The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-01
THAT is A HARD NUT
FOR THE ELOQUENT JOHN w.
DANIEL TO CRACK.
If A NORTH CAROLINA COMPANY
Can Make Money at the lower Rate, Why
Raise il to Give the Bell Folks a
Monopoly &?

ast time for many months, the telephon
rate question was yesterday agail
drought before the Railroad Commission
Though the whole day-from 10 o'clocl
to 6, with an hours recess for dinner
was consumed in the hearing, it was no
completed and the matter will again b.
resumed when the Commission meet
this morning at 10 o'clock.
After the introduction of some furthe
testimony argument will be made b.
Senator Daniel ON the one side ant
fudge MacRae on the other. Senator
Daniel, Mr.. G. E. Young and Mr.. Robt
Strong represent the Bell Telephone
Company, which is contending that tn,
new rates are too low, and Judge j. G.
MaoRae and Capt. w. III. Day appear
for the Interstate Telephone Company
which thinks the rates are high enough
The Commission met at 10 O'Clock
and Senator Daniel stated the position
Of the company he represented in this
Ease and his understanding of the pres.
emit status of the case.
The granting of rehearing of the
rate question, he contended, put the
case back into its original position and
thereby again placed the burden OF
pAVOI uDOu lAC 1OE lower
rates. I'VE have the status of defend
ant charged with an offense to which
q penalty is attached"
On request from Senator Daniel the
petitions, records of the Commission and
its orders in regard to telephone rates
In this case were read. This consumed
about two hours.
Then came fight for position by the
attorneys. This was precipitated by
the reading, on the opening of the case,
OF letter written by Col J. s. Carr,
treasurer of the Interstate COMPANY.
asking that his company be granted a
nearing and setting forth certain facts
IN regard to its operation and profits
derived therefrom.
Senator Daniel objected to Col. Carr's
testimony, on the ground that Col. Carr
must be present and be cross-examined
Maj. Wilson made the point that the
Railroad Commission was court of
investigation and was seeking informa-
ton from any source whatever, but in
order to overcome all objection he ex-
cluded the letter.
Mr.. Strong, for the Southern Bell
Telephone Company, made the point that
heretofore the Interstate Telephone
Company had been before the Commits
sion in the capacity of witness for the
Bell company, and now it had shifted
ITS position to that of prosecutor Of the
Bell company, and was represented by
counsel in an effort to prevent a restora-
ton OF the very rates that its officers
had testified were not too high. This
beng the case, Mr.. Strong contended
ThQf ~ NJ lot o. H. r.
company to come in.
Capt. Day cOntended that his COM
pany had an interest in the maintenance
OF the new rates, and therefore they or
any one else had right to come here
and take part in the investigations
the Commission was conducting an open
investigation and anyone might be call
ed in.
Judge MacRae said this was the cor
rect view of the matter and that under
the law the Commission was not bound
by the rules Of procedure maintaining
in ordinary courts.
Senator Daniel reiterated his state
ment that the reIhearing having been
granted, it was an admission Of error
on, the part OF the Commission in it's
former order reducing rates, and the
Burden Of proof was on the petitioners
to show that the old rates were unrea-
sonable.
IF the attorneys of the Interstate
Company want to appear here as wit
nesses we have no objection, but they
can't come here to represent witnesses.
Witnesses are not accustomed to ap-
pear in court escorted by witnesses. II
their company wants to come here as a
party to this case let them fly that flag;
il as witnesses let it be so understood.
Eve stand here charged with a vio-
ntion of the law-with charging ex-
orbitant rates. We demand to be con-
frOnted by our accusers, and have the
evidence against us brought out in true
and legal form, so that we make an
swer thereto.
AT least two members Of this court
said Maj. Wilson, laughing, and refer.
ring to himself and Commissioner OthC
Wilson, ARE in position to agree with
you in sentiment, but rs a matter OF
fact, we are court of inquiry and per
NIT very wide latitude in the matter OF
the Introduction of evidence"
1t was then agreed that the burden OF
proof should rest on the Interstate Com
pany to prove that the Bell Company,
former rates had been too high, and tina
attorneys for the Bell Company Shout,
have the conclusion Of the argument
This done the Commission adjourne,
until 2:30 o'clock.
When that hour arrived Mr.. T.. A
Carr, president Of the Interstate Tele
phone Company, was put on the stand
Senator Daniel objected to Mr.. Carr
testimony on the ground that he ha
not his books.
Chairman Wilson ruled that the Be
Company had no right to examine tn
books of the Interstate Company, an
that other companies had not been RI
auired to produce their books.
Mr.. Carr said his company had abou
100000 invested. Probably $4,000 q