The times. [volume] (Richmond, Va.) 1890-1903, 1898-02-26
ARAuRoAD's PLAIN STATEMENT.

1t was announced i'm our news columns
Yesterday that the Southern Railway
Company has ended for the time the ne
eotiations for the lease of the Atlantic
and North Carolina railroad from the
state of North Carolina, the reason being
that the Railroad Commission in that
state has recently arbitrarily reduced
passenger rates. We are not surprised
that the Southern Railway Company is
not disposed TO enlarge It's business in
North Carolina under an enforced reduc-
ton Of rates. If We accept a statement
which the company has recently made in
this connection.
The company having been cited TO show
cause why the fares for the transporta-
ton Of passengers should not be lowered
made reply al length and in detail which
bears tho impress of sincerity and
truthfulness After referring 20 the rcOr-
ganization of the company in 1894 by
which the bonded Indebtedness Of the
company's lines was reduced by nearly
$iOO00OO0. President Spencer goes on 90
say that the gross earnings Ia 1897 were
81 10000 less than in 1891, decrease OF
II per cent. and that for the last Two
years the net proht.of the company, not
withstandng the large reductions in in
terest charges has averaged 'cg. than
1 per cent. per aunum upon the s5i5OO,O0O
of preferred stock, which represents cash
invested in the propeprt.
As is we'll known. the Southern Rail-
road Company runs through several
States of the Union. and the statement
i'm hand shows that the southern's gross
earnings per mile of line in North Caro-
lima were 10 per cent. less than the aver
age gross earnings per mile of line OF the
remainder of the southern railway sys-
tenn. ano II per cent less than the aver
age gross earnings per mile Of the lines
Of all railroads in the State.
The statement shows also that within
the past I'VE years there has been a very
large reduction in rates generally
throughout the state Of North Carolina.
earnings of North Carolina, dhis by the
way Is a matter OF interest TO Richmond)
due largely TO the opening of the Norfolk
terminals and the transfer To the line
east Of Greensboro Of through traffic such
as was previously handled from West
Point TO Danville over the Virginia line
OF the company. What was gained to the
North Carolina lines. says the report, was
lost to the Virginia lines. as shown by
the following statement:
Gross earnings OF Greensboro
Goldsboro line in lS95............s 3T,6s5
Gross earnings OF Greensboro
Norfolk line portion in
North Carolina only in ISL. H0s2, AS
Increase. ACKNOWLEDGEMENTS. sIo4. $50
Gross earnings OF the West
POint-Danyiie line in lS5.... 81, 400 68
Gross earnings OF the West
POlnt-Danyille line in lS3l...... 6jS,2H
Decrease. 1Ss7..".............. si5l,SS2
II Is also shown that there has been
q decided Improvement in the physical
condition Of the lines in North Carolina
and also OF the passenger service since
the year 1896 In that year the number
OF miles run by all passenger trsins was
1.ce5 40S. while In 1881 it was i,42e,lss but
the average passenger earnings per train
mile which in 1895 were s2.5c, in 1891 were
only 7iie, q decrease OF l5c. per train
mile.
Another most interesting fact is that
the local trains OF the Southern in North
Carolina have been run at a considerable
loss to the company. the actual cost OF
operating sucn trains being from co to