The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1910-09-15
VA RAILROAD
CUTS SALARIES
Explains to Corporation Commits
sion That Reduced Rates Re-
CURED by the Interstate Com
merce Commission Bear
Hard on It.
RIG MOND.V A-Snec,s,

c H M o N d, v A.-Special.-
wing TO the great decrease in
the earnings of the Virginia and
southwestern Railroad. the company
h's been forced TO reduce the sala-
.ies OF its employees all along the line.
and the officials of the road feel that
: would be unjust for the CORPORA
Ion Commission to increase the as
Hssment Of the road at this time
The foregoing statement was made
y j. II. McCue. of Bristol, general
manager of the Virginia and South
'7stern. before the commission this
morning at the hearing now going on
-cfore that body 20 fix the assess
ants OF public utilities corporations
Il the State.
Due to Interstate Commission.
Mr.. McCue explained that this re-
duction In the earning power of the
road is due to the action of the In
terstate Commerce Commission in re-
ducing rates on that line between Ap-
palachia and Bristol. The road is
purely coal carrier and has no other
source or revenue. Up TO two years
ago its rates were $1.05 on steam and
$1.15 on other grades. The Interstate
Commerce Commission reduced these
rates to seventy-five cents on all
grades since which time the tonnage
carried by the road has shown no
material increase.
The announcement of the decrease
western caused some surprise. mas
much as the principal complaint on
the part of the other roads that have
been heard and one OF the reasons
given why the assessments should not
be increased, is the great increase In
wages that has been made during the
present year-the representative OF
the Chesapeake and Ohio stating that
the increase on his road in Virginia
amounts to $35O.O00.
IF daUoIOnad DURING ira
ton of Mr.. McCue that the report OF
the Virginia and Southwestern to the
commission failed to show the build
ing of an extension to the road. which
will be put in operation about Octo-
Der 1st. He was given the opportu-
nifty to amend his report so as to in
clude this.
G., G. s. o. Also Objects.
II. G. Morrison, of johnson City,
Tenn. representing the Carolina,
Clinchheld and Ohio road, was the
first to appear before the commission
today. This is also a coal carrying
road of recent construction, and Mr.
Morrison strongly objected to any in
crease in assessment.
Mr.. Morrison stated that the first
report of the road showed that the
rate of taxation as fixed by the Cor
poration Commission is more than 10
per cent. of the gross earnings of the
road. He explained that the road had
been built for the purpose of opening
up a coal territory, and the revenue
OF the road depends upon the product
of an affiliated company. This affi-
lated company has not developed its
properties in keeping with the con-
struction of the road, and for that
reason the road is not yet receiving
the revenue that il expects.
1t developed from Mr.. Morrison's
statements to the commission that the
cost of construction of the Carolina,
Clinchfield and Ohio road amounted
to more than $4,000 a mile. This is
one of the roads financed by Thomas
Fortune Ryan and its construction is
of the best.
Washington and Southern.
The Washington and southern Road
was represented by J. w. Eggleston.
Braxton, who is general attorney for
the road, is abroad, and by w. d. Duke,
assistant to the president and secretary
and treasurer.
Mr.. Duke explained that the road
now pays under the present assessment
gross receipts of the road to the State
in taxes which is S.5 per cent. of the
net earnings; and is more than one
tax amounts to 1866 per mile of track
age, and the assessment is on an ave-
rage of $32,SO0 per mile of roadway
and track.
Every railway in the State will be
given an opportunity for hearing be-
thought some of them, having only
small trackage in the State, will not
appear.
Steamboat companies, street rail-
ways, electric and gas companies and
all public utilities corporations will be
given the chance of appearing before
the commission at this time, and it is
expected that the commission Will be
in session for nearly two weeks.
THE HAGUE, Sept. 1O.-The Hague
tribunal came to an official close to-
day with the notification that the Gov
ernments OF the United States and
Great Britain would accept the award
In the Newfoundland fisheries case
without question.
Many. OF. the International represen-