The news & observer., 1897-02-06

read in both houses of the General Al
sembly:
To the Senate and House of Representf
tives:
I have the honor to submit herewit
the following correspondence concernln
the lease of the North Carolina RM
road:
"Seaboard Air Line System,
"President's Office. 7. O. Drawer las.
"Raltimore Jan. Goth, 1897
sTo His Excellency, Hon. ID. /. Russell
Governor of North Carolina, Raleigh
North Carolina:
ssDear Understanding that 1t i
probable that the North Carolina Ran
roads present lease may be annulled, ant
the road offered to fair competition,
desire TO state on behalf of the Seaboaro
Air Line. as | stated 20 the President
and Directors OF the North Caollna
Railroad before the last lease was con
sunamated. that il the road was in posi-
fion To be handed over to the successful
bidder. that the Seahoard Air Line
would make an offer to lease the property
af 4 higher rate than is named by the
present agreement
Yours very truly,
fSirned1 .'R. c. HOFFMAN,
President"
ITpon receiving the foregoing letter, |
notified the representatives of the Sea-
board System that did net regard their
offer sufficiently definite to be satisfac-
tory to the General Assembly. and there
upon addressed TO them the following let
ter and received the reply as follows:
state of North Carolina,
Executive Department, Raleighs
Raleigh, n. c.. jan 20, 1897.
"R @. Hoffman. Esq, President of Sea
board Air Line System, Baltimore,
Maryland:
ssMy Dear Sir:-There is, in my opin-
ion. a reasonable prospect that the lease
of the North Carolina Railroad will be
annulled through legislative or judicial
action or by both. In that event, /, as
Executive of North Carolina, desire
through the keenest competition, to
make the property bring the greatest
amount possible. Therefore, would be
pleased to have from the companies
which you represent a proposition for
leasing the same for the term OF twenty
years, and desire that you will state
plainly and fully the terms upon which
you would be willing to acquire the
property and the amount that you would
pay for the same.
Besides the franchise, rights and
privileges of the said corpo-
ration, the lessee would acquire
the use of the property en-
braced in the accompanying schedule.
II earnestly ask for an immediate an
swer
yours respectfully,
DANIEL L. RUSSELL,
Governor"
.'The Seaboard Air Line System,
Presidents Office, z. o. Drawer las.
Baltimore, February End, 1897.
9STo His Excellency, the Hon. ID, L. Rus
sell, Governor, Raleigh, n. c.:
'sSir:-I beg to acknowledge receipt of
your esteemed favor Of the Goth concern
ing a probable notification of the ex-
listing lease of the North Carolina Rail
road, and suggesting that in this event
You would like our Company to submit
a bid for twenty year lease Of this
line.
Permit me to say it is most gratifying
to receive assurances from you of the
likelihood Of our being allowed to parti-
cipate, upon an equal footing with COM
peting lines in submitting a bid for the
operation of the States property; privi-
lege not heretofore accorded US, although
we have heretofore been, as we are to-day,
prepared to submit bid which is an ad
vance on the amount paid by its present
lessees, and a figure more consistent with
its value to the owners of the stock and
the taxpayers of your State.
'In the event of the present lease be-
ing annulled, / beg to say that our COM
pany would be willing to lease the prop
erty in its entirety upon a basis of the
legislation now proposed, at an annual
rental of four hundred thousand dollars,
($400, 100000, which you will note is
equivalent to ten per cent upon capital
stock Of four million dollars (S4 100000 !
II beg to say in this connection that
under favorable conditions the North
Carolina Railroad would prove a valu-
able adjunct to the Seaboard Air Line,
not only resulting in accrued benefits to
the latter company, but affording the
people of North Carolina that competi-
tion which is most essential to the up.
building of any State or community.
ct has been the policy Of our company
to court legitimate competition, with
other transportation companies, rather
than to discourage it, feeling assured that
if the same laws are enacted Of one, as
Of the other, and the same privileges af-
forded, we can successfully maintain
ourselves and at the same time satisfac-
torily serve the public as common car
rier. Should we acquire control Of the
North Carolina Railroad, there would be
no hesitancy on our part in agreeing to
handle the trains of our competitor, its
present lessee, over such portions Of the
line as desired, upon payment of tracking
charges aot in excess Of amounts paid
out by them, to other lines, in this Sec
ton for similar accommodations, or upon
such terms as are usual in such cases.
sit might be out of place for me Mt
this time to go into details as to the
salutary effect the operation of the North
Carolina Railroad by the Seaboard Air
Line would have upon commerce
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