Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1872-05-10

Iti the opinion of the Board of Directors that
the toreclosure OF the mortgage of the road is in
evtable unless the Stockholders can devise
some plan by which it may be prevented.
Th-January interest is long past due. The
ninety days grace allowed by the mortgage has
expired AS yet we are not informed of the
comm nee ment of legal proceedings beyond the
demand made for the payment Of the past due
coupons.
For the Directors,
SILAs n. MARTIN. President.
This report was, on motion of w. A.
Wright, Esq, received.
Mr.. NJ. Cronly moved that the recent
act of the Legislature concerning this Com
pany be accepted as a part of the Charter,
which was adopted after some discussion.
Col. j. W. Atkinson then submitted the
following preamble and resolution, and
moved its adoption:
WHEREAS, 1t is generally reported and be-
Eevod that the holders of the first mortgage
bonds OF this corporation propose to institute le-
gal proceedings tor the purpose of foreclosing
the mortgage and selling this railroad, Its fran
chise and equipment; and, whereas, justice to
the stockholders corporate and individually and
the creditors generally of the Company, de-
mands that this should not be done without due
regard to the rights OF said stockholders and
creditors therefore, be it
Resolved, That a committee consisting of three
Stockholders (other than Directors) be appoint
aud Instructed to employ able legal counsel tor
the protection of the interests of this corpora
ton in the premises, either by effecting some
satisfactory arrangement with the bondholders
or resisting, if deemed proper, the projected
foreclosure and sale This committee shall be
authorized, when prepared to report on the sub
ject matter now committed to them, to call
meeting of the Stockholders OF this corporation,
to be held in the city OF Wilmington, at any
time between this date and the next regular an
nual meeting.
All necessary expenses incurred under the
l,rCNjI1 he
urer Of tEis Company, and the draft fthe Chair
man of the Committee shall be his sufficient
voucher therefor.
The President, Mr.. Martin, stated that
the mortgage cannot be foreclosed except
by legal proceedings; that the Directors
were fully willing to take the responsibility
ofthe situation, and that he saw no use of
entering to-day into an election of an out
side Board OF Directors, as was virtually
contemplated by the resolution; nor was
he prepared to consent to such expense.
He thought there would be 10 objection on
the part Of the stockholders, when the time
came, 70 enter into proper arrangements
with the bondholders, or a disposition
manifested to retard the completion Of the
road.
Col. Atkinson, IN support Of his resolu
ton, stated that there was no motive to
resist the action Of the bondholders, but to
inquire into the rights, and ascertain what
those rights were, ana what legal means
should he resorted to.
NJ Croniy, as a member OF the Board of
Directors, was perfectly willing that the
stockholders should take the responsibility
from the Directors.
Hon. L. S. Ashe saw objection in that
the committee should not embrace any
member OF the Board of Directors; it was,
in fact, expressive of want Of confidence,
and moved that the Objectionable clause
should be stricken out.
Col. Atkinson meant no reflection, but
would prefer the committee constituted as
originally proposed.
Question being upon Mr.. Ashes amend
meIIt, it was voted down.
The question REQUIRED upon the origi-
nal resolution, which was re-read.
DR.. y. J. DeRosset thought that the Di-
rectors should be instructed to institute
measures contemplated by the resolution,
which appeared to him as a vote of CEN
sure He offered an amendment that the
Directors le instructed 10 do that which
was contemplated in the resolution.
sir. D. 1IacRae here offered the follow
inc as Il substitute for Dr.. DoRosset's mo-
ton, and il was accepted by that gentle
man:
Resolved, That the Board of Directors be in
structcA and dT Cted to protect the rights and
Interests OF the stockholders OF this company, in
the pre- I2isys, by etftCtng, If practicable, some
81 tiSI4vto.y arrangement compromise with
the bondnOldcrs, or TO resist, il deemed proper,
the Proposed foreclosure aHd sale.
The question on the substitute was then
put, and apparently lost. There beil &
some misunderstanding, the Chair consent
ed to put tie vote a second time this re-
su!teu il the adoption Of tie substitute.
The question then recurring to the resO-
luton as amended, stock vote was called
for, resulting il the defeat. Of the resolution
by the following vote Ayes, 1892 shares ;
Nayes, SSH shares.
The Convention then adjourned to P.
N.