The Caucasian. (Clinton, N.C.) 188?-1913, 1897-02-11
A BOMB AT THB
SO YEAR LEASE.

Some Dark Places in the Famous
Secret Deal are Being Expos
ed By Lighs-Compssiive
Bids Not Allowed When
the Bargain Was Made
s40O 900 OFFERED BY S. A. L.
Ihis 10 ons Hssdred .Theusssd Dosss"
Per Year Moro Than the state S~v
Gets "A Special Message Prem the 0es
ernor-WIsh Some Interesting Cores
pondsses-1hs Aa.. Fight Grous
Apse~.
People generally remember the cir
under which the "s3 year
lease" Of the North Carolina railroad
was made in 1895. They will also re-
member the storm OF protest and in
dignation which arose all over the
State At this secret deal by which the
largest single interest the State has
Was practically sold TO foreign syn
dictate.
On last Friday Gov. Russell sent the
legislature q special message, with
some correspondence on this matter,
which explains itself and tells an in
teresting story. Here is the message.
To the Senate and House of Represen-
tatives:
have the honor to submit here with
the following correspondence concern
ing the lease OF the North Carolina
Railroad:
"Seaboard Air Line System
"President's Office, p. .. Drawer las.
Baltimore, Jan 10th, 1897
ITO His Excsllsncy, Hon. d. l.. Russell
Governor Of North Carolina, Raj. Oh
North Carolina:
Dear Sir:-Understanding that il
is probable that the North CarOlins
Railroads present lease may b.
snnulled, and the road offered Il
| fair competition, desire to state or
behalf of the Seaboard Air Line. rs
stated to the President and Director
Of the North Carolina Railroad befor,
the last lease was cOnsummated, that i
the road was in position to be hande.
over to the successful bidder, that tn,
Seaboard Air Line would make an Of
fer to lease the property At . highe
rate than Is named by the presen
agreement.
"Yours very truly.
(SignedD "R. &. HOFFMAN,
President"
Upon receiving the foregoing letter
| notified the representatives of tn
SeabOard System that | did not re
gard their offer sufficiently definite
be satisfactory to the General Assem
/ hA ID ~.
the following letter and received tn
reply as follows:
Estate Of North CarOlina,
Executive Department, Raleigh,
Raleigh, n c., Jan. 20, 1897.
"R. G. Hoffman, Esq, President of Ses
board AIR Line System, Baltimor
Maryland:
"My Dear Sir There is, in my OF
IniOn, a reasonable prospect that II
lease of the North Carolina RaiIroa
will be annulled through legislati,
or judicial action or by both. In tn,
event, I, as Executive of North Car,
lima. desire through the keenest con
, petition, to make the property brin
the greatest amount possible. Their
q fore, would be pleased to have fro
the companies which you represent
: proposition for leasing the same f,
the term Of twenty years, and desi
that you will state plainly and full
the terms upon which you would
o willing to acquire the property al
the amount that you would pay for I'll
same.
Is Besides the franchise, rights ar
privileges of the said corporation, Il
lessee would acquire the use of Il
, property embraced in the accompan
ing schedule.
II earnestly ask for an immediate a
swer.
n "Yours respectfully,
8. DANIEL L. RUSSELL,
vi Governor
# sThe SeabOard Air Line System,
# "President's Office, z. o. Drawer IA,
- Baltimore, February End, Is.
- ITO His Excellency, the Hon. u.
~ Russell, Governor. Raleigh, N. c..
"Sir:-I beg to acknowledge recei
d of your esteemed favor of the 10th co
e corning probable notification of [
y existing lease of the North Carroll,
d Railroad, and suggesting that in Il
d event you would like our company
submit bid for twenty year lease
this line.
H. Permit zoe to say it is most Rratif
to ing to receive assurances from you
l. the likelihood of our being allowed
n participate. upon an equal f0otil
10 with competing lines in submitting
4 bid for the OperatiD IN of the Stat
-, property a privilege not heretofore 8
20 corded US, although we have heret
~ fore been. as We are today, prepared
" submit bid which is an advance
r the amount paid by its present Jesse
Of and figure more consistent with
il value to the owners of the stock n
IN the taxpayers Of your State.
10 In the event of the present les
- being annull~d. beg to say that O
n company would be willing to lease t
~ property in its entirety upon q basis
g. the legislation now proposed, 1t
n annual rental of four hundred tho,
,e and dollars ($4OO OOO). which you v
ve note is equivalent to ten per cent I'D
r capital stock of four million doll,
. ($4,OOO,OOO.)
- Il beg to say in this connection Il
under favorable conditions the MOI
40 Car0llna Railroad would prove a "
Ps uaole adjunct to the Seaboard
IL Line, not only resulting In accru
n Dement'S to the latter company, but
n fordiDg the people Of North Carroll
ed that competition which is most esse
A ttal TO the upbuilding Of any State
community.
y ut has been the policy of our CO
pany to court legitimate compe
81 ton, With other transportation co
panles, rather than to di. charge
1seilng assured that if the same Ia
i. are enacted Of one, as of the other, Q
the same privileges afforded, we c
y, successfully maintain ourselves and
~ the same time satisfactorily serve I
oe puolic a. q common carrier. ShoI
70, we acquire control Of the North Ca
IN Ina railroad there would be no he
es tency on our part in agreeing to hs
he ole the trains of our competitor,
n present lessee, over such portions
y 4 Ih4 ln0 "a A.aaianA