Library of the 
 University of North Carolina 
 
 Endowed by the Dialectic and Philan- 
 thropic Societies 
 
 Of 385. \- rtSli^ 
 
EEPORT 
 
 OF THE 
 
 DIRECTORS 
 
 OF THE 
 
 FORTH CAROLINA RAILROAD. 
 
Digitized by the Internet Archive 
 
 in 2012 with funding from 
 
 University of North Carolina at Chapel Hill 
 
 http://www.archive.org/details/reportofdirector1877 
 
•3.) 
 
 
 [CIRCULAR.] 
 
 Salisbury, July 12th, 1877. 
 
 To the Stockholder* of the North Carollim Railroad Com- 
 pany : 
 
 Resolved, That the Board of Directors be requested to 
 examine carefully into the collaterals deposited by the 
 Richmond & Danville Railroad Company to protect the 
 lease, and to report to the stockholders in a circular 
 within thirty days. 
 
 1st. What these collaterals consist of ; 2nd, giving fuU 
 description of same; 3rd. reporting market value of 
 same ; and 4th, whether or not the collaterals are suffi- 
 cient according to the terms of the lease. Should the 
 collaterals be insufficient, the Directors are requested and 
 required to at once notify the Lessee to make good the 
 collaterals according to the terms of the lease. 
 
 That the Directors enquire as to the bond given ac- 
 cording to terms of lease to keep up the Road, etc., and 
 report fully in the circular, the obligors on the bond and 
 as to its solvency. 
 
 Greensboro, Aug. 8th, 1877. 
 
 Ln obedience to the foregoing resolutions, the Board 
 of Directors report that they have performed the duty 
 imposed and find deposited with the Cashier of the 
 First National Bank of Charlotte, K C, the following 
 
(4) 
 
 bonds as collateral security for the semi-annual payment 
 of one hundred and thirty thousand dollars ($130,000) 
 lease money. 
 
 One hundred and fifty-eight (158) first mortgage 6 per 
 cent, bonds of the North Western North Carolina Rail- 
 road Company of one thousand dollars ($1,000) each, due 
 A. D., 1902, with coupons attached from and including 
 Octobor 1st, 1873. These bonds are a portion of five hun- 
 dred thousand dollars ($500,000) first mortgage bonds ot 
 the North Western North Carolina Railroad Company, 
 and are endorsed by the Richmond & Danville Railroad 
 Company. 
 
 Also seventy (70) first mortgage 6 per cent, bonds of 
 the Richmond k Danville Railroad Company of one 
 thousand dollars ($1,000) each, due A. D. 1890, with 
 coupons from May 1st, 1872. 
 
 These bonds are a portion of two million dollars 
 ($2,000,000) mortgage bonds of Richmond & Danville 
 Railroad Company, authorized by act . of General As- 
 sembly of Virginia, dated February 22d, 1807 : mortgage 
 dated 18th of June, 1867. 
 
 We find in the hands of the Treasurer of the North 
 Carolina Railroad Company a bond of the Richmond & 
 Danville Railroad Company for one hundred and thirty 
 thousand dollars ($130,000) under seal of said Richmond 
 & Danville Railroad Company, and signed by A. S. Bu- 
 ford as President therof, which bond is as follows : 
 
 S130,000. The Richmond & Danville Railroad Com- 
 pany, a corporation, incorporated by the State of A'ir- 
 ginia, doth hereby acknowledge itself, its successors and 
 assigns, to be held and firmly bound to the North Caro- 
 lina Railroad Company, a corporation incorporated by 
 the State of North Carolina, its successors and assigns, in 
 the sum of one hundred and thirty thousand dollars 
 ($130,000) for the true and faithful payment whereof the 
 
 » ■ 
 6 
 
(5) 
 
 Richmond & Danville Railroad Company aforesaid doth 
 hereby bind itself, its successors and assigns firmly by 
 these presents. Witness the signature of the President 
 of the said Richmond & Danville Railroad Company, 
 and the corporate seal thereof this 12th day of Septem- 
 ber, 1871, 
 
 The condition of the above obligation is such, that 
 whereas, by deed between the parties hereto bearing date 
 the 11th day of September, 1871, the Xorth Carolina 
 Railroad Company aforesaid did lease and farm out for a 
 term of years its Railroad roadbed, superstructure and 
 other property in said deed more fully set forth to the 
 said Richmond & Danville Railroad Company, and in 
 consideration thereof the latter company did by the deed 
 aforesaid covenant as follows : 
 
