The Caucasian. (Clinton, N.C.) 188?-1913, 1898-06-16
ANOTHER EFFORT
TO REDUCE RATES.
Governor Russell Files Complaint
With the Railroad Commits
sion-Shows That a
REDUCTION NOT INJURIOUS

To the KaiIroads- Figure, Based
Upon the Commissions Report Which
su,tains the Argument for Reducing
Passenger fares-No Decision get
Reached by the Commission.
The question OF railroad rates con-
tinues to be one Of much interest before
the people, and a contest is now on
before the Railroad Commission which
partakes more of the nature of q fight
than any heretofore had. On several
occasions the railroads have been sum-
mOned before the Commission to show
why there should not be q reduction of
rates. On these occasions, the railroad
companies, through their numerous,
highly paid and able attorneys have
come forward and made show of facts
and figures, which in some way, in
spired a "hesitation" on the part OF the
Railroad issiOners to act. These
railroad attorneys are able, braIny men.
There are numbers of them, and each
one Of them is paid about as much by
the railroads as the reopie pay ALL
THREE or THEIR COMMISSIONERS; and
these able attorneys can make up fig
ures which show that the railroads are
grand, patriotic corporations that are
running railroad trains at a DEAD FL
NANCIAL loss, and are running them in
the interest of and for the benefit of
the people. Such magnificent show
ings as these have always "dazed" the
Commissioners. They had no evidence
to show that the "facts" set forth by the
railroads were not true. Recently Gov.
Russell, on behalf Of the people of the
State, made a complaint before the
Commission in the matter of railroad
rates. Copies of that complaint were
sent to the railroads, and they were
summoned to appear before the Com
mission to answer the same on June
Sth.
The following is an extract vf the
complaint against the Raleigh and
CASTOR Railroad Company:
"What railroad should be selected
for the test case?
l. They should be situated entirely
within the State.
2. They should be located within
the most pOpulous and productive
counties of the State, enjoying the
largest domestic or local travel.
3. They should be those having the
largest income in proportion to their
value.
The Raleigh and CASTOR Railroad
Company meets all of these require
ments, and presents favorable sub
ject for one of the test cases.
According to its report of 1897, filed
with the Railroad Commission, this
company, with an assessed valuation
for taxation of 1885,, $3.50
Which the company claims
was excessive, received
gross earnings from op-
erations for 1S96-'97, the
sum of 5 CO., ,3O4 %
Deduct operating expenses $ 3S2 2,279.73
Total 5 22O,O24 &c
Deduct taxes 5 l3,62662
And we have remaining
net income or profit from
operating expenses, of 5 206, ,397. rs
This is 1926 per cent. on 81, ,562, 1853 80
the assessed valuation of it's property
1t is 1876 per cent. on $1,5O0,OOO, the
amount of its capital stock. 1t is .129S
per cent, on 1,5S9,3 ,3O7, the total cost
of road, equipment and permanent i'm.
provement to June 80, 1897, as report.
ed by the company. See Railroad Com.
mission report for 1897, page 16S.
In the absence of more satisfactory
information, we will assume that this
sum, $2O6, ,397.7S net profit, was derived
from passenger and other receipts, in
the proportion which receipts bear tt
each other. According to the com.
pany's reports, as appears in the
seventh annual report of Railroad
Commission, for 1897, at page 1859.
The total passenger reve-
nue. was $1ls,375.7;
The total amount of other
earnings was 4S3, 3,92S.5(