The Caucasian. (Clinton, N.C.) 188?-1913, 1906-10-25

and the eloquent and ineisawe speeches
made IN the late Democratic state con.
vention. The full significance Of these
speeches 10 shown By the following
clause Of the Democratic platform. where
u says: Passenger and freight rate.
IN North Carolina are too high. aud
should be materially aud substantially
reduced: and we demand such action
by the legislature and corporation com
mission n win accomplish such redue-
ton The fact that such demand
was deemed necessary to satisfy the
people after both the legislature and the
corporation commission had been abso-
luteiy under Democratic control for
seven years is equivalent TO an admis-
sion that the just demands Of the peo-
pie have been ignored.
Commission Has Ample Powers.
The corporation commission already
has ample powers to regulate freight
and passenger rates in Chapter 20, Vol.
l, of RevisaI OF 1905. Section 1899
specifically provides that:
1.-THE commission shall make reason
able and just rates
/. Of freight, passenger and express
tariffs for railroads, street railways,
steamboats,, canal and express companies
or corporations, and all other transpor-
tation companies or corporations en-
gagged in the carriage of freight, express
or passengers.
"'2. For the through transportation of
freight, express or passengers.
"3. OF charges for the transportation
of packages by any express company or
corporation.
"a. OF charges for the use of railroad
ears carrying freight or passengers.
This section has been in force since
1899, and was amended in 1908.
Passenger and freight rates can be
adjusted at any time, and as often as
the commission may see fit.
Rate Reduction Vital.
The most vital question now before
the people is the reduction of freight
and passenger rates. There is general
demand for a passenger rate of two
cents per mile; and it appears upon the
face of the returns made by the rail-
roads themselves that such a rate would
be reasonable. The railroad companies
cannot be heard to deny the truth of
their own returns. They should not
blow hot and cold in the same breath.
The vast discrepancy between the value
of their property as assessed for taxa
ton, and the productive value of the
same property as shown by their net
income, proves that the fares are too
high or the taxes too low. One thing
is certain: They charge too much ont
they pay too little. An examinations
of the statistics in the report of thu
corporation commission for the year
1905 shows the following facts.
We find that the total tax valuation
of all the railroad property in this state
was $69, 573 1874. The gross earnings bf
all the railroads were $22,441 ,705. TheFir
net earnings amounted to $s,47O, 4s3, pc
ing more than IL per cent. on the hs-
sessed value of their property. The re-
ceipts from passenger fares from ithe
three great companies, the Allah bite
Coast Line, the Seaboard Air Line land
the Southern Railway, amounted to
$3.50, 1903. L cannot ascertain FROM the
report the amount of passenger earnings
on the smaller roads; but l do not think
they can possibly increase the gross
amount to over $6,00O,0O0. The report
states that the average amount received
per passenger per mile by the three
great companies was less than two
and half cents.
L cannot imagine how it was reduced
so low unless they counted in pas$es and
other free transportation. This does not
mean that the people generally had the
benefit of any such rates; but Hhat the
average amount was brought down by
the free transportation given to3the fay-
ored classes. Il
10 Per Cent. Profit on 2 Cent? Fares.
Assuming that the smaller roads would
have increased the average toy two and
a half cents, it follows that If an aver
age rate of two cents a milel had been
in force in 1905, the total n ailroad re-
ceipts from passenger fares you'd have
been one-fifth less than theyI were, pro-
vided there had been no increase of bust
ness resulting from the chdapening of
the cost of travel Therefore, excluding
any such increase, and dedIucting one
fifth of the total passenger fares l$l,-
200, 000) from their actual pet earnings,
the railroads would still have had ST.
270, 900 of net earnings. Inf other words,
if an average passenger rate OF two
cents per mile had been iIf force during
1905. the aggregate net EARNINGS of all
the railroads in the stated little as well
as big, would still have been more than
TO per. cent. of the valuef of their prop
erty as assessed for taxation. And yet
they resist this reasonable demand and
cling to their exorbitant Earnings. Shall
this be permitted to dontlnuef And
yet it has continued for the past nine
years. On July ID, 1ssF, Judge Walter
Clark, at the request fof the members
of the commission, WROTE to them an
open letter calling their attention to
similar facts. / have space for only one
or two extracts. Judge Clark says: