The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-03-16
NAT. MACON NOT IN 1T
COL. ANDREWSS NAME LEADS
ALL THE REST.
THE RATE QUESTION WAS DISCUSSED
Railroad Officials and Attorneys Take the
News and Observer as Their Text
and Denounce it for Asking
Lower Rates.


The Railroad Commission spent all
day yesterday hearing argument on eN~
ceptions to the rate question, but ad-
ionrned without taking any action in
regard 20 them.
IT is not known whether they will
even be acted on to-day or not. Chair
man Caldwell rather intinated that he
thought fhey would not be. In case the
exceptions are not allowed the new rate
goes into effect on March 23rd.
The hearing yesterday began at lo
O'Clock in the Commission office. The
following railroad officials and attor-
neys were present:
Seaboard-E ST. John. vice-president
and general manager; ii. W. b. Glover.
general traffic manager; Leigh X.
Watts, general counsel; Joseph Is.
Bachelor and W. II. Day, Of counsel.
EosNhern-A. B. Andrews, first vice
president; W. A. Turk, general passen.
rer aTene; w. A. Henderson, general
counsel; Fairfax Harrison, F. II. Bus
bee and Ohas. Price, of counsel.
Atlantic Coast Line-W. G. Elliot,
president; T. NJ. Emerson, general traf-
fic manager.
The Seaboard was first called on.
President ST. John read the an.
swer OF that road He said that the
roads of his system earned for the year
ending June Both, 1897, a less rate per
mile, per passenger, with one single ex-
ception, than was reported by the Inter
State Commerce Commission, in their
last annual report. as the rate per mile,
per passenger, earned by all railroads
in the United States.
"An investigation into the rates order
ed demonstrates, that as between the old
rates and those proposed, a reduction of
% per cent would occur in passenger
receipts, within the territory named
upon local business alone. Upon bust
ness from other States and passing
through North Carolina, the reduction
ordered would amount TO nearly II per
cent, ON first-claSs, and is per cent on
second-class A reduction which could
not be considered, if only present condi-
tions are to be maintained, to say moth
ing of improvements so badly needed il,
almost every direction.
1.-THE earnings accrIing on passenger
business originating and terminating
within the State of North Carolina, on
railroads comprising the Seaboard Air
Line, was less than % per cent of the
total, for the year ending June Both,
1896, and less than 30 per cent of the
total, for the year ending June Both,
1897
The passenger train earnings of all
roads comprising the Seaboard Air Line
were very much less than one dollar per
mile; in fact, to state positively, it is Il
r -
the system, for the year ending june
30th 1896, earned as much as ST.
cents per mile, while the passenger train
earnings Of one road for that year were
only 3O4 cents per mile. For the year
ending June Both, 1897, the highest
earnings per train mile, from passen-
gers, was 1913 cents and the lowest,
265 cents.
In q territory so sparsely settled as
is North Carolina at the present time,
rates such as have been announced
would prove fatal to every railroad in
terest."
Judge Watts, general counsel for the
Seaboard, followed Mr.. st. john, calling
attention to the capitalization of each
of the divisions of that system effected
by the reduction. The Raleigh and
Augusta has 8, 1876 shares at a par value
of 500 each, making "a total of $S7, 1850.
It's bonded debt is 81, 100000. The Raj
eigh and CASTOR has $4,000 shares or
81, 100000 of stock The bonded debt
also is 81 100000. OF this 100000 is
low in the treasury for betterments and
permanent improvements. The Sea-
board and Roanoke has 81, 443, 900 of
stock and bonded debt of 81 1888, 400.
This. he said, made "a total of So, 762, 600
of money contributed by stockholders
for construction, and $2,S00,000 of stock
independent of bonds; or a total invest
ment in North Carolina, by the Sea.
board Air Line, of $5,690,000.
''In other words there is an invest
ment Of nearly 100000 that has not
paid the investors one dollar for several
years, for the reason that the property
has not earned it. Every dollar of it
represents an honest dollar. There is
no watered stock in the road. If the
reduction is made there is nothing aheao
of my road but to impair the service,
reduce wages and otherwise econo-
mice
Referring to the editorial in the News
and Observer. stating that the Supreme
court had often held that 4 per cent
ON the true value of the property was
n reasonable return, Judge Watts said
he knew of no such case and he'd like
to have it cited.
[Suppose Judge Watts read Livings-
ton VS.. Sanford. l64 Z. S., 578, decided
December, 1861.
For the Atlantic Coast Line Traffic
Manager Emerson submitted some
statements he had prepared touching the
effect of a reduction of rates on the
" aimington and Weldon, the Norfolk
and Carolina and the Petersburg Rail.
road. These statements showed that
the Wilmington and Weldon made q
profit, per passenger train mile, of only
6 cents, and that the proposed reduction
would completely absorb this. On the
Norfolk and Carolina, Mr.. Emerson
said the receipts from the passenger ser.
vice hacked a cents a mile paying ope
rating expenses. If the reduction were
made, this deficit. he said, would amount
to 51.6 cents On the Petersburg road
the deficit he said was even now II
cents a mile
Second Vice-President Finley made