C23nZ ; UNIVERSITY OF N.C. AT CHAPEL HILL 00042095703 BILL TO BE ENTITLED AN ACT TO AUTHORIZE A SALE ... IN THE CAPE FEAR AND YADKIN VALLEY RAILBOAD COMPANY /«-&"/ ,3// A BILL TO BE ENTITLED AN ACT TO AUTHORIZE A SALE AND TRANSFER OF THE STOCK OWNED AND HELD BY THE STATE IN THE CAPE FEAR & YADKIN VALLEY RAILROAD COMPANY. The General Assembly of North Carolina do enact: Suction 1. That it shall be lawful for, and shall be the 2 duty of, the Commissioners hereinafter named to sell 3 and transfer on the books of the Cape Fear & Yadkin 4 Valley Railroad Company the fifty-five hundred (5500) 5 shares owned and held in said railroad company by the 6 State of North Carolina to the South Atlantic & Ohio 7 Railway Construction and Operating Company, incor- 8 poiated by an Act ratified on the 4th day of February, 9 18.81, upon the terms and conditions following, that is 10 to ^ay : That on or before the 1st day of July, 1881, the 11 said purchasing company shall pay into the Treasury 12 of the State the sum of fifty-five thousand dollars, in law- 13 ful money of the United States, for which sum when so 14 paid the Treasurer shall execute and deliver to said 15 purchasing company a receipt, provided said company 16 shall at the same time deliver to the Treasurer an obli- 17gation in writing, signed by its President and attested 18 by its Secretary, with the seal of the company, agreeing 19 in substance and effect following, to- wit : That the stock 20 for which certificates shall be issued to the South At- 21 lantic and Ohio Railway Construction Company shall be 22 delivered to the State Treasurer, to be by him safely held 23 and kept in trust, as security that the said purchasing -24 company will perform the following conditions upon 25 which said sale is made to them ; that they will bona fide 26 construct and put in actual operation, before the first day 27 of July, 1883, the Western portion of said road to a con- 28 nection with the line said purchasing company propose 29 to construct under their own charter from the Tennessee 30 and North Carolina State line to some convenient point 31 at the Eastern base of the Blue Ridge mountain ; and 32 that within the same period they will construct an Eas 33 tern extension and put it in operation from Fayette ville 34 to some point to be selected by them on the shore of 35 Wilmington harbor: and further, that they will coif- 36 struct and put in operation a branch from the main line 37 somewhere West of Greensboro into the county of Surry 38 and as near to the town of Mount Airy as may be prac- 39 ticable for a railway route and station, before the 1st day 40 of July, 1884: that if said South Atlantic* Ohio rail- 41 way Construction and Operating Company shall fail to 42 fulfil and perform any of the conditions aforesaid within 43 the time aforesaid, then and in that event their title to 44 said fifty-five hundred shares of stock so purchased from 45 the State shall cease and determine, and it shall be the 46 duty of the Treasurer of the State to notify the Commis- 47 sionersof such default and failure, and deliver to them the 48 certificates for all of said stock, and it shall be their duty, 49 and they are hereby authorized and directed to transfer 50 said stock on the books of the Cape Fear & Yadkin Val- 51 ley Railroad Company back to the State of North Caro- 52 lina, whose title thereto shall never afterwards be ques- 53 tioned before any Court or tribunal, State or Federal: 54 and the fifty five thousand dollars of purchase money 55 paid for said stock shall be held forever by the State as 56 agreed and liquidated damages to be paid by the pur- 57 chasing company for its default in thefulfiimentand ner- 58 formance of its agreement with the State to complete 59 and equip said road as hereinbefore provided for. But 60 if on the 1st day of July, 18S4, the said purchasing com- 61 pany shall in fact have complied with all the conditions 62 aforesaid, and be then in fact running trains over the 63 Eastern and Western extensions from the base of the 64 Blue Ridge to Wilmington Harbor, and on the branch 3 65 to or near Mt. Airy, it shall be the duty of the Treasurer 66 to deliver the whole of said stock to said Company with- 67 out further conditions of any kind, and after such de- 68 livery, if a majority of i he stockholders so decide in 69 general meeting of the Cape Fear & Yadkin Valley Rail- 70 road Company, it shall be lawful to merge and consoli- 71 date said company into the South Atlantic & Ohio Rail- 72 roan Company on such terms' and conditions as may he 73 agreed upon between the two companies. Sec. 2. The vote to which the purchasers of said State 2 stock shall be entitled in said company, after they com- 3 mence the work of construction as aforesaid, shall be 4 the same that the State is entitled to under the present 5 charter of the Cape Fear and Yadkin Valley Railroad 6 Company in all meetings that may be held. But after 7 the final delivery by the Treasurer of said stock, it shall S stand upon the same footing as all other private stock. Sec. 3 The gauge of said railroad shall be at all times 2 entirely subject to the control of a stock-holders' meet- 3 ingof the Cape Fear & Yadkin Valley Railroad Com- 4 pany ; and in like manner all questions of connections, 5 running arrangements and tariff rates, with connecting 6 roads, shall be under the control of the company, pro- 7 vided that in the establishment of rates no discrimina- 8 tions shall be made on North Carolina freights or 9 travel against any point of traffic or travel in the State 10 and in favor of places beyond the State. Sec. 4. To afford the said purchasing company all 2 the facilities for the fulfillment of their obligations, they 3 shall have the right to subscribe for stock in the Cape 4 Fear & Yadkin Valley Railroad Company on the same 5 terms as other private stockholders for such amount as 6 they may deem sufficient to complete their undertaking. ~. 7 And the State agrees hot to interfere with existing ar- 8 rangements respecting convict labor on said road ; and 9 further, that as additional convicts may become availa- T) 10 ble, either by new commitments to the penitentiary or 11 the return of convicts by other companies now entitled 12 to or working them, the State will hire them to said com 13 pany on the usual terms in such cases, the said company 11 agreeing to pay the earnings of the said convicts in 15 money monthly as the ^ame falls due. Sec. 5. If the South Atlantic and Ohio Railway Con- 2 struction and Operating Company shall fail or refuse to 3 complete the purchase pf the State's interest aforesaid 4 on or before the 1st day of July, 1881, in the manner 5 and form hereinbefore provided, then it shall be lawful 6 for said Commissioners to sell said stock, at not less than 7 the price herein mentioned to an}' othe 1, company, or 8 private parties who will give adequate security to com- 9 plete the road east and west, and the branch to Surry as 10 hereinbefore set forth, within a period not exceeding 11 three years from the date of sale to them. Sec. 6. The following named 'gentlemen are hereby 2 created a Board of Commissioners to cany out the pro- 3 visions of this act, and they, or so many of them as may 4 accept, shall be invested with full powers to do whatever 5 is necessary to be done in the premises to give full force 6 and effect to this act, to-wit: Sec. 7. This act shall be in force from its passage.