The news & observer., 1897-02-06
Will Be Reported Back to Sen
ate Without Prejudice.
IMPORTANT AMENDMENT
RAILROAD MEN HEARD ON THE
MEASURE YESTERDAY.
SAID IT WOULD BANKRUPT THEM
The Railroad Commissioners Testify
That They Think the Rates Are as
Low Now as the Roads
Can Stand.

Tna++hs rates of passenger fare in
4his State shall be z 1-2 cents per
r,;,a for first class and 2 cents per
mile for second class as the standard
messenger tariff and shall apply on
such lines as are now o. may here
after be SO classified by the State
Railroad Commission. All otherfares
shall be relatively in such proportion
as are now or may be made to the
car, aissjor, Amendment to Senator
Clark's Railroad bill.
The public hearing before the Senate
committee on Railroads upon Senator
Clark's bill providing for a reduction OF
telegraph, telephone and railway rates
was continued in the office OF the hal-
road Commission yesterday AFTERNOON.
There was quite number of interested
parties present, and several speeches
were made by railroad men ana atlof
news. as well as by two members Oh the
Commissioned in opposition TO the plh'
AT the close of the hearing, which mas
lasted for two days, the committee went
into executive session, and after nan an
hours eaeliberation decided to report the
bill back to the Senate without preJudlce,
without the above amendment, whlch
was offered by Senator George Butter,
chairmarr of the committee.
Mai. i w. Wilson, chairman of the
Railroad Commission. was the nrst
speaker Yesterday. He appeared before
the committee at its special request, as
did also Commissioner $. Otho Wilson,
10 give such information as they might
deem of Importance in consideration OF
the bill under discussion. Maj. Wilson
rapidly reviewed the railroad situation
in the STATE. condition of the roads, sal
arv of officers and compared the rates
charged in this State with those main
tanned in other States and other countries.
He advised the committee that rates
were now as low in this State as the
roads could bear, and to further reduce
them would mean bankruptcy for all the
lines doing business here-except with
the nossible exception of the Seaboard,
Southern and Atlantic Coast Line.
Mai. Wilsof was followed by his col
league. Commissioner ). Otho wilson,
who pursued very much the same line OF
argument. He thought that the rate
proposed in the bill, ? and ~ cents per
mile. was too= low. The three trunk,
Southern. SeaHoard and Atlantic Coast
Line. he believed, might keep up under
the rate, but Ae was sure the shorter
roads could not do SO, and the passage OF
the Clark bill would throw them into the
hands of receivers.
If the roads tried to keep up their
present dividends the accommodations
could not be so good as at present or the
roads would have to go into liquidation.
Mr.. Wilson. however, believed that re-
duction Of rates would increase travel.
The rates. he thought, We're too high,
but how much he=could not say. Ihat
they were too high. was evidenced by the
fact that free passes We're scattered all
over the country ard they were held by
those who did the most travelling. LII
the Legislature would stop this free pass
business the earnings of the roads would
be increased and the roads could then
stand a very material reduction IN rates.
The present standard passenger rates
he said, were 314 for =first-cass and "a
for second class. On scme OF the smaller
roads this rate was allowed to be increas-
ed III of a cent q mile.
Mr. Wilson denounced strongly the
free press system, and said 1t was the
cnrse of the day. Let railroad bill come
nm before the Legislature. and you VIII
find on the hotel register men from all
over the country, who come here as lob
byists on free passes.
Col. w. A Henderson, of Washington,
Assistant General Counsel of the South
ern Railway, next addressed the COM
mitfee to the effect that he was sure the
REDUCTION would greatly inJure
tba road. He felt sure the
committee would do justice in this mat
for both to the railroads and the people.
Tonching the question of free passes,
col Henderson said he favored its ex-
tension. rather than its curtailment. The
trouble with the free pass business, he
contended. was that they were given to
the wrong people.
II always helps a railroad to give low
rates-half- Observation-Disclosures 1t can be
done: railroads always give rates as low
as possible They do all they can to get
crowds to fairs, conventions, pubic meet
mos and the like 1t would be good
thing if a bill could be passed to prevent
the giving of passes, but there are many
cases in which it is right to give a pass.
As to the question whether or not this
bin. which would deplete the revenues OF
the Southern Railway in this State some
5000 900, ought to be passed or not, he
said this road was the property IN one re-
spect Of the people or North Carolina.
They ought to treat it fairly. 1t has
paid only j per cent. dividend in 212 years.
is it In Condition TO have $4,000 annu,
ally taken out of its revenues? All i asks
is a fair and reasonable ipeome-such an
income as viii pay it's operating expenses
and pay fair return on the investment.
RaiIroading is am honorable business,
as honorable MS amy other, and it ought to
be so treated by the law making power
Answering the objection that salaries
were too high, he said good men could not
be procured for smaller salary. But
suppose you cut down salaries, say, to an
average Of $4,000, that would not amount
to a drop in the bucket Even If the gen
eral officers work for nothing, it would
make no appreciable difference
Taxation, Col. Henderson argued, was