The news & observer., 1897-01-30
FACTS ARE NEEDED BEFORE AC-
TION.


Mr.. Hauser's resolution to enquire into
the salaries of all railroad officials who
receive more than $4,000 per annum was
antagonized i'm the House yesterday on
the ground THAT the State has no right
to make such inquiries of private corpor-
ations. The defect upon this line of ar
gument is the assumption that railroads
are private corporations. They are pub
lie corporations, owing their very exist
ence to the breath of life they receive
from the Legislature.
While the State has the unquestioned
right to demand and elicit such informa-
tion it ought not to exercise it except
for some good and wise purpose, and
of any individuals. 1t cam be justified only
on the ground of some public good. When
that appears, the Legislature not only
has the right to secure such information,
but it is its duty to secure it.
The reason for the consideration of the
salaries paid railroad officials at this
time lies In the evidence given recently
by railroads before the Railroad Com
mission. Last summer or fail, the Com
mission issued an order upon the rail-
roads to show cause why the passenger
rates should not be reduced to and
21a cents. They claimed that they could
not make the reduction, pay the necessa-
ny operating expenses, and earn dGyi-
dend for their stockholders at the lower
rate tentatively fixed by the Railroad
Commission. We have carefully read the
answers made by the representatives of
the Coast Line, Seaboard and Southern
systems. They all agree that they can
not afford the proposed reduction, but no
information as TO fancy salaries, num-
Der and cost of private cars, or other ex-
penses was elected. In the absence of
such information the evidence consisted
merely of ex parte statements.
The Commission, however accepted,
fIu
ed the order making the reduction, Chair
man Wilson and Commissioner s. Otho
Wilson sitting as a court in the absence
of Mr. Beddingfield.. If the reports CIV
EN- by the railroads were true; if in the
necessary expenses" are not included
salaries out of all proportion to services
l.. fo1N5,
if those who pay are not charged with
the transportation of q horde of favor
ties who ride free-then tie Commission
did right not to reduce the rates, but
they had no information on these points
before them.
No Commission and no Legislature
should exercise arbitrary power to make
such reductions in railroad rates as will
prevent the earning of a six per cent di-
vidend after paying necessary operating
expenses What are necessary operat-
ing expenses g The courts have held
chat the law-making power has the right
TO enquire into these expenses for the pur-
pose of determining how to regulate
rates for freight and passengers. There
is not an item of expense incurred by
the railroads that is not paid by those
who travel and receive or send freight
on them. When the people apply 10 the
Legislature, as the presence of several
bills in both houses 10 reduce rates shows
they are doing, to reduce these rates, Ut
would be unwise and perhaps unjust to
make an arbitrary reduction without as
certaining the expenses of the roads. If
the expenses are all proper and reasona-
BILE, and reductions would work hard
ships, they ought not to be made. But
If fancy salaries are paid, if horde OF
lobbyists are retained, IL a host OF favor
ties are hauled free, If rebates are given
to certain shippers, il discrimination il
shown that does not add to the Income OF
the company-if these things appear up
on examination, Then blley ought be cut
eff and rates clFaapened to the people.
There is no way Of ascerbakning wfledih-
er the bills providing for reduction OF
freight and passenger rates ought to pass
without such information as MIR. Hau-
ser,s resolution, which passed the House
seeks to eltcit 1t would be well to ex-
tend the scope of inquiry to all expenses
shat are deemed extravasant, and 10 re-