The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-03-20
Lawsuit Over the Directorate
Very Probable.
OLDDIRECToRs UNDECIDED
NEW BOARD TO MEET AND OK
CAME NEXT WEEK.
HANCOCK TO BE PRESIDENT
The Private Stockholders of the Road
Have Already Retained Counsel
to Contest the Constitu-
tionality of the Act.

1t is not at all certain that the new
board of directors of the Atlantic and
North Carolina Railroad, whose appoint
ment was published yesterday morning
exclusively in the News and Observer,
will be allowed ITO assume control of the
property without recourse to the courts.
The same question is raised in this
case about the power of the Governor to
remove the old directors before their term
of office expires and appoint new ones,
as has been raised by the directors
of the North Carolina Railroad. The old
directors of the Atlantic and North Caro-
lima road We're appointed for year and
they may claim their right to serve out
their term, which does not expire until
September, and deny the power of the
Legislature to amend the charter with
out the consent of the stock holders.
Further, if an attempt is made to elect
new officers the question may be raised,
and probably will be, as to the right to
remove the officers of the company
president, secretary and treasurer-who
have been elected by the directors for
a stated period. This, / understand,
they may claim is unconstitutional in
and as is we'll known, no amendment
to the charter is valid unless ratified by
the stockholders
In this connection. however, it may be
well to state that the charter of the North
Carolina Railroad Company (sec. 49,
gives the Governor the power to APP
point, and by and with the advice and
consent Of the Council of State
Hinder This
provision the Governor has removed the
State directors appointed by Governor
Carr. l have not examined the charter
of the Atlantic Railroad and do not know
whether it contains similar provision.
l am told at does not
1t will be remembered, however, by
the readers of the News and Observer
that the private stockholders of the At
iantic and North Carolina Railroad met
at Goldsboro during the Legislature,
and, it is said, employed counsel to test
the constitutiOnaHty of annulment of
the charter under which they bought the
stock and which induced them to buy 1t.
This, they hold, Is a violation of contract
and therefore unconstitutional.
understand that able counsel had been
retained to test the question in the courts
IN case IL Is uttlleu t4iN iSdUlt ~ w eS~
President Chadwick of the Atlantic
and North Carolina Railroad, and Judge
w. w. Clark, of Newbern, were here
yesterday looking into the matter, but
they were undecided as to what steps, If
any, would be taken.
The new board of directors Will meet
and organize next week and make a for
NAL demand for the road. Mr.. Robert
Hancock, who is slated by the Republi-
cans, for its president, said yesterday
he presumed the request would be grant
ed.
IF the old directors refuse" he con-
tinued, land an attempt to throw the road
into litigation, application will be made
for the appointment of a receiver under
authority of the Act to restore to North
Carolina the control and management of
the Atlantic and North Carolina Rail-
road passed by the recent Legislature.
If / am elected president of the road
/ shall endeavor to run it strictly upon
business principles. 1t will be strictly
business administration. l shall endeav-
OF to divorce business from politics. l
realize that large number of private
stockholders have their money in the
road and shall LOOK after their intn~"s'
rs we'll as that of the State. This cleo
ion of a new board of directors is made
tor that purpose