New-York tribune., 1907-08-16
PATE HEARING BEGINS.
IN B1RR ON STAND.
vorth Carolina Legislators Take
Hand an inquiry.

-. she master, however, IN which he was at
".-sne pains 10 point out that he and ex-Gover-
.vcock were present representing the
10 Attorney General and his assistant. but that
Sc .+sta Governor did not recognize the jurfs-
-. -. of tie federal courts in the matter. His
Df ,,oe he declared. did not alter the Govern
ost,trde Another feature was the testi-
o. of J II Barr. once president Of the Sea
,oos-5 Air Line ana now a wealthy lumber mer-
-, of North Carolina.
.ne end Of NJ. Barr's cross-examina tion
80 Jrst:ce representing the North Carolina
,5rss If Representatives. asked Mr. Barr pointed
= ,4sther il was true he had once declared that
- ssabcsrd Air Line feared 20 build line into
I,-.xrsborouch. n C. because Of threats of re-
-.sls nv the Southern Mr.. Barr denied that he
"a made any such statement He said it might
- been true that he had stated the Southern
-,eNt take 7eprisals. Under redirect exemina-
.,c, Nv A. B. Thorn, representing the Southern, he
ia the Southern never had taken reprisals
C,.ss.r Justice also sought 20 make ATr Barr
.sov that certain parts OF the state had been dis
s-iusfed against in favor of Virginia in the mat
.,- of certain rates. To most of such questions
Mr. Barr pleaded that he was not in possession of
.ncsh tscis 20 answer definitely.
arr Barr" asked Mr.. Justice. do YOU know
,hst zt time there existed what might be called
g renteInans understanding the effect that the
s<sboard Air Line should refrain from extending
,s lines into certain North Carolina territory un-
There was no express understanding was Mr
ss-r,s short reply. after he had appealed unsuc-
-v,uTiy 10 The master 10 whether he might
rsfuse 10 reply.
Mr. Barr then asked whether he knew that
rs-sn business houses in the state had actually
been driven seek other fields because the South
,n hsd built up 2 monopoly in various parts Of
y--.h Carolina The witness said he didn't know
fHs BE- q fact.
TIre-President Spencer Of the Southern. the only
chsr witness yesterday. in opposing the reduction
N rstes declared that the operating expenses OF
fhs Southern swallowed up q Per cent of the
sOa receipts
The present hearing is in line with the proceed
irrs brought by the Southern Railway Company
IN sa effort 10 have the new North Carolina rate
las declared confscatory in ifs effect and there
fore nall ana void The object Of the testimony
n0E being taken is 10 establish. If possible the
actual facts and conditions Of traffic in North
Carolina. with view 20 settling IN the courts the
question Of the reasonable operation of the new
rate law.
Tbs DISPUTE between the state authorities OF
North Carolina and the federal courts over the
oassrranoe of a law passed by the last State
legislature forcing the railroads of the state
establish a uniform rate of q. cents a mile for
earring passengers was brought to New York
for one Of the stages of adjustment. and the hear
ing yesterday took place at the Offices OF the sec
rs,srr of the Southern Railway. IN this city at
Se 50 Broadway. Briefly. the last Legislature
Of North Carolina passed a law reducing passenger
rates 10 q. cents a mile. The railroad resisted
n. lzr uncoust:s .uonal- Its agents
Instructed 10 paw attention 20 the law. An
agent az one Of the principal stations however.
was arrested and sentenced 10 prison for violation
ot the law. The railway company promptly ap-
p-sl.d 10 the federal courts foreign corpora
doing an interstate business. Now. the state
sv fixing the passenger rate had in IL a pro-
Tss forbidding railroads from removing cases
Ger the law from the state the federal courts.
lie railway company. however. held this TO be
unconstitutional and paid go attention IL. The
.ssalt was clash between the two courts. Judge
Prrehard issued injunction directed against the
carrying out Of the sentence OF the state court.
ard Governor Glenn responded with threats The
outcome was that several officials or the Southern
Railway were also arrested, including President
Finley Then The railway company, in the in
tsrests Of peace made temporary surrender TO
the state courts. without waving any Of fits al
lesed rights, however.
Judge Pritcnard Of the Federal Court, appointed
ex-Judge Montgomery. of North Carolina, a spe-
csi master TO take dispositions in this city Alfred
p Thom, general counsel of me Southern Rall-
way COMPANY. Of Washington d. c: T. II. Busby
and Mr.. Hines represented the conpany's inter
ests al the hearing.
Chairman Franklin McNeill OF the North Caro-
Ina Corporations Commission, represented that
body. Counsel representing the commission includ
ed ex7Judges H r. Winston and Joseph N shep-
herd, Senator Walter Daniels and ex-Congressman
?. A. woodard. when the special master ap-
pointed 70 take testimony. il was ordered by the
court that a report be submitted 10 the Circuit
Court for the United States Eastern District of
North Carolina September .. According 10
NJ Th0D. depOstions viii be taken IN Washing
'on and other cities following the adjournment
ot The hearing in this CITY,
Nr. Barr said that his oDiniOn the carving of
local freight under existing conditions in North
Sacolsna cost from two TO three times much as
Il Cid TO operate through freight trains within the
State borders. lie explained this in measure by
ssslrg that frequently local freight trains were
hot laaded 70 their full capacity. Consequently the
'oanase carried by them considerably less than
he average tonnage carried through freight
'fai's although the operating expenses were prac-
neally the same
Counsel for the Southern asked Mr.. Barr whether
u bis opinion. there any profit in passenger
traffic carried on under existing conditions in
North Carolina Mr.. Barr said that at this time
ne Cid not believe q fair profit was possible, and
that perhaps there was no profit in passenger traffic
N the state all lie explained that IL the total
cost mile OF operating railroad In or through
'he state was taken into consideration and pro-
foronate share Of such was charged up TO ooth
Passenger and freight traffic then. in his opinion.
'heTe would be actual profit shown on the pas
senser traffic within the state.
Ex-Coagressman Woodard cross-examined Mr..
Barr, who said IL true that a higher rate was
charged by railroads in the state for carrying local
Freight than for through freight. but the witness
od not think the difference in price was sufficient TO
equal The increased cost OF local freight traffic
developed that passenger traffic within the state
vas somewhat mixed. and that a number OF So
called through trains on the Southern Railway
-Mashins,to- 10 Atianta-made stops at towns and
Way points in the state that as matter OF iact
y was impossible TO calculate with exactness the
cost OF Carrying local passengers on these trains
as distinct and anart from, through passengers
The hearing will be continued this morning at 10
oe.ock