The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-08-31
Mr.. B. C. Beckwith De-
tends State Control.
TRUSTEES FOR PEOPLE
The Board of Internal Improvements,
Says He, Was Appointed to Man
age Property of The State
and Has No Power to
Dispose of 1t.

Mr.. b. G. Beckwith, one of the mem
bers of the Board of Internal Improve
ments, who has been known to be op-
posed to a lease of the Atlantic and
North Carolina Railroad. was seen yes.
terday and asked for a statement Of
the grounds upon which he relied in
his opposition to lease at this time.
Mr.. Beckwith, you are said to be
against a lease of the road; may j
ask your reasons?"
In reply Mr.. Beckwith said, in part:
Yes, l am opposed to a lease. be-
cause L believe it would be contrary
to law ropuGnant to the policy of
the State and prejudlcial to her in
terest | am one of three members
of the Board of Internal Improve
ments-the Governor, eX-officio, presi\
dent, and b. w. Ballard. of FranklirL-
ton, being the other two. The law
places the States interest in the At
Iantic and North Carolina Railroad
which is two-thirds of the capital
stock, in our charge. We are trus-
tees of the States interest. 1t is thu
duty of this board to look after and
protect the States interest in thL
property. 1t is my duty to obey thu
spirit and the letter of the LAW.
believe that lease of the road would
be contrary to the spirit and letter of
the iaw-that the law does not author
ize a lease of this property by us, or
the States proxy, our agent and the
private stockholders. / know a leass
would be repugnant to the policy OF
the State relative to this property, ana
prejudicial to its interest. even If the
Board of Internal Improvements has
the power. I believe that the Genera
Assembly should pass on the question;
of lease or no lease and not the stocl!s
holders and the Board Of Internal I'M
provements
1.-THE advocates of a lease argue thai |
under the farm out section of the |
charter the company and the state. |
j. e. the States proxy, have the power
TO lease. But it is clear. and not dis |
puted by them, that without a power |
to that effect in tho charter rail-
road company can not make volur-
tary sale. lease or mortgage any mora
than il can do an insurance or bank |
ing business or deal in stocks, be- |
cause corporation is an artificial be-
ing having those powers only which |
are expressly conferred ucon it, Or |
which are incidental to its existence.
and to sell or lease constitute no part |
of the object of it's creation and are |
not essential to its existence.
THE lower to lease. therefore, be- |
ing foreign to the object of the crea-
Atlantic and North Carolina Railroad
Company must be shown by an ex-
press and unequivocal grant in the
charter, and that can't be done.
THE power to lease is not essential
to the purpose of its creation and
therefore, Section 18 of the charter,
which reads as follows:
THAT the said company may when
they see proper farm out the right Of
TRANSPORTATION over said railroad sub
iect to the rules above mentioned
which are That said company shall
have exclusive right of conveying or
transporting persons, goods, merchan-
disc and produce over the said rail-
road. to be by them constructed, a.
such charge as may be fixed on by n
majority Of the directors is not such
an express and unequivocal comforting,
of power to lease as would authorize
a valid lease by the stockholders and
the States proxy or the Board of In
ternal Improvements.
But for the sake of the argumert
let us grant that the stockholders anu
the State. e., the Board of Internal
improvements and its agent or proxy,
can make a valid lease; that it. that
the power lies in the Board of Internal
improvements jointly with the private
stockholders to execute a lease. Yet, a
lease of the road would be repugnant
10 the spirit of the law and contrary
to the policy of the State relative g
this property, and preiudcialS to the
Interest of the people, as | see it. And
that the spirit of the law and the pol7d
icy of the State are against lease Is
clearly shown by reference to Section
! of the charter to Chapter 122. Laws
of 1897. as amended by the Demo-
cratic Legislature of 1899 and the re-
enactment of Chapter So of the Code OF
North Carolina.
Chapter 122. Laws of 1897, is
headed AN Act to restore to the
Gtate of North Carolina the control ana
management of the Atlantic and North
Carolina Railroad and the body of the
act is as strong of that purpose ds
language can make it. And Section
1891. of Chapter 80 of the Code, which
was re-enacted by the Legislature OF
1901, reads: The Board Gnternal
improvements shall have charge OF
the States interest in all railroads
canals and other works of internal inn
provements, and also all public build
ings which are the property of the
.;tate.' And Section 1892 of said chap
ter. reads: The board shall
keep a record of. and re-
port to the General Assembly
the condition of all public buildings
and institutions in their charge, the
condition of all railroads in which the
state has an interest, the character OF
the States interest, financial condi-
ton, amount and market value of the
stocks, receipts. etc, the amount of
real and personal property of such
corporation. its estimated value; and
to make such suggestions with regard
to the States interest in the same as
To them may seem warranted by the
status of the corporation" And ito
recommend such legislation as they
may deem expedicnt in regard to any
or all of the above Matters
This indicates to me- that as a
lease is not essential to it's existence or
management, it is our duty to submit
the propositions to lease the road r.
the General Assembly for its consider
alton. with such recommendations
thereon as we may deem for the best
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