The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1895-08-29
THE NORTH CAROLINA RAILROAD
LEASE.

THE NORTH CAROLINA RAILROAD
LEASE.
The Pit,sboro Re1oyd comments as |
follows on the action of the directors |
in releasing the North Carolina rail-
road to the Southern for term OF 90 |
years
The Lease of the North Carolina |
railroad is now the chief topic Of dis
cussion in this State, but no discussion
of it can now avail anything, for it has
already been made. Whether this con-
tract is a good one for the State the
future only can prove. Whether it is
the best that could have been made
no man knows. While it may be
a good contract for the State-indeed
granting that is the best that could
have been made-yet we cannot ap-
prove OF the manner in which it was
made. There was too much mystery
and secrecy about it, reminding US
unpleasantly of the manner in which
"Blow Your Horn Billy Smith made
the lease in 1871. We think that be-
fore making contract of such great
importance there should have been
some advertisement for competing bid
ders. An opportunity should have
been offered all other railroad corpo-
rations and individuals to make their
bids and the contract should have been
let to the highest responsible bidder.
If any other railroad company or
even any individual, could or would
have made a better bid offered 4
larger rental-the contract should
have been awarded to such company
or individual. We do not know that
any company or individual would have
made higher bid, nor does anyone
know that a higher bid would moi
have been made, because no oppor
tunity was given for any higher bid te
be made. And herein we think the
directors made a great mistake.
We do not for moment think tina
any director was improperly influenced
in voting for the lease, nor can w
denounce their action as "the crime O
the century," because in the first plac
we know them all to be gentlemen O
high character and strict integrity, ant
in the second place their contract no'
appears to be good one, and it ma
be the best that could have been made
And we further understand that tn
largest private stockholders approve
I and advocated this lease. By it tn
: State will receive taxes from sourc
from which it has not heretofore II
y ceived a dollar, for heretofore tt
. road bed of the North Carolina K. +
2 Co. heretofore exempted from tax;
! tion) will be taxed just like all otht
n railroads and the lessee Ohe Souther
). R.R. must pay this tax. The rent
v to be paid is seven per cent. yea
e which is higher rate of interest tina
the late Legislature will allow any IL
" dividual to charge or receive on ar
O contract, and is greater dlvlder
e than is paid on the stock of a lar|
r majority of the railroads in the Unite
4 States. But while this contract m;
,e now be a good one, yet fifty yea
S. from now it may not then be consi
cred good one, and therefore
4 regret that the lease was made for
re long term as ninety-nine years viii
E. is, practically sale. 1t is not surpr
ID ing that that SO summary sale OF su
valuable property should be severe
criticised, and especially when pub
opinion, so far as it could be asct
tanned before the lease was made, "
~ so strongly opposed to it. We no
IL that the directors will, at an early d;
Ct be able to explain satisfactorily tn
x reasons for their summary and ext
~ ordinary action.