New-York tribune., 1907-08-29
PLANT GIVES WARNING.
Savs 4gitation Against Railroads
Man Decrease Business.

1,s,s,5rr+on Aug 2S-The probable adverse effect
os state legislation the prosperity OF the rail-
roads and the people OF the country was the feat-
,,-e Of TIE testimony to-day of Controller Plant OF
the Southern Railway in the North Carolina rate
rearing case. He pointed out that if a panic should
-es,,lt from the lowering Of passenger rates the
state Of North Carolina would have 10 share the
burden Of responsibility.
Discussion Of this phase of the controversy was
brought about by a question asked Mr. Plant by
NJ Justice. Speaker Of the North Carolina Legts-
Ia+ure as TO whether there was congestion on the
Southern Railway lines in North Carolina. Mr.
Plant replied that congestion had been relieved to
some extent during the last six months by means
Of improvements TO the Southern system Asked Z
ne attributed the congestion TO the recent act Of
the North Carolina Legislature reducing passenger
rates NJ Plant replied that the more rate legts-
Ta-ion there the less congestion there would
re. because legislation would have a tendency 10
decrease business in the country whole.
Z mean 20 saw" added Mr. Plant. that the
greater the agitation against the railroads Of the
country the greater the probability Of a decrease
In general trade
The reason why the Southern Railway does not
Increase its facilities for moving traffic faster than
now. Mr.. Plant explained was that II has rot the
cash to pay for such additional facilities To get
the money for these Improvements II must go INTO
fre money market and sell its securities.
1T cannot" he said. find market for securities
IN the face Of state legislation tending 10 reduce fits
rates below the voirt where IL the money
70 nav for the necessary improvements
IF THE rates in North Carolina are exoroitant 90
YOU think the Southern Railway company ought to
ritcise the North Carolina for making an
Investigation and fixing the rates at what II tflrhs
rororer~' asked Mr.. Justice
.Tf II rates are exorhitart.'' replied Nj Pant
land can be shown 10 he SO. DO not believe the
Southern would hesitate 70 consider their reduc-
ton~
Asked IL he thought the railroads and not the
North Carolina legislature ought to fx the rates
Nj Plant replied that personally he believed there
should be a mutual understanding between the
railroads and the public he felt that the rail-
roads and the public were co-partners-
'rTvhen one nrospers.' he said. 'the other should
--os-e- and there should be a mutual understand
t,r and an equitable arrangement as TO rates.
In making his quarterly reports OF the operations
of the Southern Railway lines in North Carolina q
the North Carolina Railroad Corporation Commits
sion Mr. Plant placed the operating ratio on
f---astate traffic certain figure which he sale
was correct at that time the best Of his kno|l-
edge and belief Since then he had reached the
conclusion that the cost of earning a dollar on
5rrrastate traffic was considerably higher. and in
his testimony to-day he explained this conclusion
r7-o-, his investigations in North Carolina and
elsewhere Mr. Plant said he forced 20 figure
the operating ratio intrastate traffic as being al
last 2 minimum Of = per cent higher than me
7--r-ae made IN his reports the North Carolina
-o--o-a-ior Commission. He added that conserva-
tive railroad men placed the figures much higher
than himself