The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-09-02
Proposition of Rowland
Goes.
Continued from First Page.)

| ing to the sad Atlantic e North Caro-
| lima Railroad Company, al lof which
shall be delivered to me at the begin
ming of the term free from all liens,
encumbrances, debts, claims and liza
bilities. except the present bonded in
debtedness of the Atlantic & North
Carolina Railroad Company.
Second will assume and pay dur
ing the continuance Of the said lease
the interest accrung on the present
bonded indebtedness of the Atlantic &
North Carolina Railroad Company as
the same falls due but / shall not be
in any manner liable for the payment
of the principal of the said bonded in
debtedness, provided, however, that if
the said Indebtedness should be re-
funded at any time during the con-
tinuance of the said lease. the rate of
interest shall be the lowest practicable
rate at which the said bonds can be
sold at par and | shall have the privi-
lege of placing the said bonds at par
and | 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 ]
be required to pay a greater rate of
interest thereon than that which the
said indebtedness now bears, to-wit:
6 per cent. per annum.
'Ihird-That | will pay all taxes OF
every character which may be here
after assessed against the Atlantic &
North Carolina Railroad Company
during the continuance of the said
lease.
FOurth-That [ will pay all the eX
penses of keeping alive the organiza
ton of the Atlantic & North Carolina
Railroad Company and all expenses
of inspection to be made from time to
time by competent railroad experts,
IL a.
North Carolina Railroad Company,
with the view of ascertaining whether
or not the terms of the lease are com
piled with on the part of the lessee,
all of which expenses shall not to-
gether exceed the sum of twelve hun
dred (s1200) dollars per year.
Fifth-That | will enter into proper
covenants to protect and save harm
less the Atlantic & North Carolina
Railroad Company from all loss or
damage that may arise on account of
the negligence or "torts" of the lesseeS
during the continuance of the said
lease.
Sixth-That [ will take all the sup
plies on hand at the time of the de-
livery of the property under the lease
at the true market value thereof, and
will pay therefor in cash or secure the
payment of the same in such manner
as the Atlantic & North Carolina Rail
road Company may require.
SeVenth-That | Will keep ano
maintain the said railroad, rolling
stock and 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 & North Caro-
lima Railroad Company in relatively
as good condt ton as when received.
E,ightll-To secure the payment Of
the rentals above recited, and as well
the due and proper performance OF
al the stipulations contained i'll said
lease | will deposit with the Treas
urer of the State of North Carolina, or
such other depository as may be
agreed upon, one hundred thousand
($1O0,000) dollars in United States
bonds or North Carolina bonds or
such other bonds as may be agreed
upon and keep it on deposit during
the term of this lease, or until such
other arrangement is made as shall be
satisfactory to the State of North
Carolina and to the Atlantic & North
Carolina Railroad Company, and in
addition thereto | will enter into q
covenant, to be made condition in
the said lease that / will eXpend and
apply, or cause to be expended and
applied to the permanent betterment
of the road bed, terminal facilities
and equipment of the said railroad
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 ($250,000) 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, corporation already
organized under the laws of this State,
for the purpose of operating; | being
now the principal stakeholder of the
said Rowland Improvement Company.
The form and details of the said lease
to be settled by counsel.
Very respectfully,
RICHARD S. ROWLAND.