The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-04-21

| reduce fares, when unreasonable profit $
are being made by a carrier, such right
cannot be abridged or taken away by
any action of the owner. either by way
Of lease or otherwise. If this were not
so. railroad company which was re-
! ceiving - per cent. on its capital stock,
| and apprehended a reduction by the
| railroad commission. OF its freights ana
! fares could lease its road to thlrd
| party. for n rental of % per CENT ana
Tins prevent Il reduction of rates SO long
| MS the lease continued We think the
, leasec. in such a case, would take the
property, with notice of the legal power
| of the Railroad Commission. ut any time
! to reduce the freights and fares to such
n point as to permit it to make only
| reasonable profit. And so, the South
| crn Railway Company. took the lease
with notice of the power of the North
| Carolina Railroad Commission, to reduce
! the passenger rates on domestic business,
to such a point, as that the company
should make only a fair profit on that
proportion of the actual value of the
property, which, for the purposes of this
calculation. should be deemed as appro-
priated TO domestic business
1t is submitted. that the reports which
have been filed by the Southern halfway
Company with the North Carolina Rail
road Commission, furnish data concern
ing the North Carolina Railroad, Which
fully justify the proposed reduction Oh
passenger rates. There Is nothing IN
the affidavit of Mr. Samuel Spencer orI
the unsigned statement which has been
filed with the Railroad Commission, toI
overcome the prima facic case which
their own reports make out against
them.
Let us examine the affidavit of Mr..
Samuel Spencer ON which the Southern
Railway relied in its application to re-
scind the order making the reduction of
rates in January list. This order APP
piled to the following railroads; the
Western North Carolina railroad: the
Atlanta. Tennessee and Chicago rail-
road: the Piedmont railroad; the At
lanta and Charlotte Air Line; the CHAR
lotte. Columbia and Augusta: and the
North Western North Carolina railroad.
1t is well known. that the Southern
Railway Company owns or operates in
North Carolina. quite Il large mileage of
railroads, under various organizations. |
Some OF them are reported to the Rail
road Commissin in detail. As to most of
them it is easy to see ut Il glance, that
they are either making but little money, |
or are running behind. Quite II num-
her Of the roads operated by the South |
ern Railway Company, are reported III
connection with other roads. in such Il
way that it is impossible to separate
them from each other. or TO tell any |
thing about them as distinct organiza- |
tions. The southern Railway Company, |
in attempting, by the said affidavit, TO |
show cause why the fares over said
railroads should not be reduced, seems
TO have contented itself with generali- |
ties. failing to give the particulars aS
to each of the roads affected by the said
order. upon which the commission might |
act inteligently. But enough appears
to make it evident that none of
the roads are enjoying the local
passenger business of the North
Carolina Railroad. and none Of them are
so able TO stand the reduction of the !
local rates as this road.
Mr.. Spencer. in his affidavit shows |
row unfortunate the Southern Railway |
Company has been in North Carolina. |
and in other States, III acquiring and
operating Il large number of roads, |
which are Il source of continual loss 10
the company. He shows that the rail |
roads composing his system, as Il whole,
are asking less on passenger and freight |
business than the average railroad III |
the United States. and he argues fro y
.heSe premises. that the North Car0lin,L |
Railroad. Which is making the net i'm |
come of SAG, 526.1S, is unable to stand |
the inconsiderable reduction of "a of 4 |
cent per mile on its domestic passenger |
rates. In his argument and estimates. |
he seems TO include all the railroads |
operated by the Southern Railway Com |
pany in North Carolina, among them
the
The Asheville and Spartanburg Rail |
road, with capital stock of $1,05O.O00, |
and bonded Indebtedness of $780,, |
600. making a total of $2,050,O00 re-
ports an income on domestic and futtk
State business of only S39, S63.32
The High Point, Randleman, Ashe-
boro and Southern Railroad Company, |
with capital stock Of S250000. and |
bonded indebtedness of 100000. d |
total of $652,000, reports an actual de-
felt on it's operations for 1897 Of sos
059.03.
The North Carolina Midland Rail
road. with capital stock of $G50,000,
and a bonded indebtedness of S390,000, |
making total of S1,040,00O, reports al