The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-09-02
AMONG THE
RAILROADS

There was considerable interest mani
tested among the local railroad people
yesterday over the Southern's aequisi-
ton of the Atlantic and Danville, though
no surprise as the deal was long ago
foreshadowed in the press. just what
the Southern will do with the road now
that it has it was the topic of specula-
ton.
There has been number of reasons
for the deal suggested by those who take
interest in such matters.
The Atlantic and Danville was not
until within the past year or two a pay
ing property. Since then, however, it is.
said, the road has about paid expenses
of operating.
One effect Of the sale of the Atlantic
and Danville to the Southern will be to
shut off entirely railway competition to
Danville.
There are other good reasons for the
deal which are greatly to the advantage
of the Southern. 1t is well known
fact that the freight traffic to and from
Norfolk and the South, as well as be-
tween Norfolk and Lynchburg, and
northern points, is quite heavy and is
rapidly increasing. BY controlling the
Atlantic and Danyille route the South
ern can cut off about eighteen miles be-
tween Norfolk and Greensboro, N. c.,
and thence to Southern points, and can
also do away with the work of barging
traffic from Primers Point to Norfolk
billed for points south of Greensboro.
In the contract of lease it is set forth,
according to the Norfolk Landmark,
that the Atlantic and Danville railway
is leased to the Southern railway "for
term to expire July 1st, 1949, renewable
for a further term of ninety-nine years"
in consideration of which the lessee is
to pay IAN annual fixed rental, payable
in gold coin of the United States of the
present standard of weight and fine
ness in installments as follows:
On December 10Th, 1899. IS AZ 1873 81
On December 10Th, 1900, and
On the 18th day Of each
succeeding December and
June until and including
June 10Th, 1901. .... 63,500.00
On December 10Th, 1901 and
on the 10Th day of each
succeeding June and De-
cember until 1904 $3.50. 7S,500.00
On December 10Th, 1904, and
on the 10Th day of each
succeeding June and De-
cember until and including
June 18th, 1909. .... 100000
On December 10Th, 1902 and
on the 18th day of each
/ succeeding June and De-
cember. throughout the re-
mainder of said term until
and including June 10Th,
lJ4J. 9lUJUUU
The total amount of these stated pay
ments is 1897 ,333.34, but in addition to
this the lease provides for the payment
of a contingent rental, as follows:
Whenever and as often as the South
ern railway shall declare and pay a
dividend upon or in respect of its pres
emit issue of common stock now out
standing, to the par value of S120000.000
or upon any substitutes therefor, the
Southern company at the same time
shall also pay the Danville company a
gross sum which shall be equal to two
hundred and eighteen twelve-thou-
Sandths of the sum total of the dividend
then paid upon such one hundred and
twenty million dollars Of common stock
of the Southern company. or any sub
stitutes therefor, but such contingent
rental shall be paid upon the express
understanding and covenant Of the
Danyile company as special considera-
ton moving the Southern company to
make said payments; that the gross sum
so received by the Danville company is
by that company to be used for and APP
piled to the payment of dividends upon
its common stock, which at no time is
to exceed $2,1S0000, it being the inten-
ton that during the original term Gre
ated by this indenture each of the u, 800
shares of common stock of the Danvile
company shall receive the same adyan-