The Caucasian. (Clinton, N.C.) 188?-1913, 1897-04-22

and that the government itself had
then taken . second lien. These two
liens amount to SO 600 . mile, and
the court below referred to il ~ ap
irJ ostice to fx rates that the road
could not earn enough 70 pay fixed
charges.
I'VE insist, your Hono,s, that
the right OF the patron to reasonA-
bic rates canuot be ignored, and
II the I aited States Governmsn has
taken . second mortgage upon prop
evty for moro tnan il ID worth the
United States Government canuo,
pl-cs upon the patrons Of that road
the burdens OF its mistake.
According to the calcuf alton in
the decision rendered below, the
present rates ufon local I eights
yield al leone to that ROAD pro-
portionate iacome-suffi .ient to pay
the interest upon so, 600 q mile,
and somethlng besides, to the stock
holders. According to the calcula-
ZION made by the court uuder the
ueu rates, the income from the To-
cal freight TIRE e., when compared
wi b the general income on the
theory that they were all reduced
alike, gives an income of 8 per
cent upon the value Of $4,000 per
mile.
1T not only yields to the road an
income above operating expenses,
bat, according to the calculation
which associate counsel argue to
be unfair and in the interes,
Vt the road, on that calcula-
ton this law, against which the
com plainants complain, actually
vi. Ids = pr.fis Of 3 per cent upon ,h-
actual value Of that road at $50 900
per mile.
Another point. Is there a diff
ference between the rights of q
bondholder, and the rights of q
stockholderf Will the court say
that II there were no bonds a GER
tain sum would be reasonable as
compensation to the owners of the
road, aid yet because the bonds
have been issued the sum is not suf.
fcient compensation Has the bond
holder ligh,s superior to the stock
holderf l do not mean in a contest
between stockholder and bouduold
or, but l mean a contest between
patron and stockholder, or patron
and bondholder.
Suppose the road fails to pay in.
terest, suppose there is difficulty
what Is the remedy of the bondhold.
ersf Simply to 60 into court and
to put the road up at auction and to
bid in the road If they desire to be-
come the owners. That is the only
remedy. 1t must be scld to some
one else and the money applied 20
them, or they may take 1t them
selves.
Can 1t be said that the right of
the boudholder before he took pos
session is greater than the right of
the ondholder after he takes pos
session and be comes q stockholdel 7
''lt seems to me that any calcula-
ton which attempts to give to
the road the advantage of suf
cient income 10 pay sll its indeb' ed
ness or interest upon it, and then
something to the ssockholder be
sides, is simply an encouragement
to those who build railroads to make
the stock and bonds sufficient to
cover all possible incomes.
II might state here that another
reason why the court could not pro-
tect the s,ockholder or bondholder
in his demand fer an income sufi
cent to cover IL fated capitalization
can be found in the fact that the
/ S ates are attempting to protect
themselves from over capitalization.
"If you will look in our own State
you will ind that We have q consti-
tutional provision, and it reads this
way: No railroad corporation shall
issue any stocks or bonds except for
money, labor or property actually
received and applied to the purposes
tor which said corporation was Gre
ated, and all stock dividends and
other fictitious increase of the capi-
tai stock or Indebtedness of any such
corporation shall be void
"No one will questi on the wisdom
of the legislature and Of the people
in trying to protect themselves fr. m
fictitious capitalization, and yet it
the court pleases, if the courts of
this country will protect the owne r.
| of railroads in their demands for in.
come upon fictitious stock, the States
will be powerless to prevent fictitious
capitaliz 4tion.
If the decisions of the courts ar
such as to invite people to violate
the constil utions of the States, ther
those constitutions will be of little
force.
If the court goes beyond tn,
rules laid down in preceding cases
If the Court assumes to determin,
what is reasonable, and upon basis
tho income must be calculated, al
We insist that these corporation
brought into operation and * stenc,
for public good, sh, be treated lik'
all other people; shall be made t
take their chances with other occu
pations, so that they will be inter
ested in these things which advance
the general welfare.
"And l might say, in conclusion
my time, or the time I intended t
occupy, has already EXPIRED.
might call the attention of the cour
to this fact, and think it is prope
for the court to consider il: Il
laying down q new prib ciple, in es
tablishlng something which will b.
followed In the future, the court ha
the right to consider the feet OF tn
rule upon the public welfare.
"In a government like this. thos
systems and policies are best wh,c
tie all the people together in such
way that what is ipjary to one Is Ia
, 1ry to all in order that all alik
may be interested in remedying any
, thing that is wrong.
d ''If there be some who can e1