The news & observer., 1897-01-08
THE MESSAGE OF
THE GOVERNOR
CONTINUED from 1st page.)

State mature in 1919, and unless the dl-
yidends from the stock were sufficient
no nav the interest on the bonds, the peo-
ple of the State must be taxed on their
noll and property. The second matter
was to execute the imperative demand or
the people of the State that the entire
property OF this company, without exemp-
ton. should be taxed so that the State,
the counties and townships through whlch
II passed should receive an increased rev
enue: the third matter was that all I'M
provements and betterments placed upon
the property should become part OF 1t
and not subject to removal by the lessee
as was permitted by the old lease. Inc
old lease on this point required that the
lessee should leave the road bed and i1x-
lures in the condition they were in 1871,
Ina CINE the road Of 1871 in this advanced
age, 1896!
THE FOURTH ORGANIZATION,
The fourth matter was the organization
or corporate expenses of the North Car
olina Railroad Company should bes paid
by the lessees, SO that the entire
rental could be used in dividends to the
stockholders The fifth matter was the
duration OF the lease and proper proyis.
ions TO coerce the lessee into compliance
with its terms These were matters Of
grave concern to the State and to all our
people, and it is submitted to the impair
tial intelligence OF our people that this
lease has effectually accomplished these
purposes and carefully guarded the inter
ests OF the State. In presenting facts in
substantiation of the above considera
tions, each one should be taken up sepa-
rately Therefore, let us look ut the first
which would be the taking care of the in
terest, amounting to S163, 200, due by the
State on the $2,720,000 of per cent.
construction bonds, issued to build the
North Carolina Railroad, thus relieving
the people OF the State from an extra
burden of taxation. Does the amount
received as rental do this?
The State OF North Carolina's proper
tion Of the rental amounts to S195,000 per
annum for the first six years, and S210,-
600 per annum for the remainder Of the
period. After paying 6 per cent. interest
on the 6 per cent. construction bonds is
sued by the State, there is balance Of
$31 800 per year for sixty years, and af-
ter that the surplus would be $46, 800
per year. IL this surplus each year was
invested at per cent, in less than thirty
two years there would be. s., 1863, SIT in
the fund; and it will be seen that in
little less than thirty-two years the en-
tire 6 per cent. construction bonds, which
were issued to build the North Carolina
Railroad, amounting now to $2,12O,0 900
could be paid thus leaving 81 years for
the lease to run at net
rental of $4,000 per year to
the State. That amount each
year placed at 4 per cent. interest, at the
expiration OF the lease would amount to
SIS, ,217 ,926, and the State would still
own it's three-fourths interest in the
North Carolina Railroad, with all its inn
provements.
IL the State, after paying its 6 per cent.
construction bonds. issued to build the
North Carolina Railroad, which, as
shown above, can be done in less than
thirty-two years, should conclude to pay
OF the per cent. bonds, from the amount
it receives from the lease, and at the
same time pay the interest on these
bonds each year from the same fund, they
can do SO in 26 years There are in 9TH
er words about S3 400, 900 OF per cent.
bonds, with the interest amounting to
slO<,oVo u year dy ll1S ILLS lnteTGSl Out
OF the $4,000 received each year from
the lease, leaves balance Of ST., 100 q
year, which, if invested at per cent, in
twenty-six years would amount to s3,-
416,4 1872 which, as will be seen, will pay
of the per cent. bonds, thus leaving the
State free from all debt, and still owning
three-fourths OF the North Carolina Rail
road, which it now owns and then leave
Al years more from which the State
would receive $4,000 a year, which, il
invested at per cent would make $780,
963, ,565, and the State would be in the
position Of having paid off its per cent.
construction bonds, their per cent.
bonds, and the interest on each, from this
lease money and still own all Its interest
in the North Carolina Railroad
The people for the first thirty-two
years, not having any interest to pay on
the & per cent. bonds, would be accumu-
lating enough surplus to pay off that in
debtedness, and after the expiration Of
the thirty-two years, for the next twenty
six years they would have no interest to
pay ON the per cent. bonds,
but accumulate enough out Of
the residue to pay off these bondsj
and, for the remaining forty-one years
would receive $4,000 interest money
net, per year from the North Carolina
Railroad lease, which is over 40 per cent
of the amount the State receives from
State taxes on the entire property OF the
State, as is shown by statement 2, in the
Auditors report for the year 1898. This
report shows that the amount received
from the ad valorem State taxes was
S515, ,S55. .79 and $4,000 is 40 ITO per
cent. OF that amount, and the State rate
of % cents on the 500 which the indi-
yidual taxpayer has to pay, would be re-
duced 40 ITO per cent.
Second: All the property Of the com
pany, without exemption, is placed upon
the tax lists, and all the taxes are paid
by the lessee, regardless Of amount, and
thus has been accomplished what the
State has vainly sought to accomplish by
such legislation and many expensive law
suits.
Third: All improvements and better