The news & observer., 1898-03-20
$4,000 BOND REQUIRED
SOAIE STRANGE NEGOTIATIONS
ARE NOW GOING ON.
NO COMMISSION MEETING YESTERDAY
But the Governor Was Expecting 0ne--Will He
Send in the Letter Written for Him by
Col. Andrews Reported that the New
Rate NAV Yet Be ResCinded.

The Seaboard Air Line yesterday SeFN-
ed notice ON the Railroad Commission
OF appeal to the Superior court of Wake
county from the order Of the Railroad
Commission, overrulng exceptions to the
order fixing rates to be charged for pas
senger fare on its lines at = and 21a
cents.
1T is expected that the Southern and
the Atlantic Coast Line-the other two
systems affected by the new rate-will
also, within the next few days, file a
similar notice. They have ten days i'll
which TO do this.
An appeal bond of $4,000 will be
required for each division of a system
affected by the new rate. This bond
will have to be strengthened at the end
of every. three months. The law au-
thoriZes this.
1t was intimated yesterday that even
yet the new rate may be rescinded.
What ground there may he for this inti-
nation, though, is not known, except
that an effort was made to get a meet
ing of the Commission by the Governor.
and the Commissioners were expected to
boro and hold a meeting yesterday even
ing. just what was to be the object
of the meeting could not be learned.
That it was called by the Governor
and had some connection with the rates
and the lease of the Atlantic and North
Carolina Railroad is almost certain.
There can no longer be any doubt
about it. Governor Russell has gone
over to Col Andrews.
Eleven months after his inauguration
the Governor of North Carolina has
abdicated to the railroad politician and
general political manager.
Ever since last November negotiations
have been going on between them for the
lease of the Atlantic and North Caro-
lima Railroad.
In the beginning the proposition of
Col. Andrews was this: Stop the North
Carolina Railroad lease fight, the South
ern paying all expenses of the suit; lease
to the Southern the Atlantic and North
Carolina Railroad for term of thirty
years, at a rental of . per cent per
annum ON the capital stock and the
bonded debt
This the Governor wouldn't agree TO,
insisting on n rental of 2l2 per cent on
the capital stock and the bonded debt.
Col. Andrews pretended he couldn't give
it. though in reality he was glad to get
it at that price. But he didn't want
to appear anxious. While this higgling
and delay was going on, the court de-
cided in favor of the new Railroad Com
nssioners and they announced their in
tention Of reducing rates in case it was
found on investigation, as they believed
it would be, that the earnings justified it.
had lll al firfhf fliY1e npI
reduced rates.
This frightened Andrews and he
promptly agreed TO the 2la per cent,
with string TO ii. In other words,
he said he would give il, provided pas
senger rates were not reduced. The
Governor didn't much relish this part
of the proposition at first, though it is
now the one ambition of his life. He
said he'd talk with the Commission
about the situation, he thought they
would do anything he might advise. He
talked with them and loI when the con-
ference closed he was q surprised man.
They were not willing to do what he
advised, unless the facts brought out in
the investigation of the rate question
warranted it.
1t was then that Col. Andrews sug-
gested to the Governor the adyisability
of writing a letter to the Commission
setting forth his views on the railroad
situation so far as it concerned the State.
The Governor thought the idea good
one and wrote his letter but he never
sent it.
In this letter the whole situation was
discussed and the advantages to accrue
to the State from lease of the Atlantic
and North Carolina Railroad on the
proposed terms pointed out. 1t would
convert an absolute burden on the tax
payers, he said, into paying property.
1t meant, he added, the payment by the
Southern of $4,000 of costs incurred by
the State in fighting the North Carolina
Railroad lease, and an additional income
of about $4,000 a year to the State
treasury.
More than that, he said. the stock Of
The road, now WORTH % cents, will rapid
ly advance toward par As the State
owns $2,00O,000 of the stock, an adj
vance to 80 cents would mean an in
crease to the State of $2000.000.
The lease was to be subject TO the
ratification of the Legislature. the bid
of the Southern to be left open until
that time. so that other roads might, if
they saw fit, come in and raise it, Then.
he added by way of compromise with the
Commission, that the rate question
should also be left by the Commission
TO the Legislature for settlement
1t was this last proposition that pre-
vented the letters ever being sent to
the Railroad Commissioners. For when
it was submitted to Col Andrews he
objected to the rates being submitted to
the Legislature. He said he knew the
Legislature could take up the rates OF
any other question it desired, whether
it were in the Governors letter or not,
but the mere fact Of its being put in
there at once made the rate question n
political issue and in a sense made it
obligatory on the Commission to act
on it.
The Governor politely suggested that