Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-08-06

mOulncatlOn OF the temporary lnJuHc-
ton and upon this being granted we
will put the q cent rate into effect
August Sth.'
And this morning, l received from
him a message in the following Ian
guage: You are wrong. Am simply
forcing you to obey the law and in
dieting you and your agents II you
violate 1t. Do about 1t as you please
and l will govern myself accordingly.
II again notified him that we would
apply for a modification of the in
junction and put the rate into force.
These kilograms speak for them
selves"
Mr. Barber was asked II he desired
to say anything about the facts Of the
Carolina and North Westerns case.
He replied, "Well. the facts will be
submitted in testimony at an early
date. 1 may say now that whatever
may be the effect Of the rate legisla-
tion in North Carolina on the earn
ings of the larger roads, In our case
II Is plainly to reduce the earnings TO
such an extent as to leave us unable
to pay the interest on our bonded
debt. 1t was only for this reason that
we sought to have the United States
court pass on the validity Of the acts
in question. -.-;
when 1 acquired an interest in the
Carolina and North Western railway,
some seven years ago, 1t was rum
down, half-equipped, narrow-gauge
railroad. not half serving the demands
of the section through which 1t runs.
1t required no small effort to develop
the property to its present condition.
We placed on 1t an issue Of bonds at
the rate Of $4,000 a mile and expend-
ed the money in changing the gauge
and improving and equipping the
road. This bonded debt does not rep
resent the full value Of the property.
1t cannot be reproduced today for
$4,000 a mile. Our bonds are, there
fore, not excessive. We are operating
only enough trains to meet the de-
mands Of our patrons, but we are try
ing to give the shippers and the trav-
cling public all along our road the
best possible service within our means
Our salary and expense accounts
are as low as they can reasonably be
made. Our operating expenses are
therefore, economical.
Under these conditions, we had
gross earnings for the year ending
June 80, 1907, Of $356,629.37. Our
total expenses for the same period
were $244,846.11, leaving us net earn.
ings to apply to the interest on our
bonds. taxes and betterments Of SILL
1926. The interest on our bonds for
the same period amounted to $75,-
583.34. Our taxes amounted to S.
$685., making a total fixed charge In
interest and taxes for the year Of $S4,-
4OO.29. Take this from the total pet
revenue Of $111,7S3.26 and $27,Ss2.97
Is left.
"Our books show accurately the
proportion Of earnings applicable to
North Carolina business affected by
the legislation In question, and show
that the application Of the reduced
rates for the passenger and freight
business fixed by the recent acts Will
reduce our earnings to the extent OF
more than $4,000. 1t is, therefore
manifest, that on the business OF the
whole line, II we are compelled to op.
crate the proposed rates in North Car.
olina, we would be more than $4,000
short of a sufficient amount to meet
our interest and taxes.
"If it is calculated on the basis OF
the proportion Of the bonded indebt-
edness applicable to the North Caro-
lima mileage, then the deficit would be
practically twice as much. These fig
ures must speak for themselves and
show why we did not acquiesce with
out questioning the action Of the leg
islature.
"I am sure that the patrons of our
road want US to maintain Ii properly
and give them at least as good train
service as they now have. II our
earnings are to be reduced by the
acts in question, we must either allow
the property to deteriorate and reduce
the number and quality Of the trains
operated, or fail to meet our interest
and taxes. Either OF the first two
would be injurious to the section OF
country we Serve, and not to meet our
interest charges would be to bank
rupt our company.
Everybody recognizes not only the
right Of the state, but also the wisdom
of the states regulating the maximum
charges to be made for freight and
passenger transportation, but the linn
itation upon this power Is and must
be that the rates fixed shall not be
confiscatory. am sure that when
the patrons Of our road and the trava
cling public understand that we are
being forced to operate at rate that
will not give us sufficient revenue
with which to maintain the property
and meet our obligations, they will
understand why we have resisted the
enforcement Oh the dClS III QuCStioh
and sought relief from the courts.
1--WE are unwilling, however, to
bring about an unseemly conflict be-
tween the Federal court and the state
authorities, although we know that
the Federal court has jurisdiction to
protect our property, and therefore,
we have temporarily yielded our
rights to await the final decision of
the court.
Governor Glenn says the act Of the
legislature Is law have always un-
derstood that the pronunciation of
what Is law rests with the courts. The
broad question in this whole contro-
versy Is whether the governor or the
courts shall construe the law and de-
termine what Is constitutional. There
Is no issue Of states rights involved.
Is 1t not time to stop working states
rights overtime and give place to prop
erty rights guaranteed by the consti-
tuition Of the United States?
LOCAL LAcoNlcS.
We Will Send The Enquirer