The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-05
Finch's Charges
Are Unfounded.
CONTINUED from Page one.)

mere than $35 per share ana that none
was ever sold for more than $S0 per
share up to within the last lew months.
and that prior thereto said stock sold
az low as 81 per share, and that much
of the stock now held by present owners
OF stock in said company was purchased
for less than $40 per share. And upon
Information and belief defendant further
AYERS that if the complainant has in his
uossession any of the stock OF said COM
rany. that the same has been assigned
to him at OF about the time of the COM
Increment of this suit and for the pur-
pose of instituting this suit and for the
further purpose of giving to this court
jurisdiction which it would not other
wise have had. And furthermore, defend
aat AYERS that if the causes of action set
out in the bill of complaint exist at all,
which defendant denies, the same existed
long prior to the alleged acquisition OF
stock by the complainant.
4. That the allegations contained in the
fourth paragraph of the bill of complaint
arc admitted.
5. That the allegations contained in the
fifth paragraph of the bill of complaint
are admitted, except that the defendant
ayers that at the date mentioned in said
charter of the defendant corporation was
again amended when the State purchased
additional stock therein, and it was then
enacted that the State should have $50
We ties instead of 300 In each meeting of
the stockholders of said corporation, and
tie State since then has. been entitled
to and has cast $50 votes in said meet
ings.
a l.
legations contained in paragraph six OF
the bill of complaint are not true; on
: the contrary defendant AYERS that under
ths provisions of the charter of said
company, as hereinbefore alleged. the
State of North Carolina is entitled to
cast $50 votes in the stockholders meet
ings of said corporation and that the
stockholders of other than the said State
are, as the stock is now held. entitled
to cast 1900 votes in said stockholders
meetings; but the actual NUMBER OF votes
cast by the private stockholders in said
meetings is dependent upon the amount
of stock that is actually represented at
any meeting either in person or by
proxy.
Z. That the allegations of paragraph
seven OF said bill of complaint are not
true, OIL the contrary, this defendant
upon information and belief AYERS that
the chief purpose for which the various
private subscriptions to the said stock
were almost entirely, il not entirely made
by the counties interested in the con-
struction of said road, and private citi-
Gems living along its route, and also for
the purpose of developing and building
up that section of the State of North
Carolina through which said road runs;
and that the acquisition of stock since
then by any person has been and is for
the reason that for many years PAST the
stock of said road has been good in
tstment ON account of its constantly
increasing value in the market
s. That so much OF the averments as
are contained in the eighth paragraph
of said complaint as follows: THAT the
State of North Carolina, as a stakeholder
under the provisions of the said section
four of the Acts of the General Assembly
OF 1S54-55, Is obliged to be present at
all OF the meetings of the said defendant
corporation, and to this end it is es-
pecially provided by section four of the
Acts 1886. is denied. That the rest
is not true. That the remainder of said
paragraph is admitted. And further an
swering said paragraph defendant says
that the provisions of said section Of
said charter were intended to apply and
did apply only to the mode and manner
in which the stock of the State OF North
Carolina should be voted at the meet
ings of said railroad, and that pursuant
to, said provision of said charter the
stockholders of said company adopted a
bylaw providing for the meetings of said
company and for a quorum at such meet
ipgs, as set forth in section three of
the bylaws of said company. which is
as follows: Section 3. AT least ten in
Giv;dual stockholders, represented either
IL person or by proxy and holding not
less than a majority of the stock sub
scribed by individuals, together with the
State proxy, shall be necessary to con.
stitute a quorum for the transaction of
business. Therefore defendants aver
that the only provision requiring the
presence of the States proxy at the meet
ings of said company is the by law above
recited, adopted as aforesaid at a gen
eral meeting of said company upon
majority vote OF the private stockholders
OF said corporation and is not q pro
vision of the charter of said company
and that the same is subject to repeal
by vote of the private stockholders of
said corporation,
8. That it is not true, as alleged i'll
q paragraph nine of said bill of complaint.
that the management of the defendant
corporation since 1860 has been such as
has not produced sufficient revenue to
declare a dividend, except in very few in
stances; on the contrary, defendant
AYERS that for several years past the
said road has produced revenue entirely
sufficient to declare dividend, but the
said net profits of the defendant have
been by the action of its Board of Direc-
tors applied TO the Improvement Of it's
right OF way. SO that the same is now
as good as any road in the State and
much better than many of them. and TO
the improvement of its rolling stock.
shops, depots, bridges and other equip
ment. And defendant AYERS that this will
fully appear by reference to the reports
OF the President of said road. his re-
port for the year 1900 showing net profits
OF $62, 113.43 and for 1901 $8S, 50973, which,
according to the report of the President
of said corporation. but for the extra
ordinary expenses necessary for the pre-
v;ouS wear tn mt thA road in !, ,,.oro