Goldsboro weekly argus., 1909-01-14

poses Will De accomplished ny SndCC- j
ing a guaranty law for the benefit of
those banks which desire to avail
themselves of it's provisions. Let
provisions be made that when GER
tain per cent of the State banks, say
sixty, representing a certain per cent
of the State banking capital, say fifty,
shall file with the Corporation Com
mission request to be admitted to it's
provisions, the Corporation Commits
sion shall certify that fact to the Gov
ernor, who shall proclaim the act to
be effective from and after the first
day of the ensuing July or January.
whichever comes first, upon all such
banks and upon others which may
thereafter file a similar request.
Should the legislature favor the pol
icy the details of the legislation will
not be difficult, and any fear that IRE
l1sponsible and unsafe banks might be
organized can be allayed by appro-
pirate provisions.
RAILROADS.
The railway business of the State is
so important that I deem it proper in
this inaugural address in formal fash
| 4OA W SCI LII Ill oOA11O VI eAAO NAOWo SAA
tertained by me and which I have in
public speeches often declared con-,
cerning 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 be futile un-
| der the Constitution. The people are
willing to be charged such rates fOr
travel and freights as will pay the leg
innate expenses of every kind and
character, including liberal wages to
all employees, keep up the roads in
good repair and safe condition, and
then pay fair dividends upon the val
ue of the property. But the people
are unwilling for companies chartered
for the public benefit to exact from
the public under an almost unlimited
power to extort when unrestrained by
law, additional rates to pay dividends
on fictitious values or to enable rail-
road magicians by trickery to make
millions over night, or to Justify them
; in sadd1ing upon the public millions
of securities in watered stock. In my
i Judgment the fundamental wrong IN
the American railroad problem is wa.
tered stock. The great question OF
most of railroad managers is how
: to make one dollars worth of proper
ty earn dividends and interest on
e ", Sc
: tends to two great evils over-charging
the public on one hand, and stinting
the roads in labor and equipment on
the other. This over-capitalization
together with the fact, except in rare
instances, the owners of railroads dc
not live among and have little sympa
thy with the people they serve, are
at the bottom of most railroad evils
Oftentimes manager serving far
away corporate head, not knowing
how long he will hold his position, en-
deavors to make a record by charging
the public all he can, and by exercis
ing a temporary economy that leads
: finally to defective roadbed, dangerous
track and insufficient equipment, fol
: he is expected above all other things
from his position to make the proper
ty earn dividends upon original and
watered stock. It is evident that one
of the essentials of proper regula
: ton Of railroad charges Is to provide
by statute for ascertaining the value
Of railroad property in order to have
Ia basis upon which to consider rates
81 The last legislature reduced passen
FlgeF fares. The rates now in force
(which save thousands Of dollars annu
3 ally to the people from the old rates
thave been approved by the railroads
= Eas just and reasonable. Conditions
Il fjustify US in anticipating no agitation
4 for any change in passenger fares dur
! ing the term Of the incoming admins
z tration.
The discrimination in freight rate:
4 practiced by railroads in favor o
+ some and against other cities is prop
j erly receiving much attention. AS fal
+ as competing cities are concerned, i
i is more important that they have re
i latively just rates than that either
3 have absolutely just rates. ALI rate!
+ may be too high, but even then, rel
r atively they should be equitable. Some
: of our North Carolina cities have beer
compelled to pay millions of dollars O.
t freight over and above what other cit
0 les have paid for the same distance
: The freight on car load of corn from
i Cicinnatti to Greensboro is much more
J, than the freight would be should thu
g car go on to Lynchburg. A car loat
: of molasses from New Orleans tt
t Lynchburg pays less freight than il
l it stops in Charlotte. Over such dis
ordinations in Interstate commerce
l Interstate Commerce Commission ha.
: has sole Jurisdiction. On the face o
: the above instances there is injustice
: and they show that companies whose
: directing heads live away from the