Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-09-14
RAILROAD RATE WAR
President spencef.Denies Any Intention to
Crush tbs Seaboard Line.
Action Of the North Carolina Com.
mtssioncrs - The dseorgia Injunc-
tiOn Expected to DC Dissolved.

way Company has taken steps to deny and
set at rest the oft-repeated report which
has gained currency in many parts Of the
country that the Southern was anxious to
crush the Seaboard Air Line out of exist
ence.
In letter to a personal friend in this
city from one who is closely connected
with Southern Railway Companys affairs
in New York. Mr.. Spencer authorized the
statement to be made that the Southern
has never attempted to squeeze or in any
way injure the Seaboard Air Line, with the
view of purchasing it or for any other pur-
pose"
Efforts to have settled the present disas-
trous war OF rates between the Seaboard
and the Southern. the Atlantic Coast Line.
Norfoik and Western and some smaller
lines are being made by those who are
financially interested, but with what pros
poets or success cannot as yet be fore
Swallowed.
1t seems quite certain from the manner in
winch the railroad commissions of various
southern states are taking hold Of the mat
ter that II the companies themselves CAN
not agree upon q schedule that Will secure
reasonable returns to those who have in
vested money In the securities of the roads
involved, the state commissions will re-
qulre mat the roads shall not get the same
rare for hauling freight and passengers
within state lines as they have heretofore
charged.
Long ana Short Haul Question.
The railroad commission Of North Caro-
lima, which took up the hearing of alleged
discrimination in these matters only on
Saturday last, issued before adjourning an
order stating that 1T appeared that the 14th
section Of the interstate commerce act,
known as the long and short haul clause,
Is violated by ct least one of the corpora
tons interested. This commission has no
Jurisdiction to remedy this, but for each
oftense reported will see that it Is properly
brought to the attention of the interstate
commerce commission and ask for speedy
action by it. 1t is ordered ttat all railroads
Going business within North Carolina who
Fave or may put in force cut rates to and
from points in this state to and from
points outside. shall SO arrange their
local freight tariffs that the same relative
reduction Shall be given to local business
as has been or may hereafter be given to
through business.
1T is also ordered that the standard pas
senger rates shall be on and after the oath
day of September. 1896. as follows: First
class, 3 cents mile: second class, 212 cents
a mile and that all percentages hereafter
granted to certain small corporations shall
he readjusted by them in like proportion 20
conform to this order it being reduction
on passenger rates of one-fourth cent per
mile for each class"
he punt WIS liiiSt1 lndt the Id" Al
lowed ten days in which to take exceptions
to the order. This was sustained, and the
commission adjourned until September %
Legal Talent at the Hearing.
The Southern Railway Company was rep
resented at the hearing by Vice Presidents
A. B. Andrews and w. H. Baldwin, jr.,
Colonel Henderson,, assistant general coun-
sci, and Mr.. Fairfax Harrison, solicitor, all
of Washington, D. c.. Mr.. F. H. Busbee of
Raleigh. state counsel; Messrs. J. II. Drake
of Richmond and j. b. Munson of Raleigh,
division freight agents; the Seaboard by
Judge James c. McRae and Capt. w. H.
Day. counsel, Of Raleigh; Mr.. William
Moncure, superintendent of the second di-
vision. and Capt William Smith Of Ra-
leigh; the Cape Fear and Yadkin Valley.
which is in the hands of Gen. John Gill of
Baltimore as receiver. by Mr.. George NJ
Rose of Fayetteville COUNSEL Mr.. ]. w.
Fry of Greensboro. general manager, and
Mr.. w. E. Kyle of Fayetteville, general
freight agent.
1t is the impression in well-informed rail-
way circles that Judge Speer will reach
the same conclusion as did Judge Simon
ton in the matter Of his injunction against
the railroads, and that after hearing argu-
ment thereon, when it comes up for hear
ing on Monday next, will dissolve it.
1t is stated that the stockholders of the
Seaboard Air Line have pooled their stock
with President Hoffman for one year, and
that during that time it cannot be sold
except with the unanimous consent of the
stockholders. There is only about 81, 400. 900
of it which could be easily gotten hold of
ordinarily by persons who might wish to
control the property, but now this cannot
be done. President Hoffman is expected
to be in New York tomorrow to confer
with people who are interested in the prop
erty.
To Fight the Pennsylvania.
1t is reported that the Seaboard Air Line
vania to haul for the former through car
between New York and various Southern
points, and has asked that the same privi-
leges be granted to the first named as are
given to the Southern Railway Company.
It is further reported that 'he Pennsyl-
vania has refused to do either and that
in consequence the Seahoard Is preparing
to fight the Pennsylvania.
General Manager St. John Of the Sea-
board is quoted as saying that reduced
rates have come to stay. whether there Is
harmony or not. Rates, he says, have been
too high, and that the 80 per cent reduc-
ton establishes about right scale needed
by the south for its proper development.
That is why, it is said. he intends to urge
the state railroad commission to compel
the application of through rates to all local
points.
President Hoffman Talks.
President Hoffman of the Seaboard re-
turned to Baltimore Saturday evening from
the south. In reference to the injunction
issued by Judge Speer. Mr.. Hoffman was
quoted as saying: Il have not yet carefully
read the order. of the court, and until do
do not wish to talk on that subject The
matter is in the hands Of the legal depart
ment Of the company, and it will most like
ly be several days before a line of action is
determined upon. The Injunction will be
obeyed by the Seaboard Air Line but 1t is
not impossible that notifications will be
asked as was done in the Injunction order
issued by Judge Simonton, and the order
will be contested in court.
1.-The cut rates have" continued Mr.. Hoff-
man, undoubtedly stimulated shipments,
and the Seaboard Air Line has ali it can
handle. The rate war has not reduced our
revenue, as our enemies profess to believe
but, on the contrary, has increased It, The
statement of business for the month of
July, when the rate war was inaugurated,
compares as follows: 1898, gross earnings
$219, 45602; operating expenses, 1882, $50 95;
net earnings, $36,S69.07. 1896, gross earn
ings, 1914. 724.35; operating expenses, $780,
23627 net earnings, $4S, 42S.OS. The state
ment for August has not yet been fully
made up, but 1 am told that the showing
will be even better. than in July.
1.-The Seaboard Air Line system for the
year ended June 30, 1886, had a surplus of
S15S, O7652 after paying all charges and
losses of every nature, and paying a diyi-
dend upon the common stock of the Dur
ham and Northern railway. and preferred
road"