The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-07


or otherwise that can or may be had or
taken to the many errors, uncertainties
and imperfections in the said bill of
! complaint. for answer thereto, or to so
much thereof as this defendant is advised
| it is material cp necessary for it to make
answer, answering, says:
!. 1t admits that the statements con
tanned in the paragraphs number enc
and two of the plaintiffs bill of COM
plant are true, except in the particulars
or respect hereinafter mentioned; that
| is to say, it is advised that the act of
the 10th of February, 1874 annexed
to paragraph two of said bill of COM
plant as a part of Exhibit a." as an
amendment to and part of this defen-
dant's charter is not and does not con
stitute an amendment to and a part Of
| its charter as it was never in fact ac-
cepted by the stockholders OF this defen-
dant.
- 1t admits that the statements of
paragraph 3 of the plaintiffs bill Of COM
plant are true except in the particulars
or respect hereinafter mentioned; that
| is to say, that it is advised that the Gov
ernor of North Carolina has not the sole
appointing power of eight of it's Board
OF Directors, and it is further advised
that under the provisions of section 43
of the act of the 9th day of January,
1S49 and of section 3 of the act of the
18th day of February, 1855, being an
nexed to paragraph l of plaintiffs bill of
complaint as a part of Exhibit "a" the
Governor of the State of North Carolina
has the power of appointment at the gen
eral annual meeting of the stockholders
of this defendant, by and with the adj
vice Of his Council, OF eight of this defen-
dant's Board of Directors, which said
Council is. by section IA of Article ) of
the Constitution of the State of North
Carolina, composed of the Secretary of
State, the Treasurer. Auditor and SUI
perintendent of Public Instruction Of
said State; and it is further advised that
neither the said Governor nor his COun-
| Gil have, under the provisions Of the char
ter of this defendant, any power to re-
move the eight or any part of that num-
Der of the Board of Directors of this
defendant except at the general annual
| meeting of it's stockholders; or that the
Governor of said State has, except in
the manner hereinbefOre pointed out, the
control Of the corporate management Of
this defendant.
g. 1t admits that statements con-
tanned in the paragraphs numbered from
to 6 both inclusive of the plaintiffs
bill of complaint are true.
4. 1t believes that the statements con-
tanned in the paragraphs numbered from
Z to IS both inclusive of the plaintiffs
bill of complaint are true.
:. 1t admits that the statements con-
tanned in para graphs numbered from
II to u both inclusive, of plaintiffs
bill of complaint are true, except in the
particulars or respect hereinafter men
toned that is to say, that it is advised
that the deed of lease executed on the
10th day of August 1895, a copy Of
which is annexed to paragraph IL of the
plaintiffs bill of complaint and is mark
ed, Exhibit e. is a separate and in
dependent contract from the deed of lease
dated September 18th, 1871. and made
part of plaintiffs BILL copy Of which
is marked Exhibit "B," and that said
deed of lease dated the 10th day of Au
gust, 1895, is not by legal effect as it
was not in fact simply an extension and
modification OF said lease of September
18th, 1871: and it is advised that the lease
of the 10Th day of August, 1895, does
not stipulate that the railroad and it's
properties shall be subject TO taxation like
other railroads in the State Of North
Carolina without immunity therefrom,
but it admits that from the monies paid
it under said lease of August 10th, 1895.
by the plaintiff, the Board of Directors
of this defendant have been able to de-
clare dividends Of profits exceeding six
per cent per annum, and III consequence
Of which the property of this defendant.
heretofore exempt from taxation by the
provisions of section Of the act of the
18th day of February, 1855, has been
subject TO taxation as other railroad
property in the State of North Carolina,
but only while and as often as its div
idends of profits exceed six per centum
per annum.
g. 1t is informed and believes that the
statements contained in paragraph % of
the plaintiffs bill of complaint are true
except in the particulars or respect here
matter mentioned, that is to say, it does
not know and can not set out as to its
belief or otherwise whether or not it is
alleged or is the fact that the said Daniel
l.. Russell will cause the States direc-
tors and proxy appointed by him to insti-
tute or cause to be instituted vexatious
and inequitable litigation in the name of
this defendant or the other vexatious
litigation alleged in said para graph, but
this defendant states that since the plain
tiff has filed its bill of complaint in this
court the said Daniel l.. Russell, Gov
ernor, has forwarded by the United States
mail to seven OF the States directors
aforesaid notice of removal as direc-
tors Of this defendant, and has thus at
tempted by and with the advice OF his
Council to remove them, to-wit: w. G.
Maxwell, Lee S. Overman, John z. ALI
son, Charles w. Johnston, J. j. Young, V.
Il. Turner and Ed. Chambers Smith and
to appoint Others in their places and as
their successors, but as hereinbefore in
this answer stated, this defendant de-
MES the power Of the said Daniel l.. Rus
sell and his Council to remove the said
directors, and to appoint others in their
place and stead until the next annual
meeting Of the stockholders OF said de-