The news & observer., 1897-02-23

90. Gen. Hobe spoke of the distinguish
ed personnel of the Board during the
last 20 years, the growth of the road
and its present fine status As to com
parison, there had been comparison with
the Western and Atlantic from Chat
tanooga to Atlanta in which case the
terminals were. the main elements of
value. The Atlanta and Charlotte went
at a rental of S46S, 900, but it cost 4
times as much as the North Carolina
Railroad and the Southern, moreover,
controlled every road that tapped the
Atlanta and Charlotte which was not
the case with the North Carolina Rail-
road. As to the development expected
in the next 80 years, it may be we'll
known that competition keeps up with de-
velopment. As to the restriction upon
parallel roads, it is well known that the
history of North Caro5na is that any
man who has the money to build a road
can get a charter. He mentioned the
charter from Monroe to Winston granted
by this legislature, which gave parallel
to the North Carolina Railroad, in the
Norfolk and Western. Then the Mocks-
vile and Mooresville possibility was tra-
versed again.
They couldn't get the road to put up
lease money for ten years; they would
build the road for themselves; lease mon
ey for one year was all that could be ex-
pected, but the certainty of rent was the
prevailing cause with us; the old Rich
mond and Danyille had paid us in its
direst times, hut beyond that was the
railroad situation which was controlled
from Atlanta to Norfolk by the South
ern. The road, the General Thought
had expected to get the road for less,
but with a long lease they could give
more because they could afford thus to
put more improvements upon the road ;
they had spent already 100000. Capital
could be driven so far and no farther;
the man who has the money is always
too smart for him who hasn't.
As to the inventory, a complete one
had been taken, which was in the capu-
talization of S4,000,000 He told how the
inventory was taken, and about the bond
Of S130,000 which had been given to Sc
cure the restoration of the property.
They could have declined to put any
improvements ON the road until 1901
for even then it would have been in as
good a condition as when they received
which was according to the terms of the
old lease.
AS to the receipts, he said the gross
receipts We're 81, ,429, ,S04, the local gross
receipts being $615,00O, the through re-
ceipts being SS14,S04 But these local
receipts are increased by the connection
of the North Carolina Railroad with the
Southern, and call it threats if you will
hut business is business, and everybody
takes care of himself; if the Southern
We're taken away from the North Caro-
lima Railroad, the local receipts would
be reduced to probably 100000, which
allowing 60 per cent for operating would
leave. S200,000 surplus.
Az to per cent, the Delaware and
Lackawanna sells for S175 a share pay
ing only 5 per cent. The North Carolina
Railroad practically owes nothing In
answer to questions from Mr.. Manning.
Gen. HOke said the Southern would not
pay the present rental long for the At
lanta and Charlotte; they would build
first; as to the Western and Atlantic, it
was the funnel into Atlanta of the whole
Louisville and Nashville system. From
the competition now to tidewater at Nor
folk, he thought the State had secured
perpetual rental
Cross-eXaminatfon by Judge Avery, as
to the local gross receipts, why should
the Wilmington and Weldon road cost
only So per cent, when the North Caro-
lima cost more? The General said he
knew nothing about these things; he at
tending to his own duties. The Judge
referred to the reports and asked why
salary of the President should have been
returned last year at $25, 900 and this
year at 5000. The General didn't know.
Nor did he believe that the road locally
would make as much now under present
competition as it did in Joe Turner's
time.
The next point brought out was that
the Wilmington and Weldon was in the
same condition now as was the North
Carolina railroad before the lease and
was yet making AZ per cent net.
''Was there not machinery in Burling-
ton i'm 1912" ''Yes, and it would be
put back if demanded Did he think
that they could put the same old iron
rails there. The iron, said the General.
would cost more than the steel The
Generals understanding was that they
nau 10 give bnen as So0Q engines anu
rails as those that were originally there.
There was some delay at first about put
ting up securities called for by the lease.
BY Day: What was the character of
$4,000 securities. The S130,000 had
nothing to do with the S175.000 securi-
ties put up for the lease money, the mar
ket value of which was $198000."
1t was reported 5S per cent to operate
the Western North Carolina Railroad and
72 per cent to operate the North Caro-
lima Railroad. The General thought the