of tbe ©ntoersit y of JSortfjCar olina Wbi& fcoofc toa* pregenteb Cp 585". I Rl5c fim mbm Mi nflniiffltn ...'.; ■•.■•■:■:■ ■ B ;. ; . k -j- -. .-. v., — -\ I • ■ UNIVERSITY OF N.C. AT CHAPEL HILL 00042093215 FOR USE ONLY IN THE NORTH CAROLINA COLLECTION MS TITLE HAS BEEN MICROFILMED j>n Butler Proposed \ftaleigb and Eastern Ttorth Carolina Railroad Company Trom the Capital to Atlantic tidewater. PROSPECTUS Raleigh & Eastern North Carolina Railroad Company. Raleigh, N. C, February i, 1902. To issue, if actually needed for construction and equipment, $1,200,000.00 5 per cent semi-annual gold- bearing bonds, at thirty years maturity, payable monthly as work progresses, and not over $100,000.00 per month, making interest first year 2 1-2 per cent. Three hundred thousand dollars preferred stock, to bear 8 per cent interest before any interest is paid on com- mon stock. This stock, to the amount of $150,000.00, to be put on the market at $100.00 for paid-up $100.00 share. One hundred and fifty thousand dollars to be kept in treasury of railroad company, not to be sold for less than par, and then only for betterments, im- provements or investments, and then only as authorized by Board of Directors. Before work is commenced, 10 per cent of the amount subscribed to this preferred stock must be paid into the treasury of this company, and 10 per cent each month for nine months thereafter ; but no assessment of the stock to be made until per- fectly reliable banking houses or trust company have been agreed upon to handle all the bonds, if necessary, on equitable terms to this company., It is expected that the citizens of Raleigh will take $50,000, the citizens of Wilson like amount, the citizens of Greenville and Wash- ington $50,000.00, making in all $150,000.00 in pre- ft ferred S per cent stock for $150,000.00, to be paid in ten months. This is certainly a good investment, and will no doubt pay its interest after the road has been fully constructed and in operation for one year. Four hundred thousand dollars, common stock, to be issued to the promoters on a basis to be arranged by them for the purpose of putting the bonds on the market at about par value. As this line is, to all intents and purposes, the citizens' transportation company of Ra- leigh, Wilson, Greenville and Washington, it will ar- range that the majority of this common stock, which will control the voting power and affairs of this company, be held in trust for at least ten or more years, and can not be sold, leased or transferred to any competing or paral- lel transportation lines or common carrier. It will have the right to merge with or into any railroad con- nection at the extreme terminal, but under no circum- stances shall the original R. & E. N. C. R. R. be bonded for more than $12,000.00 per mile, without the consent of all the bondholders and a majority of the preferred and common stockholders. It is now understood for the present that the western terminus of this company will lie Raleigh, and the eastern terminus to be Washington, N. C, or some point on the Norfolk and Southern R. R,, in Beaufort or Washington counties, N. C, or beyond in an easterly or northeasterly direction. There is estimated to be 50,000 carloads of lumber between Raleigh and Wilson, 25,000 between Wilson and Greenville, and 15,000 between Greenville and Washington, total 90,000. Estimating this at one-half, 45,000 cars, at $15.00 per car, would give a revenue of $675,000.00, divided into ten years, making $67,000.00 per annum. A very small estimate of three thousand cars of cordwood per year would be hauled into the four cities mentioned above, at 60 cents per cord, ten cords to the car, $6.00 per car, or $18,000.00 per annum. Unlike many sections of North Carolina and our South- ern States, a large portion of this land which this road will pass through, or adjacent to, is more valuable with the timber removed, being fertile and adapted to cotton and particularly to tobacco culture. No estimate of revenue whatever is made for transporting cotton and tobacco from, or fertilizers and provisions into, the in- terior, although these are largely handled at the follow- ing stations other than the four cities named above: Louisburg, Henderson, Youngsville, Franklinton and other stations on the west boundary of the S. A. L. road ; Clayton, Selma on the southern boundary on Southern Railway; Rocky Mount, Elm City on the east; Spring- hope and Nashville on the north boundary on A. C. L. With