only to
the collections that might thereafter be made from those tor
whom they had advanced for their indemnity; and in the
execution this agreement they substituted their
to the proper authority the balance of the States ubscr
on paid to the company, But notwithstanding the
said the company continued recognize its ewn and
had from time to Time reduced by payments to aoou.
!
Of the payment thus made about $4,000 collected
from the defauling stockholders for whose benefit the debt
created and the residue was paid out of the general
porate fund, deprived from other which, ncu-
dirg interest," amounts to than $50 900 Thus 1t VIII
be that coo of the company capital has been d.
verified objects contemplated the charter and gen
their mpovdent contracts and by it the State sus-
tans loss coextensve with her interest III the company
and the public delayed in the enjoyment OF the facilities
completion important State enterprise
At the session of the General Assembly holden IN 1921
Sta e. the paid and expended by the COM
previous to the last session OF this body company
then applied for additional aid and by the 9th chapter OF
he statutes that session. provision was made for the State
endorsing the bonds of the the amount OF $780,
others the was required mot to sell the bonds
than their value and to apply the proceeds there
Both conditions have been disregard
endorsed by the State, $500 900 in
Su rece vii none Which IS Equivalent to less
per cent, amounting to $4,000 The remaining bonds OF
100000 sold for $4,000 in cash, and steamboat
Southerner, and five lighters, From the evidence before
them, your committee have unanimously to the
be worth more than $4,000 and being admitted by the
officers of the that the steamer constituting about
feurths in value of the WHOLE is too large to pass the
company locks and that the purchased wHho
examination the committee can view the matter in Other
light than mere evasion of that clause OF the statue for
C bidding the sale Of these bonds under par.
The of the other provision ofthe equ
from the sale If these bonds The Completion Of the sale
navigation" $2G675 thereof appropriated to the
company, and to the payment of dividends preferred
stock. 49,
the stockholders, well the board Of directors
cognzant the action of the company the several parti
cuars complained Of and each majority of them
sented thereto,
Arguments and explanations have been heard by you
the PRESIDENT attorney and other officers
the in which the necessities and honest purposes
the company pressed upon their consideration But
ceding all this to be true (and your committee do not wis
TO be understood atbuting moral delinquency
one they nevertheless constrained say that the
fho
It's powers misapped the funds obtained by aid
,, State chooses to impose so heavy penalty.
Other allegations have been made against the company
impugDng the efficiency of the general man
committee referred to them by the terms of the
under h o e as
as b sT b son
the aos Pnd their opinion to the House. Your
ask to be discharged from the further consideration
ID 'D''e'' JOHN BAXTER, Chairman
A Statement of the Directors OF the Cape u.
:, Deep River Navigation Company.
IL In relation the debt in the Commercial bank of Wi
minrton assumed by certain individuals for the purpose
drawing the nsalment of the State under act
le ls1s3 directors that the whole subject pre-
sented to the meeting Of the in April 1867
pay the debt the having been med in goo
Ill faith and for the benefit of the company.
The proceedings of the stockholders this subject
published every variety of form, and they
that they have heard the slightest complaint
le being wrong until now
IF The whole amount thus assumed $4,000, which
e. now outstanding against the esmpany 80
each the directors state that they sold the bonds May
OF 1855, for 100000, portion paid forthwith and tn
tn duay responsible for the portion paid until the bond
bs issued and took good security for the of tn
pay interest paid before January following
purchasers pay interest for all unpaid afe
d. January They hoped that the interest would
i'll about equal both sides, and that the bonds would
them $20OOO0 1t turned out however. that the purchaser
the whole balance the LIST January
before it was needed by the company and stopped Ii
interest running against them leaving interest
bonds only netted them about 500 900 each They dout
this the best sale of kind of State bonds of thu
made during the year. dor on & to the SAL
he bonds sold 81 the New York market, which
10 nearly per cent less than what actually received
ne the company for her endorsed bonds.
With respect the sale of the last bonds Of 800
he situation of the work left them alternative They soug
in vain to make sale IN the northern market and at hom
d by advertisement, without receiving single bid The
obtain for it $4,000 in Philadelphia Ne
lat York They probably might have sold it, they had
right do, with the other two bonds at par with
adj Outstanding that the proceeds might remain deposit
needed by the company but they would have lost the
terest for year least, which would have made it
advantageous disposition than the made, though
might have been of less technical exception
With respect to the payments of interest out of the $500
which to make them All the money they could raise upc
preferred stock applied pay off judgments again
ON the company to enable it to make unquestionab
mortgage of its T T to the STATE they had not
and they had not paith interest upon the first
gags which was well we'll % to the a the To
y bonds the sompany also authorized to 800
of preferred stock apo" such terms they might thin
ing proper They accordingly created preferred stock of sew
no per be calculated and paid from the date
ALL tfcates with provision that the State the compa
redeem the stock at par 1t this way thoy hoped
in only raise funds but also absorb much of old de
then hanging the company Unfortunately, but lit
rom money taken pay judgments stated aboy
and most of creditors have preferred to bring