The news & observer., 1897-02-25
THURSDAY, February % Ao''



In fighting the secret 99-year lease Of
the North Carolina Railroad, which was
made within i've months of the adjourn
ment of the Legislature, we have insisted
that the directors overstepped the bounds
Of their duty to the people, even II they
kept within their technical rights.
Not but once before in North Carolina
was a road, in which the State holds an
interest. leased or turned over into other
hands without the sanction or authorit5
af the Legislature. That was in 1871
wnen the Republican directors leased this
same road for thirty years in a secret
meeting. SO great was the indignation
fhen that the Democratic Legislature in
yestigated the lease, and suit was
brought in the courts TO seek to set
it aside. The court, by divided vote,
affirmed the lease. The contract made
then was a much better business arrange
ment than the one sought to be foisted
on the people for 90 years August 1893.
The Democratic party in 1871 demanded
legislative investigation, and judicial IN
ouiry. They were right. In demanding
the same course now, the News and OBJ
server is standing on Democratic prece-
dent.
Some fifteen years ago, when propo-
sition was made to Governor Jarvis and
the directors of the Western North Caro-
lima Railroad to buy that property, did
they dare take this step without seeking
the approval of the people? The transae-
tion was one of such magnitude that the
Governor called a special session OF the
Legislature to pass upon it. He made
his recommendation, the pros and cons
were heard, State Senator Dortch and
others opposed the sale, but after full dis
cussion the Legislature ordered its agents
to effect the sale. Those who were OPP
posed to the sale, acquiesoed when it was
settled by the representatives of the peo-
pie. If Governor Jarvis and his direc-
tors had effected that sale without the
greatest publicity they would have re-
ceiYed the lasting condemnation of the
people.
The amount involved in the transaction
upon which the Legislature was asked to
pass was 100000.
The amount involved in the lease OF
the North Carolina Railroad, which was
made hastily, without publicity, with
out making the best trade for the stock
holders, is SIS, ,756, ,S75-that is to say that
the State could get that much more for
the property by accepting the sum Of
fered by the s. A. l.. than it will get
il the present lease to the Southern
stands.
The North Carolina Railroad is 40
tually worth not less than eight million
dollars. The lease is less than four per
cent on the actual value of the property.
The Southern Railway pays $1,750 per
mile rental for the road from Charlotte
to Atlanta, part of the through line OF
the Southern Railway 1t is not so good
a road as the n. G. Railroad, and does
not run through country as prosperous
as the section between Charlotte and
Goldsboro. And yet, by most unwise
trade, North Carolina is to get less than
81 900 per mile rental, while owners OF
the Charlotte Airline get S1,750 pel
mile rental, and the owners of the At
antic and Western in Georgia and Ten
Dessee get over $1,000 per mile rental
The chief counsel OF the Southern Rail
way says: "Fhe North Carolina Railroad
is the best railroad property in the South
if not in the whole country" If that il
true, why should a rental Of 81, ,750 PEE
mile be paid on the Charlotte Air-Lin,
and less than 1000 per mile on tn,
North Carolina Railroad? There is bu
one answer. The directors of the Char
lotte Airline were better traders ant
looked out for the interest of its stock
holders better than the directors of th
North Carolina Railroad looked out for it
stockholders This is either true or Col
Henderson was wrong when he said tina.
'.the North Carolina Railroad is the bes
railroad property in the South, il not il
the whole country.
At any rate in demanding that nj
transactions of this magnitude shall b
ordered or ratified 10y the people, tai
paper is not only standing upon an in
perishable Democratic principle, but it i
as well hewing to the line OF Democrati
precedent.