The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-05
Finch's Charges
Are Unfounded
Continued from Page Three.)

| it permanently. 1t is also true that the
Gov ernor appoints eight of the twelve
directors OF the defendant, and that the
Iprivate stockholders have majority OF
the votes in a meeting of the stockholders
under the legislative plan of organization.
| Il is not true that any effort to defeat
the right of the private stockholders In
this regard by breaking a quorum as has
been frequently done in the past, and is
threatened in the future, is a fraud on
complainant and other private stockhold-
e"s, but Is a legitimate exercise of powers
conferred on the State by the laws Of
the defendant corporation.
20. In answer to the twentieth para
graph of the complaint the defendant
AYERS that upon information and belief
| the object of complainant in instituting
this action is not to protect the property
of himself and other stockholders as
alleged, but the said X s. Finch obtained
as aforesaid, a transfer of said As shares
of stock in order TO enable him to seek
| the jurisdiction of a Federal Court. And
| the defendant further AYERS that upon
the face of said complaint it appears,
ana he verify believes that the action OF
said complainant is not bona fide and for
| the purpose of protecting the interest of
said private stockholders or of himself,
| for that the costs and expenses of this
litigation will be great and the burden
Thereof must be borne, if said action is
sustained. by said stockholders Of said
corporation, and sums and amounts taxed
| in costs and expenses must be derived
| from the treasury of SAID company, and
| from, the assets of said railroad TO the
loss and detrment of said road and it's
1
mGnt for the reason that upon informa-
ton and belief the said complainant has
come into. the State and made himself
member of this company unsolicited ard
unsCught by any stockholder of said COM
pany, and voluntarily possessed himself
| OF the stock of a company which he
AYERS is in a ruinous condition and as
being operated to the great dctriment
ana disaster to the stockholders of said
company, and if the said complainant
was in good faith in the averments OF
his said bill. he would not have invested
his money in a company Or corporation
under the circumstances existing as al
| legged, but if in good faith he believes
the averments of his bill, he could not
have been induced to have made himself
member of a corporation whose af
fairs were in so deplorable a condition
as to presage disaster and loss to its
stockholders. And your defendant fur
tber ayers on behalf of said corporation
THAT it's private stockholders most Of
whom are residents of the State of North
| Carolina, and who have been the bona
fide owners of their stock for many years,
are fully able to protect their own inter
ests in the said company without the aid
| of a nonresident, who, in the opinion of
.sEls defendant has officiously entered the
| State of North Carolian and intruded
| himself into the affairs Of this company,
with the alleged purpose for the interests
of the stockholders of said road, many of
| whom had owned said stock for many
| years prior to the birth of complainant,
and all of whom resent the action of the
said X. S. Finch professedly in their be-
half, and respectfully submit to the court
that they did not ask, seek or require
the Intervention of any individual in their
behalf or to protect their rights. The de-
PENDANT further AYERS that the president
of this company, into whose hands said
road was placed during the year 1899,
prior to the election of His Excellency,
Charles B. Aycock, Governor, ex-officio
Chairman of the Board ofeInternal I'M
scientiously and to the best of his ability
conducted and operated said railroad, and
that upon the election of His Excellency
as aforesaid, and by virtue of his author
ity as Chairman of the Board of Internal
Improvements, he caused q committee OF
accountants and expert business men to
be appointed with view of examining
into the affairs of the said railroad com
pany, and upon such examination, and OF
the report of said accountants and expert
business men, the Board Of Internal I'm
provements were so strongly impressed
with the excellent business management
and conduct of said affairs of corporation,
that the president of this railroad was
appointed by the said board under the
charter of said road, and since his APP
pointment has so operated and conducted
as to place this road, rolling stock, road
bed, and traffic in. better condition than
the same has ever been during the lie
of said road, and so much so that the said
road is now looked upon by men OF best
business judgment as a magnificent IN
vestment for capital, and the same, as
hereinbefore recited, has been sought by
various corporations and individuals as
property to be coveted, and notWlth-
standing the charge of its political man
agement, the same is considered a val
liable investment by bona tide proposerS
at rentals, averaging upon the entire cap
ital stock sum of about per cent net
dividend, which, in the opinion Oh de-
PENDANT, could not be procured fof salo
road in the condition as alleged IN Ihe
complaint were the same a property
which should be administered under the
control and supervision of <ourt.
And having thus fully demurred ana an
swered said bill, this defendant respect
fully prays to be hence dismissed WIN
costs.
United States of America, Eastern
District OF North Carolina, in the CT
| cult Court.
ROBERT D. GILMER.
Attorney General.
w. c. MUNROE
| A. D. WARD.