News dnd Ob- serve.*''
/VI
<Xy30, i9£d
NORTH CAROLINA RAILROAD;
CHARTER AND CONSTRUCTION
(Chapter From State History When "Internal Improvements”
Was Slogan of Leaders — Beginning of the State's Three
Principal Railroad Systems — Routes Not Fixed By Politi¬
cal Considerations As Has Been Sometimes Claimed.
By W. A. GRAHAM.
The work on “internal Improvements’’
engaged the attention of the State be¬
fore the formation of the Federal
Union. The plan first considered was
naturally improvement of waterways by-
cutting canals, removing obstructions
from streams and providing locks for
the passage of boats over the shoals,
then connecting the back country with
the water “turnpikes.”
After the discovery of steam as a
motive power, the construction of rail¬
ways in lieu of using the streams was
the question for consideration. The in¬
vestments in the water ways projects
nearly all resulted in financial loss.
Tho first railway charter that ma¬
terialized in a road was that of the
Raleigh and Gaston Company, enacted
in 1835. The road extended from Ral¬
eigh to Gaston, in Halifax county, on
the Roanoke river, and thence a few
miles to connect with the Petersburg
and Weldon Railroad at the “Weldon
Junction.” This was changed in the
"50V. to go to Weldon in lieu of Gas¬
ton, and remains to this day os an
important part of the Seaboard system.
The State made no direct appropria¬
tion to the company, but endorsed bonds
for which it was secured by the deben¬
tures endorsed by the individual stock¬
holders.
State Buys Railroad Stock.
In 1836 the State subscribed to two-
fil'ths of the stock of the Wilmington
& Raleigh (now Wilmington & Weldon)
Railway Co. to be paid when the in¬
dividual stockholders had secured the
other three-fifths, the individuals ta ing
$900, OUU and the State $600,000 of the
stock. The State paid its subscription
with $600,000 of the money received
from the National Government and gen¬
erally known as “deposits.” The Na¬
tional Government had in its treasury-
much more money than it had need for;
this was deposited with the respective
states to be returned when called for.
This stock was a part of the Literary
or Public School fund, and in recon¬
struction times was sold by the parties
in control of the State government for
less than forty cents on the dollar and
invested in worthless special tax bonds.
Today it is worth at least thirty dollars
to one at that time.
At this session (1836) of the Legisla¬
ture, W. A. Graham introduced a bill
to charter the Raleigh and Columbia
(S. O.) R. R. Co. He had introduced
the- bills to charter the Raleigh & Gas¬
ton Co., and was chairman of a com¬
mittee to invest the $600,000 of deposits
in the Wilmington & Raleigh Co. The
Charlotte & Columbia road had not then
been chartered; it would have been a
part of l ho. Raleigh & Columbia road.
Awaiting Construction.
! The Toads having been chartered, it
Svas necessary to await their construc¬
tion to sec the value of the investments,
end for several sessions there is not
much railway legislation.
/
In 1810 the
State had become security for $50,000
annually for six years (1812-17), total
$300,000, for the Wilmington & Raleigh
Co. The stock of this company was
$1,350,000, cost of construction $2,000,-
000. it paid from inception and settled
«11
the obligations against it, principal
and interest. The stock of the Raleigh
& Gaston road was $650,000, its cost of
construction $1,500,000, a deficit of $900,-
P00. $800,000 of this was bonds en¬
dorsed by tho State. Tho road had
'defaulted on tho interest, the company
,4vas deemed insolvent and "bid in” by
the Governor for tho State at $363,000.
The road was afterwards re-chartered,
the State endorsing for it to the amount
of $500,000, which was paid the State
in its bonds.
The liabilities on account of these
koads having been settled, the matter of
extension of internal improvements was
revived for discussion. Heretofore the
roads had not been of very extensive
length and the individuals were re¬
quired to furnish the greater portion of
the expense. Now roads of longer
length and requiring greater expendi¬
ture by the State were necessary. The
Governor in his message to the Legis¬
lature in 1848 recommends a road from
Raleigh via Salisbury to Charlotte, to
be extended to Goldsboro, Fayetteville,
etc. He earnestly urges the importance
of this connection, not only as useful
to tho citizens of the State but as a
valuable investment in tho link of
‘‘through’’ travel and commerce — “it is
ns important as if Raleigh and Charlotte
were depots on natural waterways”
leading to the markets of the nation,
l.egislature Calls For Statement.
The Legislature calls for a statement
bf conidtion of tho two companies in
