The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-06-17

resist your order reducing fertilizer
rates on the Carolina Central division
of its system.
If we mistake not, the spirit of the
people of North Carolina. rs expressed
by the last Legislature, is for the do
mestication of all corporations doing
business in this State. and while we do
net think that the sentiment would.
without great rrovocation. go to the eX-
trenity Of ignoring the comfy between
States which permits the existence OF a
foreign corporation without domeStica-
ton. it is nevertheless true that a senti-
mant in favor Of making all business
amenable to State courts undoubtedly
obtains. and in cur opinion. very justly
so. Your order reducing the rates On
the Carolina Central division of the $.
A. l.. system applied to local business
only. and in such Il ease the State courts
have undouhted. and in our humble
or:nion. sole jurisdiction. and to take
the action that the :. a. l.. has. is 10
manifest a disposition on the part of this
system TO evade settlement of the issue
according to the wishes and the inter
est Of the people of this State. and To
gain decision before Il foreign tribunal
which is anything hut intimately ac-
quaiEted with the needs of the situation
and the sentiment of the people. The
s. A. l.. is the only OEa of the defend
ants that has taken the matter olI Of
the hands of the State authorities. and
it is Il notorious fact that portions of the
Southern Railway are much poorer than
the G. G. division Of the =. A. L.
We ncte in the Raleigh report of the
injunction that the plaintiff is Il Mrs.
Matthews of New York. who owns
large amount of the first mortgage bonds
of the Carolina Central Railroad Com
rany and the presumption is that she
has brought this action to protect the
interest on her holdings. We take
the liberty 10 suggest thar the plaintiff
would gain some very valuable informa-
ton hearing on the ability or the Caro-
lima Central Railroad Company TO pay
dividends if the division of the revenues
OF this lime was ascertained together
with the adjustment Of rates. by which
natural distribution is diverted to the
cost Of the c. G. division and to the
upbuilt,ing Of rs cnn2acicns Of the
s. \. l.. system. So far from the ef-
feet Of your order heing to reduce the
revenue of the c. c. division il woald
have exactly the opposite effect. unless
a similar reduction from Norfoll, was
made. whereby the present advantage
which Norfolk now enjoys in diStribu-
ting business over the E. &. division
would be preserved.
In other words. the adjustment of
rates from Wilmington and from Nor
folk as related to the G.. G. division
operates to give the preference To Nor
folk business. To the upbuiding Of the
lines from Norfolk to Hamlet. and to
the very serious diminution OF revenue
on the &. G.. division. For illustration.
we leg to note that the rate from
Wilmington to Monroe on fertilizers is
$3.50 per ton and from Norfolk to Mon
roe $500 per tom. While the mileage
from Wilmington is 16:, and that from
Norfolk 80. or practically double the
distance from Norfolk as compared with
Wilmington: and On Norfolk business
the c. c. division has haul of only
l3 miles while from Wilmington it re-
ceives the entire haul and gets within 20
cents a ton of the full Norfolk rate.
1t is perfectly obvious tnat if Whining
ton were given a rate based on her rea-
would command all of this business.
in which event the G.. c. division would
show very handsome revenue: and we
beg 10 suggest for the consideration
of the plaintiff the possibility that the
G. c. division is being made a cats paw
for the benefit of other parts of the
;. \. l.. system. We submit that this
showing. which can be supplemented by
similar cases on ether articles of COM
| nleree. establishes ndisputably that the
G. c. division is POOR by design. and
that the result of Systematically de
pressing the value Of this road works
an injustice alike to dependent business
interests and the bondholders.
1t is singular that the s. A. l.. system
operates in South Carolina the identical
rate that your order makes applicable
to the c. c. division. and It seems
strange that the people of South Caro-
lina should be allowed to enjoy lower
rates than the people of North Carolina
over the same railroad system and under
practically the same conditions: and
further that the business interests OF
Norfolk should be conserved to the ex-
tent that the Seaboard system Is willing
y
one-half of the cost it exacts on Viii
mington business. We believe that
your order making this reduction would
be of the NEST valuable assistance both
to Wilmington and Charlotte in their
efforts 10 distribute business. and of
| equal justice and advantage to local
points.
| The action Of the s. a. l.. Is open
TO the construction Of Il desire and pur-
pose to not only discredit the Corporation
| Commission hut to destroy 1t. and il be-
| hooves the business interests Of the
State ut large to support svur commits
sion iii this issue by every pnssible
means. As your honorable body no
doubt knows, this method of adjustment
Of rates to the {. &. points is but on
Il par with the basis of making western
rates, whereby Virginia cities are built
up ut the cost of Wilmington, and this
whole matter is predicated on the most
utter disregard for equities and consid-
Grafton due TO the people of Wilmington.