The semi-weekly messenger., 1907-08-30
n. c. RATE HEARING
Direct Testimony Of Comp
tIo|Ier Plant Completed
SENSATIONAL INCIDENT
Witness Asked Protection of
Standing Master;
Refused to Answer Certain Questions
Put to Him by States Counsel
Were Asked for the Purpose of
Drawing Erroneous Conclusions.

Washington, August 27.-The direc
testimony of Comptroller Plant of tlf
Southern railway in the North Caro-
lima rate hearing was completed and
considerable progress was made IN the
cross examination which was conducted
by former Congressman Woodward Tor
the state of North Carolina.
Most of the afternoon session was
taken Up with questions by the North
Carolina state counsel put to Mr.. Plant
~ concerning the reports by him to the
North Carolina corporation commits
sion of the operations of the Southern
railway in that state. Mr.. Woodward
pressed his questions 50 strongly to
Mr.. Plant that the latter said he felt
called upon to ask the protection of
the master in chancery against the
states leading counsel. Mr.. Plant as
serted that Mr.. Woodward asked him
questions for the evident purpose Of
drawing erroneous conclusions which
he said he did not propose to answer.
Mr.. Woodward asked Mr. Plant
whether upon any of the quarterly re-
ports made to the North Carolina rail-
road corporation for the four quarters
ending with June 30th, 1906, there was
any statement that the operation ex
penSeS of intra-State business were on
approximations.
The reports were not made by me,
replied Mr.. Plant, they We're attested
by me"
Are they not sworn to by you, Mr..
Plant he asked.
F'1'hat is true" replied the witness.
When asked if it was not his du-y
to make these reports to the corpora
ton commission, Mr.. Plant said it was
his duty to see that they were prepar-
- ed and filed.
fcThey were sworn to by me as cor
rect TO the best Of my knowledge and
belief Mr.. Plant added.
Reverting again to his first question
as to the reports of the North Carolina
commission Mr.. Woodward asked Mr.
Pi&nt if there was anything in the re-
port of operations of the North Car
olina railroad made by the comptroller
for the year ending September 80, 1905,
Indicating that his statement of the
operating expenses incident to intra-
state business was an approximation.
Upon examining the report Mr.. Plant
said the report did not show any nota ,
ttion on it that the figures We're ap-
y1rnximated He added that it was a
tn of ir:a
with mathematical accuracy the total
amount of expense to do intra-state
traffic as distinguished from all traffic.
Hfr Plant discussed an alleged DIFF
ference of $165, ASS in the earnings OF
the Southern railway in North Caro-
lima for the year ending June 80, 1906.
as contained in the report of the North
Carolina railroad corporation commits
sion and as stated in Mr.. Plants testi-
mOny today. Mr.. Plant explained that
the difference apparently was attrih-
~utable to the fact that the commits
cion's report made no mention of the
intra-state business on the Atlantic
and Danville nor of the traffic haH!s
of the North Carolina railroad and that
therefore the tabulation did not in
c1ude all earnings for which the South
ern railroad had made reports to the
corporation commission.
Mr.. Plant contended thatl prices Of
labor on the Southern had increased
very materially during the last five or
six years and that wage concessions
bad been made since June l, 1906. to
the employees ct that system. Mr..
Plant presented tabulated statement
giving an estimate Of the increase in
wages to employees in 1906 as cOmpar
ed with the nrevious year, which ag
gregated 81 ,04 1000 The increases We're
for the entire system but they applied
equally. tC North Carolina.
Mr.. Plant detailed the earnings ana
@ IF tho Southern railway for
the year ended June so, 1907, and
stated that the decrease in the net
earnings as compared with 1906 was
81. 900 .5S7. or 1877 per cent The bal
ance over fixed charges for 1907 was
So, ,29O.321 compared with So 5,229 066 in
1906, a decrease of 56.2 per cent In
reply to a question witness said that
there was not enough balance over tx
ed charges to declare a 5 per cent.
dividend on the preferred stock Of the
Southern ana that that rate of dividend
has not been declared during the pres
rent year.