Weekly North Carolina standard. [volume] (Raleigh, N.C.) 1850-1858, 1857-02-18
Executive Message ON the Cape Fear and Deep
River Navigation Company.

Executive Message on the Cape Fear and Deep
River Navigation Company.
To tho Honorable the General Assem6ly
Of tho State Of North Carolina:
deem it my duty to lay before you some facts in |
relation to the Cape Fear and Deep River Navigation
Company, in which the State is largely interested,
not only as stockholder, but as endorser to the
l would not trouble you with any communication |
at this late period of your session. and when it is
about to Close but for the that fear that
there exists some msapprehension as to the real
state of affairs, so far at least the State is
cerned.
By the act of 1s52-'53 the capital stock of the
company was increased to the sum of $3.50 900, and
would pay the sum of $40, 900. By section 9th of
said act it further provided shat if the of
$l200 600 should be found insufficient to complete
said improvement additional sum of $50, 900 may
be raised by said company, either by procuring
subscriptions OF stock the part of individuals SO
to increase the capital stock to $3.50 900 by this
act authorized, or to issue bonds in the name and
behalf of the company, signed by the president
with the corporate seal of the company, and coun.
tersgned by its treasurer, in such sums not exceed
ing $4,000, and upon such terms as the president
and directors shall and may prescribe and the said
president and directors are hereby authorized to
pledge the nett proceeds arising from tolls the
property of the company for the redemption of said
bonds"
am informed that by vrtne Of this provision the
company made bonds to the awount of $27, 500 to
which sundry individuals sureties, and raised
the money on them, and that the interest was to be
paid semi-annually, and the principal about the first
January, 1859, and that mortgage was made early
in the year 1854, pledging the profits of the COM
pany to pay the interest asst might accrue and upon
all the property Of the company including its works
tie river to the principal and such inter-
est as might remain due when the principal becomes
due, and providing for sale of the property and
works of the company, when the said bonds matured
unless the principal and interest then due should be
paid.
endeavored to procure a copy Of this mortgage
some time since from a gentleman connected with
the company and one was made out, but before it
reached my hands, it was, am informed, handed to
the chairman of the committee lately appointed in
the House of Commons to investigate the affairs Of
the company, and l regret that it cannot now be
had. l have no doubt, however, tina: the provisions
of the deed are substantially as stated
By the act of the last session, the company were
authorized to issue bonds payable to the public
treasurer for the sum of $3O0,OOO. with coupons
bearing six per cent interest payable semi-annually
and the principal payable, 100000 the first Of
January, 1865, the same amount the first of JAM
uary 1875, and the like amount the first Of January,
1885, which were to be endorsed by the public treas
urer, upon the condition that the company execute
first pledge by way of mortgage to the Governor,
and his successors in Office Of so much of the pro-
fits of the company as might suffice to pay the
cruing interest; secondly, mortgage to the same,
of all the estate, real and personal belonging,
that may hereafter belong to the Cape Fear and
Deep River Navigation Company, or in any manner
pertaining, or that may pertain to it. to the State of
North Carolina from the ayment of the whole any
part of the bonds hereby authorized to be made and
issued"
These mortgages were executed, as believe, in
exactaccordance with the provisions of the act
onnr nrpd hu I'm
duly registered, and now on file in the Execu-
tive Office
But there seems to be some msapprehension as
to the rights of the State and the duty of the Cover
as her trustee, in ofailure by the company
to the interest falls due upon the endorsed
| bonds.
An examination of the act and of the mortgage
will show that the Governor in such case is author
lied only to appoint agent and receiver to collect
the tolls and pay the interest.
The difficulty is that in the present state of the
works there tolls to collect.
further examination of the 7th section of the
| act and of the mortgage which conforms thereto,
will show that the Governor is only authorized to
sell the property and works of the company, on
failure of the company to pay off and redeem the
amounts as shall be due, according to the tenor Of
| said bonds"
In other words, no sale can be made under the
States mortgage without the consent of the stock.
holders prior to the first of January 1865; after
| which, on non-payment by the company, a sale
might be effected, and the act provides that e the
proceeds of such sale shall be applied, first to pay
off and redeem the whole amount of principal oil
said bonds and all interest then DUE and pay the
excess to the president and directors of the com.
| pany."
Thus it will be that the State cannot take
charge Of the work by agent to realize any.
thing to pay the interest can she now foreclose
| her mortgage.
The work may be sold at the time indicated unde,
the mortgage, to individuals.
1t may be proper for me to add that there are
judgments and executions against the company to
| laige amount; but how much I am not prepared te
| say, obtained subsequent to the execution of the
mortgage to the State 1t is insisted by the parties
concerned, that they can now sell the equity of re
demption on the work of the company on the river
being real estate.
Under existing circumstances, there being alread,
two mortgages upon the works, and from the verl
nature of the interest and kind Of property proposes
to be sold, incline to the opinion that nothing wou
pass by such a sale. But in this may be mistaken
as the question is one of difficulty at all events
would result in litigation, and the State would i
the end, be appealed to astockholder in the com
pany, to pay the debts.
pany have been brought prominently before bot
branches OF the General Assembly at this session
and that there has been action upon the same, d
not deem it decorous on my part to indicate an
opinion of my own as to the measures which shoul
| be adopted under the circumstances.
Believing, however, that there was some misappr
hension prevailing to the rights of the State
as to my duties under the mortgages executed for h
| benefit have considered II NV dutv To mske IN