The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1898-08-02
tR. BURTON'S ARGU MEN I
SHOWS THAT THE SOUTH
ERN MAKES MOST ON
PASSENGERS.
STERN UNION TELEGRAPH COMPANY
a Hearing on the Rate of Taxation imposed
by the Commission Another
Session To-Day.
Session To-Day.

Session To-Day.
# TLr Railroad Commission office ought
be enlarged. The partition separat-
& The front office from the back room
~ r.ht to be torn down, an elevated place
-a..frd where the Commissioners can
AS Judges, with plenty Of room for
those interested in the proceedings
the court, for the attorneys and stem
4s&2 rauIers and others. Yesterday morn
hose present filled the piazza III
81 aut of the office rs we'll as the offices,
nd there was too much crowding. Be
,Ies, it would nave Il salutary effect if
III, he commissioners would hold them
~ elves as Superior Court judges, com
81 ceiling the same respect that is paid to
the other courts in the State and put an
end to the suggestion that ~favorlte rail-
roaders can sit Down and talk conf
~. entially to the court while others have 10
~ stand afar off. Let the Commission be
4 court,
81 The proceedings began yesterday morn
# n@. all three Commissioners being pres
IS ,ur. with a hearing Of the exception filed
8 lv the Wilmington and Weldon railroad
81 against the order compelling them to
II rcduce their passenger rates while the
u afher roads equally as able are allowed
q to maintain a high rate. Mr.. Il. .. Bur-
81 he counsel of the Wilmington and Wei
81 dom opened the argument and in sub
wi II pncp said.
d Mr. Chairman and Gentlemen of the
Railroad Commission:
q In the argument Of the exceptions of
the Wilmington and Weldon Railroad
Company. | do not intend to go over TIL"
ground which has been so fully covered
i'm prior discussions of this matter. /
simply desire to present some additional
views which occur to me in the very
brief remarks [ shall make. AS Il basis
/ for them | desire to call your attention to
i am article in Il recent number of the
North American Review. which discusses
Ill States regulating railways in the light
a of the Nebraska decision.
y Mr.. Burton then read the article in
j which the author said that one item III
4 railway accounts was never distruSted
j as having been manipulated, and that
was gross receipts. The author then al
i lotted 20 per cent. for expenses and as
i signed 80 per cent for fixed charges and
l dividends; that it was easy to look at
the returns of all States that kept rail
way statistics and see what rates could
he reduced. The author then gave an
1 Ella borate table showing the gross earn
4 iugS per mile. The table ran
j from $2,S64 per mile in North Caro-
lima Uhe poorest State) which would
4 represent Is per cent. on S14.32O per mile,
to New Jersey. earning $1S,7U per mile
i 80 per cent. being 6 per cent. on 49,
y $50 per mile. The writer then said Il road
Il should earn Il & per cent. dividend on
81 %Z5.0oU a mile. If it did not, it meant
sooner Of later bankruptcy. But the
a court would never permit n reduction
i'll Of rates in Il State where this was earned.
ii Now | do not mean to say that these
remarks are entirely applicable to the
4 Wilmington and Weldon road. The
writer takes an exaggerated view, per
Y maps. Of the amount Of earnings neccS-
Sary 10 keep a road solvent. But they
i Illustrate well and forcibly the situation
here.
Ii Wilmington and Weldon rOad is
managed with admirable economy and
system. When the consensus of railway
opinion IS that it takes 40 per cent of
earnings to operate a road. including
taxes, and the longest road given, the
chicago and Northwestern Railroad,
got ITS mere operating expenses.
exclusive Of taxes, down to CT
per cent. the Wilmington and Weldon
road operated in 1861 for So per cent.
North Carolina in its gross earnings
per mile is the poorest State in the union
III which railway statistics are kept.
Its gross earnings per mile are shown
hT the table to be Only 50 S04 of which
30 per cent. tSSJ9.O0) is only 6 per ent.
ON S14,320 per mile. The Wilmington
and Weldon road operates 52O.S5 miles
outside of the NeWbern branch of & -
miles, acquired by it last fall. If we
exclude this branch. its gross earnings
per mile were only S3.124.OO. But coun-
SCI objects that this includes its branches.
N' IhlJter-ltS branches are now integral
= l''N Oh the road. and must be operated
wv matter at what loss. The abandon
"'H5 81 one of them. without the permits
'i the State. would cause a for
"''" OF its charter. 1t is forced to on
l'''F them all, and all together make I'M
,"' one WhOlc-the Wilmington and VOL
:s" road as authorized by the State. But
" 'i branches except the Wilson branch
'' eliminated and all the gross earninrs
rui to the credit of the main line and
'' NHSon branch. which is practically
part of the main line. the gross eorn-
IIsS are only S6,474.OO per mile: whereas
eur North Carolina railroad earns on its
- miles gross S7.175 per mile. and tho
l'aIfigh and Castor $3.50 per mile.
l desire to place before the Commission
som" calculations. which shed = food
81 HIGHT on this controversy. Bear in
"i!hd that the tax valuation of the VIII
~Iington and Weldon for the year 1897
Vas S3.49S.935. 1t is now increased TO
The cost of the road and
,r~IolprAent. exclusive of the Newbern
branch. is SO 500. 80: with the Nevharn
branch it is &13.199. 13S. The cost Of re-
,r"a'lctlon would he at least 50. GAG O
NY hrst statement is based on the re