Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1857-02-06
vzxecUtIve Message the Cape Fear AID Deep
river Navigation Company.
the Honorable, the General Assembly

rz~.cut,ve Messnge on the Cape Fear and Deep
River Navigation Company.
tn the Honorable, the General assembly
of the State of North Carolina
deem it nv duty TO lay before you some facts in
relation to the Cape Fear and Deep River Navigation
Company in which the Stale is largely interested
not only as stockholder but eLdOrser 10 the coon
pany.
| would not trouble you with any communication
at this late period of your session, ana when It IS
about 10 close but for the reason that tear that
there exists misapprehenson as 10 me real stale
of affairs so lar at least the State is concerned
Bv the act of 1928, the capital stock of the
company was increased TO the sum of S3500O0, and
the State agreed 10 pay $4,000 provided individuals
would nav The sum of $4,000 By section 5th of
said act it was further provided that if The of
100000 should be found insufficient to complete said
Improvement, additional sum Cf S3O,OOO may be
raised by said company, either by procuring sub.
scrptions of stock the part of ntividoas so as to
increase the capital sock to $3.50 600. by this act
horzed. or issue bOrds IN the and behalf of
the company signed by The plesijenI, with the cor
porate seal of the company and counters gned by its
treasurer, in such sums not exceeding S3O,OOO. and
upon such terms the president and directors shall
and NAV prescribe. and The said president and drec.
tors are hereby authorized to pledge The nett proceeds
arising from tolls or the property Of the company
for the redemption OF said bonds
am formed that BY virtue Of this provision the
company made bonds to the amount OF $4,000, to
which sundry individuals are suetes, and raised The
money on them and that The interest was 10 be paid
semi.annualIy and the principal about the first Jan
uarv 1859, and that mortgage was made early in
the wear 1854, pedgng the profits Of the company
n nav The interest a: ii might accrue and upon all
the Droperty oil the company, including its works
on the Tiver the principal and such interest
as might remain due when the priLcpal becomes due,
and providing for a sale of the property nd works
of the company, when the said bonds matured, un-
less the principal anal interest then due should be
paid.
| endeavored 10 procure copy of this mortg4ge
some time since from gentleman connected with
the company, and made out, but before it
reached my hands, ii was, am informed, lnded to
the chairman of the committee lately appointed IN
the House of Commons 10 investigate the affairs of
the company, and regret that it cannot now be ha
| have no doubt, however, that the provisions of
the deed substantially stated.
By the act of the last session, the company were
authorized to issue bonds payable the public trea
surer for the sum of $780, 900, 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 January, 1875,
and the like amount the fist of January 1885, which
to be endorsed by the public treasurer, upon
the condition that the company execute first pledge
by way of mortgage to the Governor and his sue
Cessors in Office, of much of the profits of the
pany might suffice to pay the acCrulng interest
secondly, mortgage TO the same, " of all the es'
tate, real and PERSONAL belonging, or that may here
CATION Company, or in any manner pertaining, OF
that may pertain to the State of North Carolina
from the payment of the whole, any part of the
bon ds hereby authorized to be made and issued"
These mortgages were executed, as believe, in eX
act accordance with the provisions of the act were
approved by the Governor and Attorney General
duly registered, and are now on file in the Executive
Office.
But there seems 10 be some misapprehension Il
the rights of the State and the duty of the Governor
as her trustee, in Of failure by the company II
meet the interest it falls due upon the endorsed
bonds.
An examination of the act and Of the mortgag
will show that the Governor in such case, is author
lied only to appoint agent and receiver to collec
the tolls and pay the interest.
The difficulty is, that IN the present state OF I'M
works there are no tolls 10 collect.
A further examination of the 9TH section OF the &C
ind of the mortgage which conforms thereto, vii
show that the Governor is only authorized to sci
the property and works of the company, on tallur
of the company e to pay off and redeem the prncl
pal of said bonds at such times and in such amOunt
shall be due, according 10 the tenor of said bonds
In other words, no sale be made under tn
States mortgage without the consent of the stock
holders, prior 10 the first of January, 1865 ate
which, on non-payment by the company, a sale Nigh
be effected, and the provides that ''the proceed
of such sale shall be applied, first to pay off and re
deem the whole amount OF principal of said bond
and all interest then due, and to pay The excess
the president and directors of the company"
Thus it will be seen that The Stale cannot tax
charge of the work by agent TO realize any
thing 10 pay the interest, nor can she orecl s
her mortgage.
The work may be sold at the time indicated unde
the mortgage, to individuals.
1t may be proper for 10 add that there are jude
ments and executions against the company to arg
amount but how much | am not prepared to say
obtained subsequent to The execution of the mortgag
10 the State 1t is insisted by the parties concerned
that they can now sell the equity of redemption o
the work of the company Oh the river being real e'
tate.
Under existing circumstances, there being alread
two mortgages upon the works, and from the yer
nature of the interest and kind of property propose
to be sold, incline to the option that nothing woul
pass by such sale. But In this may be mstakeI
as the question is one of difficulty; at all events
would result in litigation. and the State would,
the end be appealed to as a stakeholder in the con
pany, to pay the debts.
In view of the fact that the affairs of This Compan
have been brought prominently before both branch
of the General ASSEMBLY at this session, and tia
there has been action upon the same, do not dee
it decOrous my part 10 Indicate any opinion OF m
own as to the measures which should be adopted III
der the circumstances.
Believing, however, that there was some mis.aI
prehenson prevailing as to the riglft of the Stat
and as my duties under the mortgages executed fl
her benefit, have considered it my duty 10 max
this communication, that the facts may be brOug
TO your notice.
Unless it is the opinion of the General Assembl
that it will be best for the State to abondon the w0r
it seems to me that some measure should if possibl
be adopted at this session, to project the States il
tereSt, which not large stakeholder, bat muc
larger as endorser of the bonds of the company.
THOS BRAGG.
Executive Department, Jan. 80 57.
Presidents DImmer.-The MInnes"t" BIII-The Lii
Boats Jersey Coast.