The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-09-24
North Carolina Railroad for the year
ending June 30tb, 1895:
Total earnings. $3.50 88 IS S568 506 OIL $1,I25 8

Total earnings. $500 IS 1858 sos OIL $1,E25 IS
The above statement is important in
showing what chance we would
have IN q struggle for existence as an
independent line. We would start out
minus the through earnings, for none
or 1t Is put on or taken eff at any of
our stations, and we would probably
lose between one third and one half of
the local earnings, which would be
caused by the Southern Railway Com.
pany haviI & roads into Durham,
Greensboro, salisbury and Charlotte
which would leave Jul total earnings
at about the same as we now receive
as rental.
To be taken into consideration with
this is the fact that the old lease of the
North Carolina Railroad permitted the
Richmond and Danville Railroad Com.
pany, it's successor or assigns, to re-
turn the North Carolina Railroad prop
erty in a like condition to that in which
it received it in 1871, and gave the
l. s5ee four months at the end of the
lease to remove all batterments.
The railroad equipments of 1871 is
midway between the railroad equip
ment of to-day and the stage coach
and road wagon of old times. You
can readily see that it would take sew
eral hundred Thousand dollars to re,
place betterments and quip the road
for competitive service.
In other words, the North Carolina
Railroad, received back in the like con
dlClon of 1871, and its present environ
ment, could not pay a sun equal to
half the yearly rental, and it's very ex
letence might be jeOpardjZed. Fol- in
this day of railroad systems, ar indie
pendent railroad (no longer than oure)
running betWt en- 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 al
ready stated that the directors of 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
evidenced by the fact when the r CHI
mond and Danville Railroad Company
became ~insolvent it's receivers paid Us
in full, and that without giving Us any
trouble.
This is a strong point, for in dealing
" Iva q ~ OO4 ROA0t4OA AL q A41OOO4
of this kind, you are virtually deal
ing with an ~lnsolvent party s Iss9 their
prC perty is always covered by mort
gage, and they can default at any time
they SIC fit, so that part Of our prop
erty being part of the trunk limo 1t
mikes the payment of rental more
certain.
After a conference with the South
ern RailWay Company your directors
leased your property TO 1T for ninety
nine years; said lease commencing
IarcdaFV- IsG. 8 the remainder of
the old lease beng cancelled. The fol
lowing are the most Important points
of the new lease:
1st. For six years the S: uthern Rail
way Company will pay $3.50, 600, being
6 i 2 per cent On the capital stock OF
81, 600, 600, and sc, 600 over to pay the
North Carolian Railroads organization
expenses.
2ud. 1t will pay all taxes, State,
county, town, township and United
States levied upon the property, income
or franchises of the road, whatsoever,
and further agreeing that the North
Carolina Railroad Company may sur
render its exemption from taxation.
3cd. The old lease only required the
Southern Railway Company to keep
the road up to the condition it was in
UP to 1871, and allowed it to move all
improvements aid betterments. The
present lease requires the Southern
Railway Company to keep the road up
to the condition it was in up to August
1896, and provides that there shall be
no claim or liability laid upon the
North Carolina Railroad Company,
but all impI Ovements put upon it shall
be the property OF the North Carolina
Railroad Company.
4th. The Southern Railway Com
pany shall comply with all demands Of
the r abroad Commission in regard to
depOts, etc.
5th. After six years the rent shall
be $3.50, 900 per year for SO years, be
ing seven per cent. on the capital
stock and 5000 a year for organization
and all taxes.
9Th. The Southern Railway Com
pany is RI quired to deposit in the First
National Bank of Charlotte $175 600
in cash or U. s. bonds to meet default
in semi annual payment, to pay taxes,
and to meet any Judgment that may
be recovered against the North Caro-
lima Railroad Company, for any wrong
or breach of contract on the part OF
the Southern Railway Company.
This lease insures you net income,
free of taxes, of Six and a half per cent
for six years, and sever per cent. for
ninety three years, and will undoubt-
eddy make your stock the most desir-
able investment In this State.
renew the recommendation made
by my predecee sors, that the stock
holders IN the meeting assembled, &C
4a~A %L- @~~-I~-~~& -
1891, In regard to the terminus Of your
road at Goldsboro. y1o
R~asnectful1v sI1hmitted