The times. [volume] (Richmond, Va.) 1890-1903, 1897-07-03
THE SOVEREIGN RIGHTS OF a STATE.


The facts briefly stated are as follows;
The Southern Railway Company which
purchased the property Of the Richnond
and Danvlle Railroad Company found
among its assets lease Of the North
Carolina railroad. dated September II, 1871
for a term of thirty years.
In August. 1885. as the result Of negotia-
ton between the Southern Railway Com
pany and the North Carolina Railroad
Company, new lease was executed by
the last named company to the Southern
Railway Company. OF all its property
and franchises, for a new term Of ninety
years, upon IN increased rental, and GER
tain other provisions more beneficial TO the
lessor than in the former lease. and by
the provision Of this new lease the termi-
nation Of the former lease was antici-
pated and it was declared 10 be at an
end on 3lst December. 1885. the new lease
taking its place.
The North Carolina Railroad Company
is corporation Of that State. three
fourth of the stock being owned by the
state and the other fourth by private in
dividuals. The affairs are managed by
a board Of directors. eight representing
the States interest and four that Of the
private stockholders. The lease Of ninety
nine years was duly executed by the
board of directors by unanimous vote,
I and also approved by a like vote Of a
meeting Of stockholders. The legality
of the lease. however, was challenged,
a@d threats were made by men of infiu-
ence to break 1t. Efforts were made to
obtain action upon the part Of the Legs
lature to this end, and although these ef-
forts did not meet with success, it was
manifest that there was a fixed determi-
nation to obtain, if possible, the end in
view by suit anc other means.
Under the laws of North Carolina the
right to bring this suit rested with the
Governor and the Accomplishment. and
they were urged 10 bring an action in
the State Courts to upset the lease. Then
it was that the Southern Railway Com
pany appealed 10 Judge Simonton TO grant
an injunction restraining the State officers
from taking such action.
Upon the filing Of this appeal. the usu-
al rule TO show cause was issued. and a
temporary restraining order was entered
Then the Governor of North Carolina re-
moved the directors. heretofore acting
in the corporation on the part of the
State and appointed new directors in their
places The new directors went before
Judge Smonton and prayed leave TO an
swer as parties. This was granted.
cause was then shown by all the parties
named in the original appeal, and in this
amendment. as defendants, the Governor
and Attorney-General protested against
the right Of the court to compel them to
answer in their official capacity, and put
in their responses as individuals.
When the case came up again the other
day at Greensboro. Judge Simonton said
in his opinion that The first question 10
be decided was that Of jurisdiction. His
conclusion was that when a State be-
comes u stakeholder in a private cOrpOr-
alton. she does no; carry into the enter
prise her functions of sovereignty but
strips herself OF them. and must be dealt
with as other stockholders in the same
cOrDoration- He concludes, therefore,
that the State cannot plead her constitu-
tional rights in allegiance, and that in
this point of view the Governor and At
torney-General are proper parties to his
case. Chief Justice Marshall decided the
same thing over seventy years ago.
The whole question, says Judge simon
ton. is as to whether Or not the lease
WAS made in conformity with the re-
quirements Of the character and was
executed bona hde, without fraud, mis-
representation OF malpractice in any re-
spect If so. the State is bound. as 9TH
er stockholders are bound. by the agree
ment. Therefore. he continues the in
junction. and appoints a special master
who shall cause all the parties in interest
to appear before him and testify. and re-
port the evidence to the court
Judge Simontons conclusion is so clear
and just that it cannot be disputed, and
II shows how absurd have been the
charges Of the North Carolina press that
the United States Court had trampled
ucon the rights of a sovereign State III
granting this injunction There is no
question of State sovereignty involved. 1t
is simply question Of the validity Of an
agreement. II the State Of North Caro-
Ina has made legal contract with the
Southern Railway Company she must
stand by her agreement That's all
there Is about It. A State even in its
sovereign capacity has no right to impair
the obligation Of a contract. Much less
when she appears as an ordinary stock
holder in a private corporation.
- "
The Populist principles" says Tom
Watson ARE not for sale" There is at
least no danger of working up much of
a trust on them.
Whitelaw Reid cables: Etiquette pre-
vents me from discussing the jubilee"
and those who are inclined to soon at
etiquette may now cast d boquet Tor some
of its benefcent results.
A Western paper says: MARY Ellen
Lease is Mary Ellen Still She has.
doubtless. fallen asleep somewhere.
Three thistle insnectors have been