The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-04-21

233 FAYETTEVILLE STREET.
actual deficit on its operation for 1896
and 1897 of $36,330.32
| The State University Railroad, with
capital stock of $31 300, reports Il de-
felt for 1896 and 1897 of $1,5S4.65.
The Yadkin Valley Railroad Company,
with Il capital stock of $625,O00, and Il
mortgage indebtedness of S6l5,0O0
making total of S1.340,000. reports II
deficit for operation for 1896 and 1885,
of $45,595.93
! The other railroads operated by the
| Southern Railway Company in North
Carolina were acquired by it in 1894.
Some of them had defaulted. Among
them are: The Charlotte. Columbia ana
! Augusta; the Western North Carolina
Railroads the North Western North
| Carolina Railroad; the Oxford and Hem
| derson Railroad: the Oxford and
! Clrksyille Railroad. and others TheS
were properties which the Southern
Railway Company acquired chiefly at
foreclosure sales the object, as Mr..
Spencer says, being to rchabilitate,
financially and physically, properties
which had decaycd in the hands of in
page ).
| The only effect of inducing these rail
roads in the results which Mr.. Spencer
shows forth, is to lower the average
rate of profit. ON the passenger traffic,
and make it appear that the North
Carolina Railroad Company is in the
same condition as the other railroads,
which are being operated by it at Il
;,,v. .;rI1 FTI,n al
, of Mr.. Spencer's argument seems to doc,
| that he thinks he has the right to
| make up out of tae earnings of the
North Carolina Railroad, what, by bad
! Investment or bad management. he
loses elsewhere He shows in his aft
davit that his company, after paying
| fixed charges on all its properties, does
not distribute as much as one per cent
| per annum among its preferred stock
| holders, but fails ITO show why this
should entitle him to collect from the
citizens of North Carolina, rate or
freight and fare sufficient to make Il
Ii PER cent profit on the value of the
property of the North Carolina Rail
road. He compares the railroad traffic
IN North Carolina genaraly with that
of other sections of the country, and
shows that more money is made else
where; but he fails TO show how this
Carolina Railroad. He shows that the
lessons the princely income of the North
gross earnings of the North Carolina
Railroad have been of late years i'm
creased Mt the expense of the West
Point Danville Line. He does not sug-
gest that this diversion of business to
North Carolina was made out of gen
crosby TO the North Carolina Railroad.
or that the fact is at all germane to the
questions under consideration.
Mr.. Spencer seems to think that the
concession which his company makes to
the public in the form of mileage
books, special exclusion fares, ministers
rates and other rates made below traiff,
will encourage trade and travel, but
that the slight concession which the
railroad commission desires TO grant
will have an opposite tendency.
He argues that, as the passenger
movement i'll North Carolina increases,
tae rate win decrease. but may not the
operation lie reversed? May not the
reduction in passenger fares cause Il
larger volume a travel in the populous
country traversed by the North Caro-
lima Railroad? And may not the loss
from domestic fares be more than Off
set by the increase of travel and the
adjustment of free passes! is not the
experiment worth the trial? Certainly
the old rates can be restricted If after
Il fair test it shall be deemed advisableE
The unsigned statement which has
been filed with the commissioners Us
not calculated to throw any light upon
the subject of inquiry. 1t purports to-
show the income of the Southern Rail
4r,t a in, Mouth, a t1l.OIin1 nil
of its lines, for Interstate passengers
during the year ending june 30. 1897,
and the expenses of operation chargeable
against earnings, including taxes, by
which a deficit OF $23,371 is figured out.
There are two criticisms to be made
of it. First-ft is bur an estimate.
There are no means of accurately divid-
ing the expense between foreign ana
| passenger traffic. And after this Is
done, it is quite as difficult to determine
how much was spent i'll through pas
Scnger service This arises from the
fact that there are so many expenses
which cannot be kept separate. sec
ond--if the estimate were at all rellabie'
IT would not assist in solving the ques"
tlon whether the North Carolina INall-
road can stand a reduction of passenger
rates, because it is idle to compare enc
condition of the North Carolina Railroad
with that of other roads which are IN
Guided i'm this estimate. and when are
being operated at loss. NO one con- /
sidered for a moment the immense iiet
revenue received by the North Carollna
Railroad, can be made to believe lhat
none of it comes from the trenehuG ;s
local travel which daily fills hts Trans
to Overlooking. -. ~
1t is respectfully submitted tnat t the
reports which have been tiled :, " ';,ut ea'
Atlantic and North Carolina h e;"L
Al. A CaulO1isSI0U liISli