The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-02-04
Treating OF the North Carolina
Railroad Lease.
1T WILL BE SENT IN TO-DAY
GOVERNOR RUSSELL WROTE 1T
LAST NIGHT.
ssABoARo OFFERS 10 PER CENT
President Hoffman Makes the Offer IN
Letter TO the Governor--De-
tails of the Contract Dis
cussed Yesterday.

cussed Yesterday.
Governor Russell win to-day send
special message to the Legislature
Ii viii be a short document and treat
entirely of the North Carolina Railroad
lease. 1t will recommend the nullifca-
tior of the existing lease of that road to
the Southern Railway
The message was written last might.
1T Will be accompanied 10y an offer from
the Seaboard Airline to lease the road
for period of 20 years, at 10 per cent on
the capital stock This offer was made
by President Hoffman, in letter to Gov.
Russell, bearing date of February End,
and in reply to one sent him by the Gov
ernor on january Goth, concerning a
probable nulliication of the lease and
suggesting that in this event the Sea-
board submit a bid for the property.
This letter will be given in full in the
message to-day. 1T is understood that the
terms set forth in ut are about as follows:
That, in the event the present lease
is annuiied, the Seaboard Air Line
System offers to lease the property in
it's entirety upon a basis of the iegis-
iation now proposed st an annual
rental of $500 900, or 10 per cent.
on the capital stock of Sd, 900, 900.
The Seaboard officials claim that they
have never been allowed the privilege of
participating, upon am equal footing,
with competing lines in submitting a bid
for the operation of the property. Now
they say that they are willing to pay
figure more consistent with the value
of THE road than is the amount paid by
the present lessees to the owners of the
stock and the tax payers of the State.
They are enabled to do this, they claim
not ouly because the North Carolina
T1n;IrooI 1,v;II ,,r.xo :, .xralu ohio s1i11nc4
to the Seaboard, under Favorable con-
ditions, but because it will also afford TO
the people of North Carolina tlla8 COM
petition which is most essential to the
upbuilding Of the State and the pros
perity Of its people They say further
that should they acquire control Of this
road there would be no hesitancy, on their
part in agreeing to handle the trains of
the Southern over such PORTIONS of the
line as might be desired upon the pay
memt of such trackage charges 4as are paid
by other lines in this section for similar
accommodations, or upon such terms as
are usual in such cases.
Gov. Russell will not, in his message
to-day, I hear, recommend the accept
ance of this bid, in case the lease OF the
Southern is set aside as ultra wires. But
it will be considered as an open bid and
other roads can come in and made such
offers as they see proper
General Superintendent MeBee was
mere yesterday with his counsel and they
were for the greater part Of the day
closeted with the Governor discussing
the details. The Seaiboard officials de-
clare their intention, IN case the terms
they offer meet the favorable oonsidera-
ton OF the Legislature OF Incorporating
in the contract every possible guarantee
that can reasonably be asked to enforce
The terms of the lease and ensure the
owners Of the stock and the taxpayers
of the State against loss.
The rental offered by the seaboard is
an advance over that now paid by the
Southern Of over 8 per cent or $780, 1000,
exclusive of taxes, which the Southern
has not yet paid.
Thus it viii be seen that before the ex-