The farmer and mechanic. [volume] (Raleigh, N.C.) 1877-1885, 1884-12-24
Recovery OF $4,000 for the
stockholders In the Western
Division of the Western
North Carolina r. n

In the spring Of 1880, Marx YOUNG. ,
stockholders aDd al other stockholders
aud creditors Of the North Carolina Rail
road Company. brought SUR I'll Mcdowell
Superior Court against W. ". Rollins
president, and G. VI. McLoud and others,
directors OF said railroad for
the purpose OF obtaining the assets OF
SAID company, and having a receiver ap-
pointed for said railroad, who should
hold aud collect the assets and apply
them, LIST, to the debts of the road, 2nd.
to payment of stockholders.
Onjune 18th, 1880; Judge Gilmer ap~
pointed a receiver in Young VS.. Rollins.
OF the western division, in the person Of
Mr.. BENZ. f. Long, of Statesville' and
restrained or enjoined The defendants.
Rollins aud McLoud, who were "gob-
Ding, the assets, from disposing of
them and ordering them TO turn them
over to the receiver. The defendants.
Rollins and McLouJ. appealed, and the
Supreme Court sustained the decree Of
Judge Gilmer. The receiver learned Of
his appointment in March, 1882, aud fill
ed his bond at once aud demanded the
effects and assets of the road from RoI-
Inns and McLoud Immediately. They
dallied, hesitated and finally refused OF
accede to the demand.
Meantime Receiver Long was at work,
end finally he got evidence satisfactory
that Rollins and McLoud had violated
the Injunction aforesaid and had sold
$4,000 of bonds. part of assets Of the
western division. He at once took out
proceedings to attach them for contempt
of court, and to force them ~ pay over.
a IT,, H.
reached before Judge Graves a. Morgan
ton, September II, 1888, and Judge
Graves found that they had wiliully dis
obeyed the orders of the court and we're
guilty of contempt. He thereupon fined
them and required them to pay over such
sums as were admitted to be in their
hands. leaving sums disputed to an ac-
count to be taken,
From this judgment Rollins and Nc
Loud again appealed and the Supreme
Court affirmed Judge Graves decision.
Thereupon at the last term of Mcdowell
court Mr.. Long got his judgment absO-
lutte for near 500 0 to be paid by Bol-
Inns and McLoud on or before December
|, 1884. or stand committed to the COM
mon Jail of Mcdowell till it was paid.
Recently this part of the judgment has
been paid into his hands.
Swepson appropriated the proceeds Of
nearly $1,000, 900 bonds issued for the
benefit of this road and invested them in
Florida and elsewhere. The manage
ment Of the road after Swepson was Il
grab game The line was not built.
Those who invested - it ard did the
work on it. got no pay. The Legislature
abolished it to stop swiLdling. The
above $I2, 900 is the first money that has
been c ,essfully traced and collect
ed for the beneficiarios since the gigantic
swindIeS began; although two committees
Of the Legislature investigated AMI re
ported in their books, called the "Frand
Commission"
Receiver Long will press the accoQnt
aga INST Rollins and McLoud and expects
to uncarth the whole business. He has
sued the Western North Carolina Rail
road Company, 10 Iredell, for 1925 900,
As part Of the assets of the western dlvis
ion. Statewide Landmarks.