The semi-weekly messenger., 1908-01-24
Ask FOR THREE CENT RATE
..ceixers Could Not I'm Justice I'D 81
curty Holders Agree to ,.ssessed.
mise Onered-Remeoy 80
Conductors IoDnpas.n Iht
duced Rates arc I..,ao~- Of
Employs Oh i.oa
R,iiroad Absorption
fspecial to The Messenger2

sora,a and house railroad cohIiii'
- ,ho receivers and attorneys OF
,he SeaboaId Air Line rali"a!
,ba order of railway conductors III Fe
a-a ~ ,he rates. The combined ior-
ces asked that a bill be passed hN-s
a fiat rate OF three cents mlle' ini
cage books at two and ha!L he~ei'-
ers Warfie.d, of Baltimore, ana "h
Jams Of Richmond, made the nrs'
speeches. followed by attorneys Epp@
Hunton. of Richmond, and Untemeyer'
NJ New York, President Garrett CLOS
ire the sppeal for the Seaboard. Inc
announcement was made oy the eoui'
officials that the agreement, whlch Was
entered into by the president anu III
rectors of the road which was Quinn
ed n the governor $ message couiu
not be confirmed by the receivers IN
Justice TO the property in their charge
They asked that either fiat rate o.
three cents be fixed, or bill, based On
net earnings per mile, be passel, the
fixing of rates be left to the corpora
ton commission, giving them IaIiIRaS
as 10 roads in the hands or receivers,
or that a bill making exceptions Tor
roads in receivers hands be passed
Receiver Warfield declared the condi-
ton OF the Seaboard as desperate. That
there was a defiency of half million
dollars for the year ending July lst,
1907, and that receipts had fallen OF
! l.: per cent in November and December
while for the first week in January
this ear the decrease was twenty per
ceLL compared with last January, the
second week showing decrease OF
twenty two per cent He said that the
iu> reased cost of labor and material
for the company last year alone
amounts to a million aud a half dol
lars Receiver Williams brings up the
point that the great danger was the
complete disintegration Of the system.
| 1t was built by the purchase VI small
connecting lines, these connections had
| bonds and purchase obligations, and
should a default be made in iaayment
| the legislature could not prevent the
forced sale of connecting lines or res
| tr;ct the purchaser, and that The sys-
ten would be destroyed.
Attorney Hunton expla:Iad how 1t
wa; the receivers, upon looning into
lie actual condition Of the property
could not in justice to stock folders AM
| bondholders agree to the compromise
entered into by the road before the
receivership became a necessity, be-
cause it was patent that the road could
not survive the rates there mention
ed.
Attorney Untemeyer states that al
though that within the past three
years twelve million dollars Of new
money had been invested in the road,
and it's business had increased thirty
per cent, the end of the past year
found the road absolutely bankrupt.
all their securities threatened, not
| dollar had ever been paid to stock
holders, and their stock is worthless
He admitted that the road had ialien
behind on a three and a half cent
passenger fare with an unexampled
season of industrial prosperity but de-
MED that internal dissensions or wat
cred stocks was the cause. He sug-
gested that a bill be passed directing
| the corporation commission TO investi-
gate and themselves fix rates for roads
in the hands of receivers.
President Garrett declared recent
Investments made by the road IN
North Carolina, amounting to half
million dollars, and the hope, if rates
were raised, that the road would ov-
ercnme present trouble, recommending
q flat passenger rate Of not less than
three cents.
| Attorney r. y. Simms, for six hun
dred railway conductors spoke for the
order, at least seventy five conduc-
tors being present; he referred to re-
| duction in salaries in force, saing
| that there were more than twenty
| two thousand railway employees in
the state, receiving ten millions dol
| lars per annum, and cut by the roads
! Of Cnly ten per cent. meant a million
! dollars year loss to the state with
attendant hardships on the men and
) thei: families. He presented a peti-
tion signed by every freight and pas
scnger conductor in the state asking
for three cent rate. He was followed
by Conductor Stewart OF Raleigh. Of
the Seaboard, Wakefield Of Asheville,
and Mclaughlin, of Greensboro. of the
Southern on the same line The com.
mittee adjourned at seven.
There are rumors Of a movement by
certain great railway interests to alb
sorb the Seaboard Air Line and Nor
] ok and Southern Railways and divide
these lines as the Cape Fear and Yad-
kin Valley road was divided. Some
members Of the legislature have heard
| such rumors and one Of them said this
legislature ought to enact a law on the
basis of the Georgia law, designed to
prevent consultations. This matter
will doubtless become prominent in a
day or two. Governor Glenn, when
| asked tonight il he had heard tba MI