The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-22
CUYLER IS FACED
BY HIS OWN VOTE
Every Creditor and Almost Every Private Stock.
Holder Joins With State in Opposing
Receivership.

the further allegation that the com
plalnant has been the owner of the
thlrty-SeVen shares of stock mentioned
in said bill for the past seven years.
Fourth. That the allegations con-
tained in paragraph of said bill OF
complaint are admitted to be true.
Fifth. That the allegations contain
ed in paragraph of said bill of com
plant are admitted to be true, except
that the defendant ayers that there.
after the said charter of the defendant
corporation was again amended wher
the State purchased additional stocl
therein: and it was then enacted thar
the State should have $50 votes Instead
of 300 in each meeting of the stock.
holders of the said corporation, anC
the State since then has been entitled
to vote and has cast $50 votes in saiC
meeting.
Sixth. That the allegations contain.
ed in paragraph of said bill of com.
plant are not true, except the allega-
tion that the State of North Carolina
is entitled to cast $50 votes in the
stockholders meetings of the said cor
poration; and the defendant AYERS that
the stockholders in said corporation
other than the State are, as the stock
is now held, entitled to cast 1, ,209 votes
in said stockholders meetings; but the
actual number of votes cast by said
private stockholders IN said meetings
is altogether dependant upon the
amount of stock that is actually rep
resented in any stockholders meeting
either in person or by proxy.
Seventh. That the allegations of par
agraph Z in said bill of complaint are
not true; on the contrary, this defend
ant, upon information and belief AYERS
that the chief purpose for which the
various private subscriptions, includ-
ing the subscription by counties along
the line of said road to the said stock
were, almost entirely, if not entirely
made by the said counties and by pri-
yate citizens living along it's route for
the purpose of developing and building
up that section of the State of North
Carolina through which the railroad
of the defendant runs; and that the
acquisition of the stock of said defend
ant since then by any person has been
and is for the reason that for many
years past the stock of said defendant
has been a good investment on account
of its constantly increasing value ii
the market.
Eighth. That SO much of the eighth
paragraph of said bill of complaint
as alleges that it is the duty of the
proxy of the State of North Carolina
to attend all meetings of the stock
holders of said corporation under the
provisions of section 4 of the said Acts
of 1S54-'55, is not true: on the con-
trary this defendant AYERS that the
provisions of said section confer a
privilege and do not impose an OBJ
legation upon the said States proxy
And the defendant also says that the
further allegation in said paragraph,
that the provisions of said section were
enacted for the purpose of giving the
private stockholders a controlling and
dominating influence and power in
meetings of stockholders, is not true.
on the contrary, this defendant AYERS
that the provisions of said section were
intended to apply and do only apply to
the mode in which the stock of the
State of North Carolina should be voted
at said stockholders meetings, and that
pursuant to said section the stock
holders of said company adopted a By
law, providing for the meetings of
said stockholders, which bylaw is
contained in section of the bylaws
of said defendant company, as fol-
lows:
"At least ten individual stockhold-
ers. represented either in person or by
proxy, and holding not less than ma
jority of the stock subscribed by indi-
viduals. together with the State pI oXy,
shall be necessary TO constitute quo
And therefore, the defendant AYERS
that the only provision requiring the
presence of the States proxy at the
meetings of said stockholders is the
bylaw above recited, adopted as afore-
said at a general meetin~ of the stock
holders of said company upon ma
jority vote of the private stockholders,
and is not a provision of the charter
of said company; and that said bylaw
hH-
vote of the private stockholders of sad
defendant.
Ninth. That as to paragraph of
the bill of complaint, defendant alleges
that since 1855 it has not been able
to earn revenue sufficient to take care
of it's obligations, to rebuild and main
tain its road-bed and equipment III
proper condition, and at the same
time to regularly pay dividends upon
its stapital stock. Just previous to
1855 the road was almost entirely de-
by military operations or botn
armies along its line, and in 1868 IT
was returned to the defendant in an ut
tcrly dilapidated condition and with
very heavy liabilities outstanding
against it. Since that time it has been
the purpose of the defendant to take
care of it's liabilities. including its cap
ital stock. to rebuild the road. to re-
equip it. and to maintain 1T iii safe
and proper condition to perform its
duties as a common carrier. 1t mas
accomplished all of these purposes,
ana the road is now III better /c6n1l-
uon physically and in it's power TO
earn revenue than it has ever cen
before Its receipts from freight and
passengers are larger than ever
be1ofe, and the market value Cf ;ts
stock is greater than ever before. 1t
is true that the iron along the railroad
is not of the heaviest, and that if the
largest size locomotives were riaced
upon said road. the iron would per-
haps not be sufficient for the said To-