The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-06-09
CONSIDERING The RATES
AND ANSWERS BY TIE RAILROADS
All Of Yeslegday'$ Session Taken up With the
Hearing Of lhis.MaNee--StoRg Papers
Filed in Fave Of he
Reduction.

heduCWQHt
The Board of Railroad Commission,
ers met at 1880 o'clock a, m. yesterday
and Immediately took up the question of
a reduction of passenger rates, The
question came up on petition or com
plants or petitions and complaints filed
by his excellency Governor Daniel L..
Russell against the North Carolina rail
road. operated by the Southern Railway
Company: the Raleigh and Castor rail
road-the Seaboard Air Line-and the
Wilmington and Weldon railroad-the
Atlantic Coast Line.
The Commission met in the State
library, each one of the Commissioners
being present. TO wit: Mr. l.. c. Cald-
well. chairman: Mr.. John Pearson and
DIR. ID. I'll. Abbott Among others pres
ent were Mr.. II. w. Il. Glover, general
traffic manager of the Seaboard Air
Line: Mr.. j. Is. Bachelor, Mr.. J. Nj.
Turner and Mr.. Moncure, of the same
system; Colonel Warren q. Elliott. pres
ident OF the Wilmington and Weldon
railroad: Mr.. r. O. Burton. attorney
and others of the Coast Line system
Colonel A. r. Andrews, first vice presi-
dent: Mr.. W. w. Findley, second vice
president: Mr. Frank Cannon, third vice
president; Mr.. Hill, secretary; Mr.. w.
A Turk. general passenger agent. and
Messrs. w. A. Henderson, Chas. Price,
Fairfax Harrison and IT, III. Busbee. at
torneys for the Southern railroad. The
Governor was represented by the follow
ing attorneys: Colonel .Ino. w. Hinsdale
and Mr. Chas. A. Cook, of Warrenton
Major Chas. Nj. Stedman. of Greensboro
and Hon. Chas. NJ. Cook, Of Warrenton
There were number Of other interested
listeners to the days proceedings of the
commission. Among them Rev. Baylus
Cade. private secretary to the Governor:
Hal w. Aver. State Auditor; Captain
Ino. A. Ramsay. of Salisbury; Mr.. NJ.
T. Leach of Raleigh, and others.
The days proceedings began with the
reading of the Governors petition and
complaint against the Raleigh and Gas
ton Railroad Company by Mr.. W. G.
Douglass. of counsel for the plaintiff.
This complaint was printed in full in
yesterdays News and Observer.
In reply Mr.. FL. w. Il. Glover submit
ted two papers-one dated January.
1898. and the other March, 1898. and
addressed to the Hon. Board of Railroad
Commissioners of North Carolina, each
giving reasons why passenger rates
should not be reduced on roads operated
by the Seaboard Air Line.
Objection was made to the reading of
these papers as answers to the COM
plant of the Governor on the ground
that they were not answers to the al
legations set forth in the petition. but
were arguments presented and consid-
cred in former bearings by the COM
mission. 'Ante-war and obsolete ma
pers," as Mr.. Douglass expressed it.
A motion for judgment was then lodg-
% by the counsel for the plaintiff
Chairman Caldwell announced, how
ever. that the Board of Commissioners
would hear all the petitions and answers
before rendering decision in either case.
Colonel John W. Hinsdale then read the
complaint filed by the Governor as plain
tiff against the North Carolina Railroad
Company and the Southern Railroad
Company. This complaint was some
time ago printed in the News and Oh
server.
Mr.. W. w. Findley the second vice
president of the Southern railway. read
the answer of the defendant company
The answer was submitted in printed
form and covered twenty-five pages. 1t
is an exhaustive and lengthy resume of
the management, the receipts, earnings
and expenditures of the North Carolina
railroad with special reference to and
deductions made from the earnings from
intra-State or local business as contra
distinguished from Interstate or through
business.
The first declaration of the answer to
the petition was that 'the value nj
which railroad property is assessed for
taxation is not the real value Of the
property"
The defendant. quoting from the Ne
braska decision claim that rates must
be fixed with reference to the fair value
of the property used for the public or
the fair value of the services rendered. >
Quoting again from the Nebraska
case" Smythe VS.. Ames. is relied upon
for determining II fair value of the prop
erty. to wit:
''The original cost of construction. the
amount expended in permanent improve
ments the amount and market value Of
the bonds and stock. the present as com
pared with the original cost of construc-
ton. the probable earning capacity of the
pronerty under the particular rates pre-
scribed by the statute and the sum re-
Guired to meet operating expenses are
all matters for considerations
The second declaration of the defend,
ant company is that the par value of the
stock of the North Carolina Railroad
Company is not the flair value of the
North Carolina railroad
In this declaration the Nebraska case
IS again relied on, and quoted as follows:
THE apparent value Of the property
and franchises used by the corporation
as represented by it's stock, bonds and
obligations IS not alone TO be considered
when determining the rates that NAV be
reasonably charged"
The relations Of the citizens Of North
Carolina to the net earnings of the North
Carolina railroad and other assumptions
IN the complaint. together with the ones.
ton of considering the North Carolina
Z rallroad separately from the other lines
in North Carolina operated by the South
ern Railway Company" are dwelt upon
at considerable length. with final sum.
ming mn Of the answer. as follows:
i. That the real question here in