Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1870-12-23

|
VIII min gton. Charlotte anA Rutherford
| RaiIrnad-OpinIon of Attorney GenegaI
shipp as to the States sntersst in the
! SAM
ATTORNEY GENERAL OFEICH,
December, Ssh, 1870.
To lie Honorable, lie General ASSEMBLY
Of The State Of NorN Carolina.
GENTLEMEN A Joint II solution, passed
by your Honorable bodies, was sent to this
Office some two days since. II is express
ed in the following language: RNSo'ccI,
Sena'e corcurring, That lie Attorney
General Is lereb' requested t. render 81
soon as POI 5ibie to the General Assembly
an opinion upon the rights ana interest Of
the Stale in the Wilmington, Charlotte
and Rutherford RAILROAD, under existing
laws
This resolution is Of very colnprohen-
sive character, aud has made Unnecessary
to examine a number of statutes relative to
this road and running through series II III
teen or sixteen yeaTe. 1t has HkeWI@e sug--
gested q consideration Of qucetions of the
Cravest inportarca, arising cut Of CON
etruction Of the acts OF the last LoGIsia-
ture known as the Repeating -hots. WITH
every di&p. o)tion TO comply with tha re-
st of the General Assembly, iotHsdlMe-
IL, could not give opinion without
ton can now scarcely hope TO thTo"
much light upon mutters obsoured by
much conflicting legislation.
This corporation was created by an act
of the Legislature ratified Feb, lj5h,
1855. and under that act and one supple
mental thereto passed 18th Feb, 1853,
the company was organized.
BY section 8, Of tho act 1t Is provided,
D g That the affairs of the company shall be
l managed and directed by general loafI
to consist of nine Directors 10 be elected
q i y tho Stockholders AZ their fist annual
meeting aud at subNfq ueDt ANIMAL meet
ings" by ali ACT amendatOrY, 1t Is pro
c vIded, THAT the STOCKHOLDERS IN general
o meeting shall, from timo to time, have
= power to iucrease or diminish the number
r of directors, and that the ne shall ne yer
exceed tw nty, nor be less tAan seven
+ The Stale originally owned 10 stock III
e this &C II pany, but tho Treasurer was an
o thutiz9d by the act Of incorporation to
endorse 'Le bonds OF The company T. a
). limited amount.
l. BY acts OF the Legislature passed Ill The
- wears 1858 and in 1860, the State agreed
10 exchange bonds or loan tho company q
l. certain amount specified i'll the act, and
}. take lien all the property OF the road
/. as security under these acts OF Assembly,
d the State loaned or exchanged bonds to
the amount OF two millions Of dollars, nc
L ccrling to my information
1T Next in order WAS the act of 1866, entitled
An Act to enable the Wilmington, Char
/ Iotte and Rutherford Railroad to complete
D, it's road, pay its debt to the State, &e.-
" By that act the Company was authorized
to issue its bonds to tho amount OF ions
G. millions If dollars and executs q mort
1t gage Oh its property 10 secure the same
ID The previous lien Of the State to be post
poned and made Il second mortgage. q
1T an ordinance of the Contention passe(
February Jtb, 1865, upon L surrender b.
If tho Company OF Que million five hundre'
as thousand dollars of its first mortgage bond
to the State agreed to endorse enc million o
at the remainder, five hund1ci thousand t
be deposited in tho Treasury as collateral
1e security. Thus far, the State owned Il
Il stock in this road, bat had mortgage,
e second mortgage on all the property Q
the Company, and was endorser of til
fist mortgage bonds. to the amount Of on
million of dollars.
j. On the Goth day of January, 1869, TIA
a act was passed making The State stock
ar holder. The first section provides Ih9
In the capital stock shall DO increased t
he seven millions Of dollars, of which til
Ii State was to subscribe four millions.
he ID section, subscription to be paid /
Mt coupon bonds of the State for one thor
a sand dollars each, to be delivered to til
CO President Of the Company.
ITS Section four limits the number of D
or rectors to thirteen, of which number til
ID, Governor shall appoint seven and til
nd stockholders six.
M Itisfurtf1er provided, upon payment
he one million Of dollars of bonds, thel
bv shal be meeting of stockholders a1d d
he rectore, elected and appointed as thorci
XIV provided, and a reorganization inmedia 1T
nd ~ effected. That of the bonds SIEVE
DIV hundred and twenty thousand shall be I
bo fo1o ~ tho TrpaSuTGr cOlIatpF8I l1pr
ng rity.
,he By an act supplemental april 5th, 18G
il is provided that the six directors to |
log elected by the stockholders, shall be cho
nts en- by stockholders other than the Stat
1t and that Immediately upon the reorgau
on cation the Treasurer shall deliver the r
ads mainder of the bonds except seven hui
lie, dred and twenty thousand dollars dIrectt
not to be retained, aud thereupOn a certifca
The shall be issued TO the State for eigh
,ar. thousand shares. These acts wero acceI
ex- ed by the stockholders. One million dt
of lars Of bonds were delivered to the Pros
the dent, and the company was reorganize
the directors were appointed and elected, al
log subsequently two millions Of dollars mo
its of bonds were delivered to the Preside
the of the Company. Of these bonds one n
Of lion of dollars was sold By Robert II. Co
en- an, President, appears by his report
of the Governor, and of the remaining t.
my millions which came into the hands
# VIM. Sloan, seventeen hundred thousa,
im- dollars were hypothetical and three brl
f a bred thousand dollars were retained
ack him, and 50 far as appears, axe now in |
fiat possession. The amount Of money
ing osived by these gentlemen. and how t
per proceeds have been expended is stated
uge their rep orts. The IRE asury Departme
q q as stated by the Treasurer, paid in Jan
hat airy. 1870. interest on these bonds to 1
,on- amount of twenty nine thousand four hi
row dred dollars.
ionl On the 9th day Of February, A. D. Is