The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-12-01

tfNEN can convince AtlG AfANt AliNN CIV Va
roneous / will change or modify OF con-
fn,4 error The State owns three mill
inns ont az four millions Of the capital
stock Of the North Carolina railroad.
! Unlike most railroads there is no mort
gage Of incumbrance on it. To RAISE
{ This three millions which the State paid
for this stock. it issued its own . per
! cent bonds and pledged the stock as col
/ lateral TO secure the bondholders. there
are now outstanding OF these bonds
| about twenty-eight hundred thousand
dollars. In 1872, this railorad company
leased itself to the Richmond and Dan
Vile NOW the Southern Railroad Com
! the private stockholders & per cent on
four millions Of stock BY this the State
got 6 per cent. on it's three millions ana
the private stockholders q pc recent on
their one million. So that for twenty
years, the State has been receiving $lSO,-
ono wear for it's stock and paying out
S16S. 900 year to the bondholders, leay-
ing say $4,000 a year, out of which,
| presume, there have been some ex-
penses paid by the State; so that sub
stantially the State has been 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 railroad 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
to the south Of us. This concern IS
capitalized for an enormous amount Of
money and hundreds of millions Of its
securities are held by millionaires in
New York and London, When these
millionnires re0rganized the Richmond
and DanyilIe" and converted il into the
Southern they knew that their lease
on the North Carolina railroad was about
to expire and they took their ch2nces
Of buying it, or Of obtaining new lease,
or of making themselves independent by
naralleling it from Greensboro to Char
lotte. They have not paralleled it and,
il our Legislature is equal to Its duties,
they will not be allowed to do it. Soon
after the adjournment of the last fu-
sion Legislature. these railroad kings
obtained from the present Democratic
Governor renewal OF this lease for
ninety-nine years, agreeing TO pay some
inconsiderable amount in addition to that
which they had been paying. II | had
been Governor | would have said 10 these
princes Of plutocracy a few plain and
sinnIe words. Now. gentlemen,
you own the Southern Railroad
Company. You have got uncounted
millions in it and behind it. The
North Carolina railroad is Indispensable
TO you. You cannot live without it I'M
less you parallel it, North Carolina is
the owner Of three-fourths of this prop
etry In this case, it so happens that the
owner is a sovereign. The State will
exercise its sovereign powers to protect
and enhance the value Of its property
which belongs to its people. You shall
not parallel it. If you try it, viii have
Legislature here in this capitol which
will stop your operations before you ever
lay a rail. The State does not want 10
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 extending from the
waters Of the Gulf to the Potomac and
the Chesapeake-all Of it except one link
i'm the middle. That link is ours. 1t
is the golden link Without it The rest
Of your chain is nothing but iron and
some Of it old iron at that. Your crowd
is al for gold. This is one time when
the people have got a piece Of gold. You
need it, You have got to have it. You
cannot live without it. You can buy it
at our price. II you do not buy it, we
will break your chain and then you can
sell your part of it for old iron. Now
take your choice. Buy of bust Now
are the terms You retire the States
obligations on it's bonds to the amount
Of s.. 100000 and give us about two and
a half millions in cash and our three
fourths OF this property is yours. As
to the other one-fourth (which largely
belongs to rich people, many or most OF
whom are non residents) it is none of
my business. When you get three
fourths you get control of this railroad.
The highly respectable and high toned
methods Of corporate management which
prevail in what you are so fond Of call
ing the business world will authorize
you to wreck this minority stock You
can swear that you viii not do it until
your faces are as red as an anarchists
banner; but in all this land there is not
one man of sense who will believe you.
We know that when you get three
fourths Of this property you will have,
for all practical purpose, four-fourths Of
| it. You are really buying from us not
| three-fourths, but all Of it. You viii
| so manage the road as to pay no dividends
to the private stockholders. You will
run down their stock on the market; and
ultimately you will buy them out at
nominal prices. That is the genteep
thing. By these and cognate methods
you and your predecessors have acquired
wealth to an extent that should be be-
yond the dreams Of avarice. Up to this
time jurists and statesmen have invented
no way to prevent such iniquities. 1t
is not my business, as the chief
servant of the people Of this
State, to SO manage their property as to
enhance the value Of the property of
private individuals. / have nothing to
do with the minority stock. It's owners
are entitled to the same equal protec-
ton Of the law upon this as upon any
other Of their property; their cattle or
lands or factories-no less and no more.
If they happen to be the owners of a
species of property which is liable to
be eaten up by the cannibals of Wall
| and Lombard streets, it is no concern
OF ours save in so much as they may be