The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-02-02
WHY BIG SALARIES SHOULD BE
KNOWN.

In the Railroad Commission report the
general officers of the roads have
adroitly divided up their pay
so as to conceal the real amount
OF their salaries. In this way they have
put down the average" pay Of the gen
eral officers of the Southern Railway,
charged up to the North Carolina
Railroad at $1.16 per day. I'M
agine the princely occupant of
a palace car, with a staff of servants,
lawyer and private secretary working
on an average of $1.16 per day. IT, in
the same way, the Secretary of the U.
S. Treasury would divide out his $4,000
salary among all the counties of the
Union, we would never be able to get
at it's amount. 1t was this industrious
attempt to conceal the real salaries of
these railroad nabobs that caused Mr..
Hauser's resolution of inquiry as to the
aggregate of the salaries Of each to pass
the House, and not any mere desire to
hDoW uOW inuch the oiicadiS HtCeANc-
This Legislature ought to cut down
passenger and freight rates. 1t can
not do this wisely unless it knows the
amount expended on fancy salaries and
the like. In reducing rates, there ought
to be always kept in view the fact that
no reduction ought to be made that does
not leave a fair margin of profit to the
roads. No reductions ought to be made
on the small lines like the Chester and
presidents salary is only $1,000. But
where salaries reach as high as $4,000,
there is ample room for reducing the
rates.
In the case of Chicago & Grand Trunk
Railway Company VS.. Wellman, decided
at the October, 1891, term of the SUI
preme Court of the United States, it was
expressly decided that the reasonableness
of expenses should be inquired into in
making railroad rates. The decision,
which was the unanimous view of the
court, was written by Justice Brewer
known to be the most pro-raiIway Judge
on the bench. He said:
"A single suggestion in this d.
rection: 1t is agreed that the defend
ants operating expenses for 1888
were s2.4Gz,s16,54 or what do
these operating expenses consist!
Are they made up partially or ex-
trayagant salaries; fifty to one hum
dred thousand dollars to the president
and In like proportion to subordinate
officers? Surely, before the courts
are called upon to adjudge an act of
the legislature fixing the maximum
passenger rates for railroad compa-
MES to be unconstitutional on the
ground that its enforcement would
prevent the stockholders from receiy-
ing any dividends on their invest
ments or the bondholders any in
terest on their loans, they should
be fully advised as to what is done
with the receipts and earnings Of the
company; for if so advised, it might
clearly appear that a prudent and
honest management would, within
the rates prescribed, secure to the
bondholders their interest and to the
stockholders reasonable dividends.
While the protection Of vested rights
Of property is supreme duty Of the
courts, it has not come to this that
the legislative power rests subservi-
ent to the discretion of any railroad
corporation which may, by exorbi-
tant and unreasonable salaries, or in
some other improper way, transfer
its earnings into what it is pleased 10
call operating expenses"