The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-03-05
ARGUMENT NOT YET FINISHED.
Mr.. Conner Talks About Rates and
Other Railroad Matters.

Mr.. Conner Talks About Rates and
Other Railroad Matters.
Receiver Conner has returned from At
ianta, where he went to appear before the
railroad commission in regard to the
matter Of freight rates, which have been
put on such low basis that many OF the
roads have been unable TO earn reasonable
Front on the amount invested.
The argument has not been completed
yet ;" said Mr. Conner yesterday, land the
commission will appoint another day on
which TO continue the hearing. as several
other roads have arguments and statements
TO make upon the subject.
I'm presenting my argument took as
text clause from the report of the COM
mission in which they state rates should be
so proportional that road can earn a rea-
sonable and just profit on the actual amount
invested In the road and its equipments
This is the substance of the statement made
In their own report, and upon this point l
based my argument.
II then proceeded to show that the Cen
tral railroad had not been Overcapitalized {;
that Is, that the stock has not been watered,
which has not been done. When a railroad
is not overcapitalized it should be permitted
to earn reasonable profit on the invest
nent over and above what is necessary to
keep the property in good condition 30 that
the public can be given the service they
expect and demand.
This the Central railroad has not been
aoie 20 do during the past year on account
OF the low rates on various commodities
The road has been compelled TO contract
loans during past years In order to keep the
property up to its proper standard and pay
It's outstanding obligations. With the
present rates IL is practically impossible
Tor the road TO keep up its standard and
pay reasonable dividend on the actual
amount invested. Either the road or the
stockholders must suffer. During the last
year the Central has been unable to pay its
outstanding obligations, keep the road and
pay this reasonable dividend to the stock
holders. The first two had to be done, 30 the
stockholders had to suffer. These facts l
presented and on them based my arRu-
meat"
Mr.. Conner was asked about the Chatta-
nooga, Rome and Columbus railroad, for
which receiver has recently been Ap-
pointed by Judge Millner.
MIR. Lawton has said about all there is
70 say in regard TO that matter" replied
Mr.. Conner. A distinction must be made
between the Chattanooga, Rome and Column
bus railroad and the Chattanooga, Rome
and Columbus Railroad Company. The
company owns no railroad, having sold it
to the Savannah and Western, and the
creditors OF the company petitioned for a
receiver for the company and not for the
railroad. With that the Central has moth
ing to do. and is in no way affected by it"
How about the Montgomery and Eu-
faulag"
"Mr. Cunningham and l went to Mont.
gomery. where there was petition for the
appointment of a receiver for that road
pending before Judge Bruce. Arguments
were submitted by the attorneys for both
sides. but Judge Bruce deferred his decision,
asking that the arguments of both the at
torneys be handed in 10 writing. Thus the
case standsn