The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-09-27

\ suit was instituted in the United
States Circuit Court yesterday which
involves the validity of $4,000 of
bonds issued by the County Of Onslow
to aid in building the Wilmington,
Onslow and East Carolina Railroad.
The suit was brought by d. H. Toll
man, of Illinois. and is entitled D. H.
Tolmap VS.. the Board of County Com
missioners of Onslow county. and E.
w. Summersill, treasurer of Onslow
county. The amount directly involved
in the suit is Sc. GAO. but OF the deci-
sion of the court rests the validity of
the entire amount of outstanding
bonds. aggregating $4,000. with in
terest from January LIST, 1904.
The suit was brought by Rountree
and Carr m is practically on the
same basis as the Stanly and Wilkes
county bond cases.
In the complaint TolnIan alleges
tina he is engaged in the buying and
selling of municipal bonds and that
the ponds in question were purchased
Ey him in good faith in the open
market without any notice whatever
tina there was any suggestion of their
being void.
The complaint covers many type
written pages aud gives a tull history
of the bond issue. The total amount
of bonds issued by the county was
100000 and h interest on these was
Iaid from the time of their issue, seven
or eight years ago, until January 1st,
1901, when payment ceased. The
complainant alleges that II amount
necessary tG pay the lnterSet on the
said bonds has been collected from the
tax payers and is in the hands of the
treasurer. He further alleges that it is
his belief that the treasurer refused to
pay h interest on count Of the
board of county commissioners of
Onslow county, who sued ont d process
of injunction in the Superior court of
said county, enjoining him from &C.
counting with holders of coupons.
I The court issued the injunction be-
cause the charter of the railroad above
named vas secured under an act
passed by the legislature Of 1885, and
it vas held that this act and the acts
amendatOry thereto were not passed in
accordance with the requirements of
the constitution ri North Carolina.
III % 11Cl Nv
does not believe he nor any OF the
other bondholders are affected by the
decree of the said state court. which
injunction was secured, so he believes,
for the purpOS OF repudiating a state
debt.
The General Assembly of North Car
olina in 1885 Incorporated the Will
mington, Onslow and East Carolina
Railroad Company, said charter allow
ing them to build a o from Whining
ton to Jacksonville and the counties
through which the road passed were au-
thorized to subscribe capital stock.
AT a special meeting of the board OF
county commissioners of Onslow coun-
ty held on the first Monday in Novem-
Der, 1883, petition presented by the
above named railroad company
ing hat they cal an election to allow
n citizens TO vote on a bond issue,
was acted upon and the late of the
election set for January oath. 1888. This
question of TIE subscription to the cap.
ital stock of 10000 bonds was voted on
and carried.
After q certain portion of the roau
had been built a demand was made by
the railroad for $50, 900 of the bonds
voted, which demand was refused.
: On the 7th of March 1903, suit was
instituted by the railroad company to
secure the payment of the bonds. II
was 4CiIiOSCu 10 LSlOIT county ana q
decision was rendered in favor of the
defendant. 1t was then carried to the Su
Preme Court of North Carolina. where
the judgment of the lower court was
reversed and a new trial ordered.
In 1895 another suit was brought to
secure the payment of the other $50, 600.
Before this suit went to trial a COM
promise was reached, the railroad COM
paDy agreeing to surrender $40, 900 CT
ttae bonds, all back interest claimed to
ibe due, to pay the costs of the suits
and the printing of the bonds. This,
at the time, being agreeable to both
parties, bonds in the sum of S40,000 were
issued, to bear s per cent interest and
10 mature in 40 years, but the county
reserved the privilege to redeem them
at n of 10 years.
The complainant alleges that the
county of OnSlow was greatly benefited
by the railroad and that the value of
real estate was greatly enhanced on
account of 1t. He contends further
tina the taxes paid by the road are
enough to meet the current obligations
attendant upon h debt.
The complainant recites that he be-
aieyes E. w. SuramerSill treasurer OF
Dnslow county, will make way with
h money, and he alleges that he be-
aieveS he is entitled to have an injunc-
tion upon said respondents against dis
posing of said sum in any other man,
ner a unto the decree of the United
States Circuit court. He further s.
that a receiver be appointed to hold
said sum as agent.
1t is further asked that a writ OF
subpoena be directed to the board OF
commissioners of Onslow county, an6
G.. w. Summersill, treasurer of saio
county, commanding them to appear or
a certain day and answer this bill Of