Assembly 
 
 7 IE54- 
 
Library of the 
 University of North Carolina 
 
 Endowed by the Dialectic and Philan- 
 thropic Societies 
 
 Op 385. 1 - MElp 
 
 00042071 
 
 890 
 
 FOR USE ONLY IN 
 THE NORTH CAROLINA COLLECTION 
 
 Form No. A-368. Rev. 8/95 
 
Leg. Doc. No.] 
 
 [Ses. 1854-'55 
 
 COMMUIICATKM 
 
 preaikitl of t§ % C. Iftailrnai Comptiij 
 
 GENERAL ASSEMBLY, 
 
 RALEIGH : 
 
 W. W. HOLDEN, PRINTER TO THE STATE. 
 1854. 
 
Raleigh, December 4, 1 854. 
 Hon. S. P. Hill, 
 
 Speaker of the House of Commons. 
 
 I have the honor to transmit to you the accompanying 
 communication to the General Assembly, with the request 
 that the same may be laid before the House of Commons, 
 and then communicated to the Senate. 
 
 Very respectfully, 
 
 Your obedient servant, 
 
 J. M. MOREHEAD, 
 
 President of the North Carolina R. R. Co. 
 
COMMUNICATION. 
 
 To the General Assembly of North Carolina : 
 
 The people of the State having entrusted to your wisdom 
 and discretion their interest and welfare, it seems to be due 
 to them and just to you, to lay before your honorable body, 
 such matters and things as may aid you to discharge with 
 fidelity and ability the important trusts confided to you. 
 
 To that end the North Carolina Railroad Company deem 
 it proper, through me as their organ, to put you in possession 
 of such facts as will enable you to understand thoroughly 
 the progress of its works, and the condition of its finances ; 
 and from your wisdom to ask such prudent counsel and aid, 
 as will ensure the completion and triumphant success of this 
 great work. 
 
 The State is by far the largest Stockholder in this com- 
 pany, and consequently, so far as mere profits are concerned, 
 is deeply interested in its quick completion and successful 
 operation ; but when we reflect upon the extraordinary rev- 
 olution which it is likely to produce upon all the industrial 
 pursuits of life : how it has already quickened and will con- 
 tinue to quicken industry in agricultural, commercial, min- 
 ing, manufacturing, and mechanical pursuits ; the mere 
 question of dividends shrinks into insignificance, when com- 
 pared to the vast advantages resulting to the citizens. We 
 therefore beg leave to lay before you the following report for 
 your consideration. 
 
 The contractors on this road were mostly required to com- 
 mence iheir contracts by the 1st of January, 1852, and to 
 complete the same by the 1st of January, 1854 ; and it was then 
 believed that if no unforseen obstacle presented itself, the road 
 would be completed by the end of the year 1855. Nothing 
 has yet occurred to induce a change of that opinion. 
 
 By the end of the present year the road will be finished 
 from Goldsboro' to Denhamsville station, some 14 miles 
 
southeast of Hillsboro', the wliolc distance being 75 miles ; 
 and by the same time it will be finished from Charlotte to 
 Salisbury; a distance of 43, making the whole length of the 
 road then completed 118 miles, and trains now ready, will 
 be forthwith put on each end of the road, sufficient to do all 
 transportation of freight and passengers. 
 
 The intervening space between Denhamsville station and 
 Salisbury, a distance of 105 miles, has been graded, with 
 the exception of a few unfinished sections, and the bridge 
 masonry, a very heavy item on this part of the road, is 
 mostly completed ; the next year will therefore be employed 
 principally in the superstructure of bridges, track-laying, and 
 the completion of the necessary appendages to the road. 
 
 That but little delay may be experienced during the next 
 year, contracts have been and will shortly be made for the 
 construction of all wood and water stations, warehouses, sills, 
 rails, chairs, spikes, eve. 
 
 The contract for 9,000 tons of rails, (of 2,240 pounds. per 
 Ion,) to be shipped monthly, in lots of 1,200 tons, shipments 
 to commence in the present month, and deliverable one-half 
 at Charleston, South Carolina, and the other half at Ports- 
 mouth, Virginia, free of all charges on the wharves, duty 
 excepted, at $42 50 per ton, cash on delivery, in North 
 Carolina currency, and payable at our own banks, is deem- 
 ed a favorable contract, under the existing state of the iron 
 market ; and but for the onerous duty unnecessarily imposed 
 on rails, in making provisions for this large purchase, we 
 should be released from a heavy item of expense. 
 
 The accompanying printed report of the proceedings of the 
 Stockholders at their meeting in Iliilsboro' in July last, com 
 tains the report of the President and Directors^ as also that 
 of the Committee of Finance, and to which report reference 
 is made, to show the progress and condition of the work, and 
 the state of the finances of the company to the 1st July last-.* 
 From the report on the finances of the company, at page 
 30, it will be seen that there was then due from the Stock- 
 holders $217,339, and from the State $600,000, of which 
 
Stockholders have paid since ist July, $77,000, and the 
 State $230 ,000, leaving still due from Stockholders $140,000, 
 and from the Siate $370,000. 
 
 Of the million subscribed by Stockholders, it is believed 
 $25,000 or less will cover nil insolvencies, and the balance 
 of the $140,000 due from them, will be mostly paid upon 
 the completion of (he contracts taken by Stockholders. It 
 would seem hard to compel these contractors to pay the 
 amounts due on their stocks in cash, when in a few months 
 it must be refunded to them in payments on tfieir contracts. 
 
 Yet the indulgence extended to them and to some others, 
 whose solvency is doubtful, but the stock secured by indul- 
 gence ; the cases of insolvency and the sums due from 
 Stockholders whose stock has been sold, being withheld, all 
 operate to the inconvenience of the company, by causing 
 double those amounts to be withheld on the part of the State, 
 according to the provisions of the charter. 
 
 As the interests of the Company require the payment of 
 all its Stock at the earliest day practicable ; and as all defer- 
 red payments are charged with interest ; and as the Stock- 
 holders have always paid in advance of the State, it is most 
 respectfully submitted, whether the interests of the State, as 
 well as that of the Company, would not be subserved by 
 the immediate payment of the balance of the last half mill- 
 ion due from the State. 
 
 Nearly or quite the whole amount of money yet to come 
 into the Treasury will be exhausted before or shortly after 
 the first of January next in payments, for iron already de- 
 livered, and the duty and transportation thereon ; for negro 
 hire ; balance due to Contractors upon the completion of 
 their contracts $ for sills, chairs, spikes, <fcc, and for motive 
 power ; and it is believed, it will be sufficient to meet all lia- 
 bilities of the Company, up to that date on contracts already 
 made, except, as to the last purchase of iron. 
 
 Thus it will be seen to meet the expenditures of the next 
 
 * For Report of Committee of Finance, see accompanying Report p. 23 to 31, 
 
 Leg. Doc. No. .] 2 
 
year for the completion of the Road, provision must be 
 forthwith made. And two questions present themselves : — 
 1st, the amount to be raised, — 2nd, how that amount is to 
 be raised ? 
 
 As to the first, exhibit A hereto attached, showing the lead- 
 ing items of expenditure, for which provision has to be 
 made, shows that at least one million of dollars will have to 
 be raised. 
 
 As to the second question, how that sum is to be raised ; 
 the charter provides several modes, viz : contemplating by 
 its 23d section the insufficiency of three millions to complete 
 the Road, it authorizes the Company to enlarge its Capital 
 Slock to a sum sufficient to do so, " either by opening 
 " books for new Stock, or by selling such new Stock, or by 
 11 borrowing money on the credit of the Company, and on 
 " the mortgage of its charter and works." 
 
 To open books for new individual subscriptions, would be 
 useless. The present Stockholders made a noble effort to 
 secure the charter in the first instance ; and many, sacrific- 
 ing interest to patriotism, subscribed beyond their ability to 
 pay with convenience. From them it would be as unjust 
 to require, as it would be ungenerous to request additional 
 subscriptions. 
 
 To throw new stock into market at its present marketable 
 value, say fifty cents in the dollar, would be as unjust to 
 the State and present Stockholders, as it would be ruinous 
 to the interests of the Company. Two millions of stock to 
 raise one million of dollars, would swell the capital of the 
 Company to five millions ; a proposition not to be enter- 
 tained for a moment. 
 
 But the idea of seeing a work of Internal Improvement 
 in North Carolina starting on its career of usefulness, free 
 from debt and untrammeled by difficulty, is so novel, and at 
 the same time so pleasing, I cannot but indulge it, though 
 it prove a delusion. 
 
 The State is a stockholder in the company to the amount 
 of two-thirds of the capital ; any aid she may give to the 
 
company will be, relieving herself to that extent. She is 
 able to, take the whole stock, necessary to complete the work; 
 she will then be the owner of three-fourths, instead of two- 
 thirtls of the stock, and the company will go into operation 
 free from all embarrassment.. , 
 
 I therefore, in behalf of the company, invite your atten- 
 tion to the most serious consideration of the subject in this 
 point of view, not doubting but your conclusions will be 
 wise and just, and hoping they will accord with my own. 
 
 Indeed the experiment, if an experiment it can be called^ 
 will be worth the. subscription. 
 
 The early history of the embarrassments of the other Rail 
 Roads of our, State, has often been cited to the prejudice of 
 the cause of Internal Improvement ; now that their embar- 
 rassments are, to some extent, removed, allow nae lo invoke 
 their late triumphant success in behalf of the good cause. 
 
 If your experiment prove successful and the stock shall 
 pay good dividends — the purse-strings of the overly cautious 
 will loosen, and the miser's hoarded wealth will crawl from 
 its hiding-place, to seek investment in stock, perpetual in its 
 duration and increasing in value, as the production and pop- 
 ulation of the country shall increase. 
 
 If it be unsuccessful., here will be an experiment fairly 
 made to guide and direct the prudence of future legislation. 
 
 Should these suggestions not meet the views of your Hon- 
 orable body, then nothing remains to the company but in- 
 debtedness. 
 
 And of whom shall the money be borrowed ? 
 
 To issue the bonds of the company to the amount of one 
 million of dollars, and throw them into market already glut- 
 ted with stocks of every hue and dye and uncouth name, 
 issued from Wall street to the remotest bounds of the Union, 
 would be attended with a sacrifice of their real value, of 
 which the Slate would lose two-thirds. 
 
 Would it not be better for the State to issue her own bonds 
 for that amount, payable at some remote day, and put them 
 into market ; and hand the proceeds — or perhaps better — the 
 
8 
 
 bonds themselves, over to the company, to be used only in 
 the construction and equipment of the Road, taking a mort- 
 gage upon the works if deemed necessary, to secure the pay- 
 ment of the interest and principal as the State may require? 
 If the company must borrow money, this appears to me, 
 to be, by far the most feasible plan for the interests of the 
 State and of the Stockholders. 
 
 Should the Legislature determine to take the Stock ; then 
 I would respectfully suggest that the Stock be increased one 
 million of dollars, only — or if they prefer to aid by the loan 
 of the State's bonds or the proceeds thereof, then it may be 
 as well that the amount should correspond with the estimate 
 in exhibit A. viz : $1,235,300 : so that, the company may 
 commence its operations, having nothing to provide for, until 
 some distant day, except the interest on this debt and its cur- 
 rent expenses. 
 
 As by the estimates now submitted, it will appear, that 
 the Road, when fully completed and equipped, will cost, as 
 per exhibit A — $1,235,300, over and above the three mil- 
 lions ; it may seem to lhem$ who do not understand the sub- 
 ject, that the original estimate of $3,405,132 made by the 
 Chief Engineer and adopted by the Board, was wide of the 
 mark, and erroneous in its calculations. 
 
 If any such impression be made, it is clue to the Chief 
 Engineer, and to the Board, with whom I had the honor 
 then to act, in adopting the first estimate, that it be remov- 
 ed. A short examination of the subject will excite surprise 
 at the accuracy of the first estimate. 
 
