The Caucasian. (Clinton, N.C.) 188?-1913, 1897-07-15
- .rcs,vssns pnov,rs o. sHsia owS

70 RIc.lv8Tng Pn0rtfe o. fneto owS
Ifshe miIless we're 20 combine TO hx the
tolls Of their mills without regulation
by the public, is would place the bread
Of the people q their mercy. Bus shss
combinatioa 10 absolutely nothing to
TIE power (if they possessed I'D OF cor
posstions 70 levy at will their own rate
Of toll upon every pound OF fre,4oe and
ever possepSer that 10 moved By steam
IL this land.
TIE very act Of Assembly 60 which
you owe yo1r existence expressly con-
fers upoa you the power 70 Ok rates Tor
passenger and freights and Tor teie-
8raph and telephone messages.
psLRss YcuR coMNissIox % ScI LIT.
YOU have the power and you were Gre
sfed 20 exercise t. The public demand
for Q reduction Of railroad charges
must have been strong indeed which,
In spite Of the we'll known influence Of
those corporations and their long ex-
perience In defeating legislation, could
force through the act which created
your Commission. ls Vas not estab-
iisbed TO compliment three gentlemen
With once, nor to add to our taxatioa
an expense Of some $4,000 annually;
but the Commission MAS created be-
cause the public MAS overwhelmingly
convinced far bsck-certainly prior 20
ls9l-that the railroad charges were
excessive and oppressive, and that re-
lief could not be had from the volnn-
tary reduction Of them BY those receive
ing railroad incomes, but must
BE oRpxRKp ny rRR PEOPLE.
in right Of their sovereign power to fix
the rates Of common carriers.
The only restriction upon your power
10 DIX rates ever suggested by any court,
10 that the rates should not be too Low
to afford . reasonable interest upon the
actual value Of the property. This val
upon all the Railroads in this state.
The railroads have contended that ev-
en- this 10 too high.
There being about 3.a5O miles Of rail-
road in this State this is an average
OF about 81 500 per mile. III this sum
Ia cash would replace, ~ IL probable,
the railroads Of the state. then il il
sufficiently high valuation. You have
said, after careful investi CATION, I pre-
sumo, that it 10 the actual valuation
Of the railroads including their fran
chises. (Acts 1895, Oh ll9.)
The question then 10 what 10 q reas-
enable interest upon the investment
Of sc. 100000. Upon so large an in.
vestment as that 3 per cent 10 Q good
interest, for government bonds 1T that
figure are at par. Or take the North
Carolina value Of money; our State 4
per cent bOnds are 1t par and even
Raleigh per cent bonds lately sold
ut 80 above par. Even in small loans
to individuals bearing per cent MT
more than per cent net, after Lay ing
taxes, Is received BY those living in
towns. The Supreme Court of the
United States in the late case OF Liy-
ingst0n We. Sanford, l64 l.. s. 57S, says
that rates high enough to earn 1 per
cent net will not be disturbed by the
courts, and ia Dow vs.. Beidelmsn, l25
U. s. $50, the same court says that
RATES HIGH ENOUGH To EARN Z, PER
CENT.
Are sufficient when the present holders
have bought the railroad, or its stock,
below par, - is the case with all the
large railroad systems in this State.
You have fixed the railroad valuation
at $26 ,OOO, 600. but the bonds and stocks
OF the railroads in this State amount
to $94, 100000. 1t is clear therefore
that rates high enough to pay interest
or dividends upon the latter sum is
grossly in excess of what is lust to
the public. Freight and travel are
thus being taxed to pay dividends and
interest on nearly
$4,000, 900 OF FICTITIOUS CAPITAL.
There are three different methods.
each Of which will demonstrate that
the present rates are grossly excessive,
!. Take the great railroad systems |
OF the state which embrace nearly |
Al of the total valuation. Your re.
port for 1896 shows as follows:
Valued Net earnings Miles
4. Z. Line $6.652.000 e963, 200 6s5
r. r.
. System s,lo4, 900 1885, 900 1904 /
6eeboard L. r.
System 5,265 600 e67 600 sls
go. 22l 600 $2,975COO
That is to say, property invested Il
$2O,OOO,OOO, (but costing present own
ers far less) is allowed rates high