The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1909-01-21


may thereafter file similar request.
Should the legislature favor the
policy the details of the legislation
will not be difficult, and any fear
that irresponsible and unsafe banks
might be organized can al!ayed by
appropriate provisions.
RAILROADS.
The railroad business of the State
is so important that / deem it prop
err in this inaugural address in form
al fashion to set forth some Of the
views entertained by me and which
have in public speeches often de-
clared concerning railroad matters.
Every thinking man realizes that
railroads are necessary; that they
bless every community they touch;
that they must be profitable in order
to give proper service; that they de-
serve fair treatment at the hands OF
legislatures, and moreover that any
legislation that would deprive them
of just compensation would De futile
under the Constitution. The people
are willing to be charged such rates
for travel and freights as Will pay
the legitimate expenses Of every kind
and character, including liberal
wages to all employees, keep up the
roads in good repair and safe condi-
ton, and then pay fair dividends up
on the value of the property. But
the people are unwilling for COM
panies chartered for the public bene-
fit to exact from the public under an
almost unlimited power to extort
when unrestrained by law, addition
al rates to pay dividends OIL fictitious
value OF to enable railroad magicians
by tricl.ery TO make millions over
night, Or to justify them in saddling
upon the public millions Of securities
n watered stock. In my judgement
the Fundamental wrong in the Amer
lean railroad problem is watered
stock. The great question of most
o. railroad managers is now to make
one dollars worth OF property earn
dividends and and interest Oh two
dollars CT stocks and bonds. This
tends to two great evils overcharg
ing the public Oh one hand, and
stinting the roads in labor and equip
ment on the Other. This over-capi-
taIization, together with the fact
that, except II rare instances, the
owners Of railroads do motive among
ard have little sympathy with the
people they serve, are at the bottom
Of most railroad evils. Oftentin3es
manager serving a far away cor
porate head, not knowing how long
he will hold his position. endeayols
to make record By charging the
public all he can, and by exercising
a temporary economy that leads fin
ally to defective roadbed, dangerous
| track and insufficient equipment, for
he is expected above all other things
from his position to make the prop
erty earn dividends upon original
and watered stock. It is evident
that one of the essentials of a proper
regulation Of railroad charges is to
provide by statue for ascertaining
the value Of railroad property in or
der to have a basis upon which to
consider rates.
! The last legislature reduced pas
senger fares. The rates now in
| force, which save thousands of-~dol-
lars annually to the people from the
old rates, have been approved by the
! railroads as just and reasonable.
Conditions justify Us in anticipating
no agitation for any change in pas
senger fares during the term Of the
] lncomlnglnS administration.
The determinations in freight rates
practicel by railroads in favor OF
some and against othor cities is prop
erly receiving much attention. As
far as competing cities are concern
ed, it is more important that they
have relatively just rates than that
either have absolutely just rates
All rates may be too high, but ever
then, relatively they should be equit-
able. Some Of our North Caroline
cities have been compelled to pay
millions Of dollars Of freight over
and above what other cities have
paid for the same distance. The
freight on car load Of corn from
Cincinnati to Grecasb 70 is much
more than the freight VIC. 4 be
should the car go On to Lyme. burg
A car load Of mo!asses from New
Orleans to Lynchburg pays les;
freight thru if it stops in Charlotte
Over such determinations in inter
state commerce the Interstate Com
merce Commission has sole jurisdic
ton. On the face of the above in
c+oroo r. -a ic i7,i17ct:oa op1 4bo,