The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-07-14
CALAMITY HOWLERS GONE
THEY WENT AWAY IN PRIVATE PALACE
CARS.
And the Ignorant Man Yesterday Had His
Turn Before the Railroad Com
mission.

ne scene Sill leu before inc
Commission yesterday. The calamity
howlers" had had their say and gone
in palace cars, most of them, the rest on
free passes. In their place. however,
there was another specimen of the poor,
oppressed corporation.
This was the telegraph mantle West
ern Union. He was not pleading pow
erty though. but he was pleading ignOr-
ance at a terrible rate. He seemed to
know little or nothing of his own bust
ness. especially as to how much business
he was doing in North Carolina. At first
he claimed that he not only knew moth
ing on this point, but that it was inn
possible for him or anybody else to find
out anything.
Then" said Commissioner Ohio Will
son, wen make the best estimate we
can and tax you accordingly"
But" protested the telegraph man,
''the courts have decided that you can't
tax business originating in this State
and ending in another or vice versa.
We protest against your doing So
Mr.. Wilson reminded him that the
United States Supreme court. in Il re-
cent decision, had held that the Com
mission had that very power, and that
it certainly proposed this time to use
it, This being the situation of affairs
more time was asked in which to get
the desired information. The request
was granted and yesterday afternoon
at 6 O'Clock an affidavit was filed set
ting forth that the gross earnings from
the entire telegraph business of the
Western Union Company in North Caro-
lima amounted to S60,461: the cost Of
maintenance and operation. S46,321;
leaving net profit of only S14. 1873.
At the morning session of the Commits
sion Mr.. Robert Strong, attorney, had
presented an affidavit from Thomas Il.
Eckert, president of the company. set
ting forth that this company was organ
lied April /, 1851: that its capital stock
was now S97. 10000 with a bonded in
debtedness of $15,OOO,OOO. The total
value of the property in North Carolina
was put down at $190,S76. This includes
1920 miles of wire and 9,153 miles in
excess of one wire and the office furni-
ture and fixtures. poles and other prop
erty. The gross earnings from purely
local business THAT which begins and
ends in North Cardinal was estimated to
be So SCI; from this is to be taken the
cost of maintenance and operation, $780,,
361; leaving net profit on purely local
business every year of $4,000.
On this they are willing to pay tax,
for it does not include business arising in
North Carolina and ending in some
other State, or arising in some other
State and ending in North Carolina, or
business passing through the State. This
has never before been taxed. And if
the Commission accepts the estimate
filed yesterday evening there will not be
much of it taxed this time. 1t can hard
" be correct, as it increases the estimate
made on purely local business only about
81 900, when it is well known that North
Cardinals part of even the tolls on news
paper messages sent to and from this
State each year amounts to a great deal
more than that.
The Commission met yesterday in its
office at 10 o'clock. The first business
was the completion of the arguments as
to railroad taxation.
The first speaker was Mr. George M.
Rose, attorney for the Cape Fear and
Yadkin Valley. Mr.. Rose asked that a
reduction be made in the present valua-
ton of his road for taxation 1t was,
he pointed out, in the hands of a receiver
and not paying cent. He also request
ed that in view of these facts no reduc-
ton be made in the present freight and
passenger rates.
The Cape Fear and Yadkin Valley is
now valued at $1,000 mile. for taxa
ton. Mr.. Rose thinks this entirely too
high.
The Southern got in its final "say"
through Mr. T. II. Busbee, who briefly
went over the arguments presented by
others the day before, and sent two or
three Parthian arrows after the writer's
Of the letters laid before the Commits
sion relative to the tax and rate question.
This concluded the argument as to the
railroads, and the question as to the as
sessment of telegraph property was tax
en- up, as above indicated. The Western
Union Telegraph Company was repre-
sented by it's district superintendent, Mr..
J. b. Tree. of Richmond, and by Mr..
Robert s. Strong, attorney.
Mrs. d. Il. Pierce has issued invita-
tons to the marriage of her daughter,