The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-09-12
STOCKHOLDERS MEETING OF
THEN. c. II. II.


1t is believed to be called for two pur-
poses;
/. To caicially surrender all exemp-
tions, real and claimed, from taxation.
2. To approve the 90 years lease made
by the directors.
By the terms of the charter, the
North Carolina Railroad is exempt
from taxation until it earns more
than six per cent. BY the terms
of the old lease, only a SIX per
cent dividend was received as rental and
of course 10 tax has been paid. After
the property of the Raleigh & CASTOR and
Wilmington Il Weldon railroads were
put on the tax list, Governor
Carr was ambitious during his term Of
office to see every railroad in the State
pay taxes, even if the State did own
large interests in two of them. de was
anxious for uniformity, and sought by
legislative action to put the North Caro-
lima road on the tax-list. His PROPOSE
ton was antagonized by the largest
stockholders and others, and failed of leg
islative sanction. He then determined,
inasmuch as the State owned three
fourths of the stock in the road, through
the action of the States directors and
the States proxy to secure a release from
the claimed exemptions. AS soon as the
stockholders learned of his intention,
they availed themselves of a curious
provision in the bylaws of the company
to thwart the Governors plan, and when
the time for the stockholders meetings
arrived, there were not enough stock
holders to hold legal meeting.
Section of the bylaws gives the min
ority stockholders unusual power;
cat least one hundred individual
stockholders, represented either in per-
son or by proxy, and holding not less
than majority of the stock subscribed
by individuals, shall be necessary to
constitute a quorum for the transaction
of business"
By concert of action this presence of
the majority has never been secured
since Governor Carr began his fight to Sc
cure a giving up of the exemption from
taxation.
1t is not certain that meeting will
be held next Tuesday, though, since the
new lease, there is no present incentive
to the majority of the minority stockhol
ders to stay away. Under the new
lease, the Southern Railway pays the
taxes during the life of the lease, and
the private stockholders will lose
nothing by formally snrrendering
the exemption which now amounts to
nothing. The railroad is liable to taxa
ton under its charter, now that it earns
more than six per cent, and the tax will
be paid whether the stockholders make
any formal surrender or not Talking
with stakeholder a few days ago he
said
81 am unwilling to make any surrender
of the rights under our charter. OF
course, if the Southern Railway remains
successful and keeps the lease, it does
not matter at all But suppose that the
Southern should go to pieces lit is most
improbable, but is not impossible). In
that event, the stockholders might not
be able to get six per cent. for the road,
and yet if we surrender the present ex-
emption, we will have to pay taxes
whether we make anything on the road
or not | see no good business in sur
rendering. 1t will not help TIE State as
long as the present lease stands, will
neither help nor hurt the stockholders
at present, but might in the future be a
great loss to the stockholders"
There is no doubt that many of the
larger stockholders are opposed to any
action formally giving up the exemption,
but in Difference to the wishes of the
Governor, it is believed that they will
vote for surrender. But it is possible
that the meeting at Greensboro next
Tuesday may result, as have all the
others for two years and more, in no
meeting at ALL We shall see what we
shall see,
The second suggested purpose for
which the meeting il c7!led is to ap
prove, endorse and ratify the action Of
the directors in leasing the road for 80
years. 1t is not believed that there will
be any difficulty in securing this, if
the meeting be held. Precaution was ia
ken to secure the approval CT the largest
stockholders of the road before the final
action of the directors, AID as the Gov
ernor acted in concert with them, the
matter was all settled by dozen or fif-
teen men without reference to the &C
ton of the stockholders The lease has
been made, and even if the stockholders
did not like it, they are powerless. But
as it enhances the marketable value of
+bair Stock and oives them a chance IN