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Full text of "Annual report of the Board of Railroad Commissioners of North Carolina, for the year ending .."

Digitized by the Internet Archive 
in 2013 



http://archive.org/details/annualreportofbo18nort_6 



Hortfc Car.'". 4 StJ*» Library 

KAMMflh 

EIGHTH ANNUAL REPORT 



OF THE 



BOARD 



^e 



OF 



RAILROAD COMMISSIONERS 



NORTH CAROLINA 



FOR the; 



YEAR ENDING DECEMBER ji, i 



— '^^m- 



RALEIGH 

GUY V. BARNES, PRINTER TO COUNCIL OF STATE 

1898 






»5' 



NORTH CAROLINA RAILROAD COIVIMISSION 

L. C. CALDWELL, 

Chairman, 
JNO. H. PEARSON, 
D. H. ABBOTT. 



Henry C. Brown, 

CLERK. 



STATE OF NORTH CAROLINA 



OFFICE OF THE BOARD OF RAILROAD COMMISSIONERS. 



Ealeigh, N. C, December SL 1898. 

To the Honorable D. L. Eussell, 

Governor of North Carolina : 

Sir: — Pursuant to law the Board of Railroad Commissioners 
have the honor to submit to your Excellency the annual report, 
embracing a statement of all the business transacted by the rail- 
roads in the State during the present year, together with that of 
telegraph, telephone and steamboats, also the valuation of the 
property of each as assessed for taxation. 

After deliberation, the Board decided to increase the valuation 
of the railroad and telegraph companies $4,462,768.95, which in- 
crease was acquiesced in by those interested. 

For years the different transportation companies had extended 
many courtesies, in the way of giving free passes, without any 
intention of violating the law. 

On February 23, 1898, an order was passed by the Board of 
Railroad Commissioners, prohibiting the further giviog of any 
special rate, rebate, etc., and demanding a strict compliance with 
section 4, chapter :32() of the Acts of the General Assembly. 
(Order No. 81.) 

The Board respectfully submits to your Excellency, that said 
order is being ''lived up to" by the roads, and that absolute 
equality — the demand of the law — is being measured out. 

The delay, formerly, in settlement of overcharges upon ship- 
ments has been met by requiring the common carrier, within 
thirty days after notice of such overcharge, to refund the same. 
(Order No. 77.) 



IV " REPORT OF NORTH CAROLINA 

The general depression of our agricultural interest brought up 
for consideration the rates upon commercial fertilizers and corn 
to points within the State, and the same has been equitably ad- 
justed by the roads, showing a desire to bear some of the burdens 
and putting in force the orders made by this Board, respectively, 
twenty per cent reduction on fertilizers and ten per cent on corn. 
(Order No. 78. Order No. 79.) 

Another order of the Board, of great convenience to the trav- 
elling public, is that where mileage books are made good for 
members of families and those living as a part of said families — 
thus consolidating many tickets into one purchase. (Order 
No. 89.) 

It was the desire of the Board to have the telegraph and ex- 
press companies contribute to the maintenance of the late un- 
pleasantness with Spain, by the payment of the tax imposed by 
Congress upon all bills of shipments and messages handled. The 
Express Company complied with an order of this Board, requir- 
ing the carrier to affix the stamp — but after being enjoined, and 
a decision of the courts, the Board was compelled to rescind its 
order touching the payment of said tax by the Telegraph Com- 
pany, and the " Joneses pay the freight." 

The Telephone charges have been considered oy us, and action 
taken, making a reduction in the rates charged. A determina- 
tion thereof must await the adjudication of our State courts, 
where the same is now pending. 

The reduction of the passenger rates upon various roads of the 
State has been under consideration and has received most careful 
attention, and while no general reduction has been made, the 
Board, in its judgment, selected the great systems, and after 
gathering all the information possible, reduced the rates on the 
Wilmington and Weldon line from ?>^4 cents to 2^i first-class, and 
from 23^ to 2 cents second-class, this line being by far the laost 
able to stand the reduction. This matter is now peu'ling in the 
Federal Courts. 



RAILROAD COMMISSIONERS. V 

The same questions of law, and almost of facts, arose in the 
consideration of the reduction of the rates upon the Raleigh and 
Gaston Road as in the Wilmington and Weldon Road, and the 
Board not desiring to multiply the actions in courts and add ex- 
penses to the State, ordered the decision in the Raleigh and Gas- 
ton withheld, to abide the decision in the cause now pending. 

The rate upon the North Carolina Road was not reduced, for the 
reasons set forth m the report. 

It has been the duty and pleasure of the Board to pass upon all 
matters coming before us, and to give each that consideration 
necessary to a proper determination thereof. 

All of which is submitted with the accompanying report. 
Respectfully submitted, 

L. C. Caldwell, Chairman^ 
Jno. H. Pearson, 
D. H. Abbott, 

Com missioners. 
H. C. Brown, Clerk. 



RAILROAD COMMISSION ACT. 

[AS AMENDED.] 



An Act to Provide for the General Supervision of Railroads, Steamboat 
or Canal Companies, Express and Telegraph Companies Doing Busi- 
ness in the State of North Carolina. 

The General Assembly of North Carolina do enact : 
Section 1. That there shall be three Commissioners General Assembly 

to elect three Cora- 

elected by the General Assembly to carry out the pro- ™^^^^°"^^?- 

•^ ^ ^ i Member of General 

visions of this act, and no member of this General ^^s^^^mbiy ineiigi- 
Assembly shall be eligible for the position of Eailroad 
Commissioner. The term of office of said Commis- 
sioners shall begin on the first day of April next after Term of office. 
their election and shall continue for six years, but the 

terms of office of the Commissioners first elected, 

» 

which shall be by the General Assembly, shall be as 
follows : one for two years, one for four years and 
one for six years. The General Assembly next pre- 
ceding the expiration of the term of office of any of 
said Commissioners shall elect his successor. In case 
of vacancy the Governor shall appoint to such va- vacancies. 
cancy, and his appointee shall hold until the qualifi- 
cation of his successor, who shall be elected by the 
General Assembly that convenes next after the va- 
cancy has taken place, and the person then chosen 
shall hold the office for the unexpired term. The said 
Commissioners, in addition to the oath to support the oath. 
Constitution and laws of the United States and the 
Constitution and laws of the State of North Carolina, 
shall take, to be administered by one of the Judges 
of the Supreme Court, the following oath of office, 
which oath shall be signed by said Commissioner and 
attested by said Judge and recorded in the office of 
the Secretary of State : " I do solemnly swear (or 
affirm) that I am not the owner of any steamboat or 
1 1 



2 ' BOARD OF RAILROAD COMMISSIONERS. 

of any stock or bond of any railroad or other trans- 
portation company, express or telegraph company, 
or the agent or attorney or employee of such com- 
pany ; that I have no interest in any way in any such 
company, and that I will well and faithfully execute 
the duties of my office of Eailroad Commissioner to 
the best of my knowledge and ability, without fear, 
favor or malice, or reward or hope of reward : so help 

Qualifications of me God. " Said Commissioners shall not jointly, or 
severally, or in any way, be the holder of any stock 
or bond, or be the agent or attorney or employee of 
aay such company, or have any interest in any way 
in such company, and shall so continue during the 
term of his office, and in case any Commissioner shall 
as distributee or legatee, or in any other way, have 
or become entitled to any stock or bonds or interest 
therein of any such company he shall at once dispose 

Suspension from of tho samo I aud lu case any Commissioner shall fail 

office by Governor, ' ^ 

in this, or in case any one of them shall become dis- 
qualified to act, then it shall be the duty of the Gov- 
ernor to suspend him from office, and to report the 
fact of his suspension, together with the reason there- 
for, to the next General Assembly, and the question 
of his removal from office shall be determined by a 
majority of the General Assembly in joint session, 
vacancy. lu auy casc of suspension the Governor shall fill the 

General Assembly vacaucy, aud if the Gouoral Assembly shall determine 
question of sus- that the Commissioucr suspended shall be removed, 

pension. ^ 

then the appointee of the Governor shall hold until his 
successor is elected and qualified as hereinbefore pro- 
vided, but if the General Assembly shall determine 
that the suspended Commissioner shall not be removed 

Reinstatement, from Ms officc, theu the effect shall be to reinstate 
him in said office. The person discharging the duties 

Salary during of Said officc shall be entitled to a salary for the time 

term of suspen- "^ 



sion. 



he is so engaged, but a Commissioner who is sus- 
pended shall be allowed the salary during his suspen- 
sion in case he should be reinstated by the next Gen- 



RAILROAD COMMISSION ACT. 3 

eral Assembly: Provided, that no person is eligible attorneys of com- 

-^ ^ r D panics ineligible. 

as such Commissioner who shall have been an attor- 
ney of any such company within twelve months next 
preceding his election to such office. 

Sec. 2. That the salary of the Commissioners shall salary of com- 

^ niissioners. 

be two thousand dollars per annum, payable annually 
by the public Treasurer on the warrant of the Audi- 
tor, and they may employ a Clerk, whose salary shall cierk. 
be twelve hundred dollars, which shall be paid quar- 
terly on the warrant of the Auditor out of any funds 
not otherwise appropriated. The office of said Com- 
missioners shall be kept in Raleigh, and they shall be g^^^ t° ^^ i" 
furnished with an office, necessary furniture and sta- 
tionery, which shall be paid for by the public Treas- 
urer on the warrant of the Auditor. Any one of said 
Commissioners shall have power to administer an commissioners 

authorized to 

oath or affirmation in any and all matters relating to administer oaths. 
their official duties. The General Assembly shall des- General Assembly 

*^ to designate 

igoate the chairman of said Commissioners, and in ci^airman 
the event of the vacancy or the absence of the chair- 
man, the Board of Commissioners shall fill the va- 
cancy pi^o tern. Any two Commissioners shall con- Quorum. 
stitute a quorum for the transaction of business. 

Sec. 3. That from and after the passage of this act Railroad company 

^ ~ charging unreas- 

if any railroad doing business in this State, or any gufuy^orexforhon. 
such company organized under the laws of any other 
State and doing business in this State, shall charge, 
collect, demand or receive more than a fair and rea- 
sonable rate of toll or compensation for the transpor- 
tation of passengers or freight of any description, or 
for the use and transportation of any railroad car 
upon its track* or any of the branches thereof, or upon 
any railroad in this State which has the right, license 
or permission to use, operate or control the same, shall 
be deemed guilty of extortion, and upon conviction 
thereof shall be fined not less than five hundred nor penalty. 
more than five thousand dollars, to be recovered as 
provided for in section seven of this act. 



BOARD OF RAILROAD COMMISSIONERS. 



Common carriers 
demanding, etc., 
greater or less 
compensation for 
transportation 
from one person 
than another, 
guilty of unjust 
discrimination. 



Unlawful to give 
undue preference, 
etc. 



Penalty. 



Commissioners to 
make rates of 
freight and pas- 
senger taiiff, etc. 



What to consider 
in making rates. 



Sec. 4. -That if any common carrier subject to the 
provisions of this act shall directly or indirectly, by 
any special rate, rebate, drawback or other device, 
charge, demand, collect or receive from any person or 
persons a greater or less compensation for any service 
rendered or to be i^endered in the transportation of 
passengers or property subject to the provisions of 
this act than it charges, demands or collects or re- 
ceives from any other person or persons for doing for 
him or them a like and contemporaneous service in 
the transportation of a like kind of traffic under sub- 
stantially similar circumstances and conditions, such 
common carrier shall be deemed guilty of unjust dis- 
crimination, which is hereby prohibited and declared 
to be unlawful. That it shall be unlawful for any 
common carrier subject to the provisions of this act 
to make or give any undue or unreasonable prefer- 
ence or advantage to any particular person, company, 
firm, corporation or locality, or any particular de- 
scription of traffic in any respect whatsoever, or to 
subject any particular person, company, firm, corpo- 
ration or locality, or any particular description of 
traffic to any undue or unreasonable prejudice or dis- 
advantage in any respect whatsoever, and any per- 
son, persons, company or corporation violating the 
provisions of this section shall be, upon conviction 
thereof, fined not less than one thousand nor more 
than five thousand dollars for each and every such 
offence. 

Sec. 5. That the said Commissioners appointed as 
hereinbefore provided, shall, as hereinafter provided, 
make reasonable and just rates of freight and passen- 
ger tariffs, or cause the same to be furnished by any 
railroad company, and the same, when approved by 
said Commissioners, shall be observed by such com- 
pany or companies doing business in this State ; and 
in making said rates they shall, unless such railroad 
company or companies shall fail to furnish the needed 



RAILROAD COMMISSION ACT. 5 

information, consider, as far as practicable, the actual 
value of the employed capital of the corporation, the 
earnings of the railroad and the cost of operating the 
same, the competition of rival lines of water and rail- 
road transportation companies within the State, and 
any and all other matters proper to be considered by 
them; shall make reasonable and just rules and reg- 
ulations to be observed by all railroad companies doing 
business m this State as to charges at any and all 
stations for the necessary handling and delivering of 
freio^ht; shall make such iust and reasonable rules I'o "^^ke rules as 

c> "> J to charges for 

and regulations as may be necessary for preventing and bagfa^^e!^^^ 

the careless handling of and damage to any parcel of 

baggage to which a check may be affixed as provided 

in section 1970 of The Code of North Carolina, unjust as to unjust dis- 
criminations. 

discrimination in the transportation of freight and 
passengers on the railroads in the State ; shall make 
reasonable and iust rates of charges for use of railroad as to charges for 

carrying freight 

cars carrying any and all kinds of freight and passen- ^nd passengers, 
gers on said railroad, no matter by whom owned or 
carried; and shall make just and reasonable rules and 
regulations to be observed by said railroad companies 
on said railroads to prevent the giving, paying or re- ^ebatTe^tc* ^'""'"^ 
ceiving of any rebate or bonus directly or iadirectly, 
and from misleading or deceiving the public in any 
manner as to the real rates charged for freight or 
passengers; and may make or cause to be furnished 
by the several roads joint through rates upon the J^j^^^ ^^^o^^s^ 
railroads of the State ; and shall make all just and 
reasonable rules, regulations and orders as may be 
necessary for carrying into effect the provisions of 
this act. Any company refusing to comply with any 
rule, regulation or order of the said Railroad Commis- 
sion made in pursuance of this section, shall incur a fioS^df^Mg^'^cdon 
penalty, to be fixed as provided in section 20 of said 
Act of 1891, and all penalties fixed by the Railroad 
Commission in any case shall be recovered as provided 
in the tenth section of said A.ct of 1891. Whenever 



6 BOARD OF RAILROAD COMMISSIONERS. 

an action is instituted by the said Railroad Commission 
against any company, the cause shall be entitled, 
" State of North Carolina on the relation of the Rail- 
road Commission against said company," and when- 
ever such action is instituted upon the complaint of 
any injured person or corporation the case shall be 
entitled, '' State of North Carolina on the relation of 
the Railroad Commission, upon the complaint of such 
injured person or corporation against said company." 
Unlawful to ggc. 6. That it shall be unlawful for any common 

charge more tor ^ 

diTaJci,^etc.^°°^ carrier, subject to the provisions of this act to charge 
or receive any greater compensation ia the aggregate 
for the transportation of passengers or of like kind of 
property under substantially similar circumstances 
and conditions, for a shorter than for a longer distance 
over the same line, in the same direction, the shorter 
being included within the longer distance ; but this 
shall not be construed as authorizing any common 
carrier within the terms of this act to charge and 

Not to charge as rcccive as firreat compensation for a shorter as for a 

much for short as ox 

leng distances. longer dlstaucc : Provided^ however^ that upon appli- 
cation to th'e Commission appointed under the provis- 

speciai cases. jqus of this act such commou carrier may, in special 
cases, after investigation by the Commission, be au- 
thorized to charge less for longer than for shorter dis- 
tances for the transportation of passengers or prop- 

Reiief from opera- ertv ! and the Commissiou may, from time to time, 

tion of this section. "^ ^ ^ ^ ' 

prescribe the extent to which such designated com- 
mon carrier may be relieved from the operation of 
this section of this act : Provided^ that nothing in this 
act contained shall be taken as in any manner abridg- 
interstate trans- iug or coutrolling the ratcs of freight charged by any 

portation of 

freight. railroad in this State for conveying freight which 

comes from or goes beyond the boundaries of the 
State, and on which freight less than local rates on 
any railroad carrying the same are charged by such 
railroads, but said railroad companies shall possess 
the same power and right to charge such rates for 



RAILROAD COMMISSION ACT. 7 

carrying such freight as they possessed before the 
passage of this act: Provided further^ however^ that 
upon the complaint of any person or persons, corpora- 
tion or corporations, to said Commissioners of any 
unjust discrimination in carrying freight which comes 
from or goes beyond the boundaries of the State by 
any railroad company, whether organized under the 
laws of this State or organized under the laws of an- 
other State and doing business in this State, the said 
Commissioners shall investigate said complaint, and, to investigate 

^ X :• 7 complaints as to 

if the same be sustained, it shall be the duty of said ofSghT.anf 
Commissioners to bring said complaint before the S in1er°st^a"l"''°" 

Tj-j-x/^ ' ' £ J • a 'i-i. Commerce Com- 

Interstate Commission for redress m accordance with mission. 
the provisions of the act of Congress establishing said 
Interstate Commerce Commission: Provided further^ 
that the Eailroad Commissioners conjointly with such 
companies shall have authority to make special rates special rates for 

•^ ^ X development of 

for the purpose of developing all manufacturing, min- SJ^^^prove"^' 
ing, milling and internal improvements in the State : ™^"^^- 
Provided further, that nothing in this act shall pro- 
hibit railroad or steamboat companies from making 
special passenger rates with excursion or other par- special excursion 
ties, also rates on such freights as are necessary for 
the comfort of such parties, subject to the approval 
of the Commissioners. 

Sec. 7. That the said Commissioners are hereby Si'kS'ratlToY^ ^"^ 
authorized and required to make for each of the said po?t?t1on°of pS-^" 
companies doing business in this State, as soon as f?5|ht^ ^""^ 
practicable, just and reasonable rates of charges for 
transportation of passengers and freights and cars on 
each of the railroads, or cause the same to be made 
by said companies, and the schedule containing said |jJ;^^"^j^to be, 
rates shall, in suits brought against any such company and^easoSe- 
wherein is involved the charges of any such com- °^^^°^'^^^^^' 
pany for the transportation of any passenger or freight 
or cars, or unjust discrimination in relation thereto, 
be taken in all Courts of this State as prima facie evi- 
dence that the rates therein fixed are just and rea- 



BOARD OF RAILROAD COMMISSIONERS. 



Change of 
schedules. 



Companies to post 
schedules at 
stations. 

Schedules to be 
prima facie evi- 
dence, etc. 



Appeal by com- 
pany. 



Exceptions to be 
filed. 



Notice of appeal. 



Commissioners to 
transmit record, 
etc. 



sonable rates of charges for the transport ation of pas- 
sengers and freights and cars upon the raHroads ; and 
said Commissioners shall from time to time, and as 
often as circumstances may require, change and re- 
vise or cause to be changed and revised said sched- 
ules. AVhen any schedule shall have been made or 
revised as aforesaid, it shall be the duty of all such 
companies to post at all their respective stations in a 
conspicuous place a copy of said schedule for the in- 
formation of the people. All such schedules as afore- 
said shall be received and held in all such suits as 
prima facie evidence the schedules of said Commis- 
sioners, without further proof than the production of 
the schedules desired to be used as evidence, with a 
certificate of the Commissioners that the same is a 
true copy of the schedule prepared or approved by 
them for the railroad company or corporation therein 
named : Provided, that any company may appeal to 
the Judge of the Superior Court in term-time and 
thence to the Supreme Court from any determin,ation 
of the Board fixing or refusing to change the rate of 
freight or fare ; but that before such company shall be 
allowed to exercise this right of appeal, it shall, within 
ten days after notice of the rates fixed by the Com- 
missioners, file with the Board exceptions to the par- 
ticulars that it objects to, and the grounds thereof, 
and within ten days after filing such exception the 
Commissioners shall hear the same, and if they shall 
overrule any one of said exceptions, then such cor- 
poration, if it desires to appeal to said Superior Court, 
shall, within ten days thereafter, give notice of ap- 
peal to said Superior Court, and the said Commis- 
sioners shall thereupon transmit to the Superior Court 
of some county most convenient to all parties inter 
ested in said appeal a record of their determinations of 
the rates of said corporation, with the exception of the 
company and their decisions thereon, and all the pa- 
pers and evidence considered by them in making their 



RAILROAD COMMISSION ACT. \) 

decision. The said cause shall be placed on the civil 

issue docket of said Court and shall have precedence pfecedelTce^''''^ 

of other civil actions, and shall be tried under the how tried. 

same rules and regulations as are prescribed for the 

trial of other civil causes, except that the rates fixed 

by the Commissioners shall he prima facie just and 

fair : Provided, the appeal may, by consent of the Appeals heard in 

' i ^ J ^ J chambers by con- 

Commissioners and the company, be heard and deter- ^^"*- 
mined in chambers before any Judge of a district 
through or into v^hich the railroad may extend, or 
any Judge holding Court therein. The cause shall be 
entitled " State of North Carolina on the relation of Tuie of cause. 
the Railroad Commissioners against such company." 
Either party may appeal to the Supreme Court from Appeal to supreme 
the judgment of the Superior Court under the same 
rules and regulations as prescribed by law for appeal, 
except that the State of North Carolina, if it shall 
appeal, shall not be reijuired to give an undertaking 
or make any deposits to secure tbe cost of such ap- 
peal; and such Court may advance the cause on their ^a1i7e°ondS?ke°t^ 
docket so as to give the same a speedy hearing: Pro- 
videdy that the rates of freight and fare fixed by the com^fssfo^nefs to 
Commissioners shall be and remain the established r?™rsed"on appeal, 
rates, and shall be so observed and regarded by such melundS't^king, 
corporations, until the same shall be changed, re- 
versed or modified by the judgment of the Superior 
Court, unless the railroad company shall, within fif- 
teen days, file with said Commissioners a justified 
undertaking (in a sum to be fixed by said Commis- 
sioners) conditioned to pay into the Treasury of North 
Carolina the difference between the aggregate freights 
charged or received and those fixed by said Commis- 
sioners, and to make a report of freights charged or 
received every three months during the pendency of 
such appeal, and whenever the aforesaid difference 
in freights equals or exceeds the penalty of such un- 
dertaking or undertakings, said Commissioners may undertTkfng 
require another to be executed and filed with them. 



10 



BOARD OF RAILROAD COMMISSIONERS. 



Judfirment vacated 
on filing of 
undertaking. 



jment revived 
on failure to file 
additional 
undertaking. 



Refunding to 
shippers. 



Proviso. 



Suit on under- 
taking. 



Rates, when ap- 
proved on appeal 
to Superior Court 
to be established 
rates, until re- 
versed on appeal 
to Supreme Court. 



No Judge to grant 
injunction unless 
requiring under- 
taking to be filed 
with Commis- 
sioners, etc. 



Conditions of 
undertaking. 



From the time the undertaking first mentioned is filed 
as aforesaid, the judgment appealed from shall be 
vacated, but a failure for ten days to file any addi- 
tional undertaking required as aforesaid by said Com- 
missioners shall eo instanti revive such judgment. 
Out of the funds paid into said Treasury under this 
section shall be refunded to shippers the overpaid 
freight ascertained by the final determination of the 
appeal, on the recommendation of said Commission- 
ers: Provided^ application therefor is made within 
one year from such final determination. Said under- 
taking shall be payable to the State of North Carolina 
and sued on as other undertakings which are payable to 
said State : And provided further^ that such rates fixed 
by the Commissioners, when approved or confirmed 
by the judgment of the Superior Court, shall be and 
remain the established rates and shall be so observed 
and regarded by such corporation until the same shall 
be changed, revised or modified by the final judg- 
ment of the Supreme Court if there shall be an ap- 
peal thereto. No Judge shall grant an injunction, 
restraining order or other process staying or affecting, 
during the pending of such appeal, the enforcement 
of any such determination of the said Board fixing 
rates or fares without requiring as a condition pre- 
cedent the executing and filing with said Board a 
justified undertaking in the sum of not less than 
twenty- five thousand dollars for all companies whose 
road is of less length than fifty miles and fifty thou- 
sand dollars for companies whose road is over fifty 
miles in length, conditioned that the company will 
make and file with said Board a sworn statement 
every three months, during the pending of said ap- 
peal, of the items of freight, with names of shippers, 
carried over said company's road within the preceding 
ninety days, showing the freights charged and those 
fixed by said Board, and that in the event the deter- 
mination of said Board appealed from is affirmed in 



RAILROAD COMMISSION ACT. • 11 

part or in whole the said company shall within thirty 
days pay into the Treasury of North Carolina the ag- 
gregate difference between the freights collected and 
those fixed by the final determination of the matter 
appealed. Whenever the aggregate difference be- Additional 

undertaking. 

tween the freights collected and those fixed by the 
Board shall equal or exceed the sum specified in said 
undertaking, the said Board shall notify the appellant 
or appellants that another justified undertaking in 
like sum and with the same conditions as aforesaid is 
required to be executed and filed with said Board. 
A failure to file with said Board the sworn statement when injunction 

to be deemed 

provided for in this section or any one of them when vacated, etc. 
more than one is required or asked for, or a failure 
to give an additional undertaking when required 
within fifteen days from notice so to do, shall vacate 
and render null and void any restraining order, in- 
junction or other process to stay the enforcement of 
any determination of said Board as to schedules of ^'^iJj°° °^ ""^''''' 
rates, etc. When any of the conditions of such un- 
dertaking or undertakings are broken the said under- 
taking or undertakings may be sued on and enforced 
in the name of the State of North Carolina on the 
relation of the Attorney-General by summons return- 
able to the Superior Court of any county in the State 
at a regular term thereof. In cases where the sworn 
statements herein required to be made are not made, 
the whole penalty of the undertaking or undertak- 
ings shall be enforced and paid into the State Treas- 
ury. The sums paid into the Treasury under the f^^^^^^f ^"'^"^ °^ 
provisions of this section shall be used to reimburse 
the shippers of freights for the excess of freights paid 
over what should have been paid, such reimburse- 
ments to be made on recommendation of said Board : 
Provided^ application therefor is made within one proviso. 
year after the determination of the appeal in which 
the undertaking or undertaking's were 2:1 ven. The Application of 

<-" o o recovery on 

recovery in each undertaking shall be applied as afore- undertaking. 



12 



BOARD OF RAILROAD COMMISSIONERS. 



Solicitor to prose- 
cute action. 



Attorney-General 
to prosecute on 
appeal to Supreme 
Court. 



Companies to file 
schedule of rates 
with Commission- 
ers within thirty 
days after organi- 
zation. 

Commissioners to 
publish. 



Duties of Commis- 
,si oners. 



Empowered to 
examine officers, 
etc., under oath, 
etc. 



said to such excess of freights as is paid during the 
period covered by such undertaking. The Sohcitor of 
the district shall prosecute the action in his Court on 
behalf of the State, and shall be allowed such fees, 
to be taxed in the bill of costs, as the Court may or- 
der; and the Attorney-General shall prosecute on ap- 
peal to the Supreme Court on behalf of the State and 
shall be allowed such fees, to be taxed in the bill of 
costs, as the Court shall allow. Each railroad corpo- 
ration or other company as hereinbefore named shall, 
within thirty days after the organization of the Com- 
missioners, file with said Commissioners a schedule 
of their rates of charges for freight and passenger 
tariffs, and the said Commissioners are authorized and 
required to publish the said rates or a summary 
thereof in some convenient form for the information 
of the public and quarterly thereafter the changes 
made in said schedules if they deem it advisable. 

Sec. 8. That it shall be the duty of said Commis- 
sioners in the discharge of their duties under this act 
to investigate the books and papers of all the railroad 
companies doing business in the State, to ascertain if 
the rules and regulations aforesaid haye been com- 
plied with and to make personal visitations of railroad 
offices, stations and other places of business for the 
purpose of examination and to make rules and regu- 
lations concerning such examinations, which rules and 
regulations shall be observed and obeyed as other 
rules and regulations. Said Commissioners shall have 
full power and authority to examine all officers, 
agents and employees of said railroad companies and 
other persons, under oath or otherwise, in order to 
procure the necessary information to make just and 
reasonable rates of freight and passenger tariffs and 
to ascertain if such rules and regulations are observed 
or violated, and to make necessary and proper rules 
and regulations concerning such examinations, and 
which rules and regulations herein provided for shall 



RAILROAD COMMISSION ACT: 13 

be obeyed and enforced as all other rules and regula- 
tions provided for in this act. 

Sec. 9. That all contracts and ao;reements between contracts between 

" railroad companies 

railroad companies doing business in this State as to submSS tS com- 
rates of freight and passenger tariffs shall be submit- °^^^^i°"-^' ^^^• 
ted to said Commissioners for inspection and correc- 
tion that it may be seen whether or not they are a 
violation of lav/ or of the provisions of this act, or of 
the rules and regulations of said Commissioners ; and 
all arrans-ements and aprreements whatever as to the Arrangements. 

" ^ etc., tor division of 

division of earnings of any kind by competing rail- ^^^^^3§^|/^^/^^ ^"^■ 
road companies doing business in this State shall be 
submitted to said Commissioners for inspection and 
approval in S3 far as they affect rules and regulations 
made, by said Commissioners to secure to all persons 
doing business with said companies just and reason- 
able rates of freight and passenger tariffs, and said ma'S^ii^ies^ary^^ 
Commissioners may make such rules and regulations '^"^^^' ^^'^^ 
as to such contracts and agreements as may then be 
deemed necessary and proper, and any such agree- 
ments not approved by such Commissioners, or bv Agreement not 

" approved b}^ 

virtue of which rates shall be charged exceeding the 5e™med vfoiV-° 
rates fixed for freight and passengers, shall be deemed, ^^°" °^^^'^ ^'^^• 
held and taken to be violations of this act, and shall 
be illegal and void. 

Sec. 10. That if any railroad company doing busi- penalty against 

•^ i »y CI5 company violating 

ness in this State by its agents or employees shall be [o mlkel-e^com-" 
guilty of a violation of the rules and regulations pro- ^^"^^' 
vided and prescribed by said Commissioners, and if, 
after due notice of such violation, given to the prin- 
cipal officer thereof, if residing in the State, and if 
not, to the manager, or superintendent, or secretary, 
or treasurer, if residing in the State, and if not, then 
to any local agent thereof, ample and full recompense 
for the wrong or injury done thereby to any person 
or corporation as may be directed by said Commis- 
sioners shall not be made within thirty days from the 
time of such notice, such company shall incure a pen- 



14: 



BOARD OF RAILROAD COMMISSIONERS. 



Action to recover 
penalty. 



Commissioners to 
institute action. 



Fees of Attorney- 
General or 
Solicitor. 



Action by person 
i'ljured by viola- 
tion by railroad 
c jmpany of rules 
provided by Com- 
missioners. 



Exemplary dam- 
ages. 



alty for each offence of Qot less than fifty dollars nor 
more than five thousand dollars, to be fixed by the 
judge of the court in which such acfcion shall be tried. 
An action for the recovery of any penalty under this 
act shall be in the county in which said penalty has 
been incurred, and shall be instituted in the name of 
the State of North Carolina on the relation of the 
Eailroad Commissioners against the company incur- 
ring such penalty, or whenever such action is upon 
the complaint of any injured person or corporation, 
it shall be instituted in the name of the State ot 
North Carolina on the relation of the Railroad Com- 
missioners upon the complaint of such injured per- 
son, or corporation, against the company incurring 
such penalty. Such action shall be instituted and 
prosecuted by the Attorney-General, or the Solicitor 
of the Judicial District in which such penalty has 
been incurred, and the Judge before the same is 
tried shall determine the amount of compensation to 
be allowed the Attorne^^- General or such Solicitor 
prosecuting said action for his services, and such 
compensation so determined shall be taxed as a part 
of the cost. The procedure in such actions, the right 
of appeals and the rules regulating appeals shall be 
the same as are now provided by law i'n other civil 
actions. 

Sec. 11. That if any railroad company doing busi- 
ness in this State shall, in violation of any rule or reg- 
ulation provided by the Commissioners aforesaid, in- 
flict any wrong or injury on any person, such person 
shall have a right of action and recovery for such 
wrong or injury in the county where the same was 
done or where the plaintiff resides, in any court hav- 
ing jurisdiction thereof, and the damages to be recov- 
ered shall be the same as an action between individ- 
uals, except that in case of willful violation of law 
such railroad companies shall be liable to exemplary 
damages : Provided^ that all suits under this act shall 



RAILROAD COMMISSION ACT. 15 

be brought within twelve months after the commis- Si°twewe"^^^ 
sion of the alleged wrong or injury : Provided further, Ton^\\^d^{^l' 
that if an individual is killed, the time during which tlfatlSrTSot Sb'e^^' 

counted, if letters 

there is no administration shall not be counted : Pro- of administration 

taken out m one 

vided, letters of administration are taken out within y^^^- 
one year from the killing. 

Sec. 12. That in all cases under the provisions of ^"'^'''^^''''^^"''^• 
this act the rules of evidence shall be the same as in 
civil actions, except as provided by this act. All fines 
recovered under the provisions of this act shall be 
paid into the State Treasury to be used for such pur- ^tX^^reSul^ ""° 
poses as the General Assembly may provide. The 
remedies hereby given the persons injured shall be 
regarded as cumulative to the remedies now given Remedies cumuia- 
or may be given by law against railroad corporations, no statutes giving 

remedies against 

and this act shall not be construed as repealing any railroads repealed. 
statute giving such remedies. 



Sec. 13. That the terms "such cojnpanies" or ''rail- ^Splmes-- am 



such 
companies" and 

road company" contained in this act shall be deemed " "^^'^^^^ ^°"^- 



pany. 



and taken to mean all corporations, companies or in- 
dividuals now owning or operating, or which may 
hereafter own or operate, any railroad, street rail- 
ways, steamboat, canal, express business or telegraph 
and telephone line, in whole or in part in this State, 
and the provisions of this act shall apply as far as J° 7of°thi?act'^" 
applicable to all persons, firms and companies, and applicable. 
to all associations or persons, whether incorporated 
or otherwise, that shall do business as common car- 
riers in this State the same as railroad corporations 
hereinbefore mentioned. This shall not apply to 
street railways whose lines are wholly in the corporate 
limits of any town, unless said street railway does a 
business of hauling freight. 

Sec. 14. That all railroad companies in this State Railroad com- 
panies to give 

shall, on demand, issue duplicate freight receipts to ^ec^'/^g^ ^""^^^^^^ 
shippers, in which shall be stated the class or classes 
of freight shipped, the freight charges over the road 
giving the receipt, and, so far as practicable, shall 



16 



BOARD OF RAILROAD COMMISSIONERS. 



What to contain. 



To deliver freight 
shipped. 



Penalty for viola- 
tion of this section, 



Commissioners to 
make annual re- 
ports to Governor. 



One thousand 
copies to be 
printed 

Commissioners 
empowered to 
subpoena wit- 



Witness fees. 



How paid. 



Attachment 
again.>«t witness 
failing to attend. 



Punishment for 
contempt. 



state the freight charges over the roads that carry 
such freight. When the consignee presents the rail- 
road receipt to the agent of the railroad that dehvers 
such freight, such agent shall deliver the articles 
shipped upon payment of the rate charged for the 
class of freight mentioned in the receipt. If any rail- 
road company shall violate the provisions of this stat- 
ute, not otherwise provided for, such railroad com- 
])any shall incur a penalty, to be fixed and collected 
as provided in section ten of this act. 

Sec. 15. That it shall be the duty of the Commis- 
sioners herein provided for to make to the Governor 
annual reports of the transactions of their office, and 
to recommend, from time to time, such legislation as 
they may deem advisable under the provisions of this 
act, and the Governor shall have one thousand copies 
of such report printed for distribution. 

Sec. 16. That said Railroad Commissioners in mak- 
ing any examination for the purpose of obtaining in- 
formation pursuant to this act shall have power to is- 
sue subpoenas for the attendance of witnesses by such 
rules as they may prescribe ; and said witness shall re- 
ceive for such attendance two dollars per day and five 
cents per mile traveled by the nearest practicable route 
in going to and returning from the place of meet- 
ing of said Commissioners, to be ordered paid by the 
Governor upon presentation of subpoenas sworn to by 
the witnesses, as to the number of days served and 
miles traveled, before the Clerk of said Commissioners, 
who is hereby authorized to administer oaths. In 
case any person shall willfully fail or refuse to obey 
such subpoenas, the Commissioners shall have power 
to issue an attachment for such witness and compel 
him to attend before the Commissioners and give his 
testimony upon such matters as shall be lawfully 
required by such Commissioners; and said Commis- 
sioners shall have power to punish, for contempt, as 
in other cases of refusal to obey the process and order 



I 



North Carolina S»ate Library 
Raleigh 

RAILROAD COMMISSION ACT. 17 

of any Court. The Clerk of said Commissioners may g;''JiJJk°^"°'^^"' 

serve any notice issued by them, and his return 

thereof shall be evidence of said service ; and it shall 

be the duty of the Sheriffs in the State to serve any Duty of sheriffs to 

•^ '^ serve process. 

process, subpoenas and notices issued by said Com- 
missioners, and they shall be entitled therefor to the 
same fees as are prescribed, or may bo prescribed, for Fees. 
serving summons issuing from the Superior Court, 
and they shall be liable to the same fines and penal- ^/^^^^'^^y ^o tines, 
ties for failure to discharge their duties on that be- 
half. 

Sec. 17. That every officer, agent or employee of p^»j.|^^ty^against 
any railroad company, express or telegraph company, ^nfuiiy fSR^to 
who shall willfully neglect or refuse to make and fur- --^^ ^^p^-^^- ^^c. 
nish any report required by the Commissioners for 
the purpose of this act, or who shall willfully or un- 
lawfully hinder, delay or obstruct said Commissioners 
in the discharge of the duties hereby imposed upon 
them, shall forfeit and pay a sum not less than one 
hundred and not more than five thousand dollars for 
each offence, to be recovered in an action in the name ^ow recovered. 
of the State. A delay of ten days to make and fur- 
nish such report shall raise the presumption that the wififuUaiiS?e°^ 
•same was willful. 

Sec. 18. That section one thousand nine hundred ^°,t^Jg^°" ^961, 

and sixty- one of The Code be amended by striking [eXc^tSn'Jfrat^s 
out all after the word "road" in the third line thereof, less than six per 

cent repealed. 

and all other laws and parts of laws which allow any ah laws allowing 

^ "^ railroads to charge 

railroad to charge [a greater] rate for freight or fare J^^lJgJ ""l^ll b'Jf" 
than shall be fixed by the said Commissioners are ?e^Sed.'°°^'^^ 
hereby repealed, and all laws and parts of laws in- re°p"eaied?^ ^^^^ 
consistent with the provisions of this act are hereby 
repealed. 

Sec. 19. The Commissioners, whenever in their SSt"fycompanies° 
judgment any corporation has violated or neglected te?ms'Sf this act, 
in any respect to comply with the terms of the act Attorney-General. 
by which it was created, or with the provisions of 
any law of the State not provided for in this act, 
1^ 2 



18 



BOARD OF RAILROAD COIVIMISSIONERS. 



Commissioners to 
notify companies 
in writing of nec- 
essary repairs, 
change of station, 
etc. 



Penalty for failure 
to comply. 



Railroad not to 
abandon station, 
etc , established 
for a year, etc., 
without consent 
of majority of 
Commi«;sioners. 



Railroad may 
relocate station, 
etc., with written 
approval of Com- 



missioners. 



Commissioners 
may require sep 
arate and equal 
accommodations 
for white and 
colored 



Penalty for failure 



shall give notice thereof in writing to such corpora- 
tions, and if the violation or neglect is continued 
after such notice, shall forthwith present the facts to 
the Attorney-General, who shall take such proceed- 
ings thereon as he may deern expedient. 

Sec. 20. The Commissioners, whenever they deem 
that repairs are necessary upon any railroad, or an 
addition to or change of its station or station-houses 
is reasonable and expedient in order to promote the 
security, convenience and accommodation of the pub- 
lic, shall in writing inform the corporation of the 
improvement and changes which it considers to be 
proper, and upon the failure or refusal of said corpo- 
ration to comply with said requirement the said cor- 
poration shall be liable to the penalty of not less than 
fifty dollars nor more than two thousand dollars, in 
the discretion of said Commissioners. 

Sec. 21. A railroad corporation which has estab- 
lished and maintained for a year a passenger station 
or freight depot at a point upon its road shall not 
abandon such station or depot nor substantially di- 
minish the accommodation furnished by the stopping 
of trains, except by consent of a majority of the Com- 
missioners. 

Sec. 22. A railroad corporation may relocate pas- 
senger or freight depots with the approval, in writ- 
ing, of the Commissioners. 

Sec. 23. That said Commissioners shall have power, 
whenever they deem it expedient and practicable, to 
require any railroad corporation operating a railroad 
or part of a railroad in this State to provide separate 
and equal accommodations for the white and colored 
races on the passenger trains, and also at the pas- 
senger stations or waiting-rooms in this State, and 
for failure to comply with the orders of said Commis- 
sioners made under this section the penalty prescribed 
in section twenty of this act shall be imposed. 



RAILROAD COMMISSION ACT. 19 

Sec. 2i. All common carriers subject to the provis- JiTffb?crfacmues 
ions of this act shall, accoidingto their powers, afford Saffic.^eS''"^^ °^ 
all reasonable, proper and equal facilities for the in- 
terchange of traffic between their respective lines and 
for the forwarding and delivering of passengers and 
freights to and from their several lines and those 
connecting therewith, and shall not discriminate in 
their rates and charges against such connecting lines, connecting lines 

c5 o c5 ' to make close 

and connecting lines shall be required to make as '^^"nection. 

close connection as practicable for the convenience of 

the traveling public. And said common carriers shall 

obey all rules and regulations made by said Commis- foobeyruies 

^' ci J relating to track- 

sioners relating to trackage. Any violation of the ^^^• 
provisions of this section shall be punished at the dis- 
cretion of said Commissioners by a fine of not less fenaity for vio- 

•^ lation of this 

than five hundred dollars or exceeding five thousand '^^'^'^«"- 
dollars for each and every offence. 

Sec. 25. That nothing in this act shall prevent the p?Jp?r?y hie'of 
carriage, storage or handling of property free or at ?oV unit Jd states, 
reduced rates for the United States, State or mum- prohibited. "°^ 
cipal governments, or for charitable purposes, or to 
or from fairs or exhibitions for exhibition thereat, or 
the free carriage of destitute and homeless persons 
transported by charitable societies and the necessary 
agents employed in such transportation, or the free 
transportation of persons traveling in the interest of 
orphan asylums or any department thereof, or the 
issuance of mileage, excursion or commutation pas- 
senger tickets; nothing in this act shall be construed ^cl^^^^^'^^^*^' 
to prohibit any common carrier from giving reduced ^eVS pe?sons° 
rates to ministers of religion, or to municipal gov- 
ernments for the transportation of indigent persons, 
or to inmates of National homes or State homes for 
disabled volunteer soldiers and of soldiers and sailors' 
orphan homes, including those about to enter and 
those returning home after discharge, under arrange- 
ments with the boards of managers of said homes; 
nothing in this act shall be construed to prevent rail- 



20 



BOARD OF RAILROAD COMMISSIONERS. 



Free carriage to 
own officers, etc. 



Interchange of 
passes. 



Remedies at com- 
mon law or by 
statute not 
abridged. 



Commissioners 
empowered to 
suspend this 
section, etc. 



Commissioners to 
make rales for 
transportation of 
packages by ex- 
press companies. 



To make rates for 
transmission of 
messages by tele- 
graph lines 



Penalty for 
charging higher 
rates. 



Action to recover 
penalty. 



Provisions of sec- 
tion 7 applicable 
to express au'l 
telegraph com- 
panies. 



roads from giving free carriage to their own officers 
and employees, or to prevent the principal officers of 
any railroad company or companies from exchanging 
passes or tickets v^ith other railroad companies for 
their officers or employees; and nothing in this act 
contained shall in any way abridge or alter the reme- 
dies now existing at common-law or by statute, but 
the provisions of this act are in addition to such 
remedies: Provided, that the Commissioners shall 
have power to suspend any or all the provisions of 
this section after thirty days' notice to any company. 
Sec. 26. That said Commissioners are hereby au- 
thorized and required to make or cause to be made 
just and reasonable rates of charges for the transpor- 
tation of packages by any express company or com- 
panies doing business in the State; also make or 
cause to be made just and reasonable rates of charges 
for the transmission of messages by any telegraph or 
telephone line or lines doing business in the State, and 
also authorized to require said telegraph companies 
to locate agencies at railroad stations, and extend 
their lines and estabhsh agencies not exceeding one 
mile from any railroad station, and shall make or 
cause to be made just and reasonable rules and regu- 
lations for the receiving, forwarding and delivery of 
telegraphic messages, and any such express or tele- 
graph companies charging a higher rate than that 
fixed or approved by said Commissioners, or guilty of 
a violation of the rales and regulations provided and 
prescribed by said Commissioners, shall incur a pen- 
alty for each offence of not less than fifty dollars nor 
more than five hundred dollars for each offence, and 
actions for the recovery of such penalties may be 
brought as provided for in section seven of this act, 
with reference to penalties incurred by railroad com- 
panies; that the provisions of section seven of this 
act in relation to Vv^. publication of schedules, the 
regulations governing the right of appeal, the regu. 



I 



RAILROAD COMMISSION ACT. 21 

lations as to evidence with reference to railroad com- 
panies, shall apply to express and telegraph companies. 

Sec. 27. That all subpoenas for witnesses to appear subpoenas and 

^ ^ ^ notices, how 

before said Commissioners or before any one or more issued and served. 
of said Commissioners, and notice to persons or cor- 
porations shall be issued by one of said Commissioners 
and be directed to any sheriff, constable or marshal of 
any city or town who shall execute the same in his 
bailiwick and make due return thereof as directed 
therein under the penalties prescribed by law for a 
failure to execute and return the process of any 
court; and if any person duly summoned to appear ^1^^^^'^^^^°^^° 
and testify before said Commissioners shall .fail or ^tc.retc"""'''^"^'^' 
refuse to testify without a lawful excuse, or shall 
refuse to answer any proper question propounded to 
him by said Commissioners in the discharge of duty, 
or shall conduct himself in a rude, disrespectful or 
disorderly manner before said Commissioners, or any 
of them, deliberating in the discharge of duty, such 
person shall be deemed guilty of a misdemeanor, and 
upon conviction thereof shall be fined not less than Penalty. 
fifty nor more than one thousand dollars. 

Sec. 28. That all the expenses of the Commissioners Expenses of com- 

^ missioners, how 

except as hereinbefore provided, including all neces- p^^'^- 
sary expenses for transportation incurred by the Com- 
missioners or by their employees under their orders 
in making any investigation, or upon official business, 
or for any other purposes necessary for carrying out 
the provisions of this act shall be allowed, and the 
Auditor shall issue his warrant upon presentation of 
itemized vouchers therefor approved by the chairman 
of the Commission: Provided, that the expenses 
allowed under this section shall not exceed two thou- |J°ooo°an1i''uaiiy 
sand dollars annually : And provided further, when- 
ever by reason of extraordinary efficiency or fitness 
that may be required to discharge the duties of the 
office of the clerk properly, efficiently and satisfac- 
torily to the Commissioners, and the amount provided 



22 



BOARD OF RAILROAD COMMISSIONERS. 



Fiscal year. 



Right of appeal. 



When to be taken 
to Supreme Court. 



Commissioners 
authorized to in- 
vestigate causes 
of railroad acci- 
dents. 



Arbitration of 
controversies by 
Commissioners. 



Award to be final. 



To be docketed 
and have force of 
judgment. 



for in section two of this act should be inadequate to 
obtain this service, and not othervs^ise. the Commis- 
sioners may allow and pay to the clerk of said Com- 
mission out of the remainder of said fund an extra 
allowance not exceeding twenty-five per centum 
above his regular salary in such manner as in their 
judgment they may deem expedient. 

Sec. 29. That the fiscal year to which all reports 
shall be made which may be required of any railroad 
or transportation company by the Commissioners un- 
der this act shall be the thirtieth of June, as now fixed 
by law by the Interstate Commission of the United 
States; Provided, that from all decisions or deteruii- 
nations arising under the operation or enforcement of 
this act the party or corporation affected thereby shall 
be entitled to appeal therefrom as provided in section 
seven of this act, and when no exception is made to 
the facts as found by the Railroad Commission, then 
the appeal shall be taken direct to the Supreme Court. 

Sec. 30. The Commissioners may investigate the 
causes of any accident on a railroad resulting in the 
loss of life, and of any accident, not so resulting, 
which they may deem to require investigation. 

Sec. 31. Whenever any company or corporation 
embraced in this act has a controversy or controver- 
sies with another such company or corporation, or 
person or persons, and all the parties to such contro- 
versy agree in writing to submit such controversy to 
the Railroad Commissioners aforesaid as arbitrators, 
said Commissioners shall act as such, and after due 
notice to all parties interested shall proceed to hear 
the same, and their award shall be final. Said award, 
in cases where land or an interest in land is concerned, 
shall immediately be certified to the Clerk of the Su- 
perior Court of the county in which said land is situ- 
ated and shall by such Clerk be docketed in the judg- 
ment docket for said county, and from such docket- 
ing shall be a judgment of the Superior Court of such 



[ 



RAILROAD COMMISSION ACT. ^8 

county. Before such arbitrators parties may appear ^^^^^^^^"^ l^'^'^l^' 
in person or by attorney. ^^ attorney. 

Sec. 32. That all laws and clauses of [laws] incon- JepSfed*^''^ ^^'^'^ 
sistent with the provisions of this act are hereby re- 
pealed. 

Sec. 33. That this act shall go into effect on and ^ecT '"' '° '"''' 
after the first day of April, eighteen hundred and 
ninety-one. 

Ratified the 5th day of March, A. D. 1891. 



Assessment Act— Chapter 169, Laws 1897. 

Section 42. The Commissioners elected from time Railroad commis- 
sioners to consti- 

to time under the authority of " An act to provide p"a1se?sfor°ratr 
for the general supervision of railroads, steamboat etc.^com^laiiFe^'. 
and canal companies, express and telegraph compa- 
nies doing business in the State of North Carolina," 
shall constitute a board of appraisers and assessors 
for railroad, telegraph, canal and steamboat compa- 
nies. 

Sec. 43. The president, secretary, superintendent rfficeftSmake^^'^ 

,, . . , j'nri '11 • 11 • nj_ i returns to Board. 

or other principal accounting omcer withm this State 
of every telegraph and railroad company, whether in- 
corporated by any law of this State or not, shall re- 
turn to said Commissioners for assessment and taxa- 
tion, verified by the oath or affirmation of the officer 
making the return, all the following-described prop- 
erty belonging to such corporation on the first day of 
June of each year within this State, viz., the num- what property to 

•^ 'be listed. 

ber of miles of such telegraph and railroad lines in 
each county in this State and the total number of 
miles in the State, including the road-bed, right-of- 
way and superstructures thereon , main and side tracks, 
depot buildings and depot grounds, section and tool 
houses, rolling-stock and personal property necessary 
for the construction, repairs or successful operation 
of such telegraph and railroad lines, including also 
all Pullman or sleeping-cars owned by them or oper- 



24 



BOARD OF RAILROAD COMMISSIONERS. 



What property to 
be listed with 
county list-takers. 



List-takers to send 
statement to Board 
if required. 



To send statement 
to Auditor. 



To send local rate 
of taxation to 
Board. 



Mayors to send 
rate of municipal 
taxation. 



Rolling-stock, 
when and how 
listed. 



ated over their lines: Provided, however, that all ma- 
chine and repair shops, general office buildings, store- 
houses, and also all real and personal property outside 
of said right-of-way and depot grounds as aforesaid, 
of and belonging to any such railroad and telegraph 
companies, shall be listed for purposes of taxation by 
the principal officers or agents of such companies with 
the list-takers of the county where said real or per- 
sonal property may be situated, in the manner pro- 
vided by law for the listing and valuation of real and 
personal property. It shall be the duty of the list- 
takers, if required so to do by the said Commissioners, 
to certify and send to the Commissioners on or before 
the third Monday in June in each year a statement 
giving the description of the property mentioned in 
the foregoing proviso, and showing the assessed val- 
uation thereof. The list-taker shall also, on or before 
the same day, send to the Auditor of State a like cer- 
tificate of the assessed valuation and character of said 
property. The list-takers and assessors shall also cer- 
tify to the Commissioners the local rate of taxation 
for county purposes as soon as the same shall be de- 
termined, and such other information obtained in the 
course of the performance of the duties of their office 
as the said Commissioners shall require of them, and 
the mayor of each city or town shall cause to be sent 
to the said Commissioners the local rate of taxation 
for municipal purposes. 

Sec. 44. The movable property belonging to a rail- 
road company shall be denominated for the purpose 
of taxation, ''rolling-stock." Every person, com- 
pany or corporation owning, constructing or operat- 
ing a railroad in this State shall, in the month of 
June annually, return a hst or schedule to the Com- 
missioners, which shall contain a correct detailed in- 
ventory of all the rolling-stock belonging to such 
company, and which shall distinctly set forth the 
number of locomotives of all classes, passenger cars 



RAILROAD COMMISSION ACT. 25 

of all classes, sleeping and dining cars, horse cars, 
cattle cars, coal cars, platform cars, wrecking cars, 
pay cars, hand cars and all other kinds of cars, and 

; the value thereof. And a statement or schedule as schedule. 

'4 follows : 

4 (1.) The amount of capital stock authorized and 

:t the number of shares into which such capital is di- 

'; vided. 

(2.) The amount of capital stock paid up. 

J (3.) The market value, or if no market value, then 

the actual value of the shares of stock. 

(4. ) The length of line operated in each county and 
the total in the State. 

(5.) The total assessed valuation of all its tangible 
property in this State. 

(6.) And all the information heretofore required to 

^ be annually reported by section nineteen hundred and 

fifty-nine of The Code. Such schedules shall be made 

in conformity to such instructions and forms as may 

be prescribed by the Commissioners and with refer- f^^^ructiJi'sTnd^^ 

ence to amounts and values on the first day of Jun^ ^°™''- 

of the year for which the return is made. 

Sec. 45. The said Commissioners shall first deter- Method of valua- 
tion by Board. 

mine the value of each railroad, rolling-stock, and all 
other property, ascertaining such value from the 
earnings as compared with the operating expenses, 
and taking into consideration the value of the fran- 
chise as well as other conditions proper to be consid- 
ered in arriving at the true value of the property, as 
in the case of private property, and the aggregate 
value thus determined shall be apportioned in the same 
proportion that the length of such road in each county 
bears to the entire length thereof; and the Commis- Duty of Board. 
sioners shall certify to the chairman of County Com- 
missioners and the mayor of each city or incorporated 
town the amount apportioned to his county, city or 
town, and the Commissioner shall make and forward 
a like certificate, together with all the reports of the 



26 BOAED OF RAILROAD COMMISSIONERS. 

various railroad officers or copies thereof, and other 
papers and evidence which formed the basis of the 

Jowpalr^'^'"' valuation, to the Auditor of the State. All taxes due 
the State from any railroad company, except the tax 
imposed for school purposes, shall be paid by the 
treasurer of each company directly to the State Treas- 
urer within thirty days after the first day of July of 

When Treasurer to each vear, aud uDou f allurc to pav the State Treasurer 

institute action. j i rr ir ^ 

as aforesaid he shall institute an action to enforce the 
same in the county of Wake or any county in which 
such railroad is located. The Board of County Com- 
missioners of each county through which said railroad 
als^e^led^by county P^ss^^ shall asscss agalust the same only the tax im- 
commissioners. posed by tho State for school purposes and those im- 
posed for county purposes. 
twsstSe^and^''' Sec. ^^. Whcu auy railroad has part of its road in 
how assessed! ^'^' this State and part thereof in any other State, the 
Commissioners shall ascertain the value of railroad 
track, rolling-stock and shares of capital stock of such 
company, and divide it in the proportion the length 
of such road in this State bears to the whole length 
of such road, and determine the value of such rail- 
road track, rolling-stock and shares of capital stock 
in this State accordingly. 
Railroad claiming g^c. 47. Auv rallroad company claiming exemp- 

exemption irom "^ i. j o j 

Surn°" ^° '""^^^ ^io^ from taxation under this act by reason of any 
contract with the State shall, together with and in 
addition, to the return required by the last section, 
make a further return specifying the act or acts of 

^Sw '^^^"'^^ ^° ^^^ General Assembly by which such contract is 
claimed to have been created, and also specifying 
what portion of the property of said railroad company 
is claimed to be exempt from taxation under this act, 
and the particulars as to character, location and value 
of property, if any, admitted to be liable under this 
act. Such returns shall be in no manner conclusive 

gafe,Vt?.'"^^^^'" as to any of the facts therein stated, but said Com- 
missioners shall investigate and determine whether 



RAILROAD COMMISSION ACT. 27 

any, and if any, what portion of the property of such 
company is beyond the power of the State to tax un- 
der this act. The residue of said property, after de- Taxation of resi 
duction of that which is exempt, shall be taxed pur 
suant to the provisions of this act. After the first 
Monday in July the Commissioners shall erive a hear- Board to give 

-J -J ^ ^ hearing, etc. 

ing to all companies interested touching the valuation 
and assessment of their property. The Commissioners 
may, if they see fit. require all arguments and com- 
munications to be presented in writing. 

Sec. 48. If the property of any railroad company Leased joads, how 
be leased or operated by any other corporation, foreign 
or domestic, the property of the lessor or company 
whose property is operated shall be subject to taxa- 
tion in the manner hereinbefore directed, and if the 
lessee or operating company, being a foreign corpora- 
tion, be the owner or possessor of any property in this 
State other than that which it derives from the lessor 
or company whose property is operated, it shall be 
assessed in respect of such property in like manner as 
any domestic railroad company. 

Sec. 49. The Commissioners shall have power to ^olll^m^x^Zil^"^ 
summon and examine witnesses and require that °^*^^'^' ^^^ 
books and papers shall be presented to them for the 
purpose of obtaining such information as may be nec- 
essary to aid in determining the valuation of any rail- 
road property. Any president, secretary, receiver or f^^^^l\f l^^^l 
accouniing officer, servant or agent of any railroad ""sdemeanor. 
or steamboat company having any portion of its prop- 
erty or roadway in this S<tate who shall refuse to at- 
tend before the Commissioners when required to do 
so, or refuse to submit to the inspection of said Com- 
missioners any books or papers of such railroad com- 
pany in his possession, custody or control, or shall 
refuse to answer such questions as may be put to him 
by said Commissioners, or order touching the busi- 
ness, property, moneys and credits and the value 
thereof of said railroad company, shall be guilty of a 



28 BOARD OF RAILROAD COMMISSIONERS. 

misdemeanor, and on conviction thereof before any 
court of competent jurisdiction shall be confined in 

Penalty. ^j^^ j^ll ^^ ^y^e couuty uot exceediug thirty days and 

be fined in any sum not exceeding five hundred dol- 
lars and costs ; and any president, secretary, receiver, 
accounting ofiicer, servant or agent aforesaid so re- 

proceeding for f usinsT as aforcsaid shall be deemed guilty of contempt 

contempt. ^ G J r 

of such Commissioners and may be confined by order 

of said Commissioners in the jail of the proper county 

until be shall comply with such order and pay the 

cost of his imprisonment. 

Smpany^w ^EC. 50. Tho valuc of thc shares of capital stock of 

any canal company, the property of all canal and 

steamboat companies in this State shall be assessed 

for taxation as above provided for railroads. In case 

?ffi/er\"Jre°turn auy ofiicer falls to return the property as provided in 

llsess.^^' ^^^^ ^° this section, the Commissioners shall ascertain the 

length of such property in this State and shall assess 

the same in proportion to length at the highest rate 

at which property of that kind is assessed by them. 



An Act to make the Railroad Commisslan a Coiirt of Record. 
The General Assembly of North Carolina do enact : 

Section 1. That the Railroad Commissioners elected 
at this General Assembly, and successors in office, be 
and they are hereby created and constituted a Court 
of Record inferior to the Supreme Court, and shall be 
known as the Board of Railroad Commissioners, and 
as such shall have all the powers and jurisdiction of 
a Court of general jurisdiction as to all subjects em- 
braced in the act creating such Railroad Commission 
heretofore passed, and shall have a common seal. 

Sec. 2. This act shall be in force from and after the 
first day of April, 1891. 



RAILROAD COMMISSION ACT. 29 

An Act to Amend Chapter Forty-nine of The Code. 
The General Assembly of North Carolina do enact : 
Section 1. That the Board of RaHroad Comniis- Railroad commis- 

sioners authorized 

sioners of North Carolina are hereby empowered, cSmpaniestoTuli 
whenever it shall appear wise and proper so to do, to ^^^* "'^'' ^""""'"^ 
authorize, allow and permit any railroad company 
operating in this State to run one or more fast mail 
trains over its road which shall only stop at such sta- 
tions on the line of the road as may be designated by 
the company : Provided, that in addition to such fast proviso. 
mail train said railroad shall run at least one passen- 
ger train in each direction over its road on every day 
except Sunday, which shall stop at every station on 
the road at which passengers may wish to be taken 
up or put off : Provided, nothing in this act shall be proviso. 
construed to authorize any company, persons or cor- 
porations to run any trains over the Petersburg Rail- 
road between Weldon aod the State line after the ex- 
piration of the extension of the charter granted to 
that company by this State in one thousand eight 
hundred and ninety-one, unless and until the charter 
of said Petersburg Railroad shall be renewed by this 
General Assembly : Provided further, that nothing in Proviso. 
this act shall be construed as preventing the running 
of local passenger trains on Sunday. 

Sec. 2. That this act shall be in force from and after 
its ratification. 

Ratified the 9th day of February, A. D. 1893. 



An Act in F.egsrd to the Delivery of Freight. 
The General Assembly of North Carolina do evMct : 
Section 1 . That whenever any sroods, articles of on partial delivery 

•^ ^ ' of freight to con- 

freight of any kind shall be received by anv common ^jgnee by common 

<~> 'J J ^ earner, not lawful 

carrier in this State to be delivered to any consignee char^t'onunife^^ 
in this State, and a portion of the same shall not have li^^^^^p^^tion.etc. 
been received at tKe place of destination, it shall not 



30 



BOARD OF RAILROAD COMMISSIONERS. 



stoppage 
in transitu. 



Railroad Commis- 
sioners to enforce 
act. 



be lawful for the carrier to demand any part of the 
charges for freight or transportation due for such 
portion of the shipment as shall not have reached the 
place of destination. The carrier shall be required to 
deliver to the coDsignee such portion of the consign- 
ment as shall have been received upon the payment 
or tender of the freight charges due upon such por- 
tion. Bat nothing in this act shall be construed as 
interfering with or depriving a consignor, or other 
person having authority, to his rights of stoppage in 
transitu. 

Sec. 2. The Railroad Commissioners shall enforce 
the enforcement of the provisions of this act by ap- 
propriate regulations, and this act shall be in force 
from and after its ratification. 

Ratified the 6th dav of March, A. D. 1893. 



Code, section 1959, 
amended. 



An Act to Amend Section One Thousand S^ine Hundred and Fifty-nine of 
The Code, Requirs ig Railroad C3in;3anies to Render Annual Reports to 
the Governor of the Operations for the Year. 

The General Assembly of North Carolina do enact : 

Section 1. That section one thousand nine hun- 
dred and fifty-nine of The Code be and the same is 
hereby amended by adding the following at the end 
of said section: " Provided, that if the report herein 
Annual reports of mentioucd shall be made to the Board of Railroad 

railroad companies 

may be made to Commissiouers instead of to the Governor, it shall be 
deemed a sufiicient compliance with the requirements 
of this section." 

Sec. 2. That this act shall be in force from and 
after its ratification. 

Ratified the 14th day of February, A. D. 1893. 



Kailruad Commis- 
sioners 



INDEX RAILROAD COMMISSION ACT, 



Sec. 
Accidents — Coinniissioners iiiaj' investigate^ 30 
Advantage or preference, undue or unrea- 
sonable, forbidden 4 

Advancement of cases on docket 7 

Action — limitation as to time of bringing — 11 
Agreements and contracts to be submitted to 

the Commission 9 

not approved by Commission a violation, 9 

Appeal— right of given 7-29 

notice of 7 

undertaking on ^1_- 7 

to Supreme Court 29 

heard in chambers by consent 7 

to have precedence and how tried 7 

Arbitration — of controversies by Commis- 
sion 31 

Attorney-General— to prosecute for recovery' 
of undertaking on appeal to the Su- 
preme Court 7 

fees of, for services 7-10 

Commissioners to present facts of viola 

tion of Act to 19 

Award— of a'bitration by Commissioners to 
be docketed and have force of judg 

ment 31 

Books and Papers- pi oduction of, and Com- 

mi.xsioners to investigate 8 

Chambers— appeal heard in by cotisent 7 

Chairman of Railroad Commission — General 

Assembly to designate 2 

Clerk— Commissioners may appoint 2 

salary of 2 

to serve notices 16 

Code— section 1961 amended 18 

ceitain sections repealed 18 

Commission a Court of Record 7 

Commissioners - elected by General Assem- 
bly I 

General Asstmbly to designate Chair- 
man 2 

term of office i 

vacancies how filled 1-2 

oath of office of 1 

who eligible to election i 

duties of 8 

Commissioners- salary of 2 

when Governor may suspend and rein- 
state I 

authorized to administer oaths 2 

may employ Clerk 2 

may administer oaths 2-8 

may subpoena witness 16 



Sec. 
Commission ers — con tin ued. 

expenses of, how paid 2S 

to make annual report 15 

to make rates of freight and passenger 

tariffs 5-7 

to make rules as to charges for handling 

freight 5 

to prevent giving rebates 5 

to investigate interstate rates 6 

to transmit record on appeal 7 

contracts between railroads to be sub- 
mitted to 9 

division of earnings to be submitted tO-- 9 
to make rules and regulations as to con- 
tracts^ 9 

to notify corporations of violation of Act. 19 
to notify in writing, for repairs, etc. , of 

stations 20 

separate apartments for whites and 

iiegroes 23 

may suspend Section 25 of this Act 25 

to make rates for express and telegraph 

companies 26 

may investigate railroad accidents 30 

may arbitrate causes and make awards- 31 

to publish rates of railroads 7 

to investigate books and papers S 

empowered to examine officers under 

oath S 

Common Carriers— to aflford facilities for in- 
terchange of traffic 24 

charging for transportation a greater 
compensation from one person than 

another 4 

Common-law remedy not abridged 25 

Connecting lines to make close connection- 24 
Construction — of terms * such companies" 

and '• railroad Company ■' 13 

Contempt 16 

Contract between railroads to be submitted 

to Commissioners 9 

rules and regulations as to contracts be- 
tween railroads 9 

Court of Record— Railroad Commissioners 

made a ^ 7 

Cumulative remedies 12 

Damages- exemplary 11 

Delivery of freight— railroad companies to. 14 

Discrimination— penalty for unjust 4 

Distances — unlawful to charge more for a 

shorter than a longer 6 



3^ 



INDEX TO LAWS CREATING THE COMMISSION. 



Distances — continued . 

special cases on application to the Com- 
mission 6 

Division of earnings to be submitted 9 

Duplicate of freight receipts to be given 14 

Duplicate freight receipts -what to contain _ 14 

Evidence— rules of to be observed 12 

Extortion— by railroad 3 

Express Companies— rates for, to be made 

by Commissioners 26 

provisions of section 7 applicable to 26 

Exceptions— to be filed on appeal 7 

Excursion rates --- 7 

Expenses — of Commission, how paid 28 

other expenses 28 

Exemplary Damages— suits to be brought 

within 7 

Fines— payable into State Trea^airy 12 

Sheriffs fined for failure to serve process. 16 

Freight— rates _ 4 

interstate rates 6 

duplicate receipts for 14 

delivery of 14 

Commissioners to make rules as to 

charges for handling 5 

Commissioners to make tariff 5-7 

unlawful to charge more fur -^ shorter 

than a longer distance 6 

Freight Receipts— duplicate to be given 14 

Free or reduced rates— to 25 

Fiee carriage to own officers 25 

General Assembly to elect Commissioners -_ i 

to designate Chairman 2 

members of ineligible i 

Inconsistent laws repealed 32 

Ineligible as Commissioners -who i 

Injunction— no Judge to grant unless 7 

how vacated 7 

Interchange of traffic to afford facilities for 24 
Interstate Commerce Commission — co m - 

plaints brought to attention of 6 

Interstate transportation of freight 6 

Injury — action by person injured 11 

Interchange of passes 25 

Joint through rates— Commissioners may 

make 5 

Judginent — vacated on filitig undert iking oti 

appeal 7 

revival of 7 

Limitations— as to time of bringing actions^ 1 1 

Long and short haul 6 

Manufacturing — special rates for developing, 6 

Mileage tickets 25 

Notice— how served 16, 27 

Notice of appeal 7 

Oath — of Commissioners i 

Commissioners may administer ^ 2 

to examine officers under 8 

Office— term of i 

to be in Raleigh 2 



Sec. 
Officers- railroads carrying own officers free 

over road 25 

Parties— ma}' appear before Commission by 

attorney 31 

Passenger tariff— Commissioners to make-- 5-7 
Passes and free transportation to officers and 

employees 24 

railroads may interchange 24 

Penalty— action for recovery of 10 

for extortion by railroad 3 

for unjust discrimination 4 

for giving undue preference 4 

for violanon of rules 10 

for failure to deliver freight 14 

for failure of officers of railroads to make 

reports 17 

for failure to obey order to repair, change 

or build stations 20 

for failure to comply with order lor scp 
arate apartments for whites and ne- 

gr.'ies 23 

for failure to obey order for close con- 
nection 24 

for failure to obey rules relating to track- 
age 24 

imposed on express or telegraph ctjiti- 
panies for charging more th»n fixed 

rate 26 

for failure to appear before Commission 

when summoned 27 

Precedence — appeal fiom C<immission to 

Court to have 7 

Preference or advantage, undue or unrea- 

sotiable, forbidden 4 

Process -served by sheriffs 16 

Qualifications for Commissioners i 

Quorum 2 

' Railroad companies" - ineaiiing of 13 

to file schedule of rates with Board of 

Railr'.'ad Commissioners 7 

ch'rgmg imrt-asonable rntes guilty cf 

extortion. 3 

failing to make itcompense 10 

to give duplicate freight receipts 14 

to make annua! reports 15 

guilty of unjust discrimination 4 

unlawful for, to give undue preference.- 4 

to post schedules at stations 7 

not toabindon stations 21 

Railroad Commission a Court of Record 7 

Rates— freight and passenger tariff 5 

interstate for freight 6 

special for developing resources 6 

Rates- special, excursion 6 

schedule of all rates to be filed with Rail- 
road Commissioners 7 

reduced, for certain persons 25 

Commissioners to make rales for trans- 
portation of freight and passengers— 7 
reduced or free for State or United 
States 25 



INDEX TO LAYv^S CREATING THE C0MMIS8I0N. 



33 



Sec. 
Rates— con iintied. 

Commissioners to make 7 

Commissioners to publish 7 

schedule to be published 7 

to remain until reversed on appeal 7 

Rebate— to prevent giving 5 

Reasonable rates— schedule prima facte 7 

Receipts— railroads to give duplicate, for 

freight H 

Reduced rates to certain persons 25 

Record -Commissioners to transmit, on ap- 
peal 7 

Recompense— failure to make 10 

Reimbursement of shippers 7 

Refunding to shippers— overpaid freight to 

be re unded 7 

Reinstatement of suspended Commissioner. i 

Reports- failure to make, penalty 17 

Commissioners to make annual 15 

one thousand copies to be printed 15 

railroad companies to make annually 25 

fiscal year 29 

Remedies cumulative 12 

no statute repealed 12, 13 

Returns — lor assessment and taxation to be 

made 20 

Rules— Commissioners to make, as to con- 
tracts between railroad companies 9 

action by person injured by railroad 

violating 11 

of evidence 12 

of practice 

of trackage 24 

Commissioners to make cViarges for 

handling 5 

penalties against company ior violating. 10 

Salaries— of Commissioners 2 

of Clerk 2 

of during suspension 1-3 

Schedules— Commissioners to change and 

revise 7 

railroads to post at stations 7 

of rates tobe published 7 

prima Jacze evidence, etc 7 

change of 7 

Sheriffs— to serve process 16 

fees of, for services 16 

fined for failure to serve process 16 

Shippers— to be refunded overpaid freight.. 7 

reimbursed by State Treasurer 7 

Solicitor -to prosecute for recovery of under 

taking 7 

to prosecute 10 

fees of, for services 10 

Special rates for development of manufac- 
turing, etc 6 



Sec 
State— property of, may be carried free or at 

reduced rates 25 

Stations— repairs and changes of 20 

not to be abandoned without consent 21 

relocated by consent 22 

separate apartments for white and ne- 
groes 23 

Statute— giving remedy against railroad not 

repealed 12 

remedy by, not abridged 25 

appeal direct to 29 

Steamboat companies 13 

steamboats 6 

Street railways 13 

Subpoena— how served 27 

misdemeanor not to > ppear when sum- 
moned, etc ' 27 

Supreme Court — appeal to 29 

Suspension from office by Governor i 

"Such companies"- meaning of 13 

Tariffs— Commissioners to make rates 4-5, 7 

what to consider in making 5 

Term of office of Commissioners i 

Telegraph Companies -rates for. tobe made 

by Commissioners 26 

provisions of section 7 applicable to 26 

penalty for charging higher rates 2b 

Telephone companies 26 

Tickets— mileage 25 

railroads may interchange 25 

Title of cause -j 

Trackage— rules regarding, to be observed.. 24 

Undertaking- on appeal 7 

Attorney-General to prosecute, when 7 

suit to recover 7 

condition of, in injunction proceedings, 7 

when additional required 7 

action on 7 

application of recovery of 7 

Undue preference — unlawful 4 

United States— property of, may be carried 

free or at reduced rates 25 

Unjust discrimination — carrier charging 
greater or less compensation to one 

person than another 4 

Commissioners to prevent by making rules. 5 

Vacancies— how filled i 

Valuation -method of, for railroad property 22 
Violation of Act— Commissioners to give no- 
tice to corporation, etc 19 

Witnesses— Commissioners may subpcena .. 16 

fees of. and how paid 16 

failure to attend when subpoenaed 16 

punishment for contempt i5 



RULES OF PRflCTiCE 



I 



GASES AND PROCEEDINGS 

[as amended.] 

BEFORE THE COMMISSION. 



PUBLIC SESSIONS. 

1. The general sessions of the Commission for the hearing of 
contested cases will be held at its office in the Agricultural Build- 
ing, Ealeigh, N. C, on such days and at such hours as the Com- 
mission may designate. Sessions for receiving, considering and 
acting upon petitions, communications and applications relating 
to business before the Commission, and also for considering and 
acting upon any business of the Commission other than contested 
cases, will be held, unless otherwise directed, at its said office in 
Raleigh, at 11 o'clock a. m., on Wednesday of every week. When 
special sessions are held at other places such regulations as may 
be necessary will be made by the Commission. 

PARTIES. 

2. Where a complaint concerns anything done or omitted to be 
done by only a single carrier no other need be made a party, but 
if it relates to joint tariffs, or matters in which two or more car- 
riers doing business under a common control, management or 
arrangement for a continuous carriage or shipment are interested, 
all the carriers constituting such line must be made parties. A 
complaint may embrace several carriers, or lines of carriers, oper- 
ated separately, in the same proceeding, when the subject-matter 
of the complaint involves substantially the same alleged violation 



36 BOAED OF RAILROAD COMMISSIONERS. 

of the law by the several carriers or lines. Persons or carriers 
not parties may apply, in any pending case or proceeding, for 
leave to intervene and to be heard upon the questions involved 

GENERflL RULES. 

PROCEEDSNGS BEFORE THE COMMSSSION. 

3. All petitions and complaints made before the Commission 
for redress of alleged grievances, must plainly and distinctly set 
forth the grounds of complaint ; the items being numbered and 
objections all set forth in writing. In like manner all defences 
must be distinctly set forth in writing, and the items numbered 
as above stated.- These specifications, whether of complaint or 
defence, may be accompanied, if the parties desire, by an expla- 
nation or argument, or by any suggestion as to the proper remedy 
or policy, and may be verified by the affidavit of the party com- 
plaining or petitioning, taken before any person authorized to 
administer oaths in North Carolina, and when the complaint or 
petition is verified, then the answer thereto shall be verified, and 
the verification shall conform to the rules prescribed in The Code 
of North Carolina for the verification of pleadings. The parties 
may also be heard in person or by attorney, or by written argu- 
ment, upon such written statement being first filed. 

4. If a carrier complained against shall deem the complaint 
insufficient to show a breach of legal duty, it may. instead of 
filing an answer, serve on the complainant notice for a hearing 
of the case on the complaint ; and in case of the service of such 
notice, the facts stated in the complaint will be taken as admit- 
ted. A copy of the notice must at the same time be filed with 
the Commission. The filing of an answer will not be deemed an 
admission of the sufficiency of the complaint, but a motion to 
dismiss for insufficiency may be made at the hearing. 

SERVICE OF PAPERS. 

5. Copies of notices or other papers must be served upon the 
opposite parties to the proceeding, personally or by mail, and 
w;hen any party shall have appeared by attorney the service upon 
the attorney shall be deemed proper service upon the party. 



RULES OF PRACTICE. 37 

AMENDMENTS. 

6. Upon application by any petitioner or party, amendments 
may be allowed by the Commission, in its discretion, to any peti- 
tion, answer, or other pleading in any proceeding before the Com- 
mission. 

ADJOURNMENT AND EXTENSION OF TIME. 

7. Adjournment and extension of time may be granted upon 
the application of parties in the discretion of the Commission. 

STIPULATIONS. 

8. Parties to cases and proceedings before the Commissioners 
may, by stipulation, duly signed by them and filed with -the Sec- 
retary, agree upon the facts, or any portion of the facts, they 
deem to be involved in the controversy, which agreed statement 
shall be regarded and used as evidence. It is desirable that the 
facts be thus agreed upon whenever practicable. 

HEARINGS. 

9. Upon issue being joined by the service of answer, the Com- 
mission will assign a time and place for hearing the same, which 
will be at its office in Raleigh, N. C, unless otherwise ordered. 
Witnesses will be examined orally before the Commission, unless 
testimony be taken or facts agreed upon as otherwise provided in 
these rules. The petitioner or complainant must in all cases 
prove the existence of the facts alleged to constitute a violation 
of the act, unless the carrier complained of shall admit the same, 
or shall fail to answer the complaint. Facts alleged in the answer 
must also be proved by the carrier, unless admitted by the peti- 
tioner. In cases of failure to answer, the Commission will take 
such proof of the charge as Eiay be deemed reasonable and 
proper, and make such order thereon as the circumstances of the 
case appear to require. 

WITNESSES AND DEPOSITIONS. 

10. Subpoenas requiring the attendance of witnesses will be 
issued by any member of the Commission in all cases and pro- 
ceedings before it, and witnesses will be required to obey the sub- 
poenas served upon them requiring their attendance or the pro- 
duction of any books, papers, tariffs, contracts, agreements or 



38 BOARD OF KAILROAD COMMISSIONERS. 

documents relating to s^nj matter under investigation or pending 
before the Commission. When a subpoena is desired for the pro- 
duction of books, papers or other documentary evidence, special 
application must be made to the Commission therefor, specifying 
the documentary evidence desired. When a cause is at issue on 
petition and answer, each party may proceed at once to take depo- 
sitions of witnesses in the manner provided by section 1357 of 
The Code of North Carolina, and transmit them to the Secretary 
of the Commission without making any application to or obtain- 
ing any authority from the Commission for that purpose, 

PROPOSED FINDINGS OF FACT. 

11. Upon the final submission of a case to the Commission 
either party may submit proposed findings of fact for the consid- 
eration of the Commission, which findings must embrace only 
the material facts of the case supposed to be established by the 
testimony . 

REPORTS. 

12. Each railroad company doing business within the State of 
North Carolina shall file in the office of the Commissioners quar- 
terly reports of its gross earnings upon a printed form (B). 

POSTING TARIFFS. 

