The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-03
NOTHING TO STAND UPON.

CdrOUna hdlITOau we're " ouhiA0 "N0iJ
allegation contained in Finch's complaint,
the fact would still remain that no suffi-
Gent case has been made out to warrant
the APPOINTMENT of a receiver for the
property. The truth is that the property
today is in better physical condition than
it has been, since at least 1894. its earn
ings are larger than in its history. more
money has been spent in permanent i'm
provements and in betterments during the
past four years than in any previous
years, the value of the property is so
well established that three syndicates
wish to lease it. and it has no single
creditor or stockholder who asks for a
receiver except Finch. who does not
legally own a dollar of stock
We hear much talk about the rights of
private stockholders by the railroad or
gans, but except Finch, who bought or
bargained for the stock to help McBee
get the receivership, not a single stock
holder has been found who approves put
ting the road into the hands Of a receiver.
If there are any, we demand that the
railroad organs print their names with the
amount of stock owned by them. There
are nearly 1900 shares. Four fifths are
known to be opposed to PurnelPs order,
and it is believed nearly all the balance
stand against it. 1t is even stated that
Finch does not own the stock he says he
owned. but borrowed it for the present
purpose, has not paid for it. and cannot
have it transferred on the books.
Finch makes much of the fact that
Governor Aycock said the States proxy
would not attend a meeting of the stock
holders if they tried to use their power
to make lease he did not approve. II
he should do this, he would be doing moth
ing but following a good precedent. In
1881, when a majority of the private
wished to lease to the Will
mington and Weldon, Governor Jarvis or
dered the State proxy to withdraw from
the meeting and the lease was defeated.
In order to induce individuals to take
stock in the road when it was built. the
charter gave the minority stakeholder
largely disproportionate voice in the man
agement of the road, but it was expressly
provided in the bylaws that no lease
could be effected without the consent OF
the State. Why? At that time the idea
was for the State to have a great system
from Morehead to Murphy. The State was
willing to give the private stockholders
great powers in the actual running of the
road, but was unwilling to permit them
to effect lease that might destroy the
through State system. The private stock
holders saw that the State was right in
demanding the controlling voice in any
lease and joined in making that bylaw
The question of the wisdom of the lease
has nothing to do with the matter of the
putting of the road in the
hands of a receiver. The best thing that
could happen would be a lease made in
the right way to suitable parties. But
there is no need to rush into it. One year
ago the highest rental offered for lease
was IL per cent. Now the Governor has
an offer for a fifty year lease, beginning
with 8 per cent and ending with per
cent Does it look like the road is bank
rupt when such offers are made for the
property?
No matter from what standpoint the |
matter is considered, every thoughtful and
we'll informed man. not biased, must see
hat the receivership has nothing to stand |
upon. 1t was a grievous wrong to the |
owners of the property. an unjust reflec-
ion upon the State authorities and the |
managers of the road. and a dangerous
Ind unwise exercise of judicial power.
Judge Simonton will hear the motion to
discharge the receiver and restore the
property to its owners on the 10th Of |
darch. When he and Judge Purnell see
he imposition that was practised upon
Judge Purnell in Norfolk, their plain duty
will be to dismiss Finch's application and
impose all the costs upon him.
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