Daily press. [volume] (Newport News, Va.) 1896-current, 1907-08-24
COMPANY WANTS ALL EVIDENCE
u the Proposition Made by Governor
Glenn Had Been Accepted the Pro.
eecdings Before Judge Montgomery
Would Have Come to an End
Southern Officials Have Figured to
Show Earnings and Losscs.
my Associated Press.)

Wy Associated PresB.)
WASHINGTON, ID. c.. Aug. 20
ovcrturcs. tentatively made by Gov
crnor Glenn of North Carolina ror
the suspension of the present hearing
In The North Carolina rate case until
after the question OF the jurisdiction
of United States Circuit Court Judge
j. &. Pritchard has been determined
by tho Supreme Court of tho United
States, were rejected today by coun-
sci Tor the Southern Railway. Tho
plan OF the Governor, ns outlincdy by
special counsel for the State, was to
suspend the present inquiry because
OF tie expense attached to It, but the
Southern Railway argued That I'm or
der To expedite the adjustment of
tho controversy necessary facts I'm
relation to the cost OF doing business
In North Carolina should be gathered
pending the settlement of the Juris-
diction of the courts
| Had tho Southern Railway consent
,, cd to tile plan the present hearing be-
fore Judge Walter A. Montgomery.
who was appointed master TO Take evil
dcncc and report to Judge Prltchard.
would have been postponed today in
definitely. AS 1t Is, the hearing was
ordered to proceed and the indications
are that II will continue for week or
moro. Having transferred the hearing
from New York, Judge Montgomery
started taking testimony today In
the Office OF the first vice president
OF the Southern Railway.
II. g. Spencer, vice president of the
Southern. was the only witness heard
md he had not concluded when nd
journmont was taken.
During the forenoon he answered
H. A..
of operating In North Carolina and the
earnings on all classes OF business.
/ At the afternoon session Speaker JUS
| ticc. OF the North Carolina legislature.
took charge of the cross examination
and inquired closely into the actual
cost OF earning n dollar on all CLASH
' cs of business In the State.
| Mr.. Spencer Gives Figures.
| Mr.. Spencer could not estimate nc
curatc1y the cost OF earning n dollar
OH Interstate business. but said that
It cost about Go cents on all business
in North Carolina to earn dollar
for the year ended June 30. 1906.
/ These figures apply TO net earnings
as figures by the Interstate Com
mcrcc Commission and do not include
taxes, interest on bonds or indebted
ness of any kind or expenditures
from net earnings for betterments.
/, Mr.. Spencer said that the average
earnings per train mile on the South
.crn system on passenger business
are about S1.03 or s1.04. and the pas
sengcr earnings In North Carolina In
Guiding mail and express business are
about SIPS. The average earnings
on all business in North Carolina are
larger IMAM the average for the entire
system. sid Mr.. Spencer. for the rea.
son that North Carolina Is CHOKE
/ through which tile business of the ell
tire systcm is "funneled."
The witness gave the gross earn
, ings on North Carolina business IA
S1-,6l3,727: the gross operating ex-
pcnses for the same period at Sits
/ 1913. but could not give the amount OF
| taxes paid during the period, nor the
assessed valuations of the property.
/ MIR. Sncncer admitted that there Is a
cons.- cradle volume of Interstate
business handled on North Carolina
local trains and in fact practically all
of such Interstate freight except that
originating at division points or des-
tined for such points. 1t was con-
coded that this Ia some extent tended
to increase this cost OF carrying local
freight. The reason given by Mt.
Spencer for the high cost of handling
| local freight was that there Is less
| tonnage on local trains. more wear
on the equipment and more labor re-
quired in the handling.
Charge Of Discrimination.
| Opposing counsel engaged in some
sltarp exchanges over an effort on the
part of Mr.. Woodward, special coun-
sci for the State, to have THE witness
admit he had heard that the Virginia
state Commission concluded from
thorough investigation, that local busi-
ness or a railroad costs no more than
through business. The witness would
not admit that he had heard anything
of the kind. nor that the decision
would have been of value If one had
been reached for the reason that the