The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-07-13


supposed that these CT poratiols in Their
local IatCs have been more co1s'drra.e
of a people who have been so fGrkCar-
ing and patient under corporation i'm
position as those of this State have
so long been. But my own investiga-
ton has been thorough and has satisfied
me that the railroad rates in this State,
everything considered, are the highest
ON the continent. / learn that the answer
filed by the Seaboard Air Line, when it
was cOntending against an injunction
brought by rival line) for the privilege
Of reducing their rates, set out t1is
fact. But, however, it may be as to the
answer, | am confident as to the fact
that our rates are the highest. Wherever
the rates elsewhere approximate ours it
will be found that they are in those
States where the railroads have almost
without disguise taken possession of the
| government.
1t is true that some States have more
people than this, but they have more
railroads, too. Only twelve States have
as many people per mile of railroad as
North Carolina.
The taxes paid by the railroads here
are adm tied by that one of the officials
of the lines in this State who is per-
10 be the lowest paid by railroads in airy
of the State. The property tax paid
by them here is not supplemented by any
tax on gross earnings, or stocks, as is
usual elsewhere.
| Epow that there is always the threat
that we will drive capital from the State.
That was threatened if the 6 per cent
law was passed, but to-day North Caro-
lima As are at par and Raleigh 5 per
cent are 50 above par. What we need
is to keep our own capital in the State
and with S13,00O,000 saved every six
years, as above shown could be done,
we can build railroads and get us q good
school system upon our own money. For
egn capital will not come here because
we are humbly respectful and submissive
to the owners of it, but because 4 per
cent net above taxes and all other
charges is is more than can be had by
investing in United States 3 per cents.
In conversation recently with a direc-
tor on one of these lines, though North
Carolinian himself, he said: THE truth
is this is getting to be an old country.
Our laborers must come down to Euro
pean wages and our farmers must live
cheaper and be content with European
small profits. They cannot help them
selves" That is the way in which the
bank owners of our railroads, and all
within their influence look-with perfect
complacency. too, upon the situation. But
if it is true that our farmers must surely
and steadily be turned into peasantry
!, and tenant holders, and our laborers
into semi-serfs, the net re-
duction should be all round
top as. well as bottom-and
h. IL
vested in our three systems should take
= per cent net profits-for = per cent
. per year is the bank rate in London and
Paris. But / take it the railroad own
ers would now be perfectly satisfied with
the per cent net which the Vanderbilt
roads in New York pay. They would
not grumble at that. What they strenu-
ously object to is getting 4 per cent only
on their investment. They would be
satisfied with per cent on the $4,000
600, but they want you to go on and
allow them per cent on something
which you and they both say does not
exist, i. G., their property in these roads
above $26,000000. There is the sore
point. They want dividends on that
$26000,000, which they say is even more
than they have invested here, and which
your Commission says is every cent
they have here. and then they wish to
tax the people fares and freight high
enough to pay per cent on, on, on up
to $94000,000, i. @. on $70,000000, for
which they have not paid cent nor
struck a lick of work, but which is
evidenced simply by so many pieces of
paper on which they have stamped their
decree that the people of North Caro-
lima are mortgaged to pay them interest,
and it is their decree also that unborn
genera tons of North Carolinians must
come into the world to pay them interest
thereon. One generation does not salts
fy their greed, but their long fingers
must reach down into the pockets of
those who are to come after us. We
neither gave nor authorized that mort
gage and we will not be bound by it.
There is Il reason, personal to your
!, selves, permit me to say, with the great
est respect, why you ought to grant a
reduction. In the last Legislature bills
to reduce fares and freights were de-
!, featcd by only one majority in each
house, and two of your Commission went
before the committees against the bills.
!, 1t is reasonable to suppose on that mar
row margin that but for your opposition
those bills would have passed. 1t was
understood that you opposed them be-
cause you thought that it would be a
reflection on you for the Legislature
itself to make the reduction whic, you
had the power to make. 1t is certain
that members who voted against these
bills have attempted to justify their
course to their constituents at home by
the allegation that they expected fully
that you would yourselves make the re-
duction.
If $26,000,O00 will replace the property
that is the value of the plant, and an
enormous addition for the valuation of
franchise can only be made on the
basis that the excessive rates and
profits make the property worth that
much more than it could be built for.
think the valuation should be placed at
whatever the plant is really and truly
worth, and that fares and freights should
be reduced, taking the previous years
figures as Il basis so that 4 per cent on