The Washington herald., 1907-09-08

The North Carolina rate hearing was
enlivened yesterday by sharp contro-
versy between the lawyers. General Coun-
sci Thorn. OF the Southern Railway, pro-
tested against introducing testimony to
show what salaries were paid by roads
other than the Southern TO officers who
act for those roads as well as the South
ern.
The master sustained the objection on
the ground that the Southern was the
only road involved in the hearing.
Speaker Justice. OF the North Carolina
house Of representatives, was not satisfied
with this ruling and said that his pur-
pose was TO show that the Southern Rail
way Company was resorting 10 a sub
terfuge" to conceal the amounts paid to
its general officers. Mr.. Thorn protested
vigorously against this statement, de-
claring that there IS nothing 10 justify
the assumption that the company IS
guilty Of any subterfuge. but that the
statement of Mr.. Justice was a violation
OF the ethics Of the legal profession
Another Disagreement Arises.
This matter was finally dropped. but
there was almost Immediately another dis
agreement as to a proposition made by Mr..
Justice 10 have a representative Of the
State examine the books of the Southern
Railway Company prior to being put on
the stand as a witness on behalf OF the
State Mr.. Thorn objected to any such
proceeding. making it plain that the
Southern Railway Company would not
place obstacles in the way OF the verifica-
ton of any testimony that had been in
troduced by reference 10 its books. under
the supervision Of the master, but de-
clared that the company could not permit
an examination in the form of a fishing
expedition.
He also objected that any such course
would unduly prOlOng the proceedings.
The master ruled that the books could be
examined in his presence and under the
supervision OF Comptroller Plant. Of the
Southern.
Mr.. Plant. who was on the witness
stand, also clashed with the attorneys for
the State several times. When he had
been asked by Mr.. Justice 10 clear up q
statement that he had made on his cross
examination, in a way which carried an in
timation that he had not answered the
question frankly Mr.. Plant replied sharp
ly that he answered it as he understood
It, that he could not always read what
was in the mind of the counsel.
Il have my own mind TO take care OF,
said he. and I cannot DO that and take
care Of yours"
Discusses Freight Charges.
L. Green. freight traffic manager of the
Southern Railway Company, followed
Comptroller Plant. as the next witness.
He was questioned very briefly by Mr..
Thorn. and testified, in effect that intra-
state freight rates in North Carolina are
not unreasonably high. He based this
conclusion on the facts that these rates
in the first instance had the approval Of
the State commission; that they had since
been reduced in many details; that the
cost OF handling freight had greatly in
creased without any increase in the rates;
that they did not yield an unreasonable i
return; that they induced a constantly
increasing movement Of traffic: that they
were lower than the charges for any other
form Of land transportation; that they
were lower than the general level of To-
cal freight rates in that part Of the coun-
Try. and that the people served by the
Southern Railway Company IN North Car
olina were generally prosperous.
New Rates on Too Low Basis.
He testified that the combination rates
prescribed by the North Carolina legisla-
ture We're on a lower basis than required
by the legislature OF any other Southern
State. He reviewed the history of the
Southern Railway Company from its or
ganization, in 1924. when it took over a
lot Of bankrupt, poorly equipped roads,
and told of the Improvements in facilities
that had been necessary to enable the
system thus constituted to handle the
constantly increasing volume of business.
The abandonment or postponement of
much Improvement work had been neces-
sary. although this work was urgently
needed. There were substantial Difficult
ties III getting new capital and in secur-
ing labor and materials. In order to Sc
cure new capital, a railway company
would have 10 show prosperous and prof
table operation. and the assurance OF u
fair and safe return on the investment
II was not now possible 70 get money, |
and this had made il necessary 10 dis
continue and postpone Improvement work. |