The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1899-06-13
THE FERTILIZER RATE.
THE INTERFERENCE OF THE FED>
ERaL COURf.

A Communication from the Wholesale
Merchants of Wilmington Laid Be
fore the Corporation Commission,
Presenting the MIX I'm the
lima Corporation Commission, issued
Circular No. 1, fixing the maximum
rate per ton on fertilizers on all rail-
roads in North Carolina, the minimum
carload being named as ten tons. !
Previous to the issuance of the cir
cular, the Carolina Central branch of
of the Seaboard Air Line changed a
rate on fertilizers to points in this state
about 80 per cent. in excess OF the rate
charged by the Atlantic Coast Line and
h Southern Railway.
On the Tth instant upon complaint Of
Mrs. Virginia B. Matthews, of New
York. who holds s242, 900 of the bonds
OF the Carolina Central, Judge Simon
ton, of the United States Circuit Court,
issued an injunction temporarily re-
straining the Corporation Commission
from enforcing it's order as to fertilizer
rates. In view of this action, a num-
Der of the wholesale merchants of Will
mington on yesterday presented the fol-
lowing communication to the Hon.
Frank Mcneil, chairman of the Cor
poration Commission, who is in the
city, to-wit:
Wilmington, N. c., June 9, 1893.
Hon. Frank Mcneil, Chairman, Raj
eigh, N. c.:
Dear Sir: We were much surprised
to see by the Raleigh dispatches of
yesterday that the Seaboard Air Line
had gone into the federal courts to re-
sist your order reducing fertilizer rates
on the Carolina central division of its
system. If we mistake not, the spirit
o fthe people Of North Carolina as ex-
pressed by the last legislature, is for
the domeStication of all corporations
doing business in this state, and while
we do not think that the sentiment
would, without great provocation, go
to the extremity of ignoring the conf
ty between states which permits the
existence of a foreign corporation with
out dOmestication, lit is, nevertheless.
true, that a sentiment in favor of MAX
ing all business amenable to state
courts undoubtedly obtains, and in our
opinion, very justly so. Your order re-
ducing the rates on the Carolina Cen
trial division of the Seaboard Air Line
system applied to local business only,
and in such a case the state courts nave
undOubted, and in cur humble opinion,
sole jurisdiction, and to take the action
that the Seaboard Air Line has is to
manifest a disposition on the part OF
this system to evade settlement of the
issue according to the wishes and the
interest of the people of this state, and
ITO gain a decision before a foreign tri-
bunal which is anything but Intimately
acquainted with the needs of the stu
alton and the sentiment of the people.
The Seaboard Air Line is the only one
of the defendants that has taken the
matter out Of the hands of the state
authorities, and it is a notorious fact
that portions of the Southern Railway
are much poorer than the Carolina
Central division of the Seaboard Air
Line. We note in the Raleigh report
Of the injunction that the plaintiff is
a Mrs. Matthew'S, of New York., WhO
own a large amount of the first mort
gage bonds of the Carolina Central
Railroad Company, and the presump-
'tion is that she has brought this action
ito protect the interest on her holdings.
We take the liberty ITO suggest hat the
plaintiff would gain some very valu-
able information bearing on the ability
of the Carolina Central Railroad Com
pany to pay dividends if the division
of the revenues of this line was ascer-
tanned, together With the adjustment
of rates by which natural distribution
is diverted 10 the cost OIL the CdfOll!ld
Central division and to the upbuilding
of it's connections of the Seaboard Air
Line system. So far from the effect of
you order being to reduce the revenue
of the Carolina Central division it
would V exactly the opposite effect,
unless a similar reduction from Nor
folk was made, whereby the present
advantage which Norfolk now enjoys
in distributing business Over the Caro-
lima Central division would be pre-
served. In other words, the adjust
ment of rates from Wilmington and
from Norfolk as related to the Carolina
Central division operates to give the
preference Ito Norfolk business, to the
up-building of the lines from Norfolk
to Hamlet, and ITO the very serious d.
munition of revenue of the Carolina
Central division. For illustration, we
mington to Monroe on fertilizers is
$3.50 per ton n from Norfolk to
Monroe $500 per ton, while the mileage
from Wilmington is 163 and that from
Norfolk 325, or practically dobule the
distance from Norfolk as compared
with Wilmington; and on Norfolk
business the Carolina Central division
has a haul OF only SO miles, while from
Wilmington it receives the entire haul
and gets within 20 cents a ton of the
full Norfolk rate. 1t is perfectly obvi-
Gus that if Wilmington were given
a rate based on her relative position
to the Carolina Central territory, SHE
would command all Of this business, in
which event the Carolina Central divis-
ion would show very handsome reve-
nue.; and We beg to suggest for the
consideration of the plaintiff the pos
sibility that the Carolina Central di-
vision is being made a cats paw for
the beneit of other parts of the Sea-
board Air Line system. We submit
that this showing, which can be sup
plemented by similar cases on other
articles of commerce, establishes indis-
putably that the Carolina Central di-
vision is poor by design, and that the
result of Systematically depressing the
value of this road works an injustice
ankle to dependence business interests
and the bondholders.
1t is singular that the Seaboard Air
Line system operates in South Carolina
the Identical rate that your order
makes applicable to the Carolina Cen
tral division, and it seems strange that
the people of South Carolina SHOULD
be allowed to enjoy lower rates than