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

or salisbury and south anu west of Char.
lotte. Ii is admitted that any Interrupt
ton Of said continuous line by the cancel
lation or impairment of it's rights in and
to the said North Carolina Railroad will
seriously emharrass and impair the COM.
plainant's power to transport its mails,
freight and passengers, but this defend
ant has no purpose and knows of no pur-
pose 10 interfere with or cancel any law
full contracts or rights of complainant in
the North Cardinals Railroad Company's
property and franchises. This defendant
is advised however that it is not an in
tprfcrencr with the company to mpeach
the alleged contract under which it holds
possession Of said North Carolina Rail
road for fraud in it's procurement, and
this defendant denies the authority of
this court to restrain him in his individ-
ual capacity SO that he cannot discharge
his duty as Attorney General of North
Carolina, if need be- in bringing any ac-
tons which he is authorized by law to-
institute, to set aside said contract as
fraudulent or to annul the charter Of the
North Carolina Railroad Company by an
adJudicat ton of court OF competent
jurisdiction.
10. Answering the allegations Of the
fifteenth article OF the bill of complaint,
| or information sufficient TO forn
belief as to the execution OF the
alleged mortgage to the Central Trust
company Of New York, by complainant,
the number or amount Of bonds issued.
| or secured Hereunder, or the contents
Oh Sald mortgage as set out in said article,
| or the observance of it's obligation by the
complainant under the said mortgage, the
uelehdant therefore demands strict proof
| thereof
10. That this defendant has no knowt-
| edge or information sufficient TO form y
| Dehef as 10 the allegation contained i'm
the sixteenth article Of the bill of COM
plant that negotiable bonds have beep
issued ana are circulating in tile United
States and England. but this defendant
IS advised that the fact that such bonds
have been issued and circulated furnish
Us no sufficient ground for the interposi-
ton OF court Of equity to restrain the,
defendant from seeking in the courts
OF the State Of North Carolina to impeach
the alleged contract set forth in the bill
OF complaint, or from seeking to annuI
the charter Of the North Carolina Rail.
road Company, for acts of said company
not authorized by its charter
II.if Is true, as this defendant is in
formed and believes that paper-writinC
III form az set forth in exhibit e. fled
as part Of complainant's bill. was sign
ed as alleged, on the 10th day of August.
1880, and purported to have the approval
OF the then directors and stockholders of
the North Carolina Railroad Company:
but this defendant says that, as he is. in
formed ana believes. at the time OF the
making and entering into the pretended
contract Of August, 1895, and long prior
m hf, L.,
agents and attorneys had full knowledge,
that the pretended contract of the 18th
Of September, 1871, between the North
Carolina Railroad Company and the
Richmond and Danville Railroad Com
pany was fraudulent, null and
void, and any attempt by the
complainant to perpetrate and
extend said Last named pretended
contract was knowingly and Intentionally
perpetrating fraud upon the North Car
DINA Railroad Company, its stockholders
and the State of North Carolina.
This defendant admits that the pretend
ed contract or lease of the 10Th of An
gust, 1893, was approved and voted for
by the States directors and by the stock
of the State, through it's agent or proxy;
but this defendant AYERS that he is ad-
vlsed that such approval was had and
procured by the complainant through
threats of destroying the value of the.
property Of the North Carolina Railroad
Company unless its demands were com
piled with, by building other roads as
aforesaid; and by imposing upon said
States directors and proxy by rep
resenting TO them that said property was
of much less value than it really pos
sessed. By reason whereof this defend
ant is advised and believes that said con-
tract Of August 10th, 1885, is null and
void. Defendant refers to legislative doc
uments of 1871 and 1872, document 81,
extracts from which, on pages 16 and II
are herewith filed, marked exhibit 80"
Defendant is further advised that the
said pretended contract was entered into
secretly and without the opportunity be-
ing offered to the public for fair compe-
tition of bidders. Aud defendant further
says, that if said facts be true. as he has
been advised as aforesaid as heretofore
set forth in this paragraph. and that
such action ON the part of the North Car
DINA Railroad Company and the direc-
tors, officers and stockholders who par
ticipated therein constitutes fraud in law.
though this defendant does not charge
them with moral turpitude, then sai1
contract is null and void.
And this defendant is advised that the
extraordinary powers of this court cannot
be used to restrain him as an individual
from exercising the Judgment and discre-
ton intrusted to him in his capacity as
Attorney General OF said State, in aid or
the vacation Of said contract for fraud
of the punishment of the North Carolina
Railroad Company for exceeding the
powers granted in its charter. 1t is not
true as alleged in said article, that the
alleged contract set forth in exhibit &C.
is an extension of the lease OF S6fem-
Der IL, 1871; but on the contrary, by the
express terms OF the last named agree
ment the lease previously in force was de-
clared to be terminated and annulled.
10. 1t is true, as this defendant is In
formed and believes, that since the 10th
day of August, 1895, the Treasurer of
the State of North Carolina has received
o.. l.lit;n.. u fol EL.,.