The news & observer., 1897-03-05
ACTION OF THE SPECIAL COM
MTTTEE.

A critical investigation by tue speSlSA
,onn,ittae ON the lease matter shows that
Grants substitute was very arttuliy
drawn, probably by some railroad at-
torney. Sprung upon the Senate SUD
denly as it was it is not surprising that
| some Senators should have been misled
as TO it's nature and effect. 1t seems
| clear to us that If it becomes operative az
all. II must be as an amendment 10 the
| charter of the North Carolina Railroad
Company which was enacted before
| 1868. 1t confers upon the company the
distinct power to lease its franchise ana
property, but limits the term OF such
leases to thirty six years. rms pro'a-
sion is clearly an amendment to the char
| tor and TO make it effective it must be
| adopted bv the stockholders. A bylaw
of the company makes the presence OF
one hundred stockholders representing
over half million of the private STOCK
necessary to constitute quorum. Ex-
Gov. Carr testified before the committee
that the private stockholders refused TO
meet and make quorum in 1S9o IN order
to defeat an amendment to the charter
snhiecting the property of the company
to taxation. They can in the same way
make this bill if it is passed, totally in
operative. and the only two stockholders
who have been examined before the COM
mittee have declined to say whether they
would vote for a ratification of the a.
mendment. These two were Gen. Il. +.
Hoke and Ed Chambers Smith, Esq.
Drexel, Morgan 81 CO., refused to treat
the 90 year lease as valid until 1T was
agreed to by the stockholders as well as
the directors of the North Carolina Rail-
road company. If the assent of the
stockholders was necessary to make this
so-called contract, their consent must De
eonally essential to modify it by dimin-
ishing the term from ninety to thirty
six wears. BY reference to section seven
Of the bill it will be found that the Gov
ernor's right to bring suit to amend the
lease is conditioned upon the failure or
either the Southern Railway Company
or the directors of the North Carolina
Railroad Company to assent TO the
change in the length of the lease. 80
the adroit craftsman Of the bill depriVes
the Governor of the right to bring SUIT
though the act may be still imperative
for want of the approval of the stockhold-
ers Of the North Carolina Railroad, IN ad-
dition to the approval of the directors and
of the Southern Railway
If the bill had provided for ratification
bv the stockholders or made that one
of the conditions precedent to the GOV
ernor's right to bring an action, the COM
mitt4e would still have been confronted
with the question whether the private
Stockholders would ratify the amend
ment. Mr.. Busbee said he believed they
would adopt it, but the only two stock
holders examined declined to say what
they would do.
The committee acted upon the prece-
dents heretofore established and deter
mined to report a resolution asking the
opinion of the Supreme Court upon the
question whether the Grant substitute II
uassed. would require ratification in order
to make it effective 1t will be remem-
bered that the Supreme Court IN the
snring of 1894, at the request OF the
Governor. gave their opinion as TO the
terms of the judges. That opinion, we
believe, was published in the Hath vol
ume of n. C. Reports, and the court, Ill
support of the ground taken by them,
held that it was proper to give such an
opinion, citing case where Chief JUS
tice Rufin, for the court had delivered,
at the request of the Legislature an
opinion upon contested election case
then pending before one of the Houses.
These precedents established the rule that
the court will, as a matter Of courtesy,
give an opinion at the request Of CO.
ordinate branch of the government upon
a question then pending for decision,
whether before the Governor or the
Legislature. The committee agreed to
request the court to transmit their opin-
ion to the two Houses during the sessions
of Saturday, the 9th inst Meantime the
committee propose to summon other pri-
vate stockholders in order to ascertain
whether there seems to be u bona fide pur-
pose to ratify the act as anamendment
if passed.
ANOTHER RAILROAD TRICK.