The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-06-29
Mr.. ELLl0TTS ABLE TALK
COL. HINSDALE MAKES !
LENGTHY ARGUMENT IN
FAVOR OF REDUCTION.
SEAB0ARD WANTS A HEARING
Will be Decided To-Day Citizens of Mt.
Airy Want an Uptown Telegraph Office
--0ther Business Transacted.

--Utner BUSINESS TRANSACTED.
The North Carolina railroad commits
sion met in their rooms in the Agricul-
ture building yesterday morning ut ~
O'clock All the members were present,
Among others present were Judge
Watts, general counsel for the Seaboard
Air Line; Col. w. A. Henderson. gen
eral counsel of the Southern: Messrs.
w. W. Finley, I'll. w. Il. Glover, c. A.
Cook, Warren G. Elliott, ]. w. Fry, w.
f. Kyle, Charles Price V. T.. McBee.
Fl. NJ. Emmerson, W. A. Riach. The
case of Daniel l.. Russell VS.. the Will
mington and Weldon railroad, in the
matter of reduction in passenger rates,
which was continued from the last meet
ing, was taken up. Mr.. w. a. Riach,
General Auditor of the Wilmington and
Weldon railroad, who was on the stand
when the case was abruptly closed at
the last meeting. was recalled. He gave
general history of the bonded indebted
ness of the railroad; how the bonds
came to be issued and how disposed of.
The road now has $362,000 of general
first mortgage bonds, which was issued
for construction and equipment pur-
poses. Some of the bonds were issued to
refund old bonds issued prior to the
war. The report of the net earnings of
the Wilmington and Weldon railway
was filed with the commission as re-
quired.
Col John w. Hinsdale, stated that
the contentious of the Governor, after
which Mr. II. o. Burton, counsel for
the Wilmington and Weldon railway,
opened the argument for the defendant
Mr.. Burton said he proposed to show
the fallacies of some of the contentious
that were presented by the Governor.
1t has never entered into the head of
the great lawyers that wrote the Ne
braska decision that you must look after
Your domestic business with out regard
to outside business. You cant divide
it, There is nothing new in this case
since the commission refused to reduce
rates before. There are no new de-
velopments The interest is accounted
for in the fact that since the report
was filed, the road has acquired some in
crease in rates and earnings. You have
taken three of the best months in the
year from which to get your report. Fill
up the calculations and ii will show you
that the net profit in nltraState bust
ness, and the amount expended in con
struction of the road. will only show a
net profit Of l $40 per cent. One and
one-tenth per cent. is cost of construc-
ton. The net profit on the tax valuation
would be $40 per cent. In the argu-
ment of the Nebraska case the question
OF separation did not arise, nobody
thought of any contention, and it was
not developed by counsel. The reduc-
ton asked for will make the passenger
trains operate at a loss. There are
now only two trains of the system max
ing anything
MIR. Burton's speech was clear cut,
short and to the point, and was listen
ed to with marked attention.
PRESIDENT ELLIOTT SPEAKS.
Col. Warren G.. Elliott President of
the Wilmington and Weldon railroad
was the next speaker. Colonel Elliott
himself is an able lawyer, as well as q
firstclass railroad man. | regret very
much that | haven't a fuller report Of
his speech, which is said by competent
critics to have been one of the best
ever delivered before the Commission
Among other things, Mr.. Elliott said
I'VE are content to rely upon our an
swer filed in the case as setting forth
the facts and upon the testimony pre-
sented' which is undisputed. The facts
set forth are from the books of the
company, where every one who has any
rights in the case has access to them
The Wilmington and Weldon railroad il
not earning reasonable profit from its
passenger business. We have in support
of this claim the general auditor here
and figures and books to show for them
selves. When our report came in it was
made before the Nebraska decision. The
movement for reduction of passenger
rates does not represent the people OF
North Carolina. The railroads are the
advance guard of enlghtment, develop,
ment and civilization. They even act rs
missionaries, for no sooner do we estab-
lsh depot at point before applica-
ton is made for land on which to build
a church and school house. The com.
plainant asks you to reverse your form
err decision in order that the case may
go to the Supreme court for Il decision
That this is not Il parallel ease with the
Nebraska decision, but has new features
Why do they assume that the railroads
will appeal? The railroads have 4
right to get fair and reasonable return
| can get outside business, over which
| have no control, and which the com
mission has no right to consider.
have brought a true, complete and &C
curate account of all business done il
the State, after deducting ultra from
intra- State business, the interest ther
remains ! 621OO per cent. on three mil
lion dollars capital. In our reports WI
did not include any interest on indebted
ness Our transactions are always opef
to the scrutiny of the public, and il
you were to apply the entire State earn
ings, it would not pay onefourth the
interests Of the Indebtedness of The
system. In closing, Col. Elliott salt
that the Wilmington and Weldon rail
way is ready ut all times to uphold The
Railroad Commission and the State o
North Carolina TO bring about equal re
lations with the public. We would have
been willing to adjust this matter b!
compromise, and we want it under