The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-06-11

Commission that it is estopped in this
matter by reason of previous decisions on
| this question, that you cannot sit to-
gether, hear these facts and act upon
them because of some former decision
| in some similar case. This proposition
| is an entirely different one from any that
has hitherto been presented for the con
sideratiOn of the Commission. You have
| it is true, considered n proposition ask
| ing you to reduce passenger rates on n
large number of railroads i'll North Caro-
lima, some paying large profits, others
paying but little and perhaps others OPP
perating without profit and | am not
prepared to say here that if that same
proposition had been presented to me, |
would not have done as this Commission
did.
But the proposition now is to Rduce
rates on three railroads that we claim
can stand that reduction and still make
reasonable profit on their valuation. "
II have too much respect for the Com
mission to suggest that no bias, no politi-
cal or other feeling should enter into
their deliberations you know how to sit in
Judgment and be fair to every interest
without any suggestion from me or any
| body else.
Col. Hinsdale then briefly took
mp the Nebraska decision, and said
! that he did not believe that that de-
| cision was ever intended to take away
| the power of the Railroad Commission
to regulate rates and fares and turn the
matter over to the Interstate Commits
sion which had dsclaimed any right on
| its part to regulate these matters.
According to my view of the Ne
| braska Decision, the Supreme court
merely says that the Nebraska Railroad
Commission had no right to reduce rail
road rates to point so low that no profit
would be left to the companies operating
| them.
| 1t is for the Commission to ascertain
the amount that the proposed reduction
will strike off the profits of the railroad
company derived from its Intra-Statp
| business, aud if that reduction does not
strike off so much as to leave no fair
return to the railroad company when
| taken in connection with its Interstate
profits then it is the duty of the Rail
road Commission to make the reduction"
Whether the Southern has paid one
per cent or no per cent on its preferred
stock or its common stock has nothing
to do with this matter.
you are dealing with the
| North Carolina Railroad, n distinct
| chartered organization operated un-
| der its own charter by the Southern
| Railroad Company. Any other lines Of
the Southern has nothing to do with it,
whether they are operated ut a loss or
profit nor has the question of rental
anything to do with this case. The North
Carolina Railroad might have been so
well conceived and managed as to have
1 ca,f Int anulI M Il.
| the law allowing only reasonable profit
| by leasing it to the Southern at % per
cent.
'The Southern took the road with a full
| knowledge Of this law and the power
of the law given to the Commission to
regulate its fares. This Commissions
hands could not be tied with a lease. If
| the Southern pays too much that is their
| business"
Col. Henderson, "Do you represent
Your client when you intimate that the
| Southern is paying too much for the
North Carolina RairoadY'
Il am arguing this case on what
conceive to be the law and the facts
representing my views Of the law and
the facts and am not mtimating any
thing"
ton Of local traffic, the total receipts
from the same, and the ratio of operating
expenses that should be charged to local
traffic and exhibited schedule of fig
ures showing that according to his fig
ures which had been carefully complied
there was a difference of So, $1,000 in
the net earnings of the North Carolina
Railroad from local passenger traffic and
the figures filed before the Commission
by the Southern Railway. From these
statistics and calculations he declared
that the reduction proposed could be
made and still leave per cent OF Eroilt
which he claims was even more than
fair profit according to interpretings in
court decisions.
My friend claims that they are not
paying / per cent ON the stock of the
Southern Railway. | can't hold that. The
fact still remains that they are making
13 4-10's per cent on the North Carolina
Railroad.
Col Hinsdale then spoke of the tax
valuation, the original cost of the road
and estimates of what it would take to
construct the road to-day, saying that
according to statement Of the officers Of
the Southern Railway Co, it could
be built now % per cent less than when
it was built, except for rights of way
and terminals" He spoke at some
length on questions of mileage earnings,
showing that the North Carolina Rail
road passenger trains mileage earnings
was higher than the Raleigh and Gas
ton or the Wilmington and Weldon. The
relative earnings being 125 North Caro-
lima, % Raleigh and CASTOR and 81
Wilmington and Weldon.
He spoke of the objection raised to
making a test case. lie wanted the
question of a Commissions right to iiX
rates defined if there was any question
about it as was claimed since the Nebras-
ka case, but this question was to be
considered not on the question Of test
case alone but upon its merits and if the
Commission could see good reasons for
reducing the rates it would be per
fectly proper for it to do so. Col. Hins-
dale spoke for about one and half
hours and was listened to attentiyely by
each member of the Commission and