The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-05

been considered by him for the purpose OF
submitting the best and most advantage
Gus bid to the stockholders of said road
whenever the same appeared to be the
best and highest bid, and whenever the
same was for the best interest of all con-
cerned or interested in the affairs of said
company And that among the bids so
presented to him was a bid in the name
of V f. McBee, the now temporary re-
ceiver of said road. which said bid was
published in the newspapers of the State,
and at the same time his Excellency, the
Governor of North Carolina, acting in his
capacity as chairman of the Board of In
ternal Improvements, and having at heart
the best interest of the stockholders and
of the State, published in the public press
of the State that bids would be received
by him until and including Saturday,
February 9th, 1904. and announcing IN
the press aforesaid that in his opinion
the minimum bid that should be offered
was as set out in the publications ho~o+o
fore referred to; that prior to said Feb
ruary 9th. to-wit. on the 23rd day of
February 1904, the said w. E. McBee with
drew his bid, and Immediately upon SAID
Honor Thomas r. Purnell, judge, was
appointed temporary receiver of said de-
PENDANT railroad, and is now so acting.
And il is further averred that on the
25th day of February, 1904, higher and
better bid for the lease of said road was
submitted to His Excellency, the Cover
nor of North Carolina by w. w. Mills and
H. l.. Finlayson as referred to in the aft
davit of His Excellency, and fled in this
cause and such bids and propositions for
the same are now in the hands of His
E2cellency as chairman of said Board OF
Internal improvements, and the stock
.4olders of said road have at any time,
the right and authority under the charter
and bylaws of said company to set upon
said proposals and bids, and if, in the
opinion of the private stockholders and
those whose duty it is to represent the
interest of the State of North Carolina in
said company, said bids or any of them
are to the advantage and interest OF
said company thea under the law afore-
said by vote of the majority of said pri-
vate stock and the State, said lease would
he affected. And further this defendant
AYERS that so much of said allegation as
nsinuates that the Governor of North
Carolina in his Official capacity as SUCH
or in his official capacity ex Office as
chairman Of the Board of Internal Inn
provements. whose custody and control
is the States interest in said corpora
ton, has acted oppressively arbitrarily
or in any manner inconsistent with the
best interest otBthe State or for the best
interest of the private stock. or that his
action has been prompted in any respect
from political motives. or from other than
IAN honest and conscientious desire to OBJ
tain the best price for the sdid road is
utterly false and untrue; and the truth
OF this denial is evidenced by the fact that
the last proposition of lease offered to
His Excelency is of a far better price and
would make such greater returns to both
the State and the private stockholders
than any proposal that has been offered
or made heretofore for said road.
AND this defendant further AYERS that
tie action of His Excellency in refusing
20 be driven into hasty acceptance
CT any proposition for so valuable
property is greatly admired and COM
n,ended by the private stockholders Of
this road as well as by the State, whose
interest is identical with that of the
private stock and that the action OF
His Excellency, the Governor in waiting
same to this company is insured to the
great benefit and advantage of said
stockholders both State and private.
10. That it is not true as alleged
in paragraph 10 of the bill of complaint
THAT the property OF defendant has been
diverted and perverted from its legitimate
purposes to other purposes foreign to the
object OF its creation, 10 the great hurt
and detriment OF the stockholders. 1t is
true that the defendant purchased ana
prepared the Atlantic Hotel property at
Morehead City, one Of its termini but
it is true also, that the running of said
hotel, as a seaside resort, greatly increases
the income Of defendant, said hotel be
ing situate at the eastern terminus of
the defendant, and many OF the guests
having TO ride to apd from it over the
whole line of ithe defendant, and all OF
the guests having to ride part OF the
way over the line of the defendant, and
thereby greatly increasing the passenger
traffic and revenue of the defendant cor
poration and deemed by the directors
great benefit to the road, the said hotel
being one of the most valuable and de-
sirable seaside resorts in the State. 1t is
true also that the original cost of con-
structing and finishing said hotel was
Continued on Page Four.)