The gold leaf., 1906-03-29
Communicated.

Industries Located Here.
Communicated.
The North Carolina Connecting Rail
wav Company intend not only in build
ing and completing the present line OF
road from RoxbOrO TO Spring Hope,
which puts it III touch with the four
main trunk lines of the South-namely,
the Norfolk & Western, Southern. Sea-
board ami Atlantic Coast Line-but CON
template in the future extensions West
along the North tier counties OF North
Carolina to Bristol, Tenn. East from
Henderson to Edenton and South to
New Bern, thus being in perfect touch
with Norfolk and Beaufort, furnishing
the line with eight deep water outlets
with good prospects of the Inland Ship
Canal running via Norfolk to Beaufort.
This line will be in perfect touch with
the coal fields OF the South and command
ing the greatest outlet to the export
trade OF the ocean.
The draft of trade on the East and
South Divisions will be fully great enough
to burden the main line or Western Di-
vision to Bristol, Tenn, creating the
necessity for Il double track from Hender-
son to Bristol. The profits on such
| line VIII be very great.
Stock.
Let us illustrate the stock problem as
follows: The present capita! stock $4oO,-
600 to be increased to at least $500
900 to &C mplete the line from Roxboro
to Spring Hope. Well, say purchase 10
shares, get 20 shares and when the cap
itai is increased having taken the prelim-
mary risk | am entitled to my pro rate
share of the increase of stock consequent
Iy will have 20 shares multiplied by 3,
because the capital stock has been in
creased by 3. And now have go shares.
| originally purchased 10 shares or in
vested 81 900 | now have so shares
or $4,000. face value. With ali future
extensions am entitled to my pro rate
increase and when the line runs from
Bristol, Tenn via Henderson reaching
Norfolk and Beaufort, will be entitled
to the stock rate of one million or 40
shares multiplied by ten or 400 shares,
face value $4,000. The dividends will
be large but for argument say it will pay
> per cent. net above maintenance and
fixed charges. > per cent. of $40, 900 is
81 900. or twice my original investment
annually.
1t would be folly to ask for a bond is
sue for simply bringing this line to Hen
dersOn, as it would likely be refused, but
let us look at this problem from another
standpoint, namely, the COmpany's in
dustries such as general offices, machine
shops, round house, repair shops, car
shops, finishing mills, etc, AN expendi-
ture of several hundred thousand dollars,
and the employment of several hundred
men all radating from this center, and
spending their money in Henderson. The
natural increase ofpopulatiOn and money
spent here will Justify an extra effort as
no place can secure the above without an
effort.
Let us illustrate the above: Say there
is 500 900 bond issue to secure above
industries. Who pays this bond issue,
the people by tax? No. The Railway
Company? Yes How? The city taxes
the Company $4,000 per year-so S3,-
6OOx5O yrs=S1SO, 900 paid by the Com
pany to the corporation, consequently
the Hallway Company eliminates the
bond issue and interest and there is
enough left to build an exceptionally fine
city building or start a bank. So the
Railway Company pays the whole bill
and the town gets the industries of the
Company permanently.
Results.
The prospects OF other places making
strong bids makes the situation grave.
And the permanent location of such a
line of industries is not to be lightly es
teemed The results from such location
will add greatly to the interests Of this
city and give us an abundance of trade
and travel we never enjoyed before, and
cannot enjoy without this line of road.
We certainly ought to make sure Of such
a vast increase to our trade and city.
Bonds can be arranged to be paid when
such industries are permanently located
here, and the property to revert to Hen
derson in the event of removal, thus Sc
curing them for our city in all the future
years. Let us think on these things can
didly and honestly and then act
Financing.
The financing of this railway is assured.
And all there needs to be done is the
closing up successfully of the prelimi-
naries from now to the financing point
and this enterprise will be complete