The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1897-07-20

~ SOA400 AOV g4C
rates should be high enough to allow
them $500, 900 net earnings, but the
actual net earnings reported upon>the
showing Of these three companies for
1896 is 50, 975 600, i. g., they carried off
to their nonresident owners the sum
Of $2,175, 600 in excess of the fair and
legitimate rate of 4 per cent. on the in
vestment. It must be remembered
that this 4 per cent. isnet above charges
for railroad wrecks, betterments, re
pairs, law expenses, taxes, high salaries
and every possible charge which the
corporations have seen fit to crowd
into their expenses, for the sum total
of the money received by these three
lines for their operations in North Caro-
lima in 1896 is admitted to be So, 476. 600.
Thus the sum in excess of a reason
able allowance of 4 per cent. on the in
vestment which these three systems
have carried out of North Carolina
since the day your Commission was
established to reduce rates-the excess
above legal rates in these six years
has been
NEAR THIRTEEN MILLION DOLLARS
exclusive of interest. This sum under
the decisions of the highest court in
this land could justly and properly
have been kept here and it's presence
to day would make this State blossom
like q rose. Talk about frightening
capital from coming into the State by
"knoWing Jul rights and daring to
maintain them" What we need is to
keep a just part of our own capital in
the State and not to permit it to be car
ried eff to be used by Wall street and
London bankers to wreck other Coz
porations elsewhere; to bid them in at
an under price and thus repeat the
process I'VE and over again.
It may be adroitly urged that you
cannot reduce through rates. True
enough, but you can protect our own
people by reducing fares and freights
between any two points in this State SO
that the gross receipts of all kinds,
through ard local, shall not net more
than 4 per cent. on the value of the
money invested. Peik va. Chicago,
"a U. S. 1874.
2. But there is another proof that
RATES ARE TOO HIGH.
The value Of money began increasing
with the characterization of silver and
went On ~decaasing, as evidenced by the
fall in the prices of everything else, till
1891. At that time your Commission
was established to reduce railroad rates.
It is impossible to understand the tenor
of the debates for and against the
measure in that and in previous legis-
l~atures nor the intense struggle by the
railroad lobby and the railroad news.
papers against it upon any other basis.
Indeed the power to do that is the very
kernel of the act creating the Commits.
sion.
Whatever change your Commission
felt able to make did not amount to
any substantial "cut," for comparing
the Railroad Commission report of
1892 with that of 1891, it appears that
while gross earnings had increased $50,
900 the net earnings had increased
$83, OOO-a greater profit than before.
If the public demand as evidenced by
the establishment Of your Commission
could have been complied with there
would have been a substantial cut in
1891. For a stronger reason there
should be a greater one now. Since
the repeal Of the purchasing clause OF
the Sherman Act the value of the
money in which we pay our freights
land fares has gone on increasing, but
railroad charges
HAVE REMAINED Il SAME.
Cotton, which for the six years ending
1891, had averaged II cents, in the six
years since has averaged barely 2; a
fall of over 338 per cent. The railroad
rates ought in fairness to be 80 per cent.
less than the figure to which they
ought to have been cut in 1891.
We know that the great railroads
contributed great sums in the last cam
paign to maintain the gold standard.
We are now paying these sums back
by high rates and thus paying them TO
increase the load resting upon US. A
commission established by our people
ought, il is respectfully submitted, to
have that mercy upon us which we
cannot expect from the non. resident
owners of these corporations whoknow
no more about US and care as little, as
the English landlords do for their Irish
tenants or their Hindoo subjects.
One of these great systems saw the