13. Each railroad company doing business within the State of 
North Carolina shall post, and keep posted, at each of its respec- 
tive stations, in a conspicuous place, a copy of the schedules of 
freight and passenger rates prescribed for said road by the Com- 
mission, together with a copy of the Commissioners' Classifica- 
tion, and a table of distances between stations, giving name of 
each station. And when any change in said schedule of rates or 
classification is made, either by the Commission or by by any 
railroad company, a copy of said change shall be immediately 
furnished the office of the Commissioners, and shall also be posted 
in the same manner as the above. 

14. The rates prescribed by the Commission shall (except in 
cases specified) apply in either direction. 



STANDARD FREIGHT AND PASSENGER TARIFFS. 39 

Standard Freight ar)d Passenger Tariffs. 



STANDARD PASSENGER TARSFF. 

First Class. Secoyid Class. 

Twelve years and older 3^0. per mile. 2f c. per mile. 

Over 5 and under 12 years of age. .One-half first-class fare. 

R^u les Governing the Traosportation of Passeogers. 

1. Each passenger shall be entitled to baggage not exceeding 
one hundred and fifty pounds. 

2. No more than the schedule of passenger rates shall be 
charged where the ticket office at any station shall not have been 
open for a reasonable time before the departure from a station of 
the train upon which the passenger intends to be transported. 

3. At junction points, where the incoming trains arrive so near 
the leaving time of the out-going train that it is not practicable 
for a passenger to procure a ticket, no more than the schedule of 
passenger rates shall be charged. 

4. Railroad companies are authorized to collect the exact 
mileage for passenger fares if they shall make the necessary 
change to enable them to do so; but, if not, no more than the 
neaj^est amount ending in 5 or shall be charged. 

5. No railroad company shall be allowed to charge more than 
ten cents for full or half- rate between regular stations ¥/hen the 
fare would be less than that amount : Provided, where the dis- 
tance is not greater than two miles or under, the maximum charge 
for first-class tickets shall be ten cents, and five cents for second- 
class tickets. 

6. No more than the standard passenger tariff shall be charged 
passengers from flag stations or other stations where tickets are 
not kept on sale. 

7. When, in consequence of the uncertain time of arrival or 
departure of a delayed train, it is impracticable" for tickets to be 
purchased, no more than the regular standard passenger tariff 
shall be charged. 

8. Where a railroad company has provided agents and offices, 
ready and open for the sale of tickets, and the passengers, for 



40 BOARD OF RAILROAD COMMISSIONERS. 

want of proper diligence, fail to supply themselves therewith, 
before getting on the train, then ten cents additional for each 
passenger twelve years old and over may be demanded and col- 
lected for all distances not greater than ten miles, and twenty 
cents in like manner for all distances not less than ten nor greater 
than twenty miles, and thirty cents in like manner for all dis- 
tances over twenty miles. Half these rates for each passenger over 
five years old and under twelve years may in like manner be de- 
manded and collected: Provided, hotvever, offices at way stations 
may be closed one minute before the arrival of trains. 

9. The Commission will consider applications for an advance 
or reduction in the standard tariff for the transportation of pas- 
sengers, but no change of rates shall be of effect or put in force 
until ratified by the Commission: Provided, that this rule shall 
not be construed as placing any restriction on the privilege of 
railroad companies to make special rates on excursion trains, or 
to issue what are called "commutation or mileage tickets": 
Provided, no unjust discrimination is practiced. 

10. Tickets on sale at. any office in a city must be kept on sale 
at the depot ticket-office of the same railroad at the same prices. 

11. That all connecting raih'oads which are under the manage- 
ment and control by lease, ownership or otherwise, of one and 
the same company, or at connection with a different company, 
shall be required to make close connection whenever practicable. 

12. The fare in sleeping cars shall not exceed $1 for 100 miles 
or less. From 100 to 150 miles, $1.50; between 150 and 200 
miles, $2. When a lower birth with the upper berth not lowered 
is desired, this is subject to special contract. 

13. Railroad companies in computing passenger rates between 
stations where fractions of a mile are to be considered, will cal- 
culate for the nearest even number of miles. Example : For a 
distance of 10.49 miles or under, charge for ten miles; for 10.50 
miles or over, charge for eleven miles, and so on. 

14. It shall be the duty of each railroad company to bulletin at 
every telegraph station along its line, and other stations if possi- 
ble, ten minutes in advance of the schedule time of arrival of its 
trains, whether such train is on time, and if behind its schedule 
time to state, as near as can be approximated, the time of its 



STANDARD FREIGHT AND PASSENGER TARIFFS 41 

arrival. The bulletin board shall he placed in a conspicuous place 
at the ticket office, and all notices thereon of arrival and depart- 
ure of trains shall be erased immediately after the departure of 
trains. 

15. On all mixed trains, carrying passengers, where two coaches 
are attached, first- and second-class tickets must be sold. 

Where only one coach is attached, only second-class rates shall 
be charged, unless the coach has separate apartments, then first- 
and second-class rates may be charged. 

16. That all common carriers subject to the supervision of the 
Railroad Commission shall provide such means or appliances as 
may be necessary to secure the careful handling of and to prevent 
injury to any parcel of baggage to which a check may be affixed, 
as provided in section 1970 of The Code! 

That at all minor stations, where no proper appliances are sup- 
plied, and no regular depot hand is employed, the train hands 
shall be required to assist the baggage -master, and lift with care 
all baggage from the car doors. 

17. All Railroad Companies, in addition to the usual bell cord, 
shall place a safety cord in each coach of the regular passenger 
trains, running through the entire length of the same. 

18. It shall be the duty of the Pullman Car Company, at all 
stations, on the stopping of trains, to have the doors of their cars 
opeu for the reception of passengers and require the porter to 
have a step ready for the convenience of passengers desiring to 
enter. 

19. Whereas, section 4:, chapter 320, of the Acts of the Gen- 
eral Assembly of North Carolina, at its session of 1891, known 
as the Railroad Commission Act, makes it unlawful for " any 
common carrier" within the State, " either directly or indirecth", 
by any special rate, rebate, drawback or other device, to charge, 
demand, collect or receive from any person or persons, a greater 
or less compensation for any service rendered, or to be rendered, 
in the transportation of passengers than it charges, demands col- 
lects or receives from any other person or persons;" and — 

Whereas, section 25 of said Act enumerates the exceptions 
above permitted, and — 



42 BOARD OF RAILROAD COMMISSIONERS. 

Whereas, Absolute equality is the demand of the law ; 

Resolved^ That said act condemns and prohibits free-pass or 
free-mileage transportation to all editors, staff correspondents 
and employees of the newspapers of the State. That said act ap- 
plies with equal force to free-pass or free-mileage transportation 
to attorneys within the State not actually employed by the com- 
mon carrier for a certain and definite sum and not the actual 
and bona fide employees of the carrier. 

F^ules Qoverr)ing tF)e TransportatioQ of preigF)t. 

1. All connecting railroads, which are under the management 
and control, by lease, ownership or otherwise, of one and the 
same company, shall, for purposes of transportation, in applying 
this tariff, be considered as constituting but one and the same 
road, and the rates shall be computed as upon parts of one and 
the same road, unless otherwise specified. 

DISTANCES. 

2. Since a. separate rate cannot be conveniently given for every 
possible distance, the law authorizes the Commission " to ascer- 
tain what shall be the limits of longer and shorter distances.'' 
Five (5) miles has, accordingly, been fixed as the limit for a change 
of freight rates for all distances less than one hundred miles; 
and ten (10) miles for all distances over one hundred miles. The 
Commissioners reserve the right, however, to correct the charge 
in extreme cases which work hardship, although the same may 
not violate the letter of our rules. 

3. For all distances over five (5) miles and under one hundred 
(100) miles, the following rule will apply: When the mileage does 
not end in or 5 the nearest mileage so ending shall govern the 
rate. Illustration: For a distance of twenty-seven miles charge 
for twenty-five miles, for a distance of twenty-eight miles charge 
for thirty miles. 

1:. When freight is transported any distance greater than one 
hundred miles, if the mileage does not end in 0, then next ten 
(10) miles group above shall govern the rate. Illustrations: For 
one hundred and twenty-one miles charge for one hundred and 
thirty. 

5. For distances under twenty miles or over two hundred and 



I 



STANDARD FREIGHT AND PASSENGER TARIFFS. 43 

fifty miles, a reduction of rates may be made without making a 
change at all stations short of two hundred and fifty miles: Pro- 
vided^ however^ that when any railroad shall make a reduction of 
rates for distances over two hundred and fifty miles, the same 
shall apply to similar distances on all the roads controlled by the 
same company, and in no case shall more be charged for a less 
than a greater distance. 

REGULATIOS^S COI^CERNING FREIGHT RATES. 

6. The freight rates prescribed by the Commission are maxi- 
mum rates, which shall not be transcended by the railroads. They 
may carry, however, at less than the prescribed rates: Provided, 
that if they carry for less for one person, they shall for the like 
service carry for the same lessened rate for all persons except as 
mentioned hereafter; and if they adopt less freight rates from 
one station, they shall make a redaction of the same per cent at 
all stations along the line of the road so as to make no unjust dis- 
crimination as against any person or locality. But when there 
are betv/een any two points in this State two or more competing 
roads not under the same management or in the same system, 
then the longer line or lines, in order to give said points the 
benefit of competition, may refluce the rates between said two 
points below the standard tariff, without making a corresponding- 
reduction at all stations along the lines of said roads: Provided, 
said reduction shall not make the rates less than the standard 
tariff rates for the shortest line between said points: Provided 
further^ that before taking effect, the proposed change of rates 
shall be submitted to and approved by the Commission. 

7. The rates charged for freight service by regular passenger 
trains may be one and a-half times that for first-class freight by 
ordinary freight trains. 

8. No railroad company shall, by reason of any contract with 
any express, or other company, decline or refuse to act as a com- 
mon carrier, to ti^ansport any article proper for transportation by 
the train for which it is offered. 

9. Railroad companies may collect twenty-five (25) cents as a 
minimum charge on a single shipment, however small. 

10. No railroad company doing business in this State shall per- 
mit a blockade of any class of freights on account of any arrange- 



44 BOARD OF RAILROAD COMMISSIONERS. 

ment existing between it and other railroad companies as to the 
transportation of freight according to percentage or otherwise. 

11. There shall be no secret reduction of rates, nor shall any 
bonus be given, or any rebate paid to any person, but the rates 
shall be uniform to all, and public. 

12. The rates specified for Ores, Sand, Clay, Eough Stone, Com- 
mon Brick, Bone, Lumber, Shingles, Laths, Staves, Empty Bar- 
rels, Wood, Stra\^^, Shucks, Hay, Fodder, Corn in ear. Tan-bark, 
Turpentine, Eosin. Tar, Household Goods, are maximum rates, 
but the roads are left free to reduce them at discretion, and all 
such rates are exempt from the operation of Eule 6. All com- 
plaints as to such rates will, on presentation, be duly considered. 

13. When railroad companies are required to load or unload 
car-load shipments of classes L, M, N, and P, or to load car- 
load shipments of naval stores, the actual cost of such service 
shall be paid by shippers. 

14. Extra Handling. — The charge for handling extra heavy 
articles, may be as follows, viz: 

Under. 2, 000 pouads, no charge for extra handling. 

For 2,000 lbs. and under 3,000 lbs., ^3 for extra handling. 

For 3,0(i0 lbs. and under 4,000 lbs., 5 for extra handling. 

For 4,000 lbs. and under 5,000 lbs., 7 for extra handling. 

For 5,000 lbs. and under 6,000 lbs., 8 for extra handling. 

For 6,000 lbs. and under 7,000 lbs., 10 for extra handling. 

For 7,000 and over in proportion. 
. 15. Fertilizers. — This term embraces the following and like 
articles, when intended to be used as fertilizers : Ammonia Sul- 
phate, Bone Black, Bones ground or dissolved, Castor Pomace, or 
Fish Scrap Guanos, Alto Vella, Pish, Navassa, Navassa Lump, 
Peruvian Soluble Pacitic, Nitrate Cake, Plaster of Paris, Potash 
— German Salts of. Muriate of. Sulphate of — Salt Cake, Lump 
and Ground Phosphate, Soda — Nitrate of and Sulphate of — Tank 
Stuif, etc. 

16. Vehicles designed for transportation at carrier's risk must 
be properly protected by the shipper with sufficient covering or 
packing from all liabilities to injure from fire, weather, chafing, 
or other injury. 

17. In no case shall the amount collected on L. C. L. shipments 
exceed the charge per car-load for the same class of goods. 



STANDARD FREIGHT AND PASSENGER TARIFFS. 



45 



18. Railroad companies are not required to receive cotton or 
other merchandise and warehouse the same unless the articles 
offered are in good shipping condition, well prepared by the ship- 
per with proper packing and intelligent, plain marking, and ac- 
companied with orders for immediate shipping. 

19. Car-Load Rates apply to a shipment of a car-load or more 
made by one shipper, at one time, to one and the same point of 
delivery, to the same consignee. 



Lstimated Weigh)ts. 

•20. I^^Lumber, Coal. Lime, Brick, Stone, and all articles for 
which estimated weights are given in Classification (except Live 
Stock, Ale and Beer, and empty Ale and Beer packages, L. C. 
L. ), will be taken at actual weight when the weight can be as- 
certained, but when the weight can not be ascertained, will be 
charged at the following estimated weights. This is not to in- 
terfere, however, with the duty of Receiving Agent to weigh, if 
possible, and correct to actual weight: 

TO BE USED WHEN ACTUAL WEIGHTS CAN NOT BE ASCERTAINED. 



Per 1 ,000 ft. 

Wliite Pine and Poplar, thor- 
oughly seasoned 3,000 lbs. 

White Pine and Poplar, green 4,000 lbs. 

Yellow Pine, Black Walnut. 

Ash , seasoned 4,000 lbs. 

Yellow Pine, Black Walnut, 
Ash, green 4,500 lbs. 

Oak, Hickory, Elm, seasoned 4,500 lbs. 

Oak, Hickory, Elm, green. . . 6,000 lbs. 

All other kinds Lumber, sea- 
soned 4,000 lbs. 

All other kinds Lumber, green 6.000 lbs. 

Hoop-poles, Staves and Head- Per Car. 
ing, dry, car loaded to depth 
of 50 inches 24.000 lbs. 

Hoop-poles. Staves and Head- 
ing, green, car loaded to' 
depth of 43 inches 24,000 lbs. 



Per Car. 
350 lbs. 
300 lbs. 
530 lbs. 
450 lbs. 



Shingles, green per 1,000 

Shingles, dr}^ per 1,000 

Laths, green per 1 ,000 

Laths, dry per 1,000 

Tan Bark, green. per cord 2,600 lbs. 

Tan Bark, dry per cord 2,000 lbs. 

Fence Posts and Rails 
and Telegraph Poles, per cord 3,500 lbs. 

Clay. . per cubic yard 3,000 lbs. 

Sand per cubic yard 3,000 lbs. 

Gravel per cubic yard 3,200 lbs. 

Stone, undressed. per cubic ft. 160 lbs. 

Lime per bushel 80 lbs. 

Coal per bushel 80 lbs. 

Coke per bushel 40 lbs. 

Portland Cement per barrel . 400 lbs. 

Other Cements per barrel 300 lbs. 



21. In cases in which the classification of any article is lowered 
by a percentage, railroad companies which are allowed an increase 
on the standard tariff shall apply the increase allowed to the re- 



46 BOARD OF RAILROAD COMMISSIONERS. 

duced classification; but in cases in which the classification of 
any article is raised by percentage, railroad companies which are 
allowed an increase on the standard tariff shall not apply said 
increase to the already increased classification, but only to the 
standard tariff. 

22. IS^When any article is too bulky to put in a box car, it 
shall be subject to special contract. 

23. A ton of all articles is 2,000 pounds. A car-load is 20,000 
pounds, unless otherwise specified. For loads above 20,000 pounds, 
pro rate at car-load rates charged. A car-load of green wood is 
eight cords. A car-load of dry wood is nine cords. A car-load 
of lumber (and all articles embraced in lumber) is 24,000 pounds. 
A car-load of any article enumerated in Class P, except wood and 
lumber and articles included in lumber, is 25,000 pounds — ship- 
pers to load and unload : Provided, that when a car is loaded over 
its marked capacity by the shipper, the railroad companies are 
left free to charge for the excess a rate that will effectually stop 
a practice fraught with so much danger to life and property. 

24. The regulations of the railroads as to demurrage or deten- 
tion of cars are matters of police, with which the Commission will 
only interfere upon complaint of abuse. 

25. All roads under the same or different management shall 
make just and reasonable rates for switching and exchange of 
business at connecting points. Rates now in force are continued. 
Any proposed change must first be submitted to the Commission. 
Any charge now in force and shown to work a hardship will be 
corrected. 

26. All depots situated in incorporated towns and cities in this 
State must be kept open each day (Sundays excepted) for the 
receiving and delivery of freight as follows : From April 1 to Sep- 
tember 30, between the hours of 7 a. m. and 6 p. m. From Oc- 
tober 1st to March 31st, 7.30 a. m. and 5 o'clock p. m., with an 
intermission in each case of one hour, from 12 o'clock noon to 1 
o'clock p. m. 

27. Railroad companies whose lines do not exceed ten miles in 
length may charge from any point on their road the rates pre- 
scribed for ten miles. 

28. On all shipments of freights not governed by Rule 1, origin 
nating and terminating in this State, which shall pass over the 



STANDARD FREIGHT AND PASSENGER TARIFFS. 47 

whole or portions of two or more roads, not under the same con- 
trol, the maximum rates charged on such shipments shall not be 
greater than the sum of the local rates on such freights, less ten 
(10) per cent, for the distance hauled over each road. The total 
rate thus ascertained on such freights, from the point of ship- 
mejit to the point of destination, shall be divided in such propor- 
tions between the roads ov^er which such freights pass, so as to 
give to each road interested in the shipment its local rate, less 
ten (10) per cent, for the distance such shipment is hauled. 
Nothing in this rule shall be construed to prevent the total of 
any joint rate made under this rule from being divided in such 
proportions between the roads interested in the same as they may 
agree upon, but a failure to so agree between the roads interested 
shall in no way affect the total joint rate to be charged and col- 
lected on, or work delay in the transportation of such freights, 
or be a subject of appeal to the Commission by the roads at 
interest. 

29. When railroad rates are affected by water competition, the 
railroads may reduce their rates between points so affected with- 
out being required to reduce intermediate rates: ProvideA^ hotv- 
ever^ that if complaint is made that such competition rates un- 
justly discriminate against other places or persons, the Commis- 
sioners will investigate and rule in each case. 

30. Whenever any goods, or articles of freight of any kind, 
shall be received by any common carrier in this State, to be de- 
livered to any consignee in this State, and a portion of same shall 
not have been received at the place of destination, the carrier shall 
not demand any part of the charges for freight or transportation 
due for such portion of the shipment as shall not have reached 
the place of destination. And in case of loss, damage or over- 
charge of such freight, if the consignee present his bill of lading 
and the original invoice to the agent of the company at place of 
destination of such goods, within thirty days after notice of the 
loss, damage or overcharge, and said company fails or neglects to 
deliver to the consignee the goods lost or damaged, in good order, 
or refund any overcharge for thirty days after such notice, then 
such company shall be liable for the value of such goods lost or 
damaged or overcharged. The carrier shall be required to deliver 
to the consignee such portion of the consignment as shall have 



48 BOARD OF RAILROAD COMMISSIONERS. 

been received, upoD the payment or tender of freight charges doe 
upon such portion, as provided by chapter 495, Laws 1893. 

31. No common carrier shall, for a ay cause, subject any article 
of freight to unreasonable delay in receiving, delivering or for- 
warding the same to its destination. 

32. When a shipment is offered at a point where there are two 
routes over connecting lines to destination, it shall be the duty of 
the railroad company making shipment to forward same by the 
shortest route, unless the rate charged over the longer route does 
not exceed that of the shorter ; or unless otherwise ordered by 
the shipper. 

33. A charge of no more than two dollars per car will be allowed 
for switching or transferriog a car from any point on any road to 
any connecting road or warehouse within a space of one mile 
from starting point, over one and not more than two miles, three 
dollars; over two miles and not over three miles, four dollars, 
without regard to weight or contents. 

When in the transfer of a car between said points it is neces- 
sary to pass over the line of any intermediate road or roads, the 
maximum charge of two, three or four dollars, as the case may 
be, shall be equitably divided between the roads at interest. 

When a charge is made for the transfer of loaded cars between 
said points, no additional charge shall be made for the delivery 
or return of the empty cars. 

The regulations in regard to freight rates, as well as the per cent above Standard Tariff, must 
not be enforced to their full limit in any case, or on any class, if it would thereby cause a rate in 
excess of that existing May 20, 1891. 

All specials less than our standard rates heretofore granted by carriers within the jurisdiction 
of the Commission, and which do not conflict with the law preventing unjust discrimination, until 
further orders, will be enforced. 

ExploQatory Note. 

In the " Commissioners' Standard Freight Tariff," under the 
class opposite to the distance, if it ends in (and if not then oppo- 
site the next greater distance), will be found the rate required. 

Example: To find the rate for 247 miles on a box of clothing, 
weighing 100 pounds, opposite the word clothing, in the classifi- 
cation, is seen its class, 1 ; in the freight tariff under Class 1, 
opposite the next greater distance, 260 miles, is seen the rate 66 
cents; in the column "Miles," 5 signifies five miles or under; 20, 
twenty miles or over 15, and so on. 



STANDARD FREIGHT AND PASSENGER RATES. 



49 



Explanation) of Characters 



1 stands for First Class. 

2 stands for Second Class. 

3 stands for Third Class. 

4 stands for Fourth Class. 

5 stands for Fifth Class. 

6 stands for Sixth Class. 

1% stands for 1% times First Class. 

Dl stands for Double First Class. 

3T1 stands for Three Times First Class. 



4T1 stands for Tour Times First Class. 
A, B, C, D, E, F, H, and K, stand for 
Classes A, B, C, D, E, F, H. and K, 

respectively. 

S stands for Special. 

L.C.L. stands for Less than Car-Load. 

C.L. stands for Car -Load. 

N.O.S. stands for Not Otherwise Speci- 
fied. 



Articles not enumerated will be classed with similar or anala- . 
gous articles. 

F^ules for Computing fractions. 

When any rate in any Class in the Standard Tariff is raised or 
lowered by a per cent, the following rules must be observed : 

First,— If the rate thus raised or lowered is in either of Classes 
C, D, F, J or K, the fraction of a half cent must be retained, as 
the following examples will indicate : 

Ex. 1.— Standard Eate Q.^ 

25 per cent added 1.6 

Total , 8.1 

From which deduct fraction, leaving desired rate of 8 cents. 

Ex. 2.— Standard Kate r 9.5 

20 per cent added 1.9 

Total 11.4 

Substituting 5 for the fraction, the desired rate is 11.5 cents. 

Ex. 3. — Standard Hate 8 

20 per cent added 1.6 J 

Total 9.6 

Substituting 5 for the fraction, the desired rate is 9.5 cents. 

Ex. 4. — Standard Eate 5.5 

25 per cent added 1.3 

Total 6.8 

Adding a unit instead of a fraction, the desired rate is 7 cents. 

1 1 . • 



50 BOARD OF RAILROAD COMMISSIONERS. 

Second. — If the rate thus raised or lowered be in any other 
Class than those already mentioned, omit fraction of less than 
half a cent and estimate half a cent or more as one cent, thus: 

Ex. 1. — Standard Rate 17 

20 per cent added . 3.4 

Total 21.6 

Deducting the fraction, the desired rate is 20 cents. 

Ex. 2. -Standard Rate 18 

20 per cent added 3.6 

Total 21.6 

Estimating the fraction as a unit, the desired rate is 22 cents. 
Third. — In making reductions, observe the same manner of 

placing figures before deducting the percentage. 

Narrow-gauge railroads, in fixing rates on all freights where a 

rate per car-load is given, will count 15,000 pounds for a car-load, 

and estimate their charge pro ra^a with rate allowed on standard 

gauge. 

R^ules Governing Erection and Location of Depots. 

First. — From and after Wednesday, the first day of April, 
1891, no change of freight or passenger depots or flag stations 
from their present location, nor the suspension of the sale of 
tickets, or the receiving or forwarding of freights from stations 
now in use for such purposes, will be permitted without the con- 
sent of this Commission published in accordance with law. 

Second. — Application for the location of depots and the con- 
struction of depot building must be filed in the Railroad Commis- 
sion office, with all information needed for a full and proper 
understanding of all interests to be affected thereby. 

Rules and R^egulatioQs Governing the Transporta- 
tior) of Live StocK- 

The weights given below are estimated and not actual, and are 
used simply to get the rating on Live Stock. To illustrate: One 
Horse, Mule or Horned Animal is estimated at the same rate as 
2,000 pounds of any kind of second-class freight at carrier's risk 
and fourth-class at owner's risk. Therefore, the freight charges 



STANDARD FREIGHT AND PASSENGER RATES. 



51 



for fifty miles on one Horse, Mule or Horned Animal is the same 
as on 2,000 pounds of second-class freight, and would be, accord- 
ing to the Standard Tariff, carrier's risk, 28 cents per 100 pounds, 
or $5.f)0, and at owner's risk, 20 cents per 100 pounds, or $4.00. 



Each. 
One Horse, Mule or Horned 

Animal 2,000 lbs. 

Two Horses. Mules or Horned 

Animals - 3,500 lbs- 
Each additional Horse, Mule 

or Horned Animal 1 ,000 lbs. 

Stallions, Jacks and Bulls 3,000 lbs. 

Yearling Cattle .-.- 1,000 lbs. 

Calves and Sheep 175 lbs. 



Each. 
Calves and Sheep, in lots of .. 

or more 150 lbs. 

Lambs 100 lbs. 

Lambs, in lots of five or more_- 75 lbs. 

Hogs for market 350 lbs. 

Pigs and Stock Hogs 125 lbs. 

Pigs, Hogs, Sheep, etc.. boxed, 

actual weight . . 



The rates on Live Stock as given in this Tariff are based on the 
following maximum valuations : 

Horses and Mules not over §120 00 each. 

Horned Cattle not over 50 00 each. 

Stallions, Jacks and Bulls not over 150 00 each. 

Fat Hogs and Fat Calves not over 15 00 each. 

Lambs, Stock Hogs, Stock Calves, not over 5 00 each. 

Race -Horses, Stallions, Jacks, Bulls, and other high-priced ani- 
mals, when shippers are not wilJing to have the same transported 
at above valuations, will be taken only at the following rates on 
valuation given : 

Value from §150 00 to $400 00 add to regular rate 30 percent. 

Value from 400 00 to 600 00 add to regular rate 40 per cent. 

Value froQi 600 00 to 800 00 add to regular rate 60 per cent. 

Value from 800 00 to 1000 00 add to regular rate 100 per cent. 

Over $1,000, subject to special rate by contract. 

Live Stock will be taken at the released or owner's risk i ate 
only when contract is executed by shipper and Station agent. 

Mixed shipment of Cattle, Hogs, Lambs, etc., will be taken in 
car-loads at car-load rates for cattle, but carrier will be released 
from damage to animals caused by their own acts, or to each 
other, and from escape, if not haltered, suffocation, exhaustioti 
from heat or cold. 

Sucking Calves accompanying Cows will be charged for at rate 
for single Calves. 



52 BOARD OF RAILROAD COMMISSIONERS. 

Sucking Colts accompanying Mares will be charged for at double 
the rate for single Calves, 

The word " calves " used in these Rules and Regulations applies 
only to calves under nine months old; and the words " Yearling 
Cattle ' ' to cattle over nine months and under eighteen months 
old. 

Pigs, Hogs, Calves, etc., boxed, crated, or in portable pens, 
taken at actual weight, carrier's risk, first-class; owner's risk, 
second-class. 

In no case shall the charge for less than a Car-Load of Live 
Stock exceed the charge for a Car-Load. 

Shippers will be expected to feed, water and care for Stock at 
their own expense. When food is furnished by Carrier, a charge 
will be made for the same and collected from Consignee. 

One, Two or Three cars of Live Stock will entitle the owner or 
his agent to be carried free to point of destination of consignment, 
on the train with the Stock to care for the same. Four to seven 
cars inclusive, belonging to one owner, two men in charge; and 
eight cars or more belonging to one owner, three men in charge, 
which number is the maximum number of attendants that will 
be carried free for one shipment. 

Return transportation not given to owners, agents or attendants. 



STANDARD FREIGHT RATES. 



Q'A 



Standard ^rz\qY)\i Tariff— Classes. 



Q < 


PER 100 POUNDS 


PER 
BBL 

F 


PER 
100 LBS 


PER 
TON. 


PER 
CAR-LOAD. 


Miles 


I 

cts. 

12 


2 

cts. 
10 


3 

cts. 

8 


4 

cts 
6 


5 

cts 

6 


6 

cts. 

5 


A 

cts. 

5 


B 

Cts. 

5 


C 

cts. 

5 


D 

cts 

4 


cts. 
6 


H 

cts 

6 


K 

Cts 

4 


Iv 


M 


N 




$8.00 


P 


5 


cts 

10 


fo.6o 


$0.85 


I9.00 


S5. 00 
» 
6.50 


10 


18 


13 


II 


9 


8 


T 


6 


6 


6 


5 


8 


12 


9 


5 


.70 


.95 


10.00 


9.00 


15 i 21 


16 


14 


II 


9 


f/z 


6% 


7 


7 


6 


9 


14 


II 


5>^ 


•75 


I.OO 


11.00 


10.00 


7-50 


20 


24 


18 


16 


13 


10 


8 


7 


8 


8 


7 


10 


16 


12 


6 


.80 


1.05 


12.00 


10.00 


8.50 


25 


27 


20 


18 


H 


12 


9 


8 


9 


9 


8 


12 


18 


14 


6^2 


.90 


I- 15 


14.00 


ir.oo 


9-50 


30 


30 


24 


20 


16 


n 


10 


8 


10 


10 


S 


13 


20 


16 


7 


1. 00 


1.25 


16.00 


12.00 


10. 50 


35 


33 


26 


22 


18 


14 


II 


9 


II 


10 


9 


14 


20 


18 


7K 


1. 10 


1.35 


18.00 


14.00 


11.50 


40 33 


26 


22 


18 


14 


II 


9 


II 


loK 


9 


14 


21 


18 


8 


1.20 


1-35 


18.00 


14.00 


12.00 


45 i 36 


28 


24 


20 


15 


12 


10 


12 


loH 


9 


IS 


2[ 


20 


8 


1.20 


1-45 


20.00 


16.00 


12.00 


50 36 


38 


34: 


30 


15 


13 


10 


13 


11 


9 


15 


33 


30 


8 


130 


145 


30 00 


16 00 


13 00 


55 


39 


30 


26 


21 


16 


12 


II 


13 


11 


10 


16 


22 


21 


8 


1.30 


1-55 


22.00 


17-00 


13.00 


60 


39 


30 


26 


21 


16 


13 


II 


13 


i^Vi 


10 


16 


23 


21 


9 


1.30 


1-55 


22.00 


17.00 


13.00 


65 


42 


32 


28 


21 


17 


14 


12 


14 


II>^ 


10 


17 


23 


21 


9 


1.30 


1.60 


24.00 


17. 00 


13-00 


70 


42 


32 


.8 


21 


17 


14 


12 


14 


12 


10 


'' 


24 


21 


9 


1.30 


1.60 


24.00 


17.00 


14.00 


75 


44 


34 


30 


22 


18 


15 


13 


15 


12 


10 


18 


24 


22 


9^ 


1.40 


1.65 


26.00 


18.00 


14.00 


80 


44 


34 


30 


" 


18 


15 


13 


15 


13 


II 


18 


26 


22 


^y. 


1.40 


1.65 


26.00 


18.00 


14.00 


S5 


46 


36 


21 


22 


19 


15 


13 


16 


13 


II 


19 


,26 


22 


9^ 


1.40 


1.70 


28.00 


18.00 


15.00 


90 46 


36 


31 


22 


19 


15 


13 


16 


13^ 


II 


19 


27 


22 


9V^ 


1.40 


1.70 


28.00 


18.00 


15.00 


95 48 


38 


32 


24 


20 


16 


14 


16 


^zV. 


II 


20 


27 


24 


10 


1.50 


1.75 


29.00 


19.00 


15.00 


100 


48 


38 


33 


34 


30 


16 


14 


IT 


14 


13 


30 


38 


34 


10 


1 50 


1 75 


39 00 


1900 


16 00 


no- 


50 


40 


33 


25 


20 


16 


14 


■17 


14 


12 


20 


28 


25 


10 


1-55 


1.80 


30.00 


19.00 


16.00 


120 


52 


42 


34 


25 


21 


17 


15 


18 


1=; 


13 


2[ 


30 


25 


103^ 


1.60 


1.85 


3r. 00 


20. 00 


17.00 


130 


54 


44 


35 


26 


21 


17 


15 


18 


16 


13 


21 


32 


26 


'0^ 


1.65 


1.90 


32. 00 


20.00 


18.00 


140 56 


46 


36 


26 


22 


18 


16 


19 


16 


14 


22 


32 


26 


10^ 


1.70 


1-95 


33- 00 


21.00 


18.00 


150 58 


4:8 


37 


3T 


33 


18 


16>^ 


19 


17 


14 


33 


34 


37 


11 


1 75 


3 00 


34 00 


31 00 


19 00 


160 59 


49 


39 


29 


24 


19 


i6>^ 


20 


17 


'5 


24 


34 


29 


II 


1.80 


2.05 


34.00 


24.00 


19.00 


170 60 


50 


41 


31 


26 


20 


17 


20 


18 


15 


26 


36 


31 


12 


1.85 


2.10 


35.00 


25.00 


20.00 


180 61 


51 


42 


32 


38 


21 


17 


21 


18 


15H 


,8 


36 


32 


12 


1.90 


2. 10 


35-00 


26.00 


20.00 


190 


62 


52 


43 


33 


29 


22 


17/2 


21 


19 


f5^ 


29 


38 


33 


12 


1.90 


2.15 


37.00 


27.00 


21.00 


aoo 


63 


53 


4:4: 


34 


30 


33 


17>^ 


33 


19 


16 


30 


38 


34 


13 


1 95 


3 30 


38 00 


38 00 3100 


210 63 


53 


44 


34 


30 


23 


17K 


22 


20 


16 


30 


40 


34 


13 


1-95 


2.20 


38.00 


28.00 


22.00 


220 


64 


54 


45 


35 


31 


24 


18 


23 


20 


17 


31 


40 


35 


13 


2.00 


2.25 


39.00 


29.00 


22.00 


230 


64 


54 


45 


35 


31 


24 


18 


23 


21 


17 


31 


42 


35 


14 


2.00 


2.25 


39.00 


29.00 


23.00 


240 


65 


55 


45 


35 


32 


25 


19 


24 


21 


i8 


32 


42 


36 


14 


2.05 


2.30 


40.00 


30.00 


23.00 


350 


65 


55 


4:5 


36 


33 


35 


19 


34 


33 


18 


33 


44 


36 


14 


3 05 3 30 


40 00 


30 00 


33 00 


260 


<-''5 


55 


46 


36 


32 


25 


20 


25 


23 


19 


33 


45 


37 


15 


2.10 


2.35 


41.00 


31.00 


24.00 


270 


66 


56 


46 


36 


33 


26 


20 


25 


23 


19 


33 


45 


37 


15 


2. 10 


2.35 


41.00 


31.00 


24.00 



54 BOARD OF RAILROAD COMMISSIONERS. 



StQQdard Passenger Tariff. 

First Class. Second Class. 

Twelve years and older 3^0. per mile. 2f c. per mile. 

Over 5 and uEder 1*2 years of age. .One-half first-class fare. 



Staodard Telegraph)ic R^ates. 

Ten body words or under Twenty -five cents. ^ 

Over ten body words Two cents for each additional word. 

JOINT TELEGRAPHIC RATES. 

Whenever a message is sent over two or more telegraph lines 
owned, controlled and operated by separate and distinct corpora- 
tions or individuals, the joint rate shall not exceed forty cents for 
such message of ten body words or less, exclusive of date, address 
and signature, between any two points within the limits of this 
State, nor more than three cents for each additional word. 



Teleph)one F^ates. 

PLACES OF BUSINESS. 

Special wire $30.00 per year. 

Two and three party wire (each) 24.00 per year. 

Four and five party w'ire (each) 18.00 per year. 

RESIDENCE. 

Special wire $18.00 per year. 

Two and three party wire (each) 16.00 per year. 

Four and five party wire (each) 14.00 per year. 

*rhe Commission has passed an order reducing this rate to 15 cents. . Case now 
pending in Federal Court. 



{Relation of R^ailroad Companies to flight and 
Passenger Tariffs. 



The Railroad Companies doing business in the State of North 
Carohna will be allowed to apply the Standard Freight and Pas- 
senger Tariffs for the transportation of freight and passengers in 
accordance with the following table: 

AtiaQtic Coast Line Systen). 

WILMINGTON AND WELDON RAILROAD— Main Line.* 

Passenger —Standard Tariff. 

WILSON AND FAYETTEVILLE BRANCH. 

Passenger — Standard Tariff. 

SCOTLAND NECK BRANCH. 

Passenger— Standard Tariff". 

TARBORO BRANCH. 

Passenger — Standard Tariff. 

WASHINGTON BRANCH. 

Passenger — First Class, 3^ cents per mile. 
Second Class, 3 cents per mile. 

CLINTON BRANCH. 

Passenger — Warsaw to Elliott, 1st Class, 25c. ; 2d Class, 20c. 
Warsaw to Clinton, 1st Class, 40c. ; 2d Class, 35c. 

NASHVILLE BRANCH. 

Passenger — First Class, 3i cents per mile. 
Second Class, 3 cents per mile. 

*The Commission has issued an order making the Passenger Rate on main line of 
Wilmington and Weldon road from Wilmington to Weldon 2 and 2}y^ cents per mile 
— case pending in Court. 



56 



BOARD OF RAILROAD COMMISSIONERS. 



NORFOLK AND CAROLINA RAILROAD. 

Passenger — Standard Tariff. 



ALBEMARLE AND RALEIGH RAILROAD. 

Passenger — E'irst Class, 3^ cents per mile. 

Second Class, 3 cents per mile. 
Freight — The Standard Tariff with 15 per cent added. 



WILMINGTON, NEWBERN AND NORFOLK RAILROAD. 

Passenger — First Class, H cents per mile. 
Second Class, 3 cents per mile. 

Freight — Tariff as follows : 



DIS- 
TANCE. 








PKR 100 POUNDS. 








PER 
BBL 


PER 100 
LBS. 


PER TON, 
2,000 LBS. 


PER 

20 


CAR-LOAD, 
, 000 LBS. 


Miles. 


I 


2 


3 


4 


5 


6 


A 


B 


C 


D 


E 


F 


H 


■^ 


I. 


M 


N 





P 


5 


cts. 

10 


cts. 
9 


cts. 

8 


cts. 

6 


cts, 

6 


cts 

5 


Cts. 

5 


cts. 

5 


cts. 

5 


cts. 

4 


cts. 
6 


Cts. 

10 


Cts 
6 


Cts. 

4 


|o. 60 


$0.60 


$9.00 


$8.00 


$5.00 


10 


17 


13 


'-' 


9 


8 


7 


6 


7 


7 


5 


9 


12 


9 


5 


0. 70 


0.70 


11.00 


9.00 


6.00 


15 


21 


16 


14 


12 


II 


9 


7 


7 


8 


8 


6 


14 


12 


6 


0.75 


0.80 


12.00 


10.00 


7.00 


20 


25 


19 


17 


14 


13 


10 


8 


9 


9 


1 


14 


16 


15 


7 


0.80 


0.90 


13.00 


11.00 


8.00 


25 


29 


22 


19 


16 


14 


II 


9 


10 


10 


8 


16 


17 


18 


7 


0.85 


0.95 


14.00 


12.00 


9.00 


30 


32 


25 


21 


18 


15 


12 


10 


II 


II 


9 


17 


18 


19 


8 


0.90 


1. 00 


15.00 


13.00 


10. 00 


35 


35 


27 


23 


20 


16 


13 


II 


12 


12 


10 


18 


19 


20 


8 


0.95 


I. 00 


16.00 


14.00 


11.00 


40 


37 


29 


25 


21 


17 


14 


12 


13 


13 


II 


19 


20 


21 


9 


I. 00 


I. 10 


18.00 


15.00 


12.00 


50 


39 


30 


26 


22 


18 


15 


13 


14 


"14 


II 


20 


20 


2t 


9 


1. 00 


1. 10 


18.00 


15.00 


12.00 


6o 


41 


32 


27 


23 


19 


16 


14 


15 


15 


12 


21 


22 


22 


10 


1. 10 


1.20 


20.00 


16.00 


14.00 


70 


43 


34 


29 


23 


20 


17 


14 


15 


15 


12 


22 


22 


22 


10 


I. 10 


1.20 


20.00 


16.00 


14.00 


80 


44 


35 


30 


24 


20 


17 


15 


16 


16 


12 


22 


22 


24 


10 


I. 10 


1.20 


20.00 


16.00 


14.00 


90 


45 


36 


31 


24 


20 


17 


15 


16 


16 


12 


22 


22 24 


10 


1. 10 


1.20 


20.00 


16.00 


14.00 



RELATION OF RAILROAD COMPANIES TO TARIFFS. 



57 



Wilmington and Weldon Railroad, Including its Branches, 
Norfolk and Carolina Railroad, and Petersburg Rail- 
road WILL Apply Freight Tariff as Follows: 



u 

< 
H 
tn 










PER 100 POUNDS. 








en 
►J 

< 


PER 

100 LBS 




Miles 


I 


2 


3 


4 


5 


6 


A 


B 


C 


D 


E 


F 


H 


K 




5 


cts. 

12 


cts. 
10 


cts. 

8 


cts 
6 


cts 
6 


cts 

5 


cts 

5 


cts 

5 


cts. 

5 


Cts. 

4 


cts 
6 


cts. 

10 


cts. 

6 


cts 

4 




10 


18 


^3 


" 


9 


8 


7 


6 


6 


6 


5 


8 


12 


9 


5 




15 


21 


16 


r4 


II 


9 


9 


8 


8 


7 


6 


9 


14 


II 


5K 




20 


24 


18 


16 


13 


II 


9 


8 


9 


8 


7 


II 


16 


13 


6 




25 


27 


20 


18 


15 


13 


10 


9 


10 


9 


8 


13 


18 


15 


6K 




30 


30 


24 


20 


18 


14 


II 


9 


II 


10 


8 


14 


20 


18 


7 




35 


33 


26 


22 


20 


15 


12 


10 


12 


10 


9 


15 


20 


20 


7M 




40 


33 


26 


22 


20 


15 


12 


10 


12 


10^ 


9 


15 


2[ 


20 


8 




45 


36 


28 


.4 


22 


17 


13 


II 


13 


10^ 


9 


17 


21 


22 


8 




50 


36 


28 


24 


22 


17 


13 


11 


13 


II 


9 


17 


22 


22 


8 




55 


39 


30 


26 


23 


18 


14 


12 


14 


II 


10 


18 


22 


23 


s 




60 


39 


30 


26 


23 


18 


14 


12 


14 


115^ 


10 


18 


23 


23 


9 




65 


42 


32 


28 


23 


19 


15 


13 


15 


ii>^ 


10 


19 


23 


23 


9 




70 


42 


32 


28 


23 


19 


15 


13 


15 


12 


10 


19 


24 


23 


9 




75 


44 


34 


30 


24 


20 


17 


13 


15 


12 


10 


20 


24 


24 


9>^ 




80 


44 


34 


30 


24 


20 


17 


13 


15 


13 


II 


20 


26 


24 


9>4 




85 


45 


36 


31 


24 


21 


17 


133^ 


15/^ 


13 


II 


21 


26 


24 


9^ 




90 


46 


36 


31 


24 


21 


17 


13/2 


15/2 


13/2 


II 


21 


^7 


24 


9/2 




100 


47 


38 


32 


26 


22 


18 


13/^ 


153^ 


14 


11/2 


22 


28 


26 


10 




no 


50 


40 


33 


27 


22 


18 


14 


16 


14 


12 


22 


28 


27 


10 




120 


50 


42 


34 


27 


23 


19 


14 


16 


15 


12 


23 


30 


27 


1072 


I 


130 


52 


44 


35 


28 


23 


19 


15 


17 


16 


13 


23 


32 


28 


loYz 




140 


52 


46 


36 


28 


24 


i9>^ 


15 


17 


16 


13 


24 


32 


28 


10% 




150 


54 


47 


37 


29 


24 


20 


15K 


18 


17 


14 


24 


34 


29 


II 




160 


54 


47 


39 


29 


25 


20 


15^ 


18 


17 


14 


25 


34 


29 


II 




170 


55 


48 


40 


30 


26 


20% 


16 


19 


18 


15 


26 


36 


30 


12 




180 


55 


48 


40 


30 


26 


20% 


16 


19 


18 


15 


26 


36 


30 


12 




190 


56 


49 


ioVz 


30% 


27 


20^ 


i6]{ 


19K 


18X 


i5>^ 


27 


38 


3o>^ 


12 




200 


56 


49 


40^ 


303^ 


27 


20^ 


16K 


i9/< 


1834 


15/2 


27 


38 


3oy2 


12% 




210 


57 


50 


41 


31 


28 


20% 


16^ 


19K 


isy. 


16 


28 


30" 


31 


13 





PER 
TON. 



L M I N O 



PER CAR LOAD. 



.85:$9 

I 

.95' 10 
1. 00 II 
1.05 12 

I. 15^14 
1.25 16 
1-3518 

1.35 18, 

i 
1.45 20. 

I 
1.4520, 

i 
1.5522, 



1.55,22 
1.60 24 
1.6024 
1.65:24. 
1.6524. 
1.7024. 
1-70,25. 
1.7525. 
1. 8025. 
1.85J25. 
1.9025. 
1.9525 
2. 00 25 
2.0525 
2. 10 25 
2.1025 
2. 15 25 

2. 18 25 

I 
2. 20 25 



oo|8. 00 

I 
00 9.00 

.00 10. 00 

I 

. 00 10. 00 
,00 11.00 
.00 12. 00 

.00 14.00 
00 14. 00 

,00 16. 00 
00 16. 00 
00 1 7. 00 
00 17.00 
00' 1 7. 00 
00 17.00 
00 18.00 

00 18.00 

! 
00 18,00 

00 18.00 

i 
00 19.00 

00 19. 00| 
00 20. 00 
00 20. 00' 



05 21.00 

i I 

10 2I.OO| 

i 

1022.00 

1522.50, 
1522.50' 

20 23. 00 
20 23.00 

I • ! 
2523.50^ 

I 



$5.00 
6.50 
7.50 
8.50 
9.50 
10.50 
11.50 
12.00 
12.00 
12. 00 
13.00 
13.00 
13.00 
14. 00 
14.00 
14.00 
15.00 
15.00 
16.00 
16.00 

16.75 
17. 00 
17.00 
17.05 
17.05 
17.10 
17.10 
17.15 
17.15 
17.20 



58 



BOARD OF RAILROAD COMMISSIONERS. 



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60 BOARD OF RAILROAD COMMISSIONERS. 



Southern Railway Connpany. 

ATLANTA A^VD CHARLOTTE AIR-LiNIE. 

CHARLOTTE, COLUMBIA AND AUGUSTA. 

NORTH CAROLINA RAILROAD. 

PIEDMOMT RAILROAD. 

WESTERN NORTH CAROLINA RAILROAD— Salisbury to Old Fort. 

WESTERN NORTH CAROLINA RAiLROAD-Asheville to Paint Rock. 

Tariff as follows : 

Passenger — Commissioners' Standard Tariff. 

Freight — Commissioners' Standard Tariff. 



OLD FORT TO ASHEVILLE. 



Freight — May add 10 per cent to Commissioners' Standard 
Tariff. 



WESTERN NORTH CAROLINA RAILROAD-Murphy Division. 

Passenger — First Class, ?^i cents per mile. 

Second Class, 3 cents per mile. 
Freight — May add 25 per cent to Commissioners' Standard 
Tariff. 



ATLANTIC, TENNESSEE AND OHIO RAILROAD. 

Passenger — Commissioners' Standard Tariff. 
Freic4HT — May add 10 percent to Commissioners' Standard 
Tariff. 



ASHEVILLE AND SPARTANBURG RAILROAD. 

Passenger — Commissioners' Standard Tariff. 
Freight — May add 25 per cent to Standard Tariff. 



HIGH POINT, RANDLEMAN, ASH30R0 AND SOUTHERN. 

Passenger Commissioners' Standard Tariff. 

Freight — May add 10 per cent to Commissioners' Standard 



Tariff. 



RELATION OF RAILROAD COMPANIES TO TARIFFS. 



61 



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PER CAR-LOAD, 
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62 BOARD OF RAILROAD COMMISSIONERS. 



NORTHWESTERN NORTH CAROLINA RAILROAD. 

GREENSBORO TO WINSTON. 

Commissioners' Standard Tariff. 

WINSTON TO WILKESBORO. 

Passenger — First Class, S^ cents per mile. 
Second Class, 3 cents per mile. 
Freight — May add 25 per cent to Commissioners' Standard 
Tariff. 



NORTH CAROLINA MIDLAND RAILROAD. 

Passenger — First Class, 3^ cents per mile. 

Second Class, 3 cents per mile. 
Freight — Commissioners' Standard Tariff' with 25 per cent 
added. 



OXFORD AND CLARKSVILLE RAILROAD COMPANY. 

Passenger — First Class, 3i cents per mile. 
Second Class, 3 cents per mile. 
Freight — May add 20 per cent to Commissioners' Standard 
Tariff. 



OXFORD AND HENDERSON RAILROAD COMPANY. 

Passenger— Standard Tariff. 

Freight — May add 20 per cent to Commissioners' Standard 
Tariff. 



YADKIN RAILROAD. 

Passenger — First Class, 34 cents per mile. 

Second Class, 3 cents per mile. 
Freight — May add 25 per cent to Commissioners' Standard 
Tariff. 



RELATION OF RAILROAD COMPANIES TO TARIFFS. H3 



Seaboard Air Line System. 

SEABOARD AND ROANOKE RAILROAD COMPANY. 

Freight— ~ I" Commissioners' Standard Tariff:'. 



RALEIGH AND GASTON RAILROAD COMPANY. 
TT'TDT.Tr. ■ Commissioners' Standard Tariff. 

-T REIGHT — \ 



DURHAM AND NORTHERN RMLWAY COMPANY. 

Passenger — Commissioners' Standard Tariff. 
Freight — May add 20 per cent to Commissioners' Standard 
Tariff. 



RALEIGH AND AU8USTA AIR-LINE RAILROAD COMPANY. 

Passenger — Commissioners' Standard Tariff. 
Freight — May add 15 per cent to Commissioners' Standard 
Tariff. 



CAROLINA CENTRAL RAILROAD COMPANY. 

Passenger — First Class, 3^ cents per mile. 

Second Class, 3 cents per mile. 
Freight— May add 3o per cent to Commissioners' Standard 
Tariff. 



ROANOKE AND TAR RIVER RAILROAD. 
Passenger — Commissioners' Standard Tariff. 
Freight — To Classes 1, 2, 3, 4, 5 and 6, add 20 per cent to Com- 
missioners' Standard Tariff. 
To Classes A, B, C, D, E, F, H, K, L, M, N, and 0, 
add 10 per cent to Commissioners' Standard Tariff. 
To Class B apply Commissioners' Standard Tariff. 



64 



BOARD OF RAILROAD COMMISSIONERS. 



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65 



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66 



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RELATION OF RAILROAD COMPANIES TO TARIFF. 



67 



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68 



BOARD OF RAILROAD COMMISSIONERS. 



ABERDEEN AND 




RELATION OF RAILROAD COMPANIES TO TARIFF. 



69 



ASHEBORO. 



star. 


Troy. 


Filo. 


Candor 


Inland. 


Eagle 
Springs 


Old Store. 


West End. 


Pinehurst. 


Aberdeen. 


ist 


2d 

Cts. 


ISt 2d 


ISt 


2d 


ISt 2d 


ISt 


2d 

cts 


ist 


2d 


isL 

i 


2d 


ist 


2d 


ISt 


2d 


ISt 


2d 


cts. 


cts 


cts' 


cts 


cts. cts 




i 












70 


65 


|i. 10 95 


80 


70 


95 


85 


$1.00 


90 


$1. TO $1.00 


«i.i5 Ii 


.00 


$1.30 


fr.15 


$i^50 


$1.35 


$1.70 


$i^55 


55 


50 


•95 


85 


65 


60 


80 


75 


.90 


85 


•95 


■85 


I. 00 


90 


i^i5 


1. 00 


1-35 


1.20 


1^55 


1.40 


50 


45 


.90 


80 


60 


55 


75 


70 


.85 


80 


.90 


•85 


• 95 


90 


1. 10 


1. 00 


1.30 


1.20 


1.50 


1-35 


40 


35 


.80 


70 


50 


45 


65 


60 


.75 


70 


.80 


•75 


.90 


85 


1.05 


•95 


1^25 


^•15 


1^45 


1.35 


35 


30 


•75 


65 


45 


40 


60 


55 


.70 


65 


■75 


.70 


• 85 


80 


•95 


•85 


1.20 


1. 10 


1^35 


1.25 


30 


25 


.70 


60 


40 


35 


55 


50 


.60 


55 


.70 


■65 


• 75 


70 


.90 


.80 


1. 10 


1. 00 


I^25 


i^i5 


20 


15 


.60 


50 


30 


25 


50 


45 


•55 


50 


.60 


•55 


•65 


60 


.80 


.70 


1. 00 


.90 


1.20 


I. 10 


5 


10 


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45 


25 


20 


45 


40 


•50 


45 


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55 


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1^15 


1.05 


10 


10 


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40 


20 


25 


30 


25 


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35 


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.40 


•.50 


45 


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.60 


•85 


• 75 


1.05 


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-— 


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35 


15 


10 


25 


20 


• 35 


30 


.40 


• 35 


•45 


40 


.60 


• 55 


.80 


.70 


1.00 


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— 


30 


25 


45 


40 


• 55 


50 


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60 


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15 


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30 
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- 




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-. 


: 


..... 


— 


.... 


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-- - 


.... 


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.20 


•15 



70 



BOARD OF RAILROAD COMMISSIONERS. 



03 



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PER CAR-LOAD, 
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les and over 30 

les and over 35 

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RELATION OF RAILROAD COMPANIES TO TARIFFS. 



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72 



BOARD OF RAILROAD COMMISSIONERS. 



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m 


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rf 


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i 


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o 

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V 




S 


TJ 


-o 


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rt 


ca 


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cs 


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cd 


rt 


cd 


cd 


cd 


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cd 


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o 


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lO 


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ro 




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t^ 







RELATION OE RAILROAD COMPANIES TO TARIFFS. 



^ 




HI 




"to 


■<*• 


:J^ 
■* 


-^ 


up 


lO 


ID 


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1 




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8 


8 


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o 


8 

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8 

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8 
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8 


8 
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8 


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8 


o 
o 


8 


8 


8 


8 


8 


8 


8 


o 
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8 


8 


8 


8 


8 


8 


8 


8 


8 


8 
d 


8 


8 


8 


8 
d 


8 

d 


8 

d 


8 


8 


8 


8 


8 


8 


8 


8 


8 


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8 


8 
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OOOi-i>-iwNc>lMr<irofO 



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in VD vO 



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rorOrOr^1--*-*T 
CN5N(N(NCN(NCNN 



in UO ID LO VO VO 



r^ r-» 00 o a> o o 



lo LO vo vo 



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r^ 00 00 00 



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c 





c 


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3 


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3 




3 


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3 


3 


3 


3 


3 


3 


3 


3 


3 


3 


3 


3 


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3 


3 


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-o 


t3 


T) 


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Tl 


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3 


3 


8 


3 


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n 




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74 



BOARD OF RAILROAD COMMISSIONERS. 



O) 



o 

CO 



en TO 



CD 

CD 
O 

CO .. 

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J 


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z 
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mile 

mil 

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Ui 

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UJ 

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bJD 




^ 5/^';^ 


c^ 




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RELATION OF RAILROAD COMPANIES TO TARIFFS. 



Y5 



<r 


. 


Oi 


< 
z 

-J 


a; 
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a 




o 


fH 


CD 


cc 


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rn 


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xn 




CO 


in >. 




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go 




C/J 






n^ 


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fl S 




• 1— 1 


^^ 




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w 


1 




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1 




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^ 


w 




W 


o 




m 


1— 1 




m 


H 




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M 




fL^ 


fx^ 



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O CQ 



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05 O 
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uo lo in 



PI CO ro 






o 


?. 


tc 


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t(? 


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^ 


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o 


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w 


0) 


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to 



76 



BOARD OF RAILROAD COMMISSIONERS. 



iO 


CD . 




b£ 


CD 


a 


bJD^ 


(T! 


-4^ 




eg 

o 


a 




o 


^ 


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siiJids 



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r^ 


\o 


03 lO 


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lO 


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^ 




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c^ 




^ 


M 


^ ON 


ro 



45 2 



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a 


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b 


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c 


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8 1 



RELATION OF RAILROAD COMPANIES TO TARIFFS. 



77 



DURHAM AND CHARLOTTE RAILROAD. 

Passenger — Tariff as follows : 



stations. 


Gulf. 


Palmers. 


Carbonton. 


Haw 
Branch. 


Linwood. 


Glendon. 


Johnson. 


Gulf 


cts. 


cts. 

lO 


cts. 
15 

lO 


cts. 

20 

15 
10 

10 

ID 
25 


cts. 

25 
15 

10 

10 


cts. 
30 

20 

15 

10 

10 


cts. 

45 

35 
30 
25 
20 




10 

15 

20 
25 

30 

45 




lO 

15 
15 
.o 
35 


Haw Branch 

Linwood. 


10 
lO 

15 
30 




10 

20 


15 


Johnson 


15 





EGYPT RAILWAY. 
Passenger — First Class, 4 cents per mile. 

Second Class, 3 cents per mile. 

STAND.ARD FRKIGHT TARIFF FOR TEN (lo) MILES DISTANCE. 



I 


2 


3 


4 


5 


6 


. 


B 


C 


D 


E 


F 


H 


K 


cts. 

18 


cts. 


cts. 

II 


cts. 
9 


cts. 
8 


^1- 


cts. 
6 


Ctv 

6 


cts 

6 


cts 

5 


cts. 

8 


cts. 
12 


Cts 
9 


cts. 

5 



h 


M 


N 





cts. 
70 


cts. 
95 


$10.00 


$9.00 



$6.50 



78 



BOARD OF RAILROAD COMMISSIONERS. 



> 






X 






o 






z 






::^ 






< 






1- 






z 






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< 


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^ 



RELATION OF RAILROAD COMPANIES TO TARIFFS. 



NORFOLK AND SOUTHERN RAILROAD. 

Passenger — Commissioners' Standard Tariff. 
Freight — Tariff as follows: 



Class. 



First Class per loo lb 

Second Class do- 

Third Class do- 

Fourth Class do- 

Fifth Class do_ 

Sixth Class do- 

Class A do 

Class B ____do 

Class C do-- 

Class D do— 

Class E do— 

Class F per barrel 

Class H per loo lbs 

Class K do-- 



smiles 

and 
under. 


Overs 
miles 
and 
under 


15 
miles 
and 
under 


20 

miles 

and 

under 


30 

miles 

and 

under 


5-? 
miles 

and 

under 


70 

miles 

and 

under 


80 
miles 
and 
under 




15- 


20. 


30. 


50. 


70. 


80. 


90. 


$0. 


20 


$0.25 


$0.30 


$0.32 


$0.35 


$0.38 


$0.40 


$0.50 




15 


.20 


.25 


.27 


• 30 


•33 


.35 


.40 




13 


•15 


.20 


.22 


.25 


.28 


.30 


•35 




12 


.13 


.18 


.20 


.22 


.24 


• 25 


•30 




10 


. 12 


.16 


• 17 


.18 


. 20 


.21 


•25 




08 


. 10 


.13 


.14 


•15 


.16 


.17 


.20 




08 


. 10 


•13 


.14 


.15 


.16 


.17 


. 20 




08 


. 10 


.13 


.14 


.15 


.16 


• 17 


. 20 




08 


. 10 


■ 13 


• M 


.15 


.16 


.17 


.20 




06 


.08 


.09 


. 10 


.11 


. 12 


.13 


■15 




08 


. 10 


•13 


• 14 


•15 


.16 


.17 


.20 




10 


•15 


• 17 


.20 


.20 


.22 


•25 


• 25 




.07 


.08 


.09 


. 10 


. II 


. 12 


•13 


•15 




.05 


.07 


.07 


.oS 


.08 


.09 


. 10 


.11 



TARIFF CALDWELL AND NORTHERN RAILROAD COMPANY. 





Amount. 


PASSENGER TARIFF. 

I^enoir to Caldwell Mills - - - 














-25 
• 30 

6.00 
5.00 




FREIGHT RATES. 

lyumber— Collettsville to Lenoir 1 


per car- 
do 


Other freights _ _ __ 









80 



BOARD OF RAILROAD COMMISSIONERS. 



!2 

CO 

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4 




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4 


1 


Guraberry to Jackson 

Gumberry to Mofield 

Jackson to Mofield 





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RELATION OF RAILROAD COMPANIES TO TARIFFS. 



81 



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82 



BOARD OF RAILROAD COMMISSIONERS. 



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RELATION OF RAILROAD COMPANIES TO TARIFFS. 



83 



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84 



BOARD OF RAILROAD COMMISSIONERS. 



SUFFOLK AND CAROLINA RAILWAY. 
Passenoer — Special tariff on file. 
Freight — Tariff as follows : 



PER 100 POUNDS. 



Ten miles and under 

Twenty miles and over ten___ 
Thirty miles and over twenty 



$0. i6 



$0.14 
.18 
.20 



$0. 12 
.14 
.16 



$0. 10 



$0.08 
.09 
. 10 



$0.06 
.07 
.08 



Passenger, 
Freight, 



WARRENTON RAILROAD. 



Special. 



WILMINGTON SEACOAST RAILROAD. 

Passenger, ) q„„ •„! 
Freight, ) ^V^<^^^^- 

Clams— 6 cents per 100 pounds (loaded by carriers). 

53^ cents per 100 pounds (loaded by shippers). 
Carriers' option as to loading. 



Tariff, Classification oQd Rate Tables for Southern 
Express Compaoy. 





Locc 


(I Rates— Mileage Sea 


le. 






SEABOARD AIR-LINE. 




MILEAGE. 


EXPRESS RATES PER 100 POUNDS. 


Over Miles. 


And Not Over 
Miles. 


Merchandise 


Class B. 


Class C. 


Class D. 


I 


25 


$0.30 


fo.30 


$0.30 


$0.30 


25 


50 


.50 


• 45 


.45 


.40 


. 50 


75 


.fto 




• 50 


.40 


75 


149 


.75 


.65 


.60 


.50 


149 


159 


.80 


■ 75 


.70 


.60 


159 


170 


.90 


.75 


.70 


.60 


170 


190 


1. 00 


.80 


•75 


.60 


190 


209 


1. 10 


1. 00 


.90 


.70 


209 


238 


1.25 


1. 00 


.90 


.70 


238 


266 


1.40 


1-25 


1. 15 


.90 


266 


285 


1.50 


1.25 


1. 15 


.90 


285 


333 


1-75 


1.50 


1.25 


1. 00 


333 


380 


2.00 


1.50 


1.25 


1. 15 


3^0 


427 


2.25 


1.75 


1.50 


1.25 


427 




2.50 


2.00 


1.75 


1.40 





Packages not exceeding 5 pounds in weight, or $5 in value, between any two points in North 
Carolina on above-named system of railroads, will be carried for 25 cents. 



ATLANTIC COAST-LINE, SOUTHERN RAILWAY, CAPE FEAR AND YADKIN VALLEY 
AND ALL MISCELLANEOUS ROADS IN THE STATE, AS FOLLOWS: 



MILEAGE. 


EXPRESS RATES PER 100 POUNDS. 


Over Miles. 


And Not Over 

Miles. 


Merchandise. 


Class B. 


Class C. 


Class D. 


I 


25 


$0. 30 


$0.30 


$0.30 


$0.30 


25 


70 


• 50 


.45 


.45 


.40 


70 


149 


•Z5 


• 65 


.60 


•50 


149 


159 


.80 


.75 


.70 


.60 


159 


170 


.90 


•75 


.70 


.60 


170 


190 


I. 00 


.80 


•75 


.60 


190 


209 


I. 10 


1. 00 


.90 


.70 


209 


238 


r.25 


1. 00 


.90 


.70 


238 


266 


1.40 


1.25 


i^i5 


.90 


266 


28s 


1.50 


1.25 


I- 15 


.90 


285 


333 


1.75 


1.50 


1.25 


1. 00 


333 


380 


2.00 


1.50 


1.25 


I- 15 


380 


427 


2.25 


1-75 


1.50 


1.25 


427 




2.50 


2.00 


1-75 


1.40 





Packages not exceeding 5 pounds in weight, or $5 in value, between any two points in North 
Carolina on above-named system of railroads will be carried for 25 cents. 



EXPRESS-JOINT TARIFF. 

On all shipments originating and terminating in this State which shall pass over the whole or 
portions of two or more roads not under the same control, the maximum rates charged shall not be 
greater than the sum of the local rates on such freights, less ten (10) per cent for the distance hauled 
over each road . 



86 



BOARD OF RAILROAD COMMISSIONERS. 





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BOARD OF RAILROAD COMMISSIONERS. 



Express Classificatior). 



SECTION "A."— Advertisiog Matter, consisting of Printed, Engraved or Photographed Adver- 
tisements, on paper or card board (not under glass), and Almanacs, Signs and Cards, without glass, 
in frames or racks, may be charged for at the merchandise rate per loo pounds for actual weight. 

*SECT10N " B." — The following matter may be charged for at the merchandise rate per loo 
pounds for actual weight, charges to be prepaid or guaranteed : 

Auxiliary Newspapers, Patent Insides and other appliances used in place thereof, including 
reading-matter plates, minimum 25 cents. 

Packages of Clothing shipped to or by laundries, minimum 30 cents. 

Catalogues and Prices Current, with prices extended, to and from dealers and their traveling 
salesmen, value limited to $10, minimum 30 cents. 

fSECTION "D." Kates on Printed Matter and Seeds and Bulbs, prepaid, for Manu- 
facturers, Publishers and Dealers. 

The following articles may be carried at 10 cents for each i>2 pounds or less, and for single pack- 
ages exceeding i]^ pounds one cent for each additional two ounces or fraction thereof, unless the 
graduated rate is less. If the through rate exceeds $8.50 per 100 pounds, no package weighing over 
four pounds, except single books, will be carried at these rates : 



Almanacs. 

Blanks, printed (bound or in 
sheets). 

Blotters and Blotting Pads. 

Books, printed (bound or un- 
bound). 

Bulbs * 

Calendars. 

Cards, printed. 

Catalogues. 

Circulars. 

Chromos. 

Chrorao-Lithographs. 

Cuttings. 



Kngravings. 

Envelopes (address printed). 

Hand bills. 

Heliotype Work. 

Insurance Policies (blank). 

Isabels. 

Uthograph Views of Cities (mount- 
ed on cloth, with rollers). 

Lithographs. 

Magazines. 

Maps. 

Pamphlets. 

Paper for Cash Registers (printed 
on rolls or sheets). 



Periodicals. 

Photographs (not framed). 

Plants. 

Posters. 

Prospectuses. 

Proofsheets. 

Publications. 

Roots. 

Scions. 

Seeds.f 

Sheet Music. 

Show Cards (unmounted). 

Stereoscopic Views. 



Any of the above-mentioned articles which represent advertising may be taken under Section A 
when it gives a lower rate. 

The following-named articles are not included, and, whether enclosed with the above-named 
matter, or separately, will subject the shipment to merchandise tariff: Blank-books, Blank Cards, 
Card boards, Blank Envelopes, Flexible or Paper Patterns, Letter Paper, Ornamental Paper, and 
Samples of Merchandise, including grain, cloth, medicine and sample cards. 

Printed-matter rates apply solely to articles enumerated, and only when shipped by manufac- 
turers, publishers or dealers. The value of each package must be limited to ten dollars, be prepaid, 
and have the nature of the contents written, stamped or printed thereon, and be so packed that the 
description may be readily verified by examination. 

I SECTION " E." — Packages of Merchandise (not including jewelry). Grocers' Samples, and 
Electrotype and Stereotype Plates for advertising cuts, value not exceeding ten dollars, may be for- 
warded at a rate of i cent per ounce ; no charges less than 15 cents per package, charges prepaid. 



* When graduated or other rates quoted are less than these, they should be applied. When ship- 
ments are ordered returned, these rates apply. 

t Packages of Bulbs or Seeds exceeding 40 ounces in weight, 4 cents per package less than rate 
of 3^ cent per ounce, unless regular graduate is less. 

X When graduated or other rates quoted are less than these, they should be applied. When ship- 
ments are ordered returned, these rates apply. 



EXCEPTION SHEET. 



89 



Exception S^eet. 



AGRICULTURAL IMPLEMENTS. 

Classification Card quotes two classes of Agricultural Implements. Bulky implements will be 
subject to double merchandise rates. Others will be charged merchandise rates. 



The following are bulky: 

Cleaners, Cotton-seed. 

Cradles, Grain, set up. 

Cultivators, set up. 

Cutters, Ensilage, Straw and Hay, set up. 

Distributors, Guano, set up. 

Drills, Grain, set up. 

Dusters, Bran, set up. 

Evaporators, Fruit. 

Evaporators, Sugar. 

Fans, Wheat. 

Horsepowers, Railroad or Endless Chain. 

Hullers, Cotton-seed and Clover. 

Incubators, K. D., packed. 

Manure Spreaders, set up. 



Mills, Fan. 

Mills, Sugar, with trains. 

Mowing and Reaping Machines, Binders and 
Harvesters, whether combined or separate, 
set up. 

Planters, Corn and Cotton, set up. 

Plows, Gang and Sulky. 

Presses, Hay and Cotton, set up. 

Purifiers, Middlings. 

Rakes, Horse, set up. 

"Wheelbarrows, Railroad, common carriers' con- 
venience. 

Wheelbarrows, Wood, set up. 



Such of these articles as can be carried by Express will be taken at double merchandise rates. 
Others will be carried at merchandise rates. 



CLASSIFICATION OF PERISHABLES, ETC., CARRIED AT LESS THAN MERCHAN- 
DISE RATES. 

For the purpose of promoting local traffic between points on the lines of this company, and 
developing the production of the commodities herein quoted at the same. Agents are authorized to 
use rates to be found by using the following scale : 

This scale or these rates are not authorized to be used on any business transferred to other 
express companies, nor on any business received from them. 

Rates on this class of business to and from points reached by other express companies are known 
as " Through Rates," and will be furnished upon application to the General Auditor when necessary. 

Following classification is made : 

CLASS A.— To consist of merchandise. 



CLASS B.— To consist of the following : 
Asparagus, Celery, 

Dressed Poultry, Coarse Furs, 

Berries, Eggs, 

Butter, Fish, 

Cherries, Game, 

CLASS C— To consist of the following: 
Beans, Peaches, 

Green Hides, Peas. 

Ice-cream, Plums, 



Honey (in the comb), 

Trees and Shrubs (for planting). 

Oysters (except in shell). 



Strained Honey, 
Turtles (in barrels), 
I,ettuce (gross weight). 



90 



BOARD OF RAILROAD COMMISSIONERS. 



CLASS D.— To consist of the following : 



Ale, 

Apples, 

Bananas, 

Beer, 

Beets, 

Cheese, 

Crackers, 

Chestnuts, 

Cabbage, 

Carrots, 

Cocoanuts, 

Cider, 

Compressed Yeast, 



Cantaloupes (in crates or bar- 
rels), 
Cucumbers, 
Egg Plant, 
Grapes, 
Greens, 
Green Corn, 
IvCmons, 

Mineral and Spring Waters. 
Oranges, 

Oysters (in shell), 
Okra, 

Pineapples, 
Pomegranates, • . 



Potatoes, 

Pears, 

Parsnips, 

Pop, 

Radishes, 

Salt and Dry Fish, 

Sausage, 

Squashes (in crates), 

Sugar Cane, 

Soda Water, 

Tomatoes, ^ 

Turnips. 



FRESH MEATS.— See Mileage Scale. 

The following Scale of Charges will apply as hereinbefore instructed : 



When the Rate on 
Merchandise is 



|o. 4o_ 
.50- 
.6o_ 
•75- 
.90_ 

I.00_ 

1.25- 
1.50- 

1-75- 

2.00- 
2.2-- 

2.50- 
2.75- 
3. 00- 



CHARGE AS FOLLOWS ON 
OTHER CLASSES : 



Class B. Class C. Cla.ss D 



$.40 

• 45 

• 50 
.65 
•75 
.80 

1.00 
i^25 
1.50 
i^50 
1-75 
2.00 
2.00 
2.25 



$0.40 
.45 
•50 
.60 
.70 
.75 
.90 

I- 15 
1.25 
^•25 
1.50 
1-75 
1-75 
2.00 



$0.40 
.40 
.40 
•50 
.60 
.60 
.70 
.90 
1. 00 
^•I5 
1^25 
1.40 
r.50 
1.75 



When the Rate on 
Merchandise is 



$3- 25- 
3^50- 
3^75- 
4.00- 
4-25- 
4.50- 
4^75- 
5.00- 
5^25- 
5.50- 
5-75- 
6.00- 
6.50- 



CHARGE AS FOLLOWS ON 
OTHER CLASSES : 



Class B. Class C. Class D 



$2.25 
2.50 
2.50 
2.75 
3.00 
3.00 
3.00 
3^25 
3-25 
3-50 
3^75 
4.00 
4.00 



$2.00 
2.25 
2.25 
2.50 
2.75 
2.75 
2.75 
3^00 
3.00 
3^25 
3.50 
3^75 
3-75 



I1.75 
2.00 
2.00 
2.25 
2.50 
2.50 
2.50 
2.75 
2.75 
3.00 
3^25 
3^5o 
3^50 



Fresh fish requiring ice for preservation in transit may be carried between all points at net 
weight, with 25 per cent added when ice is used. , 



FISH RATES.— Special. See File Circulars, 90 and 91. 



DECISIONS 



AND 



ADJUSTMENT OF COMPLAINTS. 



Free Passes. 

The Commission in session December, 29, 1897, issued order as follows : 

Whereas, By section 4 of the Railroad Commission Act, ratified March 5th, 1891, 
it is made unlawful for any railroad to make or give any undue or unreasonable 
preference or advantage to any particular person in any respect whatsoever in any 
matter of transportation to the prejudice or disadvantage of another person in any 
respect whatsoever ; and whereas, said Act, according to the construction of the 
courts, prohibits the collecting or receiving from any person a greater or less com- 
pensation for any service rendered in the transportation of passengers or property 
than it demands or collects or receives from any other person for a like service under 
substantially similar circumstances and conditions ; and whereas, said Act prohibits 
any discrimination whatever between individuals, firms, companies or corporations, 
in the matter of passenger or freight service, and commands equality as to all, sub- 
ject to certain exceptions particularly set forth in section 25 of said Act ; and 
whereas, said Act has been judicially interpreted to prohibit what is known as "dead 
head" or " free passes," subject to the exceptions aforesaid ; it is therefore 

Resolved, That this Commission will take whatever measures that may be lawful 
to enforce the aforesaid provisions of said Act, and to enforce the penalties therein 
prescribed for its violation. 

It is further ordered that the Clerk of this Board give due notice of this resolution 
to all railroads doing business in this State, by transmitting copy of this resolution 
to the managing officers of the railroads of the State. 

January 1, 1898. 



LAMBETH & BRO. 



vs. 
RALEIGH AND AUGUSTA RAILROAD COMPANY. 

Lost Freight. 

Complaint for failure of defendant to deliver shipment of wool, and asking that 
an order be issued requiring the payment of damage sustained. 

Served November 18, 1897. 

At a session of the Commission January 1, 1898, it appearing that the loss com- 
plained had been paid to plaintiff and no further relief was demanded, case was 
closed. 

January 1, 1898, 



92 BOARD OF RAILROAD COMMISSIONERS. 



CONNER 

vs. 

WESTERN UNION TELEGRAPH COMPANY. 

Telegraphic Service. 

Plaintiff filed his complaint alleging very poor and unsatisfactory telegraphic ser- 
vice at Rich Square ; that for hours at a time a message can not be sent or received 
on account of the poor equipment of the line. 

Copy of complaint was served on defendant, with request to investigate the cause 
of complaint. Answer was received through Superintendent J. B, Tree, saying that 
the service had been improved, a new set of repeaters and other telegraphic appli- 
ances, and that in future there would be no cause for complaint. 

At a session of the Commission January 1, 1898, it appearing that no further relief 
w^as asked, case was closed, 
January 1, 1898. 



Telephone Rates. 

The Railroad Commissioners, having considered the matter of Telephone Rates, 
issued order as follows : 

Circular No. 73. 

On and after the first day of February, 1898, all Telephone Companies within this 
State, whether incorporated or otherwise, will be allowed a maximum charge for 
service, as follows, viz : 

PLACE OF BUSINESS. 

Special wire $30.00 per year. 

2 and 3 Party wire (each) 24.00 per year. 

4 and 5 Party wire (each) 18.00 per year. 

RESIDENCE. 

Special wire $18.00 per year. 

2 and 3 Party wire (each) ... 16.00 per year. 

4 and 5 Party wire (each) 14.00 per year. 

This tariff does not apply to service rendered outside the corporate limits of any 
city or town. 

On January 17, 1898, the Southern Bell Telephone Company filed exceptions to 
this order as follows : 

(1) The Southern Bell Telephone and Telegraph Company excepts to the ex parte 
order of the Board of Railroad Commissioners of North Carolina fixing the annual 
rentals of telephone instruments and exchange service, on the ground that, under 
what is known as the Railroad Commission Act, passed by the Legislature of said 



COMPLAINTS AND DECISIONS. 93 

State during the year A. D. 18^1, and the acts amendatory thereof, the said Rail- 
road Commission had no authority or jurisdiction to enter said order. 

(2) That the Railroad Commission sitting as a Court of Record in a cause known 
as the State of North Carolina upon the relation of the Board of Railroad Commis- 
sioners upon the complaint of G. W. Purefoy, M. D., et als. against The Southern 
Bell Telephone and Telegraph Company, a corporation of the State of New York — 
adjudged, and decreed that said Board had no jurisdiction to regulate or fix the rate 
for the rental of telephone instruments and exchange service, as witness copy of its 
said adjudication or decree herewith annexed, marked Exhibit "A." That each 
adjudication and decree has not been appealed from, and remains in full force and 
effect, as res adjudicata between the parties and between the State of Nort^ Caro- 
lina, the said Board of Railroad Commissioners and the said Southern Bell Telepiione 
and Telegraph Company. 

(3) That said order of January 7, 1898, was made without notice to the said South- 
ern Bell Telephone and Telegraph Company without giving it an opportunity to be 
heard and without evidence submitted to the said Board of Railroad Commissioners 
to support the said order, and it is setting aside by the said Board not sitting as a 
court, but as a ministerial body, of what it had decided and decreed as a court, and 
what could only be set aside by judicial proceedings duly taken. 

(4) That the said Board of Railroad Commissioners attempted to lawfully pre- 
scribe rates for the annual rental of telephone instruments and exchange service, 
and the same w^ere published on pages 51 and 52 of its Sixth Annual Report ; that 
even if the said Board had the power to fix such rates yet it was necessary for the 
said Board to have testimony before it in order for it to change the rates to those 
as set forth in its said order of January 7, 1898, or for it to show in what other way 
it concluded that the said rates set forth in its said order of January 7, 1898, were 
just and reasonable. 

(5) Without evidence it would be impossible for the said Board to say w4iat rates 
would be just and reasonable, and the said Board must say upon wdiat evidence the 
said rates ordered January 7, 1898, are based. 

(6) That in fixing the rates named in said order of January 7. 1898, the said Board 
of Railroad Commissioners did not consider the requirements set out in section 5 of 
said Railroad Commission Act passed A. D. 1891, and ignored the legislative restric- 
tions therein set forth — the same being published by said Board in the Sixth Annual 
Report thereof. 

