The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-06-09

rates now charged on the North Caro-
| linn railroad are reasonable OF unreason'
| able.
=. That this question has been recent
/ Iy considered by this honorable commits
sion, aud that the present rates have
| been declared to be reasonable.
/ 3. That there can be no new cause
/ for reinyestigation of the subject until
| a change has taken place IN the cir
| eumstanceS and conditions surrounding
traffic in North Carolina, and that the
| complaint shows no such new cause,
| the fact being that the conditions OF
| traffic are substantially the same as
| those which controlled the previous de-
eiSion OF this honorable commissions
4, That what the complaint does show
is not true statement of fact, but an
argument based upon series of crrone-
Gus assumptions,
&, That this honorable commission
should not attempt to regulate the pro.
eeedngS of the Southern Railway Com
pany ON the North Carolina railroad
alone, and without reference 20 other
Southern railway lines in North Caro-
lima, as the control of that property is
only Il fractional part Of the entire invest
y
in North Carolina.
&. That the reduction of passenger
rates ON the North Carolina railroad.
proposed by the complainant which
would involve an annual reduction in
net earnings To the Southern Railway
Company Of about $4,000, and would
result in compelling the southern Rail
way Company to perform the intra-Statc
~ ~, a .
loss, is unreasonable and coniiscatory.
In consideration of all of which it is
respectfully submitted that the com
plant should be dismissed"
Chairman Caldwell, after the reading
of the answer by Vice President lfindley,
stated that the board would hear coun-
sci on both sides as TO the question of
separation of the North Carolina Rail
road from other lines in the State opera
ted by the Southern Railway Company.
Col. Jno. w. Hinsdale opened the ar
gument for the plaintiff, declaring that
each railroad organization stood upon
its own bottom and in the consideration
of the question of reduction of rates on
one, the Commission has no right to take
into consideration any other line.
IF a railway company was operating
Il railroad at a profit of % per cent. it
could not eyade the legal right of the
Commission to reduce its rates by leas-
ing or buying another road even though
it operated the other road at a loss. If
that could he done in one instance it
could be done in all instances. and the
law could be gotten rid of by the leasing
of a losing corporation. 1t was never
intended by the Legislature that the
power given the Commission to regulate
passenger or freight rates should be cir
cumvented by the allegation on the part
of the railroad company that it perhaps
was operating some other railroad at a
loss.
you cannot mix these babies"
1T is admitted" argued Major Sted-
man, that the nonpaying roads are
taken up by this defendant company, for
the purpose of rehabilitating them"
For whose benefit?'
'IFor whom are they building them
up?"
For the people of North Carolina or
for themselves?'
They propose to build these properties
mp to pay for them. to rehabilitate
them as they admit by charging exorbi-
tant rates and then they are to own
them"
Col. w. A. Henderson arguing for the
| defendant company, declared that mo
such proposition had been made in this
or in any State before, and these gentle
men representing the plaintiff are enti-
tied to a patent"
THE Southern Railroad is one company
operating one road with branches Just
as a tree is one tree with various
branches. They propose to cut it into
how many pieces the Lord only knows.
"Under this construction the people
living along the line of this road should
have reduced rates while the poor ga
loots away out on some little money-los-
ing road should keep on paying the old
rates. In order to keep up the equality
the people living along the line of the
road that is operated at n loss should
be made to pay more in order to make
up a fair dividend ON "a fair value" of
the losing road. The North Carolina
Railroad has nothing to do with the
operating of a railroad; it has leased its
right to operate a railroad to the South
ern Railroad Company. and a judgment
could no more cut the Southern Railroad
in two in North Carolina than it could
cut an individual line into two or more
pieces and reduce fares on one part of it
on the ground that its earnings on that
particular part were too much.
Colonel Hinsdale replying. declared
that il the argument of the other counsel
was correct then the right to adjust rates
is a nullity. You could not reduce
rates on big paying roads. because some
| other little road was losing money.
We are not asking the commission to
cut rates on the Southern railroad. We
are asking it to consider the affairs Of n
railroad which the Southern railroad
admits and reports TO this commission
as Il separate railroad organization.
You can sue it Individually" sug-
gested Chairman Caldwell
Yes sir" replied Col Hinsdale, ''and
| that very fact shows that it has not
been merged into the Southern railroad.
Nor can the question of rental be
considered in determining this question.
| This in reply to u question by DR..
Abbott) If it could a railroad making
- per cent. could be leased to another
party at % per cent, and thus evade
| the law
Capt. Chas. Price said that the only
powers of the commission were given in
| the act creating the commission, and