The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-07

are at a cost OF only nrty elSnI ltr eehl
of the gross, leaving forty two per cent
| of said gross, as net earnings or profits.
| 1t is notorious, as l am Informed and be-
| love. that these owned lines Of the South
| ern Railroad Company in this State
have been inferior to the North Carolina
| Railroad, as to their road-beds, struct-
ures, and general physical condition; ana
vet they claim that out OF their INFERIOR,
! and some of them worthless railroads,
earning according to their own showing,
| only S2.SOO.OO per mile, they get net
earning or profit Of about $l,2OOOO a
mile while out of the North Carolina
Railroad. which | assert is one OF the
hest Railroad properties in America, ana
| earning according to their statement
| SIG. 4OO. 90 a mile gross, they get as net
profit only about 100000 mile. Ac-
| cording to these statements they are ask
| ing the people to believe that increased
business does not increase protts-a story
| which is not believed by the merchants,
| manufa cturers and producers, VINO sup
| port these railroads, nor by lntellgeht
| persons of any class who are at all &C
ouainted with railroad methods or opera
tons.
T. On examination | find that for the
three years above mentioned, the WIZ
| mington and Weldon Railroad Company
and it's branches, with a line of about
four hundred miles subjected to ABOUT
double the mileage expenses OF cross
ties. and maintenance of roadway, re-
ports as follows:
Gross Net Perct of gross
Per NJ. Per NJ. for operating.
ing July, ~, s,l57 sl,s57 sS7
ing July, 20. 1888 1895 50
ing July, '96, 3,4Sl l,433 %
l. 1t is thus seen that the Wilmington
and Weldon Railroad with gross earn
ings about one half as much as the
North Carolina Railroad makes net or
profit that is nearly equal to that of the
North Carolina Railroad Company
8. l find that the Raleigh and CASTOR
Railroad Company claim in its report,
that with gross income of from four to
six thousand dollars mile. its operating
expenses amount to something in the
neighborhood of seventy per cent. This
Raleigh and CASTOR Railroad Company
belongs to the Sea aboard System, which
swallowed it some years ago by obtaining
a majority of it's stock and then wrecklng
its minority stockholders. That they are
suppressing the truth as to its net earn
irgs / strongly suspect, but do not know
their motives. | have not made it my
business to examine into this as the
Seahoard IS not now engaged in further
:ny schemes to spoliate this State and
! loot its treasury.
Eut the motives of the Southern Rail-
road Company, in keeping down the net
earnings of the North Carolina Railroad
Company and in keeping up the apparent
earnings of their own lines, are obvious
These owned lines are part of their
great railway system, upon which they
have issued FIVE per cent gold bonds,
amounting to one hundred and twenty
million dollars. They seek to enhance
the market value Of these bonds. To do
so they must make a good showing for
their mortgaged lines-to the end that
Drexel, Morgan and Company may ul-
load them on innocent investors, pile up
cash in their Golfers and be prepared for
other and greater piracies upon the pro-
ducts and producers of the country. To
have the North Carolina Railroad Com
pany as dumping ground for the
wrecks Of their owned and mortgaged
lines serves the double purpose of max
ing better showing for these latter
lines. and of belittling the value of the
North Carolina Railroad so as to enable
them to get it for vastly less than it is
worth. They deceive the public by try
ing TO make it appear that they are get
ting out of this property only a little
more than enough to pay the rent on
their unlawful and fraudulent lease.
n p.,n
road Company NOW the Southern pro-
cured the lease of eighteen hundred and
seventy-one, by fraud and bribery, as
believe, and this belief is founded upon
! certain notorious facts the evidence Of
which is a part of the archives of the
State. This original fraud followed up
by systematic concealment Of earnings,
and exageration Of expenses, paved the
way to the yet more fragrant wrong Of
1S95-the ninety-nine year lease, which,
for unblushing effrontery has not been
often surpassed in the annals of
chicanery and crime.
1O.This complainant, the Southern Rail
road Company, in its bill complains Of a
certain bill pending in the General AS
sembly, which passed one House, but
was never enacted into law and the COM
plainant makes an exhibit Of this Leg
islative bill. 1t is apparent from read
ing this bill in Equity that it was drawn
for the purpose originally of preventing
the execution Of this legislative bill
which complainant thought would be-
come a law Whether the Southern
Railroad Company intended to ask for an
injunction against the Legislature, ] am
not advised But in as much as this
measure did not become a law, / have
no intention to bring an action on behalf
Of the State to annul this ninety-nine
year lease. If, however, should regard
it my duty in the exercises of discretion
vested in me by the laws of North Caro-
lima to bring such an action 1 deny the
jurisdiction OF this court or OF any other
court, to control my conduct as Governor
in the execution Of the laws Of the State.
DANIEL l.. RUSSELL.
| THE N. C. R. RS. ANSWER