The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-02-22
REDUCTION or PASSENGER RATES.

proved, as has also the order reducing
the rates ON fertilizers.
The action yesterday reducing pas
senser rates, applying equally to the
three great systems in the State, is i'll
lire with the other two actions, and will
also te commended by the people. We
will hear that the reduction will bank
rupt the roads and will drive capital out
of the State. If there is good grounds
for such suggestion, the reduction ought
not to be made. At the hearing to be
had the facts ought all to be obtained,
end if the reduction would deny fair
dividend to the owners of the roads,
the Commission ought to change the
rates established yesterday. But, in or
der TO get at the bottom facts, the re-
ports made by the railroads when they
are floating bonds ought to be compared
with the reports they make when resist
ing a reduction of rates.
Under the operations of the gold
standard the prices of all products have
been greatly reduced; rents and salaries
have gone down. and almost all other
business has been forced to accept less
profits than heretofore. Only railroad,
telegraph and telephone rates, taxes, in
Surance and few other like fixed
charges remain at the old prices that
prevailed before all coinage of silver was
stopped. There is no good reason why
these companies should be permitted to
keep up rates, because they are in the
nature of monopoles, when reductions
have been made III all competitive lines
the reduced rates will give moderate
dividend on the value of the roads. 1t
ought to be comparatively an easy mat
ter for the Commissioners to ascertain
the bottom facts. The secretary of the
Commission, Mr.. II. c. Brown, is an ex-
pert. and could examine the reports and
give expert information for their guid-
ancc.
The Commission ought to bear in mind
that while they have the power to fix
rates. that power Is subject to the limi-
tatien that the rates fixed must not de-
ny dividends upon the value of the road.
There is no question, with this limita-
ton. of tneir right to regulate charges.
The two latest cases in the United
States courts follow the decisions on
this subject by the Supreme courts of
Minnesota and California, which Were
lately quoted by the News and Observer.
In Getting vs.. Kansas City Stock Yards
Company, it was decided by United
States District Judge Foster, October
4. 1897. and affirmed on appeal Il few
days later, in the United States Circuit
court by Judge Thdyer, 49, Fed. Rep.
$50 and $50 that the right Of the public
to regulate rates was not restricted to
| common carriers, but extended to all
businesses affected with a public use,
| in that case a Stock Yards Company.
maximum charge, which would only
produce ) 1-3 per cent. annually on the
actual value of the property used, OIL
! AZ per cent. on the capitalization can
not be enterferad with by the courts
| though it reduces the previous net in
come 80 per cent. that the true basis OF
! calculation is not the amount of capital
stock issued, nor the selling price OF
! same (which might have been inflated
by excessive charges), nor thc cost OF
the property as it may have deprecated
but the present actual value of the prop.
erty.
The News and Observer has long
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