Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1862-02-08
For the Standard.
TO THE DELEGATES OF THE STATE CON
VFNTlDN

EENTlON.
GENTLEMEN Many Of you may remember the
struggles though which the Raleigh & CASTOR and
the Wilmington Il Weldon Railroads passed. BY
some blunders, errors miScalculatiOns they were
both at one time almost failures they ~crC sub
iectS of Teproach and PREF udicc to their opponents
and OF commSseration and shame to their friends.
But perseverance will truly overcome many diff
culties And they now, both OF them, monu
mentS of pride to the whole State and Instruments
of service IN the present crisis, which of itself
will repay all the costs, trouble and expense that
they have required In view Of these examples, |
shall venture to say something to you about the
Cape Fear and Deep River Improvement | pro
pose to give to you brief history Of its legislative
origin and progress to the present time-to sketch
very briefly an outline of the Of its former
failures, and the remedies for them-to show that
its completion is military necessity, and then to
urge upon your acceptance the proposition for its
completion made by DR.. r. X. Smith, for himself
and other gentlemen on the river. And in spite of
the preiudceS and odium attaching to this scheme,
l earnestly ask an attentive perusal OF what am
about to say. Your attention is first invited to
brief legislative history Of the scheme The charter
was granted at the session of the General Assem-
bly,, lS4S-49, (see laws, page 1861 Under its pro-
visions the State subscribed $50 900, that being
two-ffths of the capital stock of S200G00 and in
dividuals subscribed $4,000, or three-ffths of
said capital stock And in that proportion directors
holders respectively while the President was voted
for upon similar basis. At the session 1928
this charter was amended; the capital stock
increased to S350000, the State subscribing $4,000
additional and individuals $40, 0G0, and authority
being given to the company to borrow $50 000 (see
laws of that session, page 1922 Under this amend
ment the State held half of the stock, entitled
to appoint half of the directors, and to vote for
President upol a similar basis. And this resulted
in giving to the State the control of the enterprise
For she not only had the absolute appointment of
half the directors but the practical control of the
election of President, because she always voted
upon the full amount of her stock, and as a unit,
while many of the individual stockholders failed to
attend the meetings and those in attendance always
divided in their votes for President. At the ses-
sion 1895 another act was passed upon the sub
lect, (See public laws, page 10 By this act au-
! thority was given to the company to borrow
| 100000, and to mortgage their franchises and
property for the security Of the State upon her en-
dorsement of their bonds to that amount. L have
already stated that the company was authorized by
the act of 1928 to borrow S3O,OOO. And to
this end they were empowered to issue bonds to
that amount and "to pledge the nett proceeds
arising from tolls, or the property of the company,
for the redemption of said bonds" That was done;
and it became apparent to the General Assembly at
its session of 1S5S-59, that sale would soon be
| made under that pledge. Another act was accord
ingly passed upon the subject (see private laws of
that session. page 1922 By the first section OF that
act, the Governor Of the State was authorized, in
the event Of sale, purchase "the property and
effects Of the company at a price not exceeding
$450,000, and to take a conveyance therefor, and
which shall vest absolutely in the State of North
Carolina all the property, corporate powers, privi-
leges and franchises of said company" Weh the
contemplated sale was made in the spring of 1859,
and the Governor Elis) purchased for the State at
the price of 1856, O0O and took a conveyance as
the art diracted BV the second section this
act the control and management of said company"
was after the purchase to be in the State of North
Carolina; and by the fourth section all Tie remain
der of the sum bid after paying prior liens, wiz:
the $4,000 bonds and some judgments against the
company amounting to some $1,000 or $4,000 was