The news & observer., 1897-02-09
THE 1871 LEASE BETTER THAN
sfas1 THE 1895 LEASE.


On the 18th day of September, 1871,
the North Carolina Railroad was leased
to the Richmond and Danville railroad
for thirty years. at an annual rental of
six per cent on the $4,00O,000 capital
stock of the road. There was so much
indignation all over the State at that
lease, which was made secretly, that the
Democratic Legislature ordered an in
vestigation. 1t was made by DR.. John
NJ. Worth, John A. Gilmer, John w.
Graham, and Il. b. Withers. They re-
ported that the net earnings of the road
for the past three years had averaged
$312,26614. These gentlemen criticized
the lease then at S260000 per annum
when it had paid in the year prior
to the lease $4,000 They intimated
that there were suspicious circumstances
attending the making of that lease, and
gave it as their deliberate Judgment at
the time--1ST2-that the road was worth
'.over S5,0O0000"
In the year 1872, so the banking house
of Thomas Branch & Co, of Richmond,
state, the stock i'm the North Carolina
road sold at about 40 cents IN the dollar.
At the time the lease was made, it
was selling at less than 45 cents And
yet, it was leased at six per cent on ST.
100000, making an equivalent Of about
13 per cent ON the market value of the
stock
On July 2, 1895, about a month before
the ninety nine year lease, stock in the
North Carolina railroad was quoted at
S1.04 and $1.05. The new lease was
entered into for ninety nine years for 61a
per cent till 1900, and then per cent
for the balance of the ninety mine years.
Those who made this latest lease secured
not quite seven per cent ON the market
valde of the stock, when the population,
business, and industries along the line of
the road have greatly increased since the
first lease was made. Considering the
great increase in the manufactures from
Goldsboro to Charlotte, the fact that
ten men travel to-day where one man
travelled a quarter of century ago, the
immense increase in volume of freight,
the growth of such towns as Goldsboro,
Raleigh, Durham, Haw River, Graham,
Burlington, Elon College, Greensboro,
High Point, Lexington, Salisbury, Con-
cord and Charlotte, and the value TO the
road Of all this growth considering all
these things the lease of 1871 was a
much better and fairer bargain for the
State than the lease of 1895. And yet in
1872 the Democrats protested-and pro-
tested rightly against the lease then
made If they were half right, we are
eternally right and strictly following
Democratic precedent to demand the an
nulment of the present lease which con-
tains an absolute gift of at least S120,OO0
a year for ninety nine years to the South
ern Railway. We cam understand why
the Southern should fight to retain this
bonus, and give free passes and other
.'courtesies" to influence legislators to
keep this century cinch, but how repre-
sentative of the people, who represents
them and not the Southern Railway,
should vote this bonus FROM the people
TO the Southern Railway is something
that can be explained only by hypnotism
or some other influence unknown to us.
''It is the business of this corporation
1.-THE Southern Railway to embrace al
the leading men in the State, said Capt
Kftchin. An attempt to influence a jury
ike that road is trying to influence the
legislators, who are sworn jurors, would
mt the agents of the road in iall ON The