The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1898-06-14
THE CAPE FEAE .A\O EADkL\
VALLEY RAILROAD.

of the State trayereed 10y the Cape Fear
and Iadkin Nllley iiIlr0ad. must re-
ceive with grcJt Satisfaction the recent
decision of the United States circuit
court of appeals. for the Fourth circuit,
ia the case Of Charles Adolpie Low ami
others vs.. William II. Blackforl and
others. which affirus the decision OF
Judge Simonton, OF the circuit court, ana
holds that 4; sale Of said railway. by Ii
vision. under the circumstances Of ,hc
case. would be ;nc!uitablc. and decree
Ing that the property must be sold III Its
entirety. This decision means much To
the business Interest,"; Of North Carolina.
as Il hasty review Of the 1acts involved
must demonstrate. Tor some years the
Cape Fear and 1adiSin Valley railway
has been in the hands Of a receiver, pend
ing a contest in the courts between the
holders of several series OF bonds. The
first mortgage covers all the railroad
lines. EXCEPT the branches, ana WAS ca
ecuted to secure three separate series Of
bonds. designated Series y. Series
B. and Series c. each series Of bonds
being Il first lien upon a certain dcslg-
mated division Of the railway, and a sec
ond lien upon the other two 'Iylslons.
The main line from Wilmington to
Mount Airy is two hundred and forty
eight and one quarter miles. The bonds
in 'Series.A' are d first lien on that por-
ton Of the road which lies between
Greensboro and Fayetteville and Fay
etteville and the South Carolina line,
about one hundred and forty-four miles
i'll all. known as "Diyision A. The bonds
in Series B.. are il first lien on that
portion of the road situated between
Greensboro and Mount Airy, about sew
cmty miles in length. known rs "D1yi-
sion B." The bonds Of Series &" are Il
first lien on that portion Of 'he road
between Fayetteville and Wilmington,
about eighty-one miles i'll length, known
as division c." The bonds Of each
of these several series are alsc subordi
nate liens upon each Of the other divi-
siOnS. respectively. The second or con-
solidated mortgage embraces al the lines
III the first and also the branches.
The contention is between the plain
tiffs. Charles Adolphe Low and others.
claiming to be the committee represent
ing Series 4" bone holders. and the de
PENDANTS. William II. BinckforJ and
others. Il committee of the holders Of the
bonds of the three different series. The
first are knowna as The New York ON
mittee.' and the last as the 'Baltimcre
committees" the New YORK committee,
'1iIIl1lHS tIdI liz l. ril'ytilt III
offered for sale both by divisions and
as an entirety. while the claim of The
Baltimore committee is, that it should
be sold as an entirety.
Judge Simonton, in Il most able and
carefully prepared opinion, reviews thu
facts. discusses fully the equities. and
applies the law. The circuit court of APP
peals quotes. with approval. from his
opinion where he says: This railway
company derives al its powers and priv
legeS from the State which created it.
and the bondhoiderS enjoy the security
of the mortgage. because the act of the
Legislature granted this power to the
railway The purpose and IN
tent of the State was to secure All en-
tire line of railway from its principal
seaport to the Virginia line. 1t granted
he franchise to the company rs an en-
tirety. one indivisible franchise. granted
for the purpose Of constructing and con
tinuing an entire continuous line Of road
3 : If. therefore. the property were
offered for sale at auction in separate
divisions, it could. probably would. re-
suit i'll Il disruption Of the entire system.
against the purpose of. and defeat the
end sought by the state. for which the
corporation was created. and to which
1t owes its existence and its powers
will be Inconsistent with the general ten
or of The mortgage itself: and will ne
tcrly destroy IN important incident in tbs
value of each division"
Judge Simonton. further Ella horatcS
the injurious effects to result. to the
State and its business interest. in lefrat-
ing the object and purposes for which
the franchise of this was grant
ed. The New York bondholderS seek to
ytil tI.
sale by division. would destroy it en-
tlrely. The court. in its opinion pro-
vides for an equitable division. of the
proceeds of sale among the %bondhold-
crS. of the respective series. and the
circuit court of appeals. i'll the elaborate
opinion of'JudGe Golf. approve the con
illusions reached. and affirms the deci-
sion III its entirety.
mis- means much for the people Of
\orthCarolina 1t is Il distinct recognition
on the part of the Federal judiciary. Of
a. duty TO enforce the laws of the State.
III dealing with corporations chartered
under those laws. and as such we hail
and applaud it. it is useless to 90 into
any details as to the disastrous result
which would inevitably follow the sale
Of the Cape Fear and Yadkin Valley
railway in Observation-Disclosures
would inevitably follow. The great
purpose for which it was ncorporated
to with railway from our great sea-
port on the Atlantic to the Virginia line
would be defeated. the benefits of COM
petition would be lost. and these seno-
rated divisions would be absorbed by
rival corporations. Indifferent to the vel
iarc OF the people. and looking only to
corporate ACKNOWLEDGEMENT and the es-
enlistment of monopoly.
From this hurried review of the facts
OF the case. it must be apparent that
me contention of the Baltimore commit
tee. Is in line with the laws of orr State
ana the best interests of our people. and
the declS1on of the court. SUSTAINING tbie
contention. must he a cause for con
graduation With all who seek tho wei
fire and prosperity of North Carolina
LiWlessness is never to be annrovod
put there are no fathers or brothers who
Will no nui,l- 70