The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1896-07-28
N. c. A
Prof Graham Thinks the Manner of
Leasing the Road Should be an Issue
in the Present Campaign.

hlDGEWAY, N. y.
The Republican and Democratic
State Conventions passed over in
silence the lease of the North Carolina
Railroad to the Southern Railway Co.
1t is hardly probable that 80 in ort
ant a matter was overlooked. The
mighty power of this giant corpora
ton, yer thus early in the century"
of it's new lease, makes the politicians
tremble.
The next Governor of North Caro-
lima, the two Supreme Court Justices
to be elected, and the incoming legisla
ture will decide whether the North
Carolina Railroad, built to develop
North Carolina and her seaports, is to
pass for a century into the hands of q
foreign corporation hostile to the best
interests of North Carolina.
Under the thirty years lease the
Richmond and Danville Railroad paid
six per cent. interest on the 81 900, 900
Of stock of the N. @. Railroad, So, OOO,-
600 of which belonged to the State and
81, 900, 900 to the private stockholders.
The N. @. Railroad, according to the
report of the Railroad Commissioners
for 1895. cost 81, 975 627 So. Originally
81, 900, 600 of construction bonds we're
issued. The 1915, 627 so has been ex
pended out Of the earnings of the road.
sc that the actual cash cost of the road
approximates IS, 900, 600.
Under the ninety-nine years lease,
the State of North Carolina and the
private stockholders are to receive for
the first six years a rental Of 1866 600
per annum, and for the remaining
ninety-three years Of the lease 1886, 600
per annum. That is the State and
private stockholders are to receive
$6 900 and 81 per cent. on 81, 900, 900 for
six years, and Sc, 900 and seven per
cent. on 81, 900, 900 for ninety three
years. In addition, taxes are to be paid
by the Southern Railway 90.
1t is said that this is q most excellent
trade on the part of the State. Let US
consider whether this deal for a cen
fury is any better than the thirty years
lease of unsavory memory.
Allowing that the N. @. Railroad is
worth only it's actual cost, to-wit, 81,
975. 627 so, the Southern Railway pays
5 "a per cent, the first six years of the
lease and 5 50 per cent. for ninety three
years.
Toe 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 &C
tual cost; to wit, 81 975 627. so, would
amount at the expiration of the ninety.
nine years lease to S., 695, 829 rs, and
that, too, without one cent of even
simple interest on the semi annual pay
ments.
The pretense that the State is receiv
81 per cent. and 7 per cent. on her in
vestment is untenable.
The aggregate value, as taken from
the Auditors reports, of the real and
personal property as listed for taxation
in the fourteen counties through which
the N. @. Railroad runs was in 1871,
the year of the first lease, $26, 854 353
In 1895 the value of the same was $63,
851 1873; an increase of $36, 997 14O, or
1877 per cent. increase in the wealth
listed for taxation. The population of
these fourteen counties according to
the census of 1870 was 232, 212. In 1890
the population of the same territory
was 334, 735; allowing the same ratio of
increase the population Of these four,
teen counties approximated, in 1895,
81, 555, an increase of A per cent.
Ought not the rental Of the N. O. Rail
road to be higher now than in 1871?
In 1871 North Carolina bonds were
worth forty cents in the dollar. North
Carolina Railroad bonds were worth
the same. By the Judgment of the
United States Circuit Court in the
5wasey suit, these bonds were declared
a lien on the States stock in the N. @.
Railroad. This decision was upjusti-
fable, and would have been reversed
by the Supreme Court of the United
States on appeal. Such appeal was
withdrawn by consent" and the hold
ers of these bonds worth only forty
cents in the dollar received in their
stead new six per cent. bonds now
worth 100 on the market.
ALI political parties should unite in
having the lease declared invalid. The
writer has no hostility to the Southern
Railway, nor to any corporation, but
he believes in State control at least of
it's own roads.
IL ALo .:noA- n:nn -onnnl lnnnn u 81