the exception of the Louisburg Branch, ten miles in length, and the Springhope Branch, nineteen miles in length, with rather inferior construction and not extraordinary good service, both north of the Tar River, there is the following territory without railroad facilities: Twenty-five miles square, or 625 square miles between Raleigh and Wilson, about 400 square miles between Wilson and Greenville without railroad facilities except on the extreme boundaries; east of Greenville and south of Tar River and Washington there is about 500 square miles of territory without a railroad except on the extreme boundary, on the north, south and west, and the tide-water on the east. This would give us a territory of about 1,525 square miles, or 976,000 acres of land, to draw some of our tonnage from for revenue. It would not be unreasonable to presume that one-half of this territory is either under cultiva- tion or in timber, and that this new line must necessarily control 50 per cent of this tonnage, viz., one-half of 976,- 000 acres would be 488,000 acres, and allowing the very small estimate of one-half ton production of timber, then products to the acre would give us 244,000 tons, at the extremely low estimate of 50 cents per ton for transpor- tation, which would be $122,000.00, and at least ought to be added to our estimate of revenue. There are large quantities of undeveloped granite in Wake, Johns ton and Nash counties, and without the proposed R. and E. N. C. R. R., this valuable granite will remain dormant, while, on the other hand, it can be made a very valuable enter- prise and a large revenue to this railroad. We have not calculated, so far, this tonnage as a source of revenue to our company. The R. and E. N. C. R. R. will pass through the middle eastern half of Wake County, through the middle Wilson and Pitt, into Beaufort and, possibly, Washington. It will probably touch the north end of Johnston, the southern portion of Nash, and within a few miles of Greene and Edgecombe counties. 1 herewith attach report from Agricultural Department as to the soil production, population, tax assessment of the above counties. In the event Congress should fa- vorably consider the deep-water, inland channel route between Beaufort and Norfolk, or deepening by rock jetties the sand bar inside of Ocracoke Inlet to the depth of this inlet, also the river to a few miles east of Wash- ington gives us a depth of water of 14 to 16 feet, ample for all sailing vessels, coastwise steamers and all ordi- nary ocean vessels. There is about 200 miles of North Carolina coast, without a sea-going vessel leaving its coast, except Wilmington, in fact being the only port in North Carolina. This ought not to be, and with abund- ance of rock granite within fifty miles of the tidewater on the R. and E. N. C. R. R., any jetty work could be done at the extreme minimum, which seems possible, it would place Washington on a parity with most of the South Atlantic ports, 'and the many inlets being perfectly safe harbors in case of storm. It will place Raleigh and Wilson almost at tide-water, and nearer than most interior cities of like importance. Without the action of Congress, or deepening this in- land channel, or direct ocean line thorugh Ocracoke inlet, Washington has now ample depth of water for ordinary inland channel draught vessels, and with proper encouragement for tonnage, the water trans- portation line would, no doubt, give ample service and facilities for the business offered, and with this almost east and west direct railroad, the cities and country through which it runs, must, most assuredly, reap considerable benefit thereby. On the other hand, if this road should be extended to a junction with the Norfolk and Southern, or to Plymouth, with a connec- tion with the Suffolk and Carolina, it would open up another line to the port of Norfolk, and would be less than fifty miles longer than the present shortest rail line. We would have nearly as short a line from Raleigh to Richmond via Wilson and the A. C. L. as the shortest line now exists, and we think it barety possible to handle some Richmond and Raleigh business via this route. We have not figured this into our revenue, however. We have guarantees in writing from most of the business men of Raleigh,Wilson, Greenville and Washington that, everything being equal in freight rates, and practically in time, they will order their freight over this line. Nor- folk and Richmond being the natural gateways for North Carolina and its tributary business, a line run- ning, as this road will, must assuredly coDtrol a large tonnage, opening up new fields of commerce and not necessarily seriously injuring its competitors. Possible Revenue Estimate, Based Upon Actual Earnings of the Railroads now Entering the Four Cities Above Mentioned, Which this Line will go to or through : Inward Freight Revenue. Outward Freight Revenue. Total. Raleigh— S. A. L. proportion $200, 000 75, 000 200, 000 150,000 100, 000 60, 000 100, 000 40, 000 60, 000 $50, 000 75. 