The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-16
TELEGRAPH RATES
ARE TOO HIGH
Railroad Commission Files Its
Answer to the Western
Union Company.
PROFITS ARE CHARGED
ON WATERED STOCK
OVER SIX PER CENT OF PROFIT
HAS BEEN MADE ON FLO
TITIOUS CAPITAL
-------~-------
AN ENORMOUS SURPLUS HAS
ALSO BEEN ACCUMULATED
The Telegraph Rate in England and Germany
Is One Cent Word, and in Austria,
France and Belgium It is Less, and
and Yet Fair Profit is Made
by the Companies.

by the Companies.
The telegraph-rate case comes up at
Wilmington, in the Federal court, No
vember LIST.
1t will be remembered that at it's July
meeting the Railroad Commission issued
an order cutting down the toll on tele-
grams of ten words, over the Western
Union line, from 25 cents to Is cents,
when sent from one point in the State to
another in the State. The toll on other
lines was made 20 cents. From this or
der the Western Union Company APP
pealed to the Federal court, and later
the Postal oined in the appeal.
The sworn answer Of defendants, ]. w.
Wilson, s. Ohio Wilson and ID. III. Alb
bott, constituting the Board of Railroad
Commissioners of North Carolina, to the
complaint Of the Western Union Tele-
graph Company was filed with the clerk
of the Circuit here.
After denying the jurisdiction of the
court in the premises and setting forth
that the Western Union Company, be-
ing foreign corporation, it is permit
ted to cary on it's business in 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 control and regulation OF the State
OF North Carolina. as to Its property and
the rate of charges for transmitting mes
sages, the Commissioners declare that
the compliments old rate of charges
was and is unjust, unreasonable, extor-
tomato and oppressive to its patrons
Further answering, the defendants say
that it is not true that the new rate
was made without notice to the COM
lplainant; nor is it true that the defend
ants before making and promulgating
the rate informed the complainant that
no order would be made by it changing
or otherwise affecting the rate Of
charges as then made.
The answer further denies that the
Railroad Commission is in. any sense a
court and that the entering of the rec
lord in the United States Circuit court
and the filing of the bond constitutes a
removal Of the action into that court.
Not only was a day set by the Commits
sion for re-hearing OF the case before
the rates went into force, but that they
were subject to the revision of the
State court under laws of the State of
Commission, and upon the filing of
proper bond in the State court the en-
forcement Of the order could have been
stayed until a 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 Com
pany when required to transmit mes
lsages at the rate prescribed, but that a
fair and reasonable profit will be derived
therefrom, and if applied to the West
ern Unions entire system and business
IOf transmitting messages, would enable
lit to maintain its lines, defray operating
Expenses, and pay dividends upon it's ac-
ltual capital invested, both in it's entire
bunisess and in its business in this
State. The defendants go further and
declare their belief that If the same
rate should be established by every
State in the Union, so as to affect the
entire system and business Of transmit
ting messages from point to point with
in each State, the complainant would re-
ceive q fair and reasonable income on
its entire actual capital; and that if the
rate should be applied to the entire sys-
tenn and business OF transmitting mes
sages, not only within the State, but
between the States, the company would
still be enabled to maintain its lines, de-
fray its operating expenses, and pay a
reasonable dividend upon the actual cap
ital invested in it's business.
Further it is denied that the effect OF
the enforcement of the new rate would
be an unlawful appropriation of the
complainants property without just
compensation, or that the Board of Rail
road Commissioners has unlawfully and
unjustly Disseminated against the West
ern Union and in favor of other tele-
graph companies operating In the State
Of North Carolina. The answer alleges
that the rate was made with authority
of law, and is not in violation of the con-
stitution Of the United States or of
North Carolina.
1t is claimed that in determining
what is a fair and reasonable profit to
be made by the complainant in the ope-
ration of its system Of telegraph lines
Throughout the country the present cap
lital stock Of the complainant cannot be
taken as a, criterion of the values of it's
properties. For that, as the defendants
are informed and believe, it's capital
stock has been watered beyond measure.
"That, as the defendants are informed
and believe, in the year 1851 the said
complainant invested the sum of $780,
200 in it's plant and business, which at
that time constituted its entire capital
stock.
"That, without any other or further
sum having been paid into the treasury
of the complainant, or without its hav-
ing purchased any property or other
thing Of value as basis therefor, It's
capital stock was, In the year 1852, in
creased to $4,000.
"That, in the year 1853, without any