The Caucasian. (Clinton, N.C.) 188?-1913, 1897-10-28
O,aroad Commission Files its An
ever to the Western Union
Company.
rDEvENDOUS PROFITS
ON WATERED STOCK.
,t.I, IER CfNI PROFIT
n,, rttr MADE ON CAPITAL
i>yESTED.
~ ,sopaous SURPLUS HAS
ALSO BEEN ACCUMULATED.

,leraph rate In England and |
o.,,,,r, IL Uns cent Word, nj Il In |
,sria, France and belgium In Iesv, |
al I,t ~ FaIr Tr, lit is M xde by the |
eOmpDni's.
twill be rememb bered that at lis
'oly meeting the Railroad Commiss
Gon issued au order cutting down
be toIle IN kilograms of ten words,
over tbc Western Union line, from
o cents to - cents, when sent from
one point in the State to another in
the STATE. The toll on other lines
was made 20 cents. The Western
raion Company at once ran to the
Federal Courts au got an IN Inction
rfIainIug the State from enforcing
the order.
Tie Commission assisted by the
attorneys of tho State, have filed
the State s answer with the Federal
Courts.
After denying the jurisdiction of
the court in the promises and setting
forth that the Western Union Com
pany, being a foreign corporation,
Il is permitted to carry on its busi-
ness n this State only by comfy and
not Of right, and that in so far as
the public at large is concerned, the
corporation is subject to the con-
troll and regulation of the State of
North Carolina, as to its property
and tho rate of charges for trans
hitting messages, the Commission
ers declare that the mplainant's
old rate of charges was and is un-
Just, unreasonable, extortionate and
oppressive to its patrons. Further
answering, tho defendants say that
it is not true, that the new rate was
made without notice to the com
plainant; nor is it true that the de-
fendants before making and promul-
eating tho rate Informed the com
pl0luant that no order would be made
by it changing or otherwise affect
Rlg the rate OF charges as then made
The answer further denies that
he Railroad Commission is in any
ISense q court and that the entering
OF the record in the United States
Circuit Court and the filing Of the
bond constitutes removal Of the
action into their court. Not only
was day set by the Commissioners
for hearing of the case before
the rates went into force, but that
they were subject to q revision of
the State court under laws of the
State of North Carolina creating the
Railroad Commission, and upon FL
ng OF " proper bond in the State
court the enforcement of the order
could bavo been stayed until final
decision should be made therein.
1t Is denied that the new rates are
Unjust and unreasonable; that any
loss would occur to the Western
Union Company when required to
transmit messages at the rate pre-
scribe, but that fair and reasona-
bic profit will be derived therefrom,
aud IT applied to the Western Unions
entire system and business of trans
utting messages, would enable il
10 maintain its lines, defray operat-
lug expenses, and pay dividends
upon It's actual capital invs ed
Doth IN its entire business and in its
business in this State. The defend
ants 60 further and declare their be.
lef that If the same rate should be
established by every State in the
Onlon, so as to affect the entire sys.
'em and business of transmitting
messages from point to point withir
each State, the complainant wdnlc
receive fair and reasonable in
come on It's entire actual capital; anC
mat IT the rate should be applied tt
Neentlre system and business o.
uansmlttlng messages, not onl.
within the State, but between tn,
'ates, the. company would still b.
euaol9d to maintain its lines. defrs.
uS operating expenses, and pay {
reasonable dividend on the actua
capita! invested in its business.
Further it is denied that the .ffec
VI 'ne enforcement of the new rat
would be an unlawful appropriation
'" 'ne eomplainant's property with
DDWJl't compensation, or that tn
p%rd of II ,ilroad missioner
ass uaIawfully and uni ls'ly dis
T'in Tin mated against the Wester
aion aud in favor of other telt
ss.aph companies operating in tn
olate Of North Cor lima. The ar
sser alleges that the rate was mad
WIN authority of law, and is not
Troiation of the constitution of th
United States or of North Carolina
it Is claimed that in determinin
Nuat IS fair and reasonable prot
" DC made by the complainant
Tue operation Of its system of tel
sIaph lines throughout the COUNT
I. ,Ie present capital stock of the cor
stanant cannot be taken as crit
t,on or the values Of its propertie
so ur that, as the defendants are i
tSormed and believe, its capital sto'
Aas .sIen been watered beyond measure.
.. Iha', as the defendants are
.,oormed and believe, in the year Is
Sue SAID complainant invested t
sum sum OF $50 900 in its plant and bu
;;.ueS3' which at that time constitut
"S entire capital stock.
3, mat without any other or fur
:. w.. sum having been paid into
0me'asury of the complainant, or wit
O.L ouI Its having purchased any
SS.ner thing of value as basis the
iSt, io.,, It's capital stock was, in the y
A0oi, Increased to $24O,000.
mat, in the year 1858, witht
Suy other or further sum havi
oo ooen paid into the treasury of s.
nmpialnt, or without its havi
PulCnaSed anu nrnne rfu or 0ti