Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-07-26
The Railroad Rate Controversy.

The Railroad Rate Controversy.
The conflict between the state courts
of North Carolina and the United
States court is very we'll calculated to
excite widespread interest; but If the
people who are giving the matter clos
est attention would do themselves the
most credit, they will not lose sight Of
the main issue, the real justice of the
situation.
The fight, as Is now pretty generally
understood, had its origin in an effort
on the part Of the North Carolina leg
islature to reduce the charge that the
railroads may make for the transpor-
tation of passengers to "a cents per
mile, and the issue was Joined through
a claim on the part Of the railroads,
the Southern leading, that this rate
is impossible and practically amounts
to a confscation Of railroad property
without due process Of law.
That there are two sides to the
question is obvious. If three cents a
mile is too much, that is If the charge
yields too great profit to the rail-
roads, 1t should be reduced. OF course,
the railroads are not going to make
any voluntary reductions. They new
er do anything of that kind. 1t Is now
universally conceded that this Is a
proper subject for legislative enact
ment and in passing the rate law, the
North Carolina legislature was entire
ly within it's rights.
AS to whether the maximum fixed in
the rate law under consideration is too
low is a proper subject for investiga-
ton, for while a public corporation
should not be allowed to extort from
the public, it is equally upiust that the
public should extort from public cor
pOration.
The main contention before Judge
Pritchard at the original hearing on
petition for an injunction was over the
question as to whether or not "a cents
a mile was a fair compensation for
carrying passengers. The railroads
claim that it is impossible for them to
pay operating expenses at the rate al
lowed by the law, and representatives
of the state on the other hand claim
the rate allows a big profit on all ac-
tual investment and legitimate ex-
penses.
Because neither side was able to up
hold it's contention before the court
with conclusive evidence, Judge
Pritchard appointed a commission to
take testimony and report its finding
to the court in the fall. He withheld
his decision pending the filing of this
report and ordered that in the mean
time the railroad might continue to
sell tickets at the old rate, provided 1t
gave to each purchaser a memorandum
showing the excess over the new rate
and promising to make good the diff
ference in case the final finding should
be against it.
All this looks fair and 1t Is fair.
But it seems that the North Carolina
legislature had anticipated the inter-
vention of the Federal courts and in
order to circumvent that Intervention
provided that violation Of the rate law
should be deemed a misdemeanor and
made the punishment SO heavy for in
dividual offences as to put 1t in the
power of the state to run the offender
out of business in short order
1t was the effort on the part Of the
state to enforce the penal provisions
of the law that brought about the con-
hct of jurisdiction last week.
Judge Pritchard held that the penal
provisions of the law were unconstitu-
tional in that they, in effect deprived
the railroad corporations the right Of
a hearing in the courts.
1t is not at all difficult to compre-
hend the justice of Judge Pritchards
holding. For a legislature to attempt
to punish an individual or corporation
for trying TO find out whether 1t Is
entitled to certain rights guaranteed
by the constitution is absurd. There
should. be no need of an appeal to the
United States court to establish this
point. No state court could hardly
afford to go on record as holding 9TH
erwise.
But after all, everything depends
upon the final adjudication of this
matter. AS to whether % cents mile
is not enough to allow the railroads
IL reasonable profit, we do not know.
We are quite sure that it would not
after paying for operating expenses,
betterments, improvements, etc, yield
also the legal rate of interest on the
entire capitalization. including bonds,
preferred and common stock, and
neither would cents Il mile. That y
cents may furnish Il very liberal pro-
portion of Il proper and just income is
not at all improbable. But we have
an idea that when the testimony is all
in there will be 50 much conflict and
confusion in connection with it all,
that it will be very difficult matter
for the court to decide what is really
right, and we are quite sure also that
the losing side will consider itself as
having been very unjustly treated.
As we see it, however, there has
been no harm done up to this time.
Judge Pritchard has not gone beyond
the bounds of his jurisdiction, and
there is no occasion yet to kick about
Federal interference with state affairs
All this may come later; but there is
no reason To get excited over the mat
ter in the meantime.
Barned Burned.
The barn of Mr.. j. Frank AShe of
McCunnellsville, was destroyed by fire
last Wednesday afternoon, the fire
originating from bolt Of lightning.
The barn was large one, well filled
with pruvender and the loss was quite
heavy. Mr. Ashe, however, had COM
Portable insurance policy in the Far
merS' Mutual.