The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-07-13

Carolina and Northern, IN ultra wires
venture, was not Il valid reason for not
reducing passenger rates ON the pront-
able domestic line. The Supreme Court
i'm tile Nebraska decision has declared
that interest on bonded indebtedness Is
not to be considered in regard to re-
duction of rates The road might issue
bonds to an amount above the value of
its property and require the travelling
public to pay the interest on the indebt-
edness if such were the case.
Colonel Hnsdnle declared that the
only question to he considered was
whether the net earnings were n fair
profit on the true value of the road as
decided by the Supreme Court.
The sworn statement of the Raleigh
and CASTOR railway is that its mortgage
bonds to the amount Of 81 100000 were
used in the construction and improve
ment of its lines. In 1897 its bonded in
debtedness was increased from 81 .O00,-
600 to S1,200.000 to enable it to pur-
chase S191 .0I0 of stock in the Seaboard
and Roanoke railway. This use of the
money was contrary to the charter
None of the 81 ,200,0OO was used in con
structon since the road was completed
in 1850 while the debt was incurred in
1873. The money was used to buy Il
controlling interest in other roads.
Colonel Ilinsdale then showed by a
calculation based upon figures furnished
ny the Raleigh and CASTOR Railway
Company. that the amount involved in
the proposed reduction was only about
$1,000. Il mere bagatelle in comparison
with the princey net income OF 500
O2140. and that after this reduction the
company would still make upon its
mira state or domestic business Il prifit
of from : to 10 per cent. He said fur
Their that the Raleigh and Castor Rail-
way Company. had, of its own accord,
issued 1000 mile irst-cass tickets at >
cents per mile. II voluntary reduction on
it's part of 3Sl@ per cent. If the railroad
company can make money ut = cents per
mile it can do SO ut 2l., 1.-The rate which
we ask that they shall be required to
transport tirst-ciass passengers.
Colonel Hinsdale quoted from Cowles,
freight and Passenger Post, rs fol-
lows:
In thinly settled Russia. under the
new tariff of December, 1894. the third
class fare for short distance. .666 Of Il
mile to 1868 miles. of but little over ::
cents n mile, and for longer distances
the fares are still lower. \ passenger
can travel LOG miles for 81 cents, and
AGA miles. or farther than from New
York to Buffalo, for S23o. For trip
of $3.50 miles, the fare is but S5.95. The
average rate for all classes in Russia is
1.45 cents mile. The United States
consul at ST. Petersburg says, that if
travel increases as it has increased under
previous reduction of fares. there is
every reason to believe that these low
rates will not only be great benefit TO
the Russia people. but will also prove
profitable to the railroads.
1t has been the invariahle experience
of railroads that reduction of rates has
been followed by an increase of business.
In conclusion Colonel Hnsdale said:
Il am proud Of the history OF the
Raleigh and CASTOR Railroad Company.
1t has gradually increased its gross re-
ceipts from S261 ,141 in 1897 to S602.304
in 1897 and its net income has gradually
increased from sos. 100 in 1897 to S227.-
61S in 1898. Its management has been
simply superb. This road should be Sc
lected for one of the fest cases because
Of its wonderful prosperity"
Judge Watts will make the closing ar
gument for the Seaboard when the
commission resumes its sitting ut 8
O'Clock this morning.