The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-11-21


Der 2. 1896. and then aud there made
n contract or agreement with a cornnra4
ton known aud styled a. the Goldshere
and Morehead Railway Company. 70
lease. farm and hire out all the rights,
privileges and franchises and property
eff the said Atlantic and North Carolina
Railroad Company t. the Goldshofo anu
Morehead Railway Company,
{. That The special meeting called 20
meet Mt Morehead on November 1Sth,
was for the purpose OF ratifying aud
completing the agreement alleged by the
plaintiff to have been made IN 6oldahoro.
&. That the complainant believes a
ma jority of the private stockholders are
opposed to the lease, but that they are
scattered all over the State and sufficient
notice has not been given to allow them
to be present at the meeting
6. That neither under the charter
Of the Atlantic and North Carolina
Railroad Company nor any amendment
to the charter have the board OF di.
rectors or stockholders any power or
authority to make lease or transfer of
the road, but that the plaintiff is In
formed and believes that the lease is ultra
wires and absolutely void.
Z. That the Atlantic and North Caro-
lima Railroad Company is in prosper
Gus condition as evidenced by dividend
Of . per cent having been recently de-
clared and paid by said corporation upon
the capital stock thereof
S. That the plaintiff is informed and be
lieves that the Goldsboro and Morehead
Railway Company is corporation of
recent origin existing only on paper UNI
known TO a majority of the stockholders
Of the Atlantic and North Carolina Rail-
road Company, having no tangible prop
erty, and organized and Incorporated for
the sole purpose of depriving the State
of North Carolina Of the control of the
road.
8. That the directors Of the Atlantic
and North Carolina Railroad Company
are both directly and indirectly Interested
in the Goldshoro and Morehead Railway
Company and are leasing the road for
their future use and benefit
10 That the plaintiff is informed and
believes that the conSammaticn and com
nletion IF the lease will work irreparable
injury 10 the State OF North Carolina,
the plaintiff and other stockholders not
Interested in the Goldsboro and More
head Railway Company.
THE ORDER GRANTED.
IN view of the above the plaintiff de-
rlands Judgment as follows:
1. That the directors be restrained
from executing the contract to lease or
transfer the Atlantic and North Caro-
lima railroad to any person or corpora
ton.
2. That the stockholders, and espe-
cially State Proxy w. T. Dortch, w. r.
Tucker and III. We'll he enjoined from
taking any action for the acceptance or
confirmation of any such contract.
3. That the Atlantic and North Caro-
lima Railroad Company and its officers
be enjoined from making a lease of it's
railroad and other property.
4. For such other and further relief
as the plaintiff may be entitled to and
for costs.
The above complaint was laid before
Judge w. S. OBJ. Robinson at Cham
bers, in Windsor, BERTHE county, on No
vember 10, where he was then holding
court And Judge Robinson accordingly
issued an order restraining the defend
ants from making or concentrating the
proposed lease at Morehead City or at
any other time or place and requiring
the defendants to appear before him at
Chambers in the town OF Halifax on
next Tuesday. November 24, and show
cause why they should not be perma-
nently restrained from making or con-
summating the lease.
TERMS OF THE LEASE.
It is understood that the proposed
lease, which the defendants refuse to
show, is for the term OF 40 years on
graduated scale. as follows: For the
first ten years ~ per cent; 2
per cent for the second ten years, 21a
per cent for the third ten years, and 3
per cent for the last ten years, making
an average OF "a per cent for the whole
period of 40 years. The proposal in
cludes payment of interest and taxes.
There are 1892 shares in the road or
this the States owns 1906 or over two
thirds. Individual stockholders possess
3,311: the largest block of the individ-
uai stock, 1851 shares, being controlled
by Mr.. w. r.. Tucker, Of this city. Three
counties also have an interest In the road
Craven, 1928 shares; Lenoir, 500
shares, and Pamlico, 202 shares.
The last report OF the Auditor of the
Atlantic and North Carolina Railroad,
issued June 80, 1896, shows that its total
operating expenses during the year were
SS2, 4S6.27 its total earnings were $14O,-
G36.53 leaving balance in the Treasury
of $5S, HOPS, to be distributed among
the stockholders.
The capital stock of the road Is 81 ,S00,-
900. It's total valuation, as given in the
report of Railroad Commission, is $685.
100, the mileage of the road being 102
miles at $4,000 a mile.
And right here the opponents of the
lease enter another objection on the
ground that though the value Of the prop
erty is over 100000, a syndicate with a
capital stock of only 100000, and with
out n cent of that amount subscribed,
proposes to lease it. The rental they
say will amount to $4,000 year, and
under the proposition the only penalty
for failure to pay this is forfeiture of one
years rent. And as this rental is not
payable till the end of the year they
argue that there is nothing to prevent
the syndicate running the road one year
and paying nothing for it.
THE SYNDICATE IS SOLID.
In reply to this objection those favor