The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1896-12-15
GOV. RUSSELL ON THE 90 YEAR
LEASE.

AN 9AA4AS OAAS EANCSGA4CAS.
Governor-e elect Russell was inter
viewed by the Wilmington Messenger
last week on some important questions.
His opinions are here presented:
They say you changed your ground
on the silver question after the st.
Louis C%onvention9
81 do not claim absolute consistency
on that. However, I said time and time
again in the campaign that 1 did not
agree with the ST. Louis declaration in
favor of the gold standard"
Will you give your views with re-
gard 70 the lease Of the North Caro-.
lima Railroad and the Atlantic and
North Carolina Railroads
Yes, | have opinions as to both, but
they are not the result of close exam
inatiOn and mature thought. If any
body a convince me that they are er
roneous | will change or modify or
confess error. the State owns three
millions out of four millions Of the cap
ital stock of the North Carolina Rail
road. Unlike most railroads there is
no mortgage or incumbrance on it. To
raise this three millions which the
State paid for this stock, it i1sued it's
OWL 6 per cent bonds and pledged the
stock as collateral tt secure the bond
holders. There are now outstanding
of these bonds about twenty eight hun
dred thousand dollars. In 1872 this
railroad company leased itself to the
Richmond and Danvjlle (now the
Southerr) Railroad Company for q
rental of 6 per cent on the four mil.
lions of Stock. By this the State got 6
per cent on its three millions and the
private Stockholders = per cent on their
n million. So that for twenty years
the State has been receiving $3.50, 600
a year for it's stock and paying out
$l68, 900 a year to the bondholders,
leaving say $12, 600 a year, cut OF
which, I presume, there have been
some expenses paid by the State; so
that substantially the State has Eeen
collecting this rental with one hand
and instantly paying it out with the
other, leaving little or nothing for its
treasury. This North Carolina railroad
is, or ought to be, one of the best rail
road properties in America. The lease
expires shortly after the year 1900, The
Southern Railroad Company has its
main stem in Virginia on our north,
and thousands of miles of railroad 80
the south Of US. This concern is cap
italized for an enormous amount of
money and hundreds Of millions Of it's
securities are held by ~millionaires in
New York and London. When these
m%illionaires r~eorganiz9d the "Richmond
and Danville" and converted it into
the southern" they knew that their
lease on the North Carolina Railroad
was about to expire and they took
their chances Of buying it, or obtain
ing a new lease, or of making them
selves independent by paralleling it
from Greensboro to Charlotte. They
have not paralleltd it and, if our legis
lature is equal to its duties, they will
not be allowed to do it. Soon after the
adjournment of the last fusion legisla
ture, these railroad kings obtained
from the present Democratic Governor
a renewal of this lease for ninety nine
years, agreeing to pay come inconsid-
cradle amount IN addition to that
which they had been paying. II I had
been Governor, l would have said to
these princes Of plutocracy q few plain
and simple words. Now, gentlemen,
you own the Southern Railroad Com
pany. You have got u~ncounted mil
lions in it, behind it. The North Caro-
lima Railroad is indisp >neable to you.
You cannot live without it unless you
parallel it. North Carolina is the own
or of three fourths Of this property. IL
this case, it so happens that the owner
ia a sovereign power to protect and en-
nance the value of its property which
belongs to its people. You shall not
parallel it. II you try it I will have a
Legislature here in this capito! which
will stop your operations before you
ever lay a rail. The State does not
want to operate this railroad. We do
not want it in politics. We need money
for the schools and to lower our taxes
We are willing to sell three fourths of
it TO you. But you have got to pay for
it. You own this great chain extend
ing from the waters of the gulf to the
| Potomac and the Chesapaake-ali of it
except one link in the middle. That
link Ia oIlrs II ia the golden link