The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-22
a Garq0Bma Daily Papers Both evvs

amounting to twenty-five TO thirty
thousand dollars
Eleventh. That the allegations of
paragraph IL of said bill of complaint
are not true; the defendant is not in
solvent. 1t has a capital stock of
$500, 600, and it's property, includ-
ing its franchise, is worth largely
more than the amount of it's capital
stock. 1t has bonded indebtedness
of only $325,00O, and a floating debt
including current expenses, of $46,350,
less the excess of cash and bills re-
ceivable over bills payable as afore-
said It's stock in the market is easi-
ly worth fifty cents on the dollar,
which is more than it has been worth
at any time since the war. Defendant
also AYERS that the allegation in said
paragraph that the property of said
defendant has been or is being wasted,
is not true.
Twelfth. That the allegations OF
paragraph II, that the officers of
said corporation act in defiance of its
charter and bylaws, is not true; and
this defendant, further answering the
specifications III said paragraph, num-
bered from one to twelve, AYERS:
s1.) The defendant admits that said
w. II. Bagley does not appear as Il
stockholder in the presidents report
Ill iJUOs pul dG1CllbctII dNtiS that Silb-
sequent 70 his appointment as said di-
rector he duly qualified himself to be
director under the bylaws of said
company.
CD That the directors of the de-
fendant corporation met frequently,
holding the following meetings during
the years 1902, 1908, 1904, to-wit:
On March 4th, April 18th. July
Sth, September 24th, Decem-
ber 29th in 1902; on Feb
riary 10, March %, June %, Sep,
tember "a, December o. in 1903, and
on January 19, February IL, and
all such supervision and control of the
management of the affairs of the said
defendant as was practicable, that
they did keep a record of their pro-
ceedings, the same being Kept by MI.
NJ. Manly, the secretary of the COM
pany: that said record so kept is sub
(3) That the employees, station
agents and others mentioned in said
ject to the inspection of any stock
holder or person interested therein
bill have been required to make suffi-
cient reports in respect to their official
action and receipts. Whether such
reports have been technically made at
stated times or not, the defendant
has lost no money by said
station agents or employees and if said
station agents or employees have not
made their reports and accounting
with due regularity at all times, no
money has been lost. 1t is true that
small balances are due from two OF
the station agents of defendant, but
they are being gradually paid and
the defendant does not expect any loss
to result therefrom. =.
AncxUprino b-SpptiOn the
defendant AYERS that being greatly
embarrassed by reason of its inability
to secrre a regular supply of wood
for use upon its engines, the defend
ant found it advantageous TO make 2
contract with one Ives to supply 1t
with wood on certain of its racks. The
said Ives employed a number of con-
victS from the States Prison, and was
required to give security for the pay
ment of their hire. The States Pris-
on insisted upon personal guarantors
rather than the signature of the de-
fendant company as a guarantor for
the payment of the hire of said con-
yicts, thereupon the said Ives secured
personal guarantorS, and this defend
ant undertook to indemnify such per-
sonal guarantors against loss. The de-
fendant could safely do this. because
all the wood which Ives was to fur
niSh was to the defendant, and the
defendant controlled the payment of
the same. This arrangement resulted
in securing to the defendant a regular
and satisfactory supply of fuel for its
engines, and no loss has accrued to
the defendant by reason of this con-
tract to indemnify the Sureties of
Ives, nor has it lost any money ad-
vanced to the said Ives to enable him
to carry out his contract, and the
whole transaction has resulted to the
advantage of the defendant and with
out any loss whatsoever.
And further answering, said defend
ant AYERS that it has put in no side
tracks except where the same were
necessary and advantageous to the de-
fendant.
(5) That the allegations that the
President employed Charles NJ. Bus
bee as an attorney in the suit brought
by K. S. Finch against the defendant
corporation and that he paid him for
his services i'm that behalf is true That
section 6 of said bylaws, which is
quoted in said bill of complaint, shows
upon it's face that such employment
was legitimate and regular that the
provisions of said section show upon
its face that director is prohibited
from serving as an agent or attorney
in regard to claim or Othef proceed
ing against said company, and not
from doing service as an attorney in
its behalf.
(uvIcr's Stock Voted.
(6) That the provisions of sections
and of said bylaws, in respect to
the Presidents salary, were amended
at the meeting of the stockholders OF
said company held on the 26th day of
Sentember, 1901, so that the salary of
the said President was increased from
81 500 to $2,500 per annum. That at
said meeting the stock of complainant,
the said John p. Cuyler. was duly rep
resented and was voted in favor of
said amendment.
IN That the appointment of Com
mittee on Proxies in excess of seven
was done at a general meeting Of the
of said defendant; that
the same was done in the interest of
tbe defendant corporation, and for the
nr,.noeo of securing it additional buSi-
nase and increased revenue; that the
value of such additional business was
large1v more than the value of a pass
to Tho members of said proxy COM
mittee. that at the meeting of stock
boIders AT which this action was had
in rnsnoct to the increase of member
shin of the said proxy committee, the
otno1, nf the complainant was duly rep
4 IL