The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-07-13
MAKING IS PER CENT NET
OVER 81. 10000 CARRIED OUT OF
THE STATE YEARLY.
THE FARES SHOULD Be 2 CENTS
The Freight Rates, Charged in North Carolina
Are Also Too High and Railroad
Taxes Are Much Too Low.

To the Honorable, the Gentlemen of the
Railroad Commission:
In compliance with your request l res
pectfully submit some of the reasons
which occur TO me why you should ac-
cede to the public demand. already grant
ed in so many States, for substantial
reduction Of passenger and freight rates.
/ wish that your invitation had been ex-
tended TO some one far ADLER than L to
express the justice of that demand and
with power to persuade you TO grant 1t.
At no time in the last six years have
numerous. able and skilful counsel been
lacking TO represent TO You the OPPOSE
ton TO any concession 10 the public wish
es. | wish therefore that the peoples
side OF the question could now be pre-
scented by some more potent hand than
mine.
The right of the public either through
a legislative act or by means of Com
mission, TO regulate and fix the rates of
all common carriers, and especially of
railroads. has always been recognized as
law. Repeated decisions of the United
States Supreme court have of late years
Te-affrmed this law and so conclusiyely
and clearly as to be beyond chance OF
recall The somersault OF "a judge of that
court, which reversed the precedents of
100 years in order that an income tax
of $50. 100000 might be transferred
from the rich syndicates, corporations
and millionaires 10 the backs of the toll
ing producers sent a thrill of indigna-
1ion through the country whose last
vibration has not yet been felt But
decision which should attempt to change
the immemorial law and put in the hands
OF the railroad corporations the unres-
fricted power 10 fix the tolls we should
pay on the internal commerce of the
country would place the value of every
mans land, of every mans cotton. or
other produce, at the mercy of these cor
porations To turn over the fixing the
tariff upon our foreign commerce, abso-
lutely and without disguise, 10 the syn
dicates and trusts who grow rich upon
ii, is not circumstance to the effect on
the public welfare and the public mind
which would follow the turning over
this tariff on our internal commerce
(which is many hundred times greater
than that which comes from foreign
countries through our custom houses to
be fixed at their will, by those who are
to receive the profits of their own action.
If the millers We're TO combine to fix
the tolls of their mills without regulation
by the public it would place the bread Of
the people at their mercy. But that
combination is absolutely nothing to the
power if they possessed it, of corpora
tons to levy at will their own rate of
toll upon every pound of freight and ev-
cry passenger that is moved by steam in
this land.
The very act of assembly to which you
owe your existence expressly conferS
upon you the power to fix rates for pas
sengers and freights and for telegraph
and telephone messages. Unless your
Commission is a nullity you have the
power and you were created to exercise
it. The public demand for reduction
of railroad charges must have been strong
indeed which in spite of the well known
influence of those corporations and their
long experience in defeating legislation
could force through the act which Great
ed your commission. 1t was not establish
ed to compliment three gentlemen with
office, nor to add to our taxation an
expense of some ST., 900, annually but the
Commission was created because the
public was overwhelmingly convinced
far back-certainly' prior to 1S91-that
the railroad charges were excessive and
oppressive and that relief could not be
had from the voluntary reduction of
them by those receiving railroad incomes,
but must be ordered by the people, in
right of their sovereign power to fix the
rates of common carriers.
The only restriction upon your power
4a aI hy nj
is that the rates should not be too low
to afford reasonable interest upon the
actual value of the property. This val
uation you have placed at $26,000,000,
upon all the railroads in this State. The
railroads have contended that even this
is too high.
There being about $3.50 miles of rail-
road in this State this is an average
of about $500 per mile. If this sum
in cash would replace, as is probable, the
railroads of the State, then it is suffi-
GENTLY high valuation. You have said,
after careful investigation, l presume,
that it is the actual valuation Of the
railroads, including their franchise. Acts
1895, chapter 119, section 10.
The question then is what is a reason
able interest upon the investment Of
S26,OOOOOO. Upon so large an invest
ment as that per cent is good inter-
est, for government bonds at that figure
are at par. Or take the North Caro-
lima value Of money; our State 4 per cent
bonds are at par and even Raleigh 5
per cent bonds lately sold at 50 above
par. Even in small loans to individuals
bearing 6 per cent not more than per
cent net after paying taxes, is received
by those living in towns. The Supreme
court Of the United States in the late
case of Livingston VS.. Sanford, 1874 U.
s. 578, say that rates high enough to
earn 4 per cent net will not be disturbed
by the courts, and in Dow VS.. Beidelman,
125 u. g. $50, the same court says that
rates high enough to earn ~ per cent
are sufficient when the present holders
have bought the railroad, or its stock,