(7) That the General Assembly of the State of North Carolina, from which Board 
of Railroad Commissioners derived its power, authority and existence, did not give 
or attempt to give the said Board the power to make an arbitrary rate ; and the 
said rates as per said order of January 7, 1898, being arbitrary, are void. 

(8) That if the General Assembly of the State of North Carolina attempted to 
give said Board the powder or authority to make arbitrary rates, the said rates as per 
said order of January 7, 1898, being arbitrary, are null and void, it being beyond the 
power of the said General Assembly to give said power as aforesaid. 

(9) That said order of January 7, ]898, M'as in derogation of the constitutional 
right of the said Southern Bell Telephone and Telegraph Company in that it violates 
the provisions of section 1, of the 14th amendment to the Constitution of the United 
States in that the enforcement of said rates would deprive said company of its prop- 
erty without due process of law and deny to it the equal protection of the laws 
which protect private property. 

(10) That the said rates prescribed or fixed in said order of January 7, 1898, are 
not fair, just or reasonable. 



94 BOARD OF RAILROAD COMMISSIONERS. 

(11) That the said Board of Railroad Commissioners is not lawfully constituted — 

(a) For that the part of said Railroad Commission Act giving the Governor of 
North Carolina the power to remove the Commissioners was in violation of the Con- 
stitution of North Carolina and of the United States. 

(b) For that a supercedeas had been allowed by the Chief Justice of the Supreme 
Court of said State and had been issued preventing L. C. Caldwell and John H. 
Pearson from acting as members of said Board, and when said order of January 7, 
1898, was made said Caldwell and Pearson were acting as such members. 

On February 17, 1898, a hearing on the exceptions was given. After argument of 
counsel and consideration it is ordered : 

That each and all the exceptions of the Southern Bell Telephone and Telegraph 
Company to Circular No. 73 fixing a tariff of rates for Telephone Companies be and 
are hereby overruled. Said rates effective on and after the first day of February, 
1898. 

From this order the defendant appealed. 

Case pending. 

January 1. 1898. 



N. GLENN WILLIAMS 

vs. 
SOUTHERN RAILWAY. 

Commutation Ticket. 

Complainant bought a reduced rate return ticket from Greensboro to Charlotte ; 
the said ticket was marked in red ink, " Not good on Southwestern Vestibule Lim- 
ited."' Plaintiff, on return from Charlotte, got aboard this train and conductor 
refused to honor the return coupon of ticket, and demanded the regular fare from 
Charlotte to Greensboro. Plaintiff paid the fare and now asks the Commission to 
require that sum be refunded to him inasmuch as he held a return ticket. 

At a session of the Commission January 13, 1898, this case was called for hearing 
and it appearing that the conditions were marked in red ink and plainly, as above 
set out, the company, it seemed, had a right to impose these conditions in considera- 
tion of the low rate charged, and the commission concludes that the relief asked by 
the plaintiff ought not to be granted, but that plaintiff was entitled to such refund 
as would be under chapter 83, Laws of 1897, which reads as follows : 

"That when any round-trip ticket is sold by any railroad company it shall be the 
duty of said company to redeem the unused portion of said ticket by allowing to the 
legal holder thereof the difference between the cost thereof and the price of a one- 
way ticket between the stations for which the said round-trip ticket was sold." 
January 13, 1898. 



COMPLAIJSTS AND DECISIONS. 95 

H. C. OLIVE 

vs. 

SOUTHERN EXPRESS COMP,ANY. 

Overcharge. 

Complaint filed December 27, 1897, for overcharge. 

Complaint served and answer filed that overcharge had been promptly refunded. 
Case closed. 

January 25, 1898. 



W. J. WEDDINGTON 

vs. 

WILMINGTON AND WELDON RAILROAD COMPANY. 

Damage. 

This was a complaint for damage to contents of trunk, alleging rough handling 
as the cause of damage. 

Complaint was served on defendant December 31, 1898, and answer thereto filed 
January 5, 1898, enclosing affidavit from the agent who handled the trunk to the 
effect that trunk was carefully handled, and that the trunk had the appearance of 
considerable age and not well put together. 

It appeared further that the contents of the trunk did not consist of clothing 
apparel at all, but a phonograph outfit, which was damaged, and upon which the 
claim was predicated. 

At a session of the Commission January 13, 1898, the Commission, after investi- 
gation and consideration of the matter, addressed a communication to complainant 
advising that inasmuch as such articles as phonograph outfits, etc., were shipped in 
trunk as baggage it would not be justifiable in ordering the relief demanded. 
January 13, 1898. 



WILSON LUMBER COMPANY 

vs. 

CAROLINA AND NORTHWESTERN RAILROAD COMPANY. 

Delay in Furnishing Cars. 

Complainants are manufacturers and dealers in lumber, and allege that they have 
suffered great inconvenience by the failure of defendant to furnish sufficient num- 
ber of cars for the shipping of their lumber, and ask for relief. 

Notice served November 22, 1897, and answer thereto filed November 28, 1897. 

At a session of the Commission January 13, 1898, a letter is read from complain- 
ants saying that they had had no further trouble in getting cars, and desired no 
further action. 

January 18, 1898. 



96 BOARD OF RAILROAD COMMISSIONERS. 

GEO. W. THOMPSON 

vs. 

RALEIGH AND GASTON RAILROAD COMPANY. 

Damage. 

Complaint alleges that plaintiff, on the 24th day of December, 1897, bought two 
tickets over line of defendent's road from Raleigh via Moncure to Pittsboro ; that 
defendant's train was delayed in leaving Raleigh and consequently on arriving at 
Moncure its connecting train for Pittsboro had gone, and plaintiff was required to 
hire private conveyance for transportation through the country at an increased 
expense. 

Plaintiff asks that this additional expense be required to be refunded to him by 
defendant, on the ground that plaintiff should have been advised at Raleigh before 
departure of train that the connection at Moncure would not be made. 

At a session of the Commission at Raleigh January 14, 1898, this case was called 
for hearing, and after consideration it was adjudged that the plaintiff was entitled 
to the relief asked, and so ordered. 
January 14, 1898. 



BOURNE & CO. 

vs. 

WILMINGTON AND WELDON RAILROAD COMPANY. 

Lost Freight. 

This was a complaint asking that defendant be required to pay for lost shipment 
of meal. 

Complaint was served and answer filed that claim would be promptly paid. 

At a session of the Commission January 13, 1898, it appearing that defendant had 
paid to complainant the amount of claim as demanded, case was closed. 
January 13, 1898. 



DAVENPORT 

vs. 

SOUTHERN EXPRESS COMPANY. 

Delay in Delivery of Freight. 

This was a complaint for delay in delivery of package sent by express from Chi- 
cago to Manteo. 

Defendant was asked to investigate the matter at once. 

At a session of the Commission on January 25, 1898, it appearing that the shipment 
had been delivered and that plaintiff was satisfied, case was dismissed. 
January 25, 1898. 



COMPLAINTS AND DECISIONS. • 9T 



D. L. SANDERS 

vs. 

ATLA.NTIC AND NORTH CAROLINA RAILROAD COMPANY. 

Overehai'ge. 

This was a complaint for overcharge on shipment of starch from New York to 
Moreliead City, plaintiff's place of business. 

Plaintiff" was advised on November 6, 1897, that tliere was an overcharge if the 
weight and freight paid was as stated by him, and to call on defendant to refund 
same, and if not done to advise the Commission further, furnishing bill lading, etc. 

At a session of the Commission January 35, 1898. no further communication hav- 
ing been received from plaintiff, case was dismissed. 
January 25. 1898. 



K. E. TERRY 



vs. 
ATLANTIC AND NORTH CAROLINA RAILROAD. 

Complainant, a manufacturer of lumber at Morehead City, filed complaint alleg- 
ing that he had erected a mill on the line of Atlantic and North Carolina Railroad 
at a cost of over $10,000, and had made arrangement with defendant for a side track 
or switch, which was put in. 

Plaintiff abandoned the mill for some time, only working in a small way, and 
was absent North. On his return found that the switch had Ijeen taken up. and was 
unable to prevail on defendant to replace same. 

A copy of complaint was served on December 18th. with request for immediate 
answer. On December 30, 1897, answer was filed through S. L. Dill, Superintend- 
ent of defendant company, as follows : 

'■ The freights furnished by plaintiff has never paid us at any time for the cost of 
putting in the siding : the mill has not for four years, which he claims that he run 
it, given us fifty cars of freight : his main business has been with sailing vessels, 
and he is certainly not now in a condition to average with us a car a week, and to 
reach the plant referred to we have to keep up a track of 400 yards. We have now 
opposite his mill a spur track which will hold three cars. Mr. Terry will not guar- 
antee us any freight, and it would be a hardship to compel us to put in this track.'" 

At a session of the Commission January 25. 1898. this case was called, and after- 
a full investigation it is adjudged that unless plaintiff can give some assurance of a 
sufficient business to justify the road in placing the side track the relief asked should 
not be granted. 

Januarv 25, 1898. 



J^S BOARD OF RAILROAD COMMISSIONERS. 

ciTizB^Ns OF statksvii;lk 

SOUTHERN RAILWAY COMPANY. 

V of ion Rate. 

This was a petition by the citizens of Statesville, representing merchants and 
cotton buyers, complaining of the freight rate on cotton over Western North 
Oarohna Railroad and A. , T. and O. , in that Htatesville was discriminated against. 

The petition was followed by letters from prominent cotton bl*okers of States- 
ville, alleging that the rate of freight on cotton had recently been raised, and 
that the previous rate was a satisfactory one, and asked that it be restored. 

The Coumiission, at a session January 15, 1898, restored! the old rate, which 
was sixth class of Commissioners' Classification, for The W^estern North Caro- 
lina Railroad and Atlantic, Tennessee and Ohio Railroad. 

On January 24, 1898, defendant filed exceptions to this order, as follows : 

First. The present rate is just and reasonable, and is not unreasonably high. 

Second. That .the rate, as ordered, is not^a reasonable and just rate, in that it 
will fail to yield the said Southern Railway Company a reasonable return for 
the service expected to be I'endered thei'eff)T-. 

.Vt a session of the Commission at Raleigh, Jainiary 25. 189S, a hearing- was 
had on the exceptions. 

The Commission, after argument' of counsel and consideratioii. ordei-ed that 
the exceptions be overruled. 
Januarv 25, 189H. 



CITIZENS OF LUMBERTON 

vs. 

(CAROLINA CENTRAL RAILROAD COMPANY. 

F(i s.sem/f I • iSfa tioii . 

This was a complaint from the citizens of Lumberton, saying th.at defendant 
company had failed to comply with a former order of the Commission in the 
matter of a, freight and passenger station at that place. Defendants were called 
upon for answer to the complaint. 

At a session of the Commission, January 25, 1898, this case was called, and it 
appeared by communication from plaintiff that the accommodations had now 
been furnished to the satisfaction of all, and that no further relief was asked. 
Januarv 25, 1898. ' 



UTLEY 

vs. 

SOUTHERN RAILWAY AND RALEKiH AND (GASTON. 

Train ('onnection . 

Plaintiff alleges great inconvenience to the traveling public on account of the 
present schedule and failure of train No. 88 of Seaboard Air Line and train 



COMPLAINTS AND DECISIONS. 99 

No. 16 of The ^Southern Railway, to make close connection at Raleigh. Tlie 
first train arriving- at 11.30 a. ni., and the second at 11.45 a. m. 

The Connnission addressed a coinniuni cation to defendants requesting- tliat 
this connection be made. 
January 35, 1898, 



vs. 
RALEKiH AND (iASTON RAILROAD COMPANY. 

Frejxn/nif^Ht of Freight. 

This was a complaint alleg-ing- that The Raleig-h and Oastoii Railroad Com- 
Ijany refused to receive and forward shipments of paper stock from Raleigh to 
Neuse unless prepayment of the freight charges was made. Complaint was 
served January 10, 1898, and answer thereto filed through C. R. Capps, (xeneral 
Freight Agent of defendant company, to the efi:ect that defendant had suffered 
loss by the failure of same consignee on previous shipment, and did not desire 
to run further risk. 

At a session of tlie (Jonnnission January 25, 1898, it was adjudged and so or- 
dered, that the relief asked be not granted. 
Januarv 25, 1898. • 



S. !S. WINDER & COMPANY 

vs. 

SOUTHERN EXPRESS COMPANY. 

This was a complaint for damage sustained 1)\' theft or loss of peaches in 
transit, and further makes claim for overcharge. 

Plaintiff alleges that they were guaranteed a lower rate than charged for, and 
that peaches were in bad condition when received, the packages broken and 
contents partly gone. 

Notice was served on defendant December 81. 1898, as follows : "If you received 
these peaches in good order, and if not in good order when received, and did 
not so state on bill of lading or way bill, it would seem that you were responsi- 
ble for such loss as may have occurred. Take the matter up with complainant 
and endeavor to effect a settlement, advising the Connnission of action taken." 

Defendant answers, through W. J. Croswell, Superintendent: "'I have been to 
see these parties the second time, and there is no reason in them. They simply 
make a claim without any evidence whatev^er to substantiate it. They claim 
they were giv^en a rate of eight cents a basket, which is positively denied, and 
1 have a statement from both our agent and his clerk to ihat effect. 1 hand you 
also copies of all way-bills, in which shipments of peaches for this firm were 
entered, and you will see at a glance that every charge is uniform and at a rate 
of 40 cents per 100 pounds, which was the rate we gave them. We have not 
overcharged one cent. 



100 BOARD OF RAILROAD COMMISSIONEKS. 

" As to the condition of the fruit when received from the steamer, I have to say 
that in some cases we receipted to the steamer for it in bad order, and here- 
with submit as corroboratory evidence that the fruit came to us in bad order. 
You will understand that this matter was not sent by express at all. I have 
investigated the matter with great care, and am thoroughly convinced that 
there is no justice or merit in the claim.'' 

At a session of the Connnission January 25, 1898, this case was called, and the 
facts appearing- as stated by defendant, it vs^as adjudged that i)laintiff ought 
not to be granted relief asked, and so ordered. 
Jaiuiarv 25, 1898. 



ANNIE I.. WALTON 

vs. 

AVKSTKRN UNION TELE(iRAPH (COMPANY. 

Damage. 

Complainant alleges rhat she delivered aniessage at the office of defendant at 
Asheville to be transmitted to Biltmore. and said message was not delivered 
within a reasonable time, causing complainant to suffer damage. 

Complaint w^as served with request for answer, which was received thiough J . 
B. Tree, Superintendent, stating that defendant's agent had used all diligence 
possible in endeavoring to get . the message delivered, and, furthermore, that 
message was not prepaid, and connecting line of defendant at Biltmore refused 
to forward unless prepaid, and that complainant was so advised. 

The case was called -at a session of the Commission February 14, 1898; and it 
appearing that tlieX'oni-^Jssion did not have jurisdiction of the subject- matter 
of the com])laint, it was^adjadged that tlie action be dismissed. 
Februarv 14. 1898. 



J. K. RAjLSEY 

vs. 

ATLANTIC AND NORTH CAROLINA RAlLROAl) (U)MPANY. 

Overch((rge. 

Complaint for]overcharge*on shipment of butter from New York to plaintiff's 
place cf businesc?, Morehead City. Copy (;i C(;mi)laint was nerved on defendant 
with request to refund the apparent oveicharge. 

At a session of the Ccmmission, February 17, 1898, it appefiring that the over 
charge had been ]-efunded to ]:>laintiff, case was closed. 
Februarv 17, 1898. 



COMPLAINTS ANJ) DECISIONS. 101 

Bl ii: 

vs. 
NORFOLK AND WHSTERN KAILROAD COMPANY. 

I)isc()niinuan<:(' of Agi^itcy. 

This was a complaint filed against defendant for dis(*(jntinuing agency at Ba- 
hama, a station on the line of Lynchbui-g and Durliam Railroad, and making 
said station a prei)ay station. 

(V)mi)lainant alleged that it would cau.se a great inconvenience to the ]>eople 
around Bahama. A letter was also received from the Business Mens' Associa 
tion of Danville, saying that it would not only inconvenience the people in the 
section of Bahama, but that it would resti-ict planters in that vicinity from 
marketing their tobacco i\\ Danville and Lynchburg. 

Complaint was serv^ed on February 8th and answei- thereto filed February 12, 
thi'ough L. E. Johnson, (General ^Superintendent of defendant comi:)any, as fol- 
lows: The business .done at Bahama did not justify the expense of an agent; 
there is no necessity for the keeping open of the station, on account of the close 
proximity of Wi'lardsville station, which is 2.3 iiules south of Bahama, and 
Rougemont station, 4.6 miles north of Bahama, both of which have agents; 
that it is a thinly settled country, and no business done at the place of any 
consequence, and would work. a hardship on ih.e coun^^any to be required to 
keep an agent. 

This case was called for hearing at a session of the Conniiission February 17, 
1898, and the facts appearing as stated b\' the defendant, it is adjudged 
that the complaint be dismissed. 
Februarv 17, t89S. 



CITIZENS OF KELFORD 

vs. 

NORFOLK AND CAROLINA RAILROAD COMPANY. 

Petition for Freight and P(i>i.seiujer l^tation. 

This was a petition by the citizens of Kelford, a station on the line of The 
Norfolk and Carolina Railroad, complaining of the insufficient freight and pas- 
senger accommodations furnished by the said company at Kelford. 

Petitioners allege that there is only one small waiting room for all colors and 
classes of passengers, and one freight room that is entirely too small for the 
amount of business done, and prays that the Conunission will issue an order 
commanding defendants to furnish better accommodations for both fri'ight and 
passengers. 

A copy of the complaint was served on defendant February 8, 1898, and on 
February 12, 1898, answer was filed through G. M. Serpell, Gfeneral Manager, 
saying that two additional rooms would be added to the present btiilding at 
once. 

At a session of the Commission February 17, 1898, it appearing that the relief 
asked was being granted, and that no further action was desired, case was 
closed. 

February 17, 1898. 



10^ BOARD OF RAILROAD COMMISSIONERS. 

C. W^^. (lARRETT & CO. 

vs. 

ATLANTIC COAST LINE v^YSTEM. 

Overcharge. 

Complaint for overcharge on shipments of empty barrels from Lewiston to 
Weldon. 

Complaint served and answer filed February 17, 1898, saying that the over- 
charge was made through error and had been refunded to plaintilT. Closed. 
Februarv 17, 1898. 



ClaHnifieation of Corn. 

On February 1, 1898, the Commission issued Circular No. 75, making classifica- 
tion of corn in sacks, or bulk carload, minimum 25,000 pounds, Class K, Com 
missioner's Standard Tariff; and providing that all shipments which shall pass 
over the whole or portions of two or more roads, in applying tariff, shall be con- 
sidered as upon one and the same road. 

The different systems of roads filed exceptions to this order, on the ground 
that the classification as ordered is unreasonable and unjust, in that it reduces 
the rate to such an extent the carriers are required to perform a service for less 
than a reasonable return therefor; and on joint shipments would enfor(*e a rate 
less than the cost of transportation. 

At a session of the Commission, February 17, 1898, a hearing of the exceptions 
was had. The object of the low rate on corn being to enable shippers in East 
ern North Carolina to market their corn in Central North Carolina, Circular 
No. 76 was repealed and Circular No. 79 issued, making a rate of 10 cents per 
100 pounds on corn from New Bern to Raleigh. 
Februarv 17, 1898. 



Fertilizer Rates. 

At a. session of the Commission, the question of a revision of the fertilizer tariff 
being under consideration. Circular No. 74 was issued, as follows: 

" On and after the first day of February, 1898, the maximum freight rate on 
fertilizers, carload shipments, 20,000 pounds minimum, wall be the present rate 
in effect, less sixteen and tw^o-t birds (16%) per cent, applicable to all roads." 

To this order all the roads filed exceptions, setting out, in short, as follows: 

That the present rates in effect are j ust and reasonable, and are not unrea 
sonably high. 

That the rate as reduced is not a reasonable and just rate to the different rail 
road companies, and is unreasonably low, in that it w^ill fail to yield the differ 
ent railroad companies a reasonable return for the service expected to be ren- 
dered therefor. 

That the reduction of a rate on a commodity such as fertilizer, which consti- 
tules so large a portion of the business of said companies, would result in the 
impairment of the revenue of the railroad companies in North Caiolina to such 



I 



COMPLAINTS AND DECISIONS. iVZ 

an extent as to render it impossible for said companies to earn a fair return 
upon the investment made by their respective stockholders and bondholders in 
the State. That the reduction of the present rate on fertilizers would result in 
an estimated annual reduction of the revenue of the different roads in the State 
to about sijfty-five thousand dollars ; and that it is not just and reasonable to 
so arbitrarily deprive the companies of their property without ordering a com- 
pensatory increase in the rate of some other commodity or connnodities. 

On January 28, 1898, the case was again called for hearing upon exceptions. 
Numerous witnesses were also examined, evidence filed with papers in case. 

Argument of counsel is heard, and after consideration the exceptions of the 
main line of the roads are overruled, and that of the branch and smaller lines 
sustained. 

To the order overruling these exceptions the roads tiled further exceptions, 
and asked for a rehearing of the case. 

The fertilizer manufacturers and other:; also asked for a rehearing. 

On February 17, 1898, a rehearing was granted and case reopened. 

At this hearing the fertilizer manufacturers were also rei^resented. A fall and 
thorough investigation was entered into, witnesses examined, statements of 
comparison of rates with this and other States, etc. ; and it appearing that a 
fertilizer rate on a standard mileage basis would be more satisfactory to both 
shippers and the railroads, and would cause less confusion in promulgating the 
rates, it was ordered that Circular No. 74 be rescinded and 78 be issued, which 
is subsequently amended by 87 to read as follows : 

From and after the first day of May, 1898, the maximum freight rates on fer- 
tilizers on all railroads in this State will be as follows: 

CAR LOAD FIFTEEN TONS MINIMUM. 

PER TON. 

5 nliles and under . / $ .60 

10 miles and over .i .80 

15 miles and over 10 1 . 00 

20 miles and over 15 1.10 

30 miles and over 20 1. 20 

40 miles and over 30 1 . 30 

50 miles and over 40 1 . 40 

60 miles and over 50 1.50 

70 miles and over 60 1 . 60 

80 miles and over 70 . , . 1 . 70 

90 miles and over 80 1. 80 

100 miles and over 90 _ 1. 90 

110 miles and over 100 2.00 

120 miles and over 110 2. 10 

130 miles and over 120 2. 20 

140 miles and over 130 . . . 2, 30 

150 miles and over 140 . 2. 40 

160 miles and over 150 : 2.50 

170 miles and over 160 2. 55 

180 miles and over 170 2.60 

1 90 miles and over 180 2. 65 

200 miles and over 190 '. 2. 70 

210 miles and over 200 2. 75 



104 BOARD OF RAILROAD COMMISSIONERS. 

CAR T/)A]) FIFTEEN TONS MINIMUM — Continued. 

PER TON. 

220 miles and over 210 2. 80 

230 miles and over 220 .... 2. 85 

240 miles and over 280 2. 90 

250 miles and over 240 2. 95 

260 miles and over 250 3. 00 

270 miles a^id over 260 8. 05 

On less than car-load shipments, rates may be made 20 per cent higher than 
above. The joint rates on two or more roads, not under the same management 
or control, shall be made on the basis of the sum of the locals of each road, less 
20 per cent. 

The following- roads are excepted from the provisions of this circular: Che- 
raw and Darlington, Wilmington, New Bern and Norfolk, and the present 
tariff in effect on these roads is continued. Willnington, Columbia and Augusta 
may add 10 per cent. North Carolina Midland, Northwestern North Carolina 
Winston to Wilkesboro, State University, Statesville and Western, Western 
North Carolina, Asheville to Murphy, and Yadkin Railroad will continue pres- 
ent rate in effect. 

The Carolina Central Railroad shall apply the rate now in effect on The Cape 
Fear and Yadkin Valley Railroad. The present rate in effect on The Durham 
and Northern Railroad is continued. Raleigh and Augusta Railroad may add 
15 per cent to Commissioners" standard rate. The present rates in effect on the 
following roads are continued : 

Atlantic and North Carolina, Aberdeen and Rock Fish, Atlantic and Danville, 
Cape Fear and Y'adkin Valley, Carthage, Cashie and Chowan, Carolina and 
Northwestern, Caldwell and Northern, Danville, Mocksville and Southwestern, 
Raleigh and Western, Durham and Charlotte, Atlanta. Knoxville ajnd North 
ern, Hendersonville and Brevard, Northampton and Hertford, Norfolk and 
Southern, Norfolk and Western, Moore County, Ohio River and Charleston, 
Suffolk and Carolina and AVarrenton. 
February 17, 1898. 



J. s. mp:adows 

vs. 
RALEIGH AND GASTON RAILROAD COMPANY. 

DLs-cri/utimtibn in Issn.ing Free Passes. 

Complainant is proprietor of a hotel in Louisburg, and alleges that his com- 
petitor in same business is allowed a free pass over the railroads, which is not 
only a violation of law, but discriminates against him, to his injury, in that his 
competitor, by reason of his free pass, can travel on the train and drum for 
guests. Plaintiff asks that the discrimination be corrected. 

L:pon investigation it ajDpeared that the competitor of plaintiff had sustained 
injury by reason of an accident on defendant's train, and had taken in part pay 
for damages a pass. 

At a session of the Commission, February 21, 1898, the facts appearing as set 
out above, case was dismissed. 
February 21, 1898. 



COMPLAINTS AND DECISIONS. 105 

( . (). VEST 

vs. 

SOUTHERN RAILWAY COMPANY. 

Plaiiitifif aUeges that he suffered loss by the burning of fences, caused by tire 
from locomotive of defendant. 

Copy of complaint was served on defendant Jainiary 27, 1H98, with request for 
answer, or to satisfy complaint. 

At a session of the Comniission February 22, 1898, it appearing that defend- 
ant had paid to plaintiff" the damage claimed and sought no further redress, 
case was closed. 

Februarv 22, 1898. 



W. F. MASSEY TO THE COMMISSION. 

Free Trnnsjjortation. 

Petitioner is connected with The North Carolina Agricultural Experiment 
.Station at Southern Pines, w^hich is prosecuting extensive experiments for the 
benefit of the fruit growers and truckers of the State. Petitioner has general 
charge of this work as the Horticulturist of the Station, and inasmuch as this 
work is for the benefit of the State, requests that the Commission consent to 
the free transportation of himself and others connected with this work by the 
railroad companies. 

The Commission replied to this petition, that they could not grant the 
request, as in their opinion it would be a violation of the law. 
March 12. 1898. 



N. M. LAWRENCE TO THE COMMISSION. 

Free Transportatiou. 

This was a petition from plaintiff, who is Superintendent of Oxford Orphan 
Asylum, desiring that the Commission consent to the railroad companies grant- 
ing petitioner free transportation over their roads w^hile traveling in the inter- 
est of the Orphan Asylum. 

At a session of the Commission March 14, 1898, this matter was called, and the 
Commission was of the opinion that it appeared from the 25th section of the 
Railroad Conunission Act that it would not be a violation of the law for the 
railroad companies to grant free transportation to persons traveling in the in- 
terest of Orphan Asylums. 
March 14, 1898. 



lOH BOARD OF RAILROAD COMMISSIONERS. 

N. (t. YARBOROU(iH 

vs. 

RALEIGH ANT) AUGUSTA RAILROAD COMPANY. 

(Uai'in for Ddntage. 

Plaintiff alleges an unusual delay in the delivery of wagon shipped Iroui 
Clarksville, Va., to Moncure, plaintiff's place of business, and asks that defend- 
ant be required to show delivery and pay damages. 

The matter was in v^estigated by the (Commission and delivery made. 

At a session of the Commission March 14, 1898, it appeared that plaintiff was 
satisfied and desired no further redress. 
March 14, 1898. 



R. M. PERSON 

vs. 

RALEIGH ANJ) GASTON RAILROAD (^OMPANY. 

Delay in DeliDtry of Freight. . ' 

Complaint for delay in forwarding consiginnent oi di-ugs from Kittrells to 
New Bern, and asking the Commission to investigate. 

Copy of complaint was served on defendant, with request for immediate at- 
tention. 

At a session of the Conmiission March 14, 1898, a communication was read 
from defendant, saying that the shij^ment had been delivered to consignee and 
that no further relief was asked. Case closed. 
March 14. 1898. 



BAILEY BROS. 



vs. 
SEABOARD AND ROANOKE RAILROAD (COMPANY. 

Forwarding Freight. 

Complainants, who are manufacturers of tobacco at Winston, N. C, complain 
and allege that defendant refuses to receive and forward shipments of tobacco 
from connecting lines and destined to points on line of defendant's road. 

Complaint was served with request for immediate answer. 

On February 7, 1898, answer was received through H. W. B. Glover, Traffic 
Manager of defendant company, saying that the shipments in question moved 
over the line of Norfolk and Western Railroad out of Winston, and that his 
company refuses to receive same, for the reason that a satisfactory arrangement 
could not be agreed upon in the division of freight with connecting lines. 

To this answer a reply was directed as follows : 

" Y'our attention is called to rule 31 of the rules governing the transportation 
of freight, which reads as follows: 



COMPLAINTS AND DECISIONS. lOT 

" ' No common carrier sliali, tor any cause, subject any article of freight to un- 
reasonable delay in receiving, delivering, or forwarding the same to its destina- 
tion.'^ 

The Commission is of the opinion that you should not refuse to i-eceive and 
forward this freight to destination for the reason set out in your letter. 

At a session of the Commission March 14, 1898, it appearing by letter from 
plaintiff that the relief asked had been granted, and no further action was de- 
manded, case was dismissed. 
March 14. 1898. 



R. L. RAY etal. TO THE COMMISSION. 

Petith)}! for TelegrapTi O.tficf'. 

This was a petition asking the Commission to require defendant company to 
establish a telegraph office at Pine Level. 

Complaint was served February 23, 1898, and answer thereto filed March 14, 
1898, through J. B. Tree, Superintendent, in part as follows: 

'' Pine Level is a station on the line of The North Carolina Raih'oad, about 
three miles east of Selma, and six miles w^est of Princeton, and that the railroad 
people have never deemed it necessary to establish an office there. The year's 
receipts at Princeton, six miles west of Pine Level, but a much larger place, 
do not average a business of but little over four dollars per month. A com 
petent operator would cost forty or flfty dollars per month, and the business at 
Pine Level would be hardly anything.'' 

March 14, 1898, at a session of the Commission, the facts appearing as above 
stated, and in addition thereto it appearing that Pine Level is connected with 
a long distance telephone with Selma, Clayton, Raleigh, and other points, the 
Commission concludes that the business and demands are not such as to justify 
the establishment of a telegraph office by defendant at present. Case was dis- 
missed. 

March 14, 1898. 



CITIZENS OF MOR(iANTON 

v^s. 

WESTERN UNION TELEORAPH (COMPANY. 

This was a petition by the citizens of Morganton, complaining of the great 
inconvenience caused by the present location of the telegraph ctfice at Morgan- 
ton, and asking that the Connnission issue an order requiring an up town office 
to be established. 

Petitioners allege that the present office is located about one-fourth mile from 
the business portion of the city; that if an office was established in a convent 
ent place up town the receipts of the office, in their opinion, would increase at 
least fifty per cent; petitioners propose to furnish a centrally located and suita 
bly equipped office, furnish operator, giving careful and competent attention 



108 BOARD OF RAILROAD COMMISSIONERS. 

for one-fourth of the receipts, the company to allow .§5 per month for messages. 

Served on defendant January 15, 1898, and answer filed on January 22, 1898, 
through J. B. Tres, Superintendent of defendant company, declining; to, grant 
the petition on the grounds that it would be a loss to the company to make the 
change, and alleging that the office was as well located at the depot as if up 
town. 

The case was set for hearing March 15, 1898, when defendant appeared and 
presented witnesses who testified as to the cost of operating the office, the 
amount of business done, the inconvenience the change of location would be to 
certain patrons of the office, etc. Letters were also filed from some of the pa- 
trons of the office, stating that the present location was satisfactory to them. 

The Commission was of the opinion that the petition should not be granted, 
and it was ordered that same be dismissed. 
March 15. 1898. 



CHARLOTTE OIL AND FERTILIZER (^OMPxVNY TO THE 

COMMISSION. 

Ferlf/f.:'^ r Rates. 

The Commissioners issued an ordei- reducing very materially the freight rate 
on fertilizers and making a uniform ]-ate, but raising the minimum car-load 
from 10 tons to 15 tons. Petitioners, who are manufacturers of fertilizers, ask 
that the minimum be reduced to 10 tons per car load. 

The Commission replied to petitioners that the matter had been thoroughly 
considered at a previous meeting, at which a number of fertilizer manufacturers 
were present, and that no objection was raised by them to the 15 ton nunimum, 
but acquiesced in same, and was of the opinion that the petition should be 
denied. 

March 17, 1898. 



(tLASS BROS. 

vs. 

CAEDWELL AND NORTHERN RAILROAD. 

Rate on I/mnber. 

Plaintiff complained of the ratf> on lumber over defendant's road as being 
excessive, that is $5.75 per car load for 10 miles, and $6 for 15 miles, and over ten 
miles. 

Plaintiff was advised that the rates complained of were not excessive, and case 
was dismissed. 

March 25, 1898, 



COMPLAINTS AND DECISIONS. 109 

Rate OIL FireiDood. 

The' Commission on Mareii l(i, IH9S. issued Circular No. s-2. fixing- a rate on 
firewood as follows: 

FRKKiH'l' UATK ()^ FIREWOOD. 

In ear-loads released, loaded and uiiloaded by shipper, 10 cords, iiiiiiiinum 
I to 10 miles, per cord, 40 cents. 

10 to 15 miles, per cord. 45 cents. 

15 to 80 miles, per cord, 50 cents. 

80 to 40 miles, per cord, 55 cents. 

40 to 50 miles, per cord, 60 cents. 

Applicable to all roads. 

To this rate the various roads in the State filed exceptions, setting- out in part : 

First. That the rates in force at the time of the promulgation of said Circular 
]S'o. 82 are not unreasonably high, but, on the contrary, are already lower than 
is reasonable to the carrier. 

Second. That the rates promulgated in .--aid Circular No. 8'2 are not just and 
reasonable, and are unrea.sonabiy low, in that they ^vill fail to yield the railroad 
companies a reasonable return for the service expected to be rendered therefor. 

Third. For that there is no general demand among shippers of firewood in 
the State of ]S'orth Carolina for a reduction of the rates in force at the time of 
the -promulgation of said Circular No. 82; but that, on the contrary, the ship- 
ment of firewood at such rates continues to be and has been generally and with 
out restraint ever since the said rates in foi-ce at the time of the promulgation 
of said Circular No. 82 were made eft'ective. 

Fourth. That the rates promulgated by the Commission by a previous order, 
and now in effect, are unwarranted and unreascnably low, and lower than the 
rates eftective in adjacent States, as comparative tables, which are filed, show. 

At a session of the Connnission, March 29, after a very careful investigation 
and consideration; it was adjudged that the present rate in efi'ect on firewood 
is sufliciently lovv, and that the exceptions of defendants be sustained. Circu- 
lar No. 82 is rescinded. 

March 29, 1898. 



THE WAXHAW J)RU(i (JOMPANY 

vs. 

(iEOR(TJA CAROLINA AND NORTHERN RAILWAY COAiPANY. 

Losi Freight. 

Plaintiff" claimed damage to the amount of -'^5. 68 for lo.^s of one can of oil 
shipp,ed from Richmond, Va., and billed to Waxhaw. N. C. and of v.ln'ch de 
fendant and connecting lines fail to show delivery. 

Complaint was served on defendant, with request to make settlement. 

At a session of the Connnission held March 29, 1!^98, it appeai-ing that the 
damage claimed had been paid to plaintiff, case is dismissed. 
:\Iarch 29. 1898. 



110 BOARD OF RAILROAD COMMISSIONERS. 

SHARP & (X). 

vs. 

WILMINCtTOIs A^'l) WELDON RAILROAD COMPANY. 

This was a t'<)jii[)laiiit for overcharjje on shipiiieiit of marble from Roxboro to 
l)unn. 

Coniplaint was tiled aiul served March 14, 1898. and answer thereto tiled 
March 28. 1898, through H. M. Emerson. General Freight Agent of defendant 
company, saying that the overcharge had been refunded. 

At a session of the Commission March 29, 1898, it appearing that the over- 
charge had been refunded, and no further redress asked by plaintiff, case was 
closed. 

March 29. lsi>s. 



E. A. JOHNSON. J(^HN (\ DANCY, R. H. AV LEAK et al. 

vs. 
SEABOARD AIR LINE AND SOUTHERN RAILWAY. 

JHacritn i nnfioii i n, Matf^^r of >^/(/h'(>)/ Acconi ffiodttl ion for Wliile oiid Colored, 
People. 

('omi)lainants. who are citizens of the city of Raleigh, tiled com])]aint before 
the Commissicm, as follows: 

First. That the aforesaid railroad comx^anies (cor}>(!rations operating in North 
Carolina) own jointly a de})ot at Raleigh, N. C, in which there is a waiting- 
room set apart and designated es}jecialiy for colored passengers, and that said 
waiting-room is not etiual in its appointments and accommodations to that set 
apart and designated for white passengers; that it is very inferior and the most 
poorly equipped room at the depot, being dark and ill -ventilated. 

Second. That some of the inequalities complained of consist in the fact that 
there are seats enough in the said waiting-room for only twelve persons. That 
one row of those seats face the watej -closets and located within but a few feet 
of said water-closets; and when the doors of said water-closets are o})ened by 
people going in and out the urinals and stools in said closets are plainly exi)osed 
to all persons in the room who are facing west, there being no sci-een or parti- 
tion whatever; and that in warm weather the odor of the closets enters into the 
waiting-room; that one of the said closets is marked " for men," and that it is 
used by railroad hands and the public arovuni the depot " ad libitum. " That 
convicts and insane people are allowed in said room; and that the seats are so 
arranged that when such people are in there, lady passengers must sit next to 
theui or immediately back of them. 

Third. That the colored lady passengers are not allowed to go intt) the gen- 
eral ladies' waiting-room, ^ind that on several occasions insulting, harsh and 
rude language has been used to ladies who refused to go into said * colored 
waiting-room"; and that a number of colored ladies (passengers) hi ve been 



COMPLAINTS AND J)H:CIS1(>NS. Ill 

compelled to stand out in the cold winter weather or accept those worse than 
second class acconiniodations, after purchasing first-class tickets; that the de 
pot officials have on several occasions 'ordered ^colored lady jpassenj>-ers out of 
the first class waiting-room in an insulting manner; and when they refused to 
go a policeman was called in to arrest them. 

Fourth. That the accommodations of said waiting room ai'e no better than 
second class accommodations on the railroad cars; and that colored i)assengers 
who buy first-class tickers are refused first-class 'depot accommodations; and 
that by both the aforesaid railroads, colored and white first class passengers are 
given the same accommodations on the cars, but denied equal acconnnoda- 
tions at i he said depoi . 

Fifth. That your j^etilioners ask for e(pial acconniiodations at the ubove- 
named station. 

This complaint was served on defeiidaiits, who answered as folk)ws: 

The Soul hern Railway, answering the complaint, says: 

I. That it admits the allegations of paragraph 1. 

II. That the allegai ions of paragraph 2 are somewhat highly colored ; but it 
admits that the accommodations in the colored waiting-room are not satis- 
factory. 

III. It denies, upon information and belief, any harsh action or rude language 
on the part of the employees at the station; i1 admits thai the regulations in 
force for the exclusion of colored passengers from the waiting-room set apart for 
white passengers have been enforced, but without hfushness or rudeness. 

And for further answer, this defendant saith: 

IV. That the separation of the races in the waiting rooms at the depot is in 
ac(*ordance with the general public sentiment prevailing in the South; this 
separation entails considerable trouble and expense upon the transportation 
department, requiring the furnishing of double accommodation, and it is diffl 
cult to arrange such waiting-rooms so that all intending purchasers may have 
equal access to the ticket office. 

V. That this defendant has been at all times and still is ready to make such 
changes in the waiting-room at Raleigh as shall remove all reasonable ground 
of complaint, and which shall be acquiesced in by the officials of The Seaboard 
Air Line, who are tenants in common with this defendant in the ownership and 
management of the said station at Raleigh; that the correspondence, copies of 
which are hereto attached, shows the action and disposition of this defendant, 
and shows why the negotiations concerning the alterations were not brought to 
an issue. Tin's correspondence is prayed to be taken as a part of this answer. 

Wlierefore, this defendant declares its willinges-< to carry into effect any rea- 
sonable and proper regulation made by the Railway Commissioners in regard 
to the acconnnodations for the use of the respective races at the de})ot in Raleigh. 

The answer of the Seaboard Air Line is as follows : 

These respondents have read the answej- filed by then- co-respondent, The 
Southern Railway Company, and adopt the same as their own. Admitting that 
the present arrangements are not entirely satisfactory to the colored people, they 
aver that the same are at present reasonable and good; and the acconnnoda- 
tions for the colored people are not so large, because they constitute about half 
or less than half in number than the white passengers who are in the habit of 
using said station. 

This respondent is entirely willing to take the matter up with its co-respon 
dent, and with it make any reasonable and just changes in said arrangements. 



112 BOARD OF RAILROAD COMMISSIONERS. 

This matter way called for hearing, and the respondents expressing a willing- 
ness to make satisfactory changes, it was agreed that defendants would meet a 
committee of the colored people at the Union Depot and endeavor to come to a 
satisfactory agreement as tc the changes that should be made. 

This matter was continued from time to time for the coiinnittees to make 
their report ; and when made it was found that no satisfactory agreement could 
be reached, the defendants submitting a plan of changes and comx:>lainants 
counter-plans. 

At a sessic n of the (Commission March 29, 1898, this case was called; and it 
appearing that no plan could be agreed upon, the Commissioners, after a care- 
ful consideratic n of the plans submitted, conclude that the one submitted by 
defendants, which is filed in this office, should be satisfactory to the petitioners, 
and it was ordered that the changes be made accordingly. 
.March 29, 1898. 



STAT?^ OF NORTH CAROLINA ON THE RELATION OF THE RAIL- 
ROAD COMMISSIONERS. 

This was an action on the part of the Railroad Commissionei's, taking into 
consideration the question of a reduciion of the passenger rates. 

At a session of the Commission on January 15, 1898, it was ordered that notice 
be served on The Atlantic Coast Line System, Southern Railway and Seaboard 
Air Line Systems of roads to show cause, if any, before the Raih'oad Connnit;- 
sioners, at its office in Raleigh. N. C. on the 25th day of January, 1898, why the 
fares for the transportation of i)assengers ()^'e]• cert.ain portions of their roads 
should not be reduced. 

On January 25, 1898, this matter was called, when the representatives of the 
different roads were present and heard at considerable length, and an examina- 
tion of witnesses. 

The case was continued to February 21, when an ordei- was issued in these 
words: 

Circular No. 80. 

From and after the 2;>d day of March, 1898, the fares foi- the transportation of 
passengers shall be as follows : 

Two and one-half cents per mile for first class tickets; two cents per mile for 
second-class tickets on the fohowing railroads in North Carolina, to wit: 

The Wilmington and Weldon Railroad from Wilmington to Weldon, and 
that part of The Wilmington and Weldon road from Ctmtentnea to the South 
Carolina State line; The Petersburg road from Weldon to the Virginia State 
line ; that part of the Taiboro branch from Rocky Mount to Tarboro, and The 
Norfolk and Carolina Railroad from Tarboro to the Virginia State line; The 
Raleigh and (xaston Railroad from Weldon to Raleigh; The Seaboard and Roa 
noke Railroad from Weldon to the Virginia State line, and The Raleigh and 
Augusta Air Line from Raleigh to Cribson The North Carolina Railroad from 



COMPLAINTS AND DECISIONS. 118 

Goldsboro to Charlotte; The Pieduiout Railroad from (ireensboro to the Vh*- 
g'inia State hoe; that part of The Northwestern North (Jarohna Railroad from 
Crreensboro to Winston ; The Western North Carolina Railroad from Salisbury 
to Paint Rock ; The Atlantic, Tennessee and Ohio Raih'oad from Charlotte to 
Statesville; The Atlanta and Charlotte Air Line Railroad from Charlotte to 
the South (Carolina State line, and The Charlotte, Columbia and Augusta Rail- 
road from Charlotte to the South Carolina State line. 

To this order e^(*eptions were filed, heard and ov^erruled, but on further con- 
sideration were sustained and Circular No. 80 rescinded. 

iMarch 29, 1898. 



JOHN TULL 
vs. 
PULLMAN'S PALA(^K (/AR (H)MPAN\. 

Coitipldi lit (if Pull man ^ierriee. 

Plaintiff alleged ]iegligence on the part of defendant for failure to open its 
outer car doors on arriving at stations and furnishing steps at places where 
necessary for the convenience of entering same. 

Complaint was read at a session of the (commission March 80, 189.8, and the 
following order was issued : 

" The following is adopted by the Railroad Commission, to take effect at once, 
and to 'ne added to the rules governing the transportation of passengers already 
by the Commission. 

Rile 18. 

•' It shall be the duty of The Pidlman Car (Jompany, at all stations, on the 
stopping of trains, to have the doors of their cars open for the reception of pas- 
sengers and recjuire the porter to keep a step ready for the convenience of pas- 
sengers desirhig to enter. '' 
March 80, 1898. 



BEAUFORT LirTJ.E NECK CLAM COMPANY 

vs. 

ATLANTIC AND NORTH CAROLINA RAILROAD COMPANY. 

l.o.st Fn'Kjhi. 

Plaintiff* alleged a shipment of camied oysters from Beaufort to Durham, 
which defendant had failed to deliver, and demands that an order be issued 
requiring that claim be paid. 

Copy of complaint was served on defendant, with request to satisfy plaintiff'. 
At a session of the Conmiission April 20, 1898, it appeared that satisfactory 
adjustment had been made with complainant, and case was dismissed. 
April 20, 1898. 
' 1 S 



114 BOARD OF RAILROAD COMMISSIONERS. 



vs. 
SOUTHERN RAILWAY AND WILMINGTON AND WRLDON RAIL- 
ROAD COMPANY. 

Traiu (U>)i nectioii. 

This was an action on the part of the Couiuiission reciuiring- a coiniection at 
iSehna between No. 15 Southern Railway train, leaving- Selma at 2.35 p. ni., 
and Wilmington and Weldon train No. 28, leaving Sehna at 3.15 p. ni. 

Defendants answered that the connection had been made by the quickening 
of train No. 15 of Southern Railway 28 minutes, and the holding back of train 
No. 23 the same number of minutes. 

At a session of the Commission April 28, 1898, it appearing that a satisfactory 
connecti(m had been made, the matter was closed. 
April 20. 1898. 



FORKNP]R, REDMAN & (M). 

vs. 

OAPE FEAR AND YADKIN VALLEY RAILROxVl) COMPANY. 

Lost Frekihf. 

This was a complaint for damage, on the grounds that defendant had receipted 
for and contracted to transport a lot of tobacco from Pilot Mountain to differ- 
ent points in Georgia, and after a reasonable time had failed to show delivery. 

This complaint w^as served February 3 1898 ; and on February 5, 1898, answer 
Avas received through W. E. Kyle, General Freight Agent of defendant com- 
pany, saying that the claim would be promptly adjusted. 

At a session of the Commission April 20, 1898, this case was called, and it 
appearing that the claim of plaintiff had been satisfactorily adjusted, and no 
further relief was sought, wa;- dismissed. 
April 20, 1898. 



R. L. STROWD 

vs. 

SOUTH ERN RAILWxVY. 

Overch((rge. 

Complaint for overcharge on shiimient of cow from C'hapeJ Hill to Coffeeville. 
Miss. 

Served on defendant December 29, 1897. 

At a session of the Commission, April 20, 1898, it appearing that defendant 
had refunded the overcharge, case was closed. 
April 20, 1898. 



COMPLA.INTS AND DECISIONS. 115 



JAMES A. SALINDKRS 

VH. 

SOUTHERN RAILWAY. 

Ddiiiacje. 

Plaintiff alleged an unusual delay in the transportation of car load of fei-tili- 
zers from Wilmington to Selma, and that he sustained a loss of eight dollars. 

Complaint was served on defendant March 24, 1898, and on April 1, 1898, an- 
swer was filed, saying that the amount of damages claimed would be paid. 

Xi a session of the Commission April 1, 1898, it appearing that the plaintiff' 
had received from defendant amount of claim, and that no further I'elief was 
asked; case was closed. 
April 22, 1898. 



GARNER, McNEAL k CO. 

vs. 

SEABOARD AND ROANOKE RAILROAD COMPANY. 

Overcharge. 

Complaint for overcharge on shi[)ment of furniture from Raleigh to (rarvs 
burg. 

Freight Claim Agent of defendant company, on receipt of copy of complaint, 
answered that the matter would be taken up with plaintiff for adjustment. 
Plaintiff was advised that if overcharge was not refunded promptly, to furnish 
Ihe Connnission with freight receipt and bill lading and the matter would have 
attention. 

At a session of the Commission April 22, 1898, no furthei- communication 
having been received from plaintiff, case was closed. 
April 22, 1898. 



STANDARD (IROCERY COMPANY OF LOUISBUR(f 

vs. 
L(^LISBLRG RAILROAD. 

(j >i(tr(Uilee(l Rates of Bill of JAiding. 

Plaintiff alleged inconvenience and annoyance by the failure on the i)art of 
defendant to deliver freight at the rate of freight as guaranteed on bill of lad- 
ing, and asks for a ruling in matters of this kind. 

Plaintiff' was advised that the railroad company should deliver shipments of 
freight at the rate mentioned in bill of lading unless it can be shown that the 
]-ate is an error or initial carrier had no authority to bind connecting carriers. 



IIH BOARD OF KAILROAD COMMISSIONERS. 

On all shipments ori^'inatiiig' and terniinating in this State, the order of the 
Commission is as follows: 

"That all railroad companies in this State shall, on demand, issue duplicate 
freight receipts to shippers, in which shall be stated the class or classes of 
freight shipped, the freight charges over the road, giving the receipt, and so 
far as practicable shall state the freight charges over the roads that carry such 
freight. When the consignee presents the railroad receipt to the agent of the 
railroad that delivered such freight, si^ch agent shall deliver the articles 
shipped, upon payment of the rate charged for the class of freights mentioned 
in the receipts.' 

Copy of Circular No. 77, which provides that railroad companies shall settle 
within thirty days all claims for loss, damage or overcharge, was also mailed 
plaintiff. 

April 26, 1898. 



(iLASS & WALKER 

vs. 

SOUTHERN RAILWAY. 

Oreiclui i(/e. 

This was a claim for overcharge of §22.06 on car-load of machinery frt)m Co 
lumbus, Ohio, to Randleman, plaintiff's place of business. 

Thirty nine cents per one hundred pounds was inserted in bill lading as being 
the through rate to Randleman, and amount of freight bill was $112 54. 

Upon investigation it appeared that the shipment of machinery originated 
beyond Columbus, and that the charge of $22.06 was in addition to the 
advanced charges paid on the machinery, and the rate of 39 cents was only from 
Columbus, Ohio, to Randleman. 

It appeai-ing that there was no overcharge, case was dismissed. 
Mav 16. 1898. 



SOUTHERN EXPRESS COMPANY. 



Hate (til FisJi. 



On Febiuary 24, 1898, the Conniii!-sion, having under consideiation the 
matter of a revision of rates on fish from eastern points to all North Carolina 
points, addressed a communication to W. J. Croswell, Superintendent of The 
Southern P>:press Company, requesting him to be present at a session of the 
Commission, to be held at Raleigh on March 15, 1898, and show cause, if any 
he had, why the schedide of freight charges on fish should not be lowered. 

At a ;-essi()ii of the ('ommission April 20, 1898, this case was called, when W. 
J. Crosvsell, Superintendent, appeared for defendant, and several shippers of fish 
from Moi-eliead City, New Bern and Beaufort were examined touching the 
iiiatter. Superintendent I>ill, of Atlantic and North Carolina Railroad, was 
also present. 



COMPLAINTS AND DECISIONS. IIT 

Superintendent CroswelJ stated that his company was unable to make any 
lower rate than the rate in effect, on account of its contract with The Atlantic 
and North Carolina Railroad ; but that if he could get such a contract from 
The Atlantic and North Carolina Railroad as his company had with other 
i-oads of the State, a lower rate could be p;ranted ; and asks that the matter be 
continued, that a conference might be had with The Atlantic and North Caro- 
lina people with a vieAv of effecting- an agi-eement by which the rates would be 
i-educed. 

(Continued until May 10, when the case was called, and no report having been 
received from the Superintendent of Southern Express Ccmipany as to confer 
ence with Atlantic and North Carolina Railroad, it was ordered that a rate be 
made on fish as f(>ll()w\s: 

CiRCTLAR No. y8. 

From and after June 8. 1898, rates on fish by The Southern Express Company 
from j\I()i-ehead City and New Bern to offices in North Carolina shall be as fel- 
lows: 

Group 1, 5,-} cents : Group 2, 85; (houp 8, $1.05; (xroui) 4, $1.25; Group 5, $1.40; 
(xroup 6 $1.55; (liroup 7, $1.75; Group 8, $1.95. 

Boxes, dimensions, offices and group, as appear in i-ate sheet No. 408 ot 
Southern Ex])resy Company, bearing date February 1, 1897. 

To this order The Southern Express Company, through its Traffic Man^iger, 
pi'otests against the enforcement of Circular No. 88, saying: 

■■ Some time since we understood that the desire of the Commission was to 
secure the cooperation of the Express Company in reducing some of the rates on 
inter-state business. Of course to do this we have to secure the concurrence of 
our c(mnecting comp^anies. 

. It is no doubt well understood that in the State of North Carolina, as well as 
elsewhere, we have contracts with the roads over which we have facilities, and 
these contracts alone are the basis of the facilities which we obtain from the 
railroads, and also the basis of our compensation to the railroads. 

The fish business from Newbern and Morehead City must start by express 
over the Atlantic and Ncn-th Carolina Railroad -a road controlled by the State 
of North Carolina. 

On that road we i)ay specifically on each box, and we charge specifically ac- 
cording to the weight, bulk, etc. 

It is a matter of fact that our gross recei[)ts on the Atlantic and North Caro- 
lina Railroad have not paid our gross expenses on that line of road. 

(.)ur comijany has a very strong desire to develop the fish traffic. We have 
taken great interest in the promulgation of information which would be to the 
interest of the shipj)ers, and we have always been desirous of working in accord 
with the shippers, and doing justice to all interests. 

1 do not know who has complained of our rates, nor what the grounds of 
complaint may be. 1 do not know who it is that wants a reduction in the 
rates, nor for whom this reduction is made. 

The North Carolina Commission, like other State Railroad Conunissions, has 
decided that railroad companies may charge one and one half times their first- 
class freight rates for all matter carried on passenger trains. Fish is rated as 
first-class. Therefore the express rates should represent one and one-half first- 
elass freight rates for transportaticm on the railroad, besides a price for the ex- 
press service over and above that performed on the trains. 



118 BOARD OF RAILROAD COMMISSIONERS. 

It eost.s the Express Company cibout f( rty-five per cent of its gross earnings fcr 
its expenses entirely independent ( f its railrcad transportation charges. 

We do not wish anything done to vitiate our contracts with raih-oads. You 
understand the reductions already made, by the former Board. Where the 
rate was !$2.00. it was cut to $1.80; where it was 1^1 50, it was cut to $1.35. 

To-day our rates to Durham are only one and one-half times the freight train 
rates. To Fayetteville, N. C, it is the same. 

But to Franklinton. for illustration, we find that the act of the former Board 
made the rates less than one and one-half times the freight train rate. 

The rates to the following are as low as they could be made on any reason 
able or equitable hypothesis, viz: Halifax, Henderson, (irreensboro, Laurinburg, 
Littleton. Maxton, Monroe, Mt. Airy, Raleigh, Rocky Mount, Salem, Tarboro, 
Weldon, Wilmington, Wilson. 

There has been an expression of desire for lower rates on inter-state business, 
and it has been our hope to do something in behalf of the shippers on this part 
of the business, but we would not feel that we had any latitude to do so with 
any reductions on the intrastate business. 

Any reduction, however, in rates from Morehead (Jity and Newbern by ex 
press should involve a reduction by the railroad company to the express com 
pany, for thus the State of North Carolina speaks as to ^vhat we should charge 
and what we should i^ay. 

I would cite, for illustration, a box of 100 pounds of fish from Morehead City 
to Asheville, N. C. We pay the railroads $1.15. The difference between that 
and what we earn, $2.00, is 85 cents now; and 85 cents out of $2.00 does not pay 
its average of our expenses outside of transportation. 

This rate of $2.00 is a reduced rate. The Commissioners reduced our former 
rate 10 per cent. They thus cut off our margin. I merely mention this for 
illustration. 

I do not know whether it is the fish shippers or the consumers who com- 
plain of the rates, but I apprehend that on a proper showing it will readily be 
seen that the carrier has not received an excessive rate in any case, and in some 
cases the rates are too low, as the rule of the Commission really took off all of 
our margin in many cases. 

Our rate to Goldsboro is 70 cents; then when we charge $1.85 to Durham, it 
means TO cents to Goldsboro and 65 cents from Goldsboro to Durham. When 
we charge $1.35 to Fayetteville, it means 70 cents to Goldsboro, and 65 cents 
from Goldsboro to Fayetteville. To Raleigh the through rate includes 45 cents 
from Goldsboro to Raleigh. Also 45 cents from Goldsboro to Rocky Mount," 
etc., etc. 

The Commission, after further consideration and investigation, finding that 
the fish dealers are interested in a lower rate to points outside of the State, as 
well as to points within the State, modifies its former order and adopts rates as 
follows for North Carolina points, with the understanding that the rates here 
inafter mentioned to Northern points shall be put in effect. Rates as per cir 
culars Nos. 90 and 91. 



COMPLAINTS AND DECISIONS. llt^ 



W. C COLEMAN TO THP] COMMISSION. 

Free Tnt nsporUtiioi) . 

Plaintiff, v.'ho is Secretary and Treasurer of the Coleman Manufacturing- ( Joni 
p any at Concord, N. C, asks that the Conunission consent that the Seaboard 
Air Line may issue to him a free pass over their line of roads for the purpose 
of visiting the stockholders of the company, who are scattered over the State. 

This mill is being- built for the colored people, and many private subscrip 
tions have been given for the object. 

At a session of the Commission May 16th, a communication was addressed to 
plaintiff that a recent order of the (Jommission declared the issuance of free 
passes unlawful, and in this case no exception could be made. 
Mav 16, 1898. 



NOELL BROS, 
v.s. 
NORFOLK AND WP^STKRN RAILROAD CO. 

Losi Freiijht. 

Plaintiff filed complaint for damage, alleging a consignment of pants for 
which a bill of lading is held, agreeing to transport to Randleman in good order, 
and that defendant has failed to deliver or to pay the loss sustained. 

Complaint was served on defendant April 25, 1898, with enclosin^e of (Circular 
No. 77, which reads as follows : 

'' Whenever any goods, or articles of freight of any kind, shall be received by 
any common carrier in this State, to be delivered to any consignee in this 
State, and a portion of same shall not have been received at the place of desti- 
nation, the carrier shall not demand any part of the charges for freight or trans- 
portation due for such portion of the shipment as shall not have reached the 
place of destination. And in case of loss, damage or overcharge of such freight, 
if the consignee present his bill of lading and the original invoice to t^he agent 
of the company at place of destination of such goods, within thirty days after 
notice of the loss, damage or overcharge, and. said company fails oi* neglects to 
deliver to the consignee the goods lost or damaged, in good order, or refund any 
overcharge, for thirty days after such notice, then such company shall be liable 
for the value of such goods lost or damaged or overcharged. The carrier shall 
be required to deliver to the consignee such portion of the consignment as shall 
have been received, upon the payment or tender of freight charges due upon 
such portion, as provided in chapter 495, Laws 1893." 

On May 16. 1898, the defendant answered that a voucher had been made in 
favor of complainant for amount of damage claimed. 

At a session of the Commission June 8, 1898, it api)earing that ijlaintiff was 
satisfied, case was closed. 
June 8, 1898. 



120 BOARD OF RAILROAD COMMISSIONERS. 



W. B. AUSTIN 
vs. 
WILMINGTON AND WELBON RAILROAD COMPANY. 

Lost Freight. 

Complaint of damage for lost freight. 

Complaint served on defendant with copy No. 77 of rule of (.'onmiissioners 
relative to settlement of claims for lost freight. 

At a session of the Commission Jane 8, 1898, it appearing that the relief de- 
manded had been granted by the defendant, and that no fui'ther investigation 
was required, the case was closed. 
June 8, 1898. 



ROBINSON AND COMPANY 

vs. 

WESTERN UNION TELKORAPH COMPANY. 

Orerclxiriie. 

Complainants filed complaint April 29, 1898, alleging as follows: 

1. That the Western Union Telegraph Company has established at P]lizabetli 
City, along the Norfolk and Southern Railroad, a telegraph line. 

2 That Gruirkin & Company has a telegraph line running from Norfolk to 
this place as the Elizabeth City and Norfolk Telegraph Company. 

8. That there is. a contract, as the complainants are informed and believe, be- 
tween the said Western Union Telegraph Company and the said Elizabeth 
City and Norfolk Telegraph Company, which is operated by Guirkin & Com • 
pany, by which the said Elizabeth City and Norfolk Telegraph Company rep- 
resents the said Western Union Telegraph Company and has connection with 
the same for sending of messages over its line. That the said Western Union 
Telegraph Company has a line running to Belle Haven, N. C, which is a con- 
tinuous line between Elizabeth City, N. C, and Belle Haven, N. C, as they are 
informed and believe. 

4. That the complainant, on the 26tli day of April, 1898, delivered a ten- 
word message to the said Elizabeth City and Norfolk Telegraph Company to 
be sent over the lines of the Western Union Telegraph Company to Belle Ha- 
ven. N. C., and the said Company required the complainants to pay fifty cent^ 
(50) for the transmission of the message, which is a violation of the rights pre- 
scribed by the Railroad Commission of North Carolina, a copy of which tele- 
gram is marked Exhibit "A" and made a part of this complaint. 

5. That the said Western Union Telegraph Company at this place refuses to 
take a message over its line except through the Elizabeth City and Norfolk 
Telegraph Company. 

That the said Western Union Telegraph Company has an office at Elizabeth 
City, N. C., which it claims to be operated by the Norfolk and Southern Rail- 



COMPLAINTS AND DECISIONS. L^Jl 

road Company, and by reason of the contract between itself and the said Eliza 
beth City and Norfolk Teleg^raph Company, it declines to receive the messages 
at that office and requires messages to be sent through the Elizabeth City and 
Norfolk Telegraph Company. That the Elizabeth City and Norfolk Telegra])h 
Company, as these complainants are informed and believe, are the agents under 
their contract ior the Western Union Telegraph Company to send its messages, 
and that the charge of 50 cents is contrary to law, and unjust to these com- 
plainants. 

Wherefore, complainants ask the honorable members of the Railroad Com 
Hussion of North Carolina to require the said Company to comply with the 
rates fixed by the said Railroad Commission, as set out by the rulings of the 
said Railroad Commission and confirmed by the yu[)reme Court of North Caro- 
lina in the case of Leavell versus Western Union Telegraph Company, in the 
116th North Carolina Reports, page 211. 

Answering this complaint, defendant alleged that it had no throuah line to 
Belle Haven, but that messages from Elizabeth City to this point had to be 
transmitted via Norfolk, Va., and connecting at Plymouth with a line to Belle 
Haven, which is owned and controlled by another company, and that there is 
no wire from Edenton to Belle Haven, between which Albemarle Sound, nine 
miles, intervenes. 

At a session of the Commission June 8, 1898, it appearing that defendant had 
no through line of its own from Elizabeth City to Belle Haven, the rate of 25 
cents for a message does not apply, but that the joint rate should apply — that 
is, 40 cents for a joint message of ten words— and it was adjudged and so or 
dered that defendant refund to plaintff 10 cents, the amount of overcharge. 
Case closed. 

June 8, 1898. 



KINCAM) BROS. 

vs. 

SOUTHERN RAILAV^AY. 



Bate on Lii mber 



Plantiffs ahege discrimination in freight rates on lumber from Plotts, N. C, 
to Danville, Va., in favor of Cleveland and (»ther i)oints, and asks that it be 
corrected. 

Defendant answering the complaint, files a rate of 9 1-2 cents per 100 pounds, 
carload lumber, 24,000 pounds minimum, from Plotts, N. C, to Danville, thus 
correcting the discrimination and, being satisfactory to complainant, case is 
closed. 

June 28, 1898. 



\'2'2 BOARD OF RAILROAD COMMISSIONERS. 



RAMSEY AND LANCE 

vs. 
SOUTHERN RAILWAY. 

Overcharge. 

Complainaiits allege a freight charge of 50 cents on a package shipment 
weighing 20 pounds, shipped from Knoxville, Tenn., to Marshall, N. C. plain- 
tiff's place of business. 

Defendant was notified that the shipment was overcharged 25 cents, and 
should be refunded. 

At a session of the Commission June 28. 1898, it appearing that the over 
charge had been refunded, and no further action was asked, the matter was 
closed. 

June 28, 1898. 



SOUTHERN EXPRESS COMPANY TO THE COMMISSION. 

Petit ion for Reoisioii of Rates. 

Petitioner, through its Traffic Manager, Chas. L. Loop, filed petition on July 
12, 1898, asking th^t the Connnission consent to a revision of its express rates 
over the railroad lines in North Carolina, on the following grounds: 

"Some of the merchandise express rates now in use in North Carolina are less 
than one and a half the railroad freight rate. Inasmuch as it is provided that 
the railroads themselves may charge on ])assenger trains one and a half times 
the charge on freight trains, etc., I ask your approval to revise our rates in such 
few cases as may be necessary. 

Petitioner files a statement of comparison of the freight rates over the lines 
of all the railroads with that of the express rates 

At a session of the Commission July 12, 1898. this petition was read and con 
sidered, and it was the opinion of the Commission that the relief sought ought 
not to be granted, and it was ordered that the petition be dismissed. 

July 12, 1898. 



FREE PASSES. 

The Connnission, in regular session, passed the following order: 

Order No. 95. 

Whereas, the Supreme Court of North Carolina has declared the issuing of 
free passes to certain persons illegal; and whereas this Commission is charged 
in part with the enforcement of the law ; 



COMPLAINTS AND DECISIONS. \'2y> 

Therefore, it iy ordered that each of the raih-oad, steamboat, telegraph and 
telephone companies doing- business in this State shall furnish to the said Com- 
mission, on or before August 15, 1898, a sworn list of the names of all persons (ji- 
firms who now hold free passes or franks, as attorneys, agents or adjusters of 
claims against said companies, respectively. 

In compliance with this order, all the railroad companies called upon filed in 
the oflfice of the Commissioners lists of free passes issued. 
Julv 18, 1898. 



CITIZENS OF LEX]N(iTON 
vs. 
SOUTHERN EXPRESS COMPANY. 

Petition for Uptoirn Exj)res.s Office. 

This was a petition from the citizens of Lexington asking that the Commis- 
sion issue an order requiring the Southern Exj)ress office to remove from the 
depot, the present location, to some suitable and more convenient })lace in the 
business part of the town. 

Petitioners allege that the distance from the business part of the town to the 
said depot is about one-quarter of a mile. That the street leading to said de]X)t 
is very muddy at times, and very inconvenient to the people. That the accom 
modations at said depot are not satisfactory. 

Copy of complaint was served on defendant, with request to grant the peti- 
tion or to answer. 

Answer was filed through O. M. Foster, Superintendent of defendant com 
pany. Defendant desired a day set for hearing, and that he was of the oi)inion 
that lie would be able to produce such facts and surroundings as would con- 
vince the Board that the present location was more suitable than any contem- 
plated location, both as to the convenience for the public and the company. 

At a session of the Commission, July 29, 1898, this case was called for hearing, 
when defendant was represented by the Superintendent of defendant company. 

A counter petition was also read from the citizens of Lexington objecting to 
the removal of the express office as petitioned for, on the ground that the pres- 
ent location would accommodate m{>re people. 

After a careful investigation, and considering all the facts presented in this 
case, the Commission was of the opinion that the petition of petitioners ought 
to be granted, and it was so adjudged and ordered that defendants remove the 
express oflfice and locate the office at some convenient point uptown. 
Julv 29, 1898. 



1:^4: BOARD OF RAILROAD COMMISSIONERS. 



CITIZENS OF MOUNT AIRY 

vs. 

WESTt]RN UNION TELKURAPH COMPANY. 

Piiitioii for Vpt^nrii Tehiintpli Office. 

Petitioners, on June 10, 1898, filed complaint and petition, and asked that 
defendant be required to extend its line and establish an office at a convenient 
point in the business portion of the town. 

Petitioners allege that the present location of the t)f?ice is situated from one- 
half to three ^^^ourths of a mile from the business portion of the town, at the ex- 
treme western limit of the corporation. 

"' That on account of the distance from the manufacturing establishments, 
business concei-ns and hotels, telegrams are necessarily delayed in delivery both 
to and from the said cffice, to the inconvenience and hurt of our people and the 
public generally.'" 

Complaint was served June 18. 1898, and answer thereto filed throiigii R. C. 
(Strong, attorney, denying all the allegations of the i)etitioners, and further an 
swering says: 

1. The distance between, the telegraph office a;-; at present located and the 
business portion of the town is not as gj-eat as stated in the first i)aragraph of 
said petition. 

2. That the second paragraph of the petition is not true. 
8. That the third paragraph of the petiti(m is not true. 

4. That to operate the office as requested by the petition would cause the said 
conjpany to oi>erate at a loss, which the Commission has no right or power to 
do. in that it would be a violaticm of the Constituti(m of North Carolina and 
of the United States: 

(1) That it would be in violation of the provisions of the Fifth Amendment to 
the Constitution of the United States by taking the proi)erty of said company 
for public use without just compensation. 

(2) That if would be in violation of the provisions of sec. 1 of the Four 
teenth Amendment to the Constitution of the United States in depriving said 
comi)any f)f its pioperty without due process of law and without just compensa 
tion, and would deny said company the equal protection of the laws. 

(B) That it would be in violation of the provisions of sec. 8 of Article 1 of 
the Constitution of the United States. 

(4) That it would be in violation of the provisions of the Act of Congress of 
the United States, passed July 24, 1866, entitled "An act to aid in the construc- 
tion of telegraph lines and to secure to the Government the use of the same for 
l)ostal. military and other purposes." being sees. 5263 and 5268, inclusive, of the 
Revised Statutes of the United States. 

(5) That it w(nild be in violation of the i:>rovisions of the Constitution of the 
United States. 

(6) That it would be in violation of the Constitution of North Carolina in this, 
that it would deprive the said company of its property without due process of 
law, and would deprive it of the equal protection of the laws. 

(7) That already having an office in the town of Mount Airy, the Commission 
are without authority to cause the same to be changed. 



COMPLAINTS AND DKCISIONS. I'l:) 

Wherefore, the .said The Western Union Telegraph C()iii])aiiy prays the J^on 
orable Board of Railroad Commissioners for the State of Nortii Carolina, that the 
said petition be dismissed, and that the said (*om}jany be not oidered to ()[)en 
the said np-town office requested in the said petition, but that, to the contrary, 
the said company be permitted to keep the Mount Airy telep:T-apii office wliere 
it is now located. 
July 30, 1898. 

This case was heard at a session of the Commission June 28. 1898, when R. C. 
Htrong appeared as counsel for defendant. Witnesses were examined, and after 
argument of counsel, and consideration, it is ordered that The Western Union 
Telegraph Company establish in the town of Mount Airy, Noi-th Cai-olina, an 
up-town telegraph oflfice on Main street, or some point more convenient foi* the 
people of said town, on or before the first day of August, 1898. 

To this order defendant filed exceptions. P^xceptions are overruled, and de- 
fendant appeals to the Superior Court. 



zim^lerman and DAVJS 

vs. 
SOUTHERN EXPRESS COMPANY. 

Banidcje to Bicycle - 

Plaintiff filed complaint May 18, 1898, alleging damage sustained to bic^ycle 
in transit from Indianapolis to plaintiff's place of business, at Morganton, N. C, 
to the amount of $5, and asks that the Commission issue its order requiring- de 
fend ant to pay for the loss sustained. 

Complaint served, and answer filed through W. J. (Jroswell, Suj)erintendent, 
saying that a settlement had been made with complainant. 

At a session of the Conmiission July 80, 1898, it a];i)eared that the claim of 
plaintitf had been settled, and that no further i-elief was asked ; closed. 
Julv 80, 1898. 



PULLMAN'S PALACE CAR COMPANY. 

A.s.ses.sDient and Ta.votioii. 

This was a hearing upon exceptions of Pullman's Palace Car C()m|)a7i>- to the 
valuation placed upon the property of said company for taxation. 

The Commissioners at a session June 29, 1898, had placed upon the cars of this 
company, most of which were on cars passing through the State, a valuation of 
$250,000, which was an increase over the former valuation of the Board froia 
$96,000. 



l!^H BOARD OF RAILROAD COMMISSIONERS. 

Defendant filed, through its attorneys, Messrs. J. C. L. Harris and (Tutln-ie & 
(Tiithrie, affidavit of the Secretary of the company, aheging: 

That it is a corporation duly organized and existing by virtue of the laws of 
the State of Illinois, it was chartered and organized primarily as a manufac- 
turing corporation, with special grants of power in its charter to do other things, 
among which is the business of furnishing to railroad companies cars for use in 
operating their railroads. It furnishes some such cars to certain railroad com 
l)anies running into and through the State of North Carolina, under agree- 
ments made with such railroad companies outside the State of North (Jarolina. 
All of said cars so furnished to such railroad companies, except one, are used by 
such railroad companies in interstate business. There is (me car which is used 
wholly within the State of North Carolina, that is between Wilmington, North 
Carolina, and Wilson, North Carolina. All of the othei- cars are used from points 
outside the State into or through the State. 

In the regular course of business not more than a certain i)orti(m of these cars 
so used by railroad comj)anies into and through the State of North Carolina 
may be said to be constantly within the State of North Carolina and subject to 
the jurisdiction of that State for purposes of assessment and taxation. Such 
l^ortion would not exceed that i)roportion of the total number of all of the cars 
required to fill all of the lines running into or through the State of North Caro 
Una which the mileage Mdthin the State of North Carohna bears to the total 
mileage of all of said lines; and this company has heretofore submitted to your 
Honorable Board a sworn statement showing the number of each line of sleep- 
ing-cars used by railroad companies running into or through the State of North 
Carolina, the i)()ints between which such line of sleeping cars runs, the total 
number of miles of such line, the number of cars required to operate such line, 
the total value of the cars used in such line, the number of nnles of such Mne 
within the State of North Carolina, and the proporticmal value of the sleeping- 
cars used in such line due to the State of North Carolina upcm a mileage basis. 
The result of this report shows such proportion in the State of North Carolina 
to be equal to 18.82 cars, the full actual value of which is $5. ()()() each, amount 
ing in the aggregate to §91,638.77; and it is respectfu Uy submitted that the only 
question which your Honorable Board ought to iiupiire into is the value of said 
18.82 sleeping cars, and such value, as heretofore stated, has been submitted 
and sworn to by the undersigned. 

1. The total authorized capital stock of the company is §86,000.000, but the 
whole amount has not been issued. 

2. The pai" value of each share of stock is §100. . 

8. This company's cars are used by railroads over 1,278..") miles of tra-ck within 
the State of North Carolina. 

4. The total number of miles of railroad over which this company's cars are 
used within the United States of America, Canada, Mexico and Europe is 
188,482. They are used upon nearly all the railroads in the United States of 
America, Canada, Mexico and railroads using sleeping-cars in Europe, with the 
exception of what is known as the "Vanderbilt System" of railroads in the 
United States of America and two or three railroad ^^j^^stems which use their 
own sleeping-cars. It would require many pages of writing to give a list of these 
railroads and their mileage. 

5. The actual value of cars used by railroads within the State of North Caro- 
lina, as assets of the company, for the use and purpose for which they are in- 
tended, is $6,500 each, which we consider the fair cash value of the cars. 



COMPLAINTS AND DECISIONS. 127 

6. The railroatl companies collect the fare from passengers for transportation 
or carriage. This company has no interest whatever in such transportation 
fare. The Pullman Company collects the charges for reserved seats by day- 
time and for lodgings at night. 

Exceptions of defendant. • 

Pullman's Palace Car (^omi)any, having been notified that tiie Railroad Com- 
mission of North Carolina has made an assessment against said company for the 
purposes of taxation for the year 1898, upon a property valuation assessed 
against the property of said company at the sum of two hundred and fifty 
thousand dollars (.$250,000), excepts thereto upon the following grounds, to- wit: 

1. Because said assessment and valuation is excessive, as is shown by the re- 
ports, evidence and exhibits submitted to the Ccmimission in support of this con- 
tention. 

2. Because the said assessment is made upon an erroneous basis, in that it is 
not confined to a valuation of the property of said company commonly used in 
North (Jarolina upon the mileage basis prescribed in chapter 169, Public Laws 
of North Carolina, 1897, relating to the appraisement of such property for the 
purposes of taxaticm, and because said assessment embraces property not within 
the ^tate of North Carolina nor liable to assessment for taxation therein. 

8. Because Pullman's Car Company is not a railroad company, and is not em- 
braced within the provisions of sec. 4^. chapter 169, Public Laws of North Caro- 
lina, 1897, nor does own or operate any railroad within the State of North Car- 
olina; and said sec. 48 provides for the leturn for taxation of a railroad company 
of only Pullman or sleeping-cars owned by such railroad com})any or operated 
over its lines. 

4. Because sec. 44 of said chapter 169 does not embrace said Pullman's Palace 
Car Company within its terms, in that the sleeping and dining-cars therein re- 
quired to be listed or scheduled are such as belong to a person, company or cor- 
poration, owning, constructing or operating a railroad in this State; whereas, 
said Pullman's Palace (-ar Company, although a corporation, does not own or 
operate, neither is it engaged in constructing a railroad within the State of 
North Carolina. 

5. Because said Pullman's Palace Car Company, not being a railroad com- 
]3any, or a company such as is designated in sec. 42 of said chapter 169, the 
Board of Railroad Commissioners has no authority or jurisdiction to appraise 
the property of said company at all for any purpose of taxation, and, ccnse- 
fjuently, any appraisement put upon it would be null and void for want of legal 
authority to do so. 

6. Because the aforesaid assessment of the pioperty of said Pullmans Palace 
Car (>)m])any, instead of being confined to a mileage valuation of the actual 
pro})erty owned by said company, is an attempt without authority of law to 
assess for taxation the capital stock of said company, as by the terms of sec. 46 
of said chapter 169 only inter railroads are included, and by its terms the Pull 
man's Palace Car Company, not being the owner or the operator of any rail- 
road in the State of North Carolina, the taxation of its capital stock is not in 
eluded in said section, or anywhere under the snb-hending of "Railroads" in 
said chapter. 

Argument of counsel, J. C. L. Harris and W. A. (iuthrie, for defendant, and 
John W. Hinsdale for the State, is heard; and after consideration, it is ordered 
that the valuation of the property be reduced from $250,000 to the same valua- 
tion as for the year 1897, that is, $96,918.15. Case closed 
Julv 80, 1898. 



V2S BOARD OF RAILROAD COMMISSIONERS. 



STATE OF NORTH CAROLINA, ON THE RELATION OF THE RAIL- 
ROAD COMMISSIONERS, 

vs. 
WESTERN UNION TELEGRAPH COMPANY. 

Telegraph Rates. 
At a session of the Coniiiiission July 12, 1898. orders were issued in these words: 

Order No. 92. 

Be it ordered, that on and after the 15th day of July, 1898, The Western Union 
Telegraph Company shall charge for the transmission of any message one cent 
less than the rate heretofore fixed and approved by the Railroad Commission: 
Provided, the sender of the message has affixed the stamp required under Act 
of Congress. 

Ordkr No. 98. 

