The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-06-05
TO REDUCE RATES
WOULD WORK Loss
Norfolk and Western Officials
Testify That Charges Are ;.
Reasonable Now.
rspeelnl to The Tlmes-DIspatoh.1

Special to The Times Dlspntch1
WINSTON-SALlihi. N. c.. June 1.-The
hearing OF the cases OF the WINSTON
Salem Board of Trade VS.. tho Norfolk
and Western Railway and the North
Carolina Corporation Commission vs..
the Norfolk and Western Railroad.
growing out OF alleged freigh. rate dis
crlminatlon was begun here this morn
ing before Special Examiner George ".
Brown. OF the Interstate Commerce.
Commission, at Washington. There was
much discussion relative to whether or
not the two cases should DO tried to-
gether or should be combined into one.
Finally 1t was decided to keep the cases
separate only that the evidence in one
should be considered as evidence In the
other, where 1T was practicable. in
order to avoid duplication of evidence.
Heard Separately.
It was also decided to hear the case
OF the Corporation Commission first.
and Mr.. Joseph w. Coke comptroller Of
the Norfolk and Western, was the first
witness
He testified that the dividends on
Norfolk and Western capital stock,
both preferred and common. averaged
about 2.36. He stated that the earn
lngs the past five months had been
considerably less than usual because
net earnings for the. past five
months amounted to $l.426,0Oo.
Mr.. Coke said that IL Virginia
rates were applied to the Durham and
Winston Salem roads, 1t would dimin-
sh the income OF the road over 100000.
that the loss on coal freight would lie
Ss6.i29.20, and the loss on other mer
chandise would be s24,46s,31: that coal
and coke formed about 90 40 Of the
freight business of the Norfolk and
Western road. tho company hauling
fIsi4.235 tons Of coal and coke out
of total tonnage of o01S2,o1O of nler-
chandise; that the Norfolk and West
ern road received less on the frcigh.
sent to points beyond Winston Salem
that 1t did on freight stopping here
because they had to give the Southern
Railway part of the money received
for hauling the freight
Witness admitted that his company
had paid several dividends since tho
reorganization of the company. and
that they had recently declared div
18th OF this month. Mr.. Coxc also
confessed that when the Norfolk and
Western was reorganized the old pre-
ferred stock of the company was al
lowed to be taken as common stock in
the new company; that syndicate took
over the stock by paying $3.50 on each
share. for which 1t receives in divi-
dends 80 per cent.
Operation IL Expensive.
vice-President Devant OF the Norfolk
and Western was the next and only
other witness examined during the day. |
He read a letter from the superin
tendent of transportation, in which 1t
was stated that there was more ex-
pense in operating the road from Roa-
noke to Winston. because there We're
more curves and grades on this road. |
Witness stated that the cost of oper-
ating this road was "a per cent. great
er than operating their other lines.
He expressed the opinion that the Nor
folk and Western had seen Its best
days. as far as transportation of coal
into the Carolinas is concerned.
The hearing snot expected to be
concluded, before Saturday. Besides
the Norfolk and Western. the Southern
Seaboard Air Line and Louisville and |
Nashville Railway are represented at |
the hearing by officials and counsel. The |
three members of the North Carolina |
Corporation Commission and represent
atives of the Petersburg. Va. Chamber
of Commerce are present.