 That estimate was made, to ascertain what sum would be 
 required, to construct the Road, and fairly put it in operation, 
 and the Chief Engineer after estimating that the Roadway 
 would cost $2,165,332 — the w r ork-shops and fixtures $100,- 
 000 — proceeds to say : " The number of Locomotives and 
 i( their trains depend of course entirely on the amount of 
 " business, and may be increased as the wants of the Com- 
 <• pany require. It is not usual to embrace in the original 
 " estimates and charge to capital more than barely sufficient 
 
IC to put the Road into operation, and with inconsiderable 
 " additions, carry it through, and enable it to do the business 
 " of the first year. With this restriction, I submit the fol- 
 " lowing estimate, viz :" 
 
 The Engineer then estimates for ten Locomotives, six 
 passenger, four Baggage and eighty Burthen Cars, at 
 $139,800 — which sum added to the two preceding sums gives 
 $3,4o5,132 for the Road-way, equipment and Workshops. 
 
 The estimates now presented to you, are intended to show 
 what sum will be required to complete the Road, all neces- 
 sary buildings and appendages, and to equip it in a style 
 commensurate with its importance. 
 
 By these estimates the entire cost, will be $4 ; 235,300 ; (be- 
 ing the whole amount contained in exhibit A., over and 
 above the three millions already subscribed.) 
 By exhibit A. it will be seen the motive power yet to be 
 contracted for, amounts to the sum of $289,600 
 
 By reference to the accompanying printed Re- 
 port 3 at page 21, will be seen the motive pow- 
 er already contracted for, and the most of which 
 is already received, which ma} 7 be put down 
 at a cost of 221,150 
 
 Thus making the motive power cost $510,750 
 
 Deduct estimate for motive power in first estimate, 139.801 1 
 
 The increase for motive power is $370,950 
 
 To this may be added the estimate for Houses, 
 for Overseers and hands, which might be, but 
 ought not to be, dispensed with, viz : 20,00(1 
 
 Also may be added at least the sum of $20,000, 
 rendered necessary.in the estimate for addition- 
 al sheds for Locomotives and Coaches, 20,000 
 
 Thus we have the sum of $410,950 
 
 contained in the present estimate, which was not intended to 
 be estimated for in the first. 
 
 The extraordinary rise in the price of iron since the first 
 
10 
 
 estimate, could only have been seen with a prophetic eye. 
 Of the twenty-three thousand tons bought for this Road, 
 5,000 tons were purchased before the rise, and 18,000 tons 
 since, at an enhanced price of at least $22 per ton, making 
 the cost for iron at least $396,000 more than was anticipat- 
 ed. Add this sum to the foregoing sum of $410,950, and 
 we have the sum of $806,950, which being deducted from 
 the present estimate $4,235,300, leaves $3,428,350. De- 
 duct from this the first estimate of $3,405,132, and the sum 
 of $23,21S is left as the discrepancy as to the cost of the 
 Roadway, between the first estimate made before the first 
 shovel of earth was removed, and the second estimate now 
 made, when most of the work is executed. And here let it 
 be re marked, the price of labor and provisions has nearly 
 doubled, since the first estimate was made. 
 „ I must be allowed to say again, that the first estimate was 
 rerrjarkable for its accurac) r . 
 
 The question maybe asked, il are you sure the present 
 estimate will finish and equip the Road?" 
 
 We answer yes, yes ! Il will finish the Road and equip 
 it to the extent for which we have estimated; which may an- 
 swer for several years to come. But we hope> and believe, 
 the day is not far distant when more than double this motive 
 power will be required on this Road, and that will be an aus- 
 picious day for the Road and the State. 
 
 Let the extensions be made Eastward and Westward, and 
 the amount of business which will be thrown upon this 
 Road can scarcely be conceived. 
 
 Let the North Carolina Railroad, like a huge tree, strike 
 its roots deeply into the shores of the Atlantic, and be moist- 
 ened by its waters, on the east — stretch ils noble trunk through 
 the centre of the State, and extend its overshadowing and 
 protecting branches through the valleys and along the moun- 
 tain tops of the west, and it become, indeed, the Tree of 
 Life to North Carolina. 
 
