The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-04-23
nOND INSURANCE AND
II TRUST COMPANY NEEDED.

umns of The News and Observer with
Il communication. So here we are
again rapping for audience.
First l want to congratulate you
on your able editorials of April 13tn.
They are all three able and timely,
and should be pasted in the scrap
book for future preservation. Not
that your paper is not bringing MI
the time good healthy progressive
reading. Private Ownership of Pub
lie Utilities in Municipal Government"
is sound as the Rock of Gibraltar.
Railroads Taxed with Cost is
healthy reading. Cant Buy the
South With Pie" is almost, if not, d
pure gem of the first water
Our neighbor AsheVilIe has just =
clared that by the glass is the better
way to handle the chief destroyer of
mankind and human happiness Much
feelings were aroused over the sub
ject, but it is settled and the hope is
that the former good feeling of liar
mOny among her people will hc re-
sumed. Our little gem city, through
one of It's enterprising citizens, Mr.
B. J. Sloan who has lately come here
from Georgia, has just about cornplct-
ed an enormous stone dam on Pigeon
River that is capable of gen" atinS
$500 electric horse power, and within
sixty days will be coupled up, flashing
electric lights on the streets OF our
city. Our enterprising road COM
miSsionerS have got the work
under full Roadway of ma
cadamiZing the four main public roads
leading from the court house. cast
west, north and south to the Emit
line of our ncigh5or township which
when completed will give Us beautiful
driveWays the year around ana vii.
be a thing of beauty and a joy for
ever
The contractors are at work putting
down the curbing stone to pave Main
street with vitrified brick. pur W ter
works are being improved. SO we are
coming abreast with the times. The
Waynesville Factory Site and Electric
Power Company is now a reality, and
is getting in shape to donate free fac
tory sites in lovely locations for cotton
factories and all kinds of wood-work-
ing factories and industries, with
cheap electric power at their doors
and good cold mountain spring wa
ter in the front yards TO pipe into thcir
houses. The Wayncsville Railway
and Power Company, which is prop
erly the Waynesville and Asheville
Electric Railway Company, was grant
ed it's charter by the last session of
the Legislature, and is getting itself
in shape to soon begin to lay out the
line. II connection with it is in
VOlVed the establishment of a perrn2-
nent chautauqua near Waynesville.
For some years past your humble
servant has been making a study. anu
a most thorough one. of how to help
the young and enterpriSing moi. Of
our State to get money to develop our
resources at less sacrifices than has as
rule been required of them in the
ct NJ a
rate as to discourage progress aud
legitimate industrial development.
You have given some strong and
wholesome editorials on the lines of
insurance money leaving the South
far in excess of the amounts that are
being returned per annum. The Flor
ida press is agitating the same sub
ject. For a number. of years | have
been giving careful study 10 the oper-
and the trustee ! companies, the
guaranty companies, the promCt.
ing companies and insurance COM
panieS of the East, and have been adj
vocating the formation or the taking
up the work by some trust company
already formed, and going into
bond insurance and trust
company. Our Southern Industrial
bonds are subjected to too heavy COM
missions and fees in finding a mar
ket in the East when a small rate
or insurance premium will insure pay
ment in full of the principal of a
bond debt on any sound legitimate en-
terprise at maturity. With this done
half of the burden is lifted in find
ing market for the bonds, and the
enterprise itself hasSthen only to show
the bond buyer that it is certain to
promptly pay the interest. These two
nj he nf
keting the bonds is removed.
To accomplish the insuring of the
principal of the bond strong insur-
ance company is needful and it
should have the hearty co-opera-
tor of all the banks and trust COM
panies in the State. AS the business
of the bond insurance and trust com
pany will not be to do a banking bust
ness in any sense Of the word but to
act as trustee and insurer for the
principal of the bond, and for only
such bonds as the banks and trust
companies in the State can recon-
mend to their customers as gilt-edged
investments in every respect, giving
the opportunity to sour home people
to invest their surplus money in their
own home Industrial securities
their own banks. Several mill
lion dollars of money is sent East an
iluchIIy " hI!u investment III lOllS llIilc
bonds
In order to find out the sentiment
of the banks in this State on the sub
ject of the establishment of such an
institution. | sent a special letter for
a card reply to about one hundred
banks scattered through the State.
The mail went out on the 5th and al
ready about one-third of them have
replied, heartily favoring the plan.
The borrower of money to develop
and build up community is a public
benefactor, and not a supplicant APP
pealing for ar accommodation. 1t
is an accommodation for him to take
up and make use in legitimate indus
try, of the idle moneys in any bank
or community. In New York, South
ern industrial enterprises have been
almost universally put on the stool
of supplication, and many times hu-
initiation, and then squeezed to the
limit of endurance. Our undeveloped
resources are our assets, and our legit-
innate resource is as valuable an asset
as the Eastern mans money And
when we take his money without just
as strong safety guard thrown
around our property as there is
thrown around his money, we jeOpar-
die what is just as valuable to us
rs his money ic n