The news & observer., 1897-01-08

| cinia! had issued bonds TO run for hun
| IRE years. and that long term bonds, not
| only 6f the government, but Of the States
| and municipalities were negotiated at
| lowet rates OF interest and sold for higher
| prices than short term bonds OF even
| higher rates. As an illustration Of the
| trutE of these well established laws
| Of finance, the stock OF this company
| advgnced after the lease from 100 to 100
per share. IT is well known fact that
| the conditions OF railroad management
| and operation and transportation have
| greatly changed since 1871. The past
| quarter OF century has been marked by
| it's vast increase in railroad mileage, and
| North Carolina has kept abreast with
| her sister States in this respect. The de-
| mands of business require quick connec-
tions and rapid transit. it requires
throagh trains for both passengers and
| freight. Twenty-Five years ago it would
seen. that the North Carolina Railroad
ought to have been profitably operated
as ;.n independent line; the conditions
were favorable. higher freight and pas
seng|r rates, practically free from compe-
titioH from Charlotte to Goldsboro, yet
the records of the company show
that's the first dividend was de-
clarGd in July, 1859, OF per cent to the
State and per cent to the private stock
holders; the second in July, 1860 Of 3 per
cent?: none in 1861 Dividends were de-
elared during the four years of the war
il Confederate money, and paid in Com
federate money. 1T Is not important TO
dwell upon these dividends, because the
Supreme Court OF this State declared
Il Ity-,I IL, ,Ia
ton of the charter After the war the
first dividend was declared in July, 1868.
Of 6 per cent, but paid in S per cent mort
gage bonds OF the company. No diyi-
dend was declared in 1869 1870 or 1871,
and .none until after the lease to the
Richmond and Danville Railroad Com
pany. Operated as an Independent and
separate road, the road was a failure as
a pager Of dividends TO the State and the
private stockholders, and the stock sold
for mere trifie. The difficulties and un-
certaintes of an independent manage.
ment, however wisely conducted, have
been greatly increased by the building
since then OF other roads which tap it at
nearly every important point between
Goldsboro and Charlotte. And it may
be safely said that operated rs an inde
pendent road it would soon be bankrupt,
it is, however, valuable as q link in n
great chain OF railroads running North
and South, and now, since the Southern
has established terminal facilities at Nor
folk, east and west. The certainty OF
failuTe is put almost beyond doubt, when
it is ascertained that during the year end
ing June, 1895, the receipts for through
business on the line Of the North Carolina
Railroad was $657 900, and S56S,000 for
local: business.
By the term through" business was
included only the receipts derived from
traffic which passed over the North Car
olina: Railroad from one division Of the
Southern to another, or the business
which was under the absolute control OF
the Southern, and which it could divert
at its pleasure. BY the term Local
business was included not only that which
was strictly local to the North Caro-
lint Railroad, that is such business as
both Originates and terminates on the
road, but also included that which
comes from other roads and terminates
on the, North Carolina Railroad destined
to other roads. A large proportion OF
this business termed local could be divert
ed by any line which reached the impor-
tant towns OF Greensboro, Salisbury,
Charlotte, Durham, Raleigh, and Colds
boro.
Under this condition Of affairs the duty
devolvel upon the Governor and the
Board Of Directors to take such steps
as could in their judgment best preserve
the interests OF the State, the largest
stockholders These are the reasons
briefly stated which induced the manage
ment OF this property to yield to the inn
perative demands OF the peculiar situa-
ton that the relations Of his road should
be permanently esta ablshed in respect
to both 3ocal and interstate traffic in
view Of the important changes OF it's ter
minal connections, and large expenditures
required by successful modern railway
operations. We now have great
through tine not only extending from
Charlotte to Greensboro, but from Char
lotte TO Selma and beyond that point
other railroads in the State are profting
by this connection. And it may be safely
said that there is no other long term In
vestment IN North Carolina bearing SO
good a rate OF interest as seven per cent,
and the stock of the North Carolina Rail
road is to 'day the most valuable stock
bearing Fixed and permanent rate Of in
come to be found in the State.
By its loIsg duration the State is guar
snteed against loss from change Of rates
AID traffic wars, from the construction
of competing li?cs and from the money
dangers which threaten such securities.
The action Of the Board Of Directors, ap-
proved by the Esecutive, is submitted 10
the people 81 the State in entire cent?
dence that upon dispassionate consider
alton it will.mcet the universal appro5a'
Of every impai tial cit zen.
/ have the honor to transmit herewith
the terms in full of tie lease Of the North
Carolina hailroad to the Southern, so
Chat you can'be fully advised Of the con-
tract,
ATLANTIC: AND NORTH CARROLL
Ma RAILROAD.
From the beginning OF this admins
tration it has been its avowed policy to
pIana avarv r.ieca of DronertV uDOu the