The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-04-22

North Carolina TERRITORY with good faith II the proposition which
thev submitted al the rate conference on Saturday, and which va
promptly rejected bv the representatives OF the State. But whatever
NAY have been their purpose IN submitting that proposition for an
innnitessimal reduction Of a rate structure that they have admitted
should be reduced. they have probably begun to realize BY this time
that they viii have q hopeless task on their hands II they should IN
dertake TO Justify a rejection or a material modification OF the coun-
ter proposition submitted 10 them.
The more the situation is analysed the more clearly il appears
that in the definite proposition submitted to them the representatives
Of the State were moved with the spirit OF conservatism. and that
in submitting an ultinatum behind which they could place every
resource at the command OF the State they chose to be generous TO
the carriers For the purposes Of a n arnicable adjustment It Is not
for the time being insisted that the carriers give this State the same
rates that re given TO the Virginia cities, but they are meeting the
carriers souareIy o y their own sround-taking their own basic prop
oston submitted at the former conference, to-wit: That through rates
to North Carolina points be constructed on basis Of reasonable pro
pornonal rates from the Virginia cities into North Carolina, and sub
hitting as the basis for such proportional rates the scale OF rate
used b. the Southern Railway as their scale OF local rates their
line from Danvile to Washington. II the present rates are admit
ted 10 be TOO hight proportional rates are to be used-vhat answer
can be made to the proposition. to take as the basis for such rates the
scale OF rates used as local rate On the line Of the principal carriers
right down to the North Carolina line:
1t Is almost the universal practice in American ralroading 10
construct through rate on d lower basis than local rates. That prac-
te IS claimed as the chief virtue Of the American system OF rate
making. II permits the wide distribution Of products. The carriers
serving North Carolina have already agreed tia. this principle should
be recognized n our rate adjustment. and the proposition came from
them to adopt this principle. Having committed themselves to this
basis they are hopeiessly without answer when the State not Only
valves its claim for rates equal to the Virginia rates but proposes
the scale Of rates used as local rates their Virginia lines Is the
basis Tor constructing through rates into this State.
1t is true that this will amount to, a substantial reduction in our
present rates--a reduction of about 80 per cent OF that part Of our
through rates from the y lglnla cities il. But it IS we'll known that
our present rates are unrcasonably and intolerabiy high.
1t viii amount TO d substantial reduction in the net earnings OF
the carriers, but only 50 because they have been collecting unjust ti-
butte from North Carolina shippers. and the basis proposed will still
leave them d more liberal earning basis from their North Carolina
business than from any State in which either Of these carriers oper
ate.
From reports to the Corporation Commission it appears that the
tour leading systems operating in North Carolina had net earnings
on their North Carolina business for the year IQI2 of S12424 40.
Alter making liberal allowance for loss Of revenue BY reason Of the
proposed reduction and without taking INTO consideration either the
natural increase in volume Of business or increase that will he slim
e; uaed by reason Of reduced rates, ii will still leave them net revenue
OF more than ten millions OF dollars on their North Carolina business.
his amount IS equal TO ten per cent in come on the assessed value OF
their North Carolina lines. and nearly eight per cent on the cost Of
their roads a shown by their reports to the Corporation Commits
sion.
What answer can be made to these facts that will satisfy the
:. cry out with one voice for relief:
The more this situation is considered the more apparent il be
comes that the representatives Of the State have acted with marked
~ conservatism III the final demands they have made.
d North Carolina has been furnishing the cream Of the revenue Of
each OF these inter State carriers for years. It is willing to contn,e
to treat them literally, but it must now be recognized that an adj
IuStmcnt must be made.
The State has leaned far to the conservative in SUBMITTING -
ultimatum.
e Gentlemen Of the North Carolina railway lines. the State avail.
your answer.