The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-05-14

G'.rlt e : al ne - ~-stts
n-r .No.tn Carol NJ Ia
t.as. II A4-ir esq f1T
year under Las proposed
tates ana cla1-ss o. II
lea9t.- 49,
II arslsf AZ this 1lleg result the
netho1 i14..Ned is d ejaculation o.
.rt4asa = 4Ltcrstate gross rams
revenue, sa.-n IS alleges 70 De
2760 per cent The maxi.-um earn
lngs from Interstate traeic, after pay
my the cost OF operation for the year,
are stated At S453.s1i4I. From this
sum Is deducted S94+23. TIE intrastaI@
proportion OF state taxes Or s2G9.65l.-
l8. and s54.S33.04 the interstate
proportion OF Improvements and bet
terments. not capitalized, ~chargeao.e
10 compIainants North Carolina prop
critics during said year "oi
s1~97,945.51. The net earnings
arc thus figured al 1874
Iff6E, from which u Is alleged tnat
the proposed freight reductions wou'd
have taken in the year 1906 me
sum Of s2e6,147.17.
Ring In Interstate Commerce.
THE complainant further SHOWS
that the effect Of the establishment
Of the proposed rates and charges
would not be limited TO intra-sta,f:
husin ess IN North Carolina OF tnl'
com lainant. but wound lneVltaoiy al
fsct the interstate business or this
complainant and impair and diminish
the revenue derived therefrom. Tn!s
inevitably follows from the fact that
many OF its interstate rates on
freight, and all, or nearly all. OF is
interstate rates for passengers, are
made, and necessarily made, on q
combinatio OF locals, or by the use or
locals as factors, and, where the LOCAL
rate within the State of North caro-
ling is reduced, the inevitable eneIt
upon the revenues Of this Complain
IT from its interstate business wo4id
Je a reduction, and accordingly tho
total loss which this complainant
would have to incur, in the event
mat the proposed rates and charges
are made effective, would not be rep
resented sim ply bv the figures above
given but a very considerable and up
probable loss would necessarily De
added thereto, growing out or the
reuctions on its interstate business,
as aforesaid"
Cumulative Acts.
In section 5 reference IS also had
TO the Acts of the Genera Assembly,
providing for the assessment Of real
estate Of railroads in stock law ter
ritory for local benefit; prescribing
the hours Of service OF railroad en-
ployes in moving trains; authorizin3
the Corporation Commission TO ic-
quire the erection and maintenance
Of depots in towns Of 2,000 inhabi-
tants; and to extend and enlarge the
powers Of the Corporation Commits
sion-all of which acts are alleged
greatly to increase the cost OF opera
ton and to impose additional imam
cial burdens upon the complainant
More Mathematical Poverty.
In the same section it Is further al
legged that there Is q difference In re-
spect to the property OF complainant.
as in the case Of all other properly.
between it's commercial value and us
assessed value for Of taxa
ton: that the tax assessment value Is
not as great as the commercial value,
but that taking the assessment ~
~S26,134,S6b as q basis, Of which the
proportionate intra-state business
would be figured at $7.213,222.74,
the complainant AYERS that the nro-
posed rates and charges will not pro-
nit it to earn reasonable profits, n
,njoy reasonable returns, even upon
that valuation, and such rates and
charges will deprive it Of the leg!ti-
mate use Of its property"
AS a further basis of comparison, it
is alleged that on this valuation -ha
returns allowed by the proposed
charges, calculating upon the basis
of the year 1905-s. would be only
Observation-Disclosures of one per
cent. on he tax value, ithout allow
ing anything for payment Of interest
on bonds or dividends on stock.
It is further calculated that, taking
the proportion of bonds ~chargeabte
to North Carolina to be s24.623,O73.-
20 with interest charges Of $714.-
1O3,OS thereon: and adding thereto
annual trackage ana rentals PAID
s4s1,1ss.ss the net income
from Interstate traffic in North
Carolina should contribute It's pro
rata proportion to the payment oI
such interest and rental charges,
namely at least $3.50 per cent. or the
sum of S329.900.S9.
But the total net earnings from in
trastate traffic having been estimated
under the proposed rates to be only
SIS, OO7.47 it is concluded that this
would leave a deficiency, after pay
ing the amount properly objectionable
to intrastate traffic in the State of
North Carolina Of such rental and in
terest o. s311,S93.O2 and no returns
whatever to the owners of said prop
erty.
Increased Business Denied.
The section 90 further alleges that
the year ending June 3Oth, 1906. made
the basis of calculation was fairly rep
Of past and future con.
ditions. excep that there had been
an increase in operating expenses dis
prOpOrtiOnate to thai in gross earn
ings; that general commercial condi-
lions in this State are good; that there
would be no compensatory increase
in traffic as the result of the rcduc~
lions provided for in the freight and
rate bills; and that the lines
of the complainant have always been
operated economically as possible con-
with judicious management and
that therefore, the effect of the acts
complained of would be to deprive
complainant of it's property without
just compensation" ct cetera.
Ough to Be Higher"
In section 9 the complainant sets
forth that the rates in force had been
fixed, both as to freight and passenger
charges, by the Corporation Comms-
sion as just and reasonable prior to
the passage of the acts complained of;
and it is alleged that. since the rates
were 50 fixed the cost of performing
service has been largely increased to
the complainant and that, in conse-
ouence thereof. The rates to be lust
and reasonable now should be increas-
ed, rather than diminished.
Section 10 is a reiteration, in posi-
tive terms, of the allegation that the
rates now in force are just and reason.
able: thai the complainant does NOT
practice discrimination in rates be-
tween DerS0nS or localities: that tba