The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1904-09-08
OUR RALEIGH LETTER
Thinus Seen and Heard at the
State Capital.

Things Seen and Heard at the
State Capital.
GoRMAs NEWS BuREAu,l
RALEIGH. n e., Sept. ), 1904.
That troublesome ''assct" OF the State
of North Carolina, the 4. & N. G. Rail-
road, is leased at last
The stockholders, by the overwhelm-
ing vote of. l .25S to 81, instructed the
directors to make the lease and the at
torneys last night drew up the papers.
The rental starts at three per cent. on
the capital stock and gradually increases
to six per cent. This means an annual
revenue of $37,99S to the State from
this source from the date OF the lease,
while the private shares draw the same
rate of dividend.
Before the stockholders met at noon
in New Bern it was apparent that the
lease would be carried. The sentiment
of the largest private stockholders was
particularly unanimous for the State
retiring from the railroad business. Di-
rector c. E. Foy fought almost single
handed against any lease, and when he
saw the battle would be lost he gave
notice that legal steps would be taken
to set the lease aside when it was made.
The called meeting OF the stockholders
was the most largely attended i'll the
history OF the company. After a brief
session in the warehouse at New Bern
Joseph Robinson was elected chairman
and George Green ana Chas. Stevens
secretaries. The meeting then took a
o'clock However. when the party ar
rived at the Atlantic Hotel dinner was
served and it was O'Clock before the
meeting proceeded to business. Cover
nor Aycock and the board Of internal
improvements. b. W. Ballard and B. C.
Beck with, were present with their coun-
sci, Ex-Governor r. j. Jarvis. The sue
cessful bidder, R. C. Rowland, attended
by R. 2. Foster, Fred. l.. Merritt and his
attorneys, Theo F. Davidson and James
II. Pou, were on hand. W. l.. Kennedy
| and the parties in his syndicate were
not represented by counsel, but attend
ed in persons.
When the meeting recOnvened State
Proxy Granger announced that he was
! instructed by the State board of internal
| improvements to vote for a lease OF the
| road and to submit two propositions
for lease and support whichever had
the approval of majority OF the private
stock. The Kennedy syndicate and the
Rowland propositions were then read
| to the meeting. They were almost iden-
| teal except that Rowland offers to spend
large sums in developing Eastern Caro-
lima Director E. G. Duncan offered a
resolution that the Rowland PROPOSE
ton be accepted for a term of 10 years
and months from this date and that
the directors and officers be instructed to
make the lease, turning over all the
property to the lessee upon his executing
his part of the contract.
TheO. +. Davidson, counsel for How
land. stated to the stockholders that
Mr.. Rowland had resided in North Car:
DINA six years and had invested ovel
three hundred thousand dollars in per
manent improvements at Asheville. II,
told of his vast business interest in New
England. California andsCuba, and pre-
dicted that he would bring untold pros
perity to the territory. traversed by thit
road.
| TERMS OF THE LEASE.
The proposition of the Rowland i'm
provement Company, which has BEG
accepted for 10 years and four months
| The rental is 3 per cent on the capita
stock for the first ten years, 3h for tn
third ten years, 1 for fourth ten years
AZ for the fifth ten years, D for the sixth
ten years, and 6 per cent for the balanc
OF the term. The proposal included al
offer OF 80 or 60 years at the rate NAMED
up to that period.
The Rowland company assumes 2.nt
pays the bonded indebtedness of tn,
road as it falls due, and if the debt is re
founded it shall be at the lowest possibl
rate of interest and in no case shall How
land pay more than six per cent on thes
bonds.
THE LEASE is VALID.
Il Governor Jarvis says there is absolute
ly no question about the legality of tn
lease. The same matter has been passe,
on repeatedly by the courts All tn
lawyers here concur in this opinion.
was nearly midnight before the detail
OF the lease were drawn up, signed b,
the directors and ratified by the stock
holders.
President Howland's first act on tax
ing charge was to instruct his assistan
manager, Fred. L. Merritt, to advertis
for one hundred thousand standar,
cross-ties. The entire line of SO mile
from Goldsboro to Morehead will be lai,
with 76 pound rails, displacing the pres
ent light so pound rails.
WHAT GOVERNOR AYCoCK SAYS
Governor Aycock said '',The question
OF leasing the Atlantic & North Carolin;
road has always been one to trouble tn
Governor and Others charged with duty
but | believe the lease now consummate,
will meet with general approval, an.
as the Rowland Improvement Compan,
puts improvements on the road ant
begins the active development of thi
section the people of the whole Stat
will rejoice that the road has been leased
The rental itself, while satisfactory, i
not OF so much consequence as the de
velopment of the rich country through
which the road passes. There is ever,
reason to believe that Mr.. Rowland in
tends to do his utmost to build up tn
agricultural and industrial interest o
Eastern Carolina
Your correspondent has talked with {
large number of the leading citizens o
Raleigh, including some State officials
and also several gentlemen from othe
parts of the State here today on bust
ness.
Without discordant note the genera
acclaim was that the lease, as effected
is very satisfactory and will be endorsed
by the people generally of North Caro-
lima.
Governor Aycock especially is to b
congratulated said number OF gentle
men, on the final disposition Of thi
troublesome matter, and his action il
the promises yesterday will add much t.
the success and reputation of his sue
cessful and brilliant administration.
A prominent man from the trucking sec
ton was enthusiastic over the lease: for
said he, it will eventually greatly benef
and promote the growth and success O
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