The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-03-30
GOVERNOR RUSSELL AND THE
NEW BOARD OF DIRECTORS
ARE ENJOINED.
FROM TAKING CHARGE OF
THE ROADS PROPERTY
THE RECEIVER CANNOT BE AP.
POINTED AS PROVIDED BY
THE LAW.
CASE TO BE HEARD At
GREENSBORO APRIL 8

The Governor Has Some Sharp Things
70 Say About Judge Simonton and
His .niuncti ons--Repudiation Of
Bonds by Wilmington
and Newborn.
The Governor Of this State has been
arain restrained by His Honor, JUDGE
Simonton, Of the United States Court
This time it is at the instance OF W..
r. Tucker, representing the Tucker
estate, which owns $135,210 Of the stock
Of the North Carolina Railroad.
Judge Boykin, OF the firm Of Jones and
Roykin. of this city, returned from
Charleston. S.. c.. yesterday, where ne
procured the restraining order directed
AGAINST the Governor, Attorney General,
the Board of Internal Improvements and
Robert Hancock, e. Ii. Meadows. Will
liam Chadbourn, w. j. Polk, !. ..
Mewborne, G.. G. Wooten, L. b. Hewitt,
w. FL. Sawyer.
1t will be remembered that the last
Legislature enacted two statutes AFFECT
ing the corporate rights OF the Atlantic
and North Carolina Railroad. The hrst
act provides that on the mere suggestion
of some dereliction OF the part OF the
States proxy, and States Directors, the
Governor. Of his own motion. acting con-
Jointly with the Board of Internal I'M
provements, may remove. without notice,
and without cause shown, the States
proxy and Directors, and forthwith ap-
point others in their stead; also, that the
Directors so appointed may at once pro-
eeed to elect a new president. The act
likewise denounces severe penalties
AGAINST the officers and agents OF the
company If they shall, on the demand OF
the newly appointed directory and presl-
dent. refuse to surrender the property
and books Of the company to them. The
minimum fine in case Of such refusal ID
81 600; the imprisonment provided there
In is six 90 months. The Act also declares
that upon the refusal Of the old officers
to surrender this property on demand,
or IN case any officer, attorney or stock
holder of the company, shall seek by liti-
CATION to obstruct or prevent enforcement
of the provisions Of the Act, that the
Governor in his own name or in name OF
such person as he may designate for the
purpose, shall sue for the possession OF
the road and for the immediate appoint
ment Of a receiver. The receiver 10 re
uuired by the Act to manage and con-
troll the road go long as in the opinion
a. = 10 IN vNl-
store to the State its alleged majority
stockholders right. The Act also makes
1t mandatory on the Judge to appoint
the receiver, seemingly withdrawing the
judicial discretion with which he 10 in
vested by the fundamental law Of the
land. The second Act repeats section i
of the amendments to the original char
ter. This section provided graduated
ecale OF rates by which the State enjoyed
$50 votes and the private stockholders
about 800. 1t also provides that hereafter
the States proxy shall be appointed by
the Governor alone, and that he shall
cast the vote Of the State stock in all
meetings Of the company without regard
to the original charter provisions. This
Act also declares that the presence Of
the States proxy shall be necessary in all
meetings Of the company to constitute
a Quorum. No such provision was in the
original charter.
AN AMENDED CHARTER.
It is contended by the solicitors Of the
complainant, Jones and Boykin, that
these two Acts, not having been accepted
or assented to by the private stOckhold-
ers as amendments to their charter, are
unconstitutional and void, since the pri-
yate stockholders and officers Of the com"
pany are deprived of their property
rights without due process of law.
1t is also alleged that the said Acts are
yiolative Of Article /, Section 10. of tn,
Constitution Of the United States and
Article1, Section II, 10 and 35 of the con-
stitution OF the State.
Since the passage Of these Acts, the
Governor has proceeded to remove the
old officers and State directors and to
appoint the parties above named in their
places. The restraining order issued by
Judge Simonton forbids the enforcement
or attempted enforcement Of any Of the
other provisions of either of said Acts.
1t is further ordered that the Gov
ernor and Board of Internal Improve
ments, be restrained from removing the
directors and State proxy hereafter APP
pointed from their offices. except for cause
and on due notice; and that the Governor
and any person designated by him to in
stitute proceedings under the act passed
BY the last Legislature, be restrained
from suing for the appointment Of a re-
ceiver to manage and control the road
The Governor is also restrained from APP
pointing the States proxy as provided in
these Acts.
II is further ordered that bond in
the sum of $500, to be justified before
the clerk of the Circuit Court of the
limited States Mt Raleigh, be given by
the defendant w. r. Tucker, to insure
the payment Of all costs and damages