000 200, 000 150, 000 100, 000 60, 000 100, 000 40, 000 60,000 $250, 000 Southern Railway Wilson 150, 000 A. C. L. proportion 300, 000 Greenville A. C. L. proportion 120, 000 Washington— A. U. L. proportion 200, 000 0. D. S. S. Co. proportion Express, fish, etc Grand total $1,020,000 Passenger business not calculated or included in this estimate. It would not be unreasonable to presume that this new line, running from Raleigh through Wilson, Greenville and Washington to tide-water or other connection with Norfolk, that this citizens' line, business men's enter- prise, that 25 per cent of the above revenue would not accrue to it. Revenue from the four cities above, per annum, $250,000 Revenue from lumber and timber, per annum. 67,000 Revenue from cordwood, per annum 18,000 Total 1335,000 We know that this line can be operated for 60 per cent of its gross earnings (fuel being the largest item in op- eration, can be had for $1.00 per cord, delivered on its right-of-way), would be $201,000.00 for operation, leav- ing $134,000.00 for fixed charges and interest on stock. Interest on bonds, $60,000.00; taxes, $10,000.00; total, $70,000.00 ; adding $12,000.00 interest on preferred stock would still leave $52,000.00 to pay interest on common stock, purchase additional equipment if needed, make permanent improvements and betterments. Our figures are inside of an extremely conservative estimate as to earnings, operating expenses, construction and equip- ment, hence we do not know a safer or better investment in North Carolina. Without commenting upon the ne- cessities of our cities and country that this line will tra- verse, we will simply mention one or two points that our people want and do demand. Better transportation facilities between our capital, the eastern portion of our State and between the territory, towns and cities through which this road will pass. It now takes about eight hours to come from Washington, Plymouth and Green- ville to Raleigh, when it should not take more than three or four hours, and at nearly one-half the cost, hence comments are quite unnecessary. A large portion of the State that this line will traverse is the best wooded, most fertile, thickly populated, and easily to construct a railroad as compared with any portion of North Caro- lina, and we might say of any of our Southern States. The line having been practically located by an eminent civil engineer, and inspected by an experienced railroad operating official, who rode through the country and pronounced the line perfectly feasible, practicable and without any particular inconveniences of construction or operation, not having a grade over one per cent or curves of over four degrees. Does not cross any large or navigable streams, except at Washington; at this point a wagon or county bridge is maintained with per- 8 feet safety, as foundation is good for driving piles. There is now constructed a good lumber road from Ply- mouth to within about eleven miles of Washington, depot at latter place for this road now being erected, and it is contemplated this road will be completed to Washington within the next few months. This line intends to connect with the Suffolk and Carolina Rail- road by transfer boat from Plymouth to Edenton — the Suffolk and Carolina road, now arranging their bonds in Baltimore, where the road is owned, to make it a stand- ard-gauge line and extend it from Montrose Landing to Edenton, a distance of about twenty miles, thence to Suffolk and beyond to Norfolk, via S.A.L., N. and W., or A. C. L. A standard-gauge road is now projected be- tween New Bern and Washington , which will run through a very rich and fertile country, producing early produce in large quantities for Eastern markets. The southern terminus of the Eastern Carolina Railroad, running from Tarboro south, will connect with our line at its southern terminus. These three connections must naturally contribute something towards the tonnage of our line, which is not included in our revenue esti- mate. While at this time we have not contemplated a branch from our main line to Rocky Mount, still this is quite feasible, and will shorten the rail line between Raleigh and Norfolk twenty miles and be the shortest line between these two points, and no doubt we would get some business into and out of Rocky Mount. 