The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-06-08
THE "NIGGER IN THE WOOD-PILE."

! gritty rendered such precaution unne-
cessary; but the Judge had, perhaps,
in his mind, at the time, the proba-
bility of additions to the receiver force
in the future.
| Some of these theories have no
| foundation, others are faulty and
doubtful, but their recital brings vivid
| iy to mind ia prophecy made to The
News and Observer Immediately after
the institution of the second, or Guy
Ter, suit, which was in substance as
follows:
First. A receiver, perhaps the de-
throned McBee will be appointed by
Judge Purnell at the hearing of the
| answer to the rule to show cause, etc,
as surely as anything will happen that
has been predestinated or fore-or-
dained.
Second. The receiver will issue GER
tificates of Indebtedness for the pur-
chase of equipment, heavier rails,
cross-ties, ballasting and other better
ments, to the amount of two or three
allowances will be made to the receiv-
err or receivers for services, attorneys
fees. etc.
Third. The road will not be leased
by the court, but decree. of sale will
be finally entered and the proceeds
of the sale will be paid into court. 1t
will bring, say, $1,300,OO0, which will
suffice to pay off the receivers certi-
ficates, the mortgage and other in
debtedness and leave a surplus, say,
of $750,o00 for distribution among the
stockholders as stock dividend in
liquidation. The State of North Caro-
lima owning two-thirds of the stock
of the company will be entitled to
two-thirds of the surplus, or, say,
100000.
1t will be remembered and noted
that the State of North Carolina, when
it subscribed for the $1,260,000 of
stock of the company, issued an equal
amount of bonds of the State in pay
ment and the Act of the General AS
sembly authorizing such subscription
and issue gave a direct and unequi-
vocal lien or mortgage upon the States
stock in favor of the bonds. Those
bonds of the State were provided for in
the adjustment act of 1879 at 25 per
cent of their face and all have been
compromised and surrendered except
$4,000, which are yet outstanding
with about 40 years interest accrued,
making the whole debt about $780,
600.
Fourth. Now when the proceeds of
the sale of the road shall have been
paid into court and the fund is ready
for distribution, the "nigger in the
woodpile' will jump out in full view
and divesting himself of his disguise
and opening his carpet bag will be
recognized as the holder of the $780,
900 of bonds which have been out
standing so long. Stepping into court
and making himself a party TO the
Cuyler suit he will say: May it
please your Honor: So much of that
surplus as belongs TO the State of
North Carolina as a dividend. in liqui-
dation, upon it's stock. is mine to
the extent of these bonds l hold in
my hand and interest thereon by rea-
son of the lien given by the legisla
ture of 1S54-1S55 upon such stock in
favor of such bonds. Give it to mel"
Then, unless some one speaks out
for the States claim upon the fund,
the bondholder will have a decree in
his favor; if the State wants to in
tervene in order to claim the money
she must ask to be made a party and
thereby and ipso facto she consents
to be sued and to abide by the de-
cree of the court, and as she cannot
decree will be against her and in ia
vor of the bondholder who will get all
of the surplus going to the State to
the extent of his bonds and interest
which will about "clean the platter.
Fifth AS The News and Observer
has been Zion in the path" and will
continue to roar out against the
schemers unless it's voice is silenced,
some plan will be devised to set rid
of so valiant a guardian of the peril
Gus path.
So. spoke the seer. If his prophecy
be reasonable and true, we can easily
surmise who and what influences are
behind the Observation-Disclosures suits.
1t will be remembered in this con-
nection that Judge Purnell when rem
dering his decree of the 2Sth of May,
appointing receiver, stated empha-
tically that the court had no power
to lease the road, and, while gracious
ly permitting the stockholders to meet,
talk over and decide upon a lease if
they wanted to, he stated that any
proposed lease should be submitted to
the court for it's approval. He no
doubt knew, or should have known or
suspected, that Governor Aycock
would not, with the sovereignty of his
State manacIed and in chains submit
any lease for the Federal courts APP
proval.
Receiverships contain so much
/ hot ho fioe