Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1869-11-05

make six per cent. dividend for the Stock
holders without encumbering it with q
lease I'd. We do not believe that by
leasing the Road the Stockholders will re-
ceive six per cent. per annum, Tor the
reason that there is no provision In the
contract for paying the eight per cent. inter-
est on the first mortgage bonds of the Road
now in the hands of individuals to the
amount Of four or five hundred thousand
dollars. The Stockholders cannot receive
dividend until this interest is paid, and
| it is not provided in the contract who is to
pay this mortgage interest, which certainly
takes precedence over all other indebted
ness If the money received from the
parties leasing the Road (which is tixedlat
the sum of $240,OO0) is applied to paying
the interest on the mortgage bonds, then
certainly the Stockholders cannot receive
six per cent, because the Leases do not
obligate themselves to pay more than a
certain sum. Sd. We are opposed to the
| farmed out we think it ought to be put up
to the highest bidder who will give the
highest price and the best security
Other parties will give more for the Road
than has been promised by the contracting
parties.
The President of the Road, Maj. W. 4.
Smith, is a practical man. and we have
great respect for his opinions, and there
| fore we are surprised that he is represent
ed as favoring the contract. We do not
believe that he is dishonest or that he
would do anything, knowingly, to injure
the interests of the State or individual
Stockholders /; but we do think that he is
mistaken if he favors the contract recently
made by the Directors of his Road.
The taxpayers of the State would prefer
Al, .l,o ~ loft kho hon 10
of Maj. Smith, believing that he will in
| so as to reduce taxation as we'll as make
the work profitable to individual stock
holders.
The whole Indebtedness Of the Road
amounts to about $500, 900, and if this debt
or the interest is partly paid, how can the
contract result in any greater advantage to
the Stockholders than under present man
agement.
We are friendly with the leading men of
both parties in the State, and have no par
ticular friends to reward or enemies to pun
ish, and only desire to see the public works
managed or disposed of in way that will
| be of greatest benefit to the State and peo-
| pie. We are independent of all rings -
and combinations, and care nothing for the
frowns or smiles of either.
From the Raleigh Standard, Repubcan.)
CONSPIRACY TO LEASE THE NORTH CAROLINA
RAILROAD.
The proposed lease of the North Carroll
ma Railroad still continues to be the alb
sorbing subject Of interest in this
State. And well it may be, for a transac-
ton which more deeply involves the in
terest of every section of the State will
never come before the people Of North
Carolina. If successful it would create O
railroad monopoly in comparison with
which the famous, or rather Infamous Cam
den and Amboy monopoly would be d
mere bagatelle.
In the first place. however, let us look at
the matter as a legitimate transaction, and
see if, even in that light, the State and the
private stockholders in the North Carolina
road are receiving fair price for the priv
ileges which are bieng bargained away.
The Raleigh e CASTOR road is to pay six
per cent. on the capital stock On the North
Carolina Road-a sum of two hundred and
forty thousand dollars, yet it is credibly
stated that the net earnings Of the road
last year were over three hundred thousand
dollars, and it is believed that this year
they will be still larger. Where then is
the State benefited by this tranaction p
How are stockholders benefited They
are not benefited at all. but on the con-
trary, the transaction is direct loss of
from sixty to one hundred thousand dol
lars per year. And yet we are told that
this arrangement is to the great benefit of
the State and the private stockholders
But the worst feature of the case is yet
to be shown. for it proves that this pro-
posed lease is not only losing affair to
those directly interested in the road but
| 20 or, o&foob unon tho 1uho1a noon1o of III %
State. Mark what follows:
The North Carolina Railroad is the only
road which crosses the State to South Car
DINA except the Wilmington and Weldon,
which runs across the extreme Eastern
portion. The North Carolina Road is made
a through route by connections with the
Raleigh & CASTOR Road at Raleigh (which
is the shortest route) and by connections
with the Wilmington & Weldon Road at
Goldsboro'. This latter connection is but
little used for through travel and not at all
for through freight. BY the proposed
lease the North Carolina Road virtually be-
comes part of the Raleigh and CASTOR
Road and consequently the great through
route for Southern freight and travel.
| There is another road now building
which is to run from Raleigh through the
middle of the State and thence to South
Carolina, forming, when completed with
it's connections, the shortest route from
the North to the South. This Road is con-
trolled by the same men who control the
Raleigh and CASTOR Road.
Thus then these two roads are feeders to
more than two-thirds of the State, and any
one examining the map of the State can
see that nearly all the counties west of
the Wilmington and Weldon Road will be
at the mercy OF the Raleigh and CASTOR
combination, if the proposed lease is eff
fected, and this is the object of the parties
obtaining the lease. The matter once
settled in their favor, up will go the
froights and passenger tariffs, and large
portion of the people of the State, to-
gether with the travelling public and those
who ship freight, will be at the mercy of
this iniquitous combination. All that it
demands the people will be obliged to
pay, as will all connecting roads.
We do not know what means were used
to consummlte this bargain, but, what
ever they were, we do not believe they
were good. Whoever heard before of this
proposition to lease this great road No
one. The announcement of the lease came
upon the people of North Carolina like q
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