The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-22

par Ndlue Oh the capital stock thereof.
For the next ten years 1 Il per cent
! per annum on the same, and for the
remaining twenty-four years per
cent per annum on the same" 1t is
also proposed to pay the floating debt
and the interest on the bonded debt.
On February 25th, 1904, a PROPOSE
! ton to lease the property for fifty
years was submitted, which offered
TO pay off the present floating Jebt
of the road.
! To pay interest on the bonded debt
!, of 1926, 900,
/ To pay for the maintenance Of the
organization of the Atlantic & North
/ Carolina Railroad Company not to eX-
coed $1,000 per annum.
To pay on the capital stock out
standing
Three per cent for the first fifteen
years.
/ -Four per cent for the next ten year.
Five per cent for the next ten years.
| Seven per cent for the remaining
fifteen years.
To build within ten years fifty miles
Of additional railroad, connecting with
the Atlantic & North Carolina Rail
road"
That there are two other PROPOSE
tons pending before the Governor
which contain a higher rate of rental
but do not contain a provision for
, building additional road. These propo-
sitions, however, have recently been
made and are SO far tentative and in
complete.
! The defendant AYERS on information
! and belief that the Governor stands
ready to direct his proxy to vote for
! the foregoing proposition if it be ac-
ceptable to the private stockholders,
upon the parties making it giving ade-
quate security for the faithful perfor-
/ nance of its conditions, unless in the
meantime a better proposition shall
/ be made and amply guaranteed. And
! the defendant further AYERS that while
/ the defendant company, its officers
and the Governor of the State deplore
/ this continued litigation and persistent
effort to take the property out OF the
| control Cf the company and place 1t In
the hands of a receiver, it Will not
| have the effect to drive them into
making a hasty or ill-adVised lease of
F, this valuable property.
And answering the allegations of
F, this paragraph, defendant says that IL
is admitted that President Washing
ton Bryan made the report as therein
! alleged 1t may be true as an abstract
proposition, other things being equal,
that a company in which all the stock
is owned by private individuals may
be more successfully operated than
one in which the State owns a part of
/
part, but the fact remains that this
complainant ought not to be heard TO
complain of this condition because he
voluntarily became a stakeholder in
company of the latter kind.
Nineteenth. That answering the
nineteenth paragraph, defendant says
| that since President Washington Bry-
an made said report that this road
has continued to be operated by the
same company, composed as it was
then of stockholders, including the
State, and that its earnings have stead
lily increased. In 1886, the year he
made the report, the earnings were
. S117,O3S.09. For the fiscal year end
ing September, 1903, they were $3O4,-
107.59.
Twentieth Answering the allega-
tons contained in the twentieth para
graph, the defendant says that the
same are untrue. That the only time
this proxy has failed to attend a meet
ing of the stockholders has hereinbe-
fore been fully explained, and it is
averred that his conduct in this regard
has been for the benefit of the COM
plainant, the other private stockhold-
ers. and has been and is now approved
by a large majority of the private
stockholders.
Twenty-frst That the allegations of
paragraph II are not true. NO inter-
nal dissensions exist among the stock
holders of said defendant or between
the said stockholders and the State at
this time; that there has never been
!. any serious disagreement between n
of the stockholders of the said de-
PENDANT. except one stockholdeT hold
ing forty-seven shares of stock, who
bought the same for the purpose of
; bringing suit against the defendant,
never having heretofore had any in
terest whatever in the said corpora
/; ton. That in answer to the Allegation
of internal dissension and the proba-
BILE wasting of the assets of the de-
PENDANT the said stockholder was com
PEELED to pay par for his forty-se zen
shares in order to become sock
holder in said defendant. That so fer
as defendant is informed and believes.
, the said stockholders of SAID company
are substantially unanimous in their
desire to have the temporary injunc-
ton granted in this cause vacated and
. a motion for receiver denied, the bill
dissolved and an advantageous lease
, of the property executed.
) Management Good.
Twenty-Second. That as to para
| graph % of the bin of complaint, de-
PENDANT AYERS that the present man
| agement of the road is efficient and
that good railroad methods are in
force. and that there is proper appli-
I | cation of it's income. mat the IN
come is applied TO the work of improV-
ing the track and rOad-bed, its ware
houses and structures to meeting its
fixed charges and interest, and that q
| dividend to all the stockholders, in
| Guiding the complainant, is confidently
| expected to be paid during this year.
That as to the second subsection OF
this paragraph, defendant ayers that
the present management OF the road
is prudent. economical, and mira wires.
and that the lives and property OF per
sons using this corporation as COM
| mon carrier are adequately and suf-
ficiently guarded; that no serious
accident to life or property has oc-
Cured during the management OF the
said road by the president and other
officers and employees now engaged in
operating the same.
Twenty-Third. That in answer to
paragraph %, the defendant admits
that It purchased the said hotel prop
ertv at Morehead City, but denies that
such purchase was ultra wires; that
the purchase of said property was de-
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