Whereas, Section 26 of the Railroad Commission Act prescribes a penalty of 
not less than $50 against any telegraph or telephone company doing business in 
the State, for charging a higher rate for the transmission of any message than 
that fixed or approved by said Railroad Conmiission; and 

Whereas, The Western Union Telegraph Company has charged and continues 
to charge a higher rate than that fixed or approved by the Railroad Connuis- 
sion : 

Resolved, " That The W^estern Union Telegraph Company be and is hereby 
notified to appear before the Railroad Commission on July 29, 1898, and show 
cause, if any it can, why the penalties incurred for each and every overcharge 
since the first day of July, 1898, be not enforced.'' 

Resolved further. '' That said Western Union Telegraph Company be and is 
hereby required to produce before said Connnission on said 29th day of July, 
1898, a sworn statement of the number of messages received at its various offices 
in the State since July 1, 1898, to date of hearing, wherever any amount has 
been paid to said company or any agent of said company." 

To these orders defendants filed exceptions as follows: 

1. That the rates fixed by said orders are not just and reasonable. 
, 2. That if the said company should be required to transmit messages between 
any two points within the limits of the State of North Carrlina at the rates pre 
scribed in said orders, it would entail a loss upon said com]:)any in the trans- 
mission of such messages. 

8. That the said company can not transmit messages between points in the 
State of North Carolina at the rates prescribed in said orders and derive any 
profits therefrom. 

4. That the said company has a general system of telegraph lines throughout 
the greater part of the United States, and is engaged in transmitting messages to 
and from various points in the States and Territories of the United States, and 
that the lines maintained and operated by it in the State of North Carolina con 
stitute a part of its general system. That the rates prescribed by said orders, if 
enforced, would be a reduction of 40 per cent and more in the rates charged 
and received by said company for messages transmitted between i)oinfs in tlie 



COMPLAINTS AND DECISIONS. 13B 

olina Railroad scale, and if you will kindly grant your approval, we will proceed to 
have the tariff printed and put in effect in anticipation of tlie new cotton year." 

At a session of the Commission August 30, 1898, this petition was considered, and 
it appearing that a revision of the cotton rate as petitioned woidd be more uniform 
and satisfactory, it was ordered that the petition be granted. 
August 30, 1898. 



NORTH CAROLINA FARMERS ALLIANCE TO THE COMMISSION. 

Jlfni/nnni Car Lo(i(/ on Fertilizers. 

This was a petition from the North Carolina Farmers Alliance asking the Com- 
missioii to reduce tlie minimum car-load on fertilizers from 15 tons to 10 tons. 

At a session of the Commission August 30. 1898, this petition had a very careful 
consideration, and a letter waft addressed to petitioners as follows : 

••It is the opinion of the Commission that no further reduction should be made 
in the freight rates on fertilizers at the present time, as the rate was only recently 
reduced at an average of about 20 per cent, and it was done in the interest of the 
farmers, and it was the understanding wiien the rates were reduced on fertilizers 
that the railroads would acquiesce in same, and the Commission felt that it was 
nothing but just and right that the railroads should be given the advantage of a 
15 ton minimum. For the present at least your petition is denied." 
August 30. 1898. 



ABERDEEN AND ROCK FISH RAILROAD COMPANY TO THE COMMISSION. 



Joint Rotes. 

This was a petition asking to be relieved from the provision of Rule No. 28, which 
provides •• That on all shipments of freights not governed by Rule 1, originating and 
terminating in this State, which shall pass over the whole or portions of two or 
more roads, not under the same control, the maximum rates charged shall be the 
same of the two locals on such freight, less ten per cent, for the distance hauled 
over each road."' 

Plaintiff asks this concession on the grounds that his is a local road engaged 
principally in hauling lumber, and that the existing rate is now more than 10 per 
cent less than the standard rate of the Commission. 

At a session of the Commission August 30. 1898, it was ordered that the petition 
be granted. 

August 30, 1898. 



134 BOARD OF RAILROAD COMMISSIONERS. 



Rev. J. M. RHODES TO THE COMMISSION. 

Reduced Transportation. 

This was an application by Rev. J. M. Rhodes, President of Central Academy and 
Industrial School, at Littleton, for reduced rate on building material, consisting of 
lumber^ lime, brick, cement, etc., to be used in the construction of buildings at 
this institution, inasmuch as the railroad companies had expressed a willingness 
to grant the reduced rate if permitted to do so by the Commission. 

At a session of the Commission, August 2, 1898, this petition was considered, and 
the Commission was of the opinion that the special rates could be granted for this 
institution under the 25th section of the Act creating the Commission, and will not 
be a violation of law. 

August 30, 1898. 



CARALEIGH PHOSPHATE C(?MPANY 

vs. 

SEABOARD AIR LINE. 

Rate on Fertilizers. 

The Caraleigh Phospliate Company complains that the roads of the Seaboard Air 
Line System do not comply with Circular No. 87 of the Commission in fixing a 
schedule of rates on fertilizers. For instance, said company charges a rate of $1.50 
per ton from Raleigh to Louisburg, when according to Circular No. 87 the rate 
should be $1.30 per ton, and that a charge of $3.00 per ton was made to Potecasi. 
which was also in excess of tlie tariff. 

Notice was served on defendant with the advice that tlie Raleigh and Gaston road, 
which includes the Louisburg road, was not exempt from the provisions of Circular 
No. 78, but should be considered as one and the same road, and the rate should have 
been so figured. 

Defendant answered through Mr. H. W. B. Glover, Traffic Manager, as follows : 

"I cannot understand why Mr. Chamberlain should complain of our rate of $1.50 
per ton on fertilizers to Louisburg from Raleigh, inasmuch as that rate is very 
much lower than a combination of locals less ten per cent. I have never under- 
stood that the interchange of business between the Raleigh and Gaston or Louisburg 
roads should be figured as over one and the same name, or that the rate from Ral- 
eigh should be on a continued mileage basis." 

To this letter the Commission replied as follows : 

" The matter of joint rate on fertilizers from Raleigh to points on the Louisburg 
Railroad, and to points on the Roanoke and Tar River Railroad was considered by 
the Commission at the session to-day, and it was the sense of the Commission that 
you are violating Rule 1 of the Commission (rules governing the transportation of 
freight), in the rates as promulgated by you. Circular No. 73, fixing a schedule of 
rates for fertilizers, applies to the Raleigh and Gaston Railroad, to the Roanoke and 
Tar River Railroad and to the Louisburg Railroad, and the rates should be made as 



COMPLA.INTS AND DECISIONS. 185 

upon one and the same road. See Rule 1, page 89, Commissioners' Report for tlie 
Year 1896, which reads as follows : 

'•'All connecting railroads, which are vmder the management and control, by 
lease, ownership or otherwise, of one and the same company, shall, for purposes of 
transportation, in applying this tariff, be considered as constituting but one and the 
same road, and the rates shall be computed as upon parts of one and the same road, 
unless otherwise specified.' 

•• The same rule applies also on shipments from Wilmington and points on the 
Carolina Central to Raleigh and Augusta and Raleigh and Gaston points. It is the 
order of the Commission that you conform to this rule, and that the rates be made 
up accordingly. On the Raleigh and Augusta Railroad you are allowed 15 per cent 
above the standard, but this does not make a rate as high as the rate allowed the 
Carolina Central, and the rate from Carolina Central points to Raleigh and Augusta 
points should not be higher than the mileage rates for distances as per Carolina 
Central rate. H. C. Broavn, Clerk."' 

The Traffic Manager replied as follows : 
'•To H. C. Brown, Clerk. 

" Does not the Board err in its ruling as to the application of fertilizer traffic No. 
78? While it is true that many of the individual officers are one and the same, 
still it is a fact that each of the separate roads pay each of the said individual 
officers a part of the salaries, and that the transactions carried on over the different 
lines are separately accounted for by the different roads, each of which have dis- 
tinctive boards of directors, stockholders, and separate ownership in that respect 
generally. 

" Each of these projjerties are entitled to make their earnings, in accordance with 
the authorized traffics, and although under the same management nominally and 
for the purpose of economy in expenditures and economical management, are 
handled to an extent through the same individual, but each individual draws salary 
from each of the companies, and in that way is a distinctive representation. 

" By reference to the Eleventh Annual Report of the Interstate Commerce Oom- 
mission, page 111, you will find a decision by Mr. Justice Fields, sitting as Circuit 
Justice, which is cited by the Interstate Commerce Commission, whereunder it is 
held that ' a railroad company in carrying between points in the same State by a 
route which jjasses through another State is as clearly engaged in commerce among 
the States while operating in the second State." 

" The Commission held that the State of New York is without power to autliorize 
the construction of a route from a point in that State through the State of New 
Jersey to New York City, or to control the operation of such a route, or to regulate 
charges made thereover, etc. 

" This would seem to settle the question as to rates between points on the Seaboard 
and Roanoke Railroad and Roanoke and Tar River Railroad, in North Carolina, 
which traffic would be handled via Boykins, Va. I will be glad if you will bring 
this matter to the attention of the Board again, pointing out the facts as stated by 
me above, in regard to separate boards of directors, separate organizations, separate 
stockholders, and generally a separate interest, not overlooking the fact that there 
is a separate capital devoted to the building and maintaining of these properties, 
and that said capital should have opportunity of earning a fair, a reasonable return 
on business handled from a station on one road to a station on another road, and 
because of the economy in the management which enables it to be conducted by 
the same individual officers, although each of the roads pay tlie officers its specific 
share of remuneration, that for that purpose and in the effort to keep rates lower, 



136 BOARD OF RAILROAD COMMISSIONERS. 

because of economy in the management, tlie individual stockholders and owners, 
and the bond issue, interest on which issues has been met. should not be made to 
suffer. I presume these facts were not before the Board when the ruling referred 
to was made, or they would doubtless agree with me that in this case and under 
these conditions their freight rule No. 1 should not attach."* 

Defendant desired a hearing on the matter, and at a session of the Commission 
August 30th, 1898, this case was called, when Traffic Manager H. W. B. Glover and 
J. C. MacRae, counsel, were present and heard. The Commission having carefully 
considered the case in all of its bearings, is of the opinion and so adjudged that the 
defendant comply with Rule 1 of the Commission, and that tlie rates on fertilizers 
be made up accordingly on all shipment of fertilizers to and from points over the 
roads comprising the Seaboard Air Line System. 

August 30. 1898. 



STATE OF NORTH CAROLINA ON THE RELATION OF THE R.^ILROAD 

COMMISSION 

vs. 

SOUTHERN EXPRESS COMPANY. 

liertiiffc Charge of (hie Cent by the Southern Express Coinpany. 

At a session of the Commission July 13th, 1898, the following order was issued : 

" Complaint having been filed before the Railroad Commission that the Southern 
Express Company has exacted and continues to exact and collect from shippers a 
higher rate of charges than that allowed under their published tariffs, it is ordered 
that tlie said Southern Express Company show cause before the Railroad Commis- 
sion, if any it can, on July 29, 1898, why the penalties for such overcharges be not 
enforced, as set forth in section 26 of the Railroad Commission Act. It is further 
ordered that the said Express Company furnish to this Commission a sworn state- 
ment of the number of shipments made since July 1, 1898, to July 29, 1898, on which 
such overcharges have been made." 

The defendant, in answering this order, says : 

The order of the Commission recites that a complaint has been filed before the 
Railroad Commission that the Southern Express Company has exacted, and con- 
tinues to exact and collect from shippers a higher rate of charges than that allowed 
in tlieir published tariffs, and it is ordered that the Southern Express Company 
show why penalties shall not apply. 

The Soutliern Express Company, through the undersigned, expressly denies that 
the Southern Express Company has enacted or collected a higher rate of charges 
than that allowed in their published tariffs. 

The name of the complainants is not stated in the notice, nor the place at which 
the alleged act is said to have occurred, therefore we have no information upon 
which to base an investigation to learn whether or not any errors have been made 
in such charges. 

Clerical errors in either overcharging or undercharging on the part of our em- 



COMPLAIJNTS AND DECISIONS. 1?>T 

ployees are possil^le, but our employees have no instructions to vary from the regu- 
lation charges as published. 

In the order of the Commission it is further ordered " that the said Ex])ress Com- 
pany furnish to this association a sworn statement of shipments made since July 1, 
1898, to July 29. 1898, in which such overcharges have been mado." 

Not being aware of any overcharges, and not being in possession of any informa- 
tion that would enable me to investigate any claim or allegation that overcharges 
occurred. I am unable to furnish any such statement as required in the order. 

This cause came on for liearing at a session of the Commission August 30. 1898. 
F. H. Busbee and D. Bignion representing defendants. 

The Commission having fully considered the answer of defendant, and argument 
of counsel, is of the opinion that it has jurisdiction of all matters of overcharges by the 
express companies, and that the charge of one cent required by the company from 
the shipper is an overcharge in each and every case. The Commission is further of 
the opinion that the charge of one cent appertains directly to the transportation of 
the package, and in the opinion of the Commission is a part of the trans]wrtation 
charges. 

It is further ordered that on and after the Ttli day of September. 1898. the South- 
ern Express Company shall place and pay for the revenue stamp on all sliipments 
as required by law. 

Whereupon, the Southern Express Company makes application for leave to in- 
crease its rates between points in North Carolina, heretofore prescribed by the Com- 
sion as being just and reasonable, to the extent of one cent on such shipments to 
cover the additional expense imposed by the United States Revenue Act of 1898. 

Petition is denied. 
August 80, 1898. 



WILMINGTON TARIFF ASSOCIATION 

vs. 

ATLANTIC COAST LINE, SOUTHERN RAILWAY. SEABOARD AIR LINE. 

ATLANTIC AND NORTH CAROLINA RAILROAD COMPANY. 

This was a petition asking that the Commission issue its order requiring the de- 
fendant railroads to issue interchangeable mileage ticket books at $25.00 for 1,000 
mile tickets, and 2,000 mile tickets at $40.00. 

This petition was read at a session at Raleigh September 80, 1898. and it appear- 
ing that inasmuch as this matter of mileage tickets had been previously heard, and 
no new facts presented other than had been passed upon, it was the opinion of the 
Commission that a ruling at this time should be denied, and it was so ordered. 
Case dismissed. 

September 80, 1898. 



1'^>S BOARD OF KAILROAD COMMISSIONERS. 



L. A. VEST 

vs. 

SOUTHERN EXPRESS COMPANY. 

Damage. 

Complainant filed claim foi damage on shipment of oysters from Suffolk. Va.. to 
Haw River, alleging negligence in handling and delay in delivery. 

Complaint was served and answer filed, saying that the damage sustained had 
been paid. Closed. 

September 30, 1898. 



A. J. McKIMMON 

vs. 

SOUTHERN RAILWAY. 



Excess Charge for Failure to Purchase Ticl'et. 



Plaintiff filed his complaint September 1, 1898, alleging that on August 24th he 
was at Reidsville, and desiring to board the train passing for Danville, waited at the 
liotel until he heard the train blow and then went to the station and found the 
agent had closed the ticket office. The conductor, for a distance of 24 miles, 
charged him 95 cents for a second-class ticket, or an excess of 80 cents for failure 
to have ticket. 

Plaintiff demands the refund of 30 cents. 

A letter was addressed to complainant as follows : 

•'I hand yovi copy of rule in regard to buying of tickets before boarding trains, 
etc., which reads as follows: 

" '8. Where a railroad company has provided agents and offices, ready and open 
for the sale of tickets, and the passengers, for want of proper diligence, fail to sup- 
ply themselves therewith before getting on the train, then 10 cents additional for 
each passenger 12 years old and over may be demanded and collected for all dis- 
tances not greater than 10 miles, and 20 cents in like manner for all distances not 
less than 10 nor greater than 20 miles, and 30 cents in like manner for all distances 
over 20 miles. Half these rates for each passenger over o years old and under 12 
years may in like manner be demanded and collected : Provided, however, offices at 
way stations may be closed one minute before the arrival of trains.' 

•'It would seem from the rule that if you were not at the depot more than one 
minute before the arrival of tlie train, the conductor was justifiable in charging 
you an excess.' 

At a session of the Commission September 30, 1898, no answer having been re- 
ceived from the plaintiff, it was adjudged that no further action be taken. Closed. 

September 30. 1898. 



COMPLAINTS AND DECISIONS. UVJ 



A. B. CRAVEN 

vs. 

NORTHAMPTON AND HERTFORD RAILROAD COMPANY. 

Freight Rate on LuDiher. 

This was a complaint for excessive freight rate on lumber and logs over defend- 
ant's road. 

At a session of the Commission September 30, 1898, this case was thoroughly in- 
^estigated and considered by the Commission, and it appearing that the defendant 
was charging no higher rate than that heretofore approved by the Commission, 
and which appears not to be excessive, it is adjudged that the case be dismissed. 
September 30, 1898. 



TAR RIVER OIL COMPANY 

vs. 

WILMINGTON AND WELDON RAILROAD COMPANY. 

Overcharge. ^ 

Complaint for overcharge on gin, gear cylinders, shipped from Tarboro to Atlanta. 

Complaint was served August 26, 1898, and answer hied September 20, 1898, 
through H. M. Emerson saying that voucher had been made for the overcharge 
of ^6.12. 

At a session of the Commission September 30, 1898, it appearing that defendant 
had refunded to plaintiff the overcharge, and that no further relief was demanded, 
case was closed. 

September 30, 1898. 



OAKDALE COTTON MILLS 

vs. ' 

SOUTHERN RAILWAY. 

Overcharges and Delivery of Freight. 

Plaintiff alleged overcharges on numerous shipments and negligence on part of 
defendant in tracing lost freights. 

This complaint was served on defendant with request that the matters com- 
plained of have an immediate investigation and that plaintiff be given satisfaction. 



14(1 BOARD OF RAILROAD COMMISSIONERS. 

Defendant answered the complaint through Mr. W. W. Finlev. Second Vice-Presi- 
dent, saying that all claims of plaintiff would be promptly adjusted and that the 
present s\ stem of tracers will be investigated, and such revision would be made as 
will bring more satisfactory results to its patrons. 

Copy of answer was furnished plaintiff with request that the Commission be ad- 
vised if satisfactory adjustments of all the matters complained of had been made. 

At a session of the Commission September 30. 1898, it appearing that plaintiff de- 
sired no further action, case was closed. 
September 3U. 1898. 



RALEIGH AND GASTON RAILROAD COMPANY TO THE COMMISSION. 

Special Freight Rates. 

Petition asking to be permitted to make a freight rate of one-half on shipment of 
benches to Antioch church. • 
Granted. 

September 80. 1898. 



HENDERSON COTTON MILLS TO THE COMMISSION. 

Reduced Rates. 

This was a petition by D. Y. Cooper. President of Henderson Cotton Mills, at 
Henderson. N. C. asking that a special freight rate be given on building material 
for the construction of proposed mills. The petition was followed by consent from 
the Raleigh and Gaston Railroad Company j)roposing to grant a special rate of two- 
thirds of the regular tariff rate. 

This application was filed under the proviso contained in the sixth section of the 
act establishing the Commission, which is as follows : 

•'That the Railroad Commissioners, conjointly with such companies, shall have 
authority to make special rates for the purpose of developing all manufacturing, 
mining, milling and internal improvements in the State.*' 

At a session of the Commission at Raleigh. October 25, 1898, this application wa$ 
considered by the Commission, and it was adjudged and so ordered that the special 
rate of two-thirds the regular tariff be approved. 

September 30, 1898. 



COMPLAINTS AND DECISIONS. 141 

KERNb:R BROS. 

vs. 

THE SOUTHERN EXPRESS COMPANY. 

This was an application by plaintiffs, Kerner Bros., to compel the defendant to 
accept and transport by express packages over its routes without the prepayment 
of the charges for such carriage. The Southern Express Company appeared and 
demurred on the ground tliat it appeared! from plaintiff's' own showing that they 
were not entitled to the relief sought, in that they had failed and refused to prepay 
the charges demanded prior to the shipment. 

Held, that the denuirrer is sustained. Action dismissed. 
Allen vs. Railroad. 100 N. C. Rep.. 397. 
Randal vs. Railroad. 108 N. C, 612. 

September 80, 1898. 



CLASSIFICATION OF UNGINNED COTTON. 

At a session of the Commission August 80, 1898. Circular No. 101 was issued as 
follows : 

"Change in Commissioners' classiffcation— Unginned cotton, packed in bags, 
2,000 pounds and over, L. C. L.. 6th class. Unginned cotton, packed in bags or 
loose, C. L.. minimum weight 10.000 pounds. Class "A," shippers to load and un- 
load.'" 

The different roads of the State filed exceptions to the effect — 

1st. That the existing classification on cotton is just and reasonable. 

2d. That the classification as modified by said Circular No. 101 is unjust and 
unreasonable for the reason that it will result in a reduction of the revenue derived 
by the railroad companies for the transportation of cotton to such an extent as to 
render the revenue derived under said proposed change in classification unjustly 
and unreasonably low for the service expected to be performed, so that the said 
rates would fail to yield to the roads a reasonable rettirn for their service in the 
premises. 

3d. That the vspecification of 10.000 pounds as a minimum car-load rate for un- 
ginned cotton packed in bags or loo>e is lower than is just and reasonable to the 
railroad companies. 

This case was called and heard at a session of the Commission October 25, 1898. 
and after consideration the Commission was of opinion that the exceptions of de- 
fendants should be sustained. So ordered, and Circular No. 101 rescinded. 

October 25, 1898. 



14:2 BOARD OF RAILROAD COMMISSIONERS. 



J. A. McARTHUR 

vs. 

WILMINGTON AND WELDON RAILROAD COMPANY. 

Overcharge. 

Complaint of overcharge on shipment of boiler from Wilmington to Clinton. 

It appearing that there was an overcharge of $6.16 on the shipment, defendant 
was asked to refund. 

At a session of the Commission October 25. 1898, it appearing that the overcharge 
had been refunded to plaintiff, and that the overcharge was caused by error of de- 
fendant's agent, case was closed. 

October 25. 1898. 



S. W^ LOVINGOOD ET AL.. 

vs. 

SOUTHERN RAILWAY. 



Train Service. 



This was a petition from the citizens of Murphy complaining of the schedule and 
passenger train service from Bryson City to Murphy, and asking that an order be 
issued requiring the passenger train that runs from Asheville to Bryson City to be 
run through to Murphy. 

This petition was served on defendant with request for answer. 

Answ^er was received on September 24, 1898, through A. B. Andrews, Vice Presi- 
dent of defendant company, as follows : 

*' We are operating the Murphy Branch at a loss. The passenger earnings of our 
Murphy trains have been, since the first of January last, but a trifle over $11.000 — 
that is $54.66 a day, or 22 cents a mile. 

••The business is. of course, light, and the expense of operating the Branch is 
exceedingly heavy on account of grade and curvature. 

'• Certainly the business of the road does not justify the maintenance and opera- 
tion of a railroad there, and M'ould be a hardship to force us to put on another 
train." 

At a session of the Commission October 25. 1898, this matter was considered, and 
the Commission was of the opinion that the petition should not be granted. Case 
dismissed. 

October 25, 1898. 



COMPLAINTS AND DECISIONS. 148 



K. L. CRAVEN 

vs. 

SOUTHERN RAILWAY. 

.Discrimination. 

Complainant alleged discrimination in freight rates on C. L. shipments of coal 
frcmi Tennessee points to Concord, N. C, and Charlotte, N. C, and that a manu- 
facturer was getting a lower rate than the individual. 

Complaint was served on defendant October 17, 1895, and answ^er filed October 25. 
1898. denying allegation of plaintiff, but that the difference in the rate charged 
was caused by different class of coal shipped. It appearing upon further investi- 
gation that there was no discrimination in the rates complained of. case was dis- 
missed. 

October 25, 1898. 



CITIZENS OF DILLSBORO 

vs. 

SOUTBERN RAILWAY. 



St a t io n Fa c ilitie.s . 



This was a petition ))y the citizens of Dillsboro, alleging that the depot accommo- 
dations at that place were inadequate for the business of the place, uncomfortable 
and unsightly, and asking that tlie Commission issue an order requiring defendants 
to erect a new and more commodious building. 

In answer to the notice to show cause, if any. why the the petition sliould not be 
granted, a letter is received from A. B. Andrews, First Vice-President of defendant 
company, saying that instructions had been given for the remodeling of the depot 
and the improving generally its condition. 
October 25. 1898. 



LYERLY BROS. 

vs. 

SOUTHERN RAILWAY. 



Loading Cotton. 

Plaintiff alleged that defendants' agent at Cleveland, a station on the line of the 
Southern Railway, refused to issue bill of lading for cotton in bales unless placed 
in defendants' cars. 



14:4 BOARD OF RAILROAD COMMISSIONERS. 

Complaint was served and answer filed through J. B. Munson, Division Freight 
Agent of defendant company, that the refusal to comply with demand of plaintiff 
was an error on part of agent, and in future there would be no further cause for 
complaint. Plaintiff desiring no farther relief, case was closed. 

October 25, 1898. 



Circular No. 72. 
QUARTERLY REPORTS TO THE COMMISSION. 

Raleigh, December 30, 1897. 

Ordered, that Quarterly Report. Form "• B,'" be amended so as to show a detailed 
statement of freight and passenger earnings, operating expenses, etc.. etc.. (copy 
of form on file.) 

Ordered further, that a separate detailed report of earnings and expenses shall be 
made for each main and branch line or division. 

Ordered further, that this report shall be filed in the office of the Railroad Com- 
mission within 80 days after the close of each (quarter. 

Effective on and after January 1, 1898. 

By order of the Commission. L. C. Caldwell. Chairman. 



Jno. H. Pearson. 
D. H. Abbott. 



H. C. Brown. Clerk. 



CIRCULAR No. 78. 



Raleigh, N. C. January 7. 1898. 
On and after the first day of February, 1898. all telephone companies within tliis 
State, whether incorporated or otherwise, will be allowed a maximum charge for 
service, as follows, viz.: 

place of business. 

Special wire |'80.00 per year. 

2 and 8 Party wire (each) 24.00 per year. 

4 and 6 Party wire (each) 18.00 per year. 

residence. 

Special wire $18.00 per year. 

2 and 8 Party wire (each) ....'_ 16.00 per year. 

4 and 6 Part}^ wire (each ) 14.00 per year. 

L. C. Caldwell, Chairman: 
Jno. H. Person, 
D. H. Abbott. 
By order of the Board. 

H. C. Brown, Clerk. 

This tariff does not apply to services rendered outside the incorporate limits of 
any city or town. 



COMPLAINTS AND DECISIONS. 145 

CIRCULAR No. 74. 

Raleigh, N. C, January 13, 1898. 

FERTILIZER RATES. 

On and after the first day of February, 1898, the maximum freight rate on ferti- 
lizer, car-load shipments, 20,000 pounds minimum, will be the present rate in effect, 
less (16 2-3) sixteen and two-thirds per cent. 

Applicable to all roads. 

By order of the Commission. 

L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



CIRCULAR I^o. 7; 



Raleigh, January 28. 1898. 
Circular No. 70, bearing date September 21, 1897, fixing rate on cotton over the 
Atlantic Coast Line System, 
Southern Railway System, 
Seaboard Air Line System, and 
Cape Fear and Yadkin Valle}" Railway, 
is repealed. 

Rates in effect prior to this date are restored. 
By order of the Commission. 

L. C. Caldwell. Chairman. 
H. C. Brow^n, Clerk. 



CIRCULAR No. 76. 

Raleigh, February 1, 1898. 
On and after February 10, 1898. the following change in Commissioners' classifica- 
tion will be in effect : 

Corn in sacks, or bulk, car-load, minimum 25,000 pounds, Class K, Commissioners" 
Standard Tariff. Shippers to load and unload. 

On all shipments which shall pass over the whole or portions of two or more 
roads, in applying tariff it shall be considered as upon one and the same road. 
Applicable to all roads. 
By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown, Clerk. 

1 10 



146 BOARD OF RAILROAD COMMISSIONERS. 



CIRCULAR No. 77. 

Raleigh, February 1, 1898. 
AMENDING RULE No. 30 OF RULES GOVERNING THE TRANSPORTATION 

OF FREIGHT. 

Rule No. 30 of the Rules Governing the Transportation of Freight is amended, to 
read as follows : 

Whenever any goods, or articles of freight of any kind, shall be received by any 
common carrier in this State, to be delivered to any consignee in this State, and a 
portion of same shall not have been received at the place of destination, the carrier 
shall not demand any part of the charges for freight or transportation due for such 
portion of the shipment as shall not have reached the place of destination. And in 
case of loss, damage or overcharge of such freight, if the consignee present his bill 
of lading and the original invoice to the agent of the company at place of destina- 
tion of such goods, within thirty days after notice of the loss, damage or over- 
charge, and said company fails or neglects to deliver to the consignee the goods lost 
or damaged, in good order, or refund any overcharge for thirty days after such 
notice, then such company shall be liable for the value of such goods lost or dam- 
aged or overcharged. The carrier shall be required to deliver to the consignee such 
portion of the consignment as shall have been received, upon the payment or ten- 
der of freight charges due upon such portion, as provided by chapter 495, Laws 1893. 

By order of the Commission. 



L. C. Caldwell. Chairman. 



H. C. Brown, Clerk. 



CIRCULAR No. 



Raleigh. February 18, 1898. 
From and after the first day of February, 1898, the maximum freight rates on 
fertilizers on all railroads in this State will be as follows : 

CAR-LOAD FIFTEEN TONS MINIMUM. Per Ton. 

12 miles and under $1 . 00 

20 miles and over 12 1.10 

30 miles and over 20 1.20 

40 miles and over 30 . 1 . 30 

50 miles and over 40 1 . 40 

60 miles and over 50 1 . 50 

70 miles and over 60 1.60 

80 miles and over 70 . . 1. 70 

90 miles and over 80 L 80 

100 miles and over 90 1.90 

110 miles and over 100 2.00 

120 miles and over 1 10 2.10 

130 miles and over 2. 20 



COMPLAINTS AND DECISIONS. 14T 

CIRCULAR No. 78— Continued. 

CAR-LOAD FIFTEEN TON MINIMUM. Per Ton. 

140 miles and over $2. 30 

150 miles and over 2. 40 

160 miles and over 2. 50 

170 miles and over 2. 55 

180 miles and over 2. 60 

190 miles and over 2.65 

200 miles and over 2. 70 

210 miles and over • 2. 75 

220 miles and over 2. 80 

230 miles and over 2. 85 

240 miles and over 2. 90 

250 miles and over 2. 95 

260 miles and over 3. 00 

270 miles and over 3.05 

On less than car-load shipments, rates may be made twenty per cent higher than 
above. The joint rates on two or more roads, not under the same management or 
control, shall be made on the basis of the sum of the locals of each road, less 
twenty per cent. 

The following roads are excepted from the provisions of this circular : Cheraw 
and Darlington, Wilmington, Newbern and Norfolk, and the present tariff in effect 
on these roads is continued. Wilmington, Columbia and Augusta may add ten per 
cent. North Carolina Midland, Northwestern North Carolina, Winston to Wilkes- 
boro. State University, States ville and Western, Western North Carolina, Asheville 
to Murphy, and Yadkin Railroad will continue present rate in effect. 

The Carolina Central Railroad shall apply the rate now in effect on the Cape Fear 
and Yadkin Valley Railroad. The present rate in effect on the Durham and North- 
ern Railroad is continued. Raleigh and Augusta Railroad may add fifteen per cent 
to Commissioners' standard rate. The present rates in effect on the following roads 
are continued : 

Aberdeen and Rock Fish, Atlantic and Danville, Cape Fear and Yadkin Valley, 
Carthage, Carolina and Chowan, Chester and Lenoir, CaMwell and Northern, Dan- 
ville. Mocks ville and Southwestern, Raleigh and Western, Durham and Charlotte, 
Atlantic. Knoxville and Northern, Henderson and Brevard, Northampton and 
Hertford, Norfolk and Southern, Noi'folk and Western, Moore County, Ohio River 
and Charleston, Suffolk and Carolina and Warren ton. 
By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown, Clerk. 



CIRCULAR No. 79. 

Raleioh, N. C, February 1, 1898. 

From and after February 1, 1898, the rate on corn, sacked or in bulk, C. L. 25,000 
minimum, from New Bern to Raleigh, shall be ten cents per hundred pounds. 
Expires May 31, 1898. 
By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown. Clerk. 



148 BOARD OF RAILROAD COMMISSIONERS. 



CIRCULAR No. 80. 

Raleigh, N. C, February 31, 1898. 

From and after the 23d day of March, 1898, the fares for the transportation of pas- 
sengers shall be as follows: 

Two and one-half cents per mile for first-class tickets; two cents per mile for 
second-class tickets on the following railroads in North Carolina, to-w^it: 

The Wilmington and Weldon Railroad from Wilmington to Weldon, and that 
part of the Wilmington and Weldon Road from Contentnea to the South Carolina 
State line; the Petersburg Road from Weldon to the Virginia State line; that part of 
the Tarboro Branch from Rocky Mount to Tarboro, and the Norfolk and Carolina Rail- 
road from Tarboro to the Virginia State line; the Raleigh and Gaston Railroad from 
Weldon to Raleigh; the Seaboard and Roanoke Railroad from Weldon to the Vir- 
ginia State line and the Raleigh and Augusta Air Line from Raleigh to Gibson; the 
North Carolina Railroad from Goldsboro to Charlotte; the Piedmont Railroad from 
Greensboro to the Virginia State line; that part of the Northwestern North Carolina 
Railroad from Greensboro to Winston; the Western North Carolina Railroad from 
Salisbury to Paint Rock; the Atlantic, Tennessee and Ohio Railroad from Charlotte 
to Statesville; the Atlanta and Charlotte Air Line Railroad from Charlotte to the 
South Carolina State line, and the Charlotte, Columbia and Augusta Railroad from 
Charlotte to the South Carolina State line. 

By order of the Commission. 

L. C. Caldwell, Chairman. 

H. C. Brown. Clerk. 



CIRCULAR No. 81. 

Raleigh. N. C, February 23, 1898. 

Whereas, Section 4, chapter 320, of the Acts of the General Assembly of North 
Carolina, at its session of 1891, known as the Railroad Commission Act, makes it 
unlawful for "any common carrier " within the State, "either directly or indirectly, 
by any special rate, rebate, drawback or other device, to charge, demand, collect or 
receive from any person or persons, a greater or less compensation for any service 
rendered, or to be rendered, in the transportation of passengers than it charges, 
demands, collects or receives from any other person or persons;" and — 

Whereas, Section 25 of said Act enumerates the exceptions above permitted, 
and — 
- Whereas, Absolute equality is the demand of the law. 

Resolved, That said Act condemns and prohibits free-pass or free-mileage trans- 
portation to all editors, staff correspondents and employees of the newspapers of 
the State; 

That said Act applies with equal force to free-pass or free-mileage transportation 
to attorneys within the State not actually employed by the common carrier for a 
certain and definite sum and not the actual and bona fide emploj^ees of the carrier. 

By order of the Commissioners. 

L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



COMPLAINTS AND DECISIONS. 149 

CIRCULAR No. 82. 

(SUPERSEDES CIRCULAR NO. 631.) 

FREIGHT RATE ON FIREWOOD. 

Raleigh, N. C, March 16, 1898. 

In car-loads released, loaded and unloaded by shipper, 10 cords minimum, 
effective at once: 

1 to 10 miles, per cord 40 cents. 

10 to 15 miles, per cord 45 cents. 

15 to 30 miles, per cord 50 cents. 

30 to 40 miles, per cord 55 cents. 

40 to 50 miles, per cord 60 cents. 

Applicable to all railroads in the State. 
By order of the Commission. 

L, C. Caldwell, Chairman. 
H. C. Brown, Clerk. 



CIRCULAR No. 83. 

(revoking circular no. 82 and restoring circular no. 63.) 

FREIGHT RATE ON FIREWOOD. 

Raleigh, N. C, March 29, 1898. 

Circular No. 82 — Freight rate on firewood — is hereby repealed. 
Circular No. 63 is restored, which is as follows: 

Circular No. 63. 

FREIGHT RATE ON FIREWOOD. 

In car-loads released, loaded and unloaded by shipper, 10 cords minimum, effective 
July 1, 1897: 

1 to 10 miles, per cord... 50 cents. 

10 to 15 miles, per cord 55 cents. 

15 to 30 miles, per cord 60 cents. 

30 to 40 miles, per cord 70 cents. 

40 to 50 miles, per cord.. 80 cents. 

Applicable to all railroads in the State. 

L. C. Caldwell, Chairman, 
H. C. Brown, Clerk. 



150 



BOARD OF RAILROAD COMMISSIONERS. 



CIRCULAR No. 84. 

Raleigh, N. C, March 30, 1898. 

On and after the 30th day of April, 1898, the maximum charge for mileage tickets 
of two thousand miles shall be forty dollars and for one thousand mile tickets 
twenty-five dollars, on the following systems of roads, including their branch lines, 
to-wit : 

The Atlantic Coast Line, the Seaboard Air Line and the Southern Railway. Said 
tickets or mileage books to be valid on presentation by the holder and good for first- 
class passage on any passenger train on their respective roads, by any person pre- 
senting said mileage books, without limitation to individuals. 

By order of the Commission. 

L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



CIRCULAR Ko. 85. 

Raleigh, N. C, March 80. 1898. 

The following is adopted by the Railroad Commission, to take effect at once, and 
to be added to the rules governing the transportation of passengers already adopted 
by the Commission: 

Rule No. 18. 

It shall be the duty of the Pullman Car Company, at all stations, on the stopping 
of trains, to have the doors of their cars open for the reception of passengers and 
require the porter to have a step ready for the convenience of passengers desiring 
to enter. 

By order of the Commission. 

L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



CIRCULAR No. 86.. 

Raleigh. N. C, March 31, 1898. 

Circular No. 80 fixing a schedule of fares for the transportation of passengers is 
rescinded. 

By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown, Clerk. 



COMPLAINTS AND DECISIONS. 151 

CIRCULAR No. 87. 
(amending circular no. 78.) 

Raleigh, N. C. April 21, 1898. 

Circular No. 78 is amended to read as follows: From and after the first day of 
May, 1898, the maximum freight rates on fertilizers on all railroads in this State 
will be as follows : 

Car-Load Fifteen Tons Minimum. Per Ton. 

5 miles and under $0. 60 per ton. 

10 miles and over 80 per ton. 

15 miles and over 10. .. 1.00 per ton. 

20 miles and over 15 1.10 per ton, 

30 miles and over 20 ■ 1 . 20 per ton. • 

40 miles and over 30 . 1.30 per ton. 

50 miles and over 40 1. 40 per ton. 

60 miles and over 50. 1. 50 per ton. 

70 miles and over 60 1. 60 per ton. 

80 miles and over 70 1. 70 per ton. 

90 miles and over 80 1. 80 per ton. 

100 miles and over 90 1 . 90 per ton. 

110 miles and over 100. ._ 2. 00 per ton. 

120 miles and over 110 2. 10 per ton. 

130 miles and over 120 _ _ _ . -* . 2. 20 per ton. 

140 miles and over 130 . " 2. 30 per ton. 

150 miles and over 140 2. 40 per ton. 

160 miles and over 150 . . 2. 50 per ton. 

170 miles and over 160 -_ _ - . . 2. 55 per ton. 

180 miles and over 170 2. 60 per ton. 

190 miles and over 180 2. 65 per ton. 

200 miles ond over 190 2. 70 per ton. 

210 miles and over 200 2. 75 per ton. 

220 miles and over 210 . 2. 80 per tcm. 

230 miles and over 220 2.85 per ton. 

240 miles and over 230 2.90 per ton. 

250 miles and over 240 . : . . 2. 95 per ton, 

260 miles and over 250_ _ . 3. 00 per ton. 

270 miles and over 260 3. 05 per ton . 

On less than car-load shipments, rates may be made twenty per cent, higher than 
^above. The joint rates on two or more roads, not under the Same management or 
control, shall b(^ made on the basis of the sum of the locals of each road, less twenty 
per cent. 

The following roads are excepted from the provisions of this circular : Cheraw 
and Darlington. Wilmington, New Bern and Norfolk, and the present tariff in 
effect on these roads is continued. Wilmington, Columbia and Augusta may add 
ten per cent. North Carolina Midland, Northwestern North Carolina. Winston to 
Wilkesboro, State University, Stat^sville and Western, Western North Carolina, 
Asheville to Murphy, and Yadkin Railroad will continue present rate in effect. 



152 BOARD OF RAILROAD COMMISSIONERS. 

The Carolina Central Railroad shall apply the rate now in effect on the Cape Fear 
and Yadkin Valley Railroad. The present rate in effect on the Durham and North- 
ern Railroad is continued. Raleigh and Augusta Railroad may add fifteen per cent, 
to the Commissioners' standard rate. The present rates in effect on the following 
roads are continued : 

Atlantic and North Carolina, Aberdeen and Rock Fish, Atlantic and Danville, 
Cape Fear and Yadkin Valley, Carthage, Cashie and Chowan, Carolina and North- 
western, Caldwell and Northern, Danville, Mocksville and Southwestern, Raleigh 
and Western, Durham and Charlotte, Atlanta, Knoxville and Northern, Hen- 
dersonville and Brevard, Northampton and Hertford, Norfolk and Southern, Nor- 
folk and Western, Moore County, Ohio River and Charleston, Suffolk and Caro- 
lina and Warrenton. 

By order of the Commission. 

L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



CIRCULAR No. 88. 

Raleigh, N. C, June 8, 1898. 

Circular No. 84 fixing sale of mileage tickets is withdrawn. 
By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown, Clerk. 



CIRCULAR No. 89. 

Raleigh, N. C, June 13, 1898. 

On and after July 1, 1898, the Atlantic Coast Line System, the Southern Rail- 
way System, the Seaboard Air Line System, the Cape Fear and Yadkin Valley 
Railway and the Atlantic and North Carolina Railroad shall sell mileage books of 
1,000 miles at 2 1-2 cents per mile. 

To be sold under present conditions, except when purchased for families they shall 
be made good for actual members thereof, living with a part of said family; but the 
names of such members must be entered thereon by the member of the family at 
time purchased. All other mileage tickets to be good only for one individual, and 
not transferable. Unused portion of ticket or mileage book to be redeemed on pre- 
sentation to railroad company, if presented within twelve months from date of 
same. 

By order of the Commission. 

• L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



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COMPLAINTS AND DECISIONS. 159 



ORDER No. 92. 

Raleigh. N. C, July 13, 1898. 

Be it ordered that on and after the 13th day of July, 1898, the Western Union 
Telegraph Company shall charge for the transmission of any message one cent less 
than the rate heretofore fixed and approved by the Railroad Commission; Provided, 
the sender of the message has affixed the stamp required under Act of Congress. 

By order of the Commission. 

L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



ORDER No. 93. 

Raleigh, N. C. July 13, 1898. 

Whereas, Section 26 of the Railroad Commission Act prescribes a penalty of not 
less than $50.00 against any telegraph or telephone company doing business in this 
State for charging a higher rate for the transmission of any message than that fixed 
or approved by said Railroad Commission; and, Whereas, the Western Union Tele- 
graph Company has charged, and continues to charge, a higher rate than that fixed 
or approved by the Railroad Commission ; 

Resolved, That the Western Union Telegraph Company be, and is hereby notified 
to appear before the Railroad Commission on July 29th, 1898, and show cause, if 
any it can, why the penalty incurred for each and every charge since the first day 
of July, 1898, be not enforced. 

Resolved Further, That said Western Union Telegraph Company be, and is hereby 
required to produce before said Commission on said 29tli day of July, 1898, a sworn 
statement of the number of messages received at its various offices in the State 
since July 1, 1898, to date of hearing, wherever any amount has been paid to said 
company or any agent of said company. 

By order of the Commission. 

L. C. Caldwell. Chairman. 

H. C. Brown, Clerk. 



ORDER No. 95. 

Raleigh, N. C, July 18, 1898. 

Whereas, The Supreme Court of North Carolina has declared the issuing of free 
passes to certain persons illegal; and. Whereas, this Commission is charged in part 
with the enforcement of the law. 

Therefore, it is ordered that each of the railroad, steamboat, telegraph and tele- 
phone companies, doing business in this State, shall furnish to the said Commission, 



160 BOARD OF RAILROAD COMMISSIONERS. 

on or before August 15, 1898, a sworn list of the names of all persons or firms who 
now hold free passes or franks, as attorneys, agents or adjusters of claims against 
said companies, respectively. 

By order of the Commission. 

L. C. Caldwell, Chairman. 

H. C. Brown, Clerk. 



CIRCULAR No. 96. 

Raleigh, N. C, July 13, 1898. 

On and after August 1, 1898, tlie following changes in the Commissioners' classi- 
fications will be in effect : 

Bacon in bags same as bacon in wood. 
Cotton piece goods, sixth class. 
Applicable to all railroads. 
By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown. Clerk. 



CIRCULAR No. 97. 

Raleigh, N. C, July 13, 1898. 

On and after August 1, 1898, the maximuin freight rate on molasses in barrels or 
hogsheads on all railroads in this State shall be as follows : 

Miles. Per 100 Lbs. 

5 miles $0. 04 

10 miles .05 

15 miles .05'/^ 

10 miles i .06 

25 miles . 06i^ 

30 miles .07 

35 miles .073^ 

40 miles .08 

45 miles . 08 >^ 

50 miles .09 

55 miles .09 

60 miles .10 

65 miles... , .10 

70 miles .11 

75 miles.. .11 

80 miles .12 

85 miles .12 



COMPLAINTS ANT) DECISIONS. 



161 



Miles. 
90 miles 




CIRCULAR No. 


97— Continued 


Per JOO Milt-s. 


100 miles ... 


14 


110 miles 


15 


120 miles 


16 


130 miles 


17 


140 miles 


18 


150 miles 


18 


160 miles 


19 


170 miles 


19 


180 miles 


20 


190 miles 


20 


200 miles 


20 


210 miles 


•>,i 


220 miles 


21 


230 miles. 












21 


240 miles 












20 


250 miles 


00 


260 miles _ . - . - . - . 


22 


270 miles 


20 


By order of the Commission. 
H. C. Brown, Clerk. 


L. 


C. 


Caldwell. 


Chairman 



CIRCULAR No. 99. 
(amending circular no. 97.) 

Raleigh, N. C, August 2, 1898. 
On and after August 10, 1898, Circular No. 97 shall be applicable to all roads other 
than those heretofore allowed percentage above Commissioners' Standard Tariff. 
The roads heretofore allowed percentage above Standard Tariff shall, in applying 
this tariff, be allowed same percentage. 
By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown, Clerk. 



CIRCULAR No. 100. 

(AMENDING CIRCULAR NO. 96.) 

Raleigh, N. C, August 1, 1898. 
See Circular No. 96—" Cotton Piece Goods, Sixth Class," is stricken out, and as 



thus amended Circular No. 96 is effective. 
By order of the Commission. 

H. C. Brown, Clerk. 

1 11 



L. C. Caldwell, Chairman. 



162 BOARD OF RAIT.ROAD COMMISSIONERS. 

CIRCULAR No. 101. 

(CHANGES IN COMMISSIONERS' CLASSIFICATION.) 

Raleigh. N. C August 30, 1898. 

Unginned cotton, packed in bags, 2,000 pounds and over, L. C. L., sixth class. 
Unginned cotton, packed in bags or loose. C. L., minimum weight 10.000 pounds. 
Class " A." shippers to load and unload. 
By CQ'der of the Board. 

L. C. Caldwell. Chairman. 
H. C. Brown. Clerk. 



• CIRCULAR No. 102. 

(amending exception sheet to classification, SEPTEMBER 15, 1898.) 

Raleigh. N. C, October 1, 1898. 

Cotton seed hulls, pressed in bales or sacks, L. C. L., 25 per cent, higher than C. L. 

Effective at once. 

By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown, Clerk. 



CIRCULAR No. 103. 



Raleigh, N. C, October 1, 1898. 

Circular No. 101. changing classification on unginned cotton is withdrawn. 
By order of the Commission. 

L. C. Caldwell, Chairman. 
H. C. Brown, Clerk. 



COMPLAINTS AND DECISIONS. 163 

BEFORE THE NORTH CAROLINA RAILROAD COMMISSION. 

DANIEL L. RUSSELL, GOVERNOR OF NORTH CAROLINA, 

vs. 
NORTH CAROLINA RAILROAD COMPANY AND THE SOUTHERN 
RAILWAY COMPANY, ITS LESSEE. 

Complahit for the Reduction of Passenger Rates. 

To the Honorable Beard cf Railroad Commissioners of North Carohna: 

Having been retained by the Governor of North Carohna to represent the 
people of this State of North Carolina in this behalf, we present this complaint, 
and respectfully ask that your honorable Board will reduce the intrastate or 
domestic passenger rates on the North Carolina Railroad Company to 2} cents 
per mile for first-class and 2 cents per mile for second-class passengers. 

In view of the action of your Honorable Body, in refusing to make a general 
reduction of passenger rates operating en the three great railread systems cf 
the State, on account of the supposed meaning and application of the decision 
of tlie Supreme Court of the United States in what is kno\vn as the Nebraska 
case, it is deemed advisable that test cases should be at once presented to the 
courts, in order that it may be definitely determined to what extent your Hon- 
orable Board still has the right to regulate fares. It is suggested that the efTect 
of tiie Nebraska decision has been misconceived, and that it does not prevent 
this Commission from reducing the passenger rates upon certain of the rail 
roads in the State. 

We are advised that the Nebraska decision does not interfere with the pro- 
posed action of this Commission. In this case the Railroad Commissioners of 
Nebraska undertook to reduce the freight rates of certain railroads in that State 
so low that, instead of receiviiig a fair compensation for the services rendered 
by them, they would have operated said raih-oads at a positive loss. 

The case settles several i)oints: 

1. A railroad corporation is a person within the meaning of the fourteenth 
anien<hnent, declaring that no State shall deprive any person of property with 
out due process of law % nor deny to any person within its jurisdiction the equal 
protection of the laws. 

2. A State enactment, or regulations made under the authority of a State 
enactment, establishing rates for the transportation of persons or property by 
railroads, that wdll not admit of the carriei earning such compensation p.s, 
under all the circumstances, is just to it and the public, w^ould deprive such 
carrier of its property without due process of law and deny to it the due protee 
tion of the law^s, and would therefore be repugnant to the fourteenth amend 
ment of the Constitution of the United States. 

3. While rates for the transportation of persons and property within the 
limits of a State are primarily for its determination, the question whether they 
are so unreasonably low as to deprive the carrier of its property without such 
compensation as the Constitution secures, and therefore without due process of 
law, can not be so conclusively determined by the Legislature of the State or 
by regulations adopted under its authority, that the matter may not beconie 
the subject of judicial inquiry 



ItM BOARD OF RAILROAD COMMISSIONERS. 

4. That a redaction of local freig-ht rates so low as to prevent the company 
from receiving any compensation, is unconstitutional. 

5. That the reasonableness or unreasonableness of rates prescribed by a State 
for transportation of persons and property, wholly within its limits, must be 
determined without reference to the interstate business done by the carrier, or 
to the profit derived from it. And that the State can not reduce the profits 
from the domestic business to nothing, because tlie company is making a fair 
return on its interstate traffic. 

6. That a railroad corporation is not entitled to exact such charges for trans- 
portation as will enable it at all times to meet operating expenses, pay interest 
on its obligations and declare a dividend to stockholders; but the rates must be 
fixed with reference to the fair value of the property used for the public, or the 
fair value of the service rendered. 

There is one question which was not presented to or passed upon by the Sii 
preme Court in this case. This question is still opeh, viz: What proportion of 
the value of the property of a railroad within a State shall be considered as en- 
titled to earn a reasonable percentage of profit on domestic and what propor- 
tion on interstate business? 

While it is admitted that a railroad company whose property is used in both 
domestic and interstate conunercf is entitled to earn, in respect to the whole of 
its business a reasonable percentage of profit, must not that percentage of profit 
be apportioned so that a certain part of it shall be considered as derived from 
domestic and the balance from interstate business' Then the question arises. 
By what rale or upon what basis shall this apportionment be made ? 

Suppose that one-third the volume of a railroad company's freight and pas- 
senger business is domestic and two thirds foreign or interstate. That six per 
cent upon the entire jjroperty of the company is a fair percentage of profit for 
it to receive for its entire operations, and that, of this, two per cent is made 
from domestic and four per cent from foreign business. If the company is en- 
titled to receive six per cent upon the value of its entire property on account of 
domestic business and six per cent on account of foreign business on the same 
value it will receive twelve })er cent in the aggregate, which is excessive. If it 
is receiving twelve per cent on the whole of its business, one-third of vrhich is 
derived from domestic traffic, there is nothing in the Nebraska decision to pre- 
vent the State from reducing the fares or freights, or both, to such a, rate as 
will enable the compai.iy to make but two per cent on the total value of its 
property out of its domestic business, or, what is equivalent thereto, six per 
cent on one-third of such total value. If the volume of domestic business is one- 
fourth of the whole, then the^'ompany would be permitted to earn a profit on 
such business of six per cent on one-fourth of the total value of its property in 
North C'arolina, or one and one-half per cent on the total value thereof. The 
railroads were built to be used in both domestic and interstate business; they 
shall be permitted to earn a fair profit upon the proportion of their investment 
which may be deemed appropriated to that class of business, a total profit be- 
ing limited to a just per centum of the total investment. And such ])roportion 
of the investment of its capital or of the value of its property, is to be deemed 
appropriated to domestic business, as the volume of such business bears to the 
whole business of the company. To put it in another way: If a railroad com- 
pany is earning a profit on all of its business of twelve per cent upon the total 
value of its property, one- third of ^rhieh is derived from domestic and Iavo- 



COMPLAINTS AND DECISIONS. lf)5 

thirds from foreign business, and, if six per cent is deemed a fair profit for the 
company to be permitted to make on all of its business, without question, the 
Railroad Commissioners would have the power to reduce the domestic or local 
freights or fares, one or both, to such a limit as would permit the company to 
receive but two per cent on the total value of the property, inas-much as two 
per cent on the value of the i)roperty would, under the circumstances be con- 
sidered a reasonable i)rolit upon such business. 

Differently construed, the Nebraska decision would absolutely destroy on 
every case that most salutary power of the Commission — the power to regulate 
the freights and fares of railroad companies -for the protection of the public. 
Construed in this manner, the decision does not prevent the Railroad Commis 
sioners from reducing the fares on some of the railroads in the State. 

Moreover, it will be observed that the Nebraska decision does not decide that 
a railroad must be permitted to make a certain percentage of profit out of every 
class of its domestic business, as^ for example, a reasonable percentage of profit 
out of its domestic passengei* business: a reasonable percentage of profit out of 
its domestic express business; a reasonable percentage of i^rofit out of its mail 
service, and a reasonable percentage of profit out of its domestic freight busi 
ness. It would be beyond the power of the CommissiDn, or the Court, to inter- 
fere with the internal management and adjustment of these several matters. 
They will simply hold that from its domestic business of all kinds, in the aggre- 
gate, the company shall not be prevented from receiving a reasonable compensa- 
tion for such service. 

But whether these views upon the legal questions ai'e correct or not, it is all 
important to the people of North Carolina that the Courts should have an op- 
portunity to pass upon them. This can not be done until a case is presented. 
But no case can be presented until the Railroad Commission shall undertake, 
in one or more instances, to fix the fares or freights of a railroad company in 
the State. No irreparable damage will be done to the companies to be selected, 
because the rates will not go into effect until the courts shall have investigated 
and properly decided all questions involved. 

What railroads should be selected for the test cases V 

1. They should be situated entirely within the State.. 

2. They should be located in the most populous and productive counties of 
the State, enjoying the largest domestic or local travel. 

8. They should be tho.se having the largest income in proportion to their 
value. 

The North Carolina Railroad Company meets all of these requirements, and 
presents a favorable subject for one of the test cases. 

According to its reports of 1897, this company, with an assessed val- 
uation of - - - - - §3,117,288.00 

(Which the company claimed was excessive) received gross earnings 

from operation for 1896—97, ..... 1.592,217.93 

Deduct operating expenses, ■ - - - - 1,148,443.59 



Income from operation amounted to - - - 448,445.34 

Deduct taxes, - - - - - - 24,820.16 



And we have remaining a net income or profit from operating ex 
penses of .-....§ 418,625.18 



166 BOARD OF RAILROAD COMMISSIONERS. 

This is .1345 per cent on the assessed valuation of the property. 

In the absence of more satisfactory information, we will assume that this sum 
was derived from passenger and other receipts, in the proportion which such 
receipts bear to each other, according- to the company's reports, as appears in 
the seventh annual report of Railroad Commissioners for 1897, at page 251. 

The total passenger revenue was ... - |480,991.12 

(See Railroad Commission report for 1897, p. 251.) 
The total of other earnings was ----- 1,111,226.81 

Making a grand total of -.--.- 1,592.217.98 
Observing this proportion, the profits from passenger service proper 

in North Carolina, including domestic and interstate, were 126,432.60 

And the "profits for other services" were - 292,192.58 



Total . - . . - . . 418,625.18 

In the absence of iiiore satisfactory information, it is fair to as- 
sume that the domestic and interstate passenger receipts of the 
North Carolina Railroad, which together amounted to 1480,991.12 
(see Railroad Commission Report for 1897, p. 251), is divided 
in the same proportion as that reported by Mr. Samuel Spencer 
on page 15 of his affidavit of January 28, 1898. There the local or 
domestic earnings of a number of railroads of the Southern 
Railway Company are set down as amounting to - 405,952.74 

And the total of local or interstate earnings - - 994,459.58 

The domestic passenger receipts of the North Carolina Railroad were thus: 
ilff Ml U of §480,991. 12, or $196,330.00. 

A reduction of fares from three and one-quarter to two and one-half cents 
first-class, and from two and three-quarters to two cents second-class, is an aver- 
age reduction of about twenty three jjer cent, and such reduction affects only 
the local or domestic passenger fares. 

Twenty-three per cent of the domestic passenger receipts — to wit, !$196,330 

Is ....-.--- 44.155 

The proposed reduction of passenger rates. 

The income from operation, as reported by the railroad company to the Com 
mission, is -$418,525.18. 

In the absence of more satisfactory information, it is fair to presume that this 
income is derived from interstate and domestic receipts in the same proportion 
as the passenger business is divided, as reported by Mr. Samuel Spencer, on 
page 15 of his affidavit of January 28, 1898 — that is to say: 

The part of the net income derived from domestic business is 
imilf II of -.-..-- $418,625.18 

Or, - - - 170,871.50 

From which subtract the reduction caused by the proposed change 

of passenger rates, 44,155.00 



And we have - 126,716.50 

As profit on the domestic passenger and freight business. 

Now. if the entire property of the company be valued, after the proposed re- 
duction of passenger rates, at the amount for which it was assessed for taxation. 



CO.M PLAINTS AND DECISIONS. 167 

$3,117,238, that portion of this sum which, for the purposes of this calculation, 
is to be deemed as appropriated to domestic business is, according to the ratio 
between domestic and interstate passenger receipts, set forth in Mr. Spencer's 
said report, as above, |^;;| m U of $3,117,233, or $1,272,373. The net profit from 
domestic passenger and freight business, after deducting the $44,155 caused by 
the proposed reduction of passenger rates, is $126,716.50, which is a profit of over 
ten per cent on the $1,272,373 so appropriated to domestic business. 

If the property be valued at the sum of $4,000,000, which is the amount of its 
capital stock, instead of $3,177,233, the proportion of said $4,000,000 to be appro 
priated to domestic business for the purj^oses of this calculation, reached as. 
above, would be $1,632,319, and a profit on domestic business of $126,716.50 
would be a percentage of over seven and three-quarters per cent on $1,632,319. 

When United States four per cent bonds are worth 120, North Carolina four 
per cent bonds 102, City of Raleigh five per cent bonds 107 ; Raleigh and Gaston 
live per cent bonds 105, and N. Y. Central and Hudson River stock, which pays 
four per cent per annum, 109, and the stock of the North Carolina Railroad 
';)]iipany, which pays a dividend of six and a half per cent, having a market 
value of above 180, thus making it a five per cent investment, it would seem that 
five per cent on the value of a railroad company's property is a reasonable in- 
come for it to make, and that it can not complain of a reduction of the passenger 
tares which still permits such profit to be received. 

It is claimed by the railroad companies that the expense of domestic business 
is greater in proportion than the expenses incident to interstate business. The 
difference, as estimated by one of the most reliable witnes-ses in the Nebrasl^a 
case, is about ten per cent. But suppose it is as much as twenty per cent. If 
the expenses incident to domestic and foreign business were in the same propor- 
tion to each other as the receipts from domestic and foreign business are to 
each other, then, according to the report of the North Carolina Railroad Com- 
pany, the expenses incident to domestic business (freight and passenger), were 
about $183,000 for the year ending June 30, 1897. But, if such expenses are to 
be increased by twenty per cent thereof, such percentage would be $26,000. 
The local freights and fares are higher in North Carolina than the through 
freights and fares. It is supposed that the difference between the co^t of do- 
mestic service is somewhat offset by this difference in rate. But, if this be not 
BO, there is still a liberal margin left between the seven and three-quarters per 
cent profit, which the company will receive on its domestic freight and passen- 
ger business, in spite of the reduction of passenger fares, and a reasonable profit 
of five per cent to cover this difference in cost, such margin being two and 
three-quarters per cent of $1,632,319, or $43,818.00 

Besides, it must not be forgotten that the practical abolition of the free- pass 
system in North Carolina will necessarily add thousands of dollars to the reve- 
nue of the railroads. This and the income earned by the increase of travel fol 
lowing the reduction of rates, will more than make up for the loss thereby oc- 
casioned. 

It may be argued that the Southern Railway, having leased the North Caro- 
lina Railroad at an annual rental of six and a half per cent on its capital stock 
of four milions, and taxes, is entitled to a fair profit on its lease, and that the 
passenger fares can not be reduced so as to make such profit impossible. It is 
conceived, however, that the question of passenger fare reduction is to be solved 
without reference to the lease, just as if the railroad were being operated by 



168 BOARD OF RAILROAD COMMISSIONERS. 

the North Carolina Railroad Company, the owner, on its own account. If the 
Railroad Commission, acting in the interest of the people, have the right to re 
diice fares, when unreasonable profits are being made by a common carrier, 
such right can not be abridged or taken away by any action of the owner, 
either by way of lease or otherwise. If this were not so, a railroad company 
which is receiving twenty-five per cent on its capital stock, and apprehends a 
reduction by the Railroad Commission of its freights and fares, can lease its 
road to a third party for a rental of twenty- five per cent, and thus prevent a re 
duction of rates so long as the lease continues. We think tlie lessee, in such a 
case, would take tlie property with notice of the power of the Railroad Com 
mission at any time to reduce the freights and fares to such a point as to permit 
it to make only a reasonable profit. And so the SDuthern Railway Company 
took the lease with notice of the power of the North Carolina Railroad Com 
mission to reduce the passenger rates on domestic travel to such a point as tliat 
tlie company should make only a fair profit on that proportion of the actual 
value of the property, which, for the purposes of this calculation, should be 
deemed appropriated to domestic business. 

It is submitted that the reports which have been filed by the Southern Rail- 
way Company with the North Carolina Railroad Commissicn furnish data con 
cerning the North Carolina Railroad which fully justify the proposed reduc 
tion of passenger rates. There is nothing in the affidavit of Mr. Samuel Spen- 
cer, or the unsigned statement which has been filed with the Railroad Com- 
mission to overcome the prima facie case which their o\sn reports make out 
against them. 

Let us examine the affidavit of Mr. Spencer, on which the Southern Railway 
relied in its application to rescind the order making the reduction of rates in 
January last. This order applied to the following railroads of the Southern 
system, to- wit: The North Carolina Railroad, the Western North Carolina 
Railroad, the Atlantic, Tennessee and Ohio Railroad, the Piedmont Railroad, 
the Atlantic and Charlotte Air-Line, the Charlotte, Columbia and Augusta 
Railroad, and the Northwestern North Carolina Railroad. 

It is well known that the Southern Eailway Company owns or operates in 
North Carolina quite a laige mileage of railroads under various organizations. 
Some of them are reported to the Railroad Commission in detail, As to most 
of these, it is easy to see at a glance that they are either making but little 
money or are running behind. Quite a number of the roads operated by the 
Southern Railway Company are reported in connection with other roads in 
such a way that it is impossible to separate them from each other or to tell any- 
thing about them as distinct organizations. The Southern Railway Company, 
in attempting by the said affidavit to show cause why the fares over said rail 
roads should not be reduced, seems to have contented itself with generalities, 
failing to give the particulars as to each of the roads affected by its said order, 
upon which the Commission might act intelligently. But enough appears to 
make it evident that none of the roads of said system are enjoying the local 
passenger business of the North Carolina Railroad, and none of them ai-e so 
able to stand the reduction of the local rates as this road. 

Mr. Gpencer, in his affidavit, shows how unfortunate the Southern Railway 
Comyjany has been in North Carolina and in other States in acquiring and op 
crating a large number of roads, which are a source ot continual loss to the 
Company. He shows that the railroads composing his system, as a whole, are 



COMPLAINTS AND DECISIONS. ' lf)1> 

making less on passenger and freight business than the average i-ailroads in the 
United States, and he argues from these premises that the North CaroUna Rail 
road, which is making the net income of $418,525.18 is unable to stand the in 
considerable reduction of three-fourths of a cent per mile on its domestic pas 
senger rates. In his argument and estimates he seems to include all the rail 
roads operated by the Soutliern Railway Company in North Carolina. Among 
them : 

The Asheville and S^iartanburg Railroad with a ca|)itaJ stock of -SI, 050, 000, 
and a bonded indebtedness of $1,000,000, making a total of 82,050,000, which 
reports an income on domestic and interstate business of only $89,863.32. 

The High Point, Randleman, Ashboro and Southern Railroad Company, 
with a capital stock of $250,000. and a bonded indebtedness of $402,000— a total 
of $652,000— which reports an actual deficit on its operation for 1897 of $28,059.03. 

The North Carolina Midland Railroad, with a capital stock of $650,000, and 
bonded indebtedness of $390,000, making a total of $1,040,000, which reports an 
actual deficit on its operation for 1890—7 of $36,338.32. 

The State Cjiiversity Railroad, with a capital stock of $31,3;)0, which reports 
a deficit for 1896—7 of $1,584.65. 

The Yadkin Valley Railroad, with a capital stock of $025, OOi), and a mort- 
gaged indebtedness of $115,000. making a total of $1,310,000, which rei^orts a 
deficit for oi^eration for 1896-7 of $45,595.93. 

The other railroads operated by the Southern Railway Company in North 
Carolina were acquired by it in 1894. Among them are: The Charlotte, Colum 
bia and Augusta, the Western North Carolina Railroad, the Northwestern 
North Carolina Railroad, the Oxford and Henderson Railroad, the Oxford and 
Clarksvile Railroad, and others. They were properties which the Southern 
Railroad Company acquired chiefly at foreclosure sales, "the object,'' as Mr. 
Spencer says, " being to rehabilitate, financially and physically, properties w^hich 
had decayed in the hands of insolvents." See Mr. Spencer's affidavit, page 3. 

The only etfect of including these railroads in the results which Mr. Spencer 
shows forth, is to lower the avei-age rate of i)rofit on the passenger traffic, and 
make it appear that the North ( •arolina Railroad Company is in the same con- 
dition as the othei* railroads which are being operated by it at a constant and 
invariable loss. The fallacy of Mr. Spencer's argument seems to be, that he 
thinks he has the right to make up out of the earnings of the North Carolina 
Railroad what, by bad investment or bad management, he loses elsewhere. He 
shows, in his affidavit, that his Company, after paying fixed charges on all its 
properties, does not distribute as much as one per cent per annum among its 
preferred stockholders; but he fails to show why this should entitle him to col- 
lect from the citizens of North Carolina rates of freight and fare sufficient to 
make a thirteen per cent profit on the value of the North Carolina Railroad. 
He compares the railroad traffic in North Carolina generally with that of other 
sections of the country, and shows that more money is made elsewhere; but he 
fails to show how this lessens the princely income of the North Carolina Rail 
road. He shows that the gross earnings of the North Carolina Railroad have 
been of late years increased at the expense of the West Point Danville Line. 
He does not explain how this fact is at all germane to the question under con 
sideration. 

Mr. Spencer seems to think that the concession which his Company makes to 
the public "in the form of nuleage books, special excursion fares, ministers' 



170 BOARD OF RAILROAD COMMISSIONERS. 

rates, and other rates made below tariff, will encourage trade and travel," but 
Vi^hy should not the slight concession which the Railroad Commission is requested 
to grant, have the same tendency ? 

He argaes, that as the passenger movement in North Carolina increases, the 
rate will decrease, but may not the operation be reversed ? May not the reduc- 
tion in passenger fares cause a larger volume of travel in the populous country 
traversed by the North Carolina Railroad? And may not the loss from domes- 
tic fares be more than offset by the abolishment of free passes and the increase 
of travel ? Is not the experiment worth the trial ? Certainly the old rates can 
be restored if. after a fair trial, it shall be deemed advisable. 

The unsigned statement which has been filed with the Commission is not cal- 
culated to throw any light upon the subject of inquiry. It purports to show 
the income of the Southern Railway Company in North Carolina on all of 
its lines for interstate passengers, during the year ending- June 30, 1897, and the 
expenses of the operation chargeable against earnings, including taxes, by which 
a deficit of .$28,817.00 is figured out. There are two criticisms to be made of it. 
First, it is but an estimate. There are no means of accurately dividing the ex 
pense between freight and passenaer traffic. And, after this is done, it is quite 
as difficult to determine how much was spent in through passenger and how 
much in local or domestic passenger service. This arises from the fact that 
there are so many expenses which can not be kept sejvarate. Second, if the 
estimate were at all reliable, it would not assist in solving the question whether 
the North Carolina Railroad can stand a reduction of passenger rates, because 
it is idle to compare the condition of the North Carolina Railroad with that of 
other roads which are included in this estimate, and which are being oper 
ated at a loss. No one who has considered for a moment the immense net rev- 
enue received by the North Carolina Railroad can be made to believe that a 
fair proportion does not come from the tremendous local travel which daily fills 
its trains to overflowing. 

Respectfully subuiitted, 

(Signed) JOHN W. HINSDALE, 

C. A. COOK, 
W. C. DOUGLASS, 
Attorneys for the State of North Carolina. 

April 20, 1898. 

Col. A. B. Andrews, First Vice-President Southern Railway, Raleigh. 

Dear Sir: — I am directed by the Board of Railroad Commissioners to furnish 
you with copy of complaint by D. L. Russell, Governor of North Carolina, 
against the North Carolina Railroad Company and the Southern Railway, its 
lessee, asking that the rate of charges for the transportation of passengers over 
the- North Carolina Railroad be reduced, copy of complaint and petition here- 
with. 

I am further directed to serve notice on you to show cause before the Board 
of Railroad Commissioners, at Raleigh, N. C, on the 16th day of May, next, 
why the prayer of the petitioner should not be granted. You will take due 
notice thereof. 

Very respectfully, H. C. BROWN, Clerk. 

April 22, 1898. 

[Seal.] 



COMPLAINTS AND DECISIONS. iTl 



BEFORE THE NORTH CAROLINA RAILROAD COMMLSMION. 
D. L. RUSSELL, GOVERNOR OF NORTH CAROLINA, 

against 

NORTH CAROLINA RAILROAD COMPi^ NY AND SOUTHERN 

RAILWAY COMPANY, ITS LESSEE. 

ANSWER OF SOUTHERN RAILW\^Y COMPANY. 

The complaint entitled as above is an argument for a reduction of passenger 
fares now charged on the North CaroUna Raih-oad. These fares, among othei's. 
have recently been the subject matter of a thorough investigation and decision 
upon the part of your Honorable Commission. During that investigation the 
Southern Railway Company presented a statement, dated January 26, 1898, of 
facts and conditions surrounding the passenger traffic on its lines within the 
•tate of North Carolina, including the North Carolina Railroad, to which state- 
laent a copy cf which is hereto annexed marked Exhibit "A," and to the 
rgument then i^resented, special reference is now again made. Since the pre- 
; entation of that statement and the decision rendered by your honorable Com 
Miission sustaining the reasonableness of the rates of fare then and now charged 
l)y the Southern Railway Company on said lines in the State of North Carolin;., 
: icluding the North Carolina Railroad, the general conditions affecting passeii 
;er traffic on said lines have remained substantially unchanged. 

Until these conditions shall have materially changed, the question now 
: ouglit to be once more put at issue is res adjudicata in this tribunal. The 
burden is therefore upon the complainant to show that such a change has 
aken place as to warrant a reinvestigation of the issue at this time. We look 
ia vain to the complaint for such a showing of facts or conditions as to warrant 
; ny change in the decision recently made by this Honorable Commission. 

There are no allegations as to such material changes, but it is claimed as a 
basis for the complaint that as certain nice points of law as to the power an;l 
duties of Railroad Commissions remain undetermined by the highest judicial 
tribunals, your honorable Commission should reverse its previous decision with 
out any change in the facts or conditions on which it was based, in order that 
these points of law may be decided in respect to the issue already determined 
by you. 

While the Southern Railway Company is willing at all times to accept a fiiir 
judicial determination of any point affecting its obligations to the public, it re- 
spectfully submits to your Honorable Board that the issue now to be consid- 
ered is not the necessity for a determination by higher Courts of a nice point of 
law, but it is a question of fairness to the raihvay interests within the State of 
North Carolina, and of the material welfare and prosperity of the people of the 
State in the matter of their needs and convenience in respect to the best attain- 
able railway service. 

The argument of the complainant proceeds upon a series of assumptions, 
which it will be shown are almost entirely erroneous. 

These arguments, as we understand them, may be summarized thus : 

First. 
It is alleged : 

1. Southern Railway Company operating North Carolina Railroad is entitled 



172 BOARD OF RAILROAD COMMISSIONERS. 

to a reasonable profit only upon "the fair value of the property used by the 
public." 

2. The " fair value of the property used by the public,'' with respect to the 
ISTorth Carolina Ilailroad, is the assessed value thereof, i. e., $8,117,233; or else 
the par value of the capital stock of the North Carolina Kailroad Company, 
i. e.. $4,000,000. 

Therefore, ^Southern Railvvay (Jonipany, operating North Carolina Railroad, 
is entitled to a reasonable profit upon 33,117,233, but not in any event upon 
more than $4,000,000. 

tSECOIVl). 

It is alleged : 

1. More than five per cent per annum upon "the fair vakie of the property 
used by the public '" is an unreasonable profit to Southei-n Railway Company, 
operating North Carolina Railroad. 

2. The net earnings from operation of the North Carolina Railroad for 1897 
were $418,625.18, which is 13.45 per cent of $3,117,233, which it is claimed is the 
fair value of the pro].^erty used by the public. 

Therefore, Southern Railway Company, operating the North Carolina Rail 
road, is making an unreasonable profit. 

Third. 

It is alleged : 

1. It is not unreasonal)e for the North Carolina Railroad Coiiuuission to re- 
duce intrastate or domestic fares on the North Carolina Railroad, if the reduced 
fares, taken in connection with the net returns from that road for all other in- 
trastate or domestic business will yield a reasonable return upon the fair value 
of the property used by the public in intrastate or domestic business. 

2 First class fares for two and one-half cents per mile and second class fares 
of two cents per mile would yield Southern Railway Company, operating the 
North Carolina Railroad, a net return of over ten per cent, or over seven and 
three quarters per cent per annum upon the fair value of the property used by 
the public in intrastate or domestic business, according as such fair value is 
estimated upon the assessed valuation of the property, or the par value of the 
capital stock of the North Carolina Railroad Company. 

Therefore, it is not unreasonable for the North Carolina Railroad Commission 
to reduce intrastate or domestic fares on the North Carolina Railroad, from 
three and one-quarter to two and one-half cents per mile first-class; from two 
and three quarters to two cents per mile second class. 

It wdli now be shown that the essential premises upon which these arguments 
are based are erroneous assumptions, and that the conclusions deduced there- 
from are not justified. 

1 

THE VALUE AT WHICH RAILROAD PROPERTY IS ASSESSED FOR 

TAXATION IS NOT THE REAL VxiLUE OF THE PROPERTY. 

It will be noted that the chief assumption of the argument of the complain 
ant is that a railroad company is entitled to earn a reasonable return only upon 
the value of its property as assessed for taxation— that is to say, that the deter- 
mination of what is a reasonable rate is a simple mathematical deduction when 
once the tax assessor has done his work. 



COMPLAINTS AND DECISIONS. 173 

Your Honorable Commission knows that this is untrue; and the counsel for 
the complainant themselves recogni/e that their theory is not conclusive, for 
their analysis of the Nebraska decision shows that in their opinion the Supreme 
Court has established the theory that 

"rates must be fixed with reference to the fair value of the property used 
" for the public, or the fair value of the services rendered "' 
And yet, in the body of their argument, no allowance whatever is n;ade for the 
fair value of the service rendered. 

In the Nebraska case, the Court defines the method of ascertaining the fair 
value of the property being- used by the railroad company for the convenience 
of the pubiic, as follows: 

"the original cost of construction, the amount expended in permanent 
"improvements, the amount and market value of its bonds and stock, the 
"present as compared with the original cost of construction, the probable 
" earning capacity of the property under the particular rates prescribed by 
" the statute, and the sum required to meet operating expenses, are all mat- 
"ters for consideration.*' — Smyth v. Auieg, 169 U. S., 466. 
There is nothing said here as to the value of the property as assessed for tax- 
ation. 

It can noi be urged that an assessment of the value of the property for taxa- 
tion is an assessment of the real value thereof, even if the tax assessors take into 
consideration the same elements^in determining the taxable value of a railroad 
that the courts must take into consideration in determining the fair value 
thereof, as a basis of rates. No tax assessor ever lawfully reported the full 
value of property as a basis for taxation. 

The valuation of property for ^taxation is a valuation made in conji)arison 
with that of all other property to be similarly and simultaneously taxed. The 
assessed value, therefore, may be too high and still be below the real value of 
the property. 

The assessed valuation of i)roperty can never be safely taken as a standai-d of 
values for other purposes. 

It was said by Clark, J., in the United States Circuit Court: 

" It is a matter of familiar and common knowledge with every citizen of 
" the State that the ordinary iorms of real and personal property are as- 
" sessed for general laxation at a percentage ranging from fifty to &eventy- 
" five per cent of actual value. This is a general system. This has been 
"the practice acquiesced in by the Legislature and Executive departments 
"of the government fronr an early day in the State's history: with full 
"knowledge of this method of assessment, the Legislatures of the State 
"have recognized the custom, and, in the exercise of the taxing power, 
" the varying demands of the State from time to time for revenue have been 
"met by legislation directed not to a higher rate in assessment, but to a 
" variation in the rate of levy. This is a long, well understood and well- 
" settled usage." — The Railroad and Telephone Com})anies v. Board of 
Equalizers. 85 Fed. Rep., 302. 
As the assessed value of property is from fifty to seventy five per cent of its 
real value, the fallacy of the principal assumption upon which the computa- 
tions in the complaint are based is at once apparent. 



174 BOARD OF KAILROAD COMMISSIONERS. 

II. 

THE PAR VALUE OF THE CAPHAL STOCK OF THE ]NORTH CARO- 
LINA RAILROAD COMPANY IS NOT THE 'FAIR VALUE" OF 
THE NORTH CAROLINA RAILROAD. 

It is equally fallacious to base the percentage of " net profit " which the com 
plainant would allow Southern Railway Company for its operation of the North 
Carolina Railroad, upon a valuation thereof at 14, 000, 000, which is the par value 
of the stock or the North Carolina Railroad Comj)any. 

In the Nebraska case the Court specifically negatived this assumption, 
saying: 

" The apparent value of the property and franchises used by the corpora- 
" tion, as represented by its stock, bonds and obligations, is not alone to be 
" considered when determining the rates that may be reasonably charged." 

But even were this to be the basis, the par value of the stock should not be 
considered, but rather the real value thereof, and it appears from the com 
plaint that this stock is now worth 130 (and this may well be so of a stock that 
now receives six and one half per cent per annum and in a few years will re 
ceive seven per cent for nearly one hundred years), so that the stock valuation 
of the North Carolina Railroad, upon the complainant's own figures, is abou| 
15,200,000. 

But this proceeds upon the theory that the value of the North Carolina Rail- 
road to the stockholders thereof is the fair value of the investment of the 
Southern Railway Company in the property, which should here be considered. 
It is necessary, therefore, for clear understanding that the distinction of what 
is the investment of the Southern Railway Company in the property should be 
emphasized. 

