The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-12-24
TO ANNUL THE LEASE
WILL THE ATTORNEY GENERAL
BRING PROCEEDINGS IN THE
NAME OF THE STATE.
JUDGE ScHENCE FOR PETITIONERS

4
1.-The Judges Argument Based on
Four Sections of The Gode-.Judge
Burwell. Col III. C. Jones, Mr.. j. -
Manning, Col. Charles Price. Argue
Against the Petitioners.
II will render my decision to MGR
row." said ATTORNEY General Oabtr {
last night. ''If decide to bring TIE
suit, tn people favoring the leese will
car the matter before one of the jus
tees of the supreme Court or perhaps
before the entire Supreme Court. II
| decide not to bring the proceeding, OF
course those who oppose the lea'e will
have to bring it into the courts in some
| other way"
Before the Attorney General yester-
day at noon appeared Judge D. Schenck,
of Greensboro, who asked that the At
torney General, in the name of the
State, bring quo warranto proceedings
against the North Carolina RailIoad
| Company to declare its lease by the
Southern Railway Company void, and 10
| annul its charter.
In opposition to Judge Scherck ap.
peared Judge Armistead Burwell aud
| Col. Fl, @. Jones, of Charlotte; ar.
James s. Manning, of Durham; and Col.
C1arles Price, Of Salisbury; they asking
| that the ttorney General neither bring
the suit nor al ow his name to be used
in such proceedings.
Besides the attorneys, seated IN the
room were Col. A. B. Andrews, first
vice president of the Southern Railway;
Col. s. B Alexander, p esldent of the
North Carolina railroad; Col. r F.
Hoke, stockho der in the North Caro-
| lima railroad and president of the Geol
| gia, Carolina aud Northern railroad,
Mr.. A. B. andrews, Jr Judge Spier
Whitaker, one of the advisers of the
parties who desire the lease annulled.
Elk Chief Justice Shepherd was fer a
time an interested spectator.
JUDGE sCHENCK LEADS OFF
Judge ScheDck cpened til argument.
He based his argument on four sections
of the O. de, viz, Nos 6t5, CSC, 694 end
1869
These sections, roughly stated, are;
COS The Attorney General may bring
SUR for annulling of a corporation, when
the corporation offends against the acts
creating or altering it; or violates any
law by which it shall have forfeited its
chatter by abuse Of its powers; or when
ever it has done or omitted any act
| which amounts to a surrender OF IFS
corporate rights; or shall exercise a
privilege not conferred upon It by the
law; for non-user of its powers for two
years; for insolvency.
6S6 Attorney to bring action TO restrain
by Injunction any corporation from as
Stunning or exercising any franchise or
'transacting any business" not allowed
by its charter.
695. A corporation formed under
this chapter" G6) Ray be dissolved by
proceedings brought by any corporator
or judgment creditor, or by Attorney
General in the name of the State, for
abuse of power 10 injury Of corporators,
creditors or debtors; for non user of It's
powers for two years; f insolvency !;
for any consic ion Of the company of
criminal offence
1869 In the event of any contract
having been entered into by any rail
road company in the State with any per
son or company, whereby preferences or
exclusive rights OF transportation, either
in priority or IN arrangements, is given
to such person or company the Attorney
Geueral is hereby Instructed TO institute
proceedings against such railroad com
pany for forfeiture of its charter"
These are the sections OF the Code
upon which Judge Schenck asks that
proceedings b. brought for the annul
meut of the charter.
The principal allegation is that the
North Carolina railroad Exceeded its
powers of it's charter, AMI transacted
business not allowed by it's charter and
its franchise, and, il reality, sold its
property under the guise Of lease, the
lease for ninety nine years berg IN
effect 4 sale
IN support Of his position, he cited
several decision, among them one + ON
q B 139, and one from "a American
and English Railroad cases.
while the petitioners" the Judge
said, ask literally that the charter be
annulled, it is not expected that the
judgment of the court will go that far.
1t is not really the purpose OF the petit
TONERS to dissolve the corporation, but
to get the expression of the conrt as to
tie validity Of the lease"
"By one fell swoop Of the pen, it (the
laase) invests the Southern Railway
Company with all the powers and prigi-
leges conferred upon the North Carolina
Railroad" said the Judge. ''This great
corporation is dumped into the lap Ct 2
foreign corporation. Shorn Of
its locks, deprived of its power, it is
nothing but a skeleton, miserable
skeleton, staining at Burlington with a
basket in its hand, receiving its rent
money It has wholly abandoned the
trust given to it by the State. The
attempt is void; this lease is void"
TIE Attorney General here ruled out
any argument regarding the right of the
company to lease the road. But said he
would be glad to hear any argument as
to the distinction between the thirty
year lease and the lease for ninety nine
years.
Judge Schenck said this shut off the
| yriv,cipal no ri of his argument Rat the