The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-03-01

~ Buffalo, N. 7.
stockholders the general public has
nothing to do, though it is the under
standing that a large majority Of them
desire that the road be leased or sold.
in order that they may realize some
thing On their investment: but the
state being b owner of two-thirds OF
the stock, The operation or disposition
of the property is everybOdy'S busl-
ness. Under conditions as they have
existed up to this time. its future is
hopeless. By universal testimony its
management by President James A.
Bryan under the circumstances VITA
which he has a to contend. could
hardly have been improved upon; yet
in his last annual report he stated that
the road faces a crisis-that it has a
bonded debt of 1926, 900, a floating debt
Of $50, 900. needs locomotive and rolling
stock OF the value of $3.50, 600, not to
speak of fifty miles of e0-pound rails.
and that it only exists by the mercy
Of the southern railway and the At
lantic Coast Lin which could tie it
up in a week and bankrupt 1t in less
than six months. 1t would seem to be
folly. in the face of this exhibit, made
| by its own president, to hold on to this
hopeless incumbrance. Captain Nc
Bee last week made an offer to lease
il for a term of seventy-five years at
figures which meant about 5 per cent.
| for the average period, to give so cents
| of the par value of the stock which
| might be for sale, and to build a
| branch line of fifty miles, increasing
| by that much the development of the
state and bringing this much more
railroad mileage in for taxation. II is
the states duty to get as much more
| than this as possible for this property,
/ but this was a most excellent offer.
Considering not only the roads unpro-
d~uctiveness but that it is in a state Of
| decay, n a business man of
ly good judgment if consulted upon il
would probably say that If it could not
nave been raised it would have been
well to accept 1t. Captain Finch al
leges in his complaint that under a
4 favorable contract of ease. such as
| heretofore has been offered" the state
would receive an annual average in
| come of very nearly $4,000 upon it's
stock in this road, and this is surely
| worth while"
| The News and Observer takes the
| other side in a lengthy editorial. 1t
severely criticises Judge Purnell for
granting the petition Of Mr.. Finch and
especially for choosing Mr.. McBee as
the receiver. The editor goes into a
legal argument to show that Judge
Purnell violated all law and precedents
In his action.
Here is how the News and Observer
opens VI on the case:
ELSEWHERE we print the order o-
Judge Purnell. Of the federal court,
| putting the Atlantic and North Caro-
II linn roi1r0ol in tho ho rIc - n roaaixy
Grand in the hands of a man who has
been in Raleigh over a week trying 20
| Induce the governor to lease the road
| to him at a rental of about 3 per cent.
| His offer is evidence that the road is
not bankrupt, n h application for
the receiverShip states nothing that
| justiies the ~unwarranted and indefeR-
l sible act of the federal judge.
There is not a single creditor de-
handing this action and not a single
/ bona fde stockholder. The man. FincH
upon who's application a receiver was
| appointed, did not own a dollars worth
OF stock in September, 1908. and has
evidently come into possession Of a
little stock recently for the purpose of
qualifying to wreck the valuable prop
erty. Or to injure it's prospect of pay
ing a dividend. In 10 real sense is he
a stakeholder. enough aggrieved to
| bring such a suit. for his ownership
/ OF STOCK Is TOO recent to warrant his
right to throw the property into the
| hands of a receiver.
The action of Judge PurnelI is de-
| serving of the severest criticism. II
any minority stockholder in any cor
| poration may throw his company into
| the hands of a receiver without notice
and hearing. then the laws of property
| rights are annulled and a federal
| judge can deprive nine-tenths of the
owners of any corporation of the con-
troll of their property, n this may he
| done by some designing person who
| buys a few shares Of stool for thu.
very purpose! This destroys the very
foundation of safety and confidence in
all corporations. 1t not only works
a hardship, u Judge PurnelI's action
Is in conflict with the Jaw and the au-
thorities.'
The editor Of the News and Observer
does not himself advocate resistance
to he judges order by the state au-
.thorities. but he evidently has on his
war paint and is ready to aid the gov
ernor and the state troops in-forcibly
ejectino the appointee of the fedora!
ourt from the receivership. He
uotes without comment a~''prominent
2aleigh lawyer" who advocates the
agcyernor's driving back McBee with