 And for the consideration aforesaid the said party of 
 the second part doth covenant with and oblige itself unto 
 the said party of the first part to keep the said Railroad, 
 Roadbed, superstructure, depots, buildings, houses, shops, 
 engines, cars, fixtures, and other property of every kind 
 and every part thereof, so hired, let, " farmed out," and 
 delivered in equaly as good condition and repair as when 
 so delivered to it ; or to keep in the place of the same like 
 things of equally good condition and repair ; and to return 
 at the end of the said term of thirty (30) years, or at the 
 termination of the said lease, to the said party of the first 
 part the said Railroad roadbed, superstructure, depots 
 houses, buildings, shops, engines, cars, fixtures, and other 
 property, and all and every part thereof, in as good con- 
 dition and repair, as when so delivered to said party of 
 the second part, or other property when any part of said 
 property shall be worn out, destroyed, or abandoned, as 
 good in quality and substance and in like good order and 
 repair, and for the faithful keeping and performance of 
 the covenant and obligation last aforesaid, the said party 
 
(<5) 
 
 of the second part doth covenant with and oblige itself 
 unto the party of the first part to execute to the said 
 party of the first part a bond good and sufficient at all 
 times in the ability of its makers to pay in the sum of 
 one hundred and thirty thousand dollars ($130,000) con- 
 ditioned for the faithful keeping and performance of said 
 last named covenant. 
 
 Now if the Richmond and Danville Railroad Company 
 aforesaid, its successors and assigns shall faithfully keep 
 and perform the covenants herein above recited, then the 
 above obligation shall be void, otherwise remain in full 
 force and virtue. 
 
 THE R. & D. RAILROAD COMPANY, 
 By A. S. Bi ford, Prcst. 
 
 The Directors report that the market value of the first 
 mortgage bonds of the Richmond & Danville Railroad 
 Company is seventy-three cents on the dollar, but are 
 unable to determine the market value of the one hundred 
 and fifty eight thousand dollars ($1-38,000) of bonds of 
 the North Western North Carolina Railroad Company, 
 as they do not find them quoted upon any Stock Board, 
 and further state that in their opinion the collaterals de- 
 posited are not sufficient according to the terms of the 
 lease, and have therefore adopted the following resolution : 
 
 Resolved, That the President of this Company notify 
 the Richmond & Danville Railroad Company that it must 
 at once deposit one hundred and thirtv thousand dollars 
 ($130,000) in cash, or its equivalent in U S. bonds, or 
 bonds which sell upon the Stock Board for this sum ; or if 
 the said Richmond & Danville Railroad Company elect 
 so to do, that it may deposit first mortgage bonds of the 
 Richmond & Danville Railroad Company or first mort- 
 
(?) 
 
 o-age bonds of the Piedmont. Railroad Company to the 
 amount of one hundred and fifty thousand dollars 
 ($150,000) in market value ; and in regard to the bond of 
 one hundred and thirty thousand dollars, ($130,000) the 
 Directors have adopted the following resolution : 
 
 Resolved, That the bond of the Richmond & Danville 
 Railroad Company for the sum of one hundred and thirty 
 thousand dollars ($130,000) for the keeping of the fcorth 
 Carolina Railroad in good condition and repair and for 
 the return of said Railroad in good condition at the ter- 
 mination of the lease is not a compliance with the terms 
 of the lease, and that the said bond is not good and suffi- 
 cient in the ability of its makers to pay the sum of one 
 hundred and thirty thousand dollars, ($130,000) and the 
 Richmond & Danville Railroad Company be required to 
 give good and sufficient security in the sum of one hun- 
 dred and thirty thousand dollars ($130,000) for the faith- 
 ful keeping and performance of the said covenants of the 
 
 lease. 
 
 Respectfully submitted, 
 By order of the Board' of Director? of the North Car- 
 olina Railroad Company. 
 
 "W\ L. Thornburg, Secy, 
 
UNIVERSITY OF N.C. AT CHAPEL HILL 
 
 00042093331 
 
 FOR USE ONLY IN 
 THE NORTH CAROLINA COLLECTION