The daily state chronicle. [volume] (Raleigh, N.C.) 188?-1891, 1890-04-22
THE INVESTIGATIONS.
THE NORTH CAROLINA RAIL.
ROAD COMPANY BEFORE THE
COMMITTEE.

Col. r. 3 Ruflin, the Secretary-.and
Major Jno. w. Graham Examined.
The investigation committee met yes
terday morning and resumed its busi-
ness. Only three members were present,
Messrs. Carter, Aycock and Holman.
Messrs. Kerr and Sutton left for their
homes on last Saturday and had not re-
turned at the opening hour yesterday.
In the absence Of Chairman Kerr, Mr..
Garter was elected chairman pro tenn,
and the committee went into work.
1t had been decided to continue the
investigation Of the Raleigh and CASTOR
railroad, but the representatives. Of that
company not being ready for examina-
ton, the North Carolina railroad was
taken up instead.
Col. Thos. NJ. Holt, president; Col. P.
B. Ruffin, secretary and treasurer, and
Maj. Jno. W. Graham, attorney for the
North Carolina railroad company were
present.
Col 2. B. Ruffin was the first repre-
sentative called before the committee,
and was examined by the Attorney
General for the State
Q What is the capital stock of the
North Carolina road?
A. 81 100000
Q. What does the State own!
A. $5,000,O00.
Q. The other million is owned by pri-
vate individuals?
A. Yes, sir. Probably one-third of
the private stock is owned outside the
State.
Q. The capital stock of the road is
not, by the charter, exempt from taxa
| ton?
A. We do not pay taxes on the stock.
The company pays the taxes.
"a portion Of section 5 of the charter
OF the road, ratified February IA, 1855,
| is rs follows: Be it further enacted, that
ali the real estate held by said company
for right ofWny, for station places Of
whatever kind, for work shop locations,
shall be exempt fIom taxation until the
dividend Of the profits of the company
shall exceed SIX per cent. per annum.)
Q What is the par value Of the
stock?
\. One hundred dollars. | suppose
the present market value Of the stock is
s103 o. $l04. The road is two hundred
and twenty thre9 miles long, extending
from Charlotte to Goldsboro.
g What &c you receive annually from
the Redmond & DanvilIe for rents?
a. two hun0red and sixty thousand
dollars annually, Or 81 per cent. on the
capita stock.
Q Is that money paid directly into
the tInasary9
4 Yes, sir.
q What expenses are there! What
salaried officers have you?
A We have q president with salary
Of $50 pr month; former secretary
(Mr. Stagg) who receives 800 year il
the nature of pension; the salary ol
the secretary and treasurer is 1926 PEI
month. We had a trustee tor the sink
ing fund until last year at a salary o.
81 900 per annum' This Office ceased
the 31st of January, 1889. The com
pany now has nothing to do with tn,
operation of the road under its lease te
the Richmond and Danville company.
Q. What is the average expense O
the meeting of the board of directors pc
annum9
A. The average expenses of the met
ing of the board of directors per anrnn
is about 5000 Of other expenses ma,
be mentioned the interest on the bonde,
!, debt of the road, which was $16.SOO
This ceased November 1888 The take
paid on the real and personal propert
of the read for the past year were $3.50
This was a little less than usual Tn
{ road has no source of income except tn
rental OF the f. & D. road the rental
from some little real estate and the pre-
ceeds arising from the sale of some real es
, tate now and then. This amounts to abou
+ 5000 per annum. The running expense
of the read does not exceed 500
per annum since the stoppage OF tn
e payment of the interest on the bonds
D The road borrowed $60,0 to assis
G in paying off the bonds of this amour
= SO, 900 mas been repaid. This loan beal
interest at the rate of 6 per cent. an
9 belongs to the annual expense Of til
Il company. The annual net earnings
q the road since 1888 have exceeded pt
g cent. This appears when it is remen
g bered that the road receives rental ,
six and a half per cent on the capt.
stock.
The management of the read has u,
been conducted so as to prevent the z
y profits Of the company from exceedlr
l. per cent. per annnm.
The road receives $13O, 900 every s.
months from the R. & D. road as rents
Of this amount $11O, 900 is immediate
n declared for dividends. The other mon'
l. is pretty we'll paid out in taxes on re
.s estates, debts, etc. The road he's iu
paid about $6, 000 FOR real estate IN ks
u eigh for a site for the proposed ne
g Union depot.
% % The company now has less than $40
~ in cash to its credit. 1t had $4,000
% H%D the defunct State National bank, viii
- = is worthless.
u The Richmond g. Danville company,
- which the N. y. road is leased, is und
contract to pay the taxes OF the road
-. any amount not exceeding $40, 600.
Mai Jno. y. Graham, who acts as
" torney for the N. O. road, was next
W amned by the attorney general.
i'll He said the valuation of the road-b
in at the last assessment was made $l2, .
Ir- per mile. This was made in 1858. l
lis road cost $40, 900 per mile. The Rle
st mond & Danviie company pays all {