The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-03-23
TM Wessengrr.
HEARING OF THE RAILWAY
LEASE CASE.

North IdTOllud TdllTOdu was ucIu DS-
fore Judge Long in New Bern Satur-
day. There was no jury. The Judge
look the case under Amusement. AS
it is too late to get the case before
the supreme court at this term unless
it is taken up at the end of the docket
he will probably not be in a great
hurry to make his decision. OF course
there will be an appeal, no matter
which side wins in the lower court.
Some remarkable facts were brought
out in the hearing Saturday. Mr.. Hill,
the leader in the effort to have the
lease set aside, took so little interest
in the matter he being fat n the
weather hot" that he did not attend
the special meeting of the stockholders
which was advertised to be held for
considering the lease. Mr.. Hill at that
time owned one share of stock for
which he paid nine dollars. Being so
much pleased with the lease OF the
road he, subsequent to the lease,
bought another share for which he
paid a much higher price. and ne now
owns only these two shares. He has
declared hat his costs in the case
are secured by the twenty-five hundred
dollars appropriated by the county Of
Craven to fight the lease.
Craven county's representative was
at the meeting which made the lease
and voted for it, but that county IS
now a plaintiff in the suit to have the
lease set aside and it's officials have
decided 70 spend twenty-five hundred
dollars of the peoples money, if neces-
sary, in an effort to set aside a contract
that they helpel to make.
The market value of the stock OF the
road has risen from twenty-five dollars
just before the lease to between sixty
and seventy dollars. Thousands OF
shares have changed hands at the lat
ter figures.
One reason the plaintiffs give why
the lease should be declared void is
that the special meeting of the stock
holders which made the contract was
advertised in only M newspaper in
New Bern, while the charter declares
that notices of such meetings shall be
published in two papers in that city.
The defendants answer to this is
that at that time there was but n
paper published there, and that no.
tees of the intended meeting and Of its
purpose appeared in papers all over the
state and that personal notice was sent
to every stakeholder.
The News and Observers report OF
the proceedings quotes the lessees as
declaring as to the betterment of the
property:
That since the lease. the lessees
have not only put on the road all OF
its own income, but. before the begin
ming of his suit, had put $15S,OOO or
their own money in Improvements,
rails, new rolling stock. new bridges,
etc, and since the suit nearly 500, 600
more; have bought the Norfolk and
Southern railroad and the steamboat
lines between New Bern and Wash
ington and Elizabeth City, n in adj
dition thereto are spending a quarter
of a million dollars building to Beau
fort, and Ia made other large in
vestments. That it would be inequi-
table to cause them to sacrifice these
Investments because Mr.. Hill mag
ines his two shares ave been injur-
ed in value.
The state and defendant stockhold-
ers declare:
That their interests will be ruined if
the lease is broken. They say that the
Atlantic and North Carolina Railroad
Company. in case the lease is broken
will nave to return to the leSsees all
the money for improvements, and all
such losses as they have sustained by
reason of the failure of the lease; that
the necessity of paying these sums
back will cause the railroad to be i'm
mediately put in the hands of a re-
ceiyer, f~oreclosed under its mortgage,
and that it will not bring more than
enough to pay its mortgage, floating
debts, n the amounts due to the les
sees. They say that stock will dFop
from its present value of nearly $1,000
a share to something like the price Mr..
Hill paid for his first share.
The plaintiffs contend that there is
no power in the charter whereby
either the directors or the stockEold-
ers can make a lease Of the road.
The defendants aver that plain and
explicit authority is contained in the
charter; that the words of this clause
in the charter are almost identical
with those in the charter Of the North
Carolina railroad, which has been
twice leased under the authority con-
tanned in its charter and such leases
have BEN held valid by our supreme
court. and that the Atlantic and North
Carolina road was once before leased
and no question wa raised as 20 the
validity Of the contract.
Other causes for setting aside tho