The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1906-03-20

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Tie Plaintiffs contention.
The contentious If the tmo gagti.
4ra briefly a. f~olioRs
Tho p.aiau1 contends.
90 That there ~ rs power contain
- il the sharta of tbs rill''t4
whore either is directors ar its stock
holders can lease lis roadbed ana
rrupe y a. any other railroad comiA-
ms ar individual.
co That even If there were such
power granted. the lease effected on
September I. 1901. j. Illegal and VOID
fer a number Of reasons. Among
those reasons. they SAY that the char
ter required that before a special
meeting Of the stockholders could DE-
held notice must be printed IN two
paperS published fiji New Bern. and in
this instance notice Was published ~
only one. That no notice was sent t.
the plaintiff Till, ana he only heard or
the meeting accidentally. That rs soon
as he heard that such a meeting Was
to be held. H. hurried to the depot To
take the train for Morehead City tnat
the weather was hot and he WAS very
fat. and he got to the depot just after
the train pulled out, and he could not
20. THAT the leSsees hay not com
piled with the terms of the lease. that
in violation Of its terms. They h1Xe
raised the rates for freight. That they
did not comply with the terms by put
ting up the $l00. 600 security before
taking charge. but that they took
charge three or four days before that
deposit was actually put up. Further,
that the bonds for the security Of the
rent were required to be put in d de-
pository To be selected by the directors
of he Atlantic and North Carolina
railroad. and h those directors ney-
er selected a depository. Finally. that
the lease was q bad business arrange
ment, and that the rOad VAS worth far
more than the rental provided for i'll
the lease. These are perhaps the most
prominent Of the various causes set
out in the plaintiffs complaint. asking
that the lease be set aside.
Reply OF the Defendants.
The defendants reply to his is
about as follows:
They say that the charter of the At
lantlc and North Carolina road coa-
tanned plain and explicit authority 10
east lht IodL. IldllCi1lStS. tlC.. lil3L
the words are almost Identical with
the corresponding words in the charter
of the North Carolina road, that these
words have been often construed BY
u supreme Court, and always ad-
judged TO contain full authority to
make the lease; that these opinions
have become a rule of property in
North Carolina; that vast property
rights have grown up under them and
large investments have been made on
the face Of them; that the North Car
DINA road has twice been leased un-
der similar authority. and the leases
held valid; and that the Atlantic and
North Carolina road was once before
leased to " j. Best, and no question
raised as to its validity. That it is
true the charter said advertisement
Of, a special meeting should be made
In two newspapers published in New
Bern: that i'll August, 1904, Only one
newspaper was published in New
Bern. The notice was published IN
that paper. That while only one
newspaper was published i'll New
Bern, the fact that Il meeting was II
be held on the LIST of September 70
consider a lease was published In
more thar a hundred newspapers. III
North Carolina. and that Il printed
notice of that meeting WAS mailed to
all the plaintiffs, ana they had actual
knowledge Of the same: tina the
plaintiff Foy was present at the meet
ing; that the count of Craven was
present at the meeting, advocating shg
lease and voting for it. Tha the
plaintiff Hill only had one share Of
stock, for which he had paid $50
ana he felt 50 little interest in the
matter that he Gid not attend the
meeting, the day being hot and he
tat; and that the lease was 50 salts
factory to Mr.. Hill that after it was
effected he bought another share Of
stock, at a much higher price. and
now owns two shares. That the les
see has not violated his contract in
increasing freight rates. But even If
THIS were a act. it is q matter which
the Corporation Commission can
remedy, and Will do SO at any time
upon complaint. That this clause Ia
the lease was Il covenant and not a
condition to u defeasance. That it is
true that the 100000 security was
not actually deposited With the
State until about the 4th OF |
September, but that Il certified
check vas in the hands Of Hon. |
Frank \. Daniel at Goldsboro. !
anu he turncd il over to the Govern |
or az soon as requested. That the Sc
curltI was invested in North Caro-
lima 8 per cent. bonds and deposited
in the Wachovia Loan and Trust !
an agreement to that effect (
having been executed in triplicatc by !
the Rowland Improvement Company.
ms company vas selected as the
depository by GoVerno~ Aycock. and
the agreement signed in legal
form by the authorities Of all. three
companies. each company keeping 4
copy That it is not true that tho
lease was improyidcntly made. ON
the contrary, it was a very wise at
ransemcnt, and under il stock has
risen from Twenty-Five cents ia tho
dollar 10 seventy cents in TN. d0lla-.
flVldendS arc regularly paid and
banks gladly accept the stock az col
lateral.
Further. that On the face Of the
and believing that il was valid.
a great many citizens If the state
have bought stock that more thal
thousand shares have
changed hands since the lease. AT
prices ranging from $50 to so Il
and that these stockholders are
al III favor Of sustaining the VALIDITY
of the lease, and that it would he IN
equitable 10 sacrifice their rights 10