The revenue to be affected by any action of this Commission is the le venue 
of Southern Railway Company, not that of the North Carolina Railrcac 
Company. The fares now charged on the North Carolina Railroad are chargec 
by Southern Railway Company, and not by North CaroHna Railroad Com 
pany. Therefore, the value of the North Carolina Railroad to the stock 
holders of the North Carolina Railroad Company, which is measured by their 
dividends, and which dividends are measured by the rental paid by Southern 
Railway Company, and not by the revenue derived from operation of the prop 
erty or from the rates charged thereon, is not the value upon which alone the 
charges of Southern Railway Comjiany should be regulated. What should 
be considered here is the fair value of the investment of the Southern Railway 
Company in, and in connection with, the property and the service rendered by 
the Southern Railway Company to the public. In such consideration the ele 
ments which must be treated under the reasoning of the Nebraska decision are : 

(a) The amount paid in rental bj^ Southern Railway Coujpany. 

(b) The amounts invested by Southern Railway Company and its pr edeces 
sor, to whose rights it has succeeded, in permanent improvements to the prop 
erty during the full term of the leases, old and new — that is to say, since 1871. 

(c) The amounts expended by the Southern Railway Company and its prede 
cessor, in connection with the property within or without the State, such as 
the establishment of terminals and other facilities necessary for securing traffic 
to be moved over the North Carolina Railroad. 

It is, of course, for judicial determination whether these permanent improve- 



COMPI.AINTS AND DECISIONS. l75 

ments have been economically and prudently made, and to what extent they are 
to be considered and to be capitalized in connection with the rental, in deter- 
mining the fair value of the investment. 

Southern Railway Company invites such an investigation, but it is suflficient 
to point out here that all these elements must be considered, and that the in 
vestment of Southern Railway Company in the property is something very 
different from the investment of North Carolina Company therein. This is nec- 
essary, because the complainant assumes throughout his argument that they 
are the same. 

111. 

THE RELATION OF THE 'CITIZENS OF NORTH CAROLINA ' TO 
THE NET EARNINGS OF THE NORTH Cx\ROLINA RAILROxVD. 

The complaint sets forth the fact that the earnings of the North Carolina 
Railroad for the year ended June 80, 1897. as repoited 1o the North Caroh'na 
Railroad Commission by Southern Railway Company, were: 
Gross earnings for passenger service, . - - . §480,991.12 

Gross earnings from other sources, .... 1,111,226.81 

Total gross earnings, - - - - 1,592.217.93 

Deduct operating expenses and taxes, - - - 1,173,592.75 

Leaving as net earnings, ----- 418,625.18 

Upon ihis siateuient of net earnings, amounting to $418,625.18, being 13.45 per 
cent of the taxable value of the property, the complaint bases the following- 
statement, referring to the paper filed by the President of the Southern Rail 
way Company, under date of January 26, 1897: 

'• He shows in his affidavit that his company, after paying fixed charges 

"on all its properties, does not distribute as much as one per cent per an- 

"num among its preferred stockholders, but he fails to show why this 

"should entitle him to collect from the citizens of North Carolina rates of 

-" freight and fare sufficient to make a thirteen per cent profit on the value 

" of the North Carolina Railroad," 

thereby suggesting as a fact that the citizens of North Carolina contribute the 

entire net earnings of the North Carolina Railroad as reported. 

In disproof of this most unwarranted suggestion, your honorable Commission 
is referred to the statement made by Southern Railway Company, dated Janu- 
ary 26, 1898, and from which the complaint quotes largely. 

Of the $418,625.18 show^n as net earnings, only §89,473.48 was derived from 
intrastate traffic, and it may be noted as against this that the State of North 
Carolina, as a stockholder, derives an annual income from the property of 
§195,000. 

The remainder of the §418,625.18 net earnings of the North Carolina Railroad, 
as reported above, after deducting the sum of §89,478.43, was largely derived 
from traffic which would have moved over other Southern Railway lines if the 
North Carolina Railroad had not been leased to the Southern Railway Com- 
pany. This was interstate business which the Southern Railway Company, 
with its extensive system of railroads throughout the Southern States, and 
machinery for soliciting and collectiilg freight at all the large business centers. 
North and South, was able to collect and forward. It was largely business 



176 BOARD OF RAILROA.D COMMISSIONERS. 

moving from Eastern or Western or extreme Southern cities, which, in no event, 
could have passed over the North CaroUna Raih'oad, had it not been so routed 
by Southern Railway Company. Had the North Carohna Raih^oad been op 
erated independently, it could not have obtained even a sliare of the traffic 
which yielded to Southern Railway Company more than one half of the sum 
shown as net earnings of ihe North Carolina Railroad, nor' could any of the 
other cDiniections of the North Carolina Railroad have controlled and routed 
this traffic by way of tlie North Carolina Railroad. 

The net earnings of the North Carolina Railroad as shown are, therefore, de- 
rived only in small measure from payments made by the citizens of North Caro- 
lina. They chiefly come from traffic supplied by the Southern Railway Com- 
pany from sources entirely beyond the reach of any other ])os.sible owner or 
lessee of the North Carolina Railroad. 

IV. 
OTHER ERRONEOUS ASSUMPTIONS IN THE COMPLAINT. 

One of the principal contentions of the complaint, as stated hereinbefore, is 
that, if the passenger fares were reduced as prayed. Southern Railway Com- 
pany would still be making a net profit from intrastate traffic of over ten per 
centum upon the fair value of the North Carolina Railroad. This ligure is 
reached by computations based upon a series of assumj^tions which we will 
now consider in detail. 

First Assumption.— It is assumed that the proportion of net passenger earn 
ings to net earnings from all sources is the proportion which gross passenger 
earnings bear to gross earnings from all sources. Upon this assumption it is 
computed that the " profits from passenger service " amounted to -5126,482.60. 

The fact is, that the expenses pertaining to the passenger service are larger 
in proportion to the gross earnings than are the expenses pertaining to freight 
and other service. I'he assumption and the deduction therefrom are, there 
fore, entirely erroneous and of no value. 

Second Assumption. — Having thus assumed to ascertain the " profits from 
passenger service,'' it is next assumed that the proportion of intrastate or do- 
mestic passenger earnings of certain Southern Railway lines in North Carolina 
to the gross passenger earnings of the same lines, as heretofore reported by 
Southern Railway Company, is the proportion which the intrastate or domestic 
earnings from the North Carolina Railroad bear to the gross earnings of the 
North Carolina Railroad. 

Upon this assumption it is coaiputed that: Oross intrastate or domestic pas 
senger earnings on North Carolina Railroad in 1896 — 7 were §196.380.00; while 
the fact is that such earnings, as carefully computed from the ticket reports, 
were $297,989.20. 

Third Assumption. — It is next assumed that the net earnings from all intra- 
state traffic, both passenger and freight, upon the North Carolina Railroad are 
that proportion of the total net earnings of that road (^$418,625. 18) which the 
reported intrastate passenger earnings upon certain of the lines of Southern 
Railway Company in North Carolina bear to the total passenger earnings of 
such lines. 

Upon this assumption it is computed that: Net intrastate or domestic earn 
ings from all sources on North Carolina Railroad in 1896 — 7 \n ere $170,871.50; 
while the fact is, that they were, as heretofore stated, $89,478.48. 



COMPLAINTS AND DECISIONS. 177 

The explanation of this wide divergence between the coniDutation of the com- 
plainant based upon assumptions, and the fact is found upon examination of 
the fallacious grounds upon which the complainant's grounds are based, viz: 

(a) That the relative proportions of interstate and intrastate earnings upon 
the North Cai-olina Railroad are the same as tliose upon the other Southern 
Railway lines in North Carolina. 

The complaint itself specifically repudiates this by arguing that it is idle to 
compare tlie North Carolina Railroad witli other railroads in North Carolina 
which do not earn its '* princely income " and handle its " immense local traffic 
which daily fills its trains to overflowing/" 

(b) That the intrastate freight business bears the same relation to the total 
freight business that the intrastate passenger business bears to the total pas- 
senger business. 

The facts are, that the intrastate freight earnings of the North Carolina Rail- 
road were nineteen per cent of the total freight earnings, v>'hile the intrastate 
passengei- earnings were sixty two per cent of the total passenger earnings. 

(c) That the intrastate business is handled at the same ratio of expenses to 
earnings as the through or interstate business. 

The complaint itself sets forth the evidence in the Nebraska case that the 
ratio of expenses to earnings in intrastate business is from ten to twenty per 
cent greater than in through business. 

As, therefore, none of these j:»remises is even approximately true, the compu 
tations based on the third assumption are, of course, valueless. 

The actual gross and net earnings from intrastate traffic on the North Caro 
lina Railroad are shown in detail in the statement hereinafter set forth. Such 
intrastate net earnings, before deducting any proportion of taxes, amounted to 
197,428.88 for the year 1896 — 7, an^. after deducting the proportion of taxes based 
upon the percentage of intrastate earnings to total earnings (such proportion of 
taxes amounting to .$7,949.90), the intrastate net earnings were -$89,473.48. The 
amount estimated in the complaint as the intrastate net earnings ($170,871.50) 
is. therefore, 881,898.07 in excess of the actual net earnings, and this fact a^one 
vitiates the entire argument of the comi)]aint respecting the relation of the sup- 
posed profits from the operation of intrastate traffic to the amount of intei-est 
upon the valuation of the property. 

Fourth Assumption. — Having assumed to ascertain by the second assump 
tion the amount of the gross intrastate or domestic passenger earnings on the 
North Carolina Railroad in the sum of $190,380, it is next estimated thai the 
proposed i-eduction of fares from three and one-quarter to two and one half 
cents per mile first-class, and from two and three-quarters to two cents per 
mile second class, is an average reduction of about twenty-three per cent, 
which yields as a result the sum of $44,155 as the total amount of the proposed 
reduction of passenger earnings. 

This percentage of proposed reductions is not accurate. Correctly stated it 
would be; On first-class fares, 28.08 per cent; on second class fares, 27.27 per 
cent; on an average, roughly speaking, of 25 per cent. 

It has been shown above that the actual intrastate passenger earnings from 
the North Carolina Railroad in 1896-7 amounted to $297,989.20. Twenty five 
per cent of this would be $74,497, or about $80,000 in excess of the estimate of 
the proposed reduction as made in the complaint. 

1 12 



178 BOARD OF RAILROAD COMMISSIONERS. 



V. 

IT IS NOT REASONABLE TO CONSIDER THE NORTH CAROLINA 
RAILROAD SEPARATELY FROM THE OTHER LINES IN NORTH 
CAROLINA OPERATED BY SOUTHERN RAILWAY COMPANY. 

The complaint acknowledges that there are certain roads in the Southern 
Railway system in North Carolina which could not bear any reduction of their 
revenue; but it proposes to reduce the revenue of Southern Railway Com- 
pany upon the North Carolina Railroad, because the traffic over that road is 
alleged to be heavy, and because therefore, it must be unlawfully profitable. 
This proposition is essentially unfair. The Southern Railway Company is 
doing for the State of North Carolina what only a great railroad company can 
do, viz: It is able to maintain weak and unprofitable branch lines and give the 
people dependent thereon for their connnunication with the rest of the world 
an efficient and safe train service. 

If these branch lines were separated from the large system and were operated 
independently, the result would be soon evident to the cost of the people who 
use them. The time was when the State itself, as well as the counties and 
towns, recognized this, and granted aid by way of subscription of bonds, with 
immunity from taxation and other privileges to railroad companies, to induce 
them to build and to enable them to maintain the lines so much desired. This 
aid is now withdrawn although the necessity for it still exists, for the roads in 
North Carolina are not yet all self sustaining. Lacking State aid, therefore, 
and lacking traffic which would make possible the continued safe and efficient 
operation of these weak branches, that modern development called the raih'oad 
system assumes the burdens and furnishes Vhat the State and its citizens 
could not otherwise enjoy. This aggregation of small railroads into one great 
whole, increases the efficiency of each constituent part by reducing the expenses 
of operation of all. 

The only aid which such a system asks from the State, which once was so 
lavish in aid, is a just conservation of its rights in adjusting rates tc the circum 
stances and conditions of the traffic as a whole. With this aid only, and by 
taking into one account the profitable and unprofitable lines, all can be satis- 
factorily operated. This is the method of all large business enterprises, and it 
is fair to all concerned. The people of North Carolina gain by it good service 
over the entire system, where otherwise they would be compelled to accept in- 
ferior if not unsafe service over many parts of it. 

More than this, the complaint analyses one of the points established by the 
Nebraska decision as follows : 

" That the reasonableness or unreasonableness of rates prescribed by a 

" State for transportation of persons and property, wholly within its limits, 

"must be determined \^ithout reference to the interstate business done by 

" the carrier, or to the profits derived from it. And that the State can not 

"reduce the profits from domestic business to nothing because the com 

" pany is making a fair return on its interstate business." 

If a State is proscribed from reducing the profits on one class of business on 

the sole ground that the company is making a fair return on another class of 

its business, is it not equally true that a State is proscribed from reducing the 



COMPLAINTS AND DECISIONS. 179 

profits of a company from all its business within the State on the sole ground 
that it is making more from one part of its property than from the others? The 
test supplied by the Nebraska decision is that the State is limited to regulate 
the returns of a company from all its business and from all its investments 
within the limits of the State. 

And applying this to the Southern R^iilway Company we find that the North 
Carolina Railroad does not yield all the return, nor does it constitute the entire 
investment of Southern Railway Company in North Carolina. Southern 
Railway Company operates 1,123 miles of road in North Carolina, of which the 
North Carolina Railroad constitutes only about one-fifth. On all these 1,123 
miles of road the people of North Carolina deal with one management only. 
All the earnings cf such lines go into and are mingled in a connnon treasury, 
and all the expenses and obligations of these lines, including the rental paid for 
the North Carolina Railroad, are paid from a common fund. This being true, 
the observation of the old charter limits of the various lines is without signifi 
cance in detemining the reasonableness or unreasonableness of rates. The 
lines' are not operated as divisions based upon their charter limits. Train crews 
and management do not change when a through Southern Railway train 
passes, for instance, off the Piedmont Railroad upon the North Carolina, or off 
the North Carolina Railroad upon the Atlanta and Charlotte Air Line. The 
Southern Railway Comi)any is a homogeneous system. It is not a disjointed 
congeries of separate organizations, and it would be as unreasonable, therefore, 
to 1 educe rates upcm any one mile of road on the North Carolina Railroad as 
compared with another, as it is to make reductions in rates of fare upon any 
special portion of the Southern Railway system in North Carolina, without due 
rep-ard to the earnings of the whole. 

Again, it is held in the Nebraska case: 

" If it would be unreasonable to reduce the total earnings of these roads 
"twenty nine and one-half per cent, it is at least prima facie equally un- 
'■ reasonable to so reduce any single fractional part of such earnings.'' 

So, if it is unreasonable to reduce the total earnings of Southern Railway 
Company in North Carolina by reducing the rates on certain branch lines, it is 
equally unreasonable to reduce such total earnings by reducing the earnings 
from the North Carolina Railroad, which constitute a single fractional part of 
such total earnings. 

If the State of North Carolina wishes to treat the North Carolina Railroad as 
a sej^arate and independent concern, and without regard to the other Southern 
Railway properties in the State, it should follow out the logic of this theory. 
The State has tried the experiment of independent operation of this property. 
Ir knows by experience what is the stress of competition, and to what expense 
competing railroads are driven to get traflfic. And more than thi-^, it should 
know that Southern Railway Company is now routing over the North Caro- 
lina Railroad — and thereby swelling the apparent earnings of that property — a 
large volume of through business which is collected entirely outside of the 
State of North Carolina. This business is under the sole control of South 
ern Railway Company, and a large t>ortion of it has been by it arbitrarily 
diverted from the line by way of Danville and West Point, and could be by it 
again returned to that line, if it did not control North Carolina Railroad, 
thereby materially decreasing the amount now shown as the income of that 
property. 



180 BOARD OF RAILROAD COMMISSIONERS. 

This is the meaning of the figures and statements heretofore filed by South 
ern Railv ay Company with this Commission, and which the complainant does 
not consider germane to the question at issue, but to which reference is hereby 
again specifically made. 

VI. 

TRAFFIC WILL NOT INCREASE IN PROPORTION AS RATES ARE 

REDUCED. 

The complainant urges that the converse of the proposition maintained by 
Southern Railway Company that, as business increases rates will be reduced, 
is also true. This is as fallacicus as other assumptions in the complaint. 

It has been shown in the statement of the Southern Railw^ay Company to 
your honorable Connnission, dated January 26, 1898, pages 17 to 21. that the 
State of North Carolina has a sparse population in proportion to its area — 
namely, an average of only thirty three inhabitants to each square uiile of ter 
ritory — and that in proportion to its population the local passenger fares in 
that State are now as low or lower than those of any other cou'iuunity in the 
United States. 

It is a recognized fact that the efi'ect of a radical reduction of rates upon a 
railroad serving a population chiefly •gricuhur;d, and whose large towns are 
widely separated, wou:d not be to materially increase the relative number of 
passengers traveling and that, therefore, there would be substantially no com 
pensation to the Southern Railway Compa::y for a radical reduction in rates 
upon the North Carolina Railroad. Consequently, under tie existing condi- 
tions of population, the elTect of such reduction would be a loss oi twejity-five 
per cent in the gross intrastate passenger earnings of said road, involving a loss 
of about §74,000 in its net earnings from such intrastate traffic. 

The effect of such a reduction of rates :n a thickly-settled region might, 
under favorable conditions, ]-esult m a shifting of residence from urban to 
suburban localities, or in greater intercourse for connnercial })urposes between 
active business centers, and liiight thus produce increased net earnings to rail 
roads serving a large ])opulation. But in a sparsely settled region any perma- 
nent or considerable increase in local travel must result chiefly from gradual 
increase in population. With such increase in population, experience shows, 
passenger fares will. un(!oubtedly, be naturally and gradually reduced. This 
natural and gradiral reduction has been practically continuous in North Caro 
lina in the past, as set forth in the said statement of January 20, 1898 (pp. 21 
to 23), the reduction on the North Carolina Railroad having been from three 
and three quarters cents per mile, first class, and three and one-quarter cents 
per mile, second class, in 1887, to three and one-quarter and two and three- 
quarters cents, respectively, in 1898. 

VII. 

RATES ONC^E REDUCED CAN NEVER BE RESTORED. 

It is a mistake to urge, as a ground for reducing rates, as does the complaint, 
that the old rates could be restored after experiment, if the reduced rates are 
found to be unjust, in attempting to prophesy the effect of new rates the ex 
perience of railroad managers should be given weight, and the matter decided 



COMPLAINTS AND DECISIONS. 



181 



upon the merits and the evidence. Too much is involved to risk unjust and 
unreasonable loss to v(isted interests for the sake of a theoretical experiment. 
And no one with any practical railroad experience would suggest that rates 
once reduced can again be increased. The history of rates is a history of an in- 
cessant decrease. 

VIII. 



THE PROPOSED REDUCTION IS UNREASONABLE, BECAUSE IT 
WOULD RESULT IN COMPELLING SOUTHERN RAILWAY COM- 
PANY TO DO BUSINESS ON THE NORTH CAROLINA RAILROAD 
FOR LESS THAN A REASONABLE RETURN UPON THE FAIR 
VALUE OF ITS INVESTMENT. 

If the proposed reduction were put into effect it w^Guld result in confiscation 
of the property of Southern Railway Company without compensation and with 
out due process of law. 

The following statement demonstrates this: 

Statement of Ret^ulta of Iiifras-tate Traffic over the NortJi Carolina Railroad as 
oj)erate<l by Southern Railivaij Company for Year ended Jnne ^U), IS'.i} . 



Karnings— 

Passenger 

Freight 

Mail 

Express 

Miscellaneous 

Total 

Operating Expenses— 

Maintenance of way and structures- 
Maintenance of equipment 

Conducting transportation 

General expenses 

Total 



Surplus of earnings over operating expenses 

Total taxes 

Total rental 

Total taxes and rental 

Deficiency of Intrastate net earnings in meeting total taxes and rental. 



$24,820. 16 
[ 266,000.00 



$297,989.20 

179,397.36 

17, 162. 28 

11,173.07 

4,344.28 



510,066. 19 



71,824.48 

72, 938. 20 

245,294.29 

22,585.89 



412,642.86 



97,423.33 



290,820. t6 



193, 396. 83 



If, how^ever it be considered proper that the intrastate traffic should be 
charged with only a part of the taxes and rental based upon the proportion of 
intrastate earning-s to total earninj^^s, the results would be stated as follows : 



182 



BOARD OF RAILROAD COMMISSIONERS. 



Surplus of earnings over operating expenses as above 
Total taxes 



Intrastate proportion, based upon percentage of intrastate gross earn- 
ings to total earnings of road from all sources, 32.03 per cent 



Intrastate net earnings on that basis 
Total rental 



Intrastate proportion, based upon percentage of intrastate gross earn- 
ings to total earnings of the road from all sources, 32.03 per cent- 
Surplus, on that basis : 



$24, 820. 16 



266,000.00 



l97, 423- 33 



7, 949. 90 



89,473-43 



85,199.80 



4, 273. 63 



' If the first-class intrastate passenger rates should be reduced from three and 
one-quarter to two and one-half cents per mile, the percentage of reduction 
would be 23.08 per cent. 

And if the second-class intrastate rate should be reduced from two and three- 
quarters cents to two cents, the percentage of reduction would be 27.27 percent. 

Or, roughly speaking, an average reduction of say 25 per cent. 

Twenty five per cent of the actual intrastate passenger earnings for the year 
ended June 80, 1897 (§297,989.20), is $74,497. 

To paraphrase Mr. Justice Harlan's remarks in the Nebraska decision, where 
a reduction of twenty-nine and one half per cent of the intrastate receipts of the 
railroad companies was held to be prima facie unreasonable, ''What would any 
business man, engaged in any business of a private character, think of a com 
pulsory reduction of his receipts to the amount of twenty-five per cent ? " 

Further results produced by such proposed reduction in rates of fare, may be 
stated as follows : 

The surplus from opeiation of intrastate business, after deducting a portion 
of the total taxes and rental, ascertained upon the percentage of intrastate 
earnings to the total earnings of the road from all sources, as stated above, for 
the said year was .$4,273.68. If such reduction in rates had been in effect in said 
year, there would have been a reduction in intrastate passenger earnings of 
about twenty five per cent, or $74,497.80, which would have resulted in a defi- 
ciency in earnings from intrastate traffic in meeting its proportion of taxes and 
rental amounting to $70,228.67. 

The intrastate earnings shown in the above statement are the actual figures, 
compiled from original reports of the movement of traffic. 

The total expenses of operating the entire traffic, both interstate and intra- 
state, of the North Carolina Railroad for the year ended June 80, 1897, exclud 
ing taxes, amounted to 72.15 pei* cent of the entire gross earnings of that road. 

The operating expenses, exclusive of taxes, computed as chargeable to the 
strictly intrastate traffic amounted to 80.89 per cent of the gross intrastate earn- 
ings. The ratio of intrastate expenses to earnings was thus only about eight 
and three-quarters per cent in excess of the ratio of the total expenses of the 
road to the total earnings from all sources. 

It should here be noted that in the Nebraska case the lowest estimate of the 
expense ratio appertaining to local traffic was ten per cent in excess of the gen 
eral average expense ratio. The complaint recognizes a possible excess of 
twenty per cent in such expense ratio. 



COMPLAINTS AND DECISIONS. 1S?> 

CONCLU8ION. 
To .sum up; therefore, it has now been demonstrated: 

(1) That the real question here involved is as to whether or not passenger 
rates now charged on the North Carolina Railroad are reasonable or unreason- 
able. 

(2) That this question has been recently considered by this honorable Com- 
mission, and that the present. rates have been declared to be reasonable. 

(8) That there can be no new cause for a reinvestigation of the subject until a 
change has taken place in the circumstances and conditions surrounding traffic 
in North Carolina, and that the complaint shows no such new cause, the fact 
being that the conditions of traffic are substantially the same as those which 
controlled the previous decision of this honorable Connnission. 

(4) That what the complaint does show is not a true statement of fact, but 
an argument based upon a series of erroneous assumptions, the principal of 
which are the following: 

(a) It is assumed that in regulating the rates of Southern Railway Company 
this honorable Commission may base such regulation either upon the assessed 
value of the property of the North Carolina Railroad Company, or upon the 
par value of the capita' stock of the North Carolina Railroad Company, while 
the true basis is the fair value of the investment of the Southern Railway Com- 
pany in, and in connection with, the property, including its obligation to pay 
rent under the lease, and of the service performed by the Southern Railway 
Company for the public . 

(b) It is assumed that the sum cf $418,625.18, shown as ntt earnings from the 
North Carolina Railroad, was contributed by the "citizens of North Carolina."' 
while in fact only $89,473.48 of this sum represents net earnings made from in- 
trastate or domestic traffic, the remainder being derived from interstate busi- 
ness, to procure which Southern Railway Company has made large independ- 
ent investment s. 

(c) It is assumed that the net earnings from the North Carolina Railroad, as 
shown, represent "profit" to the Southern Railway Company, while in fact the 
Southern Railway Company is required to deduct from this sum charges for 
rental, taxes and interest, all of which should be considered in determining 
whether Southern Railway Company is making a fair return upon its investment. 

(5) That this honorable Commission should not attempt to regulate the pro- 
ceedings of Southern Railwav Company on the North Carolina Railroad alone 
and without reference to other Southern Railway 'ines in North Carolina, as 
the control of that property is only a fractional part of the entire investment of 
the Southern Railway Company in North Carolina. 

(6) That the reduction of passenger rates on the North Carolina Railroad, 
proposed by the complainant, which would involve an annual reduction in net 
earnings to the Southern Railway Company of about $74,000, and would result 
in compelling Southern Railway Company to perform the intrastate service on 
the North Carolina Railroad at a loss, is unreasonable and confiscatory. 

In consideration of all of which it is respectfully submitted that the com- 
plaint should be dismissed. 

Dated this 8th dav of June, 1898. 

SOUTHERN RAILWAY CCMPANY, 
Bv SAMUEL SPENCER, President. 
W. A. HENDERSON, 
FAIRFAX HARRISON, 

Cf Counsel. 



184 BOARD OF RAILROAD COMMISSIONERS. 

Exhibit "A." 
BEFORE THE NORTH CAROLINA RAILROAD COMMISSION. 



IN THE MATTER OF THE FARES FOR THE TRANSPORTATION OF 

PASSENGERS. 

Southern Railway Company having been notified to show cause before this 
Honorable Body why the fares for the transportation of passengers over the 
lines in North Carolina, described as follows: The Western North Carolina 
Railroad, the Atlantic, Tennessee and Ohio Railroad, the North Carolina Rail- 
road, the Piedmont Railroad, the Atlanta and Charlotte Air Line, the (Charlotte. 
Columbia and Augusta Railroad, the Northwestern North Carolina Railroad, 
should not be reduced, respectfully submits the following statement of reasons 
why such reduction should not be made: 

RATES MUST BE REASONABLE. 

The power of this Commission over the matter at issue is the provision of the 
law of North Carolina, ratified March 5, 1891, that the Commission shall 

"make reasonable and just passenger tariffs." A passenger tariff 

made by this Commission must, therefore, be "reasonable and just;" and it is 
not necessary to demonstrate that rhis means that the tariff must be just to the 
carrier at the same time that it is just to the passenger. 

The Supreme Court of the United States has so held (Reagan v. The Farms 
Loan and Trust Company, 154 U. S., 362). 

What was said by the Court in that case is applicable to this matter, and ex- 
presses the confidence of the respondent in the decision of this matter when the 
Connnission realizes from the following statements what wi'l be the conse 
quences of their proposed action to the railroad company operating the largest 
mileage of any carrier within the borders of North Carolina. 
Says Mr. Justice Brewer, speaking for the Court : 

" It is enough to say in respect to these matters, at least so far as this 
" case is concerned, that it is not to be supposed that the legislature of any 
" State, or a Commission appointed under the authority of any State, will 
•'ever engage in a deliberate attempt to cripple or destroy institutions of 
" such great value to the community as the railroads, but will always act 
" with the sincere purpose of doing justice to the owners of railroad prop- 
"erty, as well as to other individuals." 

I. 

THE PRESENT PASSENGER RATES ARE REASONABLE BECAUSE 
THEY DO NOT YIELD MORE THAN A REASONABLE RETURN TO 
THE CARRIER. 

In what follows it is not proposed to discuss merely the original proposition 
that the owners of railroad proi)erty are entitled to earn a fair return upon the 
present value of their property. The standard of measure of the value of railroad 
property is difficult to determine. While it might be shown that Southern 
Railway Company has not yet in any year earned a fair return upon the value 
of its property in North Carolina, what follows will be chiefly founded upon 



COMPLAINTS AND DECISIONS. . 1 S5 

the broad g:round that an investment has been made in North CaroUna from 
which the people in that State derive the immediate benefit, and that the in 
vestors are entitled to look to the protection of the State in their attempt to get 
a fair return upon their investment; that is to say, upon the moneys actually 
expended, and for any return from which many of them are still waiting with- 
out satisfaction. 

The history of the lines now constituting the Southern Railway system em- 
braces facts and features abundantly proving* that any arbitrary reduction of 
the revenue of those lines would be grossly unjust to the people who have in 
vested their money in these properties in the State of North Carolina in afford- 
ing its citizens modern transportation facilities. 

A brief resume of some of the more recent history is, however, pertinent in 
order to refresh the memory of your Honorable Connnission. 

The Southern Railway Company was chartered by an act of Assembly of Vir- 
ginia, approved February 18, 1894, and acquired its property chiefly at fore 
closure sale, in pursuance of a plan of reorganization of the Richmond and 
West Point Terminal Railway and Warehouse Company, and its subsidiary com 
panies, including the Richmond and Danville and East Tennessee, Virginia and 
Georgia. By this means, it is now the owner of all the lines the passenger tar- 
iffs on which this Commission is now considering, except the North Carolina 
Railroad, which it ht>lds under lease, and the Atlanta and Charlotte Air- Line, 
which it oi^erates under a contract made by the Richmond and Danville. 

The Southern Railway Company operates 1,123 miles of railroad in North 
Carolina. 

The object of the reorganization was to rehabilitate financially and physically 
properties which had decayed in the hands of insolv^ents, and to so cut down 
the fixed charges as to make probable the continued operation thereof without 
new bankruptcy. This was necessary, partially because the fixed charges for- 
merly in effect were based upon high rates of interest which were current at an 
earlier date in the hislory of railroads in this country, aud which could not be 
reduced pari passu with the gradual and unrelenting reduction of rates and 
revenue which all railroads have had to face, and which has been caused by 
general economic causes, as well as by the arbitrary action of the State, and 
partially by excessive railroad construction and competition, and a widespread 
depression in all classes of business. 

Out of such conditions it was hoped that a consolidation of many weak lines 
in the hands of a single and efficient and economical management would result 
in saving a further loss of the investment already made. 

To this end the bonded indebtedness of the several lines was reduced by 
nearly forty millions (§40, 000, 000) of dollars. 

A considerable portion of these bonds represented cash which had been bor- 
rowed and expended for improvements upon the several lines of the Richmond 
and Danville system within the State of North Carolina, including the North 
Carolina Railroad, owned largely by the people of the State. It is well known 
how much the North Carolina Railroad was improved in physical condition 
under the Richmond and Danville lease. The improvements remained for the 
benefit of the patrons; but the money expended w^as lost to the security holders, 
and these security holders are among the stockholders of the Southern Railway 
Company. 



186 



BOARD OF RAILROAD COMMISSIONERS. 



The capital stock of the Soathern Railway Company consists of preferred and 
common stock. 

The preferred stock was issued for the retirement of junior lien bonds, includ 
ing those above referred to, on which the interest had not been earned and for 
cash assessments paid in by security holders to assist in the rehabilitation cf 
the properties. It represents, therefore, substantially its par vahie in cat-h in- 
vested in these properties. 

The common stock v>^as issued to the holders of securities of the predecessor 
companies, and in consideration of the cash assessments paid by the holders of 
those securities, although a portion of it was sold for cash which was used only 
for necessary purposes of reorganization. 

RESULTS OF OPERATION OF SOUTHERN RAILWAY SYSTEM AS A 

WHOLE. 

The income account of the Southern Railway Company for the fiscal years 
ending June 30, 1896, and 1897, as compared with that of substantially the same 
properties in the year 1891, is as follows: 





1891 


1896 


1897 


Gross earnings 


$21,372,391 
14,780,039 


$19,082,247 
13.451,447 


$19, 079, 500 
13,233,156 


Expenses and taxes 




Net earnings 


6, 592, ,352 

162, 264 


5, 630, 800 
188,507 


5,846,344 
286, 832 


Otliei' income 




Gross income 


6,754,616 


5, 819, 307 


6,133.176 






* 6, 298, 000 
* 600,000 


5,218,370 
44, 459 


5,612,234 
75, 022 


Other deductions 




Total deductions 


6, 898, 000 


5, 262, 829 


5,687,256 




Net profit (Def.) ._ _ 


143, 384 


556,478 


445,920 





*Approximate. 

The year 1891 is selected for comparison as showing the high water mark in 
railway traffic in Southern States, which high-water mark was immediately fol. 
lowed by the bankruptcy of a large portion of the railway systems of the South. 

The net profit is the total amount available for dividends to stockholders 
after paying interest on mortgages and rentals and taxes. For the last two 
years this net profit, notwithstanding the large reductions in interest charges 
due to the reduction in bonded indebtedness above stated, has averaged less 
than one (1) per cent per annum upon the 154,300,000 of preferred stock, which 
represents cash invested in the property. 

To show more clearly the significance of these figures the following compara 
five statement of results from the same properties for the years 1891 and 1897 is 
added : 

4,577.37 

4,805.75 



Miles operated, 1891 - 

1897 (average) 



COMPLAINTS AND DECISIONS. 



187 



(tI'oss earnings Id 1897 were nearly $2, 800, 000 less than in 1891, a decrease of 11 
per cent. 



Gross Earnings— 

Gross earnings, 1891 

Grt)ss earnings, 1897 

Decrease in 1897 

Gross earnings per mile operated, 1891- 
Gross earnings per mile operated, 1897- 

Operating Expenses— 

Operating expenses and taxes, 1891 

Operating expenses and taxes, 1897 

Decrease in 1897 

Per mile of road operated in 1891 

Per mile of road operated in 1897 

Net Earnings from Operations— 

Net earnings in 1891 

Net earnings in 1897 

Decrease in 1897 

Net earnings per mile of road, 1891 

Net earnings per mile of road, 1897 



$21,372,391 
19,079,500 



2,292,891 



14,780,039 
^3, 233, 156 



,546,i 



6,592,352 
5,846,344 



746,008 



$4, 669 
3,970 



3,229 
2,754 



[,440 
r,2i6 



Net earnings per mile of load, therefore, have fallen off 15.5 per cent. 



Taxes in the meantime have increased $14-4,900 per annum, or 29.5 per cent, al- 
though earnings have been so largely reduced. 



Taxes, 1891 

Taxes, 1897 

Increase in 1897 . 



$490, 709 
635, 592 



144, 883 



1.88 



BOARD OF RAILROAD (COMMISSIONERS. 



Freight Traffic. 



Tons carried one mile in 1891 . 
Tons carried one mile in 1897 

Freight earnings, 1891 

Freight earnings, 1897 

Decrease, 1897 



Decrease, 1897, per cent. 



Average rate per ton per mile, 1891- 

Average rate per ton per mile, 1897. 

Decrease, 1897 



Amount. 

1,203, 119,818 

1,324,015,178 

$13, 530, 803 

12,386,901 



143,902 



8.45 



1. 125 cents. 
0.936 cents. 



o. i8q cents. 



While the freight earnings decreased 8.45 per cent, the tonnage increased nearly 
10 per cent. 



Passenger Traffic. 



Amount. 



Passengers carried one mile, 1891- 
Passengers carried one mile, 1897. 
Earnings from passengers, 1891- — 

Earnings from passengers, 1897 

Decrease, 1807 



Average rate per passenger per mile, 189 1- 

Average rate per passenger per mile, 1897. 

Decrease, 1897 , 



228,847, 200 

203,763,405 

$6, 062, 849 

4, 832, 848 



, 230, 001 



2.649 cents. 
2.372 cents. 



0.277 cents. 



In passenger traffic the number of passengers carried has decreased, the reve- 
nue has diminished, and the rate per passenger has been reduced about ten (10) 
per cent. 

An examination of the foregoing statistics will demonstrate that the same 
conditions of low rates and a smaller volume of traffic as compared with 1891, 
have prevailed during the year last past, as well as during 1896; and although 
the Southern Railway Company, by strictest economy and careful management, 
has been able to earn a small surplus over its fixed charges, yet this surplus is 
less than that of the preceding year, and admits of only a very small return to 
its preferred shareholders and none at all to its common stockholders. 

Until the Southern Railway Company shall be earning a fair income, there 
can be no objection to the existing rates on the ground that the company is 
earning an unreasonable return upon its securities or its investments. 

COMPARISONS OF RAILROAD TRAFFIC IN NORTH CAROLINA WITH 
THAT IN OTHER SECTIONS OF COUNTRY. 

The following statement shows the freight and passenger earnings, the gross 
earnings, and the net income from operation, per mile of road operated by the 



COMPLAINTS AND DECISIONS. 



189 



Southern Railway Company in the State of North Carohna, as compared with 
the same statistics for other hnes of tlie Southern Railway System, and also as 
compared with the figures reported by the Ij-.terstate Connnerce Commission for 
the year ended June 80, 1896, for all railroads in the so-called Groups IV and 
V— Group IV including the raih-oads in Virginia and . Carolinas, and Group V 
incHiding the railroads in the remaining section of the So\ith east of the Missis- 
sippi and south of the Ohio and Potomac Rivers: 

Year Ending June 80th, 189G. 





All rail- 
road'i in 
United 
States. 


GrdupIV. 


Group V 


Southern 

Railway 

lines in 

North 

Carolina. 


Another 
lines oper- 
ated by 
Southern 
Railway. 


MiipQ nneratpd 


172,368 

$1,877 

4,479 
163 


10, 755 

$1,146 

2,949 
81 


18,638 
$1,244 

3,025 

102 


1,062.7 

$1,352 

2,284 
34 


3,511.1 
$1,470 

2,742 

112 


Passenger earnings (including mail and 
express) per mile of load operated. 

Freight earnings per mile of road oper- 
ated. 

Other earnings per mile of road operated- 


Gross earnings per mile of road operated- 
Operating expenses per mile of road op- 
erated (not including taxes). 

Net earnings from operation per mile of 
road operated * 


6,519 
4,380 


4, 176 
2,858 


4,371 
3,010 


3,670 
2,405 


4,324 
2,937 


2,139 


1,318 


1,361 


1,265 


1,387 



■Out of these net earnings there had to be paid taxes and fixed charges. 



It is noticeable that both the gross earnings and the net earnings from opera- 
tion of the S(;uthern Railway lines in North (Carolina were considerably less 
than the average per mile o^" line on the entire Southern RaiJvvay System, and 
also less than the average earnings per mile of line of all roads in Group 1\ and 
Grou]) V. It also ap})ears that in the year 1895-9G the gross earnings of the 
lines of the Southern Railway in North Carolina amounted to only $^,070 per 
mile of road, as compared with an average reported by the Interstate Ccm 
merce Commission for all lailroads in the United States of §6. ol9 per mile of 
road; in other words, that the gross earnings per nule of the Somthern's lines 
in North Caro:)lina were but a little more than one-half as great as the average 
earnings for every mile of railroaol in the United States. 

Comparing the Southern's gross earnings in North Carolina with the earnings 
of other lines in the same section of the country, the Southern's gross earnings 
per mile of line m North Carolina were 15 per cent less than the average gross 
earnings per mile of line of the remainder of the Southern Railway System, and 
wer3 14 per cent less than the average gross earnings })er mile of line of all rail- 
roads in the South (Groups IV and V). 

Some of the conolitions of tiaffic upon the lines operated by the Sojuthern 
Railway Company in North Carolina may be summarized as follows: 

(1) The volume of traffic, in proportion to the length of road operated, is ex- 
ceedingly small, as comx>ared with that of roads in other sections of the 
South or of the United States generally. 



190 



BOARD OF RAILROAD COMMISSIONERS. 



(2) 



(3) 



In propoi-tion to the volume of traffic handled, the averao-e freight and 
passenger rates on the Southern's Imes in North Carolina are lower than 
the rates on the other portions of its system; lower than the average 
rates on other railroads in the South, and vastly lower than the average 
rates for all railroads in the United States. This is shown by the fact. 

That the gross freight and passenger receipts and the net earnings per 
mile of road operated, are much smaller on the Southern's lines in North 
Carolina than the averages upon roads elsewhere. 



THE AVERAGE RATES OBTAINED BY THE SOUTHERN RAILWAY 
COMPANY UPON ITS TRAFFIC IN NORTH CAROLINA HAVE 
BEEN CONSTANTLY DECREASING. 

A comparison of the reports of the Railroad Commission of North Carolina 
for the year 1891 with the reports for 1895 and 1896, covering the operations of 
the railroad lines now forming the Southern Railway System in that State, is 
of interest as indicating the very 'arge reduction which has been made in rates 
generally throughout that State during the past five years. The statement is as 
follows: 



Miles operated 

Passenger receipts 

Freight receipts 

Passengers one mile 

Tons one mile 

Average receipts per passenger per mile.- 

Average receipts per ton per mile 

Passenger receipts per mile of road per 
annum. 

Freight receipts per mile of road per an- 
num. 



Year ended June Year ended June 

30,1891. 30,1896. 



1,001.47 

$1,136,777.11 

2,123,273.31 

40,515,139 
152,304,148 

.02806 
.01394 
$1,135-00 

2, 120.00 



1,062. 70 
$1, 138, 121.84 
2,378,337.52 
50, 423, 136 
195, 666, 458 

. 02257 
.01216 
$1,071.00 

2, 238. 00 



Year ended June 

30, 1897. 



1, 123.25 
$1,104,357.35 
2,859,205.62 
46, 289, 563 

297,941,775 

.02386 
. 00960 

$983. 00 

2,545.00 



The increase shown in the freight earnings of the lines in North Carolina is 
largely due to the opening of the Norfolk terminals, and the transfer to the line 
east of Greensboro of through traffic, such as was previously handled from West 
Point to Danvi'le over the Virginia lines of the company. The increased earn 
ings thus accruing to the North Carolina roads do not mean corresponding 
profits to the Southern Railway Company, nor do they result from any in 
creased payments made by Ihe people of North Carolina. 

What was gained to the North Carolina lines was lost to the Virginia lines, 
as shown by the following statement: 



COMPLAINTS AND DECISIONS. 191 



Gross earnings of Greensboro-Goldsboro line in 1895 

Gross earnings of Greensboro-Norfolk line (portion in North Carolina only) in 1897 

Increase, 1897 

Gross earnings of the West Point-Danville line in 1895 

Gross earnings of the West Point Danville line in 1897 

Decrease, 1897 



1377,685 
1,082,445 



704, 760 



, 409, 626 
658, 244 



751,382 



The Norfolk line was open during- (mly a portion of the year 1896. Hence the 
comparison is made between 1895 and 1897. 

The revenues of the lines in North Carolina — and especially the Western 
North Carolina and the North Carolina Railroads — have also largely increased 
since the consolidation, by traffic to and from the old East Tennessee, Vh'ginia 
and Georgii, Railway, which traffic had previously been exchanged with the 
Norfolk and Western Railway at Bristol, and did not pass over the present lines 
of the Southern Railway in the State of North Carolina. 

The average passenger rate in the year ending June 80, 1896, was exceptionally 
low on account of the volume of low rate traffic going to the Atlanta Exposi- 
tion during that year, so that the year 1897 will afford a fairer basis, for a com 
parison of rates, than the year 1896. 

In 1891 the average rate per passenger per mile on the lines referred to was 
2.806 cents; in 1897, 2.386 cents. 

The reduction in the average passenger rates in the six years (1891 to 1897) 
was 15 per cent If the passenger traffic in the year 1896-97 had been handled 
at the same average rates as those of 1891, the passenger earnings of the South- 
ern Railway lines in that State would have been increased by the amount of 
$194,000. " . 

The average rate per ton per mi'e in the year 1890-91 was 1.394 cents on the 
lines now operated by the Southern Raihvay Company in the State of North 
Carolina. The average rate per ton per mile obtained by the Southern Rail- 
w^ay Company in North Carolina in the year 1896-97 was 0.960 cents, a decrease 
in six years of 80 per cent in the average rate. 

The results as to freight operations are included in the statement, because in 
many parti<*ulars it is impracticable to separate the expenses of conducting the 
passenger traffic from that of the freight, and a consideracion of these two chief 
sources of re^^enues as a whole is necessary in determining not only the i-esult to 
the owners of the properties but in a measure in determining the fairness of the 
rates charged to the public. 

WHILE RATES HAVE DECREASE]) THE AMOUNT AND CHARAC- 
TER OF THE FACILITIES FURNISHED BY THE SOUTHERN 
RAILWAY HAVE BEEN INCREASED AND IMPROVED. 

Although the earnings from passengers in North Carolina were less in 1897 
than in 1896, and less than in 1891, the railway company has, nevertheless, 
given to the people of that State a constantly increasing and improved train 



192 



BOARD OF RAILROAD COMMISSIONERS. 



service, and additional facilities for iiiakiiig travel more rapid, more comfortable 
and, at the same time, safei*. The local patrons of the road in North Carolina 
have received the benefit of these increased improvements and facilities with- 
out any increase in the price of transportation; whereas, the increased cost to 
the railway company has been very large, and the company can iook only to 
the future development of the State for any return upon the money thus ex 
pended. 

To illustrate this more clearly the following statement is submitted, showing 
miles run by passenger trains, earnnigs from passengers, and the average pas- 
senger earnings per passenger train mile, upon the Southern Railway's lines in 
the State cf North Carolina for the years named: 



1895 
1896 
1897 



Miles run by 

all passenger 

trains. 



1,065,408 
1, 156, 107 
1,426,468 



Passenger 
earnings. 



$985, 993- S3 
I, 138,121.84 
1,104,357.35 



Average pas- 
senger earn- 
ings per train 
mile. 



$0. 925 
.984 
•774 



It thus appears that in the year ended June 30, 1896, the number of miles run 
by passenger trains increased 90,(399 miles, or about 9 per cent over the year 
1895. Owing to the exceptional amount of traffic on account of the Atlanta 
Exposition, the avei-age passenger earnings per passenger train mile in 1896 in- 
creased somewhat, as compared with 1895. 

Ill the year 1897 a further large increase was made in the train service, residt- 
ing in an increase of 861,060 train miles, as compared with the year 1895. The 
Southern's passenger train service in North Carolina was thus 84 per cent 
greater in 1897 than in 1895. 

The average passenger earnings per train mile, however, which in 1895 were 
92.5 cents, in 1897 w^ere only 77.4 cents, a decrease of 15 cents per train mile. 

Thus, while the people of North Carolina have received all the benefits of a 
largely increased train service, the railway company has received in passenger 
fares for each mile run by passenger trains in the State of North Carolina 16 per 
cent less earnings in 1897 than it received in 1895. 



UNDER THE RATES NOW EXISTING THE LOCAL PASSENGER 
TRAINS OPERATED BY THE SOUTHERN RAILWAY COMPANY 
IN THE STATE OF NORTH CAROLINA DO NOT EARN, IN PAS- 
SENGER FARES, AN AMOUNT SUFFICIENT TC PAY THE BARE 
COST OF RUNNING SUCH TRAINS. 

The following statement shows the passenger earnings of the lines operated 
by the Southern Railway in the State of North Carolina, the number of miles 
run by passenger trains in that State, and the passenger earnings per mile "run, 
showing results for "through" and "local" trains separately, for the year ended 
December 81, 1896, the latest period for which such data have been compiled. 
The conditions in 1897, as respects local passenger traffic, were, however, no 



COMPLAINTS AND DECISIONS. 



193 



more favorable than in 1896. On the contrary, by reason of the increased train 
service, above referred to, they were less favorable. 



Through trains. 
lyocal trains 



Passenger 
earnings. 



$636,563-81 
347, 322. 63 



Passenger Passenger 

train mileage earnings per 

—miles. train mile. 



514,470 
716,234 



I1.24 



It thus appears that the average passenger earnings of the Southern's local 
trains in North Carolina were only 48 cents per train mile in the year ended 
December 81, 1896. This includes all passenger train service, except the essen 
tially "through" trains, whose earnings are principally or largely derived from 
interstate passengers. 

The operating expenses of railroads in the United fStates, as rej^orted by the 
Interstate Commerce Commission, average about ninety cents per train mile. 
Of this amount fully 70 per cent, or say from sixty to sixty five cents per mile, 
were expenses of conducting transportation and maintenance of equipment. 
This expense of from sixty to sixty -five cents per train mile is exclusive of ex- 
penditures for maintenance of road-bed and structures, or for general expenses. 

It can, therefore, readily be seen that the local passenger trains of the South- 
ern Railway Company in North Carolina do not earn from the carriage of pas 
sengers sufficient to pay the cost of rurming them. They are therefore run by 
the railroad company as a part of its general scheme of operation to accommo- 
date local interests and to facilitate trade, but at a loss to the company when 
considered separately. That is to say that the citizens of North Carolina get 
the benefits of the intrastate service and do not pay actual cost for it. 

Under these circumstances an arbitrary reduction in the local passenger rates 
would be manifestly unjust. 

II. 

THE SOUTHERN RAILWAY COMPANY CAN NOT BEAR A REDUC- 
TION IN THE PRESENT PASSENGER TARIFF. 

If the present tariff was reduced to two cents per mile, or to two and one half 
cents per mile, the losses, respectively, to the Southern Railway Company in 
passenger revenue per annum on the lines named would be as follows: 



13 



194: 



BOARD OF RAIT.KOAD COMMISSIONERS. 



• 


Present 
earnings. 


Loss at reduc- 
tion to 2C. 


Loss at reduc- 
tion to 2^C. 


Local Passengebs— 


$162,381.16 
243,571.74 


$66, 040. 42 
73,777-88 


$42,219. 10 
48,714.35 








405,952.90 


139,818.30 


90,933.45 


Interstate Passengers— 
Koreiern 


176,582.00 


1,765.82 


1,412.66 




Inter-Divisional — 


329,619.74 
82,404.94 


134,056.35 
24,960.46 


85,701.13 
16,480.99 








588, 606. 68 


160, 782. 63 


103,594-78 


Total 


994,559-58 


300, 600. 93 


194,528.23 





A stateiiient of the estimated loss resulting to the Southern Railway Company 
on foreign and interdivisional passenger traffic by reason of such reduction of 
the present local passenger rates in North Carolina is included above, because 
through rates are in a large measure dependent upon the local rates, and a re- 
duction of the latter mast necessarily be followed by some reduction in the 
former, as is well understood by the Commission. 

The loss, therefore, resulting even from a reduction to two and one-half (2)4) 
cents per mile would, in the aggregate, be nearly one-half of .the entire net 
profit of the entire system last year, after paying fixed charges, rentals and 
taxes. 

III. 

THE PRESENT PASSENGER TARIFF IN NORTH CAROLINA IS REA- 
SONABLE, BECAUSE IT IS NOT GREATER THAN THE TARIFF 
IN EFFECT ON RAILROADS IN OTHER PARTS OF THE COUNTRY 
WHERE PASSENGERS ARE TRANSPORTED UNDER SIMILAR 
CIRCUMSTANCES AND CONDITIONS. 



When the population of a country served by a railroad is dense and engaged 
largely in mercantile and manufacturing pursuits, and the movement of passen- 
gers is consequently great, the railroads can afford to charge a lower average 
rate than they can afford in a country where the population is sparse and chiefly 
engaged in agriculture and the relative movement of passengers is consequently 
small. 

These are the conditions which make rates and this is the explanation of the 
two-cent rates in some parts of the country, and the three, four and six-cent 
rates in other parts of the country. 



COMPLAINTS AND DECISIONS. 



195 



The following table demonstrates this : 
Statement showing the population per sqaare mile of various States (Census, 1800), 
and the average rate per mile charged for passenger service by prominent lines 
in each of the States of the United States : 



state. 



Arizona 



Arkansas . 



California . 



Colorado 



Connecticut. 



Delaware 



Florida- 



Georgia 



Idaho 



Illinois- 



Square 
Miles. 



113. 916 



53, 045 



155,980 



103. 645 



^,845 



59, 268 



58,980 



90, 932 



56,000 



Popula- 
tion. 



1,513,017 



,620 



1, 128, 179 



208, 



746,258 



[67,871 



390, 435 



1,837,353 



229 



3,826,351 



Popula- 
tion per 
Square 
Mile. 



less than 
one. 



Name of Road. 



t56 



Louisville and Nashville 

Memphis and Charleston 

Central of Georgia 

Arizona and New Mexico 

Atlantic and Pacific 

Santa Fe, Pres. and P 

St. Louis, Iron Mountain and Southern 

St. Louis and Southwestern 

L. R.and M 

Atlantic and Pacific 

Southern California 

Southern Pacific 

A.T. and Santa Fe 

Colorado Midland 

D.and R.G 

Central Vermont 

New England 

New York, New Haven and Hartford.. 

Baltimore and Ohio 

Pennsylvania Railroad 

Wilmington and Norfolk 

Plant System 

Florida, Carolina and Pensacola 

Florida, East Caiolina 

Wilmington and Augusta 

Central of Georgia 

Plant System 

Great Northern 

Northern Pacific 

Union Pacific 

Wabash Railroad 

Vandalia Line 

Illinois Central 



Rate 
Per Mile. 



$0.03 
•03 
•03 
.06 
.06 
.06 
•03 

• 03 

• 03 
.06 
.06 

. 03, . 06 
.04 
.06 

• 04, . 05 

• 03 

• 03 

02l4,.03 

• 03 

• 03 

• 03 
.04 



196 



BOARD OF RAILROAD COMMISSIONERS. 



Statement showing population per square mile of various States, etc.— Continued. 



Indiana 



Indian Territory 



Iowa 



Square 
Miles. 



Kentucky . 



Louisiana. 



Maryland 



35,910 



55,475 



SI, 700 



45,420 



29, 895 



9,860 



Massachusetts— 8,040 



Michigan 57,43° 



Mississippi- 



46,340 1,289,600 



1 Popula- 

Popula- tion per 

tion. ; Square 

Mile. 



2,058,069 



[,334,685 



[,858,635 



[,118,587 



[,042,390 



2,495,345 



Minnesota 83,531 1,300,017 



47 



25 



106 



309 



15 



28 



Name of Road. 



C.H.andD 



Charleston, Cincinnati, Chicago and St. 
IvOuis. 



L. D.and W 

G.,C. and Santa Fe 

M.,K.and T 

Choctaw, Oklahoma and Gulf 

Iowa Central 

C, R. I. and P 

C.and N.W 

M., K. and T 

Missouri Pacific 

Union Pacific 

Louisville and Nashville 

C, N. O. and T. P 

C.and O 

vSouthern Pacific 

T.and P 

New Orleans and N. E 

Maine ( entral 

Boston and Maine 

Ban. and Aristook 

Baltimore and Ohio 

Cumberland Valley 

Western Maryland 

Boston and Albany 

Fitchburg 

New York, New Haven and H 

39 ; Dul.,S. S. and Atlanta 

Minneapolis, St. Paul and Ste. M- 

C. and N. W 

C. M.and St. Paul 

Minnesota and St. Paul 

Wisconsin Central 

Illinois Central 

Mobile and Ohio 

New Orleans and N.E 



Rate 
Per Mile. 



|o. 



03 
03 

03 
03 
05 
•03 
03 
03 
03 
03 
03 
03 
.04 
03 
03 
•05 
03 
■ 03 
.03^ 
.03/2 
.oz% 

• 03 

• 03 

• 03 
.021X 

.02% 

.02^ 

.02^ 

.04 

.03>^ 

• 03 
•03 
•03 
■03 

• 03 
.03 
.03 



COMPLAINTS AND DECISIONS. 



197 



Statement showing population per square mile of various States, etc. — Continued. 



state. 


Square 
Miles. 


Popula- 
tion. 


Popula- 
tion per f 
Square 
Mile. 


Name of Road. 


Rate 
Per Mile. 


Missouri 


65, 350 


2, 677, 080 


41 Missouri Pacific 


$0.03 
•03 




M.,K.andT 








Wabash 


•03 


Montana 


143, 776 


131,769 


I Burlington and Missouri River 


•05 
•05 

• 05 












Northern Pacific 


Nebraska 


76, 840 


1,058,910 


14 Burlington and Missouri River 

K.C.and V.W _ 


• 03 

• 03 

• 03 






, 






112,090 


44,327 






one 

i Southern Pacific. ___ 


.05 










06 


New Hampshire 


9,305 


376,530 




• 03 
.03, .05 
. 03, .07 










Maine Central 


New Jersey 


7,455 


1,672,942 


224 ' Bflltimorp and Ohio 

224 


.03 
.03 




C.R.R.of New Jersey 1 










P.and R 


.03 


New Mexioo 


121,201 


144, 862 


I 


Arizona Texas and Santa Pe 


.04 
.06 








Arizona and New Mexico 










U.P.D.andG 


.06 


New York _. 


47,620 


5,997,852 


126 


New York Central — Main lyine 


02 






Adirondack Division 


.03 

.02>^,.03 

• 03 

•03K 

.02^ 
.03^X 










New York New Haven and H 












North Carolina- 


48, 580 


1,617,947 


33 


Atlantic Coast Line— ist Class 






2d Class 










Cape Fear and Yadkin Valley— istClass- 










2d Class. 


■02% 










Seaboard Air Line— ist Class 


.02% 
•OS^A 
.02% 
.04 
. 04 
.04 










2d Class 










Southern Railway — ist Class 










2d Class 


North Dakota... 


73, 745 


182, 425 


2 


C. andN.W 




CM. and St. Paul 




Great Northern. _ 



198 BOARD OF RAILROAD COMMISSIONERS. 

Statement showing population per square mile of various States, etc. — Continued. 



Ohio 



Oklahoma Ter- 
ritory. 



Oregon. 



Pennsylvania. 



Rhode Island _. 



South Carolina. 



South Dakota. 



Tennessee 



Texas 



Utah 



Vermont 



Virginia. 



Square 
Miles. 



40, 760 



44, 985 



Popula- 
tion. 



3,672,316 



61, 701 



5,258,014 



1,085 384,758 

I 



1,151,149 



73, 745 



237, 504 



80, 056 



327, 



767,518 



2, 232, 220 



206, 498 



1,655,980 



Popula- '< 

tion per ' 

Square k 

Mile. * 



Name of Road. 



90 Baltimore and Ohio 

C.H.and D _. 

Pennsylvania Railroad 

A. T. and Santa Fe 

C.R.I. andP 

I Choctaw, Oklahoma and Gulf- 



3 Northern Pacific ! 

Southern Pacific 

Union Pacific 

117 Baltimore and Ohio 

Pennsylvania Railroad 

Pennsylvania and Reading 

354 i New England 

New York, New Haven and H 

Mossasshuck Valley 

38 F., Charleston andPensacola— IstClass- 
2dClass- 
Soutli Carolina and Georgia— ist Class— 
2d Class— i 

Atlantic Coast Line— ist Class _ 

2d Class 

14 B.C.,R. and N 1 

I ' 

T. M.and M.V 

Minneapolis and St. Louis 

Illinois Central 

Louisville and Nashville 

N . C. and St, Louis — — 

Houston and Texas Central 

Southern Pacific j 

Texas and Pacific i 

Utah Central | 

Union Pacific 1 

32 Boston and Maine 

Bennington and Reading j 

Central Vermont j 

Chesapeake and Ohio 

Norfolk and Western 1 .03, 



Rate 
Per Mile. 



•03 

• 03 
.03 
•03 
.03 
•03 
.04 
.04 
.04 
•03 
•f'3 ' 

• 03 

.02^^ 
.02^ 
.02% 
.03'/, 
•02^ 

■03% 
.02% 
.03V. 

• 02K 
.04 
•05 



• 03 
.03 
.03 

• 03 
.03 
.03 
,06 
,04 

• 03 
•03 
■ 03 
.03 
.03% 



COMPLAINTS AND DECISIONS. 199 

Statement showing population per square mile of various States, etc. — Continued. 



state. 


Square 
Miles. 


Popula- 
tion. 


Popula- 
tion per 
Square 

Mile. 


Name of Road. 


Rate 
Per Mile. 


1 
Virginia 

IP^^ashinsrton ^^ •^'i'' 


349,516 

760,448 

i,686,SSo 

60, 589 


5 
34 
31 

less than 
one 


Richmond, Fredericksb'g and Potomac 
Great Northern _ - _. 


$0.03 
• 05 




23, 000 
54,450 
93,107 


Northern Pacific . _ . 


•05 

.04, .05 
.03 


West Virginia- 


Oregon Railway and Navigation Co 

Baltimore and Ohio _ _ ,._ _ _ 


C. and G 


.03 




Ohio River - - 


•03 
•03 
.03 
•03 
•05 
•05 
.05 


Wisconsin 


C and N. W 




D S S. and Atlantic 




Wisconsin Central 


Wyoming 


Burlington and Missouri River 


Trem E H and M. V 




Union Pacific Denver and Gulf 







II is not contended that the rates shown above are all the passenger rates in 
force in the United tStates, or even in the var'ous States named, but it is con- 
tended that they are the rates which are charged and paid on representative 
railroads in all parts of the United States, varying from the low rates of New 
York and Massachusetts to the five and ten-cent rates of Nevada and Colorado. 
The average of all these rates as given is 3.583, which is somewhat more than 
the first class rate now in force in North Carolina. 

This is a fair index that North Carolina now has, in respect to passenger fares, 
all that other States under like conditions enjoy and all that her railways, un- 
der those conditions, can afford to supply. 

I\^ 

AS THE PASSENGER MOVEMENT IN NORTH CAROLINA INCREASES 
THE RATE WILL DECREASE. 

The economic causes to which reference has been made, which are constantly 
causing a reduction in rates, can accomplish more for the benefit of the people 
of North Carolina than any arbitrary action of this Commission in reducing 
passenger tariffs. 

If the rates are now violently and arbitrarily reduced, severe losses will result, 
and instead of having the present modern service, with frequent schedules and 
fast and comfortable trains over well-maintained tracks of heavy rails, the 
result must necessarily be a reduction of schedules and a curtailing of expendi- 
tures for improvements in the road-bed and rolling stock. 

This, in turn, necessarily means the retarding, if not the cessation, of that 
material advancement and progress which has marked the history of North 
Carolina for the past few years. There has been throughout the United States 



200 BOARD OF RAILROAD COMMISSIONERS. 

a constant reduction of rates, both passenger and freight, as population and the 
volume of traffic increased, and the people of North Carolina have participated 
proportionately in the benefits accruing therefrom. Where a fare of five cents 
per mile was demanded and paid in 1885, the same passenger may now travel 
the same distance for three and one quarter cents, but in quicker time, and 
with far greater comfort and assurance of personal safety. 

This is demonstrated by the following table, showing the gradual reduction 
in passenger rates: 



COMPLAINTS AND DECISIONS. 



201 



i ri 
< 




<s M (N<N(N|ro<NrOCSNro<NtNrorOMrocNro| 

1 

i 




Date in 
Effect. 

Present 
Tariff. 


1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 r 

2^ ^ ^ ^ \ I \ S' \ \ ^ \ S' '' ^ ^ \ \ \ 

""^ooo"oo"o-o'^"ooo 
rt = SollltcllCi-glg-gll!, 

2 -^ '^^iii^il'^i^i^'^liil 


RATE PER MILE 
IN CENTS. 


H I i i 


^^ 1 1 1 1 


Date in 

Effect. 


PO (N (Nllll|-l!l<NlONlioNI|lI 

^ cg^ ^ \ \ : \ ^ \ \ S'- \ ^ \ \ ^ \ \ \ 

" " "oooo~oo"o"|'~'ooo 

> >» ^illlU)l|P^:^ll>>lll 

5 3 ,i'lill5ll3;3ll3lll 
15 -, ^iiii"^ii'~'l'~>ii'~'iii 


RATE PER MILE 
IN CENTS. 






2 CO 

a 




Date in 
Effect. 


i S' ilili^-i'icg^li'ii^MI 

o o o o o "2 1 o 1 o " 1 1 " 1 1 - 
Z < i|ij|0<^|<l^ll^l< 


RATE PER MILE 
IN CENTS. 


ist 2nd 
Class. Class, 


fDrOrorOrOTj-Tj-Tf^i i i i it*-i irOi II 


{tK r^ t-^ H\ 1 1 1 1 1 II m^ 1 1 1 

Tt-rOrOfO'<riOuoioi/Ni i i i ii/jl irci i i 


Date in 
Effect. 


Nov., 1884— 
Mar.,i88i-_- 
July, 1887 — 
July, 1889— 
Mar , 1887— 
Jan., 1885— 

do 

do 

do 

Mar., 1881 

Mar.,i88i 




A 


Grover to Charlotte *- 

r 
1 

Charlotte to Danville -j 

Tryon to Asheville 

Asheville to Hot Springs 

Hot Springs to Paint Rock 

Murphy to Asheville 

Asheville to Salisbury 

Taylorsville to Statesville 

Statesville to Charlotte 

Charlotte to Pineville 

Salisbury to Norwood 

High Point to Ashboro 

Greensboro to Winston-Salem 

Winston Salem to Wilkesboro 

Winston Salem to Mocksville 

Greensboro to Goldsboro 

Durham to Oxford 

Oxford to Henderson 

Oxford to Clarksville 



202 BOARD OF RAILROAD COMMISSIONERS. 

Moreover, while the tariff rate in North Carohna for first-class is three and 
one-fourth cents, the actual average receipts of the Southern Railway Com- 
pany per passenger per mile, not including raihoad employees and others trav- 
elling free, is on y 2.386 cents, and this reduced average rate is due to conces- 
sions made to the pubUc in the form of mileage books and special excursion 
fares, minister's rates and other rates below tariff, authorized by the law of 
North Carolina. These are concessions which the people require and which the 
railway companies allow for the purpose of encouraging trade and travel. These 
concessions, except so far as they are charities, are based chiefly upon the famil- 
iar principle of wholesale business. If as many people as go on an excursion 
would travel all the time, excursion rates could be made general and permaneni . 

The question may be asked: How has the Southern Railway ('ompany been 
able to meet such enormous losses in gross revenue, due to this constant reduc- 
tion of ratesV It has thus far been able to meet its fixed obligations in the face 
of such heavy reductions in rates, because : 

First. In the reorganization of the properties the bonded debt of the system 
was reduced by about one-fourth, prefeiTed stock being generally issued in 
lieu of juniorj;lien bonds. A large amount of cash also (more than $8,000,000) 
was contributed, in the reorganization, by the holders of stocks of the old com- 
panies, such holders receiving stock of the Southern Railway C'ompany in pay- 
ment for said cash contributions and in exchange for their old stock. The reor- 
ganization, therefore, effected a very material reduction in the fixed charges of 
the system, and this represents an enormous loss to the security holders. 

Second. By means of the funds derived in the reorganization, the Southern 
Railway Company has thus far been abe to make steady and great improve- 
ments in the physical condition of the properties in respect to road bed, build- 
ings and equipment, so that marked economics in operation have thus been 
made possible. 

It shoud be understood, however, that in the year ending June 80, 1896, the 
entire Southern Railway System (4,574 miles of road) was able to earn above its 
fixed charges only $556,000, and in 1897 only $445,000, an amount less than one 
per cent per annum on Southern Railway preferred stock. In three and one- 
half years of operation the company has paid only 3 per'cent on its preferred 
stock, or only about six tenths of one j^er cent per year, and nothing on its 
common stock. As the preferred stock reT)resents actual cash expended at one 
time or another upon the properties, it is clear that the stockholders are as yet 
receiving only a small proportion of the return upon their investment, which 
they are justified in expecting. h 

V. 

WHAT THE PEOPLE OF NORTH CAROLINA HAVE GAINED FROM 
PHYSICAL IMPROVEMENTS UPON SOUTHERN RAILWAY LINES 
IN THAT STATE. 

Since the Southern Railway Company commenced its operations on July 1, 
1894. the physical condition of its properties has been greatly improved. 

There have been expended upon the lines of the Southern Railway System in 
North Carolina during the past three years more than $650,000 in excess of what 
it would have been necessary to expend in order to maintain the property in the 



COMPLAINTS AND DECISIONS. 208 

same or equally as good condition as when it was received. This represents 
chiefly the cost of new and modern shops at Salisbury, the placing of new and 
heavier steel rail in the main lines, and new sidetracks and improvements along 
the line, made necessary in order that the increased traffic over the line to Nor- 
folk might be properly handled. And it should not be overlooked that a large 
part of this sum has been expended upon the North Carolina Railroad, of 
which the State— that is, the people — owns three-fourths. 

New additional equipment, purchased by the Southern Railway Company 
since July 1, 1894, has cost more than one million five hundred thousand dollars. 

Tills purchase has enured to the advantage of the communities served by the 
Southern Railway lines in North Carolina, on account of improved transporta- 
tion fa^'.ilities which the railway company has thus been enabled to afford. 

CONCLUSION. 

From the foregoing statements it will appear to your Honorable Commission : 

That the rates of local passenger fare on the Southern Railway in the State 
of North Carolina are below the average in the United States, are fully as low. 
or lower, than in the neighboring States, and as low as they are in any other 
State of equal density of population. 

That the facilities afforded to the citizens of North Carolina, in respect to 
means of transit within the State, are fully equal to, and in many instances far 
superior to those enjoyed by other States of equal relative population. 

That these facilities have been largely improved in amount and are much su 
perior in quality as compared with those enjoyed in years previous, and that 
they are provided for the people of North Carolina without due remuneration 
to the carrier, and, so far as the purely local facilities are concerned, are fur- 
nished at less than the actual cash cost to the railway company, and that the only 
means by which the Southern Railway Company is able to thus furnish them 
and look solely to the future for its possible return is the fact that consolida 
tion into one large system has produced for the benefit of the company as well 
as the citizens of North (Carolina, a large volume of through interstate traffic 
sufficient to enable it to sustain temporarily the losses in connection with the 
local traffic. 

That the security holders of the Southern Railway Company are not now 
receiving, and at no time have received, a fair and reasonable return upon the 
cash investments made in the properties. 

That the lease for a long term of the North Carolina Railroad and the consoli- 
dation into the Southern System of the East Tennessee, Virginia and Georgia 
and other lines have been the means of sending through the State large vol 
umes of traffic which theretofore passed over lines largely outside of the State. 

That this increased volume of traffic through the State has rendered necessary 
large cash expenditures upon the lines of the Southern Railway Company in 
the State, including largely increased shop facilities, with a large permanent 
increase of population in connection therewith, large additional expenditures 
upon roadway, stations and bridges, and a large increase in the permanent 
train forces constantly employed in the movement of the traffic. 

That under these improved conditions there has been a material reduction in 
the rates for passenger fares within the State, since 1885, and that these rates 
are now as low as they can reasonably be made. 



204 BOARD OF RAILROAD COMMISSIONERS. 

That the loss to the Southern Railway Company, should further reduction be 
made, would be so serious as not only to interfere with future enlargement and 
improvement of the facilities now afforded, but to require their immediate cur- 
tailment and possibly permanent impairment to the great detriment of the ma- 
terial welfare and development of the State. 

That in view of the present earning capacity of the Southern Railway Com- 
pany's line in North Carolina, any reduction in passenger fares amounts practi 
cally to a confiscation of property represented by actual cash investments, for 
the reason that such reductions will preclude the possibility of a fair return 
upon these investments. 

The Southern Railway Company is willing and hereby offers to support this 
statement by proof of the averments thereof in such form and at such time as 
may be desired by your Honorable Commission. 
I)ated this 26th day of January, 1898. 

SOUTHERN RAILWAY COMPANY, 

By SAMUEL SPENCER, 

President. 
W. A. HENDERSON, 
FAIRFAX HARRISON, 

Of Counsel. 



EXAMINATION OF WITNESSES. 



SOUTHERN RAILWAY COMPANY. 

June 8th, 1897. 
Mr. Hill, being duly sworn, says : 

Col. Henderson : 
Q. What is your connection with the Southern Railway Company? 
A. I am the Secretary of the Company. 
Q. Are you familiar with this answer that is filed V 
A. Yes, sir. This answer has been prepared under my direction. 
Q. Are the facts therein stated true ? 
(Objection by Col. Hinsdale, as too general). 

Col. Henderson : I merely w^ish him to state whether those facts are true. 
Q. Are those facts prepared by you true ? 
A. They are, sir. 
(Objection). 

Cross-examination, by Col. Hinsdale. 
Q. Do you also swear that the statement of Mr. Spencer is true ? 
A. I believe it to be true. 
Q. Do you know it to be ? 
A. I know it so far as anybody can know. 



COMPLAINTS AND DECISIONS. 205 

Q. Do you know that it is true? 

A. I know that the figures were compiled from reliable soujces. 

Q. Compiled from what sources V 

A. Prepared from the reports of the Railway Company, and from reports of the 
Interstate Commerce Commission. 

Q. Do you know that they are correct ? 

A. I believe them to be correct. 

Q. Do you know them to be correct V 

A. Yes. 

Q. How do you know it ? 

A. I am familiar with the method in which the books are kept and the method of 
distribution and division of accounts. 

Q: And because you are familiar with the manner in which they are kept, you 
are willing to swear that you know of your own knowledge that they are correct? 

A. I do not think anybody could swear in that way except the clerk who figured 
out the percentages and put down the figures. 

Q. Then you can not swear that they are correct V 

A. I did not write the figures in the book. 

P. Can you swear that the data from which this affidavit of Mr. Spencer's was 
prepared, was correct, of your own knowledge? 

A. I think my answer covers that. 

Q. Will you say yes or no? 

A. I can not say I made the origfnal calculations. • 

Q. Can you say of your own knowledge that the data from which this affidavit 
of Mr. Spencer's was prepared was correct ? 

A. I can say so upon knowledge, information and belief. 

Q. You must say so from knowledge or else not at all. Can you say so from in- 
dividual, personal knowledge? 

A. Not from such knowledge as would be required by having worked all the 
figures upon the original books from which this affidavit was prepared. 

Q. Upon what can you swear at all as to the truth of these data? 

A. Upon the knowledge that the accounts are handled by certain rules and are 
carefully handled by competent men. 

Q. And that is the sole basis of your testimony ? 

A. Sole basis of my being able to swear to the accuracy. 

Q. Do you know what the assessed value of the property of the North Carolina 
Road is in North Carolina ? 

A. I understand it to be about |8, 117, 000. 

Q. Do you know whether that is the real value of the property or only 50 or 75 
per cent of the real value? 

A. I know as a matter of experience that it would not be as much as the real 
value of the property. 

Q. Are you an expert in the construction of railroads? 

A. I am an expert so far as the knowledge of the actual cost of a railroad. 

Q. What part have you ever taken in building railroads? 

A. Familiarity with the charges and with the vouchers is sufficient to give one 
an understanding of what the cost of a railroad is, 

Q. What part have you ever taken in building a road ? 

A. I have never built a railroad. I have examined the construction accounts of 
a number of railroads. 



206 BOARD OF RAILROAD COMMISSIONERS. 

Q. Where? 

A. I have examined the accounts of the Southern Railway Company. 

Q. The construction accounts of which railroad did you examine ? 

A. Construction accounts. 

Q. The construction accounts of which railroads have you examined ? 

A. The construction accounts of the whole system. 

Q. It took you a good while to do it V How many are there in the whole system ? 

A. I do not think I can give that. 

Q. Quite a number ? In how many States? 

A. In the States of Virginia. North Carolina. South Carolina. Georgia. Alabama, 
Tennessee and Kentucky. 

Q. When did you examine the construction accounts ? 

A. From time to time. 

Q. When? 

A. I do not think I can give that. 

Q. How many years did it take you to complete this examination ? 

A. I do not claim to have made an examination of each one of the accounts. I 
said that I was familiar with the construction accounts. 

Q. How did you become to be familiar with these accounts of the Southern Rail 
way System unless you examined them ? 

A. Because I am familiar with the reorganization plan and the accounts as they 
were taken up by that plan. My knowledge has been derived from a knowledge of 
those accounts. 

Q. The reorganization plan lias nothing to do with building a railroad ? 

A. It involved the original account of the construction. 

Q. As Secretary, what did you have to do with the construction accounts, any 
how ? 

A. I have special work for the President of the company in connection with all 
the accounts. 

Q. What did that have to do with the construction accounts of the several rail- 
roads that form the Southern of that system; railroads that were built before the sys- 
tem was born ? 

A. I was testifying with regard to my knowledge of the cost of constructing rail- 
roads as ascertained by a knowledge of railroad accounts; not my understanding of 
the cost of every spoke that went into the original construction of the Richmond 
and Danville. I was not pretending to do that. 

Q. I suppose that you are familiar with them all just as much as you are with the 
North Carolina Road ? 

A. I have the same familiarity that I have testified to. 

Q. Did you make yourself familiar with the construction accounts of all the rail- 
roads leased by the Southern ? 

A. I have never examined the original construction accounts of the North Caro- 
lina Road. 

Q. Did you ever examine the original construction accounts of any of them ? 

A. No, sir. 

Q. When was the North Carolina Railroad built ? 

A. I can not tell you exactly. 

Q. Before the year 1850? 

A. I am not positive about that. • 

Q. How old were you in 1850 ? 

A. That was a little before my time. 



COMPLAINTS AND DECISIONS. ' 20? 

Q. You say it would cost more at that time to build a railroad than nowV 

A. I did. 

Q. How much more? 

A. I should make an estimate, with my knowledge of the subject, that it would 
cost from one-fourth to one-third more, with the exception of the cost of the right 
of way. 

Q. What knowledge have you of the manner in which real estate in North Caro- 
lina is assessed for taxation ? Any ? 

A. My knowledge from that respect is from hearsay. 

Q. Can you testify as a matter of knowledge that the North Carolina Road is not 
assessed up to its real value ? 

A. Yes, sir. 

Q. You can? How did you acquire that knowledge? 

A. From the actual value of the road as it stands now and the value of its stock. 

Q. What you mean to testify to is that the $8,117,000, the assessed value, is not 
the value of its stock, is that about it? 

A. No, that is not it. It is not the value of what I believe to be the cost either of 
reproduction of the property or its present value, on a basis either of the original 
cost of construction or a basis of securities issued upon it. 

Q. Do you know how much Mr. Spencer estimated the real value of that property 
to be ? 

A. I do not think he has estimated it. 

Q. How much of the $418,625.18, net earnings from all sources, were net earnings 
from intrastate traffic ? 

A. On the basis of the fair computation made in that statement, about $89,000. 

Q. How did you get that sum? How do you know it is correct ? 

A The gross earnings were figured out from actual intrastate earnings, each 
ticket and each way-bill; from the original reports and way-bills and included only 
the business that both originated and terminated in North Carolina. The actual ex- 
penses of the whole line were something over $11,000,000. Those expenses were, I 
believe, about 72 per cent of the gross earnings from all sources. The expenses per- 
taining to intrastate traffic were figured, and were found to be about S^ per cent 
greater than the general expense ratio, and it was on the basis of that expense ratio 
that the iiitrastate was calculated. 

Q. Did you make these calculations ? 

A. Yes. sir. I verified them myself. 

Q. You say of the $418,625.18 that only $89,473 is derived from intrastate traffic. 
How do you get at the $89,473 being the intrastate traffic? 

A. As I said before, the actual earnings were figured from the original reports, 
passenger and freight, and found to be $510,000. The expenses pertaining to that 
traffic were figured to be $412,000. leaving a surplus of earnings without including 
taxes. The taxes were then computed and charged on a basis of the percentage 
which the intrastate earnings of the North Carolina Road bore to the total earnings 
of the North Carolina Road, which was about 32 per cent. The intrastate propor- 
tion of taxes were about $8,000, which deducted from the $97,000, leave the fio-ures 
to which you refer, $89,473. 

Q. In arriving at the net intrastate earnings, is it not necessary for you to appor- 
tion the several expenses of operation between intrastate and interstate traffic? 

A. Yes, sir. 

Q. According to what rule would you apportion the expense of running a freight 



208 BOARD OF RAILROAD COMMISSIONERS. 

train from Greensboro to Goldsboro, each carrying intrastate and interstate 
freight ? 

