The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-01-20
SEAbOARO MAKES
PROTEST PUBLIC
Declares Present Rate Too
Low; Proposed One Con-
tiScatory
NORFOLK SOUTHERN NEXT
NORFOLK SOUTHERN NEXT
And Smaller Roads Will Give
Testimony Tuesday = Sea-
board Declares It Never Paid
Dividend and Has Been In
Receivership.

StltH.
Concluding its testimony YESTERDAY
with figures hat showed It's stock at
1S IL. with 10 dividend on it's invest
ment, a receivership just a few years
behind it, the Seaboard yesterday pre-
sented it's protest against the Justice
intrastate freight act, and the Nor
folk Southern comes tomorrow.
The Seaboard cOntended in all it's
testimony that the present interior
rates are too low. It declared through
it's representatives that the best it has
ever done was to pay a dividend Of one
percent on it's preferred stock. that
it had G failed to meet the inter-
est on h bonded Indebtedness and
that it went into a receivership as
the result.
The fifth day Of the hearing opened
yesterday with E. T. Cansler, attorney,
of Charlotte, addressing the special
freight rate commission as a prelimi-
nary to presenting the testimony.
was present and the Seaboard had a
number Of it's secondary officials here.
It brought no trainmen to offer their
side, though this may later be done.
MI. Cansler took the view OF Judge
Winston expressed at the opening Of
the investigation, that leach tub
must stand on it's own BOTTOM and
that the testimony should be confined
strictly to the interstate matters. Nj
duty OF this commission, he said, was
fixing rates, If he read the statute
Alright and it's business is to determine
the reasonableness of the rates asked
n the Justice bill.
Mr.. CanSler declared that a reason
able rate would be one that gave
year by year a fair return on an in
vestment. one equivalent to the return
that other businesses receive in the
same section. The Minnesota courts
had held that Z percent is a reason
able rate for railroads and the Su-
prome Court of the Nation had let the
decision stand.
Why Not the Seaboard?
"When the North Carolina Rail
road was leased to the Southern for
80 years, it was stipulated that a, divi-
dend Of not less than seven per cent
should be apid the investors" Mr..
Cansler said. but there was q great
hue and cry that this was not enough.
Here was q precedent not readily &C
quiesced In by certain individuals
: but why should not the Seaboard All
, Lines investors be allowed a seven
per cent return on their money"
i Business institutions not half sc
hazardous as railroad building and
operation pay eight and ten per cent
he continued. "and there is no attack
, upon hem. Would investors in those
, enterprises put their money in then
If h lawmaking bodies passed a Law
forbidding more than six per cent"
"Since the Seaboard's organization
it has never paid in it's twelve year
more than n dividend and that N
, per cent on its preferred stock. w
, propose to show to this commission
not that the proposed rate is confisca
tory, a thing apparent in the light o
n OUT statement, bat that the presen
n rates are too low in North Carolina
The attorney said that the princi
pie Of regulation is right and declare'
that the right of eminent domain CAV
the railroads something. but that h
regarded it, as the Charlotte man d.
i his automobile, which he refused t
% list for taxation, "a liability rathe
thar an asset" But the railroad run
to monopoly and regulation is righ'
he said.
All IntraState Figures.
Judge Watts, OF, COUNSEL for tn
/ SeabOard, that all hgurs
le would be relative to state busineS
~intxastate rather han Translate, an
L T. w. Mathews, assistant comptrOlle
was introduced az the first witness.
r. The roads have a team Worl
The SeabOard did not go into a way
Ell bill comparison, the impressive COZ
Ia ~tribution OF the Coast Lin the da
before. It dealt largely with a fna1
cial condition Of its " and the STATE
In ment Of Mr.. Mathews that MS roa
" would have actually lost money und
r the reductions proposed, was the sci
I'd sation of the day.
q. But that did not strike more So
prising1y thar did the Coast Line
H. declaration he day before. IN
road referred TO by all North Car
n INA roads as the model in prospe
itv and tn roadbed, was declared
have made but 90 per cert on |