The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-08-28
THE NINETY-NINE YEAR LEASE.
An Able Argument Against the Lease
Backed up by Facts and Figures.
Biblical Recorder.


Biblical Recorder
The lease of the North Carolina Rail-
road for period of ninety nine years to
the Southern Railway has not met with
the approval of the people of the State,
whose interests the Board of Directors
and the Governor are expected to have
solely at heart. The politicians have
been questioning if the lease is not bad
politics. We have nothing to do with
that, but we can assure them that if it is
bad business, it is worse politics, and it
requires no inancier to perceive that the
lease, the terms of it and the manner Of
reaching them, were exceedingly unbusi
ness like.
In the first place the old lease has six
years more to run. In this time the
opinion of the citizens of the State could
have been obtained land it will yeti. Not
only this, it was unfair to lease the
road without giving other roads oppor-
tunity to bid - unfair to other roads, I'M
just to the people whose interests the
directors were appointed to guard. Sup
pose, for instance, one of those directors
owned property in growing town in
North Carolina, the property paying 81
per cent. on this money invested in it
and bound TO pay this much six more
years. Would that director put aside the
possibilities of improvement in the six
years, put aside the probability of new
bidders in the six years, and lease the
property for ninety-nine years at an ad-
vance of one half of one per cent Would
he put aside all hopes of improvement of
the value of the property in ninety-nine
years, for the sake of a paltry advance
of one half of one per cent?
North Carolina is-growing. Property
is increasing in value. The North Caro-
lima Railroad will grow and increase in
value, but so far as you and l and the
others who really own the road are con-
cerned, it will hereafter be the same for
ever, thanks to the foresight of our pub
lie guardians.
In 1871 when North Carolina Railroad
stock was sold at $40 on the hundred, it
was leased for a period of thirty years at
a rental of 12 per cent. on the capital
stock of 81 900, 900, or $250,000 year;
in 1895, six years before the expiration
of the 1871 lease, the stock now being at
S105 on the hundred (having increased
more than two hundred per cent. in
twenty-four years., the same property is
leased for ninety-nine years at the ad
vance of paltry half Of one per cent,
or $3.50, 900 year.
Further, the seven per cent is to be
paid on the capital stock of 81, 900, 600
The actual cost of construction and
equipment of the road is 81, 975, 1852 80,
(The original capital stock of the road
was 100000; but this has been in
creased to "a, 600, 000) By the contract
made by the directors, only the rental is
to be paid on the 81 100000, and thus
property to the value of 1915, 262 SO is
given to the Southern Railway for nine
tyn nine years absolutely free. OF
course, the lesses of the road will pay
taxes and keep the property in order.
There is not an advantage to the State,
there is absolutely no reasonable ground
for the action of the directors, the States
servants and guardians, the Southern
Railways dupes
When matters stand thus-and the
Recorder has taken time to investigate
before speaking people have to in.
fer one of two things, namely, that the
directors were influenced or fooled. For
one, we hope the matter will be carried
into the courts.
The North Carolina Railroad runs
from Goldsboro to Charlotte by way of
Raleigh, Durham, Greensboro and Sails
bury. 1t was constructed by the State
during the period between 1849 (when
it was chartered and 1856 when it