A. I could not attempt to arrive at such a computation, 

Q. Then is it not guess work? 

A. No, sir. 

Q. Is it not done by simply estimating ? 

A. It might be called an estimate, but the expense ratio arrived at was less in the 
case of the intrastate traffic than 10 per cent. 

Q. Less than 10 per cent difference ? 

A. Yes, sir. 

Q. What per cent was it V 

A. When it was arrived at, it amounted to something like 8^ per cent. 

Q. How will you apply that a 8^ per cent to apportion the expenses of running 
a freight train from Greensboro to Goldsboro in which was carried both intrastate 
and interstate ? How can you get at any correct aggregate result without first 
studying the details? Is not that impossible ? 

A. The aggregate result arrived at was considered, you may call it estimated if 
you desire, as being the real expense ratio, for the reason that the expense ratio was 
less than the lowest estimate made in the Nebraska case and referred to in the com- 
plaint. 

Q. By what rule w^ould you apportion the expense of running a freight train from 
Greensboro to Goldsboro upon which was carried both intrastate and interstate 
freight ? Suppose it cost $500 to run that train from Greensborc to Goldsboro, how 
would you apportion that betwsen interstate and intrastate ? 

A. In the division of expenses of a railroad company that is not the way in which 
the expenses are arrived at. They are not kept by trains. 

Q. Well, I take an item. Take the wages of the engineer who runs that train 
from Greensboro to Goldsboro. Suppose his wages w^ere ten or twenty dollars. By 
w^hat rule would you apportion that twenty dollars between the two sides of the 
account ? 

A. It would depend a great deal on each volume of traffic as carried in the train, 

Q. Is there an account reported to the office in Washington as to how much intra- 
state and interstate freight is sent upon any one train ? 

A. It is not possible to arrive at that correctly. As to how much of that service 
was on account of intrastate and interstate, there would be a greater proportion 
chargeable to the local traffic than to the through traffic. 

Q. How much greater ? 

A. I would not attempt to estimate that. 

Q. How about the train hands, the engineer, fireman, etc.? How aro you going 
to make the apportionment of these expenses ? 

A. The proportion would undoubtedly be greater in proportion to intrastate busi- 
ness than for the other business, but you could not arrive at a division that would 
be absolutely correct. 
,Q. How do you arrive at it? 

A. There is no attempt to arrive at it. 

Q. Can you do it ? 
' A. I could not, but I suppose the can. 

Q; It would be guess work, wouldn't it? 

A. Well, there is very little in this world that is absolutely true down to a cent, 

Q. As to the expense of a passenger train. Take a train that runs from Greens- 



I 



COMPLAINTS AND DECISIONS. 209 

boro to Charlotte upon which local passengers may ride. Row mucli of tlie expense 
for running that train are you going to charge up to the local account ? 

A. The expenses are not kept in that way. 

Q. If the expenses are not kept in that way, how can you arrive at the aggregate 
amount of operating expenses that is to be charged up to intrastate passenger 
traffic V 

A. It would bean approximation if you tried to separate passenger and other 
business. 

Q. Then if it is a mere approximation, how can you swear that it is correct? 

A. It is correct, as stated. 

Q. Will you please look on page 21 of the answer herein, "operating expenses, 
maintenance of way." By what rule did yo,u apportion the expense of maintenance 
of way between the intrastate and the interstate V 

A. Apportion of the general average expense ratio plus 10 per cent. 

Q. How do you know aboat the 10 per cent of your own knowledge ? 

A. I know it from a study of such matters and my acquaintance with the ex- 
pense ratios of various roads in the country. Of the North Carolina Road partic- 
ularly, and also from what I have learned from operating officers. Of course that 
is individual knowledge. 

Q. And those officers were of what system? 

A. Of the several systems with which I have been connected. 

Q. Name them ? 

A. Southern Railway System, Union and Pacific. 

Q. When were you connected with tlie Union Pacific? 

A. From 1886 to 1895. 

Q. How long have you been with tlie Southern ? 

A. Since 1895 . 

Q. And what other systems, please ? 

A. Those are the only two systems. 

Q. There is an item on the same page— '" maintenance of equipment" $72,988.20, 
is that correct ? 

A. That is arrived at on the same basis as the item of maintenance of way. 

Q. I ask you if it is correct ? 

A. I believe it to be. 

Q. Do you know it is correct? 

A. I believe it to be an understatement of the amount. 

Q. Tliat IS simply a matter of opinion ? 

A. A matter of opinion based upon knowledge. 

Q. Take the item — '" conducting transportations" — is that correct ? 

A. That is arrived at on practically a similar basis as the other two items. The 
expense of foreign agencies, outside the State, and also the expense of commission 
were deducted in making that computation, such expenses not applying to the in- 
trastate traffic. 

Q. How about the item of general expenses, is that correct ? 

A. That is computed upon the same basis as the other items. 

Q. Upon what theory is that you make this calculation, as you have done on page 
21 of charging the entire amount of taxes and the total rental of the intrastate 
business ? 

A. I believe that that statement was considered as an object-lesson. 

Q. What is not calculated to deceive, as an object-lesson? 

1 U- 



210 BOARD OF RAILROAD COMMISSIONERS. 

A. Not at all. 

Q. Upon what principle can you charge to the intrastate traffic of the North Car- 
olina Road the entire taxes and the entire rental of the road, when the intrastate 
bvisiness does not amount to more than 40 per cent of the whole ? 

A. The statement shown at the top of the following page is a full explanation of 
the working out of the account on the basis of the intrastate proportion. 

Q. Was this not calculated to mislead? 

A. It was not. 

Q. Why was it done? 

A. To show what a comparatively small proportion of the total taxes and upon 
the surplus earned, the intrastate traffic amounted to. 

Q. Do you know that it was wrong to deduct from the profits of the local busi- 
ness the entire amount of taxes and the entire rental of $266,000? 

A. I do not think it wrong, with the statement following on the next page. 

Q. Do you not think it an improx)er statement ? 

A. I think I have fully explained that the statement was put there to contrast 
the total amount of taxes with the intrastate earnings. 

Q. Did the man who made this statement say it was incorrect? 

A. No; he left something to the imagination. If there had been any intention 
to deceive in regard to the matter, the second statement would not have imme- 
diately followed the first. 

Q. Do you know anything about the quarterly report which your company has 
hied ? Was it made up under your supervision ? 

A. I am familiar with the methods upon which it was made. up. 

Q. Maintenance of equipment is stated at $199,973.15. How much of that should 
be charged to intrastate. 

A. The entire expense ratio is 72 per cent. The figures given by you are a certain 

percentage of that. To that percentage was added 

(Witness interrupted by Col. Hinsdale asking question). 

I can not compute that without having the original figures. As I told you, there 
is a deduction taken out for foreign agencies and the commissions, which have 
nothing to do with the intrastate business. 

Q. In what way will you go about ascertaining the proportion of the $199,973.15 
(which is the amount of maintenance of way from report of the North Carolina 
Road for 1897), which is to be charged against the profits from intrastate traffic, 
according to the rule ? 

A. Having arrived at the total expenses, plus 10 per cent chargeable to interstate 
traffic, I would take the same percentage that the total expenses bear to the total 
expenditures of the line for operating expenses. 

Q. Then you can not make the calculations from the figures given ? 

A. Nobody could, because it involves deducting these special amounts which were 
taken out as not chargeable to intrastate traffic. 

Q. You say it was a little less than 10 per cent? 

A. I said it was 10 per cent. 

Q. Take it as 10 per cent and make the calculation. 

Q. After five minutes trying to make the calculation, you knew the figures that I 
gave you were not sufficient data, why did you attem[>t to make this calculation ? 

A. Because it did not occur to me that I needed those figures. 

Q. Then you Ijad forgotten the manner of making the calculation ? 

A. No. 



COMPLAINTS AND DECISIONS. 211 

Q. Do you mean to say then that it took you tive minutes to find that you had 
forgotten the rule V 

A. I had the rule, but the special deductions were lacking. 

Q. Did it take you five mmutes to find that you did not have the necessary 
figures V 

A. It maj^ have been five minutes. 

Q. If there were no deductions to make, and if the proportion of expenses of 
local traffic were the same as the through traffic, what would be the amount to be 
charged to local traffic .from that item— $199. 973. 15 V 

A. It would possibly be about $64,000, on the basis of the general average expense 
ratio. 

Q. How do you get itV 

A. The $199,973.15 is 17 percent and a fraction, as I take it, of the total expenses, 

which are $ On the basis of the intrastate percentage being the same 

as the percentage of the whole earnings, I should simply take the percentage of the 
$199,973.15, which the gross intrastate earnings bears to the gross earnings from all 
sources, that percentage being 32, would figure out, as I make it here, about $64,- 

000 ; that is without adding the 10 per cent. 

Q. How do you get at the 32 per cent? verify that calculation. 

A. Twenty-five per cent is arrived at by dividing the intrastate gross earnings, 
which amount to $510,668 by the gross earnings of the North Carolina Road from all 
sources, which, as shown in the report, amounted to $1,592,170. 

Q. Why is not the $189,000 the correct amount? 

A. Because three months are not one-fourth of a fiscal year; never were and 
nevei- will be. The earnings of some months are very much in excess of other months, 
you could not take any quarterly report as an average ; not one-fourth of the year's 
business. 

Q. That will be about $5,000 out of line ? 

A. Yes. sir. 

Q. If there were no percentage to be added, the proportion of maintenance and 
equipment to be charged to intrastate business would be about how much? 

A. About $84,000. 

Q. And $72,938 is tlie amount which is really charged? 

A. That is the amount shown in the statement. 

Q. Make the calculation on conducting of transportation, — $889,972.57; how much 
of that amount, if there were no difference of 10 per cent to be added, would be 
chargeable to intrastate traffic ? 

A. It would be the same percentage — 32 per cent. 

Q. How much would that be? 

A. It vvould be about $221,000. 

Q. How much do you find is charged in the statement of page 21 ? 

A. Two hundred and forty-five thousand, tw^o hundred and ninety-four dolhirs 
and twenty-nine cents. 

Q. What is the total of general expenses for 1897 ? 

A. The report to the Commissioners for that year reads $31,907.14, 

1 do not know that this printing is correct. I am merely working from the printed 
report. 

Q. How much of tliat should be charged to intrastate ? 
A. That will figure out about $19,828. 
Q. How mucli is charged on page 21 of the answer ? 
A. Twentv-two thousand dollars. 



212 BOARD OF RAILROAD COMMISSIONERS. 

Q. What ivS the amount of expenses that go to make up that aggregate of general 
expenses ? 

A. Twenty-four thousand, four hundred and forty dollars and ninety-six cents. 

Q. What will be the amount that should be charged to intrastate commerce ? 

A. I make it $iT,828. 

Q. How much was cliarged in the report for 1897 for law expenses to intrastate? 

A. As shown by this report which is handed to me there was $5,900.98 charged to 
law expenses of the North Carolina Road in the quarter endmg March 31, 1897. 

Q. Do you know the average population of the territory traversed by the North 
Carolina Road? 

A. No. sir. 

Q. Do you know the average population per mile in North Carolina '.•' 

A. I have never worked it out. I understand that it is 88. 

Q, W^here did you get that information? 

A. That information was partly from the census. 

Q. Do you not know tliat the population along the line of the North Carolina Rail- 
road is four or five times 88 ? 

A. I have no information on that. I suppose that it may be. 

Q. If in thecounties of Wayne, Johnston, Wake. Durham, Orange. Alamance, Guil- 
ford, Davidson, Rowan, Cabarrus. Mecklenburg, the average per square mile is about 
100. do you think that it is fair to estimate upon the percentage for the whole State 
at 88 : and would it not have been fairer to have taken the population of tlie coun- 
ties through which the road runs ? 

A. The intrastate traffic is drawn from tlie less populous sections of the State as 
well as the sections through v.'hicli the roads run. I should not think the calcula- 
tion would be a correct one based on the population of those counties. 

Q. Is travel not much more likely to be increased when the rates are lowered, if 
the populations is dense than sparse? 

A. If it is dense in tlie sense of the large cities being close to each other, it would 
have a tendency to increase travel perhaps. 

Q. Then you think it would not make any difference how thickly populated the 
country was unless the large cities were close together? 

A. I think that is the chief element that enters into a stimuhition which might 
be produced by reducing lates. I sliould say that where a fare was tifty cents or a 
dollar, tliat a reduction of ten cents in fare would not have any great effect in stim- 
ulating additional travel, and that api)lies to the question of distance bt-tweeii large 
cities; people living twenty-hve miles away from a large town would have to pay 
seventy-hve cents to go there, and a reduction would not cause them to tiavel on 
the other rate unless they had something to go for. 

Q. Is not the main inducement to inccease of travel by reducing rates in a tliickly 
populated country, that the stations are close together? 

A. I think that a reduction in rates in suburban regions would cause people to 
move into the suburbs that had been in the cities, and thus might increase the 
travel. 

Q. You think that is the only way there would be any increase of travel by re- 
ducing the rates? 

A. 1 think so in a sparsely settled country. I think that has been the experience 
in the case of previous reductions— that it has not increased local business. 

Q. Do you not know that everywhere there has been a reduction of rates, there 
has been a corresponding increase of business ? 

A. No, sir, I do not. 



COMPLAINTS AND DECISIONS. ^ 1 '^> 

Q. Do you not know that that has been the uniform result in the countries of 
Europe ? 

A. I have not studied the (juestion as applied to Europe. 

Q. What books have you studied on the subject V Have you ever read '' Todd's 
Railroads of Europe and America?" 

A. I do not know that I have ever read any books. 

Q. What have you studied ? 

A. I have had a good deal of conversation with practical men who have made it 
a study, and in that way have made it a study, and also used a little common sense 
on it. 

Q. Have you ever known a reduction of rates to be followed by an increase of 
travel V 

A. I do not think that is a matter which could be directly traced to that cause. I 
do not pretend to be testifying as an expert on the effect of reducing rates on the 
increase or decrease of travel. 

Q. You are swearing to this? 

A. I am just giving my opinion. 

Q. You have no knowledge? 

A. I have knowledge as a matter of general information on the subject. 

Q. Have you ever known a reduction of rates to be followed by increase of 
travel ? 

A. No. 

Q. Have you made i:\ calculation as to how much loss would be involved in the re- 
duction of the rates proposed? How much loss to the North Carolina Railroad 
Company ? 

A. Approximately so. There would have been a loss in 1897 to the Southern Rail- 
way of about $74,000. 

Q. How do you get at that? verify your calculation. 

A. The calculation is verified in the answer. 

Q. Just an estimate? 

A. No, sir. 

Q. What is it? 

A. It is a very close approximation. 

Q. Do you not call that an estimate ? 

A. No, sir : a very close approximation is so close as to be ver^^ true. The reduc- 
tion in the first-class rates will be 23 per cent ; reduction in the second-class rates 
would be 27 per cent; the exact reduction, therefore, in the earnings would lie 
somewhere between 23-27 per cent ; and as stated, it is, roughly speaking, 25 per 
cent on the actual intrastate earnings. Therefore. |74,000 is a very close approxi- 
mation. 

Q. I think you said the passenger tickets were apportioned? How was this 
done? 

A. I should have to refer to the person who had charge of that. 

Q. Do you know how ? 

A. I know that it w^as arrived at on the basis of actual traffic. I mean that if a 
man rode between Charlotte and Greensboro the amount of his fare w^as included 
in the intrastate earnings ; if he rode between Asheville and Greensboro and so on. 

Q. How^ is that reported to the head office? 

A. As to the form of the blanks, and that part I should have to refer you to the 
person who actually puts down the figures. 

Q. Then you can not testify as to the correctness of the appraisement ? 



214 BOARD OF RAILROAD COMMISSIONERS. 

A. I answered that question in the first instance with regard to the whole of my 
testimony ; that I did not receive the ticket reports and therefore can not answer 
of my own knowledge. 

Q. Do you call a man who uses one of these mileage tickets and travels from 
Raleigh to Washington an intrastate passenger or an interstate passenger ? 

A. I do not know how the mileage ticket question is handled. The man who 
handles that can tell you. 

Q. Were no mileage tickets issued on your road ? 

A. I suppose so. 

Q, By what rule were those mileage tickets apportioned ? How could you tell 
intrastate from interstate ? 

A. The conductor reports them. 

Q. As a matter of fact, are those mileage tickets counted? Do you know ? 

A. I have never superintended the machinery of counting those mileage tickets. 

June 9th, 1898. 

Cross-examination of Mr. Hill continued : 

Q. I wish you would state what figure it is, or what datum is lacking, on account 
of which you are not able to make the calculation as to how much of the mainten- 
ance of equipment item, as reiwrted in 1897, ought to be charged to intrastate 
traffic ? 

A. I said that in making the detailed calculation the figures as shown in the 
report were not in the form in which I had them in making the compilation, and 
therefore when you asked me to do this, I did not do it. The Railroad Commis- 
sioners' Report, page 256, you will see that in the item of mairitenance of way the 
total shown is $179,434.86. Now the figures which were used in the original com- 
putation included in maintenance of way an item of betterments, which is not 
shown in this report. In other words, the statement you gave to me was not a 
statement I could take up without study and figure out the same results whi(^i I 
figured out from the original statement. 

Q. The $179,424.86 did not include all? 

A. Did not include that. 

Q. Could you, then, take the item of conducting transportation, aggregating 
$689,972.57? 

A. I could not yesterday, and I explained why. 

Q. What is it that is lacking ? 

A. The figure that is lacking is the deduction which we made from the total intra- 
state conducting transportation expenses, on account of certain large expenses for 
foreign agencies and commissions, which do not apply to the intrastate trafiic. I 
did not have the figures which were deducted, therefore I could not make the com- 
putation and bring out the result as in the answer. 

Q. How is it with general expenses, $61,907.14, the total of general expenses? 

A. That item could have been worked out. 

Q. Will you work it for me ? 

A. Yes, sir. 

Q. How much of it ought to be charged to " intrastate?" 

A. In order to make the matter clear I shall have to start at the beginning and 
explain how the computation of the whole was arrived at. 

Q. I ask you to take the item $61,907.14 and make the calculation as to how much 
of that is interstate ? 



I 



COMPLAINTS AND DECISIONS. 2 1 5 

A. That depends on the percentage, which is based on something further back. 
The calculation is 86.47 per cent of the $61,907.14. 

Q. Why do you multiply by 36.47? 

A. The gross earnings from all sources on the North Carolina Road as shown in 
the report for 1897 w^ere $1,592,218. The expenses of operation, exclusive of taxes, 
were $1,148,772.59, therefore the ratio was 72.15, that is to say it took 72.15 cents 
operating expenses to pay for one dollar of gross earnings. To this general expense 
ratio, taking the estimate used in the Nebraska decision, which w^as regarded as an 
extremely low estimate of the additional cost of handling local traffic, as above the 
general expense ratio for all traffic, the Nebraska decision added 10 per cent to 
such general average expense ratio. In that case adding 10 per cent to 72.15 with 
the basis applying to intrastate traffic is 82.15 percent. Now the intrastate gross 
earnings arrived at upon a careful and accurate basis were $510,066.19 of the North 
Carolina Road for the year ending June 30, 1897. If that business had been operated 
at the expense ratio just arrived at, that is multiplying $510,066.19 by the ratio 82.15, 
that would make the total intrastate expenses $419,019.37. Having thus arrived at 
$419,019.37 as total intrastate expenses, exclusive of taxes, we next ascertain wiiat 
per cent that $419,019.37, intrastate expenses, is to the total expenses of the North 
Carolina Road, namely, $1,148,772. The percentage thus arrived at is 36.47. That 
36.47, as you will see, would distribute those expenses equally over all, and that was 
done in the case of the general expenses, in the case of maintenance of way, and 
maintenance of equipment. In the case of conducting of transportation, there 
being an item contained therein of foreign agencies and commissions, none of these 
applying to intrastate traffic, reduction was made from the total conducting trans- 
portation expenses by which such expenses as arrived at on the general average per- 
centage of 36.47 were reduced in about the sum of $6,000. 

Q. I understand, then, that you can make the calculation on maintenance of 
equipment ? 

A.' Yes. 

Q. You do it in the way just indicated? 

A. Yes. 

Q. You made an effort yesterday to do that and failed ? 

A. Oh, no, sir. 

Q. On this very item did you not try and fail, stating that there was some data 
you were not in possession of? 

A. That is the point. I could not make that until I could arrive at the total of 
expenses. I could not arrive at that proportion until I could arrive at the total. 

Q. Do I understand now that you did make the effort yesterday ? 

A. I made an effort in the absence of sufficient information, data, and figures. 

Q. Will you please tell me what you mean by 32 per cent ? 

A. The 32 per cent was the per cent of the intrastate earnings to the total earn- 
ings of the North Carolina Road for that year. 

Q. Supposing that there were no allowances to be made on account of extra cost 
of intrastate business and therefore that the expenses were to be proportioned be- 
tween intrastate and interstate in the proportion of the total volume of business 
that each has, I wish to know how much of the $199,973.15, the total of mainten- 
ance of equipment, shall be charged to intrastate business? 

A. With that theory it would be 32 per cent. 

Q. And that would make how much? 

A. I make it $63,991. 



216 BOARD OF RAILROAD COMMISSIONERS. 

Q. What is the difference between the amount which you have actually appor- 
tioned for that item and the amount just given ? 

A. The amount actually apportioned to the intrastate business is $72,988.20, the 
difference would be $8,946.80. 

Q. What per cent is that of the $199,973.15? 

A. About 4 4-10 per cent. 

Q. If you add 10 per cent under the Nebraska decision, to what would you add it ? 

A. Ten per cent of the gross earnings. 

Q. Ten per cent of the $199,973.15? 

A. Oh, no. 

Q. Ten per cent of what gross earnings ? 

A. Ten per cent of the intrastate gross earnings. 

Q. What item of gross earnings do you calculate the 10 per cent on ? 

A. Five hundred and ten thousand dollars. 

Q. Ten per cent of that ? 

A. Yes. sir. 

Q. If you add 10 per cent to the operating expenses for the intrastate business, 
you take that 10 per cent from the expenses of the interstate traffic necessarily? 

A. If you attempt to strike a balance, of course. 

Q. I ask you if that will not make the difference between the cost of intrastate 
operation and interstate operation more than 10 per cent ? 

A. Yes. sir. 

Q. Then why did you say yesterday that you calculated this on a basis of 8 and a 
fraction per cent ? 

A. Eight and a fraction per cent above the average general expense ratio. 

Q. Did you not state a moment ago that the 10 per cent was 10 per cent of the 
gross receipts ? 

A. Of the gross intrastate receipts. 

Q. Now you say that the 10 per cent is 10 per cent of the proportion that the 
gross intrastate receipts bear to the gross receipts? 

A. No, it is not a proportion of the gross intrastate receipts. It is the expense 
ratio we are talking about. It is not a comparison of the intrastate and interstate 
earnings. For illustration, supposing that its costs seventy cents in operating. ex- 
penses for eacli dollar earned of the North Carolina Road on all the business. Now, 
under the rule as applied iu the Nebraska case, it was figured that it would cost 
eighty cents ; if it cost seventy cents to handle the whole business, it would cost 
eighty cents to handle the intrastate business, and that is the basis on which the 
computation is arrived at. 

Q. What are the gross earnings ? 

A. Five hundred and ten thousand sixty-six dollars and nineteen cents. 

Q. What proportion of the passenger fares do the mileage tickets constitute ? 

A. I can not tell you that, sir, without the books before me. 

Q. Can't you make an estimate ? 

A. No, sir. 

Q. What proportion of the mileage tickets are apportioned to intrastate and what 
to interstate traffic? 

A. As I understand it, and have been informed and believe to be true, the mile- 
age tickets when taken up are returned by the conductor and reported between 
which stations they are used. That will make them intrastate if the man starts at 
one point in the State and left at another in the State. 



COMPLAINTS AND DECISIONS. 217 

Q. So that would make a lar^e amount of them in all probal)ility intrastate on the 
North Carolina Road ? 

A. I can not say as to that. 

Q. Would not, according to the rule you have just stated, every dollar of mileage 
tickets be charged to intrastate traffic, on the North Carolina Road, that road lying 
entirely within the State of North Carolina ? 

A. You do not charge earnings to the road. 

Q. Are the mileage tickets considered and charged up as intrastate or interstate? 

A. The course of that passenger is traced as nearly as possible. 

Q. Have you not just said that on the North Carolina Road where a passenger 
us,ing a mileage ticket gets off and on within the State that it would be reported as 
intrastate? 

A. Yes, sir. 

Q. Then if tliat is the case would not every dollar of mileage tickets on the North 
Carolina Road be considered intrastate earnings? 

A. I should say not. He might ride from Charlotte to Washington. 

Q. How could he do so on the North Carolina Road ? 

A. It would be reported that that passenger was moving on. 

Q. What form is used for that purpose : did you ever see one? 

A. I think that some of the conductors run through. What I meant was that so 
far as the conductor could locate the starting point and destination of the passen- 
ger he reported those mileage tickets or books. 

Q. If a mileage-book passenger !-,hould get on at Raleigh on his way to Washing- 
ton, he would be reported as intrastate between Raleigh and Greensboro, wouldn't 
he? 

A. I suijpose so. I can not testify absolutely as to that. 

Q, Are yqu testifying upon knowledge ? 

A. I am testifying on what I know on general information on this particular 
point. 

Q. Do you know how many dead-heads rode on your road last year, the North 
Carolina Road? 

A. No, sir. 

Q. Have you any means of arriving at that information ? 

A. Not directly. 

Q. Indirectly? 

A. I suppose that it could be determined. I can not testify as to that. 

Q. I suppose there is record ? 

A. That does not pass under my supervision, 

Q. Does the conductor report them ? 

A, I suppose he does. That is on information and belief, 

Q, Those reports do not come to you ? 

A. No, sir. 

Col. Henderson : 

Q. In much of your examination here as to these matters, you have given your 
opinion. I would like fol- you to state what experience you have had in such mat- 
ters, for how many years? 

A. I have had thirteen years experience in railroad work. I started with the 
Union Pacific in 1885 ; during that time I was in the auditor's office most of the 
time, starting from a clerkship and went through pretty much all the work until I 
became chief clerk ; then I was made assistant to the auditor, then assistant to the 



218 BOARD OF RAILROAD COMMISSIONERS. 

first vice-president as an expert on statistical matters in order that operating ex- 
penses might be analyzed and that class of work performed in the vice-president's 
office. After that I was appointed in charge of the office of the Receivers of the 
Union Pacific in New York City and was secretary there. Following that I came 
to the Southern in 1895. 

Q. Have you ever had special experience in analyzing accounts with respect to 
division between two roads? 

A. I have had a great deal of experience in that direction. While with the Union 
Pacific I was called upon to make examination of accounts between the Union 
Pacific and other companies. I examined the accounts of the Missouri and Pacific 
to determine whether or not one of the lines leased by them was being treated 
fairly in the division of expenses. I went through all the books, and of course 
made a full report on that. 

Q. Was that the service of an expert ? 

A. Such matters would require an expert in accounts, and also in determining 
what would be fair and proper in each case where arbitrary percentages were used. 
Not a mere matter of taking up figures. Among other experiences I was employed 
by the reorganization committee of the Oregon Navigation Company to examine 
the books of the Union Pacific Company and its receivers and to determine similar 
questions with respect to the Oregon Railway and Navigation property as to whether 
it had been fairly treated in the division of expenses between the Union Pacific 
and the Oregon Navigation Company. Then I have made a number of other exam- 
inations along the same line. The accounts of a system as a whole, including all 
the earnings and expenses, can be stated with exactness. When it comes to a 
division of those accounts as between the whole system and individual parts there 
must necessarily be an approximation based on percentages which are based on 
fairness and good reasoning. No statement of division of expenses would ever be 
exact. It must be based, to some extent, on percentages, such as percentages of 
railroad gross earnings and similar bases. 

Q. Is there ever an estimate made of expenses and earnings based upon a show- 
ing of the figures for one-quarter of the fiscal year ? 

A. Never, The figures for one-quarter of the year or for any three months of a 
year can never be considered as one-quarter of the year's results. It is very easy to 
understand that, because there are many expenses which might go into one month 
that would make the net in that month below the normal, so that the only figures 
which can properly be taken are based upon returns for twelve months. 

Q. Is, then, the result for any three months a fair basis for considering the ope- 
rations of a railroad at all? 

A. No. In point of fact the quarter from July to September would be lighter 
than the average. The next quarter would be very much heavier. 

Q. Then this report of three months intrastate operations of the North Carolina 
Railroad, which has been filed, is not a fair basis? 

A. Not for a year's period. 

Q. When does the fiscal year of a railroad begin? 

A. Most of the railroads have adopted the fiscal year of the Government, which 
ends June 30tli. That is the case with the Southern Railway Company. 

Chairman Caldwell : 
Q. Where would the expenses of damages against a railroad appear? In what 
account ? 

A. They would appear in the account of losses and damages. 



COMPLAINTS AND DECISIONS. 219 

Commissioner Pearson : 
Q. Who makes out that report ? 

A, That was made out by the Auditing Department of the company. 
Q. Had you anything to do with itV 

A. I verified it to satisfy myself that the results obtained were upon the basis 
which was to be used in making the report. The Auditor prepared the figures. 

Col. Hinsdale : 

Q. Do you know why it was that the North Carolina Road or the Southern omit- 
ted to furnish any of the data called for in this report pertaining to through busi- 
ness ? 

A. I do not think I could testify as to that. I think it was understood that the 
intrastate business was wanted. " - 

Q. That is one of the blanks to be filled in the blanks furnished by the Commis- 
sion ? 

A. There are a good many blanks that are filled out incompletely. 

Q, From whom did you get the understanding that the through business was not 
to be included in this report ? 

A. I suppose that matter was determined by the President. 

Col. Henderson : 

Q. Did you know that those blanks were sent out? 

A. I did not. 

Q. Did you know it was compiled in the present calendar year? 

A. I have been told it was. 

Q. Was it before the decision of the Nebraska case ? 

A. I think it was. 

Q. Was not the Southern Railway Company advised, in view of the Nebraska de- 
cision, that the reports to be made to State Railroad Commissions should be limited 
to intrastate business? 

A. That was my understanding. 

Examination of Mr. Hill concluded. 

Mr. Harrison : 
Mr. F. S. Gannon, being duly sworn, says: 

Q. What is your connection with the Southern Railway Company? 

A. Third Vice-President and General Manager. 

Q. What has been your railroad experience ? 

A. I began railroading in 1868 as a telegraph operator. I remained with that road 
three or four years; was made station agent, then I left ; then I went to the New 
York System as clerk in the President's office ; had several changes until I was made 
chief train dispatcher in 1873 ; was with the Long Island Railroad from 1875-78 ; 
was with the Baltimore and Ohio until 1881 ; General Superintendent of the Louis- 
ville and Nashville 1881 to 1886 : General Superintendent and finally General Man- 
ager of the Staten Island System 1886 to 1896 ; General Superintendent of the Balti- 
more and Ohio 1888 to 1897 ; came to the Southern January, 1897. 

Q. What are your present duties with the Southern? 

A. General charge of the operations and maintenance of property. 

Q. In your opinion, as an operating officer of railroads, will you please state what, 
in your opinion, is the relation of the expenses of local business to through business, 
or general business? 



220 BOARD OF RAILROAD COMMISSIONERS, 

Col. Hinsdale : 
Q. Have you any actual knowledge of the facts as to the North Carolina Road V 
A. Yes, sir. 

Mr. Harrison : 

Q. In your opinion, as an operating officer of railroads, will you please state w^hat, 
in your opinion, is the relation of the expenses of local business to through business, 
or general business V 

A, The relation of the local to the through will vary as between roads almost con- 
stantly. I daresay it would be difficult to find two roads that use the same ratio. 
It depends largely upon the volume of traffic of both kinds. That would be a deter- 
mining factor in the relation of the local to the through, — the volume of business 
first, so that there might be a variation of 10 per cent on one road and 25 per cent 
on another. 

Q. That is to say the local business may be from 10 to 25 per cent more expensive? 

A. The local business is more expensive to handle than the through business. 

Q. You have had experience in the operations of the North Carolina Road. Will 
you please state first, what in your opinion is the relation of the expenses of the 
local business on the North Carolina Road to the expenses of the through or general 
business. The North Carolina taken as a wliole V 

Question repeated. 

A. Taking the line between Greensboro and Gold sboro as an illustration : There 
we run three passenger trains each way— one for through business and two for local 
business. We run four freight trains each way — three for through business and 
one for local business. Now, in the movement of the freight business, three loco- 
motives and crews, consisting of five men each, are engaged, and in the local busi- 
ness three locomotives and crews, consisting of six men, are employed. The three 
crews and locomotives in the through business handle ninety cars and make the 
run in about eight hours. The three engines and crews engaged in the local busi- 
ness move about i^ixty cars per day, and are engaged from eight to ten hours each 
day. In other words, one engine and a crew of five men will handle thirty cars in 
the through business ; one engine and crew of six men will handle twenty cars in 
the local businss and take longer time. The men employed on the local train are 
paid higher rates than those on the through trains. The coal consumed is prac- 
tically the same, as the engine of the through train of thirty cars will handle them 
with practically the same amount of coal that is consumed by the local engine mov- 
ing twenty cars, so that the ratio of fuel expense is practically the same, with the 
labor being higher in the local business than in the through. The men in the local 
service are paid more per day or per run than those in the through. 

Q. An engine running ten hours would use more coal than one running eight V 

A. Yes, because of being in more constant service. An engine on the local busi- 
ness, on account of frequent stops, consumes much more coal. 

Q. Is not the proportion of coal used, for the amount of traffic handled, greater 
for the local than the through V 

A. Yes, just as two is to three ; it is twenty cars to thirty. 

Q. Will you state the general deductions? 

A. In the case of the passenger service, local business figures at practically the 
same figures. There are two engines and crews engaged in the local business, as 
against one in the thorough business. In the expense of train service. I do not 
think there is any question but what it costs more than 80 per cent more to do the 



COMPLAIJNTS AND DECISIONS. 221 

local business tlian the throu^'h business. I should say ~)0 per cent in tliose items 
of expenses. 

Q. How about the expense of stations and station agents with respect to the two 
classes ? 

A. Taking this line again, if it only had through business to handle, there wcmld 
be no necessity for station service to any appreciable extent outside of Greensboro, 
Goldsboro. Durham and Raleigh. It is fair to charge the other stations on that line 
to the local business, as they are maintained almost entirely for the development of 
the local business, for the handling of local business. I do not know how tliat 
would figure out in dollars and cents, but the station service is greater, I know, 
than the expenses of the four stations mentioned. 

Q. Will you state again your general conclusions as to the relation of the expenses 
of the local to the through business ? 

A. I feel sure that it can be shown beyond question that it costs between Golds- 
boro and Greensboro 30 per cent more to handle the local business. 

Q. How about between Greensboro and Charlotte? 

A. There the conditions differ somewhat. We run two local passenger trains 
each way and two through passenger trains each way. The expense of running 
those trains is. for all practical purposes, the same. The through trains consist of 
seven or eight cars and the local trains of three or four cars. The frequent stops of 
the local trains, of course, increase expenses, wear and tear, while the sjDeed of 
those trains is just as great as that on the through trains between stations. The 
four-car local train on the main line between Greensboro and Charlotte shows just 
about half of the earnings of the through train, while the expenses are practically 
the same. Now in moving freight, there are four through trains to one local. The 
train expenses of moving the local train, however, is 30 to 40 per cent greater than 
the expense of moving through freight trains. The tonnage of the local train will 
not average 65 per cent of that of the through, while it costs more to move that 65 
per cent than it does the through freight. 

Q. The local business on the main line is done on the same conditions as that 
between Goldsboro and Greensboro? 

A. Yes. 

Q. What, then, would be your conclusions as to the relation of the general ex- 
penses of the line between Greensboro and Charlotte ? 

A. I do not think there is any question but what the expense of handling the 
local business on the main line exceeds 30 per cent. If the through business can be 
handled at 60 per cent, it will cost 78 to 80 per cent to handle the local, in the train 
service line. On a basis of 60 per cent for through. I think on the North Carolina 
Road it will cost 85 per cent to handle the local, 

Q. Are there any unusual expenses incident to the through business that are not 
incident to the local business? 

A. Yes; but as a rule, those unusual expenses are so absorbed in the greater vol- 
ume of traffic that the average remains lower. 

Q. How would that atfect your ratio, if at all ? 

A. That is a hard question to answer off-hand, but I will venture to say 5 per 
cent. 

Q. Those expenses are not, however, charged to the North Carolina Railroad, are 
they ? 

A. No ; they are charged to the through business. 

Q. You have estimated the relation of the expenses of local traffic to the ^eneral 
business to be 30 per cent greater in train service. Is that correct ? 



222 BOARD OF RAILROAD COMMISSIONERS. 

A. It will exceed 30 per cent ; that is inside the actual, I am sure. 

Q. Then you would say that an allowance of 10 per cent in excess in the expense 
ratio for the local business is a small allowance V 

A. Yes, in the case of the North Carolina Road. It is too small ; smaller than 
the fact. 

Q. Please state similarly with regard to the expense of maintenance of way and 
maintenance of equipment. 

A. I can not arrive at that in the same. That must. I think, to a great extent, 
be reached arbitrarily, which would be, in my opinion, on a basis of ton one mile 
and passenger one mile as the local is to the whole. I think the expense of main- 
tenance can be divided on that basis and in that way. 

Q. What effect would that have upon the proportion of local earnings to the 
through earnings V 

A. That would have to be figured out. The ratio of one road is not in any way 
applicable to another. 

Cross-examination, by Col. Hinsdale : 

Q. Did I understand that in estimating the proportionate cost of traffic of the 
smaller stations, other than the four stations named, were charged up to local trafltic ? 

A. No, not- charged up on that basis. 

Q. What did you say in rei;ard to those smaller stations? 

A. Explaining how I arrived at the difference in cost of moving the intrastate 
and the interstate, I said that it would be practically fair to estimate that all the 
station expenses between Goldsboroand Greensboro, excepting Durham and Raleigh, 
was practically chargeable to this business. 

Q. Is it not a fact that in all of these smaller stations a large proportion of the 
freight business is freight that is brought into the State, shipped from northern 
marts? 

A. I do not know what the proportion might be. 

Q. Do you not think that it is a large proportion— the freight business of each of 
these smaller stations? 

A. I do not. I think the average of the North Carolina business is intrastate bus- 
iness ; is considerably greater, taking all those stations together, than the interstate 
business. 

Q. Can you give me a general idea as to what is the character of the freight busi- 
ness of any one of these stations ? 

A. Fertilizer, cotton, lumber, general merchandise. 

Q. Taking general merchandise : A very large proportion is general merchandise : 
would you be willing to say that as much or more than one-half is general mer- 
chandise ? 

A. Yes, I think so. 

Q. The general merchandise is merchandise that is received by merchants who 
have their stores? 

A. Yes, sir. 

Q. Don't you know that the merchants, as a general rule, supply tliemselves 
with what they sell from northern marts rather than from places in North Carolina ? 

A. I think the majority of the small stores are supplied from distributing centers, 
such as Greensboro, Raleigh, etc. 

Q. What proportion are supplied from outside the State, one-fourth ? 

A. Possibly one-fourth. 

Q. In regard to the shipping of produce that is raised along the line of road ; cot- 



COMPLAINTS AND DECISIONS. 223 

ton, for example — don't yoa know tliat a consideral)le portion of the cotton that is 
shipped from these smaller stations is shipped north V 

A. No, sir, the greater part of it is shipped locally ; the most of it to Charlotte. 

Q. Do you not think as much as one-fourth is shipped out of the State V 

A. I think not, sir. 

Q. Do you not know that a great deal of cotton is purchased by cotton buyers 
from Raleigh and Durham and shipped by them directly north? 

A. Yes, that becomes interstate business. It was shipped by them to local points 
and this enters into the calculation. 

Q. What proportion, would you say, of the cotton shipped along the line of road 
might be considered as interstate business, one-fifth ? 

A. I think it safe to say 20 per cent. 

Q. Will you say the same thing in regard to the other farm commodities raised 
along the line of road V 

A. Yes, sir. 

Q. How is it in regard to passengers? Are there not quite a number of persons 
who buy tickets at these stations for points outside the State, and who arrive at 
these stations from points outside the State ? 

A. Yes, sir. 

Q. Will you give an estimate of the interstate — the proportion? 

A. It is known to be 32 per cent, or about that. 

Q. In view of the fact that 20 per cent of the farm commodities are shipped out- 
side the State, and 32 per cent of the passengers that get on and off at these smaller 
stations are interstate, is it exactly fair not to count the smaller stations as doing 
interstate business, as well as the termini and Raleigh and Durham ? 

A. No part of those outside expenses is charged to the intrastate business. 

Q. That is the reason, then, that you do not credit to intrastate business that 
proportion of the business that comes to and from the smaller stations? 

A. In my conclusion that is so. 

Q. Expenses are pretty heav}'- ? 

A. Yes, sir. 

Q. What expenses do you think chargeable to the entire business in North Caro- 
lina, interstate and local, of this character? 

A. I could not answer that without consulting data. 

Q. Give an estimate? 

A. I should not want to risk that. 

Q. It must be very large indeed? 

A. Well, no ; I think wdien you take the expenses of your four important stations 
out and charge them to your outside expenses, that it is a very liberal estimate in 
favor of domestic expenses. * 

Q. Were you ever called upon to make .just this calculation before? 

A. No. 

Q. It is not a calculation that is frequently made ? 

A. No. 

Col. Henderson : 

Q. While you take out the expenses of those four large depots and charge them 
exclusively to the interstate business, you understand, I presume, that much local 
business is done at these places, but you take it out and charge it all to interstate? 

A. Yes, sir. 



224: BOARD OF RAILROAD COMMISSIONERS. 

Col. Hinsdale : 

Q. In making this calculation, you take Durham and Raleigh and give all thei*" 
business to interstate V 

A. No. sir, just the expenses. 

Q. All the expenses to interstate? 

A. Yes, sir. 

Q. Do you not know that a very large proportion of Durham, Raleigh, Greens- 
boro and Goldsboro are intrastate business ? 

A. Yes, sir. 

Q. So that in making this estimate there is a great deal of guess work ? 

A. In analyzing your station expenses you must approximate, based upon the 
best information j^ou can get. In the train expenses you can get that almost 
exactly. 

Q. You have .spoken of some through trains and passenger trains. Take the pas- 
senger train — the train that leaves here for Greensboro at 3.30 p. m. What do you 
call that ? 

A. That is a local. 

Q. Does that not connect with the northern bound train at Greensboro ? 

A. It meets the train that left Charlotte at — o'clock. The second train has 
through connection ; the train passing here in the afternoon. 

Q. That has a through connection. You call that, however, a local train. Don't 
you know that upon that train a good many through passengers ride? Give me tlie 
proportion ? 

A. I do not know on that particular train. Local trains do handle some intrastate 
trafffic. as the through trains also liandle the intrastate and you could only get at 
that exactly by following it up in detail every day ; but the two trains we desig- 
nate as local would be run. and are run, practically, without regard to the through 
needs : they are run for local accommodation. 

Q. But they carry through passengers also ? 

No answer. 

Q. A large number of locals ride upon these trains? 

A. Not a large number. The trains earn about sixty cents per mile, and in round 
figures one-third of that in the whole passenger service is through business, or 
twenty cents a mile. 

Q. How do you take into account the receipts? 

A. Taking our train service between Goldsboro and Greensboro as a basis : In one 
case it costs $1 to move thirty cars and in the other case it costs $1 to move twenty 
cars. In that item of train service is a difference of 50 per cent. Other figures 
must be arrived at by taking your passenger mile as a basis, or probably work out 
your train mile as a basis, will bring the whole less than 50 per cent to handle your 
cars. 

Q, Did you not bring the 50 cents down to the 10 cents by taking into the cal- 
culation the fact that thei-e were quite a number of items, and very large ones, too, 
that must be proportioned according to the volume of business? 

A. Yes. 

Q. Did you take in consideration at all the question of receipts from freight ? 

A. In a general way, yes. It had an influence in making up the estimate. 

Q. If the difference in tlie cost of transportation of local traffic and passengers is 
from 10 to 20 per cent greater than the cost of transportation of through freight, 
and if the charges for transporting local freight and local passengers are from 25 to 



I 



COMPLAINTS AND DECISIONS. 225 

60 per cent greater than the charge of transporting tlirough passengers and tlirougli 
freights, would it not more than compensate for the increased expenses? 

A. Oh, yes. if you put 20 per cent against 40 or 50. 

Q. You can not state what is the exact proportion ? 

A. No, sir. 

Q. If you were to attempt to proportion the different expenses of the transporta- 
tion of local and through passengers and freights, it would be very difficult to do it. 
You would have to make almost an arbitrary division V 

A. Yes, sir. 

Q. Take the item of the cost of the train service of the passenger train— the engi- 
neer and crew ; you could not tell exactly how to proportion that between the 
through and local, could you '? 

A. There are two ways to arrive at that ; one is the cost of through train service 
against that of the local train service. Another would be to divide t^iat train ex- 
pense on the basis of passengers liandled by those trains — intrastate and interstate 
business. 

Q. Do y<>u know as a matter of fact wliether the data was preserved and filed 
'from which a calculation of this sort could be made V 

A. I do not know just what the Auditor does. 

Q. You do not know whether they undertook to calculate the intrastate and in- 
terstate of each train ? 

A. I can not say they did. wliile they may have done so. 

Q. If you want to charge through train service to interstate and your local train 
service to domestic business, per train miles, say 1,000 a day, how would you divide 
that exuense of the 1.000 miles upon the basis of passenger miles? 

A. To do that the conductor must make his report to show just how many through 
and how many local passengers were on that train. 

Q. I understand you to say that you have kept such report, showing the number 
of passengers, intrastate and interstate. For what is it made ? 

A. Several reasons. One is to keep track of the development of each station ; an- 
other is to supph^ connecting links on through tickets. 

Q. Would either of these objects be forwarded by keeping an account of how 
many through and local passengers rode on that particular train ? 

A. Yes, sir. the conductor leaves Jersey City with 100 passengers ; his rejoort will 
show the number of passengers on at Jersey City and from every point between 
there and Philadelphia to each point of that division, and also the number of tickets 
he had. Indeed they have quite an elaborate statement. Wlien he finishes his trip 
his train report is a complete record of the train he handled. 

Q. Why do you wish to preserve the data of the number of passengers that travel 
on that train ? 

A. The General Manager may ask for. at any time, the statistics of any particular 
train. We are obliged under the interstate law to show in detail the through and 
local business. 

Q. Do I understand that tlie Southern Railway Company tabulates and has a 
record of that sort, showing the number of through and local passengers on each 
train ? 

A. In my year and a half with them I have never seen a conductor's report. I 
was only talking about the report I have seen. I do not know just what our con- 
ductors' form is. 



1 15 



226 BOARD OF RAILROAD COMMISSIONERS. 

Q. Do you know whether those passeno^ers who have mileage tickets or books are- 
treated as intrastate and what proportion as interstate passengers? 

A. In the case of the North Carolina Road the conductor between Goldsboro and 
Greensboro reports and turns in the mileage tickets collected on that train. 

Q. Does he show whether they are intrastate or interstate? 

A. He reports a mileage passenger carried from Raleigh to Greensboro. In that 
case it becomes a local ticket. 

Q. If that passenger is on his way to Danville he is a through passenger, and be- 
ing a through passenger he is reported so far as the North Carolina Road is con- 
cerned as a local passenger ? 

A. Yes. while the conductor from Greensboro to Danville would report it as a in- 
terstate passenger. 

Q. You say tliat the expense of a local freight train, although it carries only 
twenty cars, is larger tlian that of a through train carrying thirty cars : how do the 
expenses of the engines used comi)are ? 

A. About the same. 

Q. How is it with reference to tlie passenger engine ? Does not the engine of your 
through train from Washington to Atlanta have a larger engine than the local 
train ? 

A. No. sir. In the case of No. 7 and No. 8 between Charlotte and Richmond, that 
is a smaller engine than the engine on the through train. The engine of 11 and 13 
is the same type of engine that is used on the through train. They are run on the 
local or the througli. On the local from Goldsboro to Greensboro the engine is the 
same. 

Q. I notice in the report for 1897 that there is a large item called "excess of car 
mileage." What is the proper distribution of that item between local and through, 
and how arrived at? 

A. That is one of those general expenses that would have to be divided on the ton 
mile basis. 

Q. Does not the North Carolina Road use for its local business a larger proportion 
of its own cars than for the through business ? 

A. It may in some seasons of the year and will not in other seasons of the year. 
The car equipment of all the roads are frequently pooled. In the dull season, why 
we endeavor to use our own cars and equipment to save paying mileage to the 
other fellow. In other seasons we have to take a car without regard to ownership. 

Q. That item of '' excess car mileage '' is a very large one. Does that mean freight 
as well as passenger cars? 

A. Yes. it means both. 

Q. Is there any other fairer way to distribute that item between the two classes, 
intrastate expenses and interstate expenses, than by respective volume of business 
of each class ? 

A. It depends much upon conditions ; with some conditions there might be and 
others not. 

Q. Take it in the case of the North Carolina Road. Is there any fairer way to 
divide that item than to divide it according to the respective volume of business of 
the intrastate and interstate ? 

A. If the accounts were kept in detail for the North Carolina Road individually, 
why of course you could get it exact. 

Q. It would show exactly to a cent what the car mileage paid was in excess of the 
car mileage received ? 



COMPLAINTS AND DECISIONS. 227 

C^. You are talking now with regard to the entire amount of car mileage ; not the 
amounts as divided between the two classes of business. Does not that item show 
the difference between what is received and what is paid V 

A. Yes. 

(j). How would you proportion that item otherwise than according to the volume 
of busiueHsV 

A. I do not not know just how that figure was arrived at ? 

Q. Suppose that is the difference between the car mileage received and paid, then 
how ought that to be distributed between intrastate and interstate expenses in any 
other way than according to the volume of the respective class of business? 

A. If you were keeping independent accounts and handling all the details down 
to a fine point, why of course your record would show the cars moved in one class 
of service and the other. 

Q. In the absence of such details as that, is there any fairer way to divide this 
item than in the way I have indicated? 

A. I do not think there is any fairer way. 

Q. Then that item would not be loaded down with the 10 per cent ? 

A, No, sir. Your tons per car in your local train are not as many as the tons per 
car in the througli train, so that in your local train your tons per car may be seven 
cars ; in your through trains ten tons. Your seven ton car will cost the same per 
mile as the ten ton. so there is a difi'erence. It is more expense in your local service 
per ton than in the through. 

Q. If you are receiving for that smaller number of tons per car on the local train 
more t'lan on the through, may it not more than make up the diff^erence? 

A. It depends what the difference is in your rates and tons per car. 

Q. Leaving that out. as fair a way as you can reach it is to divide each according 
to the volume of business, is it not ? 

A. That would be hardly fair. 

Q. What is your theory as to how it should be divided ? 

A. The car miles. 

(^. That certainly would be correct if that account was kept. Is it not a fact that 
fre.|uently a car from Goldsboro to Greensboro has in it local freight as well as in- 
terstate freight ? 

A. Oh, yes. 

Q. Then coming back to the original proposition, is there a fairer way to arrive 
at a proportion of each than by dividing the volume of business ? 

A. It is something you would have to apin-oximate, and the only way would be a 
study of those details, an I finally decide as to Wiiat bases you would take. 

Q. Do you know anything about the number of dead-heads that ride on the North 
Carolina Road ? 

A. No. sir. 

Q. Where would that information be? 

A. I do not know whether the Auditor could get it or not. 

Q. If anybody can get it do you tiiink the Auditor can ? 

A. I would ask him for the information first. 

Q. And if you did not get it from him whom would you ask ? 

A. I would probably get it. 

Mr. W. C. Douglass : 
Q. On what portion of the North Carolina Road have you the heaviest irons or 
steels ? ■ 



228 BOARD OF RAILROAD COMMISSIONERS. 

A. On the line between Greensboro and Charlotte — the main line. 

Q. Why is it that you have heavier iron on what you call the main line? Is that 
for the benefit of the through traffic ? 

A. Not particularly ; because it is the most economical to use. 

Q. Not a great while ago, didn't your company, in order to comply with the re- 
quirements of the United States mail service, contract for and purchase a number 
of very heavy, rapid running engines, in order to comply with the law carrying 
through mails ? 

A. No, sir, those engines were bought to reduce operating expenses. * 

Q. The time in carrying the mail was not the question ? 

A. It was a question of economy. 

Q. Compare the engines pulling the local and through trains between Greensboro 
and Charlotte. You say they are the same ? 

A. Two trains are the same — 11 and 12 — two engines on 7 and 8 are light engines. 

Q. Compare the engines which you run from Goldsboro to Greensboro on your 
local trains with the engines that pull your through trains from Greensboro to 
Charlotte V 

A. They are smaller engines. 

Q. Are they not known as "coffee pot" engines? 

A. No. sir. 

Q. Are they not engines that have become too light for use on your main line ? 

A. They are too light for economical work of any sort. It costs just as much to 
run those engines as for heavier engines, and since the first of July last we have 
condemned fifteen or twenty of that class of locomotives. In the last six months 
we have been running the heavier 21 by 28 cylinder, and we can not find that it costs 
us any more to run that great engine than it does to run one of those smaller ones. 
They will pull more and do a good deal more of work at less cost. 

Q. They cost more, don't they ? 

A. Yes. 

Q. Don't you run what is known as '* vestibule trains '*? On what service do you 
run them ? 

A. Through service. 

Q. You do not run them on the locals? 

A. Not regularly ; 11 and 12 do. 

Q. Do you run them between Goldsboro and Greensboro ? 

A. Not regularly. I guess you will find vestibule cars here occasionally. 

Q. Have you not certain contracts with the Pullman Car Company ? 

A. Yes. 

Q. Do you run any Pullman car between Goldsboro and Greensboro? 

A. Not on the local trains. 

Q. Do not run any Pullman car on your local trains ? 

A. No, sir. 

Q. Is not your Pullman car service devoted entirely to through traffic ? 

A. Yes, sir. 

Q. Do you not pay the Pullman Car Company mileage for your through cars and 
don't you charge that up in your estimate? 

A. I can not answer that, but I do not believe I should, as Pullman mileage is a 
separate item. 

Q. Under what head could it possibly be included in the item of expenses of the 
North Carolina Road ? 



COMPLAINTS AND DECISIONS. '2'29 



A. In the statement of ex])enses it is given in detail. We have the passenger car 
mileage, freight car mileage and Pullman car mileage. 

Q. How much mileage do you pay for a Pullman car? 

A.- Two cents per mile, car mile. 

Q. What is the distance from Greensboro to (Jharlotte V 

A. Ninety-three miles. 

Q. You pay $1.H6 for the car? How many do you run each way a day ? 

A. We have Pullman car lines that we do not pay for. 

Q. Don't you pay on this line ? 

A. Thirty-five and 37, 7 and 8 are Pullman trains. 

Q. How many Pullman cars do you run a day between Greensboro and Char- 
lotte ? 

A. One car each way a day between Greensboro and Charlotte, and those are 
11 and 12. 

Q. You said that the local trains between Goldsboro and Greensboro carried 
through passengers and that the through trains also carried local passengers. From 
the fact that your through trains will only stop at very few points, the proportion 
of through passengers carried by local,trains is not as large as those carried by your 
through trains ? 

A. Some days yes, and some days the local would probably exceed the through. 
On the through train the average number of through passengers is greater than the 
average number of local. 

Q. Don't your local trains carry more through passengers than your through 
trains carry local passengers on an average? 

A. I can not answer that. 

Q. How many places does your through train stop at between Greensboro and 
Charlotte ? 

A. Thirty-seven and 8(S between Greensboro and Ciiarlotte make but two stops 
each way. and the other train about four each way. 

Q. How many does your local train make ? 

A. I should say about fifteen or twenty stations between these points. 

Q. As to the number of cars pulled. In respect to your through and local trains, 
how many cars ? 

A. Generally four cars on the local and seven on the through. 

Q. You use the same train crew on your through cars as you do on your local ? 

A. Yes. 

Q. In regard to your freight trains : about how many cars did you say your 
through freight trains carried? 

A. Thirty. 

Q. Your local ? 

A. Twenty. 

Commissioner Pearson : 

Q. The additional cost of running the local passenger service is not so great as 
that of the freight service from the interstate business, is it? 

A. Not per ton mile. 

Q. I understood you to say it cost 50 per cent more for freight ? 

A. The passenger business per ton mile is practically the same, the passenger 
train service on this line being two-thirds local and the main line 50 per cent local. 
The expenses per train mile are practically the same on through and local. 



230 BOARD OF RAILROAD COMMISSIONERS. 

Q. You gave as an illustration three freight trains running from Goldsboro to 
Greensboro ; these are made up at terminal points and do not stop at all stations ? 

A. Yes, sir. 

Q. Does that local transact a great deal of interstate business between Greensboro 
and Charlotte ? 

A. There may be. 

Q, Take Burlington and Graham that make shipments of cloth. Does not that 
local train transact all that business ? 

A. As a rvde, yes. 

Q. Then a large percentage of the business transacted by local trains is interstate 
business? 

A. Possibly 25 per cent. 

Q. What proportion of this car mileage balance is chargeable to the North Caro- 
lina Road? 

A. I do not know. 

Q. Can not state that ? 

A. No, sir. 

Q. In what item of operating expenses in this answer would that be found, that 
car mileage ? 

A. In conducting transportation. 

Q. You do not know the proportion ? 

A. No, sir. 

Mr. W. C. Douglass: 

Q. What is the difference in the cost of these vestibule cars and one of those or- 
dinary day trains that you run on this line ? 

A. We are to-day buying a better passenger car, that is without the vestibule. 
We, of course, have a good many of the old cars in service, and some of those old 
cars probably cost as much as some of the new cars. The only difference between 
the vestibule and non- vestibule purchased to-day in the cost of the smoker, which 
is a matter of $250. 

Q. Are you not giving much better service on your through travel than to your 
local ? 

A. I think not. I saw this morning just as pretty a train as there is on the South- 
ern Road ; the regular train. The cars are older than those recently purchased, but 
they are in good condition, and the passenger is just as comfortable in that car as 
he would be in a sixty-five feet car, and that is about the only difference ; the larger 
car is purchased to-day just as the larger engine is for economical reasons, and not 
for the comfort of the passenger. 

Q. Do you undertake to say that one of those cars that you run every day from 
Goldsboro to Greensboro is just as comfortable ? 

A. Yes, sir. 

Q. Where do you smoke ? 

A. In the smoking car. 

Q. Where do you smoke in your new cars? 

A. We had built some new cars with smokers. 

Mr. W. W. Finley. being duly sworn, says: 

Mr. Harrison : 
Q. What is your connection with the Southern Railway Company? 
A. Second Vice-President. 



COMPLAINTS AND DECISIONS. '2'M 

Q. What are your chief duties ? 

A. My chief duties are connected with tlie revenue department? 

Q. What has been your railroad experience ? 

A. My first connection with railroads was as a stenographer. I served as stenog- 
rapher in various offices, beginning in the office of the Vice-President. * * * 
After such active service I became Chairman of a traffic organization composed of 
various roads, and organized for the purpose of adjustment of rates within certain 
territories, both freight and passenger. My experience has covered the territory 
between Missouri and Colorado, between Chicago and Missouri, * '^' * and east 
of the Mississippi. I then went into the office of Traffic Manager in the northwest 
and from there came into the Southern Railway organization, 

Q. Your experience has largely been with respect to traffic matters ? 

A. Yes. 

Q. Please state what in your opinion is the effect, if any, upon the increase of 
traffic caused by a reduction of rates ? 

(Objection.) 

A. My observation has satisfied me that there are times when abnormal low rates 
are made, growing out of what is called in railroad circles "war conditions." My 
observation has been that where abnormal low rates have resulted that immediately 
and for a time the travel has been increased, in that the impelling force of it is to 
move people who are, for any particular reason, to make the trip, but that element 
being satisfied, having made the trip, the travel, within a reasonable time, will 
settle down to about the normal proportion. The low rates are then used in about 
the proportion that the tariff rates are used. The rush the first instance is caused 
by the knowledge that the conditions are abnormal, and, therefore, it becomes nec- 
es.sary for those desiring to make the trip to make it at once, or in advance of what 
is called a restoration of rates. My observation has been that where a rate on a 
normal basis of $7.50 and a reduction that may be on a basis of $6.00, that that ad- 
justment would hardly have any appreciable effect on the travel. I am not speak- 
ing in this of excursion rates, where the impelling force is some particular point. I 
do not believe that these impelling forces would cause a man to buy a ticket any- 
where simply for the purpose of sitting under a tree for a day. 

Q. It is not your opinion then that a reduction of a normal rate would result in 
an increase of traffic sufficient to compensate in revenue for tlie reduction? 

A. No, sir. 

Cross-examination, by Col. Hinsdale: 

Q. Have you ever read " Todd's Railways of Europe and America?'' 

A. No, sir. 

Q. What is tlie experience of railroads in Europe with reference to this very 
question ? 

A. I do not know. I have been too busy in studying conditions here. 

Q. Has the opinion which you have given been the invariable result wherever 
there has been a reduction of rates ? 

A. Within my observation. 

Q. Where have you made those observations ? 

A. I have made this observation between Dnluth and St. Paul on one hand and 
Seattle, Portland, Vancouver on the other hand, covering a stretch of 2,000 miles 
of territory. I have made it between the Ohio and Missouri river. 

Q. In each of these cases was there a slight reduction of the rate which was not 
followed by any appreciable increase of travel ? 



232 BOARD OF RAILROAD COMMISSIONERS. 

A. Yes. When I was chairman of what is called the Western Passenger Associa- 
tion, who had the control of rates in the sense of regulating them, one of the pro- 
visions was that there should be equality of rates betM^een railroads. It M^as found 
in the case that I now refer to what is known as ticket brokers or ticket scalper, 
that he was manipulating tickets over one of the roads in a controlling sense, be- 
tween Kansas City and St. Louis. Unfortunately the percentage of busmess done 
through brokers* office at that time was material. It was necessary to reduce the 
rate probably $100. If I am correct, the normal rate was $7.50 ; I authorized the 
use of a rate of $6.50. The effect of that was not to increase the normal travel but 
to bring about an equalit5^ As well as I can recollect, the rate made between Den- 
ver and Kansas City was down to a very low basis and the effect of that all parties 
who had any reason to go, to impel such at once to go ; after that element had been 
satisfied, and it is usually soon the case, it gets down to the normal basis of travel. 

Q, You never knew of a case where the lowering of rates actually kept people 
from going, did you ? 

A. No 

Q. Is not the natural tendency of lower rates to increase travel ? 

A. Temporarily. 

Q. You say "temporarily."' Do you mean to say that lowering the rate from 
$7.00 to $6.00 would have no effect then in increasing travel the second or third 
year ? 

A. Not appreciably. 

Q. That word '"appreciably "—you will not undertake to say that it would not, 
as a matter of fact, make some increase ? 

A, My opinion is that it would have no effect. There are so many other expenses 
connected with such a trip that would not be decreased by a reduction of rates, that 
you would hesitate to make the trip ; the hotels bills, etc. 

A. How would it be when there were no liotel bills to pay ; from Burlington to 
Greensboro ? Would it have no effect there ? 

A, No, sir, none at all. 

Q. Be good enough to say, if you please, what change you consider would make a 
difference in the volume of business ? 

A. Where the rate is $1.00, and you offer to carry him for twenty-five cents or 
ten cents he might go. 

Commissioner Abbott : 

Q. Reference has been made here as to the effect upon travel a reduction of rates 
had on European railways. How do the European railroads compare with the rail- 
roads in the United States ? 

A. My general information is that they are higher, but I would have to look at 
my record to ascertain that fact definitely. I have seen some figures that are 
higher. 

Q. What effect in the agricultural regions, compared with the thickly settled 
regions, would a reduction of rates have ? 

A. My experience is that an agricultural population is not a travelling popula- 
tion. 

Q. Would a reduction in rates in an agricultural region have the tendency to in- 
crease travel as much as in a region thickly settled ? 

A. No, sir. This question of transportation is a study, as you appreciate. Doctor. 
It is not a theoretical one ; do not have to read books to get at it. The man who 



COMPLAINTS AND DECISIONS. ^.>'> 

writes the books usually is not the i)ian wiio has liad niucih railroad experience. He 
has studied it from an outside point of view. 

By consent, the reports of the Southern Railway Company, heretofore filed with 
the Commission, are in evidenc;' to be read by eitlier side. 

Attest : 

H. C. Brown, Clerk. 



COL. HENDERSON'S ARGUMENT. 



EFFECT OF PR(n^OSEl) REDUCrj ION IN PASSENUER RATES ON 
NORTH CAROLINA RAILROATX 

The i^roposed reduetion in passeng-er rates is about 25 per cent. Therefore, if 
effectiv^e, the proposed reduction would give the company 75 cents, where it 
now receives $1 on intrastate passenger business. 

The average cost in 1897 of earning a dollar on the North Carolina Railroad 
was 72 15-1()() cents, without taxes, and with taxes included ^^as 78.71 cents. 

The intrastate traffic covsts more to handle than the interstate. But even as- 
suming, for argument's sake, that the intrastate passenger traffic could be 
handled at the general average ratio of exj^enses to earnings, the proposed re- 
duction wt)uld practically wipe out all profit and leave no income upon the in- 
vestment whatever, because for each 75 cents earned the company would have 
to spend at least seventy four cents for expenses of operation. 

CONCERNlN(i THE RATIO OF EXPENSES TO EARNINGS. 

In comi)aring the expense i-atios of various railroads the difterent conditions 
under which each is operated must be considered. 

Shortag:e of equipment, heavy grades, high curvature, etc., all increase the 
ratio of expenses to earnings. This is the explanation of the difference between 
the expense ratio, shown by the Wilmington and Weldon and Raleigh and Gas 
ton roads, and the North Carolina Railroad. The ratio of total expenses to 
total earnings of the Noi'th Carolina Railroad, in 1897, w^as 72.15 per cent. 

If the North Carolina Railroad Company had owned sufficient equipment to 
handle all the traffic on its line, and had not been obliged to use equipment 
owned by other companies, the ratio of ex[)enses to total earnings would have 
been 61.04 per cent. 

This computation can be verified from the 1897 Report of the Commission by 
deducting from the total expenses the "hire of equipment balance," which 
would leave the total expenses -$971,713.25; gross earnings, $1,592 217; ratio of 
expenses to earnings, 61 per cent. 

Compare this with the expense ratio on the entire Southern Railway System 
(exclusive of the North Carolina Railroad), which, in 1897, was 65.50 per cent. 

(This can be verified by figures contained in the Southern Railway (com- 
pany's z\nnual Report for 1897, p. 85, copy submitted herewith.) 



2?)4 BOARD OF RAILROAD COMMISSIONERS. 

It thuy appears that the cost of operation aside from rental of equipment per 
$1 of earnings was less on the North Carolina Railroad than upon the other 
combined lines of the Southern Railway Company's System. 

The charges for rental of equipment upon the North Carolina Railroad were 
made according to the actual mileage and use of equipment upon said road, 
due credit being gi ven at the same rates, for all mileage made by equipment 
owned by the North Carolina Railroad Company. These charges were, there 
fore, entirely fair and proper, and the exi)ense ratio for 1897, viz: 72.15 per cent 
is thus proved to be a reasonably low one, under the actual conditions existing 
upon that road. The rates charged for hire of equipment were 6 mills per 
mile for freight cars; 3 cents per mile for passenger cars, and 1^ cent per mile 
for baggage, mail, express and caboose cars. The rate charged for freight car 
mileage is lower than the rate usually charged between independent roads in 
the South; the other rates are the same as usually charged. The rates charged 
for hh-e of engines were below the rate-i charged between independent com- 
panies. 

The general expense ratio of 72.15 per cent being thus demonstrated as a fair 
one, the answer of Mr. Spencer computes the expense ratio appertaining to the 
intrastate traffic at 80.89 per cent, upon the addition of 10 per cent of the gen 
eral average expense ratio, following the basis of the computation set forth in 
Mr. H ill's evidence. The intrastate gi-oss earnings being $510,000. the intra- 
state net earnings were thus computed at $97,000. After deducting the intra 
state proportion of taxes, the net earnings shown and testified to were about 
eighty nine thousand dollars. (Pages 21 and 22 of the Southern Railway Com 
pany's answer.) 

This sum of $89,000 thus fairly and reasonably arrived at, is the amount which 
should be considered as applicable to the payment of interest upon the intra 
state proportion of the value of the investment of the Southern Railway Com- 
pany in, and in respect to, the North Carolina Railroad. 

The calculation of the total intrastate operating expenses, as contained in the 
answer, having been demonstrated to be fair, it is perfectly idle ti) discuss such 
accounts of the total expenses, or to criticise them in detail. The computation 
of such details was arrived at by taking the total intrastate expenses, as com- 
puted, viz: $412,000, and then distributing that amount to the various detailed 
accounts upon an arbitrary or approximate basis, it being impracticable to 
make such subdivision with absolute accuracy — all as stated in the testimony 
of Mr. Hill and Mr. Cannon. Whatever basis had been adopted for subdivid 
ing the total intrastate expenses among the several sub-accounts, the net earn- 
ing from intrastate traffic would not have been changed or affected. Even 
if it were possible that some of the sub-accounts as thus determined are stated 
too high, the others could be stated equally too low. The total has been shown 
to be fair. Therefore, criticisms directed against a few of the sub accounts, 
without taking intQ consideration each and all of such accounts, are unfair and 
illogical. 

It has been demonstrated, both by Mr. Spencer's answer and the testimony 
here supporting that answer, that the amount shown as net earnings from in 
trastate traffic, near the top of page 22 of the answer, was arrived at by fair 
and logical process. This amount, as stated, is $89,478.04. 

In making this computation, it was necessary to consider three factors only. 
These three factors once proved to be correct, and our case is proved beyond 
question. 



COMPLAINTS AND DECISIONS. 285 

The first of these factors is the amount of intrastate g-ross earnings. 

The second factor is tlie proper ratio of expenses to earnings in handhnjj: in- 
trastate traffic on the North CaroUna Raih-oad. 

The first of these factors for the year 1897, namely, the ^ross inti-astate earn- 
ings, was computed from original sources and represents the actual amount 
earned and terminated within the State. The anumnt of these gross earnings, 
as stated in the answer, and as verified by proper testimony, was ,$510,066.19 

The second factor to be obtained was a proper expense ratio applicable to in 
trastate traffic. The basis adopted for that computation, as shown by Mr. 
Hill's evidence, was substantially the basis employed in the Nebraska decision, 
viz: An addition of 10 per cent to the general average expense ratio, in order to 
ascertain the lowest ratio of expenses to earnings, which the court decided 
should be considered in figuring the expenses of handling intrastate traffic. 
This may be expressed in another way by saying that, in the judgment of the 
operating and traffic officials of the Southern Railway Company, it costs at 
least ten cents more to obtain |1 of intrastate earnings than it does to obtain a 
dollar of earnings from all sources. 

Now, the general average ratio of expenses to earnings upon the North (Caro- 
lina Railroad was 72. 15 per cent. This is the percentage given in the annual 
report to the Commission for 1897; adding 10 per cent to 72.15 gives 82.15. x\p- 
ply this to the $510,000 gross intrastate earnings and you get about $418,000 ex- 
penses. This amount of expenses was reduced by about 16,000, as explained in 
Mr. Hill's testimony, leaving |412,000 as the intrastate expenses, and $97,000 as 
the surplus of intrastate earnings over operating expenses. 

The third factor was the proportion of taxes chargeable to intrastate traffic, 
which was figured at the percentage of intrastate traffic to the whole. This 
yielded taxes as about eight thousand dollars, and net earnings about eighty- 
nine thousand dollars. 

Twenty-five per cent reduction in rates— $74,000, against $89,000 net earnings 
as above, would leave only $15,000. 

Afterwards the interest on value of the property must be considered. As the 
proper basis for that calculation we subnut pages 4 to 9 of the answer of Mr. 
Spencer of June 8. 

Mr. Douglass, in his argument, characterized as unfaii- the statement con 
tained on pages 17 to 20 of Mr. Spencer's statement to the Commission of Feb- 
ruary 26, 1889, showing the local rates charged upon various railroads in all 
parts of the United States. He compared the rates shown in said statement 
with the general average earnings per passenger per mile in the entire United 
States, which, he said was about 2.1 per cent. This rate includes all classes of 
business, both through, local and excursion, and also the low conmiutation 
rates in effect near the great cities. 

The statement of Mr. Spencer as to local rates is absolutely correct and proper. 

SHORTACtE of ROLLINU stock ON SOUTHERN RAILWAY SYSTEM. 

Again, referring to the considerable expenses charged against the North Caro- 
lina Railroad division for car mileage and rental of equipment, it should be 
stated that no profit whatever is derived from the other Southern Railway 
lines, arising from the use of Southern Railway Company equipment on the 
North Carolina Railroad. The equipment of the Southern Railway System, as 
a whole, is insufficient for the traffic of said system. This is shown on page 35 



286 BOARD OF RAILROAD COMMIS8IONERS. 

of the Southern Railway Company's annual report, from which it will be seen 
that there was a net expenditure for car mileag'e on the Southern Railway Sys 
tern, paid out to foreii?n companies, amounting to $37,864 for passenger car 
mileage, and §126, 967. 35 for freight car mileage. If the North Carolina Rail- 
road had not used the Southern Railway equipment, the Southern needed its 
equipment upon its other lines, and could douV)tless have sent it out on foreign 
lines at higher mileage rates than was charged to Noi-th Carolina Railroad 
division. 

It ill beoomes the comi)lainant, who has heretofoi-e contended on behalf of 
the State, that the rental paid by the Southern Railway Company, under the 
terms of the lease of the North Carolina Railroad, was less than a fair return 
upon the real value of the property, to come forward now and contend also, on 
behalf of the State, that the property is worth less than an amount eciual to 
the capitalization of the rental or the market value of the North Carolina stock. 



COLONEL HINSDALES AR(iUMENT 



REVIEW OF THE SOUTHERN RAILWAY COMPANY'S FIOLRES. 

1. EFFECT OF PROPOSITI) REDUCTION. 

The learned counsel for the Southei-n Railway Conrjany says that the pro- 
posed reduction of passenger rates will wipe out all profit on the intrastate pas- 
senger service. While this is denied, still, if it be true, it is not materia'. For 
so long as the company is peruutted to make a fair profit on its entire 
intrastate business, including passenger, express, mail and freight, the reduc 
tion will be u})held, 

2. RATIO OF EXPENSES TO EARNINOS. 

]\Iuch has been &aid about the ratio of exi)enses to earnings, and an effort has 
been made to explain why the ratio on the North Carolina Railroad is greater 
than on the Raleigh and (Tast(m Railroad, r)r on the Wilmington and Weldon 
Railroad. 

This is innnaterial. For the real question is, whether, after the proposed re 
duction of passenger rates, the company can still make a fair profit on its in 
trastate freight and passenger business as a whole. But the statement that the 
ratio of expenses to earnings is moderate in the case of the North Carolina 
Railroad is controverted. Unless such ratio is just, and is the result of fair 
treatment of the North Carolina Raih-oad by the Southern Railway Company, 
no calculations can be made u]:)on it. The accounts must be fairly kept. There 
are several extravagant items in the itemized statement of expenses of the 
North Carolina Railroad Couipany, to be found in printed reports of 1897, ])age 
256. Let us compare them with similar items in the report of the Seaboard 
and Roanoke Railroad Company, whose ratio of expenses to earnings is repre 
sented at 65.8 per cent, as against 72.15 per cent of the North Carolina Railroad 
(Jompany. 



COMPLAINTS AND DECISIONS. 287 

The first is 56.4 per cent of the latter. Consequently, If tlieir expenses 
were in the same pro])ortion as their earning-s, the expenses of the 
Seaboard and Roanoke Raih-oad (Jonipany would be 56.4 per cent of 
the North Carolina Railroad. Vel, upon examination, we find that 
the total cost of mainteiumce of way and structui es of tlic Seaboard 
and Roanoke lijiilroad is - - - §88,422.75 

While, of the North (^arohna Railroad it is - - 179,424.86 

The total cost of maintenance of equijnuent of the Seaboard and 

Roanoke Railroad is - - - - - - - 60,886.77 

While of the North Carolina Railroad it is 199,978.15 

The cost of fuel for locomotives of the Seaboard and Roanoke is - 88,748.52 
Of the North Carlina Railroad it is - - - - - 118,598.70 

The total rolHng' stock on the Seaboard and Roanoke Raih-oad. for 

North Carolina, is valued at - - 42,075.85 

This is one foin-th of the whole. The whole would ])e - 168,808.40 

The Seaboard and Roanoke Railroad Company does a business e(|ual 
to 56.4 per cent of the business of the North Carolina Railroad Com- 
pany, and yet the SeaboaKd and Roanoke Railroad Company own 
rolling- stock of the value of - . . . . . 168,808,82 

While the North Carolina Railroad Comi)any own rolling-stock to 

the value of - - - - - - 114.708.00 

The car mileaj?e balance ag-ainst the Seabtjard and R( anoke Railroad 

is - ■ - - - 7,486.60 

The car mileag-e balance aii'ainst the North Carolina Railroad Com 

pany is -..-... 140,164.62 

Hire of e(iui})ment — balance is ' - • • ■ 86,694.72 

Total - - . . - .... 177,059.88 

The charg-es against the Seaboard and Roanoke Railroad Company 
for maintenance and equipment for the year ending June 80, 1897, 
were : 
For repairs of locomotives, ----- 16,408.95 
For repairs of passenger cars, - - - - ' - 9,101.14 

For repairs of freig-ht cars, ------- 14,875.61 



Total for maintenance of equijuuent, 80,878.67 
While the charges ag^ainst the North Carolina Railroad Company for 

maintenance of equipment were: 

For repairs of locomotives, - - - - - - - 71,644.94 

For repairs of passenger cars, ...... 82,761.44 

For repairs of freight cart. - - - - - 79,145.88 

Total, - - - - - - - - - 188,551.70 

In the light of this c;)mparison it Ls confidently asserted that tlie North Cai-o 
lina Railroad Company is not economically managed, but that in its operation 
it is arbitrarily or carelessly charged with many thousands of dollars, which 
improperly reduce its immense income. It is maintained that the changes are 
unfair, and that the general average e-xjicnse ratio of 72.15 per cent is unreliable, 
and can not be used as a basis for any calculations. 

The learned counsel proposes to increase this ratio of expenses to 80.69, ac- 



238 BOARD OF RAITiROAD COMMISSIONERS. 

cording to Mr Spencer, the President, or to 82.15, according to Mr. Hill, the 
Secretary of the company, as representing the ratio of local expenses to local 
receipts, when it is well known that it is upon the local business of a railroad 
that the largest profits are made. The local freight charges are on an average 
twice as great as the through freight charges. This is more than sufficient to 
counterbalance the supposed additional expenses attending the local traffic. 
The learned counsel makes no reference to this important matter. 

8. THK FKiURES OF TflE ANSWER EXAMINED. 

The answer states that the total intrastate earnings for the year ending June 
30, 1897, were !S510,06G.19. There is no proof of these figures. Mr. Hill, who 
was a witness for the railway company, in the nature of things, could have no 
kn(^wledge of them except by hearsay. He did not pretend to have any. If 
the company could have proved their correctness by any one, they might have 
done so by the Auditor of the company, who was present at the examination, 
but who, for some reason, was not upon the stand. 

The operating exi>enses, as set forth on page 21 of the answer^ are incorrect. 

There is no possible way ro apportion the expenses to the through and loc^l 
traffic, as all the witnesses admit, and it is done by '' approximation," which is, 
more or less, guess work. When this is done by interested parties for a pur- 
pose, it is more or less unreliable. 

It has been shown that the methods of calculation used by the railroad com 
pany in reaching these figures, are unfair- and incorrect. The ratio of expenses 
to receipts from intrastate business, adopted by the com{>any in its calcula- 
tions, has been shown to be unreasonable and unjust. 

The answer says that 80.89 per cent of §510,066.19 is §412,642.86, the total of 
operating expenses. But by no mathematical process can the figures, which, in 
the answer, by addition, make up the $412,642.86, be arrived at. 

