The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-02-08
THE STATUS OF The CASE
HAS BEEN CHANGED. BY TAN
CASE DECISION.
EXCEPTIONS To RULINGS OF SHEPHERD
The Case Does Not at This Time Come Up on
the Question Of Recovery on the eond.
The Wilmington and Weldon
pacccnuor R,4a Coca
Passenger Rate Case.

The telegraph rate case will be argued
before Judge Simonton at Richmond to-
dQy. 1t viii come up ON motion TO
have strickcn out certain parts OF the
answer of the Railroad Commission.
In 1898, when the Railroad Commits
sion was in existence it made a reduction
in passenger rates on the Wilmington and
Weldon Railroad and in telegraph tolls
over the Western Union Telegraph COM
pany's lines in the State From this or
der both corporations appealed and pend
ing hearing of the appeal they filed Il
bill iii equity and sued out an injunction
i'll the Circuit Court before Judge Simon
ton.
TO do this they had to file bonds Ill
amount sufficient to cover the difference
between the new rates ordered and the
old rates collected-this difference to be
refunded to the patrons OF the corpora
tions in case the Railroad Commission
should win the suit.
The Commission filed answer in this
suit tracing the organization and hls-
tory of the Western Union Company, al
leging that its stock was watered and its
profits enormous, and that the new rates
were reasonable and just. These things
the Telegraph company complained Wee
irrelevant and impertinent and should be
stricken from the answer. Ine matter
was referred 10 Judge James f. ShCp-
herd who sustained a large part of the
answer objected to. The effect CT Judge
Shepherds decision, would lead 20. the
taking of an accounts. (which would go
into the plan of organization of the COM
pany. and the watering of its stock, so rs
to show the enormous profits the Western
Union is alleged to be making.
Of course the company objected to this.
but before the matter could be further
heard. the Legislature repealed the Rail
road Commission act and established the
Corporation Commission. Then the teie-
graph company gave itself no further com
Germ about the case, claiming that the
Railroad Commission being no longer in
existence. and its successor. the Copper
alton Commission. having restored the
Old rates. there was nobody before the
court and they were entitled TO have the
LII dismissed.
The attorneys for the State claimed
that Notwithstanding this the case still
had a standing in court on the ground
that some account must be taken Of the
difference in the two rates FROM the time
the new rate was made to the time the
Railroad Commission ACT was repealed"
In addition to this they contended chat
under the decision of the State courts
the Railroad Commission act had never
been repealed. but only amended, and
that therefore they were still very much
i'll court.
And in this position they We're sustain
cd by Judge Sinlonton in his second de-
cision in the railroad tax case. Hence
the attorneys for the Western Union
have a motion to be heard before Judge
Simonton at Richmond today to over
rule Judge Shepherd in sustaining the an
swor of the Railroad Commission back
in the beginning of the case.
Mr.. w. c. Douglass and Col. j. w.
Hinsdale left here yesterday for Rich
mond to argue the case for the defen-
dants The telegraph company Will be
represent by Stiles & Holiday, of
Richmond.
1t is stated that the Western Union
offered by way of compromise IN this
matter once (before the Railroad Com
mission act was repealed to pay about
$4,000. They have never been inNeStl-
gated in court and do not want to be.
The question: OF liability ON the bond
does not now come up. 1t rs SIMPLY a
question of whether Judge Shepherd s
ruling on the answer shall be sustain
ed. Under IT the defendants desire TO
examine under oath the officers OF the
company and large number of the men
i'm Washington who have had the COM
pany under official investigation.