The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1900-02-20
LEGAL STATUS OF
The RATE CASE
Commission Says Something
Must be Done.
CASE IN FEDERAL COUR
HE ATTORNEYS TELL WHAT
WILL BE DONE.
THEY REGARD THE CASE AS TEST CASE
It is Alleged That the Telegraph Company Cat
Make Money by Sending Messages at
Is Cents for Ten Words. Profits of
Wilmington and Weldon Road.

"i'iltitlS wi anu "CidOi itUoOs
The Corporation Commission III its re
port. Just issued. says:
The rates for the II ausDurtation Of
passengers on the Wilmington ami
Weldon Railroad were restored 10
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 20 cents for a message of
10 words TO and from any point or
It's lines in the State.
Suits We're pending in the Federal
court for h purpose of enj0ining
the enforcement Of the order by the
Railroad Commission reducing pas
senger rates over the Wilmington and
Weldon Railroad, and telegraphic
rates by the Western Union 1ele-
graph Company.
These suits We're 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 Il loss to know
the exact status of those cases. But
ICING vi III ODIlLlOH t1tt 'bIt IAdl1-
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
he an amendment to, and not a re-
peal OF, the act referred to, the Com
mission will be obliged to take some
steps in regard to these suits"
This u-as Yesterday colIoI To tho attpD
ton of Messrs. Hinsdale and Douglass
attorneys in these cases for the State
and they were asked for information Il,
to the present status Of these cases, ant
their views as to the probable outcom
of the litigation.
They said that as to the Wilmington
and Weldon case the proposed reduction
of passenger rates was - cent a mile
and that the phenomenal prosperity 0
the Wilmington and Weldon system a.
evidenced by their last report demon
strated beyond any doubt that this reduc
ton was proper and that with it the,
would be permitted to make a larg
percentage of profit Oh their prOpertIe
in this State. They added:
This company, when the Railroad Com
mission reduced their rates, obtained al
Injunction from the United States Cir
cult court upon an eX parte application
stopping the enforcement of the orde
upon their giving al injunction bond o
$4,000 Upon the giving of this bond the,
have been permitted TO collect from tn
people of North Carolina over S30,C0i
Of passenger fares in excess OF whta
should have been collected under tn
said order Of reduction, and III excess 0
a fair and remunerative charge.
IF the court shall decide that the re
duced rate was Il reasonable one. unde
which the railroad company would re
ceive a fair percentage of profits on thel
property engaged in this business, thel
the railroad company will be responsible
in this suit not only for the amount O
their bond 100000. but, being solvent
for the difference between what the.
ought to have collected under the orde
of reduction and what they have collect
ed"
In this connection the attorneys callet
attention to the fact that in the Stat
of Florida within the last few week
a similar controversy has been settle
between the Railroad Commission ant
the railroad companies by a reduction
of the rates in the same proportion a
that made in North Carolina, to wit,
reduction Of = cent per mile.
If the result of the Wilmington am
Weldon Railroad case shall be such as /
anticipated by the counsel for the Cor
poration Commission, it will be regarde'
as conclusive, Col. Hinsdale says, thl
being a test case; and the same reductlo.
will in all probability be made III th'
rates of all the railroad systems of tn
State. He continued:
The cases regarding the rates upon
the other railroads were simply held Ii
allegiance by the commission until thu
Wilmington and Weldon case could b'
decided, as a test one, to determine Jus
what Quantum of power the Railroad
or Corporation Commission of the Stat
is to have in this matter OF fixing rates
This case is, therefore, II OF the lnoS
important ones that has ever been tried
The question involved III it is the burn
ing one of the hour, TO wit, whether thu
Commission representing the State is th'
ruler of the railroads, or whether tn
railroads are beyond the reach of tn
States power in the matter OF TIL
amount of rates to be charged
Touching the branch of the case af
fecting the telegraph company Col. Hlns
dale said:
The Western Union Telegraph Com
pany has been charging the people 0
North Carolina % cents for each II
words sent and delivered in the Stat
of North Carolina. The Railroad Com
mission deemed this an e~xtravagan
charge and that the service could be rem
dered with a fair profit to the compan,
at a rate of Is cents for 10 words. me.
based this opinion upon the fact that I
Great Britain and in many of the hlng
doms upo nthe continent, messages Q
this length are sent by the TELEGRAPH
companies at from 10 to 10 cents at
profit. Indeed, in Europe the usual rat
is 10 cents for 20 words.
Besides. it is the contention OF tn
Commission that the telegraph compan,
should only be allowed to collect a rea
sonable profit upon their real capital III
vested As q lnatter of common knOM: