The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-12-23
SEABOARO OFFERS 80 1-3
MAJORITY OF THE STOCK ASK
$50 TER SHARE.
TIE sEABo RD De LINES TO GIVE MORE
The Stock VIII be Practically Worthless For 1873
Years Unless it is Now Sold, Say the Sea- Il,
board People. President VIII
Iiams' Generous Policy.

The stockholders of the Louisburg
Railroad Company yesterday declined,
in meeting here, to sell that road to the
Seaboard system.
The first meeting was held Thursday
afternoon while the Raleigh and CASTOR
stockholders were in session. At this
meeting the Seaboard made PROPOSE
ton. through an attorney, to give for
the road 33 1-3 per cent OF the par value
Of the stock for the road.
Now the road cost $24, 900. Half of
this $4,000 is held by LouiSburg
township. The town of Louisburg owns
$4,000 of it and private individuals,
mostly Louisburg people, own the other
$4,000. The offer of the Seaboard was
therefore $1,000 for the road. OF this
town. $4,000, and the private stOckhold-
ers $4,000.
These terms were agreeable to the
for the township and the town wanted
30 cents on the dollar for their stock.
The Seaboard people declined to give it.
SO the meeting adjourned over night to
consider further the proposition.
They met at $3.50 o'clock yesterday
morning but were unable to do anything
the township and town proxies being OF
the same opinion still, viz, that they
ought TO have 80 cents for their stock.
AS the Seaboard had no idea Of giving
this the meeting took another recess UNI
Ii o'clock.
1t 3 the same result, although Mr.
W. II. arborough, Jr., proxy for the
township, and Mr.. L. \. eayis, proxy for
the town, had received kilograms from
Louisburg in the meantime, urging them
to accept the Seaboard's offer.
And thus the matter now stands.
This road is ten miles long, running
from Franklinton, on the Raleigh and
Castor Railroad, to Louisburg in Frank
I'm county. it was chartered in 1881
9ad built in 1884 and 1855. largely
through the efforts Of Capt. Cook, Col
Marlborough and other leading citizens
Of that section. BY an agreement be-
tween Col. Robinson, then president ~
the Seaboard, and Capt. Cook, represent
ing the people OF L0uisburg, it was so
arranged that the right Of way should
be secured, the read graded and the
cross-ties laid by those who now own
stock in it.
The Seaboard was to furnish and put
down the iron and equip the road with
rolling stock. Both parties to the con-
tract faithfully discharged their part or
it. And the State. to assist in the
building Of the road as much as posi-
Bile, furnished conyicts to do the work
for their actual expenses.
Hence the road was built very cheaply,
In Ton loo
The people who furnished this money.
Of course, now hold the stock, and the
Seaboard, in consideration OF its parr
in the construction was given lease OF
the road for 80 years, Tor and in consid-
Grafton of S. a year.
This lease has already run fourteen
years.
At its expiration the Seaboard has
the option of its renewal for 80 years
more on the same terms.
Hence, it viii be seen that the road
practically belongs already to the Sea
beard, and the purchase-price $4,000
now offered will lie to the stockholders
almost like finding so much money, for
the stock heretofore has been considered
worthless. And in fact it would be so
now, but for the tendency of the con
solidation plan, which makes it desirable
fer the Seaboard to own absolutely ali
its branch lines. This is desirable for
the purpose of financing the system and
operating it in its entirety, but is is
net absolutely necessary. If the Louis
burg road cannot be bought so that IL
may be included in the mortgage as
property, why simply the lease will be
mortgaged.
The Pittsboro road was held by the
S2aboard in the same way, but it had
no trouble in getting it at 80 cents on the
dollar. 1t is stated that higher price
is offered by President Williams for
these small roads than he considers
them worth, but he wishes to prevent
any dissatisfaction on the part Of the
owners of them or any complaint of be-
ing squeezed out
The opinion is expressed by prominent
citizens of Franklin county that the
sale will yet be effected; that the citi-
zens of the town and township will,
when they know the facts, instruct their
proxies to accept the Seaboards offer.
Why" said Capt. Chas. NJ. Cook,
who perhaps had more to do with the
building Of the road than any one else,
Il consider the price offered a good one.
The stock has been practically worth
less before this. In fact we never ex-
pccted to get anything for it. We
wanted the road and we put our money
in it to get it, not as an investment. We
got the road, and it's a good one, and
now we are offered one-third of the
money it cost us for our holdings. When
You consider that the road is leased for
1SS years vet, at 50 "a year, | regard
the price offered as very good one. I'm
willing to take it for my stock"
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