The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-07-21
MAY APPOINT
''' 4 4 STATE ; TAI PROXY
q
10 Represent State interest
In Atlantic and North
Carolina Railroad.
IT.
JUDGE SlMONTON
HAS so DECIDED
RI
rYsyr PRIVATE STOCKHOLDERS
MIST AGREE TO THE
AMENDED CHARTER.
IWJUNcn0N AS TO THIS IS PERMANENT

Ths Bill as Against the Governor Attorney
General and the Board of Internal I'm
movements IS Dismissed, But
Il is Retained as to the
Other Parties.
rr3ye Simonton. of the North Carolina
eEs,o,,;t eourt. Yesterday rendered his de-
60, IN tho case of w. r. Tucker and
s.rixat4 stockholders in the Atlantic ana
rv--ab Carolina Railroad against Gov
,~~,ar. wusseII. the Attorney General and
A,,.. Board of Internal Improvements.
n wN be remembered that Mr.. tuck
49,, nr.curs,3 a temporary restraining or
fasr in APRIL forbidding the enforcement
,as kh. two acts of the last Legislature
.,{Fpek;ny thc Atlantic and North Carolina
R,5YraaS Company. One of the acts
<.r~w,itted the removal of directors anu
,ss,a .nnointment of others, without notice
.,nd rause shown by the Governor ana
Rpard of Internal improvements, ana
x.ruxitled that il an officer or stOckholder
Eaheula hinder or delay the delivery Oh tne
espmpsny's hooks, or apply to the courts
flhr redress, ETC., the Governor snouiu
ssue for possession of the road ana the
Judge should appoint receiver. Judge
Simeaton refuses to continue the re-
szfraining order as to this act on the
ground shat the old directors had already
heess removed and other appointed by
4he. Governor. and hence there existed
Ssae probability that the suit for posses
sidn Of the road, and the appointment
at a receiver could take place.
The second act, that of February 10Th,
zz97,. provided that the graduated scale
az uriyate stockholders vote and the
vote allowed the State should be repeal
ed. The effect of this would be that the
State would cast about 1900 votes and
ahe prirate stockholders about 5000 votes
IN the eompany's meetings. 1t also pro-
viled that the State proxy should always
lie present in order that quorum OF
stockholders should exist in the meetings.
The affect of this, legislation would be
N place the road entirely in the hands
III the State.
Judge Simontom enjoins the enforce
snent OF this second act SO that the vote
and the quorum will remain as hereto
Hbrs This will accomplish about all
Ahaf the complainant hoped to secure, it
IN said The bill is dismissed as to the
Governor, Attorney General and Board
n Internal improvements, and the or
DIR made perpetual as to the officers
and directors OF the road.
The decision in full is as follows:
The United States of America,
EASTERN District of North Carolina,
In the Circuit Court,
- Fourth Circuit-In Equity.
IN, r.. Tucker, private stockh0lder In
the, Atlantic. and North Carolina Rail-
road Company VS.. d. l.. Russell ct al.
The. hill Of complaint is filed by a pri-
w.sY stocK hoRder in the Atlatic and North
l:rpolina Railroad Company. The grava-
upan, OF the complaint is the passage by
cAe Legislature of North Carolina IN
1897. of two acts which it is charged,
change the original charter of the COM
nsuy and impair the fundamental con-
41Yxer contained therein. And that under
sssid two acts, changes in the manage
zpent and constitution of the company
.uys threatened, which will materially am-
aaIy. If they do not destroy, the rights
sx.d property of the private stockholders
IN the corporation.
The Legislature of North Carolina, in
sgs9 Incorporated the Atlantic and
N.rth Carolina Railroad Company, with
sxre terminus at Beaufort and another
.s GoIdsboro in that State, giving al
s.uvers necessary for constructing lts
railroad. The act made provision also
ar the. subscription to it's capital stoct
Nv individuals, private corporations ane
rErrnicipal bodies, and invited and encour
.ssed such subscriptions.
The charter is most liberal in its term'
and the purpose of the acts was to make
n part of a good scheme OF interna
Improvement effecting railroad communi
ration from the Atlantic through tht
crater OF the State to meet the Tennessee
sire. The capital was fixed at mini
msnn Of 100000. ~.
At the session Of 1S54-55 an act wa
wassed amending this charter and by thu
caxa the State became a stakeholder
The company. The capital stock wa
increased to $1,600,OO0 And as 500
,.ess Il speared to the Board of lnterna
ar1y that one-third of the capl
JrsseoyementN nsu taken by solvent IN
sag stock had beeMV1ns, and that $500
1ivfduals or companisS >tbe treasurer o
qssy thereon was paid to l. authorize
she company, the Board waN State TO
10 subscribe on the part of theme stoc
abe remaining two-thirds of tHCidet
suRJ to pay for it as in the act protbea
TWO sections of this amending act Nj
anon the matters in controversy IN I"
ense. sections 3 and 4. Section 8, Ih'
sFe affairs of the company shall be ma
n,ssfl and directed by a general boar
~ consist of twelve directors, eight
whom shall be appointed annually by t
Roard of Internal Improvements al
nav be removed in like manner. al
Tonr to be elected by the stockholders
abpir next general meeting, provided tn
.,o one but a stakeholder holding at lea
Eve shares can serve as director. 81
zion provides scale Of voting in ca
"a stock vote be taken in all electio
and on all questions in any general me-
ane OF stockholders, that is to say, t