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


of the company's bylaws, for the rea-
son that both of these bylaws were
i'm effect amended at the stockholders
meeting in September, 1901. The re-
cord shows that at that meeting the
following resolution is offered by l..
Harvey and unanimously adopted,
to-wit: Resolved that the salary
of the President be increased
to $4,000 per annum from and after
this date
The record at said meeting also
reads: ''The following are placed in
nomination by Dempsey Wood as Il
Proxy Committee, to-wit: H. r. Bry-
an, Jr., George Dees, w. b. Blades
Mark Disosway, j. F. Taylor, E. b.
blackburn, n. w. Taylor, S. c. Suggs,
ID. Oettinger, w. l.. Arendell, w. L..
Kennedy, DR.. Boyette, tieo.ge n. Ives,
Z. w. Rosenthal, d. V. Dixon, y. w.
Mewborne, NJ. NJ. Marks, John Forlow,
c. T. Watson, T. c. Hyman, Z. II.
Meadows K. r. Jones, Simeon Woo
ten, George Sumrell, j. w. Potter
Joseph Baxter and Charles Dewey
That the total stock vote at said
meeting, including the vote of the
State, was 1853 votes; that Of this vote
the States proxy was entitled to cast
$50 votes and the private StoCkh Did
ers lib votes; that each OF said per-
sons received 1863 votes that being
the total stock vote at said meeting;
that the stock of the complainant was
represented at said meeting and was
voted with the other private stock
holders for the increase OF the Dresi-
dents salary, and for this increase in
the number of persons on the proxy
committee, and he ought not to be al
lowed to complain of his own action;
that in subsequent meetings of the
stockholders a few other names were
added TO the proxy committee, but it
was always done by the stockholders
in meeting assembled, and this COM
plainant's stock was voted therefor.
(S) That in respect to the appoint
ment of said increased proxy CON-
mittee as hereinbefore stated, the
same was done in the interest of an
increased revenue for thu defendant,
and that the action of the stockholders
i'm so increasing said proxy committee
operated as an amendment to said by
law, and the stock of said complain :
ant was voted in favor thereof
(10) That in resoect to the ap-
pointment OF local counsel as alleged,
the same was done in the interest Of
said corporation.
(11.) That the allegation that mile
age books were issued by sdi1 defenG-
ant and are unaccounted for is not
true. On the contrary. defendant
AYERS that every mileage book isSGed
by it and not now on hand was sold
for value, and all OF them have oCcn
accounted for; that none We're given
away or delivered to any person with
out due consideration; that seventy
five mileage cards were printed for
the use of the defendant and were
used by it from time II time i'm the
inf f,fi re al f ffHn
cards was good for 500 mnes of ;ravel
on the road of the said defendant, and
OF the seventy-five printed - above.
not more than ten o. twelve HG re
used by the defendant.
As to the Oil.
(12.) That the allegation that any
contract in respect to oil was executed
by the corporation of its officers or
agents for the purpose of favoring the
National Oil Company IS not true. On
the contrary, the conIrl1t ina IL with
said company was for Il superior quail
ity of oil, at fair DriSa. and the price
therefor was not in excess of the price
which it would have been n~cessir.r :
to pay any other oil company for oil
of equal grade and quality.
Thirteenth. The defendant answer
ing the allegations contained il the
is not true that the condition Of The
property of the defendant is depIo1a-
BILE. On the contrary. it is averred
that its condition is good. 1t IS iot
true that the stockholders other than
the State have attempLc1 u negotiate
a lease of the properly. IC is true
that several propositions to lease the
property have been submitted to the
governor of the State, bur il is denied
were the result of the endeaNoTS OF
the private stockholders. And it is
further denied that any o. these prop
oSitionS proposed to deposit With The
treasurer of North Carolina good and
solvent~bonds sufficient III amount to
guarantee the faithful performance by
the lessee of the Con1ir.'ns of the
proposed lease. 1t is admitted. hOT-
ever, that some OF the propositions
contained an offer - give bonds to Sc
come the performance of these condi-
tions in sums sufficient to secure one
and two years rental, but it is not true
that they proposed to deposit with the
treasurer of North Carolina good and
sufficient bonds to secure the faithful
performance of all of the conditions
of the lease.
Fourteenth. That answering the al
legations contained in the fourteenth
paragraph, 1t is admitted that ma
jority of the private stockholders are
in favor of a lease which yields a rea-
sonable rental, and which is sufficient
ly safe-guarded to protect the inter-
ests of the State and the private stock
holders and it is aVerred that the
State has been and is now ready to
join in making such a lease.
The States Proxy.
And answering the balance of this
paragraph, it is admitted that the pri-
Vate stockholders passed the resolu-
ton set out in this paragraph. but
the defendant alleges that it was done
under these circumstances: After
the regular business at said meeting
had been transacted, j. w. Granger,
the States proxy, of his own motion,
stated that the Governor would be
glad to know the views of the private
stockholders in reference to lease of
the property, and that thereuDon the
meeting was held and the resolutions
passed; that as it was to he q meeting
of the private stockholders alone.
the States proxy, as was proper for
him to do, absented himself while
they were deliberating about the mat
ter; that he did not absent himself
for the purpose of delaying or defeat
ing any action on their part; that they
n haFDrO