Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1871-04-28
Wilmington ana Onslo,y sa,,.o,,,

Ia
w. Korchner, y. II. Nurchisop, Sol II,
Z. W. Mcolanmy, q. Steyoas and q. W
Ward, having been appointed Co,on.:,
tee to open books and solicit su5scri-t;o.'
from the ctizsp' OF New nanovo. Jug
Onslow conutieg. To ala in build;oa ~
Wilmington and Ons;ow ,Railroad =
been thought advisable to submit for a.
better Information OF The public, j., g.,
remarks explanatory OF the plan bv Ul;o|
it is propose 10 consnmmate ire wo,3-
The most ueual mode of raising fp,l.
for ths building III railroads is By the i..r.
OF stock to individuals for as much of H.
requisite amount az possible aud, if uecoc
sary, afterwards mortgaging tho road =,
rolling stock for the remainder. 4 very ca
perficial knowledge OF SUCH matters will an
able oac TO sec that this plan in our Eorta
ern country, though elfectaai in the b,a1
in1 OF railways has rarely proved of a,,
direct benefit 20 the original subscribed
AS an invest mont, it has lew Inducements.
for the cases are rot usual where road
have returned a regular dividend. Far
! illustration take those inmcd lately abon,
us. Tho Stockholders Of the Wilmington
Il Manchester Railroad have certaiulv r.
ceived nothing for money advanced, ana
now find themselves alter many years Of
| patient waiting, In possession o. ce.tir
Gates worth merely tie parchment rpoo
which they arc printed. The Wilmington
& Weldon Railroad has paid nothing since
the war, the Wilmington, Char otto 4
Rutherford Railroad nothing at any tiae.
and the North Carolina Railroad has ou!y
recently paid n dividend Of per cent,
These roads alo selected for The prraas,
i.of illustration, because they are well i.nogn
in the community, aud nre andet CONNIE
tent end enlightened management. whc.,
every etTorS is made 20 work them eaono.
mically and pToftabIy. IA shnr. il ia . fact
TOO we'll known to oquir3 prcqmcnt, tllt
| the Roads throug hopG The South, with tbe
exception probably Of few IN Georpia
have signaIly failed to make any direct re
turn to tho Stockholders. There are, DOS
sibly, many reasons for this state OF AT
fairs, not tbs least OF which may be found
in the fact that the cost Vi construction is
often greatly increased because ComDa.
AA05 are AOECSL 10 LADEL8L.51 ~ u great SIt
rihce. Now practical railroad man o.
large experience, proposes 10 build this
Road and O'cR IT, advancing his services
and $50. 900 cash taking all lisks-only
calling upon the bonQhoiders for the ar,
tual cost per mile, loss the 80, 600 advances
and guaranteeing to them, upon its com
pletion, an annual dividend OF 6 per cent.
and contracting moreover, to deliver no
to them the road and equipments whea
ever the dividend SHALL be in arrears icr
over sixty days.
The advantages Of this plan arc obvioas.
All those who subscribe to the bonds nave
an assurance that the road lriH he britt,
that the resources Of the country will be
developed that trade will be greatly slim
ulated, that property along tho route will
be enhanced in value, that the investmens
will bring direct and regu ar return OF
90 per eDt., as much Is could ba hoped
for under the most favorable circumstln-
ceH. And, finally should this interest ever
fail, they will own the road aud find them
selves exactly in the position Of original
subscribers to the stock, with this great
advantage that they have come into posses
sion with an outlay of from thirty four TO
forty thousand dollars less than by any
other plan.
Suppose that thia fchemo were rejected
and you succeeded in raising Just $50 coo
less than woud b3 sullioiel. 10 complete
the work in other words The Same amount
OF money you arc called upon to con.
tribute under this arrangement
You muGt mortgage your road to
raise tho remainder. What is the histo-
~ OF corporations seeking funds by mort
gaging Why, even with the advantage
Of State endorsement, their bonds have
scarcely ever averaged so cents Ia The dol
ar, and since the WAL in many instance
much less. These corporations, moreover
roads much longer and better
equipped, and which offered innumerabio
over the one We haze under
consideration. and might therefore be OK.
1ected to do much better with thcir bonds
han you could possibly do with you.s, for
although You might mortgage for less than
the value Of your road, You
would have to go to outside parties lacn
wit h yOar prospects and the
ABILITIES of yOur line. YOu would iGci.
state endorsement aRl other guarantees,
nd you would come upJn n market al
eady flooded with bonds and having safer
Investments nearer home, 80 that yon ygonid
e compelled to sell at sacrifice. Bat.
cake very extraordinary Snpposition,
nd grant that yua could realize 50 cents
n the dolar--the cost OF construction
yould still be about $43, 750 more than hy
nc plan proposed. Again, every practical
ian Will see at glance that rallrOld can
o built for less by one man of experience
han by Company. For the Company
lust begin by employing q man OF expe.
fence and capacity. 1t must subdivida
le work, appoint officers ard resign eli
Is Interests into other hands. One who
as invested his time and $35, 900 may be
without serious stretch OF imagination)
expected to exercise reasonable economy.
8 1t has been quite definitely established
lat man looks more keenly to lis own
lterests than to the temporal advance
lent of even his best friend. Further.
lie contractor would build and operate
reaper, because he would buy only the
;tUal operative expenses, and would pay
lterest on $43, $50 less than the Company
ould-provlded even that the Company
uild as cheap. Once admit-what seems
IF evident-that he can build and oper
5e for less, and you see at once that ho
IN consequently afford to transport pas
'ngers and freight for less. That the IN
rest of Railroads and OF the public are
nNnAs 1ol 1