9 ESTIMATED COST OF CONSTRUCTING AND EQUIPPING THE RALEIGH AND EASTERN NORTH CAROLINA RAILROAD BETWEEN RA- LEIGH AND WASHINGTON, N. C, ONE HUN- DRED MILES MAIN LINE AND TEN MILES SIDE-TRACK AND TERMINAL FACILITIES: Grading main line, f 2,500 per mile f 250,000 60-lb. steel rails, 94 1-4 tons per mile, 9,400 tons, at |30 per ton 282,000 Ties, 2,640 per mile, at 25 cents, 264,000, size 7 by 8 by 9 66,000 Angle-bars, 317 per mile, 33-ft. rail, 31,700 pair, at 60 cents per pair 19,020 32 kegs track spikes per mile, 3,200 kegs, at $3.70 per keg 11,840 7 kegs bolts and nuts per mile, 700 kegs, at $5.80 per keg 4,060 1,268 washers per mile, 126,800, at one-half cent each 634 Labor and tools, per mile, laying track, $250 . . . 25,000 Labor, surfacing, per mile, $175 17,500 10 miles of sidings, including grading, second- hand 50-1 b. released steel rails, switch fix- tures, switch and grade ties, and labor, $1 per running foot, 5,280 lineal feet 52,800 Bridging Neuse River 10,000 Trestle and draw-bridge, Washington, N. C. ... 35,000 Raleigh right-of-way and ground, $30,000, freight depot $4,000, passenger depot $2,500 . 36,500 Wilson right-of-way $10,000, freight depot $4,- 000, passenger depot $2,500 16,500 Greenville right-of-way $5,000, combined depot $4,000 9,000 10 Washington right-of-way $10,000, combined de- pot $4,000 $14,000 5 intermediate stations, $500 each 2,500 3 passenger engines, $4,000 each, second-hand, 4 new freight engines, $8,000 each 44,000 50 new flats, $400 each, 50 new box-cars, $600 each 50,000 6 coaches, $3,000 each, 3 new baggage cars, $2,- 000 24,000 3 combination baggage and passenger coaches, $2,000 each 6,000 Estimating for current expenses during con- struction of line for one year, engineer corps, superintending, etc 50,000 Machine and car-shops, tools and power, at Ra- leigh 50,000 Total 1,076,354 In submitting the above estimate, actual prices and cost are given where possible to obtain same, such as rail, ties, angle-bars, spikes, cars, engines, etc. It would not be necessary to at first build or pur- chase the 100 cars. They could be gotten as necessity requires. Would not be necessary to expend $50,000 at once for shops, tools, etc. ; could be erected and purchased as ne- cessity requires. We have allowed considerable amount for right-of-way into the four cities, which may be re- duced, except at Raleigh. It is also possible to get along with less than ten miles of side-track for the pres- ent. It is, however, essential to be in position to put the required amount of bonds and preferred stock on the market, if found necessary in the construction of this property. The bonds will not be issued or sold except 11 as the road progresses, and only to the amount actually required. Dr. Emmons remarks that the swamp soils of North Carolina show a greater capacity for endurance than the prairie soils of Illinois, notwithstanding the annual crops are less per acre; and on the score of location, he is unable to see that Illinois soils have the preference. Mr. Edward Kuftin, of Virginia, who studied Eastern North Carolina section with care, expressed high appre- ciation of the tide-water region for the cultivation of grasses, and states there is no better country east of the Rocky Mountains. ANNUAL FISH PRODUCTION ON THE ALBEMARLE SOUND. Herring 150. 000, 000 Shad 5,500,000 Perch 300, 000 Sturgeon __ 10,000 Striped Bass 50, 000 pounds. County. Popula- | Property tion. Listed. Debt. Square Miles. Wake Johnston . . . . Franklin . 54,626 ; $12,000,000 32.250 4.000,000 25,116 i 3,000.000 23,596 ; 4,000.000 25.473 I 3.900.000 12,038 ; 1,500.000 26,591 3,900,000 30,889 i 3.600.000 26,404 3,300,000 S 17, 000 14.666 900 670 420 Wilson .- 12,000 ' 350 Nash Greene Edgecombe . >_ . Pitt Beaufort 520 3,000 ; 300 12. 000 500 ! 820 19,000 , 720 256,983 ; 39.200.000 1 ........ '. 5800 Cities. Raleigh Wilson . . . . . 13,643 4,700,000 3, 535 2, 000, 000 Not 375,000 | given. 1 16.(100 .In Greenville Washington ... 2,565 815.000 1 4,842 1 1,200.000 15. Oi County tax about 23 cents, and poll tax 40 per SI 00. Kb: £:> I ^^•■^ :'/;:*■.■