It is unfadi- to add the pretended increased percentage of cost of intrastate 
over interstate transportation, to many of ihe items which are embraced in 
operating expenses, as stated on page 21 of the answer. While the actual train 
and station expenses may be greater in propoi'lion for intrastate than for inter- 
state business, it does not cost any more in proportion, to " maintain ways and 
structures,'" or to "maintain equipment."' Why should the general expenses 
be any greater in proportion? Why should superintendence cost anymore? 
Fuel for locomotives ? Car mileage balance ? Hire of equipment ? All of these 
should be prorated, without the increased percentage of costs, and they consti- 
tute the bulk of expenses. 

In the coiiipany's calculation, all of there items are loaded down with the 
expense percentag'e of 8 X per cent, or as Mr. Hill would have it, of 10 per cent. 

Tlie learned counsel thus arrives at . - . . §97,428.30 

As the surplus of earnings over operating expenses, and from this 

he subtracts on account of taxes, . . . - . 7,949.90 

Leaving as net intrastate earnings, - . - 89,473.43 

He then says that the loss caused by the proposed reduction of pas 
senger rates will be 25 per cent of $297,989 20, which he claims to 
be the actual intrastate gross passenger earnings for the year end 
ing June 30, 1897 ; that is, - - 74,497.00 

And he shows a balance of only . . . . . 14,976.43 

But this is absolutely misleading. 



COMPLAINTS AND DECISIONS. ^39 

Acoordiiig to a calculation, which will hereafter appear, the volume of intra- 
state "business is '^0.7 per cent of the whole. The whole expenses for the ye;** 
ending: 1897. taken from the company's printed report for that yeai', were as 
fo'lows: 

Maintenance of way and structures, . - . . . $179,424.86 

Maintenance of equipment, - - - - " - - 199,978.15 

Conducting transportation, ...... 689,972.57 

(xeneral expenses, .----.- 61,907.14 



Total, - - - 1,18L277.72 

80.7 per cent of which is ....... 847,802.26 

If the 1897 reports are true, this is the correct expense of intrastate business. 
No additional percentage should be added; because, as alleged in the corn- 
paint, it is more than offset by the larger charges on local business, which are not 
prorated with other railroads but which are retained by the North Carolina 
Railroad. 

Subtract from the alleged gross intrastate earnings 
The operating expenses, as thus ascertained. 

And we have surplus earnings, - - - ■ - 

Take from this 80.7 per cent of taxes, §24,820.16, 



;j5510 


,066.19 


847 


,802.26 


162 


,768.98 


7 


,619.78 


155. 


,144.15 



And you have intrastate receipts for the year ending .June 80, 189' 
iSublract from this 25 per cent of S297,989.20, which is pretended to 
be the gross intrastate passenger receipts, but which it is claimed, 
do not amount to so large a sum, . - . . . 74.497.00 



And we have - - - - - - - - 80,647.15 

(a) If the railroad is valued at $8, 117,288, at which it has been assessed for 
taxation, the amount which is to be deemed appropj'iated to intrastate traffic 
is 80.7 per cent of $8,117,238. because the volume of intrastate business is 80.7 per 
cent of the whole business. This is $961,902.68. A profit of $80,647. 15 is 8.88 
per cent on $961,902.68. 

(b) If the railroad is valued at $4,000,000, the amount which is to be deemed 
appropriated to intrastate traffic is 80.7 per cent of $4,000,000, because the value 
of intrastate business is 80.7 per cent of the whole business. This is $1,228,000. 
A profit of $80,647.15 is 6.57 per cent on $1,228,000. 

(c) Suppose we adopt the cost of reproduction as the basis of value. The 
actual cost of the road is reported, in printed report of 1897, to be $4,975,627.58. 
Supposing the cost of right-of way and terminal facilities was $975,627.53. De- 
ducted, this would leave $4,000,000 as the total cost, excepting right of way and 
terminal facilities. Mr. Hill testified that the road could be reproduced at 
from 25 to 30 per cent less than the original cost, except as to right of way and 
terminal facilities. 



240 BOARD OF RAILROAD COMMISSIONERS. 

Deduct from ---.-.--. $4. 000, 000. 00 
30 per cent, - - - - - - - - 1,200,000.00 



3,800,000.00 
Add original cost of ri^htof- way and tenninal facilities - 975,627.53 

3,775,627.53 
30.7 per cent of this amount deemed appropriated to intrastate busi- 
ness, is - ------ - 1,159,117.65 



A profit of $80,647.15 is 7.66 per cent of - - - ■ 1,159,117.65 

The fault of the calcuations of the learned counsel is: 

1. His first factor, the gToss intrastate earnings, is erroneous. There is no 
pr(.)of of its correctness. 

2. His second factor, the supi)osed ratio of expenses to earnings in intrastate 
business, is erroneous from every point of view, as heretofore set forth. 

3. His third factor is the only one which approximates the truth. He made 
the percentage of taxes chargeable to intrastate business, .$7,949.90, when it 
should be .$7,446.04. 

Mr. Douglass was right in criticising the statement contained in pages 17 and 
20 of Mr. Spencer's statement of February 26, 1898. This statement is delusive. 
\i does not pretend to give the local rates, but the "average rate per mile 
charged for passenger service." (See p. 17.) In fact, the list does not in a 
single instance set forth the correct average rate. The average rate in North 
Ca.rolina is 2.18 instead of 3 V4 and 2^; and the average rate in Ohio is U. 2 in- 
stead of 3. None of the figures in this statement are accurate. The average 
rate for the whole United States is, as Mr. Douglass stated, 2.1 cents ])er mile. 

THE STATE'S FKfURES. 

The (calculations on the part of the State are based, not upon unsworn esti 
mates, but upon the reports of the Southern Railway Company, made on oath 
to this Commission. We prove our case l3y the admissions of the railroad com- 
pany. 

Our inquiry is to ascertain; 

1. The total net profits upon intrastate business. 

2. The an.ount of the reduction caused by the proposed rate. 

3. 'rhe net profits from intrastate business, after making the proposed re 
duction. 

4. The valuation of the [)roi)erty of the North Carolina Railroad Company, 
upon which to compute percentage of profits. 

5. The proi)ortion of the said valuation which is to be considered as a})pro- 
priated to intrastate business. 

6. The percentage of the net receipts from intrastate business, after deducting 
the said reduction, upon that portion of the total valuation of the property of 
the North Carolina Railroad Company which is considered as appropriated to 
intrastate business. 

The gross earnings for the year ending June 30, 1897, were ■ $1,592,217.93 

Expenditures, ...--. $1,148, 772., 59 

Taxes, _-..-.- 24,820.16-1,173,592.75 



Net balance of earnings from operation, ... - 418,625.18 

Which is 13.4 per cent on the assessed valuation of the whole property. 



COMPLAINTS AND DECISIONS. 241 



1. WHAT ARE THE TOTAL NET PROFITS ON INTRASTATE 

BUSINESS V 

The report of the North Carohna Raih-oad Company for the year ending 
June 30, 1897, shows the total receipts for the year to have been ff 1.592,217.93. 
The report of the Southern Railway Company, filed June 1, 1898, shows the 
total receipts of intrastate passenger and freight business for the first three 
months of the year 1897, to have been 1122,366.48. As several of the witnesses 
testified that the first three months in the year are over the average in respect 
of the vohune of business and the ainount of leceipts, it may be assumed that 
this sum is fully cne fourth of. the annual income from intrastate business; that 
is to say, ^487,465.62. This amount is a little over 30.7 i>er cent of the receipts 
from the entire business. The profits from the entire business, as gathered from 
the report of 1897, and as stated above, amount to $418,625.18. 

As the total gross receipts from all sources is to the gross receif>ts from intra- 
state business, so is the total net receipts from all sources to the net receipts 
from intrastate business. That is to say. as $1,592,217.93 is to §487,465.62, so is 
$418,627.18 to §128,517.93. In other words, 30.7 per cent of the total net receipts 
from all sources constitute the net receipts from intrastate business. This Ls 
1128.517.93. 

A good deal has been said about the cost of transacting intrastate business 
being over the average cost of transacting business i^enerally, and estimates 
have been made by the Southern Railway Company upon a basis of such excess 
of cost of 8^4 and 10 per cent. But the railway company's witnesses admitted 
on the stand, that the rates of freights and fares on intrastate business were 
greater than the rates on interstate business. And this may very well be so, 
when the fi-eight tariff' for local business is twice as high as for foreign business. 
Undoubtedly the increased ratio of intrastate expenses to earnings is more than 
counter- balanced by the larger percentage of rates on local business. This 
view of the case is entirely ignored by the learned counsel for the Southern 
Railway Company. 

2. WHAT JS THE, AMOUNT OF THE REDUCTION CAUSED BY THE 

PROPOSED RATES? 

To ascertain this we must find what is the amount of the gross receipts from 
intrastate passenger business. The report of the Southern Railway Company, 
filed June 1, 1898, shows the gross earnings from local passenger business for 
the first quarter of 1897 to have been $65,288.71. Four times this amount will 
give the gross local passenger receipts for the entire year; that is, $261,154.81 
Twenty five percent of this amount is $65,288.71, which is the amount of the 
reduction caused by the proposed rate. 

S. WHAT ARE THE NET PROFITS FROM INTRASTATE BUSINESS, 
AFTER MAKING THE REDUCTION PROPOSED? 

The total net profit from local passenger and freight business, for " 

the year ending June 30, 1897, was as above stated, - - $128,517.93 

The reduction caused by the proposed rate is, as above stated, 65,288.71 

Which, subtracted from the former, leaves as the net local earnings 
from intrastate passenger and freight business, after the reduc 
tion, --.---._ 63,229.22 

1 It) 



242 BOARD OF RAILROAD COMMISSIONERS. 



4. WHAT IS THE VALUATION OF THE PROPERTY OF THE NORTH 
CAROLINA RAILROAD COMPANY, UPON WHICH TO COMPUTE 
PERCENTAGE OF PROFITS ? 

The value of the capital stock is not a just or reliable criterion, because the 
value of the stock may be based upon an income derived from freight and pas- 
senger charges, which, by reason of their excessive character, ought to be re- 
duced. And this is precisely what we are claiming. If the local fares or freight* 
should be reduced so that the net profits of the company would not exceed 6 per 
cent the amount admitted by the learned counsel to be amply sufficient, or 5 
per cent, the amount claimed by the complainants as being a fair percentage 
of profit, the market value of the capital stock would be considerably depreci- 
ated. We are arguing this case, as if no lease had been made, because the North 
Carolina Railroad Company can not prevent the Railroad Commission or the 
Legislature from regulating itg freights and fares by making a lease. 

The va'uation of the property of the North Carolina Railroad Company in 
arrived at in two ways: 

(a) The tax valuation may be taken as the basis of value. 

(b) Or the cost of reproduction may be accepted. 

(c) The tax valuation is $3,117,233. 

It has been strenuously argued by the learned counsel that the tax valuation 
in no indication of the real value, and he quotes an extract from the opinion of 
Judge Clark, in the case of Railroad and Telephone Companies against the 
Board of Equalization, 85 Fed. Rep., 802. This was a case which originated in 
the State of Tennessee. It was contended on the part of the complainants, the 
railroad companies, that the laws of Tennessee did not require the property to 
be assessed for laxalion at its actual value. Judge Clark, a District Judge, held 
with the complainants, and the defendant, the Board of Equalization, appealed 
to the United States Circuit Court of Appeals. The case is now pending in that 
court, undecided. Under these conditions, the case is not entitled to any great 
weight in North Carolina, especially as the Constitution of North Carolina ex- 
pressly directs, article 5, section 3, that "Laws shall be passed taxing by uniform 
rule, all moneys, credits, investments in bonds, stocks, joint stock companies, or 
otherwise ; and also all real and personal property, according to its true value 
in money. ' ' 

And the tax assessment law of North Carolina provides, Public Laws 1897, 
chapter 169, section 2, that "the list takers and assessors shall ascertain the true 
value in money, of every tract or parcel of land or other real estate, with the 
improvements thereon, and personal property, and assess the same in accord- 
ance with said valuation." 

It is thus clearly indicated that the Legislature of North Carolina intended 
the tax assessors to value property at its true, actual and full value. If thie 
were not so, by what uniform rule can the assessors in the different counties in 
the State, all acting separately from and independently of each other, value the 
property at a certain percentage of its true value, unless this percentage has 
been fixed in advance by the law-making power ? 

(b) The actual cost of construction, equipment, etc, of the North Carolina 
Railroad to June 30, 1897, was 14,975,627.53. Mr. Hill, the Southern Railway 
Company's witness, testified that the road could be reproduced 25 or 30 per 
cent less than original cost, except the right-of-way and termuial facilities, $975, - 



COMPLAINTS AND DECISIONS. 24:3 

637.53. Assuming, as a liberal estimate, that the right-of way and terminaJ 
facihties cost 1975,627.53, let us deduct this amount from the total cost, and we 
have the remainder, 14,000,000, representing the original cost of the railroad, 
excepting the right-of way and terminal facilities. Seventy per cent of the re- 
mainder, which is - - - 12,800,000.00 
will represent the cost of reproduction at 30 per cent less than the 
original cost of construction and equipment, not including right- 
of-way and terminals. Add to this, for cost of ri^ht-of way and 
terminals, ..----- 975,673.53 



And we have, as cost of reproduction, . . _ . 3,775,627.53 

5. WHAT IS THE PROPORTION OF THE SAID VALUATION WHICH 
IS TO BE CONSIDERED APPROPRIATED TO INTRASTATE BUSI- 
NESS ? 

The portion of the total value of the company's property to be thus appro- 
priated is the proportion which the gross receipts from intrastate business bear 
to the gross receipts from all sources. It is already ascertained that the receipts 
from intrastate business are 30.7 per cent of the entire receipts. So the amount 
to be apportioned for the purposes of this calculation to intrastate business, is 
30.7 per cent of whatever sum shall be ascertained to be the entire value of the 
property. 

(a) If the tax value is taken as the true basis, the proportion will be 30.7 per 
cent of $3,117,333, or 1956,990.53. 

(b) If the cost of reproduction be taken as the true basis of value, then the 
proportion will be 30.7 per cent of 13,775,627.53, which is $1,159,117.65. 

percf:ntage of net profits. 

What is the percentage of the net profits from intrastate business, after de- 
ducting the reduction caused by State business, is 30.7 per cent of what the 
proposed rate, upon that portion of the total value of the railroad company's 
properly, which is considered as apportioned io intrastate business? 
(a) If the tax valuation shall be accepted as the proper basis, then 

the percentage of such net receipts will be - - - .'j63,229.32 



956,995.58 
or 6.66 per cent., as the profit. 
(b) If the cost of reproduction be taken as a proper basis, the per- 
centage will be - - - - . 63,339.23 



1,159,016.65 
or 5.45 per cent, as the net profit. 

In view of the increase of 7 per cent in the results of the first quarter of 1898, 
over the first quarter of 1897, as reported by the Southern Railway Company, 
on June 1, 1898, it is conceived that this percentage, 5.45, will be increased to 
nearly, if not quite, 6 per cent for the current year of 1898. This percentage 
will, without doubt, be further materially increased by the larger volume of 
business, which will necessarily follow the reduction of rates, a result which 
has been experienced everywhere. The percentage of profit will be still further 
increased by the abolishment of the free -pass system, the result of recent decis- 



244 BOARD OF RAILROAD COMMISSIONERS. 

ions of the Supreme Court, and by the steady growth of the company's busi 
ness. Its gross receipts from operations for the last five years have been as fol 
lows: 

In 1898-94, - ...... $1,092,818.50 

In 1894-95, ......._ 1,225,598.66 

In 1895-96, - - - - - - - - 1,430,128.50 

In 1896-97, ........ 1,592.217.98 



In 1897-98 (estimated), a 7 per cent increase fo]- tlie first three months 
of 1898 liaving been reported by the company, - - - 1,700,000.00 

In view cf the low rate of interest upon money, indicated by the low value of 
securities, as set forth in the complaint, and not denied in the answer, the 
Southern Railway Company can not complain, if, after the reduction is made, 
it shall be permitted to receive over 5 per cent of the valuation of its property. 

The North Carolina liailroad Company can well afford to stand the slight 
reduction in its passenger rates, which is proposed. 

Lands, farm products, and other ccjmmodities in the State, have greatly de- 
preciated in value by reason of the appreciation of money. Why should not 
the price of transportation fall in the same i)roj>ortionV A dollar will purchase 
one and a half times as much as it would ten years ago. Why should it not buy 
one and a quarter times as much of trans] )ortation? 

The average passenger fare per mile is 2.10 cents in the United States. It is 
only 1.17 cents in Germany; 1.67 in Austria; 1.18 in Belgium; 1.29 in Denmark; 
1.45 in France; 1.64 in Italy, and 1.45 in sparsely settled Russia. 

According to its last report the Nortli Carolina Railroad Company's earn- 
ings per train mile in 1897 were - - - - - 1.25 
while those of the Raleigh and (iaston were - - - - .94 
of the Wilmington and Weldon Railway, - - 91.91 
and of tile Seaboard and Roanoke Railroad, - - - - - .72 

It is argued by the learned counsel that the Nebraska case has tied tlie hands 
of the Railroad Connnission in the matter of regulation of fares and freights. 
If the Commission shall hold that it has been shorn of this most salutary power, 
and that the rates of the railroad must stand, tlie Governor can not appeal from 
this decisicm; but if the Comndssion sliall direct the passenger rates to here 
duced, as prayed, the great questions of hiw and fact involved will then come 
before the courts, where they can be more satisfactorily tried. No liarm can be 
done by this coarse. The railroad company will at once appeal to the State 
Court, or obtain an injunction from the Federal Court, and cause a suspension 
of the new rates until they shall have received judicial sanction. If the court 
shall finally decide in favor of the railroad, it will have suffered no other incon- 
venience than the giving of a moderate bond. 

The questions are of sufficient public importance to justify the Railroad (.Com- 
mission in thus enabling the courts to take them in hand. They can not be 
satisfactorily solved in any other manner. 

After argument of counsel and consideration the Commission is of the opinion 
that the petition should not be granted, and it is ordered that case be dismissed. 
In explanation of his vote in the above case, Chairman Caldwell says: 



COMPLAINTS AND DECISIONS. 24S 



IN RE REDIKJTION PASSENGER RATES ON NORTH CAROLINA 

ROAD. 

This proceeding, instituted by his Excellency, the Governor, is worthy of 
consideration, and has received careful attention. It is not necessary in this 
case to pass upon the interesting question, whether one part of a system can be 
dotached from the whole system and dealt v/ith separately because it may ap 
pear at blush to be earninj^ more than lej^ally entitled to earn, while the same 
system may have other parts which are operated at a loss and which may well 
be claimed, should enjoy the protecting care of its parent branch. When we 
pi-une off the branches does the trunk ap}^ear hideous in its oppression ? 

The reasonableness or unreasonableness of rates prescribed by a State for 
transportation of persons and property wholly within its limits must be deter- 
mined without reference to the interstate business done by the carrier. 

Whether we approve of this declaration of the law or not, it is the law, and it 
is the boast of our citizenship that we live in obedience thereto. 

1 find that the intrastate or domestic earnings of the North Carolina 
Road, including passenger, freigiit, mail, express and miscellane- 
ous earnings, amount to, - . . . $510,066.19 

1 lind that the respondent expended for maintenance of way. equij) 
ment, conducting transportation and general expenses, - - 412,642.86 

Surplus of earnings over operating expenses. , ■ -, ■ 97,423.38 

I can conceive of no possible way to have net profits until all expen- 
ses are paid. The intrastate or domestic business should be charged 
with whatever proportion of the expenses that the per cent of in- 
trastate or domestic business bears to the whole and this I find to 
be 30.7 per cent. The total taxes paid by the North Carolina Road 
for 1897 amounted to $24,820.18—30.7 per cent of which is admitted 
by the complainant to be a just credit in favor of the respondent, 
to be deducted from the surplus of earnings above, viz: - - $97,423.33 

80.7 i)er cent of $24,820.18 is ------ 7,619.78 

Surplus after deducting taxes, . . - . . 89,803.55 

Tlie State lias leased or rented to the Southern Railway the North 
(>arolina Road, receiving therefor $266,000 per year. The decisive 
])oint in this case is. Shall the intrastate or domestic business bear 
its proportion of this rental? It is a fixed charge, and the same pro- 
portion that the intrastate bears to the whole should be deducted 
in this, as in taxes. 

30.7 per cent of $266, 000 is ----- . 84,322.00 



Leaving a net surplus of - - - $5,481.55 

The proposed reduction is 25 per cent of $261,154.84, the gross intra- 
state or domestic passenger business, which reduction, if made, 
would amount to - - - - 65.288.71 



Leaving a deficit of ------- 59,807.16 



246 BOARD OF RAILROAD COMMISSIONERS. 



STATE'S CONTENTION. 

Net earnings, - - - - - - $418,625.18 

From which nothing is to be taken as rental, leaving 13.4 per cent on 
the assessed value of the whole property. In this I can not con- 
cur, for the reason that I am of opinion that the deduction of the 
rental should be taken into consideration, and which, if done, will 
leave ------.. 152,625.18 

30.7 per cent of which to be appropriated to intrastate or domestic 

business, viz: --.-.-.. 46,853.93 

Which sum is .047 per cent on 1956,990.03, the assessed value appro- 
priated to intrastate or domestic business, and .044 per cent on 
$1,159,117.65, cost of reproduction of the road intrastate. 

This being the case, I am of opinion that the petition should be dismissed and 
the prayer for relief refused. 

Commissioner Pearson, voting in the affirmative, in explanation of his vote, says: 

" In the matter of reduction of passenger fares on the North Carolina Railroad 
and the Wilmington and Weldon Railroad, as oftntained in the petition of the Gov- 
ernor of North Carolina, from S'^ cents, first-class, to 2l4 cents, and from 2iX cents, 
second-class, to 2 cents, I have given these cases a most careful and painstaking 
investigation, both at the last hearing and when the matter was before the Com- 
mission last January, and I find no reason for reversing my former action then, 
relying as I do on the reports made to the Railroad Commission by the companies, 
and other evidence, as a basis for my conclusion, and accepting the decision of the 
United States Supreme Court in the Nebraska case as defining our powers to regu- 
late intrastate business. 

"I am of the opinion that there is comparatively no difference in the condition 
of these two railroads mentioned in the petition of the people, speaking througli 
the Executive, their net earnings being about the same percentage upon their 
respective properties. Much stress is placed on the amount of reduction asked for 
as being ruinous to the roads, and amoimting to a confiscation of their property. 
This is the substance of the answers. I certainly do not desire to be a party to 
the making of an order which would bring about such a state of affairs in North 
Carolina, and unless woefully ignorant, the evidence of the railroads will exonerate 
me from such a charge. A change from 3X cents to 2}^ cents, first-class fare, and 
from 234;" cents to 2 cents, second-class, is an average reduction of 25 per cent on a 
certain portion of the passenger business, but the average receipts per passenger 
per mile on the roads mentioned is about the average of two and a quarter cents. 
We are informed by the railroad officials that tin's is owing to the low rates afforded 
summer excursionists, fairs, religious and political conventions, a large sale of 
mileage books, and concessions made to various charitable institutions. It is, 
therefore, fair to assume that about one-third of the passenger revenue is derived 
from this class, which in no wise will be affected by the proposed reduction; hence, 
of the amount deducted by the railroad companies as a loss to them, one-third can 
safely be said to be erroneous. No consideration is given to the certain increase of 
the travel which, in passenger business, invariably results from a low rate. 

" The defendants are not justified in their estimate of their passenger receipts 
for the ensuing year. A different condition of affairs will exist if there be a strict 
compliance with the laws of North Carolina, as recently set forth by this Commis- 
sion, regarding free passes. There is no doubt but that the slight reduction which 
is proposed will be more than made up to them from this saving alone. 



COMPLAINTS AND DECISIONS. M7 

" I can not believe that the railroad officials seriously apprehend such disastrous 
results as were argued by the able counsel, but they fear, on the part of the com- 
panies, that similar cuts in other States will be made, after it is once shown that 
they can earn a reasonable profit and maintain such rates as the petition seeks to 
have this Commission order in North Carolina. The net earnings of the North 
Carolina Railroad Company, as reported for the year 1897, after deducting all taxes, 
is $418,625.18. It is admitted by the counsel for this Company that the percentage 
of intrastate business is 32.03 of the total gross earnings. In other words, that 
interstate and intrastate earnings of the North Carolina Railroad Company for 1897 
was $1,592,217.93, and in their answer they state $510,086.19 to be the gross intra- 
state or domestic business, as before mentioned, 32.03 per cent of the whole. .This 
being so, why should not their net earnings be in the same proportion ? 

•'The North Carolina Railroad is operated at a cost of 72.15 per cent of expenses 
to earnings; the Wilmington and Weldon Railroad at 58 per cent: the Raleigh and 
Gaston at 63 per cent, while the entire line of the Southern Railway System, which 
includes a number of unremunerative and expensive roads in North Carolina, is 
only 59.21 per cent. 

" It would seem from this statement that the general rule that is applicable in all 
other business does not apply to the management of the North Carolina Railroad 
Company. That rule I have always understood to be, that the more business 
handled the less the proportionate cost of operation. The receipts from intrastate 
business can be correctly arrived at from the sale of tickets and way-bills as re- 
ported by their agents, but the cost of operation as charged to intra-traffic is, and 
can only be approximated. There is no freight or local passenger train on any rail- 
road in this State which does not render a large part of its service in interstate busi- 
ness, hence to charge this entire cost of operation, as was stated by one of the wit- 
nesses, to intra-business, is manifestly unfair. 

•' The fact that the Southern Railway Company has leased the North Carolina 
Railroad at a certain rental has no bearing upon the case. The lessee company took 
the road with a full knowledge of the power of the Railroad Commission in a proper 
case to reduce the domestic passenger rates, and it could not tie the Commission's 
hands by leasing the property. Besides, it is plain to my mind that the North Car- 
olina Railroad Company is earning a sufficient net income to enable the Southern 
Railway to pay the rental and still make a handsome income after the proposed re- 
duction of rates shall have been made. The reduction of domestic passenger 
rates on the Wilmington and Weldon Railroad will not inaterially lessen the 
princely income of that corporation: its success has been jDlienomenal. A few years 
ago it divided among its stockholders over $3,000,000 assets which it had accumulated 
from the profits of its operation, and it also distributed certificates of indebtedness 
of $2,500,000, which also represented accumulated earnings, and upon it regularly 
pay a stipulated interest of 7 per cent. Its net income has gradually and steadily 
increased from $175,000 in 1878 to $900,000 in 1898; with the same ratio of increase it 
will earn $1,000,000 net profit in 1899. The amount involved in the reduction of 
rates is not more than $25,000 at the outside, and probably less. The increase of 
travel which will certainly follow lower rates will more than make up for the loss. 
It is folly to contend that this corporation can not survive the proposed reduction 
of its income.'* 



248 BOARD OF RAILROAD COMMISSIONERS. 



DANIEL L. RUSSELL. GOVERNOR OF NORTH CAROLINA, 

vs. 
THE RALEIGH AND GASTON RAILROAD COMPANY. 

COMPLi^INT FOR THE REDUCTION OF PASSENGER RATES. 
,To the Honorable Board of Railroad Commissioners of North Carolina: 

Having been retained by the Governor of North Carolina to represent the 
people of this State of North Carolina in this behalf, wejiresent this complaint, 
and respectfully ask that your Honorable Board will reduce the intrastate or 
domestic passenger rates on the Raleigh and Gaston Railroad to 2)4 cents per 
mile for firstclass, and 2 cents per mile for second class passengers. 

In view of the action of your Honorable Body, in refusing to make a general 
reduction of passenger rates operating on the three great railroad systems of the 
State, on account of the supposed meaning and application of the decision of 
the Supreme Court of the United States, in what is known as the Nebraska 
case, it is deemed advisable that test cases should be at once presented to the 
courts in order that it may be definitely determined to what extent your Hon- 
orable Board still has the right to regulate fares. It is suggested that the effect 
of the Nebraska decision has been misconceived, and that it does not prevent 
this Commission from reducing the passenger rates upon certain of the railroads 
in the State. 

We are advised that the Nebraska decision does not interfere with the pro- 
posed action of this Commission. In this case, the Railroad Commissioners of 
Nebraska undertook to reduce the freight rates of certain railroads in that State 
so low that, instead of receiving a fair compensation for the services rendered 
by them, they would have operated said railroads at a positive loss. 

The case settles several points: 

1. A railroad corporation is a person within the meaning of the Fourteenth 
Amendment, declaring that no State shall deprive any person of property with 
out due process of law, nor deny to any person within its jurisdiction the equal 
protection of the laws. 

2. A State enactment, or regulations made under the authority of a State en 
actment, establishing rates for the transportation of persons or property by rail 
roads, that will not admit of the carrier earning such compensation as, under all 
the circumstances, is just to it and to the public, would deprive such carrier of 
it;? property without due process of law, and deny to it the due protection of the 
laws, and would therefore be repugnant to the Fourteenth Amendment of the 
Constitution of Ihe United States. 

3. While rates for the transportation of persons and property within the lim- 
itM of a State are YJriniarily for its determination, the question whether they are 
so unreasonably low as to deprive the carrier of its property without such com- 
pensation as the Constitution secures, and therefore without due process of law, 
can not be so conclusively determined by the Legislature of the State, or by 
regulations adopted under its authority, that the matter may not become the 
subject of judicial inquiry. 

4. That a reduction of local freight rates, so low as to prevent the company 
from receiving any compensation, is unconstitutional. 

5. That the reasonableness or unreasonableness of rates prescribed by a State 
for transportation of persons and property, wholly within its limits, must be 



COMPLAINTS AND DECISIONS. 249 

determined without reference to the interstate business done by the carrier, 
or to the profits derived from it. And that the State can not reduce the profits 
from domestic business to nothing, because the company is making a fair re- 
turn on its intei-state traffic. 

6. That a railroad corporation is not entitled to exact such charges for trans- 
portation as will enable it at all times to meet operating expenses. f)ay interest 
on its obligations, and declare a dividend to stockholders ; but the rates must 
be fixed with reference to the fair value of the property used for the public, or 
the fair value of the sei'vice rendered. 

There is one question which was not presented to or j^assed upon by the Su- 
preme Court in this case. This question is still open, viz: What proportion of 
the value of the property of a rai1roa.d within a State shall be considered as en- 
titled to earn a reasonable percentage of profit on domestic, and what propor- 
tion on interstate business? 

While it is admitted that a railroad company, whose i)roperty is used in both 
domestic and interstate commerce, is entitled to earn, in respect to the whole of 
its business, a reasonable percentage of profit, must not that percentage of 
profit be apportioned so that a certain part of it shall be considered as derived 
from domestic and the balance from interstate business? Then the question 
arises. By what rule, or upcn what basis shall this apportionment be made? 

Suppose tliat one-third the volume of a railroad company's freight and pas- 
senger businf^ss is domestic, and twc-thirds foreign or interstate; that 6 per 
cent upon the entire property of the conqjany is a fair percentage of profit for 
it to receive for its entire operations, and that of this, 2 per cent is made from 
domestic and 4 per cent from foreign business. If the company is entitled to 
receive 6 per cent upon the value of its entire property, on account of domestic 
business, and 6 per cent on account of foreign business on the same value, it 
will receive 12 per cent in the aggregate, which is excessive. If it is receiving 
12 per cent on the whole of its business, one third of which is derived from do 
mestie tratfic, there is nothing in the Nebraska decision to prevent the vState 
from reducing the fares or freights, or both, to such a rate as will enable the 
company to make but 2 per cent on the total value of its property out of its do- 
mestic business, or, what is equivalent thereto, 6 per cent on one third of such 
total value. If the volume of domestic business is one fourth of the whole, then 
the company would be permitted to earn a profit on such business of 6 per cent 
on one fourth of the total value of its property in North Carolina, or lyi per 
cent on the total value thereof. The railroads were built to be used in both 
domestic and interstate business, and it is but just that, with respect to each 
class of business, they shall be permitted to earn a fair ])rofit upon the propor 
tion of their investment which may be deemed appropriated to that class of 
business, the total x)rofit being limited to a just per centum of the total invest- 
ment. And such proportion of the investment of its capital or of the value of 
its property, is to be deemed appropriated to domestic business, as the volume 
of such business bears to the whole business of the company. To put it in an- 
other w^ay: If a railroad company is earning a jn-ofit on all of its business of 12 
per cent upon the total value of its property, one-third of which is derived from 
domestic and two-thirds from foreign business, and if 6 per cent is deemed a 
fair profit for the company to be permitted to make on all of its business, with- 
out question the Railroad Commissioners would have the power to reduce the 
domestic or local freights or fares, one or both, to such a limit as would permit 



250 BOARD OF RAILROAD COMMISSIONERS. 

the company to receive but 2 per cent on the total value of the property, inas 
much as 2 per cent on the value of the property would, under the circunistan 
ees, be considered as a reasonable profit upon such business. 

Differently construed, the Nebraska decision would absolutely destroy in 
every case that inost salutary po\\er of the Commission — the power to regulate 
the freights and fares of railroad companies, for the protection of the public. 
Construed in this manner, the decision does not prevent the Railroad Comniis 
sioners from reducing the fares on some of the railroads in the State. 

Moreover, it will be observed that the Nebraska decision does not decide that 
a railroad must be permitted to make a certain percentage of profit out of every 
class of its domestic business, as, for example, a reasonable percentage of profit 
out of its domestic passenger business; a reasonable percentage of profit out of 
its domestic express business ; a reasonable percentage of profit out of its mail 
service; and a reasonable percentage of profit out of its domestic freight busi- 
ness. It would be beyond the power of the Commission, or the court, to inter- 
fere with the internal management and adjustment of these several matters. 
They will simply hold, that from its domestic business of all kinds, in the aggre 
gate, the company shall not be prevented from receiving a reasonable compen- 
sation for such service. 

But whether these views upon the legal questions are correct or not. it is all- 
important to the people of North Carolina that the courts should have an op- 
portunity to pass upon them. This can not be done until a case is presented. 
But no case c£in be presented until the Railroad Conanission shall under 
take, in one or more instances, to fix the fares or freights of a railroad company 
in the State. No irreparable damage will be done to the companies to be se 
lected, because the rates will not go into effect until the courts shall have in 
vestigated and projjerly decided all questions involved. 

What railroads should be selected for the test cases ? 

1. They should be situated entirely within the State. 

2. They should be located in the most populous and productive counties of 
the State, enjoying the largest domestic or local travel. 

3. They should be those having the largest income in proportion to their 
value. 

The Raleigh and (iaston Railroad Company meets all of these requirements, 
and presents a favorable subject for one of the test cases. 

According to its repoit of 1897, filed with the Railroad Commission, 
this company, with an assessed valuation for taxation of - - |l,562,15o.83 

Which the company claims was excessive, received gross earnings 

from operations for 1896-97, the sum of - - - - • 602,304 23 

Deduct operating expenses, - - - ■ - - 382,279.78 



220,024.40 
Deduct taxes, ------ - 18,626.62 



And we have remaining a net income or profit, from operating ex 

penses, of - ■ ■ ■ - - ■ - - • 206,897.78 

This is .1825 per cent on 11,562,153.32, the assessed valuation of its property. 
It is .1376 per cent on 11,500,000, the amount of its capital stock. It is .1298 per 
cent on $1,589,807, the total cost of read equipment and permanent impn ve- 



COMPLAINTS AND DECISIONS. 251 

ment to June 30, 1897, as reported by the company. (See Railroad Commission 
Report for 1897, p. 168.) 

In the absence of more satisfactory information, we will assume that this suiti, 
$206,397.78, net profit, was derived from passenger and other receipts, in the 
proportion which such receipts bear to each other. According to the company's 
reports, as appears in the Seventh Annual Report of Railroad Commission foi- 
1897, at page 169 : 

The total passenger revenue was ...--- ^118,375.78 
The total of other earnings was ------ 483,928.50 



Making a grand total of ----- - 602,304.23 

Observing this proportion, the profits for passenger service proper 

in North Carolina, including domestic and interstate, were - $40,561.00 

And the profits from other sources were - . - - 165,836.78 



Total, ......--. 206,397.78 

Mr. St. John, the able Vice-President of the Seaboard Air Line System, in 
his statement filed with the Commission, says that the earnings accruing on 
the passenger business, originating and terminating within the State of North 
Carolina, on railroads comprising the Seaboard Air Line System, were less than 
30 per cent of the total for the year ending June 30, 1897. ' 

The total of local and interstate passenger earnings were 1118,375.73, 30 per 
^cent of which represents the earnings from domestic passenger service, $35,512.71. 

A reduction of fares from domestic passenger service from 3X to 2^ cents 
first class, and from 2^ to 2 cents second-class, is an average reduction of about 
23 per cent, as stated by Mr. St. John. And such reduction affects only the 
local or domestic passenger fares. 

Twenty -three per cent of the domestic passenger receipts, to-wit, !^35,512.71 

Is "--.----- - - ■ $8,167.92 

Which represents the amount of the proposed reduction of passen 

ger rates. 
The income from operation, as reported by the company to the Rail- 
road Commission, is - - - - . . 206,397.78 

It is estimated that 40 per cent of this income is derived from do 
mes tic receipts, that is to say -.-... .$82,559.11 

From which subtract the reduction caused by the proposed change 
of passenger rates, .-.---.. 8,167.92 



And we have, .....--. 74,391.19 

As profit on the domestic passenger and freight business, after the 
reduction of domestic passenger fares has been made. 

Now, if the property of the company be valued at the amount for which it 
was assessed for taxation, $1,562,153.32, that portion of this sum which, for tlie 
purposes of this calculation is to be deemed as appropriated to domestic biisi 
ness is, according to the ratio between domestic and interstate receipts, 40 per 
cent of the whole, or $624,861.20. The net profit from domesticpassenger and 
freight business, after deducting the $8,167.92, caused by the proposed reduc- 
tion of passenger rates, is $74,391.19, which is a profit of .103 per cent on 



252 BOARD OF RAILROAD COMMISSIONERS. 

^C) 24, 861. 20, appropriated to domestic business. If the cost of the road and 
e(|uipment, or the total capital stock, be taken as the ^^ahie of the company's 
property, the result will not be materially varied. 

When L'nited States 4 per cent bonds are worth 120, North (Carolina 4 per 
cent bonds are worth 102; City of Raleig-h 5 per cent bonds, 107; Raleigh and 
Gaston 5 per cent bonds, 105; and N. Y. Central and Hudson River stock, which 
pays 4 per cent per annum, 109; and the stock of the North Carolina Railroad 
Company, which pays a dividend of G}4 percent, about 130; it would seem that 
a net profit of 5 per cent upon the value of a railroad company's property is a 
roasonable^income for it to make, and that it can not complain of a reduction 
of its domestic passenger fares, which still j)ermits more than such profit to be 
received. 

It is claimed by the railroad companies that the expenses of domestic bnsinesa 
are greater in proportion than the expenses incident to intei state business. The 
difference, as estimated by one of the most reliable witnesses, in the Nebraska 
case, is about 10 per cent. But suppose it is as much as 20 per cent. It the 
expenses incident to domestic and foreign business were in the same pro])ortion 
To each other as the i-eceipts from domestic and fVn-eign business are to each 
other, then, according to the report of the Raleigh and Caston Railroad Com- 
pany, the expenses incident to domestic business (freight and passenger) for the 
year ending June 80, 1897, would be about 96,545. But if such expenses are to 
be increased by 20 per cent thereof, such percentage would be -126,000. The 
local freights and fares in North Carolina are higher than the through freights 
and fares. It is supposed that the difference between the cost of domestic ser 
vice and the cost of interstate service is somewhat offset by this difference in 
rates. But, if this be not so, there is still a liberal margin left between the .108 
per cent profit, which the company will receive on its domestic freight and pas 
senger business, in spite of the reduction of passenger fares, and a reasonable 
profit of 5 per cent to cover this difference in cost, such margin being .0503 per 
cent of $624,866.20, or §31,430.76. 

Besides, it must not be forgotten that the practical abolition of the free pass 
system in North Carolina will, necessarily, add thousands of dollars to the reve- 
nue of the railroad. This and the income earned by the increase of travel, fol 
lowing the reduction of rates, will more than make up for the loss occasioned by 
such reduction. 

It is submitted that the reports which have been filed b}^ the Raleigh and 
Gaston Railroad Company with the Raihoad Commission furnish data which 
fully justify the proposed reduction of passenger rates. 
Respectfully submitted, 

JOHN W. HINSDALK, 
CHARLES A. COOK, 
W. C. DOUGLASS, 
Attorneys for the State of North Carolina. 

April 20, 1898. 

Mr. E. St. John, Vice-President and General Manager, Portsmouth, Va. : 

Dear Sir: I am directed by the Board of Railroad Commissioners to furnish 
you with copy of complaint by D. L. Russell, Governor of North Carolina, 
against the Ralegh and Gaston Railroad, asking that the rate of charges for 
the transportation of passengers over the Raleigh and Gaston Railroad be re- 
duced ; copy of complaint and petition herewith. 



COMPLAINTS AND DECISIONS. * 258 

1 am further directed to serve notice on you to show cause before the Board 
of Railroad Commissioners at Raleigh, N. C, on the 16th day of May next, why 
the prayer of the petitioner should not be granted. 
You will take due notice thereof. 

Very respectfully, 
[Beal of Commission.] H. C. BROWN. 

April 22, 1898. 



ANSWER. 

Mr. Chairman and Gentlemen : 

I desire first of all, to thank this Honorable Board for granting the request for a 
second hearing in the matter of a proposed reduction in passenger rates upon cer- 
tain radroads forming a part of the system known as the "Seaboard Air Line," in 
North Carolina, as well as upon other railways located within your State. 

In view of the presentation made on January 27, I shall to-day confine myself 
to a few additional statements, compiled with a view of determining, in part at 
least, the ]>rol)ahle results which must inevitably follow compliance with your cir- 
cular letter of February 21, ordering a reduction in passenger rates on and after 
March 23, 1898, from 3X cents per mile, first-class, and 2% cents per mile, second- 
class, to 2 '^ and 2 cents, respectively, over the territory named. 

In my former paper it was shown that the railroads comprising that portion of 
our system in North Carolina, earned for the year ending June 30, 1897, a less rate 
per mile per passenger, wdtli one single exception, than was reported by the Inter- 
state Commerce Commission in their last annual report, as the rate per mile per 
passenger earned by all railroads in the United States; and, among other things, I 
stated what must be conceded to be a fact: That rates ordered by legislative enact- 
ment or by a Kailroad Commission are not always obtainable; that the lono- line 
must meet tiie rates of the short line, if it is to secure that portion of business to 
which it IS entitled, etc., etc. This, in connection with rates made for excursions, 
charity, and objects deserving of consideration, as well as concessions provided for 
by legislative enactment, must and doe.s materially reduce the average rate per 
mile per passenger below that named by the Commission, and an investigation into 
the rates ordered, demonstrates that as between the old rates and those proposed, a 
reduction of 23 per cent would occur in passenger receipts within the territory 
named upon local business alone. Upon business from other States, and j^assing 
through North Carolina, the reduction ordered would amount to nearly 12 per cent on 
first-class and 16 per cent on second-class, a reduction which could not be consid- 
ered, if only present conditions are to be maintained, to say nothing of improve- 
ments so badly needed in ahnost every direction. 

The earnings accruing on passenger business originating and terminating within 
the State of North Carolina, on railroads comprising the Seaboard Air Line, was 
less than 26 per cent of the total, for the year ending June 30, 1896. and less than 
30 per cent of the total for the year ending June 30, 1897, demonstrating, does it 
not? that the hardship following such a reduction as that proposed can but fall 
most heavily upon the railroads, while the benefit to be derived therefrom bv the 
good people of your State, when divided among those who would be its recipients, 
oould but be infinitesimally small; so small as to be undesirable, when its true 
meaning is understood. So far as it concerns interstate travel, it is presumed vou 



254 BOARD OF RAILROAD COMMISSIONERS. 

would readily assent to the proposition that the greatest interest of the people of 
your State is in the success of her railroads, which are making every effort to bring 
to them added prosperity. 

It has been stated, and I think truly, that a passenger train failing to earn one 
dollar per mile gross revenue, fails to pay its expenses; and speaking upon this sub- 
ject, the President of the Lake Shore and Michigan Southern and New York, Chi- 
cago and St. Louis Railways, recently stated that the great bulk of the passenger 
trains operating over his lines in Ohio were earning less than 50 cents per mile; 
that, in fact, many of them did not anything like make expenses, and he cites one 
of his trains, which earned only $3.81 upon its entire trip, which was less than the 
wages of its locomotive engineer. The earnings of many other trains are given, 
and he unhesitatingly states that all are unprofitable, but that it is necessary to 
have a fairly good train service in order that people may be induced to locate their 
factories and other industries along the road. We have many, very many, such 
experiences in North Carolina. In Ohio, which had, at the last census, 90 persons 
to the square mile, as against less than 33 in North Carolina, every legislature 
which has assembled since 1886. it is said, has introduced bills to reduce passenger 
rates to two cents per mile, but such rates have not yet been legalized, and 
the chances are that they will not be effective for sometime to come, the people not 
demanding them. The passenger train earnings of all roads comprising the Sea- 
board Air Line were very much less than one dollar per mile; in fact, to state posi- 
tively, it is a matter of record that but one road in the system, for the year ending 
June 30, 1896, earned as much as 81.7 cents per mile, while the passenger train 
earnings of one road for that year were only 30.4 cents per mile. For the year end- 
ing June 30. 1897, the highest earnings per train mile from passengers was 79.3 
cents, and the lowest 26.5 cents; and were it not for the very reasons mentioned by 
President Callaway, many of the trains operated would have to be abandoned for 
want of sufficient revenue to meet the total requirements. In a territory so 
sparsely settled as is North Carolina at the present time, rates such as have been 
announced would prove fatal to every railroad interest, and in view of a recent de- 
cision from the highest court in the land that railroads are entitled to receive com- 
pensation sufficient to meet operating expenses, interest upon bonds and a reason- 
able dividend upon its stock, is it not right that constant contentions for reductions 
should, for a time at least, cease until the railroads traversing your State have 
arrived at the conditions above referred to? The people unquestionably desire only 
that which is equitable and right, and we hear of no urgent demands upon their 
part for a greater reduction in passenger rates. 

Statistics show that there are in the United States, approximately. 800,000 em- 
ployees of railroads, and to be found among this number are: 

100,000 station men. 

35,000 locomotive engineers. 

40,000 firemen and helpers. 

25,000 conductors and dispatchers. 

65.000 trainmen. 

30,000 machinists. 
100,000 shopmen, other than macliinists. 

20,000 telegraph operators and their helpers. 

45,000 switchmen, flagmen and watchmen. 
175,000 trackmen. 

And is it not reasonably safe to suppose that this vast army represents, in those 



COMPLAINTS AND DECISIONS. 255 

dependent upon each for support, at least three others, making the total number 
who have to look to the railroads of this country for a living 3.200,000 persons; and 
is the other fact comprehended, that the railways of the United States expend each 
year, not counting the interest paid upon its bonds, or the dividends paid upon 
its preferred and common stock, more than $100,000,000 in excess of the total ex- 
penditures of the United States Government: Indeed, the railroads are the great 
disbursing agencies of the countr5\ 

Let us deal fairly with this great interest, and see to it that it is not only per- 
mitted to exist, but to earn from just and reasonable rates sufficient to meet not 
only its operating expenses and taxes, but to have something over to meet its phys- 
ical necessities and to pay that debt which it justly owes to its bond and stock- 
holders, viz. the interest upon its bonds, coupled with a reasonable dividend upon 
its stock. And right here let me say, that the railroads comprising this line have 
no bonds or stock which does not represent actual cash expenditures. 

Implicitly relying upon the justice of our cause, and with the firm conviction 
that you will listen thereto and decide rightly in connection therewith, I close, 
with highest appreciation for your kind attention. 

E. ST. JOHN, 
Vice-President and General Manager. 



DANIEL L. RUSSELL, GOVERNOR OF NORTH CAROLINA, 

vs. 
THE RALEIGH AND GASTON RAILROAD COMPANY. 

To the Honorable Board of Railroad Commissioners of North Carolina : , 

The respondent, further answering the complaint filed by His Excellency the 
Governor of North Carolina, in his application for the reduction of passenger rates 
upon respondent's railroad, and expressly referring to and reiterating the replies 
heretofore filed by Mr. E. St. John, Vice-President and General Manager Seaboard 
Air Line, in the former investigations of the same question, and which have already 
been admitted as answers in this proceeding, respectfully suggests : That the ques- 
tions of law presented by the complaint, in its discussion of the scope and effect of 
the decision of the Supreme Court of the United States in what is known as the Ne- 
braska case, in relation to the powers of this Commission and its duties in the fixing 
of rates for the government of railroad companies, need no specific and extended 
answer from the re'spondent at this stage of the proceedings. 

Your respondent further suggests that this Commission is provided, in section 5 
of the act known as the " Railroad Commission Act," with specific directions as to 
the matters to be considered by it in the " making of reasonable and just rates of 
freight and passenger tariff," to-wit : '-The actual value of the employed capital of 
the corporation, the earnings of the railroad and the cost of operating the same, the 
competition of rival lines of water and railroad transportation companies within the 
State, and any and all other matters proper to be considered by them." 

This respondent further says, that the subject brought forward in the present 
complaint has been repeatedly considered by this Board, after the most painstaking 
investigation, with the uniform conclusion that the present rates of passenger trans- 



256 BOARD OF RAILROAD COMMISSIONERS. 

portation. as applying to the whole system of railroads, operated under one man- 
agement, are reasonable and just and ought not to be disturbed. Indeed, the last 
decision of this Commission is so recent, that it is impossible that any material 
change in the profits or losses incident to the business of transportation can have 
taken place since it was solemnly made, and this respondent invokes the principle 
of stare decisis until it be made to appear that such change has taken place. 

Respondent deprecates the making of test cases to elicit the opinions of higher 
courts on questions which may arise hereafter, it being well settled that no court 
will propose such questions for decision until the same become practical, and theu 
not for the purpose of ehciting opinions of other courts, but by exercise of the judg- 
ment of the court upon which the responsibility is placed. 

This respondent respectfully represents that the only question whicli is now be- 
fore the Commission is, whether its former and repeated adjudications upon the 
matter of passenger rates shall stand, or has such showing been made by the com- 
plaint as impels the Commission to change them? 

In reply to the suggestion that your respondent presents a favorable subject for 
one of the proposed test cases, it is respectfully submitted: That the complaint 
leaves out of view much that is important to be considered in arriving at a solution 
of the question whether the rates now existing are too high : 

1. That the respondent is one of a system of railroads, established not merely foj 
the benelit of its shareholders, but for the public comfort and convenience. 

2. That the burden is upon respondent of bearing the expenses out of its earnings 
of those enterprises which, without question, fail to make a return to their stock- 
holders while affording great facilities to the public. 

3. That the interest upon the bonded debt of respondent, every dollar of which, 
incurred in the building and improving of its road and equipment, is an element 
wliich ought to be taken into careful consideration in arriving at the value of its 
property and its capacity to bear a further reduction in its charges. 

Respondent begs herewith to present a tabulated statement, showing its true con- 
dition and the reason why it has been unable to declare dividends, by which it will 
clearly appear that the assumption that it is now earning net profits to so large an 
amount as to require a reduction of its passenger rates for the benefit of the public 
is fallacious and misleading : 

STATEMENT OF RECEIPTS AND DISBURSEMENTS OF RALEIGH AND 
GASTON RAILROAD COMPANY FOR THE FISCAL YEAR 1896-97. 

Gross earning from operation $602, 804. 28 

Deduct operating expenses $382, 27-9. 88 

Deduct taxes 13, 626. 62 

Deduct interest, 5 per cent, on $1,200, 000 First Mortgage 

Bonds 60,000.00 

Deduct interest paid on other obligations 6, 402. 56 

Deduct one-half loss (Raleigh and Gaston's proportion) 

operating G. , C. and N. Railway 1 19, 848. 79 

582,152.80 

Net income 20, 151 . 48 

Which is . 0184 per cent of the capital stock of $1, 500, 000. 

The above shows the result of the operation of the Raleigh and Gaston Railroad 
for the past year. It includes interstate and intrastate business. Mr. St. John, in 



COMPLAINTS AND DECISIONS. 257 



his answer based upon official data, estimates that the intrastate business will not 
amount to 30 per cent of the entire business. Calculated upon this basis, we have 
the following : 

Total income from operation of Raleigh and Gaston 
Railroad for year named, after deducting operating 
expenses, was $220.024. 40 

Thirty per cent of this gives 66, 007. 32 

Deduct from this, taxes $13, 626. 62 

Deduct 30 per cent interest paid ($60, 000) .... 18, 000. 00 

Deduct 30 per cent interest paid on other obligations 

($6,402.56) 1,920.77 

Deduct 30 per cent of one-half loss operating G., C. and N. 

Railway - 35,952.90 



69, 500. 29 66, 007. 32 
Showing net loss of 3, 492. 97 

Reducing the value of the investment, not in accordance with its actual cost, but 
of its capital stock of $1,500,000, we have 30 per cent, or $450,000, upon which the 
company is fairly entitled to pay a dividend. No dividend can be paid as the com- 
pany has sustained a loss. 

Suppose we estimate the proportion of the intrastate business at 40 per cent of the 
entire business, as is done by Col. Hinsdale, of counsel for the Governor, and we 
have the following result : 

Forty per cent of $220,024.40 is $88, 009. 76 

Deduct taxes $13,626.62 

Deduct 40 per cent of interest ($60,"000) 24, 000. 00 

Deduct 40 per cent of interest on $6, 402. 56 2, 561. 02 

Deduct 40 per cent of one-half loss operating G., C. and N. 

Railway 47, 937 . 20 

88, 124. 84 88, 009. 76 
Showing net loss of 115.08 

Taking 40 per cent of the amount invested, $1,500,000. of capital stock — being less 
than the assessed value of the property, we have $600,000, the value of the invest- 
ment, upon which a dividend should be paid from intrastate business, (this is giving 
Col. Hinsdale the benefit of his patented process of determining the value of the in- 
vestment in the property indicated), and there is nothing left in hand with which 
to pay the stockholders. 

And for further answer this defendant avers that any reduction of its passenger 
rates, in the light of the facts and circumstances aforesaid, would be to deprive this 
defendant of its property without due process of law, and would deny to it the 
equal protection of the laws, and it expressly claims the protection of the Fourteenth 
Amendment to the Constitution of the United States. 

And having fully answered, this respondent asks to be hence dismissed. 

legh r. watts,. 
Macrae & day, 

Counsel for Respondents. 



1 1 



258 BOARD OF RAILROAD COMMISSIONERS. 

STATE OF VIRGINIA- 
CITY OF PORTSMOUTH. 

E. St. John, being duly sworn before me, J. M. Perkins, a Commissioner of Affi- 
davits for the State of North Carolina, residing in the city of Portsmouth, Va., says 
that he is the Vice-President and General Manager of the respondent ; that he has 
read the foregoing answer, and that the matters and things therein set forth are 
true of his own knowledge, except as to those which are stated upon information, 
and as to them lie believes it to be true. 

E. ST. JOHN. 
Subscribed and sworn to before me this 5th day of July, A. D., 1898. 

J. M. PERKINS, 
Commissioner of Affidavits for the State of North Carolina, residing in the city of 
Portsmouth, Va. 
[Seal.] 



EXHIBIT ^-A. 



I, John H. Sharp, Treasurer of the Raleigh and Gaston Railroad Company, hereby 
certify that the attached exhibit is an accurate extract from the books of said com- 
pany, and that the amounts therein stated have been actually expended for better- 
ments, permanent improvements, rolling stock and equipment for the Raleigh and 
Gaston Railroad Company since the execution of the mortgage of said company for 
$1,000,000.00 in 1873; and I do further certify that the actual capital invested in said 
road and represented by said road, its equipment, etc., is over $3,000,000.00, and 
that the figures showmg such investments in permanent improvements, better- 
ments, &c., have appeared in the public reports of said company, from year to year. 

I do futlier certify that not one dollar of the proceeds of the sale of the bonds 
issued and secured by the mortgage of January 1st, 1897, has been expended for the 
purchase of Seaboard and Roanoke Railroad Company stock, or of any other stock, 
but that the stock of said Seaboard and Roanoke Railroad Company, now owned by 
the Raleigh and Gaston Railroad Company, was purchased and paid for before said 
bonds, secured by said mortgage of January 1st, 1897. were issued or sold. 

JNO. H. SHARP, 
Treasurer of the Raleigh and Gaston Railroad Company. 

Subscribed and sworn to before me this 19th day of July, 1898. 

[Seal.] 

J. M. PERKINS, 

Notary Public. 



COMPLAINTS AND DECISIONS. 259 



STATEMENT OF COST OF ROAD AND PROPERTY OF RALEIGH AND 

GASTON RAILROAD COMPANY SINCE 1873, SHOWING AMOUNTS 
CHARGED TO EXPENSES ALSO TO INCREASED CONSTRUCTION. 

Amount up to 1873 $1,500,000.00 

Additions since that date charged in expenses, viz.: 

In 1873 $54,892.61 

1874 60, 935 . 58 

1875 75, 414. 27 

1876 58, 336. 54 

1877 14, 625. 96 

1878 3, 200. 00 

1879 61 , 546. 05 

1880.* 144,951.53 

1881 215,127.01 

1882 55, 645. 95 

1883 62,791.21 

1884. . . . : 104, 613. 84 

1885 '. 74,714.70 

1886 99,368.52 

1887 70,511.37 

1888 87, 879. 01 

1889 84,171.26 



1,328,725.41 



Additions since were charged to cost of road and property, viz: 

In 1890 58,292,52 

1891 63,661.77 

1892 38,808.24 

1893 . 6,520.81 

1894 13,668.81 

1 895 380. 00 

1896 6, 545. 91 

1897 1, 812. 50 

188,690.56 
' Less deductions 4, 250. 00 



184.440.56 



3.013,165.97 



Col. Hinsdale, of counsel for the State, tiled with the Commission the following 
paper, in answer to an explanation of the affidavit of Mr. J. H. Sharpe, Treasurer 
of the Raleigh and Gaston Railroad Company : 



260 BOARD OF RAILROAD COMMISSIONERS. 



EXTRACTS FROM PRINTED REPORTS OF THE RALEIGH AND GASTON 
RAILROAD COMPANY, STOCKHOLDERS" MEETING, ETC. 

On page 21 of the reports of the stockholders' meeting of 1873 appears a full copy 
of the deed of trust or mortgage of the Raleigh and Gaston Railroad Company for 
$1,000,000, dated in 1878, falling due in 1898, which was authorized by the act of the 
General Assembly of North Carolina of December 13, 1871, authorizing the Raleigh 
and Gaston Railroad Company to issue $1,000,000 of mortgage bonds, and to sub- 
scribe and pay therefor to a $1,000,000 of preferred stock of the Raleigh and Augusta 
Air Line Railroad Company. Copy hereto annexed. 
On page 43 of the said printed report it appears that the roads, engines 

and property cost $1 , 500, 000. 00 

And that it owns 6,210 shares of common stock in the Raleigh and Au- 
gusta Air Line Railroad Company, nominal value 150, 000. 00 

And fifty-three shares of Raleigh and Gaston stock, par value 5, 300. 00 

Debt of the company May 31, 1873 85,000.00 

In the President's report of July 1, 1874, (see p. 10, of printed report) he says: 

" By reference to the report of the Treasurer, you will note that we have paid for 
and received from the Raleigh and Augusta Air Line Railroad 3,300 shares of their 
gua^ranteed 8 per cent stock at par, and have sold $220,000 of our first mortgage 
bonds at par and interest, since which time additional sales have been made upon 
the same terms." 

On page 19 appears the following entries : 

Net sales, 220 mortgage bonds $217, 086. 24 

Appropriates 80 mortgage bonds at par 80, 000. 00 

Making of bonds 300,000.00 

Paid for guaranteed stock in Raleigh and Gaston, 3,300 shares at par. 330, 000. 00 

On page 20, roads, engines and property cost 1, 500, 000. 00 

Stocks in 3,300 shares in Raleigh and Augusta Air Line at par 330, 000.00 

Six thousand two hundred and ten shares, common, valued at._ 150,000. 00 

Fifty-three shares Raleigli and Gaston Railroad Company, par 5, 300. 00 

Coupon first mortgage bonds due January, 1898 300, 000. 00 

In the President's report of July 13, 1875, page 8, he says : 

'• We have sold $176,000 of our mortgage bonds at par and interest on account of 
our subscription for guaranteed stock of the Raleigh and Augusta Air Line Railroad, 
of which we hold 5,000 shares, bearing the same rate of interest." 

On page 28 of the report of the meeting of 1874 appears : 

Road engines and cost . . . $1, 500, 000. 00 

Stocks, guaranteed, 5,000 shares, Raleigh and Augusta Air Line 500,000.00 

Six thousand two hundred shares common stock in said company. .. 150,000.00 

Fifty-three shares in Raleigh and Gaston 5, 300. 00 

Coupon first mortgage due January, 1898 476, 000. 00 

In the report of 1876, at page 25. appears : 

Road engines and cost $1 , 500, 000. 00 

Stock in Raleigh and Augusta Air Line, May 31, 1875 500,000.00 

Increase since then. 220,000.00 



COMPLAINTS AND DECISIONS. 2f)l 

Six thousand two hundred shares in Raleigh and Augusta Air Line, 

valued at 150, 000. 00 

Fifty-three shares Raleigh and Gaston stock •_ 5, 800. 00 

First mortgage bonds due January. 1898, amount, May 1, 18?.") 476, 000. 00 

Increase since then 182, 000. 00 

Total bonds 658, 000. 00 

In the report of 1877. page 17, appears : 

Road, engines and cost $1. 500, 000. 00 

Investment, guaranteed stock of Raleigh and Augusta Air Line 948. 282. 98 

Bonds of other companies, cost 17, 257. 50 

Total 965, 540. 43 

Raleigh and Gaston. 58 shares 5, 800. 00 

Raleigh and A ugusta Air Line, last valuation 1 , 500, 000. 00 

First mortgage bonds due January. 1898 790,000.00 

The President's report for July, 1878. (see printed report, p. 8) says: 

•• During the past fiscal year, this company lias completed its subscription to the 
guaranteed stock of the Raleigh and Augvista Air Line Railroad, as authorized by 
the resolution of stockliolders of October 8, 1872. and it was deemed advisable to 
withdraw^ from the market all bonds of this company remaining unsold. There 
have been sold in all 820 bonds of which 80 were sold during the past year. The 
bonded indebtedness of the company is, therefore, $820,000. Due January 1, 1898. " 

On page 18 of this report appears: 

Road engines and property cost $1, 500, 000. 00 

Guaranteed stock of Raleigh and Augusta Air Line 1 , 000, 000. 00 

Bonds of other Companies . 1 , 725, 750. 00 

Stock. Raleigh and Gaston 5, 600. 00 

Stock, Raleigh and Augusta.. 150,0ii0. 00 

Liabilites, first mortgage bonds due January 1898 820, 000. 00 

Report of 1879 shows: 

Road, engines and property cost $1, 500, 000. 00 

Investiiients, guaranteed stock of Raleigh and Augusta Air Line cost 1, 000, 000. 00 

Common stock, Raleigh and Augusta 150, 000. 00 

Bonds and stock of Atlanta and Charlotte Air Line, cost 17, 257. 50 

Stock Raleigh and Gaston last year 5, 600. 00 

Increase since cost 79, 485. 00 

On page 24, liabilites, first mortgage bonds, due January 1898 820, 000. 00 

On page 16, report 1880, appears: 

Cost of road, engines and property $1, 500, 000. 00 

Investments 1,240,085.50 

Bills receivable 71,464.01 

Debts due the company 45, 986 . 08 

Cash 75, 908. 10 

On page 17, bonds of the company, first mortgage due. January 1898 820.000.00 



262 BOARD OF RAILROAD COMMISSIONERS. 

The report of 1885, at page 14 shows: 

Cost of j-oad, engines and property $1, 500, 000. 00 

Investments ". 1, 035, 000. 50 

Debts due by otlier companies. _ 175, 578, 04 

Cash on deposit _ 140, 519. 04 

On page 15, mortgage bonds 820, 000, 00 

The president's report of October 4, 1882, page 6, says: 

" Under authority given to the Board of Directors by a resolution of stockholders 
passed on the 7th day of October, 1880, this company purchased on the 12th day of 
November, 1881, four hundred and forty-two second mortgage bonds and four 
thousand four hundred and twenty shares of stock of the Carolina Central Railroad 
Company. 

" To meet the cash payment required for this purchase, the company sold the one 
hundred and eighty thousand first mortgage bonds then remaining in the treasury 
unsold, at the rate of hundred and twenty and accrued interest, free of all commis- 
sion, and borrowed eighty thousand dollars of the Seaboard and Roanoke Railroad 
Company, which, with moneys in the treasury, was sufficient, without in the least 
embarrassing the company. " 

On page 14 of the same report: 

Cost of road, engines and property $1, 500,000.00 

Investments, July 31, 1881 1,235,035.50 

Increase July 31, 1882, (Carolina Central) 487,791.08 

Less premium on bonds sold 36, 000. 00 

(These bonds being the remaining 180,000 of the million dollar issue of first 
mortgage bonds) 

Bills receivable --- 36,699.89 

Debts from other companies 62, 423. 95 

Cash on deposit . 73, 197. 78 

Liabilites, mortgage bonds due January 1898 1 , 000, 000. 00 

Bills payable '. 108,417.00 

Report of 1883, (on p. 12) appears: 

Cost of road $1,500,000.00 

Investments July 31, 1883 1,686,826.58 

Increase since 2,000.00 

Total 1 , 688, 826. 58 

On page 13, mortgage bonds due January, 1898 1, 000, 000. 00 

In the report of the President of October 1, 1884, page 6, he says : 

"During the year the company have added to their investments in the Raleigh 
and Augusta Air Line by the purchase of 747 shares of stock." 

On page 14 appears : 

Cost of road, engines and property $1, 500,000.00 

Investment (increased |4,738.50) 1,693,565.08 

Bills receivable, (increased $40.000) 91, 000. 00 

On page 15, mortgage bonds due January, 1898... 1,000,000.00 

On page 5, of 1885, proceedings of annual meeting of stockholders, appears a re- 
port which authorizes the exchange of the $1,000,000 of the Raleigh and Augusta 
Air Line preferred or guaranteed stock, for a $1,000,000 or mortgage bonds of the 
Raleigh and. Augusta Air Line ; this change being made under, and by au- 



COMPLAINTS AND DECISIONS. 263 

thority of an act of the General Assembly of North Carolina, ratified the 23rd of 
February, 1885. The said resolution authorized the mortgage to secure the said 
bonds. 

On page 18 of the same printed report appears : 

Cost of road, engines and property $1 , 500, 000. 00 

Louisburg Railroad 4, 354. 59 

Investments, (increased $580) 1, 694, 145. 08 

Bills receivable. - ... 71, 512. 00 

Debts due by other companies 55, 099. 32 

Cash on deposit 97, 228. 89 

On page 19, mortgage bonds due January, 1898 1,000,000.00 

At the meeting of November 11, 1886, (see printed report p. 3), a resolution 
was passed authorizing the sale of the first mortgage bonds of the Raleigh and 
Augusta Air Line, for the purpose of acquiring by subscription, purchase, exchange 
or otherwise, the stocks or bonds or both of other railroad companies, and for no 
other purpose. The following is a copy of the resolution : 

" Resolved, That the Board of Directors of this company be, and they are hereby 
authorized and empowered until otherwise directed by the stockholders in their dis- 
cretion, upon such terms and conditions, at such prices and to such extent as they 
may consider expedient, to negotiate, sell or hypothecate the first mortgage bonds 
of the Raleigh and Augusta Air Line Railroad Company : and with the proceeds 
thereof, to acquire for this company, by subscription, purchase, exchange or other- 
wise, the stocks or bonds or both of any other railroad or transportation company or 
companies now, or hereafter to be organized, which connects or may connect, di- 
rectly or indirectly with this company or any of its branches ; or to exchange said 
bonds or an}'- portion thereof, for the stocks or bonds or both of such company or 
companies. 

" Resolved, That in order to negotiate, sell or exchange the said bonds to the best 
advantage, the Board of Directors are authorized and empowered in their discretion 
to direct the President for, and in the name of this company, to guarantee or en- 
dorse the said bonds so negotiated, sold or exchanged.'' 

On page 14 of this report appears : 

Cost of road $1, 500, 000. 00 

Investments 1 , 694, 145. 00 

Debts due by other companies ._ . 59, 945. 55 

Cash on deposit 38, 695. 80 

Louisburg Railroad 20, 058. 07 

On page 15, mortgage bonds due January, 1898 1,000,000.00 

The President's report of November 6, 1887, says : 

•'Under authority given by the stockholders to the Board of Directors at their 
last meeting, the company have subscribed at par to 2,500 shares of $100 each of capi- 
tal stock of the Georgia, Carolina and Northern Railroad Company ; and on page 7 
this company has also subscribed to 1,500 shares of the capital stock of the Durham 
and Northern Railroad Company." 

On page 14 of the same report appears : 

Cost of road, engines and property. $1, 500, 000. 00 

Cost of Louisburg Railroad 21, 266. 57 

Investments _ . 1, 694, 145. 08 

Bills receivable 141 , 057 . 67 



264 BOARD OF RAILROAD COMMISSIONERS. 

Cash 74, 585 . 84 . 

Debts due by the company 64, 351 . 41 

On page 15, mortgage bonds due January, 1898 1 , 000, 000. 00 

On page 16, investments reduced, Raleigh and Augusta Air Line 
bonds (sold) to pay for the stock in the Georgia, Carolina and 
Northern 250. 000. 00 

Report of 1888, (on p. 15) says : 

Cost of road, equipment and property $1 , 500. 000. 00 

Cost of Louisburg Railroad 21.266.57 

Investments 1.553,070.08 

Bills receivable 238, 07 1 . 73 

Due by other companies 333, 719. 96 

Kept on deposit 1 85, 375. 17 

First mortgage bonds 1. 000. 000. 00 

On page 16, premium on Raleigh and Augusta Air Line bonds (sold) _ 150. 00 

Report of 1889, (on pp. 14 and 15) says : 

Cost of road and property, construction $1, 500, 000. 00 

Investments, stocks, bonds, etc 1,553,070.08 

Cost one-fourth compress, Charlotte 4, 529. 86 

Bills receivable 358. 524. 73 

Surplus on hand, etc 120. 842. 18 

Due to the company 346, 244. 47 

Cash in banks 66, 366. 63 

First mortgage bonds 1 , 000, 000. 00 

Report of 1890, (on p. 16) says : 

Cost of road and property $1 , 558, 292. 52 

Being an increase of 58, 292. 52 

Which was paid oat of earnings of that year, (see pp. 15 and 16). 

Investments, stocks, bonds, etc . . |1, 555, 570. 08 

Cost of Louisburg Road 21 , 266. 57 

Cost one-fourth compress, Charlotte 4, 529. 86 

Bills receivable . 329, 264. 73 

Surplus on hand 27, 783. 36 

Debts due to the company 341. 089. 68 

Cash in banks... 184,650.87 

First mortgage bonds 1, 000, 000. 00 

At the meeting of December 17, 1890, a resolution was passed authorizing a 
mortgage of $2,500,000 for the purpose of paying off the preseat mortgage debt of 
$1,000,000. and to provide funds "to enable the President and directors to acquire 
from time to time such lawful interest or interests in other companies, in such law- 
ful manner or form as may be deemed advisable and necessary to the interests of 
the company, and to build and equip branch lines, or for such other purposes as 
may be authorized by the stockholders." (See p. 5, minutes.) 

The President's report of November 9, 1894. shows that the Raleigh and Gaston 
Railroad Company and the Seaboard and Roanoke Railroad Company together have 
purchased $600,000 of the bonds of the Seaboard Air Line Belt Railroad Company, 
the Raleigh and Gaston Railroad Company having already acquired $24,980 of the 
capital stock of the company. The funds to pay for these bonds could be gotten 
only from the proceeds of the sale of the Raleigh and Augusta first mortgage bonds 
held by the Raleigh and Gaston Railroad Company. 



COMPLAINTS AND DECISIONS. 265 

The following is taken from the printed reports of the Railroad Commission. 1891 : 
The Raleigh and Gaston Railroad Company reports on page 480 stocks owned as 
follows : 



Total par 



Valuation. 



value. 

Georgia. Carolina and Northern Railway Company S250, 000 |250, 000. 00 

Durham and Northern Railway Company 150, 000 150, 000. 00 

Raleigh and Augusta Air Line Railroad Company 172, 200 157, 278. 50 

Raleigh and Gaston Railroad Company 182, 800 87, 9fi0. 50 

Carolina Southern Railroad Company 3, 000 3, 000. 00 

Louisburg Railroad Company... 100 45.00 

Richmond, Fredericksburg and Potomac Railroad Company 8, 000 9, 695. 00 

Total - - - - . 657. 974. 00 

Bonds owmed as follows : 
First mortgage bonds, Raleigh and Augusta Air Line Rail- 
road Company $456, 000 

Second mortgage registered income bonds. Carolina Central $456, 000. 00 

Railroad Company, with stocks, coupons attached 442.000 451.791.08 

Total . 907, 791 . 08 

On page 483. the cost of road is reported, June 30, 1890, at $1,522,593. 11 

June 30. 1891 1, 542, 413 . 64 

Cost of equipment, June 30, 1890 35, 699. 41 

Cost of equipment, June 30, 1891 79, 540. 65 

Funded debt 1 , 000, 000. 00 

Cash on hand, (seep. 426) 137,008.82 

Report of 1892 (p. 188) shows precisely the same stocks owned, except 
that the company has purchased since the last report the Colum- 
bia and Railroad stock valued at 5, 001 . 00 

The company reports only $200, 000 of first mortgage bonds, worth. - . 206, 000. 00 

Instead of 456, 000. 00 

Having disposed of in the last twelve months 250, 000. 00 

Cash on hand, (p. 179) 306,571.07 

Bills receivable, increased since report of 1891 , about 28, 000. 00 

It reports the same amount of second mortgage registered bonds of 
the Carolina Central on hand, and on page 186 it reports a decrease 

of $250, 000 bonds owned, and an increase of stocks owned 5, 001 . 00 

Of other permanent investments 34, 750. 00 

And an increase of cash and current assets 198, 265. 80 

Increase of sundries 20, 469. 55 

Cash on hand in report of 1893 (p. 176) shows the same stocks owned, except the 
company reports as acquired in addition since the last report : 

Seaboard Air Line Belt Railroad 25, 000. 00 

And it reports, second mortgage income registered bonds. Carolina 

Central Railroad 442, 000. 00 

Of the value of 451 , 791 . 08 

It reports, costs of road at 1, 571 , 845. 69 

An increase of 6, 520. 81 

It reports no increase of cost of equipment. 



266 BOARD OF RAILROAD COMMISSIONERS. 

It reports total of stocks 687,975.00 

Being an increase of 25, 000. 00 

It reports decrease of bonds owned 206, 000. 00 

Being the $206, 000 first mortgage bonds of the Raleigh and Augusta Air Line. 

It reports an increase of permanent investments 57, 188. 25 

And an increase of cash and current assets . 104, 978. 03 

It reports the funded debt the same. 

It shows on hand of cash, (p. 173) '. 6, 367. 53 

It shows bills receivable 842, 434. 37 

Being an increase over the report of 1892 of 424, 909. 64 

Debts due from solvent companies and individuals have been de- 
creased about 5, 500. 00 

Report of 1894. 

The stocks owned are precisely the same. 

The bonds owned are increased as follows : 

Carolina Central, Shelby division : 100, 000. 00 

Valuation 76,250.00 

Registered bonds, Carolina Central, par value 533, 000. 00 

Valuation 474,541.08 

Cost of road reported at 1,582,381.17 

Being an increase of 10, 535 . 48 

Cost of equipment . _ . . . 97, 570. 98 

Being an increase over 1893 of . . 2, 133 . 33 

Stocks owned are reported the same. 

Bonds owned are reported an increase of 99, 000. 00 

Other permanent investments, a decrease of. 47, 040. 37 

Cash is reported on page 177 40, 671 . 61 

Bills receivable. . 610, 530. 34 

Being a decrease of 231, 904. 03 

Due from solvent companies 300, 828. 35 

Being an increase of between three and four thousand. 

Cash and current assets 980, 365. 19 

Being a decrease of 182,371.17 

Report of 1895 : 

Stocks owned the same. 

Bonds owned the same, with additional International Cotton States 

Exposition 2, 000 . 00 

Cost of road same. 

Cost of equipment 94,070.98 

Being less 25, 000. 00 

Bonds owned 552, 791 . 08 

Being $2, 000 more. 

Cash and current assets 1, 034, 217. 93 

Being an increase of 53, 821. 74 

Other assets, equipment trusts 80, 790. 37 

Being an increase over 1894 of 16, 562. 50 

On page 219 is found cash reported at 3, 687. 47 

Bills receivable 680, 779. 30 

Being an increase of 70, 248. 96 

Due from solvent companies 322, 653. 55 



COMPLAINTS AND DECISIONS. 267 

Being an increase of .- - 21,825.20 

Report of 1896 : 

Cost of road is reported at 1, 589, 307. 08 

Being an increase of 6, 545. 91 

Cost of equipment 93, 320 . 98 

Being an decrease of 750. 00 

Stocks owned same. 

Bonds owned 550,791.08 

Being a decrease of 2, 000. 00 

Other permanent investments the same. 

Cash and current assets 1, 069, 072. 30 

Being an increase of . . 34, 854. 37 

Equipment trusts. 100, 933. 88 

Cash on hand, (see p. 2001) 6, 083. 50 

Bills receivable 656, 140. 37 

Being a decrease of . 24, 638. 93 

Due from solvent companies 363, 506. 67 

Being an increase of 40, 853. 02 

Net traffic balance due from other companies 43, 341 . 76 

Being an increase of • 21 , 094, 71 

Report of 1897 : 
The same stock increased by Seaboard and Roanoke Railroad stock, 

(pp. 168, 174) 191 , 070. 00 

Bonds owned the same as last year. 

Costof road, (see p. 168) 1,591,119.58 

Increase of 1, 812. 50 

Cost of equipment, (no increase) - 93, 320. 98 

Stocks owned 879. 025. 00 

Being an increase of 191, 070. 00 

Bonds owned, (no increase) 550, 791 . 08 

Other permanent investments the same 66, 165. 05 

Cash and current assets 1 , 146, 604. 16 

Being an increase of 77, 531 . 86 

Equipment trusts 125, 154. 72 

Being an increase of 24, 220. 84 

The funded debt, which, up to this time has been reported 1, 000, 000 . 00 

Is now reported at . 1, 200, 000. 00 

Increase 200, 000. 00 

On page, 165, it is reported that in cash w^as realized from these bonds 200, 000.00 

On page 166. cash is reported at 90, 782. 97 

Being an increase over last year of 84, 699. 47 

Bills receivable 677, 241. 45 

Being an increase of 21, 101.08 

Due from solvent companies 341 , 083. 17 

Being a decrease of 22, 423. 50 

Net traffic balances from other companies 37, 466. 57 

Being a decrease of 5, 875. 19 

The income from operation for the year 1897 was. - 220, 024. 40 

To which is added other incomes, amounting to 29, 084. 67 



Making a total income of i 249, 109. 07 



268 BOARD OF RAILROAD COMMISSIONERS. 

Of tliis was paid as interest on the funded debt of the Raleigh and 

(jaston Raih'oad Company 8< '. 833. 33 

On interest of other liabilities 6, 402. 56 

On taxes 13,626.63 

Other deductions 120, 372. 79 

Making total deductions ... 221 . 372. 79 

Leaving a balance of 28.126.77 

Not enough to pay for the Seaboard and Roanoke stock. 
Other deductions 120, 372. 79 

According to the statement which appears on page 167 is the amount paid by the 
Raleigh and Gaston Railroad Company., on account of tlie operation of the Georgia, 
Carolina and Northern. See item on page 142 in the Georgia, Carolina and Northern 
Report of of 1887 as follows: '• Miscellaneous income. $240, 287. 58, " which explained 
by the following foot note on said page 142 '-This amount received from Sea- 
board and Roanoke Railroad Company, represents the amount they paid to make 
good loss in operating for the year under the terms of the lease. $239, 687. 58. One 
half of which was paid by the Seaboard and Roanoke, the other half by the Raleigh 
and Gaston. " 

It will be seen that from 1873 to 1897, the construction account and equipment 
account liave been increased b}" only $184, 440. 56. This money was received from 
the earnings on the road and not from the proceeds of bonds as is absolutely de- 
monstrated by the reports. 

