The news & observer., 1905-11-05
ANNUL THE LEASE
Grounds of Suit Against
A. & N. C. R. R. Lease.
The Case Will Probably be Heard s t
Craven Superior Court This
Month. Big Fight
Ahead,

stockholder in the Atlantic and North
Carolina Railroad for himself and
others against the Atlantic and North
Carolina Railroad Company, and the
Atlantic and North Carolina Company,
to set aside the lease made by the
State and other stockholders in Sep
tember of last year, will probably
be heard al the approaching SeeSio.i
OF Craven Superior Court which con-
venes on the 10Th of November. The
County Commissioners of Craven
appropriated 1000 to maintain the
SUIT which was formally approved by
the Commissioners of Lenolr county.
These two counties own respectively
100000 and 100000 stocks in the
road Mr.. Hill will also be joined by
such other private stockholders as
desire to have the lease annulled. The
complaint is signed by W. w Clark, l..
/. Moore, o. H. Guion, E. M. Green
and H. G. Whitehurst. attorneys for
the plaintiffs. sets forth the grounds
upon which the suit is brought. Here
are the contentious summarized:
/. That the meeting of the stock
holders, called at New Bern, Septem-
Der 1st, 1904, was not legally called,
and that the notice of said meeting
was published only in one newspaper
at New Bern when it should have been
published in other newspapers.
.. That the adjourned meeting at
Morehead, thirty-six miles from New
Bern, at p. m. of the same day, at
which a resolution was adopted leas-
ing the road to Mr. Howland and as
SociateS was illegal.
3. That as d condition precedent to
the lease 100000 was to be deposited
with the State of North Carolina; that
h.
and his associates before the deposit
was made with the State Treasurer.
4. That the lease was never read
to the stockholders.
s. That there was turned over to
Rowland and associates more than
5000 worth of supplies
6. That the Atlantic and North Car
oil ma Company has paid in only $40
600 of its authorized million dollars
of stock.
g. That the plaintiff was not repre-
sented in person or by proxy and
therefore not bound by the lease.
T. That the attempted lease was in
fact sale of all the Atlantic and
North Carolina property because
leased for a term which in no event
was to be determined, except by for
feiture, until the expiration of the full!
term of the corporate existence
8. That the lease contains the fol-
lowing:
That said lease contains the
following provisions:
"And the lessee doth covenant
to and with the lessor, its sue
cessors and assigns. that 1t
will not at any time during the
continuance of said term fix or
establish rates on freight called
local freight at a higher average
price or rate from station to sta
ton than the average rate for
local freight tariff as lawfully
fixed and established by the lessor
at the time of the execution OF
this lease"
And that since the execution of said
lease the rates specified in said cove
nant have been raised from ten to
cne hundred Ler cent above those in
existence at the time of said lease
g. That the rental the first twenty
years is $53,916, whereas the earnings
for the year Immediately preceding
the lease was more ,han $4,000 and
the net earnings for the first six
months of the lease were about Sl9,-
O0O and that it has not expended
any monies for improvements except
such have been earned frtm the OPP
Grafton of the road
O. That the lease was never law
fully authorized by the stockholders
of the Atlantic and North Carolina
Railroad, and is void: that the Allan
tic and North Carolina Railroad was
not authorized or empowered By it,
charter to make said lease and The
same is ultra wires and void.
10. The resolutions offered at the
meeting of stockholders to bring suit
to recover certain property and annul
the lease which resolutions were laid
upon the table, are set forth. and the
complaint concludes with the prayer:
Wherefore the plaintiff demands
Judgment:
81. That the said lease be annulled.
"o. That the defendant the Allan
tic and North Carolina Railroad Com
pany recover of the Defendant the
Atlantic and North Carolina Company
all the property transferred to 1T by
said lease
"5 That the defendant, the Allan
tic and North Carolina Railroad Com
pany, account to the defendant. the
Atlantic and North Carolina Company
for all monies expended by it on said
railroad and other property.
For such other and further be-
lief as the plaintiff may show himself
entitled to receive and for COSTS
A prominent business man of New
Bern. speaking of the matter a few
days ago, said:
Eastern North Carolina has been
steadily improving since the passage
of the Constitutional amendment,
and each year the strides will be
greater in larger Volume. Railroad
and all other property is increasing.
in value all the time. The people of
this country have had a hard time.
and it is not right to be compelled to
transfer to others our valuable prop
critics at half price just at the mo-
ment they are assured that It will
continue to increase. They NAV fool
all of them sometimes. bit they can
not fool ALL all the time
JUDGE CLANCY. OF BUTTE.