The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-05-28
Mr.. FINLEY TO BANKERS.

cept the legislative act "vheH tae
courts have passed on the question
Re is putting the cart before The
horse. II IS the business or the rail-
roads ard OF individuals % "Ioyally
obey the legislative statutes. The
presumption j. that the act of the
legislative department Is Just and con-
s~titutionaI. For his railroad. Mr
Finley demands tina: all customs and
rules be changed and that the lFgis-
iative act OF North Carolina be pre-
sumed TO be unjust and u%nconSttu-
tional until the Supreme Court Of
tho United States passes upon the act.
II that policy should be applied T. all
statutes affecting others-(and 1t
should be applied 70 all II = the
statutes affecting the southern Rail
way)-the Legislature should remain
IN session. and as it, acts are ratified
they should one and ell be sent 70 the
supreme Court to sag whether they
ere just and constitutional. and the
Legislative Department OF Govern-
ment would be reduced 10 a place Of
subserNiency t. the judicial depart
ment.
Having demanded that Federal
courts repeal or postpone tho opera
ton Of laws affecting the Southern
Railway. Mr. Finley ought to have
been frank enough to give the bank
ers facts ana figures showing the re-
ceipts and the expenses Of the roads
owned and operated by the Southern
Railway in North Carolina. Bankers
arc accustomed to settle matters by
figures and balances ard not by mere
oratory and defamation, however
much it may please them around the
festive board. Inasmuch as Mr.. Fin
ley gave the bankers no figures, we
Will print d few taken from
the sworn statement Of the Southern
Railway. on file in the office Of the
Corporation Commission.
We Eea Mr.. Finley and other rail
road magnatcs talk much to the effect
that While receipts have increased, eX-
penses nave greatly increased and his
is Why rate reduction should not be
forced Upon them. Thu southern
RAILWAY leases the North Carolina road
from the State. Their sworn reports
for the Hear 1891 showed the net earn
iags from the operation Of the North
Carolina road to be $211.537. from
which they had to pay a rental Of
SEQ 900. leaving a profit on the OPP
Grafton of the road from GCllsbOro
to Charlotte Of only $31,53l. some peO-
pie have been ~uncharitable enough to
say that the earnings cf TIA road at
that time were diverted to other roads
in order TO secure the lease by maxi
ing a poor showing of net earnings.
Perish the thought. DO not the sworn
reports negative any padding or an.
diversion of funds? Let US examine
the sworn earnings for the yea 1906,
eleven years after the lease, and see
what it Giscloses. The net earnings on
that road for the year 1905 were ST.
246,654, or a cool million more than
in the year 1894. Mind you. that was
not gross but net earnings, and repre-
SCENTS the sum of profits left after the
payment of larger expenses caused by
increase in wages, etc. Out OF the net
earnings for this one year Of $1,246,-
654. the rental Of s2S6.000 was paid,
leaving TO the southern Railway as its
net profit On that one road S960.G54
in 1905 against s3r,537 in 1894. Is
this complete answer to the pre-
tense that rates cannot Sc reduced be-
cause operating expenses have been
increased?
But the ingenious Southern Rail-
lawyers and political ~hcnchmen
will say: 1t is not fair to test all
roads Of the Southern by the North
Carolina road. 1t IS a gold mine which
was given to US whcn the State of
North Carolina's officials were asleep.
You should consider all the Dad on
Grated by the Southern in North Caro-
Well. let us see what the bal
ance sheet Of all the lines. wned and
Carolina. shows: The total mile
age of the Southern Railway
in North Carolina is ~1,220.92!
The cost Of the roads IS put down at
$54.45S.286.53. how much of which is
water we are not advised. The entire
1920 miles IS assessed for taxation at
$~26.41t,939. and, after paying the Gp-
Grating expenses and increased cos of
laEor and material. the Southern in
1906 made a net profit on his 1.320.92
miles Of railroad of four per cent on
s104.7 226-that is to say, it made
per cent on what it calls the
Of road" Chow much is water?)
and nearly sixteen per cent on the
value of the property as it is assessed
for taxation.
DO not these figures show that Mr..
was wise in dealing n glittering
generalities rather than in figures
when he was trying to defend the
course of the Southern Railway to
practical bankers? He made a very
plausible speech as long as he steered
clear Of facts and figures; if he had
the figures and the facts. he
have shown the bankers that he
had no ground for seeking to get the
Federal Courts to defeat the solemn
act of the General Assembly of North
Carolina.
PHYSICAL STARVATION OF MO-
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