The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-06-10
INTERESTING QUESTION
Can the State Legally Own Stock IN
the Turnpike Cos.
ACTS DO NOT SPECIFY THE AMOUNT
The Stick is 10 be Given IN Return Tor the
Work of the Conyicts Made in the Name
Of the State, and Credited to
the Pent MARY.
The Penit MARY.

tIlH tfIl III ldi y
rronos OF the recent mandamus by
Judge Council at Morganton to compel the
directors of the State Penitentiary to show
cause why they have not furnished fifty
conyicts TO work the Marion huntsville
and Bakersville Turnpike, let us look for
a few minutes at the act of the Legisla-
tire in question. Section of Chapter
2S4 Private Laws of 1901. an Act to In
corporate the Marion, huntsville and
Bakersville Turnpike Company, says:
THAT upon application by the president
and Board of Directors of said company.
accompanied b. a certificate, that two
hundred shares of the capital stock of
said company of the par value of ten
collars each have been bonafde subscrib-
cd for by solvent parties, the Board OF
Directors of North Carolina State Prison
or Penitentiary shall detail fifty 500 con-
victs to be worked upon the road or high
way to be constructed by said company
until completed. under the charge of
sufficient guards and q superintendent or
supervisor to be selected by said Board
OF Directors of the North Carolina state
Prison or Penitentiary and subject to the
said BOARD of Directors and to the Prison
rules and regulations adopted or pre-
scribed by said board as far as practi-
cable, the said convicts to be furnished
with necessary quarters and tools and
Implements. with which to work on said
road or highway and fed, clothed and
maintained by said Board of Directors of
the State Prison until the grading of said
road or highway shall have been COM
ploted, the payment of such expenses to
lie made out of funds appropriated for the
support of the penitentiary or out of
moneys or assets otherwise coming or
belonging to or standing to the credit
Of said North Carolina State Prison. and
whenever and as often as so much
one thousand dollars shall have been ex-
pended by the said Board of Directors of
the said State Prison under the provisions
of this act it shall be entitled TO demand
and receive. and said company shall de-
liver and issue to TIE said Board of Di-
rcctors a certificate for one hundred
shares of the capital stock of said COM
pany at the par value of ten dollars
each made out in the name of the State
of North Carolina which shall become
thereby a stakeholder in said company
to the extent of such shares and shall
be entitled to participate in the profits
of said company pro rata with other
stockholders and to be represented and
TO vote it's shares in all meetings of the
stockholders in the same manner as
other stockholders may be entitled to
vote. through proxy to be named or ap-
rointed by the Governor of the State of
North Carolina.
4 provision states that upon delivery
Of said certificates of stock, so issued,
to the State Treasurer, credit shall be
given to the said Board of Directors of
the North Carolina State Prison upon
Tie books of the said State Treasurer for
the par value of the shares of stock rep
resented by such certificates.
It was in accordance with this act that
the turnpike people called upon the
rcnitontiary for fifty convicts; but the
directors said there were not that many
who could be spared. Hence the man
damus
It will be remembered that not many
weeks ago forty-fve convicts were sent
from here to work on the Wilkesboro and
Jefferson Turnpike.
Section 10, Chapter 2S6, relative to the
employment of convicts on the Wilkes
tie section quoted above relative to the
Marion Burnsville and Bakersville turn
ike. in that here it is stated that 1.-The
Roard of Directors of North Carolina
state Prison or Penitentiary may in
their discretion detail fifty (5O) convicts
to be worked upon the road or highway"
There is the same provision that credit
shall be given to the Board of Directors
i,a nj State treasurer
fer the nar value of the stock.
This act was rassed to amend an act
of 1899 relative to the incorporation of
the North Wilkesboro- Boone Turnpike
Company Hardly any one could be got
tcn TO take stock in that company, and
the new act enabled the road to be work
81 by convict labor
1t is observed that the stock is to be
e;scn IN return for the work done. But
the penitentiary cannot legally hold
stock in any corporation, and for that
reason the papers are made out in the
meme of the State. and the amount
credited to the prison directors on the
Treasurer's books. If It were not thus
credited. it would appear that the money
he'd been spent for the support OF con-
yicts. as that is the only way in which
tie Denitentiarv can spend its funds.
This leads to a very interesting ques-
ticn. namely; whether or not the State
cal legally become owners of the stock
in these turnpike companies. According
TO law. the State is not permitted to take
stock in any company without special
act particularizing the stock and the
amount to be taken. These acts do not
limit the amount the State is to take.