The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-05-31

Raleigh, y. c., May 2S.-A tempor-
ary receivership was to-day granted
by Judge Purnell in the federal court
in the case of the complaint of Guy
Ter, of New York, owner of 81 shares,
and K. S. Finch, of New York, owner
of At shares, against the Atlantic and
North Carolina railroad, two-thirds of
which belong to the state.
The first receivership, made some
months ago, with V. E. McBee as re-
ceiver was vacated by Judge Simon
ton, and to-day Thomas d. Meares.
of Wilmington, formerly the agent of
the Seaboard Air Line at Wilmington,
was named as temporary receiver.
The further hearing of the case is
set before Colonel S. G.. Ryan, of this
city, as special master to take evil
dence, which is to be completed by the
first of July, when action is to be TAX
en- as to a permanent receiver.
Judge Purnell in his order an
nounces that if the state in the mean
time has an offer to lease the road,
vacate the receivership. if he approved
the lease as a safe one.
Especial to The Messenger.)
Raleigh, n. c., May 2S.-Judge
Purneil this mrning began the hearing
of the A. and n. c. railway receiver
ship matter. At least a hundred per-
sons were in the court room, the fol-
lowing being attorneys for the state,
Attorney General Gilmer, 7. J. Jarvis,
James III. Pou, Staples Fuller and Per-
rim Busbee; for the Atlantic and
North Carolina railway, w. c. Monroe;
for complainant Cuyler, w. w. FleIn-
ing, of New York; w. H. Day, w. w.
Clark, W. c. Maxwell. T. NJ. Argo and
Elmer E. Shaffer. Ex-Judge Thomas
B. Womack was also present.
The first thing done was the reading
of the answer of the state to Cuyler'
complaint. The complaint itself was
not read, the judge saying that he had
read and considered that. Members
of the Board of Internal Improvements
were present, also the investigating
committee, President Bryan, Superin-
tendent Dill, Treasurer Manly and
ether officials of the road. V. E
McBee came in after the proceedings
began.
Complaint of Private Stockholders.
Mr.. Pou offered a number of affida-
Wits. Womack sprung a surprise by
reading affidavits from Mrs. Florence
2. Tucker. the largest private stock
holder and from Dempsey Wood, an
other large stockholder, these repre-
SeRting over sixteen hundred shares
In their complaints, ii was set forth
that the private stockholders were al
most unanimously in favor of a lease
and ready to vote for one; that the
Governor had before him several good
propositions to lease. Womack asked
for n modification of the judges or
der and for the continuance of fhe
case for sixty or ninety days, so the
stockholders can be called together ir
meeting and consider the lease propo-
Sition. Womack believed the result
would be favorable to a lease, and ot
great advantage to the state and tC
the private stockholders. The litiga
tion now in progress was injurious t
the stock. Womack said he occupied
a rather unique position, on one side
was the state with its overwhelming
stock, on the other the applicant:
who seek to throw the road into a re-
eeiver's hands.
The judge said the state was not {
party to this proceeding.
Womack asked for a modification O.
the temporary restraining order, say
ing the applicants could hardly ash
for a receiver on the ground of inSol
vency, as the taxable value Of the road
vastly exceeds all debts. He said, po
litically managed, the road was no
q success and never could be. The
gravamen Of Cuyler's bill of complain
IL that the road must be taken care
of to insure its preservation and man
aged for the benefit of the Stockhold
ers. The best way to preserve th'
property and to enhance the interes
of the stockholders is by term lease
The judge said the court did no
have the right to lease.
Womack said he did rot think tnI
question arose at all. The judge 1
sitting in chancery and has the larg
est discretion and can act to the hes
interest. that is. to helm. rather thar
to injure. The authorities of tn
road had done some things. ultri
wires, among others the purchase 9