Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1857-02-14
Executive Message m the Cape Fear and Deep
River Navigation Company.
To ha Honorable tie General Ase,abyv

Company, IN which the State is largely interested,
not only as stakeholder, but as endorser to the
company.
would not trouble you with any communication
at this late period Of Your session, ard when it is
about to Close, bat for tn, that fear that
there exists some Misrepresentation as TO the real
state Of affairs, so far at least the State is con.
cerned.
BY the act of 1928, the capital stock Of the
company was increased to the sum Of $500, 600, and
the State agreed to pay $50 600 provided individuals
would pay the sum Of $4,000 BY section 9TH Of
said act. il was further provided THAT il the sum of
Sl2O,O should be found insufficient to complete
said Improvement, additional sum of $50 600 may
be raised by said company, either by procuring
subscriptions Of stock on the part Of individuals, so
as to increase the capital stock to $780, 600 by this
act authorized, or 10 Issue bonds in the name and
behnIi 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 ms the president
and directors shall and may prescribe, and the said
president and directors are hereby author Zcd TO
pledge the nett proceeds arising from tolls or the
property of the company for the redemption of said
bonds"
am Informed that by virtue Of this provision the
company made bonds to the AMOUNT of scr, 800, to
which sundry individuals are Suretirs, 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 1851, plcdging the profits of the com.
pany to pay the interest as it nigh, accrue, and upon
all the property Of the company, including its works
on TIE river, to secure 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 maturrd,
unless the principal and interest then due should be
paid.
cndcavorcd to procure copy Of this mortgage
some time since rom gentleman connected with
the company, aud one was made out, bat before il
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 | regret that il cannot now be
had have no doubt, however, tina; ,he provisions
of the deed are substantially as stated
By the act of the las, session the company were
authorized to issue bonds payable to the public
treasurer for the sum of S]OO,O0O with coupons
bearing SIN per cent interest payable semi annually
and the principal payable, 500, 900 ON the first Of
Jahnary 1850, the same amount the first ol Jan
uorr 1879, and Tie like amount the first Of January,
1885, wich 10 be endorsed by the pub r treas.
urcr, upon the condition that the company execute
hr>t pledge by way at mortgage To the Governor,
and his Successors in Office Of 81 much Of the pro.
fits of the company might suffice to pay the ac.
crung interest; secondly, mortgage To the SAME,
"nf all the estate, icnl aud personal belonging or
that may hereafter belong to the Cape Fear and
Deep River Navigation Company, on IN any manner
pertaining, or that uny pertain IT, To the State of
North tarrlna from the pay mcut oi the wnolc "rany
rnrt OF the bonds hereby authorized to be made and
issued"
These o,tgagcs were executed as believe. in
cXnctarcnrdpncr with the provision, of the act we've
approved by the Governor and Attorney General,
daily registered, and are now ON file in the Excru.
tive office.
But there seems TO he sorr misarprchcason as
to thc rights OF the STATE aud the duty of the Cover
nor as her trustee in ease ofGiurc Nv the conl,.ay
to the interest as it 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 10 collect
the tolls and pay the interest
The difficulty is that in the present state Of the
works there are no tolls TO collect
further examination of the 18th 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 of and redeem the
principal of said bonds a. such times aud in such
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 1860 after
which, on n"n'rnymcnt by the company n sale
might be effected, and the nc; provides that 4" the
proceeds Of such sale shall he applied first TO pay
oil and redeem the whole amount of principal Of
sad bonds and all interest then due aud To pay the
excess 10 the president aud directors of the com.
pnny."
Thus il will he seen that the State cannot take
charge of the work by an agent so rs To realize ony.
ttng to pay the interest nor can she now lorccosc
her mortgage
The work may be sold AT the tinc indicated under
the mortgage, to individuals.