The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-09-03

In other words, the North Carolina
Railroad, received back in the like con
dition of 1871, and its present environ
ment, could not pay a sum equal to
half the yearly rental, and its very
existence might be jeopardized. For
in this day of railroad systems, an in
dependent railroad (no longer than
ours) running between two interior
towns cannot exist if those who control
the railroad system that has occupied
its territory, want it,
You will see from what I have already
stated that the directors Ct the North
Carolina Railroad Company were not
in a position to dictate terms, and they
believe they have made a fair and
equitable trade with the Southern
Railway Company.
Our property is Of greater use to it
than any other railway system, as evil
denced by the fact when the Richmond
and Danville Railroad Company be
came insolvent it's receivers paid us in
full, end that without giving US any
trouble.
This is a strong point, for in dealing
with q railroad corporation in a mats r
of this kind, you are virtually dealing
with an insolvent party, as their prop
erty is always covered by mortgage,
and they can default At any time they
see fit, SO that part of our property be
ing part Of the trunk line, it makes the
payment OF our rental more certain.
The terms of the present lease are six
and one half per cent, on the capital
stock, six thousand dollars for corpora
ton expenses, and all taxes Of every
kind, and at the end Of six years CHE
time when the ole. lease would expire),
the per cent, N the capital stock is in
creased to seven per c, Mt, The term
Of the lease IS ninety, nine years. Not
being able TO ruu the road as an indie
pendent corporation, a long lease is
much better than a short one, which
you can readily see in examining the
clause In the old lease that permitted
the North Carolina Railroad 60 be re
turned in the like condition in which
it was received in 1871, and the clause
in the new lease that prevents the
Southern Railway Company from
making any claim against Us for bet
termeuts at the end of the lease whether
it be by default or other wise. Railroad
betterments cost such large sums Of
money that no corporation will keep a
leased road fully up to the times and
grant the lessor the betterments at the
end of the lease, except the lease be s
long one.
This makes so much better security
for our stock that l have no doubt that
it will greatly increase it's market
value, T2ere are some other clauses
in the lease hat are very benz fl ;ial,
but iG would make this c1mmunic alton
too long to discuss them in detail,
The Southern Railway Company vas
not unreasonable in making an if r at
this time to renew the lease. 1t has
$ secured terminal facilities in Norfolk,
' : q NNSAlCA ~ PuU CuG dCh 1AOLII
Greensboro to Raleigh in the same con
djtiOn as from Charlotte to Greensboro,
AID make other hetterments that they
cOuld not undertake under & lease with
only aix years to run, even with the
privilege of removing them. Besides
this, the Southern Railway Company
has over three thousand mules Of rail
way south Of Charlotte, and hundreds
of mile s north OF Greensboro, and they
wanted to know now whether or not
they could re lease the road, or would
have to build their own line from
Greensboro to Charlotte.
So far as | can learn, the private
stockholders, owning n million dol
lars of the stock, are we'll pleased, and
think the les s "a good one Surely this
ought to be some evidence that the
lease was a wise business transaction
The directors of the North Carolina
R abroad Company only are responsible
for this lease, and they will cheer fully
give to any citizen information in re-
gar to it. Respectfully,
S. B ALEXANDER, Pres.