The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-02-18

! decided, as n test one, to determine just
what quantum of power the Railroad
or Corporation Commission of the State
is to have in this matter of fixing rates.
This case is, therefore, one of the most
important ones that has ever been tried.
The question involved in it is the burn
ing one of the hour. to w.t. whether the
Commission representing the State is the
ruler of the railroads, or whether the
railroads are beyond the reach of the
States power in the mattcr of the
! amount of rates to be charged"
Touching the branch of the case af-
fecting the telegraph company Col. H'ns-
dale said:
The Western Union Telegraph Com
pany has been charging the people of
North Carolina % cents for each 10
words sent and delivered in the State
Of North Carolina. The Railroad Com
mission deemed this an extravagant
charge and that the service could be rem
dered with a fair profit to the company
at Il rate of ID cents for 10 words. They
based this opinion upon the fact that III
Great Britain and i'll many of the King
doms upO nthe continent, npeSsa GEES of
this length are sent by the telegraph
companies at from 10 to - cents at
profit. Indeed, in Europe the usual rate
is 10 cents for 20 words.
Besides, it is the contention of the
Commission that the telegraph company
should only be allowed to collect a rPa
sonalle profit upon their real capital in
vested. As a matter of common knoWl-
edge the capital stock of the Western
Union has been watered until they are
claiming the right to collect such a RAE
as will allow them to make a profit upon
four times the real amount of capital in
vested. They naturally, therefore, dread
an investigation and such action as that
the Railroad Commission. 1t is only
a question as to how long the people
will allow this thing to go ON mcheck
ed The questions involved in these
rate cases will not be doWned until the
rates have been reduced or the people
have lost the claim Of Independence. The
Governor has employed counsel ito see
that the contention of the Commission
ers, voicing the demand of the people,
shall be pushed to an adjudication III the
courts. The cases must and will go on
and the State will collect from the COM
pany the full amount of the bond flied
and more.
'"Ihe Corporation Commission will I'm
early date and the hearing of the issue,
involved upon their merits.
THE exceptions of the companies to
that part of the answer Of the Railroad
Commission relating to the watering OF
stock &c, were referred to Judge Shep-
herd as Special Master. and We're over
ruled. This was a point gained by the
Corporation Commission. The matter
was to have been heard on appeal ut
Richmond last week before Judge ST.
mention. but was continued.
THE developments in these cases will
be watched with great deal of interest
by the people all over the State, aGG-d
Mr. Douglass, las they involve questions
that strike home to every citizen. The
Governor employed counsel with special
instructions to press the matter, which
has been done as far as possible. The
CORPORATION Commissioners should fol-
low out the intimation contained in their
report and aid in pushing them to Il COM
clusion favorable to the interests OF the
people of the State.
There can be no conflict between these
and the freight rate cases, because tho
railroads are AMPLY able to pay the taxes
assessed by the State and still make a
handsome profit ON their investment ut
the rates fixed by the Railroad Com
mission.
1.-THE Railroad Commission having new
er ceased to exist, but simply having
changed its name to Corporation Commis-
sion. under the decision In Abbott VS..
Beddingfield, there is no doubt but that
the Railroad Commission cases Ill which
the Western Union Telegraph Company
and the Wilmington and Weldon Rail
road Company are concerned. are ST..
properly constituted i'll court and that II
is as much the duty of the Corporation
Commission to defend them as 1t was
that of the Railroad Commission. The
Corporation Commission has the power to
regulate rates, and telegraphlc charges
being involved. each of these companies
having by their disregard Of the order /
of the Railroad Commission, incurred Il
liability of over $4,000 each, $40, |
coo of which is secured by bond and |
the balance is secured by the ac-
knowledged solvency OF each company
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