The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-22

safely, but the locomotives now
being used by the defendant are
as large as any ever used by it, and
they are run over its rails with per-
feet safety to life and property. The
defendant has felt that it's revenues
must be expended in maintaining in
proper condition it's road-bed and
equipment and i'm meeting its obliga-
tionS before it would be permitted to
pay n dividend upon its stock. 1t
believes that the time' is not distant
when it can pay dividends regularly
upon it's capital stock, and it expects
to pay a dividend of 2 per cent dur
ing the current year, and its Board or
Directors have unanimously declared
their purpose to so do.
And further answering said para
graph, defendant says that the ex-
tract from the report of the presi-
dent of said corporation is admitted,
but the defendant AYERS that the said
statement was for the purpose of
calling the attention of the stock
holders of said defendant to the ne
ccsSity OF providing additional facili-
ties for handling the increased busi-
ness which had been rendered said
defendant and which said defendant
was called upon to provide for; that
the improvements of it's road-bed, the
purchase and construction of addi-
tional rolling stock, and the building
of additional depots and warehouses,
and for necessary improvements were
for the purpose of placing the defend
ant in a condition to operate its road
without trouble and permanently, SO
that when the payment of dividends
was begun, which as aforesaid the
said Board of Directors. at a recent
meeting decided to begin September,
1904, might be permanently con-
tinued; and that by reason Of the inn
proved condition and the increased
value of the road of the defendant and
it's increased earning capacity, many
applications have been made to the
Governor of said State for a lease of
the property of said corporation az
hereinafter set forth.
(9a). That the allegations contain
ed in paragraph Ga that the defend
ant has not money enough to pay its
current expenses, including it's pay
roll, is not true.
Answering subsection two, the de-
PENDANT admits that the statement of
debts owing by the defendant on
March 4. 1904, was substantially as al
legged in said section, but that since
that date sundry payments have been
made upon said obligations, includ-
ing taxes, and that the true and cor
pany on the 9th day of May, 1904, was
as follows:
All outstanding obligations of the
company other than the bonded debt
of $325.00C. with interest thereon to
date, was $54 4,97S.53, and was made up
of the following items:
Balance due on accounts payable,
$159.96 for 1903. and for 1904, So,
231.21; due other transportation COM
n 1.
ceivers, $163.12; pay-rolls for April
and nine days of May. $S.575. -; Got y
due Citizens Bank, s14.000.00; notes
due National Bank, 100000; Hardie
Tynes Co, $679.O0; j. j. Wolfenden,
$491.00: j. II. Hackburn, $2,OS5.00;
Acme Machine Company, $2,030.7S;
Barbee & Co, S12,0O0.00; dividends
not called for S1,799.00.
To offset a part of this there was
due the company the following items:
Due from other companies and indi-
viduaIs auditors statement, $2,-
210.75: due from agents auditors
statement). $12.100.00: cash balance
on hand S4.444.39, making $1S.75514,
leaving owing by company. other
than its bonded Indebtedness. $780,
213.39.
And the defendant further AYERS
that none of the creditors of the de-
fendant have demanded payment of
their debts. nor have any of them
evinced any uneasiness in regard
thereto, and all of them are content
ed with the present condition and Sc
curity of their claims. and also with
the present management of the affairs
of the said defendant corporation.
(3) Answering the allegations of
subsection 8 of this ~aragraph, the
defendant alleges that - notes and
debts set forth in said para graph cor
rectly represent obligations of the de-
fendant company on that date, but
the allegation in subsection that
the only available assets of the COM
pany with which to meet those and
other obligations was the sum of ST.
376.S4, is not true. On the contrary,
considerable sums of money were due
the defendant from its agents and
customers, which sums it could have
collected upon demand, and which it
would have collected Immediately had
it's own creditors insisted upon pay
ment, but the holders of the obliga-
tions of the defendant did not ask for
payment, and were and are entirely
satisfied with their security, and with
the management of the said defendant
corporation. AS to the allegation
that the defendant did not have coll
lateral upon which to borrow money,
defendant AYERS that it's credit is so
good that il does not need and has
not needed collateral upon which to
borrow money.
And further answering subsection
B, the defendant says that all of said
indebtedness therein mentioned was
considered and is included in the fl
nancial statement set out in the fore
going paragraph answering sub-sec-
tion >
cob. That the allegations of para
graph Oh. are not true. All of said
obligations were either authorized to
be entered into by the Board of Di-
rectors or ratified after they had been
executed. The recital in said para
graph of certain of the bylaws of
said company is admitted TO be cor
rect, but said bylaws so recited do
not set out in full the authority pos
sessed by the president and other Off
GERS OF said defendant.
Tenth. That the allegations of
paragraph 10 of said bin of complaint
are not true, and the defendant AYERS
that the following is a true state
ment of the condition of the company
on May 9th, 1904.
Bonded debt. S325, 900 90
Indebtedness other than
bonded debt. t......... 54,96S53