The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-03-09
MAY FORCE SALE OF l. / 1. c.
Suit Of Mr.. Hill Of kewbern Causes
Widespread interest

! VtUOoptOuu tHt0ioSk
Annulment of the Lease Would Proba-
bly, Necessitate n Sale OF the Road
and h Imposition Of Such . Heavy
Mortgage That the Road Could Not
Stand for 1.-THE state Is Now In
volved to the Extent of SSoo. ooo.
The suit Of Mr.. Hill at New Bern 10
set aside the lease of the Atlantic and
North Carolina railroad, from More
head City 10 Goldsboro, has awakened
no little interest here Some larger
stockholders and citizens who nave ex-
amined the facts are now publicly ex-
pressing the opinion that the annul-
ment OF this lease would necessitate
either a sale of the road or the impo-
sition of such a heavy mortgage that
the road would have { 0 be sold In a
few years.
The lease Of the old "mullet" road,
as it was commonly called, to he How
land Improvement company was per
fected at Morehead City, September
!, 1904. When the lease was made
the new paid of the floating
debt of between $4,000 and $50, 900,
paid cash for the wood and other sup
plies on hand amounting to nearly
$4,000, and have since, as sworn re-
ports show, expended about 500, 900 in
permanent Improvements, consisting CT
new engines. cars, bridges and stations.
This expenditure does not include "A
penny of the money being spent i'll
the construction of the great bridge
between Morehead City and Beaufort.
i Should the lease be broken up ii is
admitted that this money must imme-
diately be paid back TO the Howlant
Improvement company. The aggregate
will be owe $500, 900, and the payment
of this sum would be accomplished
only by the sale of the road or in
creasing the mortgage, in the opinion
of many.
, Besides this, lawyers have expressed
the opinion that the state would have
to pay interest on this money and be-
side probably stand a law suit. 1t is
we'll known that under the lease the
state now receives $4,000 annually as
dividend on its stock and this 8 per
cent will be gradually increased. The
total the company is now paying the
private stockholders and the state in
dividends is $54, 900.
THE POWER TO LEASE.
: The state in making the lease guar
anteed the title to the property, and
this of course makes it strongly prob
able, so lawyers think, hat in case
the lease is annulled the Rowland CON-
pany can secure redress at law. This
power to lease is thus stated In The
lease (Which, by the way, runs so as
to expire at the same time the lease
of the North Carolina Railroad termi.
nates):
And the lessor, for itself, it's sue
cessors and assigns doth covenant and
agree to and with the lessee, its sue
ccssors and assigns, that ct the time
Of the ensealing and delivery of these
presents, it is seized and possessed AND
entitled to the premises, property
rights, franchises and privileges above
conveyed in the estate and for the tern
dernised, except as is hereinafter stat.
ed, and has good right, full power, anC
lawful authority to lease, farm out
convey and deliver the same In The
form and manner aforesaid, and thai
the same are free and clear from al
liens n membranes Of whateveI
kind or nature sOever, save and excep
the lien and membranes of a certain
deed Of trust or mortgage to secure
certain coupon bonds of the said lessor
heretofore issued and now outstanding
and amounting to about 1886, 600; tina
the said lessee, its successors and as
signs, shall during the entire tern
aforesaid have and enjoy quiet, peace
fnl and uninterrupted possession o
all the property, rights, privileges
franchises and estate hereinbefort
leased and farmed out; and that tn,
said lessor and it's stockholders ant
directors will not do anything or Lake
any action as such stockholders ant
directors that may or can interfere IL
any way whatsoever with the fire,
use and operation and conveyance o.
said railroad and other properties 81
hired, let, farmed out. and delivered
to the said lessee, according to TIT
terms and intents of these presents.
MAY FARM OUT TRANSPORTATION
The power to lease is delegated il
section Is of the charter. which reads:
THAT the said company may, when
they see proper, farm out the RICH
OF transportation over said railroad
subject to the rules above mentioned
and the said company and every per
son who may have received from then
the right of transportation of goods
wares and produce on said railroad
shall be deemed a common carrier al
respects all goods, wares and merchan
disc entrusted to them Tor Iranspor
tation."
The supreme court of the state ha.
positively and directly twice construed
this language Estate VS.. Richmond and
Danville railroad, ~ y. c., ga, and il
the same case 73 i. c.. 529). These de
cisions have been frequently affirmed
and in Lofian VS.. Railroad, 116 N. G.