The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-12
ANOTHER RECEIVER
Raleigh and CASTOR
Roads Turn Now.
Minority Stockholders Want an Ac-
counting of the Transac-
lions With the Sea-
board. .

Another railroad is now up against the
receivership problem.
This time it is the Raleigh and CASTOR
Railroad, and before Judge Brown in the
Superior Court yesterday Mr.. R. P.
Spencer and Mrs. Ida T. Spencer, his
wife, through Messrs. Busbee and Busbee
made a motion that a receiver be APP
pointed for that railroad company.
The complaint was filed in the Superior
Court in December last, and appearing
for the Raleigh and CASTOR and the Sea-
board Air Line, the defendants, are Judge
James E. Shepherd, Captain w. II. Day
and Judge t. b. Womack.
The application for receiVership Is
for the purpose of having an accounting
of the Transaction by which the Raleigh
and CASTOR was consolidated with the
Seaboard Air Line, full accounting OF
receipts, disbursements, profits, dividends,
etc. The purpose, it is understood, Is
not to have a receiver take possession of
the actual property and conduct of the
road but simply to get at the inside or
the affairs.
The case having been argued before
Judge Brown. he took the papers for
further investigation and holds the case
under Amusement He will render his de-
cision later.
In the complaint it is alleged that the
plaintiff owns seven shares of stock in
the Raleigh and CASTOR Railroad; that
the act of the Raleigh and CASTOR Rail-
road in consolidating and merging with
Rcertain other railroads under the cor
porate name of the Seaboard Air Line
Railway, was ultra wires. and beyond the
L.. L.
ton Railroad and that the plaintiffs pro-
tested against such action; that the Raj
eigh and CASTOR Railroad has preserved
its corporate identity. that since said con-
solidation there has been no meeting of
the stockholders or of the directors; that
it has not published any statement of its
receipts and disbursements and that it
has not declared any dividends; that the
Raleigh and Castor Railroad, acting
through certain officers, attempted to sell
and did sell ISIS shares of stock of the
Raleigh and CASTOR Railroad which were
held in the treasury for certain definite
purposes; that the same were not sold
for such purposes. but were sold in vio-
lation of the duties of said officers and of
the rights of the plaintiffs; that they were
sold to certain parties whose names the
plaintiffs cannot ascertain. but who were
directly interested in the organization OF
the Seaboard Air Line Railway; that they
were sold secretly without being offered
for subscription to the stockholders of
said road, including the plaintiffs, or to
the public, without any opportunity for
bidders to bid for same: but were sold
at a grossly inadequate price, and no ac-
count has ever been rendered in respect
to its sale and purchase; that the Raltigh
and CASTOR Railroad had no right to hold
stock in other corporations; that the value
of plaintiffs stock is not measured by the
present market value because 1t has none,
nor by its antecedent market value, which
is not pertinent to this controversy.
/. The judgment asked by the plaintiff
upon this showing. is as follows:
l. That the Raleigh and CASTOR Rail
road and Seaboard Air Line Railway be
required to disclose to the court When
the attempted merger mentioned in this
complaint went into effect, and what are
its terms; what relation the Raleigh and
CASTOR Railroad Company bore and now
bears to said merger; what have been
the annual receipts and disbursements OF
the said Raleigh and CASTOR Railroad
Company as 4 separate entity and IN its
distinct and separate corporate capacity,
from. January 1, 1901, to this date; what
are its net profits; what stock of other
companies has it acquired what bonds or
other companies has 1T purchased to
whom it sold said 1S25 shares of treasury
stock; when and at what price to-; what
uses or purposes the proceeds derived from
the sales of said stock was applied; what
disbursements it has mace out OF the
funds of said Raleigh and CASTOR Rail-
road or otherwise TO effect SAID merger;
who are the present. corporate officers of
the Raleigh and CASTOR Railroad Com
pany, and when and where the stock
holders of said corporation held their last
annual meeting, and what were the pro-
ceedings of such meetings. if any such
meeting was had.
9 That defendant Raleigh and CASTOR