The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-07-30
Mr.. BURTON'S ARGU MENT
lie SHOWS THAT THE SOUTH
ERN MAKES MOST ON
PASSENGERS.
WESTERN UNION TELEGRAPH COMPANY
Has Hearing on The Rate Of Taxation Imposed
by the Commission Another
Session To-Day.

SSoS'o' ~ SNJ
The Railroad Commission office ouSh
to be enlarged. The partition separat
ing the front office from the back room
ought to be torn down, an elevated place
erected where the Commissioners cal
sit as Judges, with plenty of room 1ol
all those interested i'll the proceedings
of the court for the attorneys ana s'eh
ographers and others. Yesterday morn
ing those present filled the piazza III
front of the office as well as the Offices
and tbore was too much crowdlng. be
sides. it would have sanitary erect IL
the Commissioners would hold theih'
selves as Superior Court judges, com
melting the same respect that Is PAID 10
the other courts in the State and put an
end to the suggestion that favorlte RAN
readers can sit down and talk conf
dentially to the court while Others have TO
stand afar off. Let the Commission be
Il court.
The proceedings began yesterday morn
ing. all three Commissioners being pres
ont. with hearing of the exception filed
by the Wilmington and Weldon railroad
against the order compelling them TO
reduce their passenger rates while tue
other roads equally as able are allowed
10 maintain high rate. Mr.. K. .. Bur
the counsel of the Wilmington and Wei
don opened the argument and in sub
stance said:
Mr. Chairman and Gentlemen of the
Railroad Commissions:
In the argument of the exceptions or
the Wilmington and Weldon Railroad
Company, | do not intend to go over the
ground which has been so fully covered
in prior discussions of this matter. |
simply desire to present some addltiohai
views which occur. to. me III the very
brief remarks L shall make. As n basis
for them desire to call your attention TO
an article in IA recent number of the
North American Review, which discusses
States regulating railways III the ilShi
of the Nebraska decision.
Mr.. Burton then read the article in
which the author said that one item IN
railway accounts was never distrusted
was gross receipts. The author then al
lotted 70 per cent. for expenses and as
signed 80 per cent. for fixed charges and
dividends; that it was easy to look AT
the returns of all States that kept rail
way statistics and see what rates coulo
be reduced. The author then gave III
elaborate table showing the gross earn
ings per mile. The table raj
from $2,SG4 per mile in North Caro-
lima the poorest State which WON'T
represent 6 per cent. on S14,320 per mile
to New Jersey, earning S1S.111 per NIL
80 per cent. being & per cent. on S.E',
$50 per mile The writer then said Il roaf
should earn q per cent. dividend OF
$4,000 mile. If it did not, it mean
sooner or later bankruptcy. But ta
court would never permit Il reduction
of rates in State where this was earned
Now / do not mean to say that thes
remarks are entirely applicable to tl'
Wilmington and Weldon road. Th'
writer takes an exaggerated view, per
haps. Of the amount of earnings ncccs
sary to keep a road solvent. But the,
illustrate well and forcibly the situation
here.
The Wilmington and Weldon road il
managed with admirable economy an'
system. When the consensus Of railwa,
opinion is that it takes 20 per cent o
earnings to operate road, lncludIn:
taxes, and the longest road given. th'
Chicago and Northwestern Railroad
got its mere operating expenses
exclusive of taxes, down to g.
per cent. the Wilmington and Weldon
road operated in 1867 for % per cent
North Carolina in its gross earning
IL.
in which railway statistics are kept
It's gross earnings per mile are shown
by the table to be only S2.SO4. of whicI
30 per cent. fSS59OO) is only 6 per emf
or S14320 per mile. The Wilmington
and Weldon road operates 52O.S5 mile
outside of the Ncwbern branch of S72
miles. acquired by it last fall. If W
exclude this branch. its gross earning
per mile were only S3124.OO. But cour
sci objects that this includes its branches
No matter-its branches are now integra
parts of the road and must be operate,
no matter at what loss. The abandon
ment of one Of them. without the permits
sion Of the State. would cause n fo
fixture Of it's charter 1t is forced to OF
crate them all, and all together make Il
the one whole--the Wilmington and We
don road as authorized by the State. Blu
if all branches except the Wilson branc
are eliminated and all the gross earning
are put to the credit of the main line an
the Wilson branch. which is PRACTICAL
n part Of the main line, the gross carr
ings are only S6.474.00 per mile: wherea
the North Carolina railroad earns on il
222 miles gross S7.115 per mile. and tn
Raleigh and CASTOR S5.6S2 per mile.
desire to place before the Commissio
some calculations. which shed n foo
of light on this controversy Bear j
mind that the tax valuation Of the Wi
mingtou and Weldon for the year 1S9
was $685. go. IT is now increased t
$3.50. 775. The cost Of the road an
eouipmcnt. exclusive Of the Ncwher
branch. is S1OS02 30: with the Newher
branch it is S13. 100 1873. The cost Of RI
production would be ut least S9,636.O0t
Nv FIRST statement is based on tlp rf