The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-06-08

proposed reduction of passenger rates,
is S74, 39t 10. which is Il profit of 203
per cent. on S624. SCI 20, appropriated TO
domestic business. If the cost of the
road and equipment, or the total capital
stock. be taken as the value of the conn
pany's property, the result viii not ne
materially varied.
When United States per cent bonds
are worth 100: North Carolina 4 per
cent. bonds are worth 1872; City of Raj
eigh : per cent bonds. 10T; Raleigh and
Castor : per cent bonds, 106. and New
York Central and Hudson river stock,
which pays 4 per cent. per annum, 100;
and the stock Of the North Carolina
Railroad Company, which pays divi-
dend of G1h per cent, about 1870; it would
seem that a net profit of 5 per cent. upon
the value of a railroad company's prop
ertv, is reasonablep income for it to
make and that it cannot complain of Il
reduction of it's domestic passenger
fares, which still permits more than
such profit to be received.
1t is claimed by the railroad com
panies, that the expenses of domestic
business are greater in proportion than
the expenses incident to Interstate
by one of the most reliable witnesses,
in the Nebraska case, is about 10 per
cent. But suppose it is as much as 20
per cent. If the expenses incident to
domestic and foreign business, were III
the same proportion to each other as
the receipts from domestic and foreign
business are to each other. then, accord
ing to the report of the Raleigh and
Castor Railroad Company. the expenses
incident to domestic business freight and
passenger for the year ending June 30,
1897, would be about S96,540. But If
such expenses are to be increased by 70
per cent. thereof, such percentage would
be $4,000. The local freights and
fares in North Carolina are higher than
the through freights and fares. 1t is
supposed that the difference between the
cost of domestic service and the cost of
the Interstate service, is somewhat off
set by this difference in rates. But, if
this he not So there is still liberal
margin left between the JOB per cent.
profit, which the company will receive on
its domestic freight and passenger BUSH
ness, in spite of the reduction of pas
senger fares. and reasonable profit of
) per cent. to cover this difference in
cost, such margin being .0503 per cent.
of $G24 S66. 20, or S31 ,430.T6.
Besides it must not be forgotten, that
the practical abolition of the free-pass
system in North Carolina, will necessari-
Iy add thousands of dollars to the reye-
nue. of the railroad. This and the in
come earned by the increase of travel,
following the reduction of rates, will
more than make up for the loss occa-
stoned by such reduction.
The experience of railroad companies
in Europe, as well as in this country,
has been uniform, in that reduction of
passenger fares has always been follow
ed by an increased volume of travel,
generally more than counter-halancing
the loss directly caused by the reduction.
Ii is submitted that the reports which
have been fled by the Raleigh and Gas
ton Railroad Company, with the Rail-
road Commission, furnish data which
fully Justify the proposed reduction of
passenger rates.
Respectfully submitted,
JOHN w HINSDALE,
CHAS. A. COOKE,
w. c. DOUGLASS,
Attorneys for the State Of North Caro-
lima.
The other business to come before the
commission will be the complaint Of the
Wilmington Tariff Association VS. At
lantic Coast Line. Seaboard Air Line.
Southern, Atlantic and North Carolina
and Cape Fear and Yadkin Valley rail
roads. compelling them to issue mileage
books at the rates of 215 cents per mile;
the Wilmington Tariff Association pc
tition in the matter of class rates from
Wilmington to North Carolina points, on
molasses. classification of bacon and cot
ton piece goods; hearing exceptions to|
circular 81, in the matter of mileage
tickets.
The Southern Express Company's eX-
ceptions to the fish rate and minor cases
are as follows n. $. Hassell vs.
Southern Express Company, thinner
man & Dayie VS.. Southern Express Com
pany. NOEL Brothers VS.. Norfolk and
Western Railroad. A. ID. Aydlett VS..
Western Union Telegraph Company
This session of the commission prom
Uses to be quite a lively one.