The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-02-25
FRIDAY,
PROPOSED RAILROAD LEASE.

The railroads claim that the reduction
of rates to , and 21a cents will amount
10 between 100000 and 100000 in
North Carolina. The statement is pub
lished. and, so far as our observation
goes. without contradiction, that the
Governor and the officers of the South
ern Railway are considering a trade"
by which the State win get 100000 per
wear for the Atlantic and North Caro-
Ina railroad provided, he can induce the
Railroad Commission to put back the
old 81 cent rate and replace that $780,
900 to 100000 burden Ia less to the
people in ITSELF, the Governor will vail
date the 80 year lease and contract to
pardon the railroads for all the $1,000
penalties for which they have been sued
for violation of the law against free
passes. The feast to which the people
are to be invited will be to pay $780,
600 to 100000, besides other big
bonuses, for the Southern to pay a
rental of $4,000 for the Atlantic and
North Carolina Railroad.
The late Ex-Governor Scales was in
favor of compelling the Southern Rail-
way to lease the Atlantic and North
Carolina Railroad, as a condition prece-
dent to giving renewal of the lease
o. the North Carolina railroad. He be-
licved they would pay six per cent for
both. systems and that operated rs one
system it would pay them we'll.
At this time. the people of North Caro-
lima would be indignant at the consum-
nation of the trade" said to be under
consideration. If the Southern or any
other road desires TO lease the Atlantic
and North Carolina, their propositions
ought to be received and referred with
the recommendation of the directors to
the next Legislature. We want TO
leases by a set of directors without rat
ification by the General Assembly, and
we want no leases of that or any other
State property to be paid for by such
considerations as bind the hands of the
Railroad Commission and the other con
siderations so far stipulated.
The lease of the North Carolina rail
road was legal or Illegal. That question
is now III the courts for adjudication
If legal, all must acquiescc. If Illegal
the legislative branch of government
ought to make the best possible dispo-
sition of it not only for the interest Of
the State, but fon the private stock
holders as well. They should be treat
cd alike in all matters connected with
that property The lease of the Nortl
Carolina Railroad has nothing, anL
should have nothing, to do with any
negotiations looking to leasing the At
lantic and North Carolina Railroad
They are independent matters. There
are private stockholders of the Atlantic
and North Carolina Railroad, whose in
terests must be protected in any ar
rangement effected. 1t would be mani
festly wrong to charge them with the
expenses in the lease litigation, as tht
suggested arrangement would do. The
stockholders of that road as such have
10 interest in that litigation. They
ought not to be made to pay for it.
There is a difference of opinion, OF
course, as to reduction of passenger
rates to the figure fixed on the leading
roads by the Commission. The public
will uphold the Commission i'm reason
able reductions. The reductions made
ought to stand if they will not deny t.
the owners Of THE road fair dividend
Oh the value of the roads. The sugges
ton that, in order to secure q renta
of $4,000, these reductions ordered shal
he counteImanded is such "dickering'
and trading" as ought not to be toll
Grated moment. The rates are toC
high, or they are not. If too high, the
Commissions duty is to reduce then
without regard to any other transaction
in which the State may be interested
ton ought to be made and There should
be no suggested reduction dependen
upon lease Of single raalroad. This
is true even if the possible rental would
exceed the aggregate of the reduction.
We are everlastingly tired of deals