The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-01
Spirit of the Press.
A HIGH HANDED AND REPREHEN-
SIBLE PROCEEDING.

Charlotte News.
The News has forborne comment upon
the extraordinary proceedings by which
the Atlantic and North Carolina railroad
has been thrown into the hands Of a
receiver, until all the facts were in. The
facts seem now to be in.
The Atlantic and North Carolina rail
road is a corporation, the State of North
Carolina owing 1865 shares out of a
total of 1872. The road has not been
paying property of late years, and Is
now in a condition when the stockhold-
ers will have to make quite an additional
outlay of capital in order to put the road
| in proper shape. The State heard with
| pleasure the other day of an offer to
lease the road, made by Capt. " E. Me
Bee, it was thought in the interests OF
| the Norfolk and Southern, now owned
by the Vanderbilts. The offer virtually
put the valuation of the road at $780,
900, counting 3 per cent on that sum as
the amount offered for the lease. Governor
Aycock was considering this and another
bid for the lease of the road, when the
people were startled to learn that this
same Captain McBee had been appointed
receiver of the road on the order OF
Judge Purnell, of the United States Court,
on the complaint of Mr.. K. S. Finch,
of New York city.
The facts are that Mr. Finch did not
| own a dollar of the stock OF the road
| in September, 1908 Evidently the pur-
chase of the stock was for the purpose
of making trouble.
Captain McBee, erstwhile bidder for
the road, now receiver of the road, with
his attorney, Mr.. Hinsdale, fixed up
| the papers at midnight, in Raleigh, got
| the papers before the Clerk of the Fed
eral Court, the same night and went on
to Norfolk at 1920 a m. where Judge
Purneil most agreeably granted the ap-
plication for the receiycrship, without
hearing to the other side, without
any notice to the principal stockholder
| that the receiver6hip had been asked
fer. and appointed the redCubtablc Capt.
McBee receiver of the road he has been
trying to lease. himself d nonresident
and not living within the jurisdiction
OF the court.
Whatever the fate Of the rcceivership
question IN this particular matter, the
action OF Judge Purnell has given cause
for the Sravest alarm to every corpora
rion III the State. Ii a disgruntlod stock
holder, o. one with an axe to grind, can
fix" any corporation in which he owns
stock that may have been purchased for
the purpose, and without q hearing can
have the corporation thrown into the
hands OF a receiver, then there is no
safety for any of them. 1t is this sort
of thing that has made the Federal
Courts in the South feared and hated, for
their unjust uSurpation of power The
Governor has the sympathy OF every pa
triotic North Carolinian in resisting
such tyranny to the utmost. Some have
gone so far as to advise that he resist
the turning over of the effects of the
railroad to this hostile receiver under
this seemingly unlawful order. All that
can be done will be done to preserve the
States property. But this proceeding is
an invasion not only OF the rights OF
the State, but of the rights of every corr
poration doing business under the laws
OF the State. 1t is time something were
being done to check this sort Of thing.