 The amendments to the charier of the company, enacted 
 by the last Legislature, were declined by the Stockholders 
 
11 
 
 in general meeting, and a committee was appointed to wait 
 upon your body and ask for such amendments as should 
 be deemed necessary and proper. 
 
 As the company is restricted from holding lands, beyond 
 what is absolutely necessary for its uses, it is respectfully sub- 
 mitted, whether lands held by it should not be released from 
 taxation. 
 
 The amount of taxation is not so much to be considered 
 as its inconvenience ; the lands are stretched along a line of 
 220 miles, in exceedingly small pieces or ]ots, sometimes not 
 exceeding in width the road-way, and every county and cor- 
 poration in which it lies, manifests a becoming vigilence to 
 see that it is duly taxed. When the fee simple for the tract 
 of 200 feet in width could be procured at the same price the 
 right of way would cost, the fee has been taken j and it is 
 very inconvenient to list for taxation in its proper ditsrict all 
 these small lots or parcels of land. And the corporations 
 through which the road passes, are clamorous for fine ware- 
 houses, sheds, and other buildings, located within their limits, 
 to decorate their respective towns ; nor will that clamor cease 
 until taxes levied upon the increased value of their property, 
 shall aid in improving and decorating other parts of their 
 respective towns. 
 
 While the company are desirous to make the road useful 
 to every portion of our citizens, yet they are not ambitious of 
 distinction in this line of usefulness ; they therefore hope 
 that the fragments of real estate which they are permitted to 
 hold, may be released from taxation on the part of the State 
 or of any county or corporation. 
 
 I hope I may be pardoned for suggesting that the time is 
 so very short before the company will be receiving their iron 
 on the last contract, for which cash is to be paid on delivery ; 
 it behooves them to be providing the means for the payments. 
 It is therefore very desirable to them, to know at an early day, 
 the conclusions to which your honorable body may come. 
 
 J. M. FOREHEAD, 
 
 Dec. 4th ; 1854. President of the N. C. R. R. Co. 
 
12 
 
 EXHIBIT A. 
 
 Showing estimate of expenditure to be provided for. 
 
 Grading, 
 Masonry, 
 Superstructure tof Bridges, 
 
 Do of Roads, 
 
 Warehouses and Walersiations and 
 
 Sheds for Engines, Coaches tfcc, 
 Sills, 
 
 Add contingencies for grading, Rock 
 excavations, &c, 
 
 From this sum of 
 
 may be deducted $200,000, esti- 
 mated to be embraced in contracts 
 already made, and which will be 
 paid out of the three millions, 
 
 Iron 9,000 Ions at $42,50, 
 Duly at .$12 per (on, 
 Transportation' $6 per ton, 
 
 Chairs $14,000, Spikes $14,000 
 Additional Motive power. 
 Twelve Locomotives, each $9,500, 
 
 Do. 1st class Coaches, each $2,500 
 Six 2d class do., each $1,000, 
 
 Two hundred freight cars, each $650, 
 Twenty gravel cars, each $300, 
 
 Houses for Overseers and hands, 
 
 Machine Shops., 
 
 Land damages and purchases, 
 
 *3S2,500 
 
 108,000 
 
 54,000 
 
 $114,000 
 
 30,000 
 
 9,000 
 
 130,000 
 
 6,000 
 
 $89,700 
 27,500 
 02,800 
 00,000 
 
 84,000 
 108,200 
 
 $43S,200 
 
 10,000 
 
 $448,200 
 
 200,000 
 
 $248,200 
 
 544,500 
 
 2S,000 
 
 289,600 
 
 20,000 
 
 100,000 
 
 5,000 
 
 I $1,235,300 
 
 As the entire expenditure for motive power, Machine 
 Shops, Houses, &c, may not be required for sometime to 
 come, the sum of $225,300, might be deducted for the pre- 
 sent; leaving one million to be provided for.