The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-08-27
THE SOUTHERN MAKING
MONEY BY THE BARREL
Big Profits Earned From the Operation OF Its l'nts
in North Carolina
what about the expenses"

IL d EfAtIF dBBIoAA4lAJtAbA+
Il understood you 10 say In Ne"
york hat generally speaking the lon
ger the haul the more profitable IS a
shipment TO the railroads.
THAT is probably true"
What IS the distance from Cincin-
natl to Lynchburg. Va, and from the
same point to Greensboro?"
About 1922 miles 10 the former and
628 miles to Greensboro"
Assuming that the first class
freight rate to Lynchburg is So cents
per hundred and TO Greensboro 80
cents, which shipment would be the
most profitable to the Southern
Here Mr.. Spencer began to falter.
He said the higher rate was always
the more profitable, but maintained
that there are always conditions to
be taken into consideration.
Cost of Earning a Dollar.
"What does it cost to earn a dollar
on interstate business in North Caro-
lina?"
THAT is a very difficult question to
/ answer. Any statement with respect
to this question would be unsatisfac-
tory"
What does It cost to earn a dollar
on all business In North Carolina2"
"Sixty-fve cents"
The witness said it took Tab to
I carr q dOlIdT on the elIlrF system
The passenger earnings per train
mile for the entire system lie CAV as
1-03 and for North Carolina 1.25,
though in the figures for the State
mail and express earnings were in
Guided.
/ Profitable in North Carolina.
"Is not the business of the outh-
ern in North Carolina more profitable
than on any other part of the sys-
TEN ?" queried Mr.. Woodland.
"Ican't say, as | ave not figured
it out" replied Mr.. Spencer.
Here the examining attorney asked
Mr.. Spencer if he did not know that
the gross earnings from operation in
North Carolina are s7,967 per mile
as compared with $7.272 derived in
gross earnings from operation of the
entire system. Mr.. Spencer could
not testify to this information, but he
got 1t in the record all right, and Mr..
Spencer finally admitted that the
gross earnings of the Southern are
largest in North Carolina. He attrib-
uted this to the fact that North Car
DINA is the throat of the SYSTEM" de-
irving the benefit of a large part of
the through business. Mr.. Woodland
stated by the interrogatory method
he adapted that the earnings of
the Southern in North Carolina are
$694 per mile greater than on any
other part of the system.
do you not know that the question
Of the separation of inter n ultra
state business has been thoroughly
+! considered by the Virginia Corpora
ton Commission"
II happened to be a witness in that
matter observed Mr.. Spencer. with
a twinkle in his eye.
Did not the Virginia Commission de-
eide that it does not cost any more to
earn q dollar on local than on thrnII0h
business? Q"
Mr.. Spencer said he was ignorant
of any action taken by the Commits
sion. whereupon Mr.. Thorn took the
State Railroad Commissions in gen
eral. He objected to the questions
propounded and declared that the
Virginia Commission had decided this
case without evidence and contrary to
evidence submitted. He said he would
prefer the opinion of the United States
Supreme Court on this matter. and
that the case In question had already
been appealed.
Justice Takes Hold.
At this stage of the proceedings,
Speaker Justice began to ply the wit
ness with questions. He went right
into the matter of freight discrimina-
lions in favor of Virginia cities as
against North Carolina points. Mr..
Justice puts a lot of pepper in his ex-
animation, of witnesses, and it was ap-
parent that there was some ~uneasiness
on the opposite side.
do not the freight rates that the
Southern have in effect favor Virginia
cities, SO as to turn freight that way? %
queried the Speaker of the House, but
the reply that he received was ar
eVaSiVe one
Greensboro" OBJECTED to by Mr.
Thom.0
Mr.. Justice showed that rates on
flour, grain and feed stuff are much
less from Louisville n Memphis t.
~Lynchburg and Virginia points tina
to Greensboro and North Carolina
points. He also demonstrated that the
merchants can ship these same pro
ducts. Notwithstanding the fact that
they originally pass through Green's
Eastern North Carolina at less cost
than can North Carolina merchants
Mr.. Justice wanted to know if thi:
very situation does not tend to de-
Carolina. Mr.. Spencer's reply was
that it was Improbable to deal with
hypothetical questions.
Example of Injustice.
The Greensboro attorney tool New
port, a small town on the atlantic I'M
North Carolina Railroad as an ex-
ample for illustration. He declared
that the southern halfway had made
it impossible for Newport to e with
Greensboro merchants, and practical
J. forced Newport as we'll as all Other
North Carolina towns to deal witt
Virginia points in the matter Of ner-
camille shipments.
THE freight rate from Richmond
and Lynchburg, via Greensboro to
Newport, is IS cents" said Mr.. Justice,
and every man in Newport saves &c
! cents by buying from those points in
preference to Greensboro
Mr.. Justice asked Mr.. Spencer il
| small volume # intra-state business
in this situation did not account for DIE
: small volume of intra-state busjnt5s
: in North Carolina. and the ~Southera's
vlce-president sat silent:
:, Then l will ask YOU as an lntelli-
: gent citizen. If the fact as I have
stated" continued Mr.. Justice, do not
force Newport merchants to trade
; with Virginia cities2 Mr.. Spencer had
to smile, and he allowed as how he
would buy where he could get goods
: the cheapest. Mr.. Justice stated the
! advantage the Southern gives Vir-
, glnia merchants enable them to un-
dersell those in North Carolina. The
: States attorney then read from 9
tariff sheet showing that the rates or
: 90 y 100 Ch an1 p -