The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-02-18
CASE IN FEDERAL COUR I
THE ATTORNEYS TELL WHAT
WILL BE DONE
THEY REGARD THE CASE AS TEST CASE
It is Alleged That the Telegraph Company Can
Make Money by Sending Messages at
10 Cents for Ten Words. Profits of
Wilmington and Weldon Road.

wilmington and Weldon Road.
The Corporation Commission in its re
port, just issued, says:
The rates for the transportation OF
passengers on the Wilmington and
Weldon Railroad were restored TO
that of the standard passenger rate;
that is 3H cents for first class and
~ cents for second class fare; the
rate for the transmission of tele-
graphic messages by the Western
Union Telegraph Company was re-
stored to % cents for message of
III words to and from any point ON
its lines in the State.
Suits were pending in the Federal
court for the purpose of enjoining
the enforcement of the order by the
Railroad Commission reducing pas
senger rates over the Wilmington and
Weldon Railroad, and Geographic
rates by the Western Union 1ele-
graph Company.
These suits Were pending at the
time of the repeal of the Railroad
Commission Act by the last General
Assembly. Such being the case the
commission was at a loss to Know
the exact status of those cases. But
being of the opinion that the Rail-
road Commission Act had been re-
pealed, thought that the suits would
abate of themselves.
Since this legislation has been
construed by our Supreme court to
be an amendment to, and not a re-
peal of, the act referred to. the Conn
mission will be Obliged to take some
steps IN regard to these suits
This was yesterday called to the atten-
ti0n Of MeSSrs. HinSdale and Douglass.
attorneys in these cases for the State.
and they We're asked for information as
to the present status of these cases. and
their views as to the probable outcome
of the litigation.
They said that as to the Wilmington
and Weldon case the proposed reduction
of passenger rates was II cent mile,
and that the phenomenal prosperity Of
the Wilmington and Weldon system as
evidenced by their last report demon
strated beyond any doubt that this reduc-
ton was proper and that with it they
would be permitted to make a large
percentage of profit ON their properties
in this State. They added:
This company, when the Railroad Conn
mission reduced their rates. obtained an
injunction from the United States Cir
cult court upon an eX parte application.
stopping the enforcement of the order
upon their giving an injunction bond of
$4,000 Upon the giving of this bond they
have been permitted to collect from the
people of North Carolina over $50 600
of passenger fares in excess Cf what
should have been collected under the
said order of reduction, and in excess of
a fair and remunerative charge.
IF the court shall decide that the re-
duced rate was a reasonable one under
which the railroad company would re-
ceive fair percentage of profits ON their
property engaged i'm this business. then
the railroad company will be responsible
in this suit not only for the amount of
their bond 100000, but, being solvent
for the difference between what they
ought to have collected under the order
of reduction and what they have collect
ed"
In this connection the attorneys called
attention to the fact that in the State
of Florida within the last few weeks
a similar controversy has been settled
between the Railroad Commission and
the railroad companies by a reduction
vi IHe TdueS III tire Same plopol IIOli oo
that made in North Carolina, ITO wit, u
reduction of p cent per mile.
If the result of the Wilmington and
Weldon Railroad case shall be such as is
anticipated by the counsel for the Cor
poration Commission, it will be regarded
as conclusive, Col. Hinsdale says. this
being test case; and the same reduction
will in ain probability be made in The
rates of all the railroad systems of the
State. He continued:
The cases regarding the rates upon
the other railroads were simply held iii
allegiance by the commission until this