The Caucasian. (Clinton, N.C.) 188?-1913, 1896-07-23
THAT 90 YEAR RAILROAD LEASE.

lence the lease OF the Norm Caro-
lima railroad TO the Southern railway
company. II il hardly probable
that so important matter was over
looked. The mighty power OF this
great corporation, even thus early IN
the century" Of its new lease,
make the politicians tremble. The
next Governor OF North Carolina,
the two Supreme Court Justices to
be elected. and the incoming Legis-
lature will decide whether the n. e.
X. r.. built to develop North Caro-
Ina and her seaports, is to pass for
a century into the hands Of foreign
corporation hostile to the best inter
ests Of North Carolina.
Under the thirty years lease the
Richmond q Danville railroad paid
six per cent. interest on the 81 ,OOO,-
600 of stock of the N. G.. X, r.;
$4,000, 900 Of which belonged to the
State, and 81 100000 to the private
stockholders. The N. G.. X. r., &C
cording to the report Of the Railroad
Commissioners for 1898, cost - &c.,
G27 J0-originally $4,000, 900 of con-
struction bonds were issued. The
1915, G27.5O has been expended out
of the earnings ofthe road, so that
tho actual cash cost of the road APP
proximates 100000.
Under the ninety-nine year lease
the State of North Carolina and the
private stockholders are to receive
for the first six years a rental Of
$266, 600 per annum and for the re-
naming ninetythree years Of the
lease $2SG, 600 per annum. That is,
the State and private STOCKHOLDERS are
to receive So 600 and 81 per cent. on
100000 for six years, and $4,000
and seven per cent. on 100000
for ninety-three years. In addition
taxes are to be paid by the Southern
railway company.
1t is said that this Is most excel
lent trade on the part of the State.
Let us consider whether this deal
for century is any better than the
thirty years lease Of unsavory mem
Dry. Allowing that the North Caro-
lima railroad is worth only it's actual
cost, to-wit, 1915, G27 so, the South
orn railway pays 5 81 per cent the
first six years of the lease, and 5.62
per cent. for ninety-three years.
The difference between the real per
cent. paid on actual cost, and 81 per
cent. for six years and seven per
cent. for ninety three years on this
same actual cost to-wlt, 81 ,975 ,627..
so, would amount at the expiration
of the uinetv-nine years. lease tC
$6,695 $3.50, aud that, too, without
one cen. of even simple interest OF
the semi-anuual payments. Thu
pretenss that the State is receivins
81 per cent. and seven per cent. OF
her investment Is untenable.
The aggregate value, as take1
from the Auditors reports, of tn
real and personal property as hste'
for taxation in the fourteen countie
through which the N. C.. II. r. runs
was, in 1871, the year of the frs
lease, 1854 1853. In 1895 the valu
of the same was $63, ISL ,493, an in
crease of $36, 997 ,l4O, or 1877 per cent
increase in the wealth listed for tax
alton. The population of thes
fourteen counties, according to tn
census of 1870, was 232 ,212. In 1S9
the population of the same territor
was 334. 735; allowing the same ratl
OF increase, the population of thes
fourteen counties Appropriated i
1895. 81 $50, an increase of A pc
cent. Ought not the rental of til
N. G. Il. Il. to be higher now tina
in 1871?
In 1871 North Carolina bonds we,
worth forty cents on the dollar. !
G. X. X. bonds were worth the sam,
BY the judgment of the Unite
States Circuit court in the Swase
suit these bonds were declared
lien on the States stock in the
C.. Il. R. This decision was unjust
fable and would have been reverse
by toe Supreme Court of the Unite
States on appeal. Such appeal W;
withdrawn by consent" and Il
holders Of these bonds worth on
forty cents on the dollar receiv,
in their stead new six per cen
bonds worth now 100 on the marke
All political parties should uni
in having the lease declared invali
The writer has no hostility to Il
Southern railway, nor to any &C
poration, but he believes in Sta
control, ut least, of its own roat
LIZ the ninetynine year lease is {
lowed to stand, it is but a queati
of time when the Southern railw;
company will own or control all t
railroads in North Carolina.
ready it has its covetous eye taste
ed upon the Cape Fear & Yadk
Valley. 1t does not wish at prese
to absorb the entire system but or
part oft. The C. F. & Y. V. s.
tenn is next TO the n G.. r.. r. a