The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-08-27
PEACE OVERTUREs REFLECTED.
Southern Railway Declines Governor
Glenn's Proposals. ls.-Hearings
Are Continued.

Washington. August 23.-Ovcrtur-
'es, tentatively made by Gov. Glenn
Of North Carolina for The suspension
of the present hearing in the North
'Canolina rate ease until after the
question Of the jurisdiction Of the
United States ajircui, Court Judge J..
{. Pritchar,l has been determined by
the supreme court OF the United
States. were rejected today by coun-
sci for the Southern railway. The
plan nf the governor, as outlined By
special counsel for the state. was to
suspend the present inquiry because
the expense attached to it. but the
Southern railway argued that in or
der /" expedite The adjustment Of the
ti"n /" the cost Of doing business in
North Carolina should be gathered
pending the settlement IF the iuris-
,licti"M Of the courts.
Hal the Southern railway consent
cd t" the plan thc present hearing be-
fore Judge Walter \. MONTGOMERY,
VIII" wa> app"incl master to take
evidence and report to Judge pritch
'''" '"rn pnSlp"ncd to-
day indefinitely. As il is. thc hear
in" Wa> ordered to proceed AMI the
indirali"nS are that it will continue
for Il week "r more. llavin" trans.
frlrcd The hra'iur from New York,
.Iud"r M"nt""HrrN started iakin"
Testimony to-day in the office Of the
first vice president Of the Southern
railway.
II. i. Spencer, vice president ct
tn" Southern. was the only witness
heard and he had not concluded when
Adjournment was taken. During the
f"rrl""n hr answered many questions
concerning" the cost of operating in
North Carolina and the rarnin" on
all CLASSES uf business. At the after
noon session Speaker Justice Of the
North Carolina legislature took
char@r OF the cross examination and
inquired closely into the actual cost
Of earning Il dollar ON all CLASSES of
business i'm the state. Mr.. Spencer
could not estimate accurately the cost
OF earning II dollar in intraStatc buSi-
ness. hut said that it cost about IS
cent on all business i'm North Carolina
to earn Il dollar for the year ending
June 80. lo0i. These figures apply
to net earnings a> figured by the in
trrStatc commerce commission and
do not include taxes. interest on
bondS or indebtedness Of any kind. or
expenditures from net earnings for
bcttermCntS.
Mr.. Spencer said that the average
earnings per train mile on the South
arn system on passenger business are
about $l.03 or $l.04 and the passen-
ger earnings in North Carolina. in
cludin" mail and express business,
are about l.21. The average earnings
on all business in North Carolina are
larger than the average for the entire
system, said Mr.. Spencer. for the rca
son that North rarolina is "chokc'
through which the business of the
cnInr system IS i'unnrllcd.'
The witness cave the gross earn
ms an North Carolina business as
:Sl2,"'l;'.I2I: the GROSS operating rx-
prn~rS i"r the same period rs :S1.77S.-
l0i. but c"uld moi give the amount of
taxes paid during the period. nor the
ASSESSED valuations Of the property.
Mr.. Spencer admitted that there is
Il considerable Volume Of interstate
bn>iur>S handled ON North Carolina
local trains. and in fact practically all
OF such interstate freight except that
originating at division points or IrS.
tined Ter such points. II MAS cuncrd-
cd that this TO some extent tended tc
increase the COS! OF carrying local
freight. THE reason given by Mr.
Spencer fnr lhr hi"h cost Of handling
local l'rri@h, WAS that There i les,
TONNAGE nM local trains. more wral
on the equipment and more Labor
acquired in the handling.
Opposing counsel engaged in some
sharp exchanges over an effort on
the part OF Mr.. Woodward. special
counsel Tor the state, to have the
witness admit he had heard that the
Virginia state commission concluded
from thorough investigation, that
local business Of railroad costs nc
more than through business. Tho
witness would not admit that he had