The news & observer., 1897-04-08
IF THEY DARE, THEN WE SHALL
LDARN MANY THINGS.


Commission act of 1891, repealed that
limitation with the intention OF giving
the Railroad Commission the dis
cretion, if they thought proper,
to make the net Irofts even less
in these hard times, when the wealth pro-
ducers needed some margin to make q
bare living. Notwithstanding the
enhancing value OF money and
steadily falling prices of farm products,
the rates have been reduced very little.
When the Legislature met, long suf-
fering people called upon the Legislature
to relieve them from the exorbitant rates
imposed on them. By a majority vote Of
one in each house, the corporations de-
feated the reduction rates, but they would
not have done so but for the fact (as we
mentioned at the time), that Commission
ers J.W.Wilson and S. Otho Wilson both
went before the committees and insisted
that for the Legislature to reduce rates
would be a reflection on them. Such men
as Senators Smathers and Scales, and
other members of both houses, stated
that they were in favor of a reasonable
reduction, but that in the hurry of the
session could not investigate the matter
and preferred to leave it to the Railroad
Commission.
We noted Tuesday that Governor Rus
sell had requested the Railroad Commits
sion to reduce rates to cents per mile
on railroads having 5000 per mile or
more gross receipts, and Is cents for tel
egrams ON lines 100 miles or more in
length. This mode of adjusting rates ac-
cording to gross receipts has been sus-
tanned by the United States Supreme
Court.
The corporations, we learn, are trying
to bluff by saying that they will take it
to the courts to determine if it is a rea-
sonable rate. II they would only dare to
do so! The United States Supreme Court
have held that in passing upon the rea-
sonableness OF a rate the jury must have
before them the data as to items of dis
bursements TO see whether salaries are
unreasonable or not, and whether un-
warranted expenditures have been made.
If the Commission reduces the rates.
and the Southern Railway will take it
to a jury to say whether the reduction
is reasonable or not, we would learn
many things. For instance we would
learn
/. The enormous salaries paid the va
rious officials Of the Pierpont Morgan
system. They took care to defeat the
resolution of inquiry on that subject in
troduced into the Legislature by Mr..
Hauser
=. We would get at the legerdemain by
which they report "a per cent of the
gross earnings of the North Carolina
Railroad used for operating expenses,
when the operating expenses on such
poor railroads as the Ducktown and other
branches are reported by them less than
60 per cent.
3. We would learn whether the North
Carolina Railroad was credited with its
fair pro rata of earnings. or if they are
"doctored."
4. We would learn why the proportion
of salaries of general officers paid by
the North Carolina Railroad was S25,-
600 in 1894 double that of the Governor
and all the other executive officers of
the State government combined), and
why, after public attention was called
to the matter, the North Carolina Rail-
roads share of general officers salaries
unaccountaby shrunk to $1,000 in 1896,
and the generals made no clamor
5. We would learn the number and
cost of private palace cars, and secreta-
ries and servants, and the jury would say
whether they were such necessary ex-
penses' that the public should be taxed
high fares and freights to furnish them.
6. We would learn about that $780,
900 Pierpont Morgan subscribed on be-
half of the Southern to win the last cam
paign for gold and low prices, and we
would have jury to say whether that
item should be allowed in calculating the
necessity OF high rates.
Z. We would learn why the public
should be taxed with the issue of so
many free passes that, though the public
pay 81 cents per mile. the Southern re-
ports, counting all passengers, only
2 Is cents per mile per head actually
received.
We will learn these things and many
other things equally interesting iff the
Southern Railway will only contest the
reasonableness Of lower fares before a
jury.
There was only a majority of one vote
in each house Of the Legislature against
reduction. Will there be a majority
Of one vote" for or against the people in
the Railroad Commission? The public
are looking on with open eyes, and they