Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1897-02-11
THE N. c. R. R. LEASE.
QUESTION OF ABOLISHING TT
NOW BEING URGED

ernOr Russell The Bill as
Drawn and the Matter as it
Stands.
The ARGUS has an abiding faith
in the integrity of Democratic in
situations and Democratic admin
observation-disclosures they r from
the people, and depend upon the
people. The administration that
is not content with reasonable
emolument for its franchises and
takes advantage Of its powers to
drive a sshard bargain is as much
a Shylcck in morals as the despic-
able Individual usuer and as rep
rehensible a violator of the code of
ethics and the spirit of law as the
highwayman who ssholds up'' and
robs the defenseless traveller in the
mountain Businesses.
The State that would teach good
morals to its people should itself
be consistent. The State that says
to its individual citizens, "you
shall not lend your money for
more than 6 per cent, !" should it
self abide within the bounds of
reasonable morals when negotiat-
ing returns for its investments.
We have no interest in the
North Carolina Railroad or in
ssThe Southern" except as a citi-
zen interested in the welfare Of
the State. The rental, 7 per cent.
for ninety-nine years, with an
agreement to pay the taxes and
keep the road in repair, has al~
ways seemed to US a most favor
able one to the owner of the road.
1t is a rule, universally applica-
BILE to contracts, that the rate of
interest is low in proportion to
the length of the contract; it will
be observed that all Government
bonds draw a lower interest. and
sell for a higher price, the longer
they have to run. The rate of IN
terest, too, is falling from year to
year !; SO much is this true that it
is not an uncommon thing for
private individuals to borrow
money on long time in large
amounts, at 4 and 5 per cent.
The Government gets money at
a much lower rate. To an I'M
prejudiced mind, it does seem,
then, that Z per cent. for ninety
nine years is a most advantageous
n to the party who is to receive
this high rate of interest for so
long a time.
If the tendency toward lower in
terest continues for the next GEN.
fury, at the end of this lease in
terest will be perhaps Il or, at
most, 2 per cent. on long time
contracts, and stock in the North
Carolina Railroad will be worth
$500.
Markets are not much infu>
enced by sentiment, and capitalists
are apt to know a good trade when
they see one. If this is SO, does
not the instant rise in the stock of
the North Carolina Railroad from
90 cents to $1.26, 1--WE believe,
we have not the exact figures be-
fore us), upon the making of the
lease, prove almost conclusively,
that it was a good contract for the
North Carolina Railroad
The lease may not have been
made at the very highest
price that could have been extorted
from "The Southern but we in
cline to the opinion that a lease
for ninety-nine years at Z per
cent. is a better contract than a
lease for twenty years only, at 10
per cent, for we believe that a
Government bond that would run
for ninety-nine years could be
f1oated at thrce-tenths lower rate
of interest than could one that had
only twenty years to run.
The private stockholders, al
most to a man, approve the
lease; this is a touch stone, from
whose indications, it would seem
there could he nc appeal.
But granting for arguments
sake, that the lease is not a prov~
ident one, what good can come
of introducing a bill to amend'it?
The Supreme Court has decid
ed that the authorities have the
power to lease it: and tie prop-
erly constituted authorities have
leased il; and this, in our opin-
ion, should be an end of contro>
versy.
There ere worse things than a
bad bargain, ard one of these, is,
q disposition to violate contracts
So much ere the great men who
framed our Federal Constitution
Impressed with this truth, that
they made it a part of the fun~
damental law of this federation
of States that no State should
pass any law impairing the oh
legation of a contract.
In our opinion, the Act pro-
posed is unconstitutional in two
particulars at least; in that it re-
ouires a foreign corporation en-
gagged in commerce to take out
license to enable it to do busi>