The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-04-06
Gm Messenger.
DECISION IN RAILWAY LEASE
CASE.


CASE.
We do not suppose the decision OF
Judge Long in the suit to annul the
lease Of the Atlantic and North Caro-
lima railroad was anything of a sur
prise even t o the parties who insti-
tuted the proceedings. There will be
an appeal to the supreme court, no
duobt, and by the time final judy
ment is entered IN the case in accord
ance with the decision Of Judge
Long the county of Craven will be
out the two thousand dollars and
more the commissioners appropriated
TO The prosecution of the suit, and
that will be the only result of -he
litigation. If ever the state and
a county were put to useless expense
they were in this case. We hope the
supreme court will decide the case at
an early date, so that this slight men
ace to the rights of the lessees may be
removed, in order that they may pro-
coed without fear of further molesta-
ton in their plans of developing that
section Of the state. We look for
great results in the near future from
the lease of this road. The time will
come when the persons who so Wig
orously opposed it will wonder what
made them SO short-sighted as 20
contend against it.
The Charlotte Observer gives the
following summary of the judges
opinion:
The plaintiffs contend that the lease
should be annuaIled Cd because the
meeting of stockholders at which the
matter was considered was not called
upon proper notice n was not a law
fut meeting. CD n because the meet
ing wa not held in the place designat-
ed in the call. The court finds that
there were irregularities as to the
notice n place of meeting, the meth
Cd Of delivery of the lease. the cOndi-
tiOnal delivery of the property before
the deposit Of 500, 600 was made. and
possibly in other details of less import
ance." But the acts of the officers of
the company and the governor and
his associates in the matter show
nothing but good faith and honest pur-
pose, and in view of this and other
circumstances, notably the action of
the stockholders. including the plain
tifts, with one exception, at the meet
ing in September subsequent to the
lease, in receiving dividends from the
lease, cures such irregularities as may
have existed and the motion to an
null the lease on the grounds named is
denied.
The third ground for annulment is
that the deposit of 500, 900 in bonds
a never been made by the lessee.
The court finds that only $4,000 in
bonds were deposited. but hat their
reai value is considerably more thar
100000 and therefore it is held
that the deposit was a substantial
compliance with the terms of the lease.
UpOn the fourth ground for annu1-
ment the court says hinges the most
vital questions in the caSe,' this being
as to the right of the Atlantic and
North Carolina Railroad Company I'M
der its charter to lease the property.
the contention being that the lease
was ultra wires. The language of the
legislative act is that the company
may farm out the right of Transport
tatiOn over said r~ailroad.'' and the
matter to be decided is whether this
means to allow the road itself and all
its property to be leased. Judge Long
finds that "the lease was not ultra
wires. but is valid and must stand.
Therefore the plaintiffs are taxed with
the costs.
In short. Judge Long finds that
while there were irregularities of a
minor character in the course of the
proceedings leading up to the leasing
of the road, they are not such as to
effect the legality of acts clearly in
c~onsonance with SOUND public policy
and best for all concerned. That the
stockholders did we'll for all parties.
there is no sort of doubt. The decis-
ion o. goes before the supreme court
for review and we trust it will stand.
It need hardly be said that the text
of the decision bears witness to the
ability and forceful style of the judg
who rendered it.