The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-07
GOVERNORS HOT woods.
Continued from second Page !

cient grounds, and prosecuting to judg-
ment a proceeding in the mature of quo
warranto to annul the charter of the said
railroad company for exceeding its pow
er.S
1t is true also that the complainant has
continued since the 16th of August 1898,
to operate the said railroad as it had pre-
viously done.
10. 1t is not true, as this defendant
is informed and believes that sif$4ttsald
10th day of August, 1895, the complain
ant has made large and extensive inn
provements upon the property and rall-
road of the North Carolina Railroad
Company, but on the contrary, the said
North Carolina Railroad Company has
been required TO pay for all permanent
improvements such rs station houses and
warehouses. and the complainant has in
CURED no expense for betterments be-
yond the cost of keeping the track in
good order 1t is not true, as this. de-
fendenat is advised, that the complainant
has been induced to make expenditures
since the 10th day of August, 1899, that
would not have been incurred but for
the said alleged contract entered into on
that day; but on the contrary, this de-
PENDANT is advised that it was the
purpose Of complainant rs has
been stated by its officers. to
build a line of railway from Mocks-
Vile to Mooresville, and to get control
of a completed line of railway from Dan
Vile 10 Portsmouth, in Virginia, in case
they had failed to procure the execution
of said contract Of August 16, 1893, so
as TO reach the same terminal 10y another
route, and dispense with the use of the
North Carolina Railroad as connecting
link in the line by which it would reach
said terminal.
20. Answering the twentieth article
of the bill of complaint, this defendant
says. that he is advised and believes that
the alleged lease of August 10. 1893,
under which complai nant claims to hold
the property and franchises of the North
Carolina Railroad Company IL not an
agreement of modification or extension
of the lease of 1871. but is an independent
contract, if valid, by the terms of which,
the last named lease has determined.
Defendant further says that no impair
ment or modification of said lease Is
sought by this defendant or any one else.
to his knowledge, If the same Is valid LII
law and equity: and defendant AYERS that
if under proper proceedings IN Il court
of competent jurisdiction the said lease
should be set aside and annulled the dam
age to complainant would not be such
| as it can find relief from q court Of law
or equity. and any impairment of the
value of complainant securities which
might arise because Of uhe exercise OF
the right to bring an action to test the
validity of the lease would not be in
contemplation of a court of equity ir
reparable damage.
Il.
of the bill of complaint, this defendant
says that it is not true that neither the
State of North Carolina, not its Govern
or, nor any officer thereof in his public
capacity has any right, title or interest
| in or to the railroad of the North Caro-
| lima Railroad Company or in any other
of the rights, property or franchises of
the said North Carolina Railroad Com
pany, except under and by virtue of the
ownership of three million dollars of the
capital stock of said company by the
State of North Carolina; nor that all Of
the right, title and interest of the said
State of North Carolina, or of any public
officer thereof, in said North Carolina
Railroad Company is limited to and is de-
fined by the right of a stakeholder in said
corporation as created by and existing
under the laws of said State, but this
defendant AYERS that the North Caro-
lima Railroad Company is creation of
the Legislature of North Carolina, is or
ganized under its laws, and is subject to
the supervision and control of said State
in the exercise of the powers granted in
its charter, and that the defendant,
Zebulon Vance Walser, is clothed with
power, as the agent of the State, in his
official capacity as Attorney General to
institute, whenever in his discretion he
may deem it proper to do so, an action in
the nature of quo warranto for the pur-
pose of annulling its charter on the
ground, either, that it has already trans
cended or may hereafter transcend the
power and authority granted in its char
ter or to set aside and restrain any and
all improper alterations of the property
OF said railroad company, and that the
Governor of North Carolina in his Of
fetal capacity is clothed with authority
by the statutes of said State, whenever
in the exercise of his discretion he may
determine that the public interest re-
quires him to do so, to aid in the prose-
cution of such an action by the employ
ment of counsel to represent the said
State.
FURTHER answering, IulS ueleuudut
says that the former directors on the
part of the State having, been removed
as aforesaid, the directors, appointed on
the part of.the State in their stead, have
the right to impeach said alleged agree
ment or lease of date August 10th, 1895,
as fraudulent, in a proper action brought
in the courts of the State Of North Caro-
lima, and that the Governor aforesaid is
l..
counsel to assist in the conduct and pro-
secution OF such suits, and it is not true
that the said directors last appointed
are precluded by any acquiescence on the
part of the stockholders of the North
Carolina Railroad Company from main
taining such an action, nor is this defen-
dant estopped in any manner from prose
cutting or assisting in the prosecution OF
Such ctioO in tho ma mo or on haha1f oF