The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-07-14
THREE MILLION DOLLARS
The Property Leased is Cars and En-
gines; New Rolling Stock
He ALSO FILES A DEED OF TRUST
To Secure Certain Subscribers to the South
ern Railway Trust Company, Series
A." in the Amount They
Have Subscribed.

Papers were filed in the clerk OIL
flee here, involving property to the
amount of $3,0OO,OO0. The property in
volved was large amount of the
rolling stock on the Southern Rail-
road. The first instrument is a lease
from Edward SALISBURY, of Philadel-
phia, to the Southern Railway, of Il
large amount of rolling stock.
The second instrument was deed
of trust from SALISBURY to the Prov
idence Life and Trust Company, trus-
tee for the subscribers to a fund of
S., 100000 to pay the original purchase
price of the rolling stock. The South
ern Railway Company is Il party to
the trust deed in order to ratify it.
The property involved in the lease
is as follows:
Eighteen passenger engines, 1850
double hopper coal cars, 500 fiat cars,
200 coke cars, and 500 ventilated box
cars.
The considerations are: A cash
payment of $759,711.
The payment on the 30th day of
April and 31st day of October of each
year until October 31st, 1907, of a
sum, (a) equal to two per cent on
So, 100000 less the amount that may be
paid by the Southern Railway, (b) a
sum equal to expense incurred by
lessor in enforcing the trust, (c) a
sum equal to the taxes upon income
or property of the trust and also a
semi-annual payment of p@25,000.
The railway agrees to keep and
maintain the property in good repair
at its own expense, and to replace any
of such property that may be destroy
ed: to furnish each year an inventory
of said property to the lessor, and to.
allow an inspection of the said prop
erty, and that it will not transfer or
underlet its right in any of the prop
erty.
The lease is to terminate by the
default of the railway company in
carrying out any of the particulars
of the lease.
The lessor agrees to transfer his
entire right in the property to the
railroad company upon the fulfillment
by them of the terms of this contract
and the payment of $1.00.
The Deed of Trust recites: That in
May 1, 1900, Edward Il. SALISBURY
leased to the Southern Railway, GER
tain cars and railway locomotives.
That DreXel and Company, of Phil
adelphia, Bankers, have secured sub
scriptions to the amount of $3,000,000
to fund to be known as southern
Railway Trust Company, series A.
which fund is to be applied by States
bury to the payment of the purchase
price of the cars and engines, leased
to the Southern Railway.
And that to secure to such subscrib-
ers in the principal subscribed and in
terest thereon at 4 per cent per an
mum, Salisbury assigns TO the
Providence Life and Trust Company
as Trustee for the subscribers, all his
right and title and interest to the
said lease.
The trustee agrees to contempora-
neousIy herewith deliver to subscribe
ers to fund three thousand certiti-
Gates at 81 900 each.
The trustee to keep register at
it's office in which the holders may
have the same registered.
Trustee agrees to distribute rental
to paying the expenses of the trust,
the taxes, the dividends as they be
come due, and the principals of the
certificates.
The Southern Railway Company be-
comes party to the agreement in or
der to give its assent to the assign
ment of the leases. Should the Southern
Railway make default in the payment
of the rentals due under the lease
the trustees shall have the right to
declare the principal of all car trust
certificates to be due and enforce the
stipulations of the lease.