The news & observer., 1901-11-12
SOUTH DAKOTA BRINGS THE SUIT
Supreme Court Asked to Sell the N G.. r. r to Pay
Holders of w. N. G. r. r. Bonds.

Railroad, and for other purposes" a
copy of which said Act Of 1866, is here
to attached as part of this bill OF
complaint, marked Exibit .B."
3. That at the time of the passage of
said Act of 1866, the defendant. The
State Of North Carolina. was owner
(subject TO the statutory lien or mort
gage hereinafter set out and to be de-
signated as the First Mortgage") of
thirty thousand shares of stock in the
North Carolina Railroad Company Of
the par value of three million dollars
(shares one hundred dollars par) and
said Act of 1866 directed the State
Treasurer to mortgage for the security
of the bonds held by your Orator and
OF all other bonds of the same issue
that is, issued after the passage of the
Act of 1866, by authority of the Act of
1855 aforesaid-such an amount Of the
stock owned by the State in the North
Caoriina Railroad Company as
should equal in its par, the
principal or par of the State
bonds to be issued after the Act of
1866, in aid of the Western North Car
olina Railroad Company by authority
of said Act of 1855, which Act of 1855,
was the incorporation or charter of the
Western North Carolina Railroad Com
pany; and said Act of 1865 declared that
said mortgage should have the force and
effect, in law and equity, Of registered
mortgages without actual registry; and
in execution OF said Act OF 1886, the
Treasurer of the State and the State
Comptroller certified upon each and all
of the said bonds authorized by the Act
Of 1856 and issued after the Act % 1886.
including tac bonds now held aud owned
by your Orator, the following endorse
rnent
State of North Carolina,
Treasury Department
Raleigh, July l, 1867.
Under the provisions of an Act of the
General Assembly of North Carolina,
entitled AN Act to enhance the value
of the bonds to be issued for the COM
pletion of the Western North Caroline
Railroad Company, and for other pur-
poses, ratified 10Th December 1866, ten
shares of the stock in the North Caro-
lima Railroad Company. originally sub
scribcd for by the State are hereby
mortgaged as collateral security for the
payment of this bond.
Witness the signature of the Public
Treasurer and seal of office, and the
counter signature of the Comptroller.
"KEMP p. BATTLE,
Public Treasurer.
IS w. BURGIN. Comptroller"
A. That in 1849 the State cf North Car
xLa. thn
North Carolina Railroad Company by
an Act of it's General Assembly, being
Chapter S2,f Acts of 1S4S-'49, by which
Act 1t was provided that the capital
stock of said company should be three
million Of dollars. Of which two mil
lions was to be subscribed by the State
and one million by private parties, all
of which said subscriptions were duly
made and paid into the Treasury of the
North Carolina Railroad Company; and
afterwards, to-wit, in 1855, by virtue of
the laws of 1854 -'55. chapter32, section l
the State subscribed and paid in an ad
ditional one million of dollars for an
equal amount OF said stock, so that the
State became and has without interrupt
tlon continued to be. and is now the
owner of thirty thousand shares ($3 0OO,-
600 par) out of forty thousand shares
(S4000.000 par) OF stock of said North
Carolina Railroad Company; that in
order to raise money for the payment of
its three million subscription as afore-
said, it was provided by both of the acts
last mentioned that the State should
issue its six per cent. bonds for three
million dollars, running and to be due
in, n rt hai,. off ~
authority of said Acts the bonds of the
State We're duly issued and sold. And 1t
was further provided by said Acts that
all of said stock held and owned by
the State (thirty thousand sf1aros--three
million dollars par) should be pledged
as security for this three millions of
bonds, by authority of which statutory
lien or mortgage, the holders of said
three millions of bonds acquired first
mortgage on all Of the States stock
fhirty thousand shares-three million
dollars par) in said North Carolina Rail-
road Company. Said bonds are desig-
mated in this bill Of complaint as first
mortgage bonds.
5. Your orator is advised and believes
and so ayers that the effect of the leg
islation and action of the defendant, the
state OF North Carolina, above recited,
was to give the first mortgage bond
holders lien or pledge or mortgage on
all the State stock in the North Caro-
lima Railroad Company. and to give to
your orator and the other holders of
the bonds which were issued in the aid
of the Western North Carolina Railroad
Company after the passage of the Act of
1866, second mortgage or equitable
lien uDon such an amount of the said
stock as should equal in it's par the
principal or par Of said second mortgage
bonds.
g. That the first mortgage bonds, hav-
ing been issued from Time to time in the