The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-06-29

ensome or unjust on the people
Col. Elliott was listened to with the
closest attention, and was congratulated
for his very able speech by the members
of the legal fraternity. Col. Elliott is
a pleasing and engaging speaker, and
never fails to get the attention of his
hearers.
COL. HINSDALE'S SPEECH.
Col. Jno w. Hinsdale, counsel for the
Governor, spoke as follows:
There is Il popular demand for the re-
ducton of passenger rates on the rail
roads. The conventions of two political
parties in North Carolina have already
spoken. But we ask it, not because it is
popular, but because it il right.
The Interstate Commerce Commission
have declared their inability to remedy
the evil of illegal or eXtortionate eXac-
tions by railroads, in the shape of eXor-
bitant rates of freight and fare. The
only resort which the people of North
Carolina have is to the Railroad Com
mission. This body derives its authority
directly from the Legislature. The right
of the State to regulate the freights of
and fares of Il coUmon carrier, char
fered by the Legislature with the power
OF eminent domain, has never been dis
puted.
The railroad companies contend that
the matter is Ees adjudicata, because the
Commission declined to reduce rates last
January. But the case then presented
was very different from the present one.
Then the proposition was to reduce on Il
large number of railroads, some of whom
are weak and unable perhaps to stand
it. The proposition now is to reduce
passenger rates of the Wilmington and
Weldon Railroad. the strongest and rich
est and most prosperous railroad COM
pany in North Carolina.
The Nebraska decision does mot pre-
vent the Commission from reducing pas
senger rates in proper case. In that
case. the Legislature of Nebraska under
took to reduce the freight rates of all
the railroads in the State 30 per cent,
and rendered it impossible for them 10
make any profit whatever upon their
Interstate or domestic business. The
Supreme court said this was unconstitu-
tonal. We do not question it: but we in
sist that the Railroad Commission has
the right to reduce passenger fares, pro
vided the company is still permitted to
make n reasonable profit on its domestic
freight and passenger business. together
that reasonable profit or percentage be-
ing calcula ted upon the portion of the
total value Of the railroads. property.
which the domestic receipts or volume
Of business bear to the total receipts or
total volume of business. IL this be not
So then the Nebraska decision destroys
one of the most Statutory powers of a
Railroad Commission, and does a great
wrong to the people. This feature or
particular point was not presented to
the Supreme court i'll the Nebraska case
because it did not arise.
The counsel for the railroad company
says that the company has been uni
formly losing money on its passenger
business. 1t is incredible that with a
gross income of S590000 from passenger
business in 1867, and of 100000 from
passenger business i'll 1878, that DO
profit should have been made.
Col. Hinsdale here presented detailed
calculation of the receipts and dsburse-
ments and earnings of the Wilmington
and Weldon Railroad, showing the pro-
portion of intrastate express. mail and
miscellaneous matter, the intra- freight
receipts, the amount of reduction caused
by the reduction of rates, the gross re-
ceipts from intra-state passenger SER
vice. etc., etc. The statement in a very
exhaustive one. one which required a
great deal of time and study to prepare
Col Hnsdale filed same with the Com
mission.
TIE Wilmington and Weldon Railroad
will not feel the insignificant reduction
which is asked. The gross earnings Of
TINS road in 1867 were about $3.50 900.
1t has steadily and surely increased each
year until it has now run over two mil
lions. 1t has made so much money in
the past, that six years ago it distributed
$4,000 of its stock investments
among its stockholders, and in 1887 it
issued $2.5O0000 of certificates of in
debtedness to its stockholders, represent
ing its accumulated profits. The amount
of the reduction now asked for will not
exceed $4,000, a mere bagatelle!
III the Commission sides with the rail
roads, that is the end of it. The peo-
pies cause is lost. But if the rule rates
are reduced. the railroads will appeal,
and the simple filing of bond will stop
the execution of the order until it shall
receive the sanction of the court.
The question is whether the railroads
ject TO a reasonable control?
Col. hlnsdale was highly compliment
ed by Col. Elliott for the able and inn
partial manner in which he handled the
ease.
This closed this case. The Commits
sion has reserved its decision. which is
expected to be announced to-day.
THE S. A. L. WANTS A HEARING.
Judge Watts, counsel for the Sea-
board Air Line, said that they had Ia
bored under misrepresentation III regard
to the case against them and ask that Il
day be set by the Commission for hear
ing so that they can file petition.
Chairman Caldwell replied that a copy
of the notice had been served on each
road. That Mr.. III. W. Il. Glover filed
an answer and made an argument before
the Board, that this case was being pro-
longed beyond endurance. Judge Nc
Rae said they ought to be heard that
they had never had an opportunity to
be heard, and asked to be allowed to file
an amendment to the answer already
filed. Haven't shown any figures and
want to make the action more formal.
Col. Hinsdale replied that the ease
had had its day in court. That the prin-
ciples were the same as the other roads
,,, hot s.R fIta Il,