The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-30
OFFERS TO BUY
/ STATE S STOCK
3. {. Duncan Will Pay So4o,'
oso for Interest in Atlantic
and North Carolina r. r.
NOW LEASED UNTIL 1896
Il Is Said That Governor Craig
Recommend That Sale
Be Made.
,,,e-Ial 70 The Times-Dispatch)


Raleigh. \. c.. January 2e.-E. c.
.puncan. president of the Merchants
Rational Bank. Of this city. director
..s+be Norfolk Southern Railroad Com
.,anv and one Of the co-receivers of the
soaboara Air Line before its reorganiza-
ION submitted TO Governor Craig
s,o-da,- "a proposition 10 purchase the
safS ssarcs. controlling interest
!, .be Atlantic and North Carolina
.pailroaa owned by tho State. his offer
beinc e. pay the State s949.e5o cash for
arc s, cs6.scO pa value stock the State
.owps 81 is understood that Governor
f-aic will transmit this offer TO the
oe.eral Assembly tomorrow IN
spe,ia! message recommending that the
serooosi.ior be accepted me totai
ou.standinc stock IN this railroad Is
J7s7e shares. The ROAD Is NOR ga "a
90 s. 90 and leased 20 the Noriolk
eouthcru Railroad Company unrll
.faruary l. 1870. 80 an annual roataI OF
.Ag;6. equivalent 10 3 per cent on the
&C., a. ra-. The state part OF this
annual rental is So .sss with gradual
Increase Of rate uDtil II reaches. before
expi-atior OF tho lease. per cent
commenting on kL-S RRo-N-pA@ 49,
puncan said tonight that IT IS purely a
husiness props.ticon. lie said that the
fr.tc Of North Caroline several years
sgo determined 10 go cut Of the rail-
road business: that IL had leased Its
Various roads for long terms Of years
fhat so TAR as the old Mulet' road
IS concerned. by which he meant the
Atlantic and North Carolina, II nae
been the orphan of the State ever since
y was built until IL was leased by Gov
e-nOr Avcock at the end of his admins
t-stiou. that IL has been bone OF
contention IN North Carolina both IN
finance and in politics for hfty years
fhat II had been burden and or no
profit 10 the State and 70 the private
s-ockholders. The road Is ninety-fcur
miles long. running from Goldsboro TO
Morehead City. The present lease.
sshich Is now owned by the Norfolk.
Southern Railroad Company, does not
expire until January. 1896. so It has
eightv-three years longer TO run so
for all practical purposes, the state
has sold the road and has no control
over is operation
= The road is mortgaged for $3.50
and the total stock owned BY the
State at par amounts 10 s., 26e, COO. So
i: is seen that ne if Offering nearly par
for the stock. If the mortgage IS de
Quoted from the face value of the
stock This stock has been selling on
the market for between 60 and 20 cents
Thus Il VIII be seen. he said. that
he has offered fair price for the road,
and the proposition submitted TO the
State is whether it will utilize the money
al this time or wait until every man
Row living is dead and gone. and for
their grand children 70 enjoy the bene-
ifs of it. The cash value of the road
is certainly not greater than is offered,
he said.
Mr.. Duncan further stated that II
was currently thought that North Caro-
ina was borrowing money at per cent.
but that this was great mistake
AS matter of fact. the bonds bear only
fper cent. but they are taken by North
Carolina investors and under the law
tBey are exempt from taxation. and
he State loses from ~ per cent down.
depending upon where the holder Of
its bonds lives
The State will not. he says. get over
fper cent from its stock in the Atlantic
and North Carolina Railroad until
after thirty-two years. For the next
twelve years il VIII get over 3 per cent.
and then 81 per cent for the next ten
years.