The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-03-16

answer for the Southern Railway. he
called attention to the force OF tle eA-
istanca of the road upon the develop
mant of the State, and sand he dldh
| tbinl, the point had yet been reacheu
whom tho neople of the South, ana Oh
North Carolina especially, coulu aliolu
TO disregard the interest ana WeipuLe VI
| IFS TRANSFORMATION lines. 10 cTIppIe tneiii'
he said meant to cripple the 'opfite III "S
| Growth and industrial development.
The income of the Southern haii"ay
| in North Carolina from lntra-State OF
| local passengers during tne year enue'l
I,,na 20 1897. Mr.. Finley said, was
$3.50 70 expenses of operation cnarge-
able against such earnings, Noo-,ooi )
making a deficit of S22,311. Add to TINS
! S137. 6G1, the proportion OF interest ana
rentals properly chargeablc to lntra-State
passenger traffic and the deficit becomes
S119,9TS.
,1tnder the rates recently Gromul-
gated by the Commission, whereby hrS'-
class local fares are reduced to Il rate OF
~, cents per mile. and Second-claNS Il"
cal fares to cents per mile, the annual
earnings from intra-State passengers
unon the Southern Railway lines inNorth
Carolina would be reduced, approximate
", as follows: North Carolina Railroad,
S63O16: Western North Carolina Rail
road. sd .2T6; Atlantic. Tennessee and
Ohio, AGES: Piedmont, $I,6lT; Atlanta
and Charlotte, S6,664; Charlotte, Co
lumbia and Augusta, $l,0Sb. North
western North Carolina. S6.223; making
= total reduction of Sl1O,5O0.
1T, therefore, the reduced rates had
been in effect during the year ended
June 80, 1897. the deficiency in income
from local passenger business would
have been increased from $119,9IS to
$500. ATS"
Statements were ALSO read showing the
number of local passengers carried over
the lines of the Southern Railway in
North Carolina, the number of miles
carried and the average distance trav-
eled by each passenger and the operating
expenses and taxes chargeable.
This completed the hearing of formal
answers and the Commission took a re-
cess until 2:30 O'Clock. when they met
again to hear argument by counsel.
Col. Henderson, for the Southern, was
the first speaker. He said the issue be-
fore the Commission was just this: 1t
is alleged that the passenger rates on
railroads in North Carolina are too high,
and they have been reduced several
hundred thousand of dollars. The rail-
roads deny that they are too high, and
allege that they are not now making a
profit. but are trusting to future develop
nlent of the country for remuneration.
The courts, he said, had decided that
the railroads were entitled to a reason
able compensation on their stock after
the operating expenses are paid. He, like
Judge Watts, knew nothing of any
United States Supreme court decision
declaring per cent. a sufficient return
on the capital invested.
after reading the case above cited
for Judge Watts consideration, suppose
Col. Henderson read Chicago VS.. WE'LL
man, 143 U. s., 339)
Col. Henderson argued ehat under
Justice Harlans recent decision OF the
Nebraska case the Commission has no
right to take certain divisions of sys-
tenn and make rates thereon the system
must be dealt with as a whole; and on
this whole a reasonable return on the
capitai invested must be allowed.
Each State must stand on its own
business. Profits in other States cannot
losses in other States be Offset by high
rates in other States. A reduction
means this: To say to the railroads your
service is now too comfortable, your
trains are now running too fast, your
bridges are too safe, your wages are
too high. If we accept the reduction 1T
means these things. We must give a
less efficient service, reduce wages OF
%1,avs xxFnx
.Nho asks this reduction? A newspa-
per editor who says the Southern IS max
ing 4 per cent profit. What does he
know about it? Nothing. VIII he be
satisfied if you make the cut? No. It's
like feeding a tiger on raw meat. 1t
only whets his appetite for more. He'll
babble for another and greater reduc-
ton soon. What do the people know
about rates? 1t is said they demand a
reduction. Why certainly. OF course
they want it; but they know absolutely
nothing about the question. You, though,
are court, judges sworn"
Col. Henderson and Judge Watts hav-
ing set the pace by attacking the News
and Observer and pretending an ignor-
ance of the law of which they We're real
ly not guilty, the smaller fry, Day and
Busbee, thought they must follow suit.
They went the Colonel and the Judge
several better in their abuse of the News
and Observer for daring to suggest that
rates might be too high; and then had
the advantage of real ignorance of the
decisions which they denied existed save
in the imagination of an editor.
What Capt Day lacked in quality Of
| oratory he made up in quantity, speaking
as if he were addressing a deaf and
dumb asylum. His discourse is said to
have interrupted the deliberations of the
Supreme court half a block away and
to have caused Jim Young to crawl
| down off the State manure pile, fearing
an earthquake.
1t was one of the efforts of the Cap
tain's life. The general officers of his
road We're present. He was training his
heavy guns upon us.
The history of North Carolina is the
history of railroad development" was
the ponderous way he began. Where
they go there is prosperity; where they
do NOT fhara 70 on 4ioy aDd bo -.