The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-09-06
THE A & n. G. A

state that The Messenger published
yesterday In a special dispatch giving
an account Of the leasing Of the Allan
tic and North Carolina railroad 20 the
Rowland Improvement Company.
The term OF least-ninety-one years
and four m~onths-will expire 81 the
same tim as the lease OF the North
Carolina railroad TO the Southern. This
will bring the two roads back under
state management at the same time.
II strikes US that the state has made
a most excellent bargain. In addition
TO he terms OF rental proposed by Nj.
Rowland as published in our special of
yesterday his offer OF lease which was
accepted contained the following stipu-
lations on his part:
1 will assume n pay during the
continuance of the said lease the inter-
est accruing On the present bonded
indebtedness OF the Atlantic and North
Carolina Railroad Company as the
same falls due. but I shall not be in
any liable for the payment OF
the principal of the said bonded in
debtedness, provided, however. hat If
the said Indebtedness should be re-
funded at n time during the o
tinuance of the said lease. the rate or
interest shall be the lowest practicable
rate at which the said bonds IAN b.
sold at par and / shall have the priv
lege Of placing the said bonds at par,
and l shall not be required TO pay on
this account a greater rate OF interest
than that which the said refunded
debt shall bear and in no event shall j
be required TO pay a greater rate of
interest thereon than that which the
said Indebtedness now bears. to-wit:
6 per cent. per mum.
That I will pay all taxes of every
character which ma be hereafter as
sessed against the Atlantic and North
Carolina Railroad Company during the
continuance of the said lease.
That l will pay all the expenses OF
keeping alive the organization of the
Atlantic and North Carolina Railroad
Company, and all expenses Of inspec-
ton to be made from time to time by
competent railroad experts, to be ap-
pointed by the Atlantic and North Car
DINA Railroad Company, with the view
Of a~scertaining whether or not the
terms of the lease are complied with on
| the part Of the lessee, all of which ex-
| penses shall not together exceed The
sum of twelve hundred Isl. 200) dollars
per year.
That l will enter into proper cove
nants to protect and save harmless
the Atlantic and North Carolina Rail-
road Company from all loss or damage
that may arise on account Of the neg
ligence or forts Of the lessees during
the continuance OF the said lease.
That 1 will take all the supplies on
han at the time of the delivery of
the property under the lease at the true
market value thereof, and will pay
/ therefore in cash or secure the ayment
| of the same in such manner as the At
lantic and North Carolina Railroad
| Company may require.
That 1 will keep and maintain the
| said railroad. rolling stock n fixtures
in good condition at all times during
the continuance of the said lease, and
| at the termination Of the said lease
will return the said property to the
| Atlantic and North carolina Railroad
Company in relatively as good condi-
ton as when received.
To secure the payment of the rentals
\ above recited, and as well the due and
| proper performance of all the Stlpula-
ions contained in said lease, / will de-
post with the treasurer of The State of
| North Carolina, or such other deposi-
tory as may be agreed upon, one hum
dred thousand ($100, 000) dollars in Unit
ed states bonds or North Carolina
bonds, or such other bonds as may be
agreed upon and keep it on deposit dur
ing the term of this lease, or until such
other angeme is made as shall be
satisfactory to the State of North Car
DINA and to the Atlantic and North
Carolina Railroad Company, and in
addition thereto / will enter into a
covenant. to be made a condition in
the said lease that I yill expend and
apply, or cause to be expended and
applied to the permanent betterment
of the road bed, terminal facilities,
Il and nnr;nroant nf tho said rnirnad
within the period of three years, be-
ginning from the date of the delivery
of the property to me under the lease.
the sum of two hundred and fifty
thousand $3.50, 0OO) dollars. l pro-
pose to organize under the laws Of
North Carolina a corporation to oper-
ate the said road under this lease, or
to assign it to the Rowland Improve
ment Company, a corporation already
organized under the laws of this state.
| for the purpose of operating: I being
now the principal stakeholder Of the
said Rowland Improvement Company.
The form and details of the said lease
to be settled by counsel.
We learn from The News and OBJ
server that a hundred thousand dollar
| certificate OF deposit in the Union Trust
Company Of Providence, r. l.. is now
in the hands of President Joseph G..
| Brown. of the Citizens National bank
of Raleigh, and that the money will be
invested in such bonds as the directors
I. decide. This will form the guarantee
FUND that the lessees will cary out the
terms of their contract.
\ The News and Observer tells US that
the directors. by a vote Of ten to one,
| approved of the lease. The one negd-
tive vote was by Mr.. c.. E Foy, Of
New Bern, who gave notice that a suit
| will be instituted to set aside the lease.
| This will amount to nothing except,
perhaps, to cause some annoyance to
the state and railway officials.
I'VE cannot understand why Mr.. Foy
should make such determined opposi-
ton to a proceeding which is bound TO