The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-08-17
-GoyERNoR FAvoRED LEASE.


His FxceIIency Thought n Would bt
For the Best Interest of the State II
Made on Favorable Terms Bird in
the Hand worth two in the Bush, and
SO the Big Corporation Rags the
Game for Bagatelle Six Years In
Advance, and thus Splits in the Face
of protesting North Caroknians who
Own the Property.
A reporter of the NEWS AND ORSERNER
called at the Governors Mansion last
night for the purpose of finding
oft, if possible, some thing con-
corning the Burlington meeting IN
which was being canvassed between
the Directors of the North Carolina Rail-
road and the Southern Railway, the
question of whether, six years before the
expiration of the lease, the North Caro-
LIMA railroad should be released to the
Southern.
For all during yesterday, there had
been continuous enquiry among the
citizens as to the outcome Of this meet
ing. It seemed almost impossible to get
any word concerning the matter, and
not, indeed, until late afternoon did any
message come. This message stated
that the representatives Of the Southern
railway had just been invited to appesT
in presence of the directors.
In the meantime, as was stated,
a NEWS AND OBSERVER reporter called
on the Governor, who said he had up to
that time received no news, but some
time later the Governor gave out the
following telegram from President S. B.
Alexander:
BURLINGTON, n. c., Aug 16.
Governor Elias Carr,
"Raleigh, N. @.
Terms of the lease completed and
agreed to on terms stated to you by me.
The lease is much more favorable than
the old one.
(Signed) rs. B. ALEXANDER "
The governor had been asked when
called upon if he had given any instruc
tions or suggestions to the directors pre-
viously to their meeting.
81 decline to be Interviewed" he re-
piled, ''or to make any statement for
the press aud, he added, you will hear
tonight what they will do, if they do any
thing"
The Governor was asked il he thought
they would do anything.
He refused to be interviewed, but said
finally that it was likely they would, pro
vided they got favorable terms.
care you in favor of the leases being
made at this time?"
81 am, provided it is on favorable
terms"
The Governor repeated this later, say
ing that he thought such a release on
such terms would be for the interest of
the State.
The Governor was asked as to legal
point raised during the day by Raleigh
lawyer namely that the contract of lease
by the Legislature extended for six years
longer and, therefore, could not be
infringed upon now by directors.
This point was brushed aside by the
Governor who said that the Legislature
made no contract, but that the power
of negotiation with the railroad people
was put in the hands of the directors
where it is now.
The reporter was about to show the
Governor some figures touching the
lease terms of Georgia railroads, but was
cut short by the Governor, who did not
care to be further interviewed. The
Governor said, however, that he knew the
proposition that had been offered to the
directors when they last met here, and
it only remained for thar committee of
directors to submit the proposition to the
full board, which would probably be varied
some before final acceptance. But it seems
that there was little if any variation,
the Southern Railroad, having, it is quite
certain, offered at the last meeting 81 per
cent.
The figures of the Georgia railroads
above referred to are, first, the lease
money of $35, 900 per month, paid for
the Western IL Atlantic Railroad, which
runs from Atlanta to Chattanooga; sec
cond, 5000, 900 year paid for the Geor-
gia Railroad. The first road is leased
by the legislature, and the second by
the stockholders. both roads being owned
by the State of Georgia.
1t has beeen thought by some that the
Governor favored this lease now at an
increased interest, as that would remove
the tax exemption, in fact the Governor
said not long since that he was opposed
on principle to the exemption of this
road from taxation when others were
not exempted.
There is another reflection that comes
from the telegram of President Alexan-
der to the Governor, namely that the
lease was agreed to on terms stated to
the Governor by Mr.. Alexander.
Does this mean that when Mr.. Alex
der was in Baleigh any statement was
made by him to the Governor of terms
that were last night agreed upona II
so, the Raleigh meeting of the commit
tee with Vice President Andrews was
practically conclusive, and was simply
accepted by this meeting of the Board.