Knoxville Whig and chronicle. [volume] (Knoxville, Tenn.) 1875-1882, 1875-09-08

Otlef creditors, Oeclueu UO accept the
terms offered by the State. and the
contract with the North Carolina Rail
road Company was cancelle D., ami u
sale of all the interests made to the
State of North Carolina.
The act referred to crra'-d Cou
mission, consisting Guv ruor
and Messrs. Armli Hnu-
ertsOn, the two Ing
the re 'pective speaker c., .o.,a q
and the House of Re, ~rntujp,r, of
that State.
1t authorizes the creation of eight
hundred and fifty thousand dollars
(SS5O, OO0) Of per cent. uDuds running
fifteen years, to be ISSUED by said com
missiOuers IN the name OF the Western
North Carolina Railroad Company,
and secured by a first mortgage lien on
all the property and franchises of said
road (of which there is now completed
and equipped ll5 miles,. 1t requires
one half of the net proceeds of the road
to be placed in the treasury of the
State to meet the interest accruing on
the bonds semi-anuually, and directs
the State Treasurer to supply any de-
ticiency that may arise out of the COM
mon fund, and further makes the cou~
pOns, of said bonds, receivable in pay
ment for all taxes and other dues to
to the State. The other half Of the
net proceeds of the road is to be appli-
ed towards the extension of the road to
Paint Rock. II furthermore apprOpri-
ates the convict labor Of the State to
be used in the construction aud eX-
tension of the line to Paint Rock. This
labor is to be guarded, clothed and
fed at the States expense.
Under the contract made with the
Commissioners acting for the State Of
North Carolina they are bound to pro
coed to construct and complete the
road to Paint Rock, as rapidly rs may
be practicable and 10 commence opera
tons as soon az clear title is obtained
by the foreclosure sale then pending
under the decree. This sale has re-
Gently been cOn-ummated, and the
state is now in possession and promise
To begin work at once.
The bonds and mortgage with the
usual foreclosure provisions are being
and will be ready probably
within thirty days, when your COM
pany is to receive in payment for its
interests about two hundred and thiI~
ty-three thousand dollars 1928, OOO.)
These bonds should and we believe will
be tirst-class security, being less than
IS 600 per mile on the road now COM
pleted, and when the State fulfills its
engagement to extend the road to
Paint Rock, will be only forty-five
hundred dollars 4,500) per mile
on completed road.
1t is hoped that all difficulties in the
way of the completion Of the Western
North Carolina Road to the Junction
at the State line with your Morristown
branch, have thus been removed, and
that the work will now go forward to
and that your company
will at last reap the great benefits to
be derived from that long sought aud
most important connection.
1t is proper to state, in this connec-
ton, that the Spartanburg and Union
road is being pushed forward towards
and will likely reach that
place by the time the road is completed
to Paint Rock, thus giving to your
the very great benefit of di
rect railroad connection with the rail-
road systems of the States of North
and South Carolina, which will GER
tainly be of very great value, not alone
to your company, but to tie people Of
those States and of Tennessee. Your
is obligated, under the con-
trace, to extend the Morristown road
from its present terminus at Wolf
Creek TO Paint Rock, q distance of
about four miles, by the time the State
of Moth Carolina extends its end to
that place, and we sincerely hope the
day may not be far distant when you
will be called upon to do so.
Under provision of your chaI ter
the property of the Company is ex-
empted from taxation for twenty
years from the date of completion of
the road. Another provision exempted
the capital stock of the Company from
taxation for ever. The time of exemp-
ton on the western division of the
road has nearly expired, and will do
so ON the eastern division in about
three years. The second provision ex-
empting the capital stock forever from
taxation was claimed by many to EN-
brace the coupons of the road, as the
capital stock represented all the prop.
erty of the Company, both real and
personal. Whether such construc-
ton would have been sustained or not
by the courts, could not be CORE city
predicted, and at all events, such an
assn mption on the part of the roads
would have been resisted by the State,
and thus brought the Company in a
conflict with the State, which your
Board would have regretted. To
avoid this, and out of
regard to a sense of duty, which the
board felt that all property receiving
the protection of the law, should bear
in the burdens Of taxation necessary to
sustain the law, we accepted as an
amendment to your Company's char
ter, the Eleventh Qlth) Section of
General Law Of the State, which fixes
the rate of taxation for ten years at u
per cent. per annum on the gross earn
iDgs, which is 10 be IN lieu of all other
tyxation, general, municipal and local
of every kind and nature whatever.
IT would have given your Board
much pleasure 10 have declared the
usual semi-annual dividend of October
next, but owing TO the reduction Of the
net income we are not justified IN do
ing so. II Is believed 10 be a good
financial policy to pursue a conserva-
tive course, and divide only what Is
actually earned over the demands upon
the Company for interest, renewals,
&C., and guided by this rule, the earn
ings for the year Is only sufficient to