$820,000 of the first mortgage bonds of the Raleigh and Gaston Railroad Com- 
pany were paid in the purchase of §1, 000, 000 of the Raleigh and Augusta Air Line 
Railroad Company.% preferred stock, the company making up the other $180. 000 out 
of its earnings. The remaining $180,000 of Raleigh and Gaston mortgage bonds were 
afterwards sold, and the proceeds applied to the purchase of stock and bonds in the 
Carolina Central Railroad Company. See President's report of October 4. 1882. page 
4. This one million dollars of preferred stock in the Raleigh and Augusta Air Line 
Railroad Company was secured by a first mortgage on the Raleigh and Augusta Rail- 
road. In 1885, by express authorithy of the Legislature, contained in the act of 1885. 
Laws of 1885 (ch. 115. p. 168). this preferred stock was changed into mortgage bonds 
of same company in order to be sold and the proceeds used in purchasing an interest 
in the Georgia, Carolina and Northern Railroad Company, the Durham and Northern 
Railroad Company and others. The resolution of stockholders authorized the sale 
of these bonds for this and no other purpose, and this was the only purpose of the 
exchange. $250,000 of them were sold and paid for stock in the Georgia, Carolinaand 
Central, $150,000 of them were sold and paid for the interest in the Durham and 
Northern, and $100,000 of them were sold and paid for the interest in Carolina Cen- 
tral Shelby division, etc. 

As to the $200,000 increase of mortgage debt in 1897, it appears that cash was 
realized therefor and that during the same year, the Seaboard and Roanoke stock 
of the value of about |200,000 was purchased by the Raleigh and Gaston Railroad 
Company. The closest scrutiny of the accounts of the Raleigh and Gaston Railroad 
Company, contained in the Commissioners* reports of 1897, shows, that there was no 
other source from which this $200,000 could have been paid; that the Raleigh and 
Gaston Railroad Company, did not have the cash, and that they did not earn it that' 
year in excess of their needs and the reports show no other source from which it is 
pretended that this money came. And while the company reports the bonds 



COMPLAINTS AND DECISIONS. 269 

as sold for $200,000 of cash it does not show the cash on hand at the end of the 
year and it shows no other way in which it was expended. So from every stand, 
point it is manifested that these bonds were used in this way and no other. It will 
also be remembered, that while these sworn reports show these facts, there is no 
testimony to the contrary. The statement of counsel not under oath can not be ac- 
cepted in the face of the sworn record evidence to the contrary, unless Mr, Sharp's 
ex parte affidavit filed without notice to the other side is to be taken as evidence. 
So upon the whole it is plain that the statement in the answer, that every dollar of 
the proceeds of the $1,200,000 of bonds has been expended in construction and 
equipment, is absolutely unture and misleading, and that on the contrary, not one 
single cent of the proceeds of any one of these bonds or any exchanged bonds was 
expended in this way, but that every dollar was invested in the stock and bonds of other 
railroad companies. This is shown by the company's sworn reports. The learned 
counsel produced before the Commissioners a printed copy of a mortgage dated 
January 1, 1897, and recorded May 15, 1897. This was executed in the place of 
another mortgage of same date, registered in March, 1897, and which discloses the 
true inwardness of the second mortgage. The purpose throughout was to use the 
200,000 of bonds as they were used in the purchaseof stock in another railroad com- 
pany. The company was doubtless advised, that it would not do to disclose this 
ultra vires purpose on the face of the mortgage, as it might vitiate it. Hence the 
change in the verbiage. But no change in the purpose of the company ever came 
and so the bonds were appropriated to the purchase of Southern and Raleigh Rail- 
road Company stock. 

It makes no difference that the purchase of the stock preceded but a short time, 
the actual sale of the bonds. A temporary loan, ma(^e with the knowledge that it 
could and would be taken up with the proceeds of the bonds about to be sold enables 
Mr. Sharp to testify that the stock was purchased before the bonds were issued. 
But it does not alter the situation. The fact remains that the receeds of the bonds 
went to pay for the purchase of the stock and Mr. Sharp's accounts, demonstrate it, 
and there is no power on earth which can destroy this fact. 

Nov\- to prove that the Raleigh and Gaston Railroad Company between 1891 and 
1897 did not make enough surplus earnings to pay for the Southern and Raleigh Rail- 
road stock let us examine the reports to the Railroad Commissioners stock printed 
each year. 

In 1891 the total income was $265, 662. 01 

This was expended as follows : 

Interest and taxes $84, 11 1 . 90 

Dividend, 6 per cent 90,000.00 

Surplus was 91 , 550. 11 265, 662. 01 

In 1892 the total net income was $205, 964. 28 

Which was expended as follows : 

Interest and taxes $84, 4 i 6. 89 

Dividend 75, 000. 00 

Surplus was 46, 547. 39 205, 964. 28 

In 1893 the income was $230, 332. 29 

Interest $80, 000. 00 

Taxes 1 , 153. 94 

Other deductions 138. 068. 56 

Surplus was 11. 109. 79 230, 332. 29 



270 ■ BOARD OF RAILROAD COMMISSIONERS. 

The " other deductions " are explained on page 156 of the Reports of 1893, as being 
the Raleigh and Gaston proportion of the loss in operating the Georgia, Carolina 
and Northern. 

In 1894 the total income was $154, 369. 39 

Interest $80,000.00 

Other interest ' 696.75 

Taxes 13, 837. 81 

Other deductions 192, 265. 15 286, 797. 71 

Showing a deficit of 132, 432. 32 

Other deductions are explained on page 155 of the Raleigh and Gaston account^ 
which shows that it represents the proportion of the Raleigh and Gaston in its loss 
in operating the Georgia, Carolina and Northern Railroad Company. 

In 1895 (p. 223) is shown a total income $223,819.19 

Expended as follows : 

Interest $80, 000. 00 

Taxes 13, 657. 99 

Other deductions 189, 505. 33 283, 163. 32 

Showing a deficit of 59, 344, 13 

The item, other reductions, $189,505.33, is explained on page 282 of the Georgia, 
Carolina and Northern reports, as being the Raleigh and Gaston proportion of the 
loss of operating the Georgia, Carolina and Northern, the total loss being $367,547.04. 

In 1896. total income $256. 868. 92 

Interest on funded debt $80, 000. 00 

Other interest 3, 350. 00 

Taxes 14, 856. 08 

Net income or surplus 1896 19, 790. 14 

Other deductions 138, 872. 70 256, 868. 92 



Other deductions, $138,872.70, is explained on page 175, Georgia. Carolina and 
Northern report, being the Raleigh and Gaston's share of the loss in operating, total 
loss being $273,017.79. 

In 1897 (p. 167), total income $249,109.07 

Interest on funded debt $80, 833. 33 

Other interest 6, 402. 56 

Taxes 13,626.62 

Other deductions 120. 372. 79 

Net income or surplus 1897 27,872.77 249.109.07 



The other deductions, $120,372.79, are explained on page 142, Georgia, Carolina and 
Northern report, by the item miscellaneous income, $240,287.58, one-half of which, 
the Raleigh and Gaston's proportion, with a little variation, is $120,143.79. On page 
142 is a foot note, as follows : " This amount received from Seaboard and Roanoke 
Railroad Company, represents the amount they paid to make good loss in operating 
for the year under the terms of the lease, $239,687.58.' 

This is a demonstration that the Raleigh and Gaston Railroad Company, as the 
result of its operations from 1891 to 1897, after paying its obligations incurred in 
ultra vires ventures made only $5,093.74, as follows: 



COMPLAINTS AND DECISIONS. 271 

Net profits in 1891 $91,550.11 

" 1892 46.547.88 

" 1893 --- ' 11,109.79 

Deficit in 1894 $132,432.52 

" " 1895 --- 59,344.13 

Net income in 1896 19,790.14 

" 1897 27,872.77 



191,776.45 196,870.19 
191,776.45 



5. 093. 74 

These ventures were ultra vires in the sense that they were not authorized by 
the charter of the Raleigh and Gaston Railroad, and that although the Legislature 
undertook to authorize them, any stockholder, who might be advised of his rights, 
might have interposed and prevented them. 

To sustain this proposition it is only necessary to cite a few authorities. 

" Contracts of a corporation beyond the scope of powers enumerated in its charter 
(read in the light of any general laws which are applicable) and other lowers not 
fairly incidental thereto are unlaw^ful and void." Central Transp. Co. v. Pullman 
Palace Car Co., 139 U. S. 24. 

" It is also of the essence of the contract that the corporate powers shall only be 
exercised to accomplish the objects for which they were called into existence, and 
that the majority shall not control those powers to pervert or destroy the original 
purposes of the corporators." Livingston v. Lynch, 4 Johns Ch., 573; Hutton v. 
Scarborough Cliff Co., 2 Drew & S., 514; Brewer v. Boston Theatre, 104 Mass.. 378 ; 
Keane v. Johnson, 9 N. J. Eq., 401; Rollins v. Clay, 33 Me., 132; Clinck v. Financial 
Corp. 4 Ch. App., 117; Clearw^ater v. Meredith. 1 Wall., 25; Ervin v. Oregon Ry. and 
Nav. Co.. 27 Fed. Rep., 631. 

•' The stockholder subjects his interest to the control of the proper authorities, to 
accomplish the object of the organization, but he does not agree that the purpose 
shall be changed in its character at the wnll of the directors, or a majority of the 
stockholders, even. The contract can not be changed without the consent of both 
contracting parties." Clearwater v. Meredith, 1 Wall., 25; Hartford and N. H. R. 
Co. V. Crosswell, 5 Hill, 365; McCrary v. Junction R. Co., 9 Ind., 358; Winter v. 
Muscogee R. Co.. 11 Ga., 438; Middleson Turnpike Co. v. Locke, 8 Mass., 268. See 
authorities cited in note 6, pages 77, 78, Greens Brice, Ultra Vires. See authorities 
in note 40. Amer. Dec. 358, 359; note 32, Araer. Dec. 717; note 33 Amer. Dec, 604: 
41 Amer. Dec, 341, and 47 Amer. Dec, 29: Vennor v. Atchison T. and S. F. Co., 
28 Fed. Rep., 587. 

A corporation proposing to engage in any transaction not within its express or 
implied power may be restrained from doing so or from continuing the same. No 
majority, however large, has a right to divert one cent of the joint capital to any 
purpose not consistent with and growing out of the original fundamental intention. 
Nothing is more clearly settled than that any fundamental alteration of a charter, 
or material deviation from or extension of a road, in the case of road companies, in- 
terferes with the rights of the corporators, and that no majority, however large, 
can compel individual stockholders to submit. Kean v. Johnson, 1 Stockt., 401; 
Black V. Deleware and R. C, Co.. 7 C. E. Green, 130 sic, on appeal; 9 C. E. Green. 
455. 

The business of a corporation can not be changed or abandoned, or sold out with- 



272 BOARD OF RAILROAD COMMISSIONERS. 

out the consent of all the corporators ; one corporator, however small his interest, 
can prevent it. Zabrisk v. Hackensack and N. Y, R. R. Co., 3 C. E. G-reen, 178 ; 18 
N. J., Eq., 178 ; Greens Brices Ultra Vires, pp. 77, 78. 

So, although the State of North Carolina could not interfere and annul the chai*- 
ter on account of ultra vires acts which it had authorized ; each stockholder, rely- 
ing upon the integrity of his contract of subscription, could enjoin the act of di- 
verting assets of the corporation to objects foreign to its charter, as for example, 
the purchase of other stocks ; and the Legislature has no power to alter this contract 
without his consent. Therefore, the purchase of such stock in so far as dissenting 
stockholders are concerned remains ultra vires. 

In this case the Commission is of the opinion that the State should not be put to 
any more expense with multiplicity of lawsuits, when there is now pending a suit 
which will be decisive in all points of the matter under consideration. 



NORTH CAROLINA RAILROAD COMMISSION. 

Raleigh, April 22, 1898. 

Mr. .W. G. Elliott, President Wilmington and Weldon Railroad Company, Wil- 
mington, N. C. 
Dear Sir :— I am directed by the Board of Railroad Commissioners to furnish you 

with copy of complaint by D. L. Russell, Governor of North Carolina, against the 

Wilmington and Weldon Railroad Company, asking that the rate of charges for the 

transportation of passengers over the Wilmington and Weldon Railroad be reduced, 

copy of complaint and petition herewith. 

I am further directed to serve notice on you to show cause before the Board of 

Railroad Commissioners, at Raleigh, N. C, on the 16th day of May next, why the 

prayer of the petitioner should not be granted. 
You will take due notice thereof. 
Very respectfully, 

(Signed) H. C. BROWN, Clerk. 



DANIEL L. RUSSELL, GOVERNOR OF NORTH CAROLINA, 

vs. 
THE WILMINGTON AND WELDON RAILROAD COMPANY. 

COMPLAINT FOR THE REDUCTION OF PASSENGER RATES. 

To the Honorable Board of Railroad Commissioners of North Carolina : 

Having been retained by the Governor of North Carolina to represent the people 
of this State of North Carolina in this behalf, we present this complaint, and re- 
spectfully ask that your Honorable Board will reduce the intrastate or domestic 



COMPLAINTS AND DECISIONS. 273 

passenger rates on the Wilmington and Weldon Railroad to two and one-half cents 
per mile for first-class and two cents per mile for second-class passengers. 

In view of the action of your Honorable Body, in refusing to make a general re- 
duction of passenger rates operating on the three great railroad systems of the 
State, on account of the supposed meaning and application of the decision of the 
Supreme Court of the United States, in what is known as the Nebraska case, it is 
deemed advisable that test cases should be at once presented to the courts in order 
that it may be definitely determined to what extent your Honorable Board still has 
the right to regulate fares. It is suggested that the effect of the Nebraska decision 
has been misconceived and that it does not prevent this Commission from reducing 
the passenger rates upon certain of the railroads in the State. 

We are advised that the Nebraska decision does not interfere with the proposed 
action of this Commission. In this case, the Railroad Commissioners of Nebraska 
undertook to reduce the freight rates of certain railroads in the State so low that, 
instead of receiving a fair compensation for the services rendered by them, they 
would have operated said railroads at a positive loss. 

The case settled several points : 

1. A railroad corporation is a person within the meaning of the Fourteenth 
Amendment, declaring that no State shall deprive any person of property without 
due process of the law, nor to deny to any person within its jurisdiction the equal 
protection of the laws. 

2. A State enactment, or regulations made under the authority of a State enact- 
ment, establishing rates for the transportation of persons or property by railroads 
that will not admit of the carrier earning such compensation as under all the cir- 
cumstances is just to it and to the public, would deprive such carrier of its property 
without due process of the law, and deny to it the due protection of the laws, and 
would, therefore, be repugnant to the Fourteenth Amendment of the Constitution 
of the United States. 

3. While rates for the transportation of persons and property within the limits of 
a State are primarily for its determination, the question whether they are so unrea- 
sonably low as to deprive the carrier of its property without such compensation as 
the Constitution secured, and, therefore, without due process of the law, can not be 
so conclusively determined by the Legislature of the State or by regulations adopted 
under its authority, that the matter may not become the subject of judicial in- 
quiry. 

4. That a reduction of local freight rates, so low as to prevent the company from 
receiving any compensation is unconstitutional. 

5. That the reasonableness or unreasonableness of rates prescribed by a State for 
transportation of persons and property, wholly within its limits, must be deter- 
mined without reference to the interstate business done by the carrier, or to the 
profits derived from it. And that the State can not reduce the profits from domestic 
business to nothing, because the company is making a fair return on its interstate 
traffic. 

6. That a railroad corporation is not entitled to exact such charges for transpor- 
tation as will enable it at all times to meet operating expenses, pay interest on its 
obligations, and declare a dividend to stockholders ; but the rates must be fixed 
with reference to the fair value of the property used for the public, or the fair value 
of the service rendered. 

There is one question which was not presented to or passed upon by the Supreme 
Court in this case. This question is still open, viz, what proportion of the value of 

1 18 



274 BOARD OF RAILROAD COMMISSIONERS. 

the property of a railroad within a State shall be considered as entitled to earn a 
reasonable percentage or profit on domestic, and what proportion on interstate 
business ? 

While it is admitted that a railroad company whose property is used in both do- 
mestic and interstate commerce, is entitled to earn in respect to the whole of its 
business a reasonable percentage of profit, must not. that percentage of profit be 
apportioned, so that a certain part of it shall be considered as derived from domes- 
tic, and the balance from interstate business? Then the question arises, by what 
rule, or upon what basis, shall this apportionment be made ? 

Suppose that one-third the volume of a railroad company's freight and passenger 
business is domestic and two-thirds foreign or interstate ; that 6 per cent upon the 
entire property of the company is a fair percentage of profit for it to receive from 
its entire operations, and that of this. 2 pe]' cent is made from d(jmesti(; and 4 per 
c®nt from foreign business. If the company is entitled to receive 6 per cent upon 
the value of its entire property, on account of domestic business, and 6 per cent on 
account of foreign business on the same value, it will receive 12 per cent, in, the ag- 
gregate, which is excessive. If it is receiving 12 per cent on the whole of its busi- 
ness, one-third of which is derived from domestic traffic, there is nothing in the 
Nebraska decision to prevent the State from reducing the fares or freights or both, 
to such a rate as will enable the company to make but 2 per cent on the total value of 
its property, out of its domestic business, or what is equivalent thereto, 6 per cent on 
one-third of such total value. If the volume of domestic business is one-fourth of the 
the whole, then the company would be permitted to earn a profit on such business of 
6 per cent on one-fourth of the total value of its property in North Carolina, or 1^ per 
cent on the total value thereof. The railroads were built to be used in botli domestic 
and interstate bvisiness, and it is but just that, with respect to each class of business, 
they shall be permitted to earn a fair profit upon the proportion of their investment 
which may be deemed appropriated to that class of business, the total profit being lim- 
ited to a just per centum of the total investment. And such proportion of the invest- 
ment of its capital or of the value of its property, is to be deemed appropriated to 
domestic business, as the value of such business bears to the whole business of the 
company. To put it in another way : If a railroad company is earning a profit on 
all of its business of 12 percent upon the total value of such property, one-third of 
which is derived from domestic and two-thirds from foreign business, and if 6 per 
cent is deemed a fan- profit for the company to be permitted to make on all of its 
business, without question, the Railroad Commissioners would have the power to 
reduce the domestic or local freight or fares, one or both, to such a limit as would 
permit the companj^ to receive but 2 per cent on the total value of the property, in- 
asmuch as 2 per cent on the value of the ])roperty. would, under the circumstances, 
be considered as a reasonable profit upon such business. 

Differently construed, the Nebraska decision would absolutely destroy in every 
case that most salutary power of the Commission the power to regulate the 
freights and fares of railroad companies for the protection of the public. Construed 
in this manner, the decision does not prevent the Railroad Commissioners from re^ 
ducing the fares on some of the railroads in the State. 

Moreover, it will be observed that the Nebraska decision does not decide that a 
railroad must be permitted to take a certain percentage of profit out of every class 
of its domestic business, as, for example, a reasonable percentage of profit out of its 
domestic passenger business ; a reasonable percentage of profit out of its domestic 
express business; a reasonable percentage of profit out of its mail service; and a 
reasonable percentage of profit out of its domestic freight business. It would be 



COMPLAINTS AND DECISIONS. 275 

beyond the power of the Commission or the court to interfere with the internal 
management and adjustment of these several matters. They would simply hold, 
that from its domestic business of all kinds, in the aggregate, the company shall 
not be prevented from receiving a reasonable compensation for such service. 

But whether these views upon the legal questions are correct or not, it is all im- 
portant to the people of North Carolina that the courts should have an opportunity 
to pass upon them. This can not be done until the case is presented, but no case 
can be presented until the Railroad Commission shall undertake, in one or more in- 
stances, to fix the fares or freights of a railroad company in the State. No irrep- 
arable damage will be done to the companies to be selected, because the rates will 
not go into effect until the courts shall have investigated and properly decided all 
questions involved. 

What railroads should be selected for the test cases? 

1. They should be situated entirely within the State. 

2. They should be located in the most populous and productive counties in the 
State, enjoying the largest domestic or local travel. 

8. They should be those having the largest income in proportion to their value. 

The Wilmington and Weldon Railroad Company presents a favorable subject for 
one of tlie test cases. According to its reports for 1897, presented to the Railroad 
Commission, it operated under the title of the Wilmington and Weldon Railroad 
Company, the Wilmington and Weldon Railroad proper, the Wilson branch, 
the Scotland Neck branch, the Washington branch, the Nashville branch, the Clin- 
ton branch, the Midland branch, the Tarboro branch, and spurs to the mills and 
factories. The last six branches and the spurs have an aggregate mileage of 243.30 
out of the total mileage of 520.95. None of these branches, with the exception of 
the Wilson branch, are very prosperous. By consolidating the report of operation 
of the Wilmington and Weldon Railroad Company proper, with the reports of op- 
eration of all these branches, the profits of that (company have been apparently 
reduced in the general average, and do not appear as large as they really are. In 
fact, it is impossible to tell from the reports filed, what are the receipts and ex- 
penses of the Wilmington and Weldon Railroad proper. It is conceived that there 
is a larger percentage of profit made by this company upon its main line than upon 
any of its branches, except, perhaps, the Wilson branch. This railroad company 
reports from all the operations of its main line and branches, tne gross earnings 

of $1, 874, 813. 65 

Less operating expenses 1, 088, 840. 98 

Income from operation 785, 972. 87 

Less taxes . 43, 949. 13 

Net income from operations in North Carolina ... 742, 023. 74 

The property of this road and its branches, is assessed for taxation at the aggre- 
gate sum of $5,286,000, which the company insists was an excessive valuation, so, 
that notwithstanding the account is loaded down with the affairs of unprofitable 
branches, this company makes a net profit of .143 per cent upon the assessed valua- 
tion of the said property. 

If the passenger earnings per train mile upon the Wilmington and Weldon Rail- 
road and its branches, as compared with such earnings on other railroads in North 
Carolina, are any indication of the prosperity of the railroad, and of the profitable 
operation, the Wilmington and Weldon Railroad Company will not suffer by the 
comparison. 



276 BOARD OF RAILROAD COMMISSIONERS. 

The following railroad companies report passenger earnings per train mile as fol- 
lows: 

Cheraw and Darlington Railroad Company 53853 

; Norfolk and Carolina . 58469 

j| Wilmington, Columbia and Augusta . 73771 

Carolina Central . 77936 

^ Durham and Northern . 42453 

Georgia, Carolina and Northern i .63531 

Raleigh and Augusta . 72894 

Seaboard and Roanoke . . 72374 

Ash eville and Spartanburg . 74591 

University Railroad . 87115 

Cape Fear and Yadkin Valley Railroad , 56033 

Carolina and Northwestern . 461 

Norfolk and Western . 78237 

Suffolk and Carolina . 60435 

The Raleigh and Gaston Railroad Company reports passenger earn- 
ings per mile of .93716 

The Wilmington and Weldon for itself, and all of its branches, re- 
ports average passenger earnings per train mile of . 91991 

It is conceived that if the Wilmington and Weldon Railroad Company had filed 
a full report of the operation of its railroad, separate and distinct from that of its 
branches, particular data would have been furnished sufficient to demonstrate that 
it is one of the most prosperous roads in the State and well able to stand the pro- 
posed reduction of its domestic passenger fares. 

But it is submitted tliat the company's reports, which have been filed with the 
Commission, show forth facts which are amply sufficient to justify your Honorable 
Board in establishing the rates which by this complaint we ask at your hands. 
Respectfullv submitted, 

JOHN W. HINSDALE, 
C. A. COOK, 
W. C. DOUGLASS, 
Attorneys for the State of North Carolina. 
April 20, 1898. 



EXHIBIT No. 2. 



BEFORE THE BOARD OF RAILROAD COMMISSIONERS OF NORTH 

CAROLINA: 

DANIEL L. RUSSELL, GOVERNOR OF NORTH CAROLINA, 

vs. 
WILMINGTON AND WELDON RAILROAD COMPANY. 

Answer of the defendant, the Wilmington and Weldon Railroad Company, to the 
complaint herein. 

The defendant protests against the statement in the complaint that, in view of 
the decision of the Supreme Court of the United States in what is known as the 
" Nebraska Case " it is advisable that test cases should be at once presented to the 



COMPLAINTS AND DECISIONS. 277 

courts in order to definitely determine to what extent your Honorable Board still 
has the right to regulate fares, and to the contrary thereof the defendant submits 
that your Honorable Body was not created by the Legislature for the purpose of 
trying moot-cases, or to devise test cases, but to try and decide actual controversies 
in due and orderly course of legal procedure and according to the best judgment of 
the Board, and doth further submit that the "Nebraska Case" does definitely de- 
termine to what extent your Honorable Board has the right to regulate fares on 
railroads operated wholly within this State. 

Tlie object of this action is clearly presented in the following language of the 
complaint, " But wliether these views upon the legal question are correct or not, it 
is all important to the people of North Carolina that the courts should have an 
opportunity to pass upon them. This can not be done until a case is presented. 
But no case can be presented until the Railroad Commission shall undertake, in one 
or more instances, to fix the fares or freights of a railroad company in the State." 
This clearly shows that the true intent of the complaint is to invoke your Honor- 
able Body to reduce the fare, simply that the United States Supreme Court may 
finally decide as to the justice of such reduction. 

The defendant further protests to this Board that this question of the reduction 
of passenger fares over the lines of railroad in North Carolina is no new question . 
That it ^yas brought before the former Board of Railroad Commissioners by practi- 
cally the same complainant, 'and earnestly and zealously argued and insisted on; 
and the said Board, in the light of reason, and upon the evidence produced before 
it upon hearing of the question, after mature deliberation, decided that the rates 
then in force, which were the same as the present rates of passenger fares, and which 
had been previously prescribed by the Board and existing in this State, were just 
and reasonable, and that any reduction of the same would not only be unjust and 
unreasonable but oppressive, and in this connection the said Board, in the report 
which they made in compliance with the act of the General Assembly of this State 
creating the said Board, to the Governor of North Carolina under date of December 
81, 1896, used the following language, to-wit : "A statement which follows shows 
local rates in different States, varying from 4 cents per mile in Florida to 3 cents in 
Pennsylvania and 2^ cents in Massachusetts. When it is considered that the popula- 
tion in Massachusetts is 809 per square mile and of Pennsylvania 123 per square mile, 
as compared with a population of only 38 per square mile in North Carolina, the estab- 
lished rates of 3^ first-class and 2^ cents second-class in this State are certainly 
relatively very much lower than the rates of 3 cents and 2^ cents, respectively, in 
Pennsylvania and Massachusetts. Comparing the passenger traffic of important 
railroads of the North and West with the traffic of the roads in North Carolina, it 
will be seen that the passenger rates charged in this State are now very much 
lower, in proportion to the volume of traffic, than the rates in other sections of the 
country. " . 

Again, in the month of July, 1897, the Board of Commissioners, with a view to 
Jbhe further investigation of the same matter, required the several railroad com- 
panies of this State, including this defendant, to appear before it on the 12th day of 
July, 1897, and show cause, in writing, why a revision of the freight and passenger 
traffic should not be made. And prominent officials of the State and other inter- 
ested citizens who were publicly advocating such reduction were invited to be 
present at the hearing, and present to the Board their viewe or any informa- 
tion or facts in their possession touching the matter. That at the hearing on the 
said 12th day of July, 1897, communications in response to such invitation from 
the Governor, Hon. D. L. Russell, and others, were presented and read, advocating 



278 BOARD OF RAILROAD COMMISSIONERS. 

the reduction of both passenger and freight tariffs. The Commission '"after a 
most painstaking investigation of the rates of passengers and freights as they now 
exist and in comimrison with previous years," upon the hearing refused to disturb 
the said rates and reported as follows: 

"They also find that the passenger rates, as a general thing, are as low, if not 
lower, than that of any other State of a like population to the square mile; and the 
freight rates will, as a whole, compare most favorably with any State in the Union. 
As a proof of this, reference is made to a most careful and accurate report of rates 
in all the States given this day to the press, and now on file in this office. 

"The Commission, from the above facts, together with others elicited by the 
recent discussion, see no good reason for changing their views as expressed in their 
last report, but do r^terate that the ' present rates are just and reasonable and such 
as were contemplated in the act creating the Commission,' and will make no 
change at present time. '" 

And further, that this question is not a new one to the present members of this 
Honorable Board, for that this matter of the reduction of passenger fares was before 
them but a very few weeks since, and after a careful consideration it was deliber- 
ately determined by this Board, and. as this defendant had reason to believe, was 
definitely settled that the present rates of fare were only just and reasonable and 
should not be disturbed or reduced. That since these decisions of this Board there 
has been no such change in the coftdition of affairs, or in the business of the rail- 
road, or in existing circumstances, to warrant any change of the rates of passenger 
fares. And in view of these facts the defendant, with the deference and respect 
which it owes to the Governor of North Carolina, submits that any further agita- 
tion of this matter is not only unjust and unreasonable, but vexatious and oppressive. 

This defendant is advised that so much of the complaint in this cause as refers to 
the decision of the Supreme Court of the United States in the " Nebraska Case,"' is 
purely a matter of law which this defendant is not called upon to answer, and, 
therefore, to so much of this complaint this defendant answereth not, except to deny 
the correctness of the conclusions of law and the reasoning which the plaintiff at- 
tempts to deduce from the •' Nebraska Case. " 

This defendant submits to the Board that it has already construed at a former 
hearing the effect of the said " Nebraska Decision " and that it is no part of its duty, 
and this defendant is sure that it is not its pleasure, to make rulings simply for 
the purpose of starting up litigations in order that the Supreme Court of the United 
States may be called upon more accurately to define its powers and limitations. 

The defendant further submits that it is the duty of the Board to make its ruling- 
according to its view of the facts and law applicable thereto, and leave results to 
take care of themselves. 

But this defendant desires to protest against the allegation of the complaint that 
" no irreparable damage will be done to the companies selected because the rates 
will not go into effect until the courts shall have investigated and decided upon the 
questions invoked, "' and to the contrary this defendant is advised and believes and 
therefore avers that according to the express provisions of the statute establish- 
ing this Honorable Board and known as the " Railroad Commission Act, " the rates 
of freight and fare fixed by this Board shall be and remain the established rates, and 
shall be so observed and regarded by all railroads until the same shall be reversed 
or modified on appeal to the Superior Court, unless the heavy justified undertaking 
prescribed in the act be filed by the railroad company, conditioned for the payment 
by such railroad company into the treasury of the State of the difference between 



COMPLAINTS AND DECISIONS. 279 

the fares charged and received and those fixed by tlie Commission, and for the 
quarterly reports required in such cases. 

And defendant avers that the Wihuington and Weldon Railroad and all of its 
brandies which are mentioned and set forth in the complaint are but one corpora- 
tion existing under the charter of the Wilmington and Weldon Railroad Company, 
possessing but one franchise, and operated as a whole by but one company and its 
officers. That none of these branches have any corporate existence separate and 
apart from the main company. That the accounts of the operation of the main road 
and its branches, with all their earnings and expenses are kept together in but one 
and the same general account. That as these roads are operated together as one 
common property and under one common management, and for one common set of 
owners, it w^ould not only be impracticable but unjust to a degree to separate the 
earning and expensese of one from another. 

The defendant submits and files herewith a schedule showing the earnings and 
costs of operation of its several passenger trains respectively for the months of Decem- 
ber and November, 1897. and January, 1898, acopy of which is hereto annexed, marked 
Exhibit " B, " and made a part of this answer. The said three months were more 
than average in point of business for the whole year, and therefore may be taken as 
fairly representative of the year; and this defendant alleges that the said statements 
are just and correct and show the true passenger earnings of the several trains of this 
defendant for the period therein stated, including the earnings from all interstate 
passenger business done by this defendant during the periods therein mentioned. 
And this defendant alleges that the actual average cost and expense of running and 
operating all trains upon its line of railroad for the fiscal year ending June 30, 1896, 
was 85 cents per mile run, and for the fiscal year ending June 30, 1897, was 86 cents 
per mile run; that as shown by the said statements only two of the passenger trains 
operated by tliis defendant under the present existing rates of passenger fares yield 
a profit, to-wit : trains Nos. 23 and 35, which are through trains from the North and 
operated by the Atlantic Coast Line system, of which this defendant is a member 
and component part, between Richmond, Va., and Charleston, S, C, and their 
profitableness grows out of the fact that they carry the through Southern travel. 
That even w^ith the interstate business included, the reduction asked for in the 
complaint will cause all passenger trains of this defendant's line of railroad to be 
operated at a loss, and eliminating all interstate business from the calculation, the 
said loss will be still greater as the income from the passenger fares will not equal 
the actual running of the said trains economically. 

The defendant denies that a full report of its operations rendered in any form 
wdll demonstrate that it is w^ell able to stand the reduction of its domestic passen- 
ger fares contended for. That the rates which the plaintiff now asks the Board to 
fix for passenger fares is a nominal reduction of 23 per cent upon first-class fares 
*and of 27 per cent upon second-class fares; and in reality it is a reduction of not 
less than 20 per cent upon both. 

Statistics carefully compiled by this defendant from its books and business for 
the year 1896, show the following earnings and expenses at the present rate of fares 
of the passenger trains of the defendant for that year : 

Receipts from passengers, per passenger train mile $0. 72 

Receipts from passenger train service, per passenger train mile, in- 
cluding mail and express .96 

Operating expenses per train mile .85 

Showing an actual deficit from passenger earnings of .13 

And a profit from all sources of .11 



280 BOARD OF RAILROAD COMMISSIONERS. 

And like statistics for the year 1897 from same sources show receipts 

from passengers, per passenger train mile 66 

Receipts from passenger train service, per passenger train mile, includ- 
ing mail and express .92 

Operating expenses per train mile .86 

Showing an actual deficit from passenger earnings of .20 

And a profit from all sources of .06 

And from these statistics, covering tlie operations of the defendant for the last 
two years, this Board can readily see that if the defendants were compelled to op- 
erate its passenger trains at the reduced rates of fare asked, they would not only 
produce no profit or net income whatsoever, but would be a source of positive loss 
to the defendant. 

And for further answer, this defendant says that if it be true, as conceded in the 
complaint, that the "Nebraska Case" has definitely declared the law to be "That 
the reasonableness or unreasonableness of rates prescribed by a State for transpor- 
tation of persons and property wholly within its limits must be determined without 
reference to the interstate business done by the carrier or to the profits derived 

from it " then that the interstate business done by this defendant and 

the profits derived from it after the payment of a proper proportion of its legitimate 
fixed charges, are not sufficient to pay what under the extreme views of the com- 
plainant would be a reasonable dividend upon the capital actually and bona fide in- 
vested in its business, as appears from Exhibit " C," hereto attached as part of this 
answer. 

This defendant further avers that any reduction of its passenger rates, in the 
light of the facts and circumstances aforesaid, would be to deprive this defendant 
of its property without due process of law, and would deny to it the equal protec- 
tion of the laws, and it expressly claims the protection of the Fourteenth Amend- 
ment to the Constitution of the United States. 



EXHIBIT "A. 



NORTH CAROLINA RAILROAD COMMISSION. 

Raleigh, February 21, 1898. • 
CIRCULAR No. 80. 

From and after the 23rd day of March, 1898, the fares for the transportation of 
passengers shall be as follows : 

Two and one-half cents per mile for first-class tickets ; two cents per mile for 
second-class tickets on the following railroads in North Carolina, to-wit : 

The Wilmington and Weldon Railroad from Wilmington to Weldon, and that 
part of the Wilmington and Weldon Road from Contentnea to the South Carolina State 
line'; the Petersburg Road from Weldon to the Virginia State line ; that part of the 



COMPLAINTS AND DECISIONS. 281 

Tarboro branch from Rocky Mount to Tarboro, and the Norfolk and Carolina Rail- 
road from Tarboro to the Virginia State line ; the Raleigh and Gaston Railroad from 
"Weldo"n to Raleigh ; the Seaboard and Roanoke Railroad from Weldon to the Vir- 
ginia State line, and the Raleigh and Augusta Air Line from Raleigh to Gibson ; the 
North Carolina Railroad from Goldsboro to Charlotte : the Piedmont Railroad from 
Greensboro to the Virginia State line ; that part of the Northwestern North Caro- 
lina Railroad from Greensboro to Winston ; the Western North Carolina Railroad 
from Salisbury to Paint Rock ; the Atlantic, Tennessee and Ohio Railroad from 
Charlotte to Statesville ; the Atlanta and Charlotte Air Line Railroad from Char- 
lotte to the South Carolina State line, and the Charlotte, Columbia and Augusta 
Railroad from Charlotte to the South Carolina State line. 
By order of the Commission, 

L. C. CALDWELL, Chairman ; 

JNO. H. PEARSON, 

D. H. ABBOTT. 
H. C. BROWN, Clerk. 



EXHIBIT "C." 

As to the assessed value — 

Earnings — intrastate freight and passenger * ^506, 824. 69 

One-third expenses and taxes 377, 596. 70 

Balance 129,227.99 

2. 35 per cent on assessed value of $5, 498, 955. 00. 

As to the capital — 

Earnings.. $506,824.69 

Seventy per cent operation ". 354, 777. 28 

125,047.41 
One-third taxes . 14, 649. 71 

137,397.70 
One-third interest on funded debt, special trust certificates 

and equipment notes 88, 545. 63 



48, 852. 07 
\. 628 per cent on $3, 000, 000. 

*Note that no deduction is made in this first statement for fixed charges. 



282 BOARD OF RAILROAD COMMISSIONERS. 



EXHIBIT No "4.'- 

Gross earnings from operation $1,874,813.65 

Of which domestic business furnishes .328, or 614, 938. 87 

Expenses of operation were $1,088,840.98 of 

which .328 is $357, 139. 84 

Plus 10 per cent 35,713.98 392,853.82 

222, 085. 05 
Lesss .328 of taxes 14, 315. 25 

207, 796. 80 

Wliich is on the tax valuation of $5, 498, 955. 00 ' 3. 77 per cent 

On tax valuation of $7, 582, 775. 20 2. 73 per cent 

On cost of road, $10, 802, 242. 00 1. 92 per cent 

On cost of reproduction, $10, 292, 000. 00 1. 01 per cent 

Now deduct .328 of fixed charges, and we have $207,769.80 

87,128.89 

120, 640. 91 

Or on tax valuation of $5. 498, 955. 00 2. 19 per cent 

Or on tax valuation of |7, 582, 775. 20 1. 59 per cent 

On cost of road. |10 . 802, 242. 00 1 . 11 per cent 

On cost of reproduction, $10, 292, 000. 00 1. 15 per cent 



EXHIBIT No. ''5.'' 

QUARTERLY REPORT OF 1898. 

Total earnings $559, 439. 81 

Total operating expenses, not including taxes 311,855.95 

Excess of earnings 247, 583. 86 

Interstate freight 258, 709. 01 

Domestic freight 110, 597. 85 

Total 369, 306. 86 

Interstate passenger 82, 717. 73 

Domestic passenger 56, 184. 75 

Total 138, 902. 48 



COMPLAINTS AND DECISIONS, 283 

Express 15, 638. 34 

Mail 27, 453. 58 

Miscellaneous 8, 138. 55 

Total . . 51 , 230. 47 

Percentage of domestic freight and passenger- 
Interstate freight 258, 709. 01 

Interstate passenger 82, 717. 73 

341,426.74 

Domestic freight 110,597.85 

Domestic passenger 56, 184.75 166,782.60 

508, 209. 34 

That is, domestic freight and passenger earnings are .328 of the whole, excluding 
mail, express and miscellaneous from both sides of the account. 



584 



BOARD OF RAILROAD COMMISSIONERS. 






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COMPLAINTS AND DECISIONS. - :^85 

Examination of Mr. W. A. Riach. General Auditor. 
Col. Hinsdale: 

Q. When you were last on the stand, Mr. Riach. we were just about going into 
the investigation of the mortgage bonds and certificates of indebtedness of the 
company. I observe in the report of the Commissioners, (on p. 49), that of the 
Wilmington and Weldon Railroad, there are out-standing $3,062,000.00 general first 
mortgage bonds; $938,000.00 general first mortgage bonds, and $500,000.00 general 
first mortgage bonds. Will you give the history of these mortgages? 

A. The $3,062,000.00 was issued partly to refund old bonds that had been issued 
prior to the war — some of them since, and tliose since and those before also were 
used in extending the Company's operations, both as to building roads and acquir- 
ing equipment. The same explanation applies to the $938,000.00, and they are now 
included in this sum which makes $4,880,000.00. This other mortgage is a mortgage 
on the Albemarle and Raleigh Road. 

Q. Why is it that, if the $500,000.00 is on the Albemarle and Raleigh Road, it is 
recorded as " general first mortgage? " 

A. On that road. That road was a separate company. 

Q. Why is it not so stated in the report ? 

A. I do not know. 

Q. The report is a little misleading, is it not? 
. A. I really can not explain that. 

Q. Are you certain about the $500,000.00? 

A. Certainly. 

Q. What is that road now? 

A. Part of what we know as the Tarboro Branch. 

Q. It was first a separate organization? 

A. A portion of it, yes, from Tarboro to Wilmington. 

Q. What was the last 'extension made by the Wilmington and Weldon Road? 

A. I am not sure, probably the Nashville or the Wilson and Fayetteville. 

Q. Were these first mortgage bonds expended in making that extension? 

A. Oh, yes. 

Q. What was the original debt which was refunded by some of these bonds? 

A. I do not remember. 

Q. Can you not refer to data by which you could tell. Would Poor's Manual give 
it? 

A. That might. 

(Mr. Riach reads from '* Poor's Manual.") 
Q. Was not all this funded debt expended in extensions? 
A. How do you mean now? The difference between this and that? Yes. 
Q. Can you give me any idea as to when this indebtedness was first made? 
A. No, I do not know that I could. 
Q. Before the war? 

A. Yes. I know the Road had debts before the war; borrowed in London. 
Q. What portion of this debt? 
A. I can not tell you that. 

Q. Was there any extension or branch constructed before the war? 
A. I am not sure but the Tarboro Branch was. I think it was built before the 
war. I am not sure but that is my recollection. 
Q. When, according to your recollection, was the Tarboro Branch built? 
A. Prior to the war. 



286 BOARD OF RAILROAD COMMISSIONERS. 

Q. Then it was only in the construction of the Wilmington and Weldon from 
Wilmington to Weldon and the Tarboro Branch that this funded debt was used? 

A. Yes. It had no other possession at that time to use it on. 

Q. In building what branches was the balance of the general first mortgage 
indebtness used, after refunding what you called the funded debt? 

A. Building the Scotland Neck Branch, the Nashville, the extension of the 
Albemarle and Raleigh Road (now know as the Tarboro), the Washington, the Mid- 
land, the Clinton Branch and the Wilson and Fayetteville Branch. 

Mr. Elliott: 

The whole of the $4,000,000.00 was secured by a general mortgage of the Wil- 
mington and Weldon Road; in that is included the $938,000.00 that matured on the 
first of May, 1897 and when the $4,000,000.00 were issued, 1938,000.00 were reserved, 
in order to meet those that matured in May, 1897, leaving the mortgage made in 
1885 as the original first mortgage and only mortgage of the Wilmington and Wel- 
don Road. 

Q. Did this $4,000,000.00 include the Albemarle and Raleigh? 

A. No. sir. In the last few years, the Wilmington and Weldon and the Albemarle 
and Raleigh were consolidated and the Wilmington and Weldon took the Albemarle 
and Raleigh subject to a mortgage, and included the payment of those bonds as a 
part of the purchase price of the Albemarle and Raleigh. 

Q. Mr. Riach can you tell what portion of this first mortgage was used in the con- 
struction of these branches? 

A. No, sir. 

Q. Can you refresh your memory in any way? 

A. No, sir, that is too much. 

Q. What information is obtainable at your office? 

A. I do not know. 

Q. Do not they require you to show how the money was expended? 

A. Oh. yes. sir. 

Q. How would you show it? 

A. Simply show when the bonds were expended, when money was spent on each 
of those branches. 

Q. So in that way it could be traced? 

A. Oh. yes. 

Q. I observe in the report (on p. 49), this item "Certificates of indebtedness — 
Wilmington and Weldon special trust certificates issued 1888, due 1937. Will you 
explain this item? 

A. That was issued to buy stock in the Northeastern Road in South Carolina. 

Q. Do I understand that the whole of this amount was used in that way ? 

A. Yes, sir. 

Q. How much stock does the Wilmington and Weldon own? 

A. It does not own it now. 

Q. How much did it own? 

A. The same face as that is. 

Q. When was that purchased? 

A. I think about 1887. 

Q. Was it bought at par? 

A. Yes, that is my recollection. 

Q. What disposition has been made of it. 

A. They sold it to the Atlantic Coast Line Company. 



COMPLAINTS AND DECISIONS. 287 

Q. For monej; or what? 
(Mr. Burton asks why this question is asked. ) 

A. I do not remember that. I am not sure but I think they sold it for stock in the 
Atlantic Coast Line Company. 

Q. Then the Wilmington and Weldon owns stock in the Atlantic Coast Line 
Company. How much did it acquire? 

A. I do not remember what it got for that sale; that was sold along with other 
things. Tlie stock was given to the owners of the Wilmington and Weldon. 

Q. What other things? 

A. Other stocks that the Wilmington and Weldon had aci^uired. 

Q. What other stocks? 

A. There was stock in other roads. 

Q. Can you give the details? 

A. No. 

Q. What roads? 

A. There was some in the Petersburg Road, and some in the Richmond and 
Petersburg Road. 

Q. Is that all? 

A. And some in the R. F. and P. 

Q. Is that all? 

A, That is all I can think about just now. 

Q. Were you with the company then? 

A. Oh, yes. 

Q. What position did you occupy then? 

A. The same as I do now — General Auditor. 

Q, Then you were aware of this transaction? 

A. Oh, yes. 

Q. Can you not approximate the amount of stock owned by the Wilmington 
and Weldon? 

A. No. I would not like to. That is too long ago. 

Q. When was the sale made? 

A. It must have been made some six or eight years ago. 

Q. What became of the stock in the Atlantic Coast Line that the Wilmington and 
Weldon obtained in this way ? 

A. That was given to the stockholders of the Wilmington and Weldon Railroad. 

Q. It was first owned by the company; when was it distributed among the stock- 
holders? 

A. About that time— six or eight years ago. 

Q. You say that the Wilmington and Weldon sold the Northeastern stock 
and a number of other stocks to the Atlantic Coast Line and that it received from 
the Atlantic Coast Line a certain amount of its stock, and you say that that was 
about what time? 

A. Six or eight years ago. 

Q. Then how long after the Wilmington and Weldon Road acquired this Atlantic 
Coast Line stock was it before the Wilmington and Weldon divided or distributed 
it among its own stockholders ? 

A. Distributed it at once. 

Q. Is there a full account of that in the printed report of the Wilmington and Wel- 
don ? 

A. I judge so. 



288 BOARD OF RAILROAD COMMISSIONERS. 

Q. Do you remember? 
A. I really do not. 

Chairman Caldwell : 
Q. Any dividend being paid t8 the owners of that stock now? 
A. Yes, sir. 
Q, What amount? 
A. I think they pay 5 per cent. 

Col. Hinsdale : 

Q. What is the Atlantic Coast Line? 

A. That is a corporation chartered in Connecticut. 

Q. What is its capital stock? 

A. I think it is $5,000,000.00. 

Q. Has it all been paid in? 

A. I am not familiar with that. I am not an officer in that company at all. 

Q. When was it formed, organized? 

A. Well, about the time this was, probably a little prior to that. ' 

Q. So that these assets were just sunk out of the hands of the Wilmington and 
Weldon. Did they not just pass from the Wilmington and Weldon as a corporation 
into the hands of the stockholders ? 

A. They were divided in the shape of stock dividends. 

Q. As a stock dividend ? 

A. Yes. 

Q. Why were the " Special trust certificates '' so called ? 

A. Issued for that special purpose, to acquire that Northeastern stock. 

Q. In whose hands is that certificate of indebtedness held ? 

A. I do not know, they are liable to be transferred. 

Q. Please explain this item — " Wilmington and Weldon certificates of indebted- 
ness, $2,500,000.00"? 

A. These were certificates issued to the stockholders of the Wilmington and Wel- 
dan Road to represent profits that had accrued, but had not been paid to the stock- 
holders. 

Q. What had been done with it ? 

A. The profits were used in the company's extension and equipments ; part of it 
went into building those branches and other betterments of the company. » 

Q. So it represents nothing that was paid into the company at that time ? 

A. It represents profits that the stockholders did not get theretofore. 

Mr. Burton: 
Q. They were issued when ? 
A. They were issued in 1886 or 1887; along thereabout. I think it was the fall 

of 1886. 

Col. Hinsdale : 

Q. Do you know how the editor of Poor's Manual obtains the reports from the dif- 
ferent companies ? 

A. He gets copies from the companies, I think. All that he publishes, however, 
is not obtained from reports — they make compilations themselves and gather differ- 
ent information from different publications — so all that is in there is not obtained 
from railroad companies. 



COMPLAINTS AND DECISIONS. ^89 

Q. I observe in the report of the Wilmington and Weldon system in Poor's Manual 
for 1898, (p. 688). that the Wilmington and Weldon Railroad Company in June, 
1890, owned sundry investments amounting to $3,221,082.00 ; that in June, 1891, the 
Wilmington and Weldon Road owned sundry investments amounting to $2,751. 174.00, 
and that in 1892 tlie Wilmington and Weldon Road owned no sundry investments. 
Can you explain that ? 

A. That is the stock that I spoke of, that we sold to the Atlantic Coast Line, for 
which the stockholders got Atlantic Coast Line stock. 

Q. Can you undertake to say how the difference of about $oOO,000 between their 
holdings in 1890 and 1891 occurred ? 

A. I see an increase of the debt at that time over previous year. 

Q. Is there any connection between those two V 

A. I think it is very likely. In my judgment there would be. 

Q. HowV 

A. They might liave been desirous of acquiring some property and gone into debt 
to get it. 

Q. If the investments were less in 1891 than in 1890 that indicates a sale and re- 
ceipt of money. How can the receipt of money have any bearing upon an increase 
of indebtedness V 

A. I do not know, unless they were spending money. 

Q. Can you see any relation between those figures V 

A. Not as they show here. 

Q. You can not explain what became of that $500,000 of investments V 

A. No, sir. 

Q. I understand then that it was the $2,751,174.00 investments that were sold to 
the Atlantic Coast Line V 

A. No. I would not say that. I w^ould say tliat it was that or a portion of that. 

Q. If it was not all, what became of the balance ? 

A. I do not know — I do not recollect. I would have to have an itemized state- 
ment before I could answer that question. 

Q. Now then as to the stock — what was the original stock capitalization of the 
Wilmington and Weldon V 

A. I do not recollect. 

Q. What was it as far back as you can remember? 

A. I think it was about two millions. 

Q. What is it now? 

A. Three millions. 

Q. When increased? 

A. It was increased from time to time. My first recollection is that an increase 
was along about probably 1883 or 1884. 

Q. Was it not as much as about fifteen hundred thousand ? 

A. That must have been away back, before my time. I went with the road in 
1882. 

Q. In that very year, 1882, was it not increased from $456,200.00 to $2,082,400.00?' 

A. I think it very likely. 

Q. What was that increase for? 

A. To build a portion of the Scotland Neck branch. 

Q. And stock was sold and money appropriated for that purpose ? 

A. Yes, sir. 

Q. I ask you if in 1885 it was not increased to $110,000.00 ? 

1 19 



290 BOARD OF RAIT.ROAD COMMISSIONERS. 

A. I should think it veiy probablly. 

Q. And in 1886 to $2,500,000.00? 

A. Yes, I think it very likely because we were making extensions. 

Q. For what purpose was this amount, the increase, expended ? 

A. I know that the Wilson and Fayetteville extension was going on then, 

Q. Do you know when the increase was from $2,500,000.00 to $3,000,000.00, its 
present capital stock V 

A. No, not unless. I had something to refresh my memory. 

Q. Do you recollect for what extension on what road this last increase of 
$500,000.00 was made ? 

A. In 1890? 

q. Yes? 

A. No. I can not recollect that. 

Q. At what price was this stock issued ; these several increases of stock ? 

A. I remember some of it being sold about 130, and I think some of it sold as high 
as 160. 

Q. It was not issued at par ? 

A. Oh, no. All the money was put into the treasury and expended in the ways I 
have already indicated. 

Q. Do you know. sir. that from the year 1877-78 that the gross earnings of the 
Wilmington and Weldon Railroad Company have gradually increased from $488,- 
448.00 of that year to $1,872,817.00 in the last year ? 

A. Yes. 

Q. Been a steady increase ? 

A. Yes, a steady increase, because of its increased business from points south of 

it to points north and east of it, and because of its . That is where the 

greater portion of its increase came from. 

Q. There has been this steady increase ? 

A. Yes, sir. 

Examination of Mr. Riach concluded. 



The petition of D. L. Rur>sell, Governor, is granted, and order is issued as fol 
lows: 

ORDER No. 98. 

Raleigh, N. C, July 13, 1898. 
On and after the 13th day of August, 1898, the maximum charge for the trans 
portation of pssengers over the Wilmington and Weldon Railroad shall not ex- 
ceed 2j4 cents per mile for firstclass tickets and 2 cents per mile for second- 
class tickets. 
By order of the Commission. 

L. C. CALDWELL, Chairman. 
H. C. BROWN, Clerk. 



COMPLAINTS AND DECISIONS. 1^91 

• 
Subsequent order is issued as follows: 

Raleig-li. N. ('., September 80, IHIW. 
Whereas, on July IH, 1898. the following order was made: 

ORDER No. 98. 

On and after the 13th day of August, 1898, the maximum charge for the trans- 
portation of passengers over the Wilmington and Weldon Railroad shall not 
exceed 2)4. cents per mile for first class tickets, and 2 cents per mile for second- 
class tickets; and, whereas, it was intended by the words, "Wilmington and 
Weldon Railroad" in said order, to refer to the Wilmington and Weldon Rail- 
road between Wilmington and Weldon. 

And whereas, by one construction of the order as inadvertently drawn, it may 
be supposed that it was intended that the reduction should extend to the 
branches of the said road as well. 

Now, therefore, it is ordered that the said order be amended so as to read as 
follows: 



ORDER No. 98. 

On and after the loth day of August, 1898, the maximum charge for the trans- 
portation of intrastate passengers over the Wilmington and Weldon Railroad, 
on the main line between Wilmington and Weldon, shall not exceed 2>4 cents 
per mile for first-class tickets and 2 cents per mile for second-class tickets. 
By order of the Commission. 

(Signed) L. C. CALDWELL, Chairman, 
(Signed) JOHN H. PEARSON, 
(Signed) D. H. ABBOTT. 
H. C. BROWN, Clerk. 



EXCEPTIONS BY DEFENDANT. 

DANIEL L. RUSSELL', Governor, 

vs. 

THE WILMINGTON AND WELDCN RAILROAD COxMPANY. 

The defendant, the Wilmington and Weldon Railroad Company, excepts to 
the order of the Board of Railroad Commissioners, No. 98, made July 13, 1898, 
whereby the fares for the transportation of passengers on its lines on and after 
August 13, 1898, are reduced from 3X cents to 2% cents per mile for firsi class 
passengers, and from 2^ to 2 cents per mile for second-class passengers, and 
assigns the follow^ing grounds of exceptions : 

1. That the rates fixed by said order are not just and reasonable rates. 

2. That the said order will result in compelling the defendant to operate its 
passenger trains at a loss. 

3. That the said order will cause a heavy loss to the defendant in the reduc- 



292 BOARD OF RAILROAD COMMISSIONERS. 

tion of its passenger fares and prevent it from earning- enough on its domestic 
business to pay expenses and a trifling percentage to its stockholders. 

4. That the said order discriminates against the defendant, in that its rates 
are reduced, while at the same time the Commission has not reduced rates on 
the other railroads in the State. 

5. That the enforcement of said order will deprive the defendant of its prop- 
erty without due process of law, and deny to it the equal protection of the 
laws, contrary to the provisions of the Fourteenth Amendment to the Consti 
tution of the United States ; and the defendant expressly claims the protection 
of said Amendment. 

THE WILMINGTON AND WELDON RAlLIiOAU COMPANY, 

By R. O. BURTON, Counsel. 
July 20, 1898. 

Exceptions overruled. Defendant gives notice of appeal. 

APPLICATION FOR RESTRAINING ORDER— IN THE CIRCUIT COURT 
OF THE UNITED STATES, FOR THE EASTERN DISTRICT OF 
NORTH CAROLINA— IN EQUITY— ORIGINAL BILL. 

THE WILMINGTON AND WELDON RAILROAD COMPANY 

vs. 

THE BOARD OF RAILROAD COMMISSIONERS OF THE STATE OF 
NORTH CAROLINA, L. CAMPBELL CALDWELL, JOHN H. PEAR- 
SON, DeLEON H. ABBOTT AND ZEBULON V. WALSER. AND W. J. 
LEARY, W- E. DANIEL, WHEELER MARTIN. E. W. POU, M. C. 
RICHARDSON AND H. F. SEAAYALL. 

To the Honorable the Judges of the Circuit Court of the United States for the 
Eastern District of North Carolina : 

The Wilmington and Weldon Railroad Company, a corporation created by 
and existing under the laws of the State of North Carolina, brings this its bill 
of complaint against the Board of Railroad Commissioners for the State of 
North Carolina, and against L. Campbell Caldwell, Chairman, John H. Pear 
son and DeLeon H. Abbott, constituting and composing the said Board of Rail- 
road Commissioners of the State of North Carolina, and Zebulon V. Walser, 
Attorney-General of the said State of North Carolina, W. J. Leary, W. E. 
Daniel, Wheeler Martin, E. W. Pou, M. C. Richardson and H. F. Seawall, Solic- 
itors of the State of North Carolina. 

And thereupon your orator complains and alleges: 

First. That your orator is a corporation duly created and existing under and 
by virtue of an act of the General Assembly of the said State of North Caro- 
lina, entitled "An Act to incorporate the Wilmington and Raleigh Railroad 
Company," ratified on or about January 3, 1834, and subsequent acts of the said 
General Assembly of the said State of North Carolina, amendatory thereof, in- 
cluding an act entitled "An Act concerning the Wilmington and Raleigh Rail- 
road Company," ratified February 14, 1855, under which the name of said com- 
pany was changed to the Wilmington and Weldon Railroad Company ; and 
that your orator is a citizen and resident of the said State of North Carolina 
and of the Eastern District thereof, having its principal place of business in the 
city of Wilmington, in the county of New Hanover, in said State and District. 



COMPLAINTS AND DECISIONS. 298 

Second. That the defendants, L. Cainpbell Caldwell, John H. Pearson and 
DeLeon H. Abbott, constitute the Board of Railroad Commissioners of the said 
State of North Carolina, the said L. Campbell ('aid well being: Chairman thereof, 
and their office and official place of business is in the city of Raleig:h, in the 
said v^;tate of North Carolina, and in the Eastern ^^istrict thereof. That the 
defendant DeLeon H. Abbott is a citizen and resident of the said Eastei-n Dis- 
trict of Noi'Mi Carolina, and the defendants L. Campbell Caldwell and John 11. 
Pearson are citizens and residents of the State of North Carolina. That the 
said L. Campbell Caldwell and John H. Pearson became and were duly ap- 
pointed members of the said Board of Railroad Commissioners in or about the 
month of September, 1897. That the defendant Zebulon V. Walser is the Attor- 
ney-General of the said State of North Carolina, and is a citizen and resident 
of said State, and is one of the officers desig-nated and mentioned in the act 
hereinafter referred to and mentioned to prosecute claims against railroad com- 
pardes in said State of North Carolina, for the enforcement of penalties as pre- 
scribed by and in the said p.et upon their refusal to comply with the orders of 
the said Board of Railroad Commissioners acting by and under the said act. 

That the said W. J. Leary is the Solicitor of the State of North (Carolina in 
and for the First Judicial District of the said vState; that the said W. E. Daniel 
is the Solicitor for the Second Judicial District of the said State; that the de- 
fendant Wheeler Martin is Solicitor for the said State in the Third Judicial 
District of said State; that the defendant E. W. Pou is the Solicitor for the said 
State in the Fourth Judicial District of the said State ; that the said M. C. 
Richardson is the Solicitor for the State in the Sixth Judicial District of the 
said State, and that the said H. F. Seawall is the Solicitoi- for the State in the 
Seventh Judicial District of the said State. 

That the said W. J. Leary, W. E. Daniel, Wheeler Martin, E. W. Pou, M. C. 
Richardson and H. F. Seawall are all citizens and residents of the said State of 
North Carolina, and are of the officers designated and mentioned in the act 
hereinafter referred to, being the Railroad Commission Act, to prosecute claims 
against railroad companies in the said State of North Carolina, for the enforce 
ment of penalties as prescribed by and in the said act upon their neglect or 
refusal to comply with the orders, rules and regulations of the said Board of 
Railroad Commissioners acting by and under the said act. 

Third. That on or about the 51 h day of March, A. D. 1891. ihe General Assem- 
bly of the said State of North Carolina passed an act entitled " An Act to pro 
vide for the general supervision of railroads, steamboat or canal companies, 
express and telegraph companies doing business in the State of North Caro- 
lina," and being "chapter 320 of the Laws of North Carolina for the session of 
1891." That thereafter the said act was amended or supijlemented by acts of 
said General Assembly of North Carolina, ratified on the following dates: 
Apri 1, 1891; February 9, 1898; March 6, 1893, and February 14, 1893; to which 
said acts and amendments your orator begs leave to refer, and by reference in 
elude herein with the same force and effect as though the same were here set 
forth at length. The said act, ratified March 5, 1891, as amended by subsequent 
acts, provides for an election by the General Assembly of the State of North 
Carolina of three Commissioners, who shall be charged with the general super- 
vision of all railroad companies doing business in the State of North Carolina, 
and shall fix and regulate the rates and charge« of the said railroad companies, 
and to that end the said Commissioners are empowered to make reasonable and 



294 BOARD OF RAILROAD COMMISSIONERS. 

just rates of freight and passenger tariffs, and to cause the same to be observed 
and followed by any and all railroad companies doing business in the State of 
North Carolina. 

The said act provides as follows : 

" That the said Commissioners appointed as hereinbefore provided shall, as 
hereinafter provided, make reasonable and just rates of freight and passenger 
tariff, or cause the same tb be furnished by any railroad companies, and the 
«ame approved by said Commissioners shall be observed bj^ such company or 
companies doing business in this State; and in making said rates they shall, 
unless such railroad company or companies shall fail to furnish the needed in- 
formation, consider as far as practicable the actual value of the employed capi- 
tal of the corporation, the earnings of the railroad and the cost of'oi)erating the 
same, the competition of rival lines of water and transportation (Companies 
within the State, and any and all other matters proper to be considered by 
them." 

The said act further provides that, in the event of any neglect or refusal on 
the part of any railroad company to comply with any rule, regulation or order 
of the said Railroad Commissioners, made in pursuance of said act, a penalty 
shall be incurred by such railroad companies so refusing, to be collected by suit 
in the manner set forth in the said act. And the said act provides that the said 
Railroad Commissioners shall institute such action for the recovery of said pen 
alties through the Attorney General or the Solicitor of the Judicial District in 
which such violation has occurred ; and that the line of the defendant's railroad 
runs through the First, Second, Third, Fourth, Sixth and Seventh Judicial Dis- 
tricts of the State, of which the defendants W. J. Leary, W. E. Daniel, Wheeler 
Martin, E. W. Pou, M, C. Richardson and H. F. Seawall are Solicitors, respec- 
tively, as hereinbefore stated. 

Fourth. That the defendants L. Campbell Caldwel, John H. Pearson and 
DeLeon H. Abbott now form and constitute the Board of Railroad Commis- 
sioners of the State of North Carolina under the provisions of the said act, and 
that the said L. Campbell Caldwell is Chairman of the said Board. 

Fifth. That the amount involved in this suit is over two thousand dollars, 
eiclusive of interest and costs, and that this suit is one arising under the Con- 
stitution of the United States. 

Sixth. Your oiator further shows that the rate fixed by the former Board of 
Railroad ComiPxissioners, as constituted before the appointment of the said 
Caldwell and Pearson upon the said Board, for the transportation of passen- 
gers, over the line of your orator's railroad company in said State, as well as 
over all other railroad lines in said State, has been for some time and still is 3^ 
cents per mile for first class passengers, and 2^ cents per mile for second-class 
passengers. These are just and reasonable rates, and they have been so repeat- 
edly adjudged by the Board of Railroad Commissioners of the said State, after 
due deliberation and consideration, and they have proven to be so during the 
several years they have been in operation. That this question of the reduction 
of the old rates was brought before the former Board of Railroad Commission- 
ers in the year 1896, and earnestly and zealously urged and insisted upon, and 
the said Board, upon the evidence produced before it upon the question, after 
grave and mature deliberation, decided that the present rates of passenger 
fares, as prescribed by the Board and existing, were only just and reasonable; 
and in this connection the said Board, in the report which they made, in com- 



COMPLAINTS AND DECISIONS. ■ 295 

pliance with the act of the General Assembly of this State creating the said 
Board, to the Governor of North Carolina, '.under date of December 81, 181J6, 
used the following language, to-wit: " A statement which follows shows the 
local rates in different States, varying from 4 cents per mile in Florida to 8 cents 
in Pennsylvania, and 2^4 cents in Massachusetts. ;:;When it is considered that 
the population in Massachusetts is 309 per square mile, and of Pennsylvania 138 
per square mile, as compared with a population of only 88 per square mile in 
North Carolina, the established rates of 8X cents first class and 2^ cents second- 
class in this State are certainly relatively very much lower than the rates of 8 
cents and 2^ cents, respectively, in Pennsylvania and Massacliusetts. Compar- 
ing the passenger traffic of the important railroads of the North and West with 
the traffic of the roads in North Carolina, it will be seen that the passenger 
rates charged in this State are now very much lower, in proportion to the vol- 
ume of traffic, than the rates in other sections of the country." 

That the said Board of Railroad Commissioners was then composed of James 
W. Wilson, Chairman; Eugene C. Beddingfield and S. Otho Wilson. That 
afterwards, in the month of July, 1897, the said Board of Railroad Commis- 
sioners, being then composed of James W. Wilson, Chairman, and S. Otho Wil- 
son and D. H. Abbott, with a view to a further investigation of the same mat- 
ter, required the several railroad companies of this State, including this defend- 
ant, to appear before it on the 18th day of July. 1897, and show cause in writing 
why a revision of the freight and passenger tariffs should not be made; and the 
Governor of the State, the Honorable J). L. Russell, and others, were especially 
invited to be present at the hearing and present their views or any information 
or facts in their possession touching the matter; that at the hearing, on the 
said 18th of July, 1897, communications from the Governor and others were 
presented and read, advocating the reduction of both passenger and freight 
tariffs. The Commission, ''after a most painstaking investigation of the rates 
of passenger and freights as they now exist and in comparison with previous 
years," upon the hearing refused to disturb the said rates and adjudged as fol- 
lows: "They also find that the passenger rates, as a general thing, are as low, 
if not lower, than that of any other State of a like population to the square 
mile ; and the freight rates vvill, as a whole, compare most favorably with any 
State in the Union. As a proof of this, reference is made to a most careful and 
accurate report of rates in all the States, given this day to the press and now 
on file in this office. 

"The Commission, from the above facts, together with others elicited by tlie 
recent discussion, see no good reason for changing their views as expressed in 
their last report, but do reiterate that the present rates are just and reasona- 
ble, and such as were contemplated in the act creating the Commission, and 
will make no change at present time." 

Seventh. That on or about the 21st day of February, 1898, the said Board of 
Railroad Commissioners of the State of North Carolina, at that time composed 
of the defendants L. Campbell Caldwell, Chairman; John H. Pearson and De- 
Leon H. Abbott, adopted, passed and promulgated an order, a copy of which is 
hereunto annexed, marked Exhibit "A," which the complainant prays may be 
taken as a part of this bill, and which said order by its terms was to go and be 
put into force and effect on and after the 28d day of March, 1898. Under and 
by virtue of the said order, the rates of fare for passengers were reduced on and 
after the 28d of March, 1898, over the main line of the railroad of vour ora- 



29H BOARD OF RAILROAD COMMISSIONERS. 

tor in this State, and on most of the railroads of the State, from 3X cents per 
mile for first class passengers to 2;^ cents per mile for first-class passengers, and 
from 2)4 cents per mile for second class passengers to 2 cents per mile for 
second-class passengers. That thereafter, to wit, on or about the 1st day of 
March, 1898, as ordered and aathorized by section 7 of the said a<3t of March 5, 
A. D. 1891, your orator duly filed with the said Board of Railroad Commis 
sioners exceptions to the said order reducing the passenger rates as aforesaid; 
and on the 17th day of March, 1898, the said Board of Railroad Commissioners 
overruled said exceptions and refused to restore the eld rates for passenger 
fares, and also to alter or interfere with the said new rates for passenger fares 
so fixed by them. That afterwards the said Board of Railroad Commissioners, 
L. Campbell Caldwell, John H. Pearson and DeLeon H. Abbott, passed and 
promulgated an order to the effect that the said order reducing the rates of 
passenger fares should be suspended until the 1st of April, 1898, and not go into 
force and effect until that day as to such railroad companies as should make 
application to the said Board for such postponement of said order; that your 
orator duly made application for !-uch suspension and postponement of said 
order, which was granted by the said Board of Railroad Commissioners. 

Thereafter, at the meeting of the said Board of Railroad Commissioners held 
on or about the 30th day of March, 1898, the said order No. 80 was rescinded and 
the old rates of passenger fare continued in effect. In deciding this question, 
the defendant DeLeon H. Abbott voted in favor of rescinding, and the defend 
ant John H. Pearson against it, and the deciding vote vvas cast by said Cald- 
well, and in a letter to the (jovernor, who had appointed him to the office, dated 
March 30, 1898, the said Caldwell explained his vote and declared that his orig- 
inal vota to reduce rates was wrong, and that duty demanded at his hands that 
the wrong to himself, the people and the railways be corrected; and he then 
stated to the Governor that his resignation was at his disposal. 

Thereafter, on the 2d of April, 1898, the said Caldwell wrote a letter to the 
Governor withdrawing the tendei* of his resignation of his office as Railroad 
Commissioner and several letters passed between the Governor and himself, the 
Governor insisting upon his resignation, and the said Caldwell declining to re- 
sign; that no proceedings were taken to follow up his so-called resignation and 
no successor was appointed to fill the alleged vacancy, and the said Caldwell is 
still a member and Chairman of the said Board. 

On the 20th of April, 1898, said Daniel L. Russell, Governor, as aforesaid, 
filed through counsel a complaint against each of the following roads, to-wit: 
The North Caroina Railroad Company, the Raleigh and Gaston Railroad Com- 
pany and against your orator, the Wilmington and Weldon Railroad Company, 
all of which are in general outline the same, and in each of which he asked that 
the aforesaid reduction of rates should be made; that is to say, from 3^ cents 
per mile for first class passengers, to 2>4 cents per mile, and from 2^/ cents per 
mile for second-class passengers to 2 cents per mile— a copy of the said complaint 
is hereto attaclied, marked '" Exhibit No. 1," which your orator prays may be taken 
as a ]i:irt of this bill ; to which said complaint your orator filed an answer, a copy of 
which is hereto annexed, marked •' Exhibit No. 2." which your orator prays may be 
taken as a part of this bill. 

That upon the hearing of the said matter, which was set down for the 13tli day of 
July, 1898. the said Railroad Commission, the said Caldwell and Pearson voting in 
the affirmative and Abbott in the negative, ordered a reduction of passenger rates 



COMPLAINTS AND DECISIONS. 1J97 



on all the lines of your orator to 2^ cents per mile for first-class passengers and 2 
cents per mile for second-class passengers, but the said Board refused to reduce the 
passenger rates upon the line of the North Carolina Railroad and declining to give 
any decision in the case of the Raleigh and Gaston Railroad Company continued the 
same indefinitely. Moreover the rates have been reduced below 3X and 2% cents 
per mile, respectively, on no other railroad in the State. 

That during the period elapsing since the 30th of March, 1898, when the said 
Board of Commissioners rescinded its former order reducing the passenger rates 
over most of the railroads in the State, and when said Caldwell declared that his 
orginal vote to reduce the rates was wrong and that duty demanded at his hands 
that the wrong to himself, the people and the railways be corrected, there has been 
no such change in the general condition of affairs, or in the business or earnings of 
your orator, or in the existing circumstances as to warrant any such decided change 
of opinion on the part of said Caldwell, or in the reduction of the passenger rates 
over your orator's line of railroad. 

As shown from the repoi ts filed by the said three railroad companies in the year 
1897 before the said Railroad Commission, the total gross receipts of the Wilming- 
ton and Weldon Railroad Company were $1,874,813.65; of the North Carolina 
Railroad Company $1,592,217.93 ; and of the Raleigh and Gaston Railroad Company 
$602,304.23 ; the total receipts from passenger service of the Wilmington and W^el- 
don Railroad Company, as shown by the same report, was $590.494.76 ; of the 
North Carolina Railroad Company $636,861.05, and of the Raleigh and Gaston 
Railroad Company $142,636.84 ; the total mileage of the said companies is as fol- 
lows: the Wilmington and Weldon Railroad Company 610 miles, the North Caro- 
lina Railroad Company 221.65 miles, the Raleigh and Gaston Railroad Company 
107 miles ; the total gross receipts per mile of the said three roads are as follows: 
the Wilmington and Weldon Railroad Company $3,073, North Carolina Railroad 
Company $7,183.44, Raleigh and Gaston Railroad Company $5,629. That the said 
railroads are in as prosperous condition as is your orator, run under substantially 
the same conditions and under substantially the same circumstances, and your 
orator submits that the said Commission has unlawfully discriminated against your 
orator and denied to it the equal protection of the laws, contrary to the Fourteenth 
Amendment to the Constitution of the United States in reducing its rate and refus- 
ing to reduce those on the said North Carolina Railroad Company. That the fol- 
lowing is the mileage of the lines of railroad owned and operated by your orator in 
the State of North Carolina : 

Miles 

The main line from Wilmington to Weldon 161. 40 

Tarboro Branch 67.71 

Scotland Neck or Kinston Branch 85. 82 

Midland Branch 21 . 50 

Wilson and Fayette ville Branch— Short Cut 116. 20 

Nashville Branch 19. 20 

Clinton Branch 13. 43 

Washington Branch 25. 39 

Spurs to Mills and Factories 10. 20 

520. 85 

Newbern Branch (acquired in fall of 1897) 90. 03 

Said lines of railroad were judiciously located and enconomically constructed. 
They have at all times been economically managed and operated by your orator. 



298 BOARD OF RAILROAD COMMISSIONERS. 

It cost to construct and equip the 520.85 miles above named, with yards, station 
grounds, buildings and terminal facilites, over $10,802,242. It cost to construct and 
equip the Newbern Branch, as shown by its reports to the said Board of Commis- 
sioners, over $2,396,896. It would cost now to construct, equip and replace the lines 
of railroad of your orator, including the said Newbern Branch, at least $10,292,000 
up'on a very tnoderate estimate. 

That the^e are outstanding mortgage bonds on your orator's roads outside of the 
Newbern Branch as follows : 

General first mortgage '- $4. 000, 000. 00 

Mortgages on Albemarle and Raleigh or Tarboro Branch 500, 000. 00 

4, 500, 000. 00 
And special trust certificates of indebtedness 380, 000. 00 

4,880,000.00 

And in addition to this the capital stock of your orator is three millions of dollars' 
and it has in addition to that outstanding certificates of indebtedness amounting to 
two millions, five hundred thousand dollars upon wliich it is liable for interest at 
seven per centum per annum, and such interest is a legitimate fixed charge if earned, 
and takes precedence over the payment of any dividend to its stockholders. All of 
said first two items were incurred in the construction of and equipment of portions of 
your orator's road, and the whole thereof was expended thereon. The $360,000 debt 
was incurred in purchasing a controlling interest in the Northeastern Railroad of 
South Carolina, a necessary and valuable outlet for the business of your orator's 
road. 

The following is a correct statement of the earnings from operation and operat- 
ing expenses of your orator's road for the year ending June 30. 1897 : 

Gross earnings from operations $1, 874, 813. 65 

Less operating expenses 1, 088, 840. 98 

Income from operation 785, 976 . 67 

About . 328 per cent of the gross earnings were from domestic business. 

Your orator appends hereto a schedule marked •' Exhibit No. 4."' which correctly 
shows the net receipts from domestic or intrastate business for the said year end- 
ing June 30, 1897, after deducting its proper proportion of taxes, fixed charges, etc. 
In said schedule the additional cost of domestic business is put at 10 per cent' 
which is a reasonable estimate, and the percentage of 328' which is taken in said 
exhibit as a fair proportion of the domestic business is taken from the quarterly 
statement of the business for the months of January. February and March. 
1898, as shown in "• Exhibit 5," and, while not entirely accurate, is a fair esti- 
mate l^and proportion for the entire business of the year 1897, and the closest ap- 
proximation to the actual results that your orator can now arrive at. The said road 
and its branches were assessed for taxation for the year ending June 1, 1897, at 
$5,017,425.00, and the total amount of taxes paid was $44,032.10. 

For the year ending June 1. 1898. the assessment was $5,880,050.00, and the total 
taxes were $55,952.71. 

For the year ending June 1, 1899, the assessment was increased to S7. 582. 775. 20, 
and the taxes due thereon will be $ 

Your orator's report for the year ending June 30. 1898, is not yet completed, but 
the same will be completed and filed by September 1. 1898, as required by law. 



COMPLAINTS AND DECISIONS. i^99 

While the same will show some increase of business, it will not furnish any reason 
why the relief prayed herein shall not be granted. No year prior to the year 1896 
and 1897 was so profitable as said year, and it is therefore chosen for illustration in 
the figures aforesaid. 

But in obedience to the order of the said Board of Railroad Commissioners, your 
orator filed with the said Board on the day of July, 1898, a report of the opera- 
tions for the months of January. February and March, 1898, which includes the 
branch of 87.25 miles, known as the Newbern Brancli, acquired by your orator in 
the fall of 1897. 

Your orator protests that said three busy months can not be fairly taken as a 
representative of the entire year, but it inserts below a statement based on •' Exhibit 
5," hereto attached as part of this bill, and also based on the assumption that said 
showing will hold during the year. In said statement 20 per cent of mail, express 
and miscellaneous matter are put down as domestic business, and your orator al- 
leges that the same is a reasonable percentage to credit to the same, and it believes 
it is as much as the facts will justify. Your orator alleges that the proposed reduc- 
tion of rates, which averages 25 per cent of the present rates, will not only alfect 
domestic rates, but also interstate rates, insomuch as the latter are based on a just 
and fair scale in proportion to the local rates, so that the proposed reduction will 
reduce the earnings of your orator, as it is believed, at least $104,176.86 annually, as 
estimated upon the earnings of your orator for the year 1898, based upon the calcu- 
lations made from the quarterly report of 1898 herein referred to. Taking the fig- 
ures included in these exhibits as a basis and apportioning mail, express and mis- 
cellaneous items on a ratio of 20 per cent to domestic business, we have the follow- 
ing showing, which your orator alleges is just and fair : 

Total freight and passenger earnings $508, 209 . 34 

Mail, express and miscellaneous . . 51, 230. 47 

Grand total 559, 439 . 81 

Domestic freight and passenger 166, 782. 60 

Add 20 per cent of mail, express and miscellaneous 10, 246. 08 

Four times this for whole year 177, 028. 68 

4 

Is. • 708,114.72 

Dedvict .328 of operating expenses ($1, 247, 423. 80) . _$409, 154, 74 

Plus 10 per cent ^0,915.47 450,070.21 

258,044.51 
Less .338 of taxes 18,315.66 

239,728.85 

Per cent. 

Which is on former tax valuation of $5, 498, 955. 00_ . . 4. 36 

On tax valuation of $7,582,775.00 3.16 

On cost of road $10, 802, 242. 00 2.21 

On cost of reproduction $10, 292, 000. 00, including Newbern 

Branch 2. 33 

On cost of road, including Newbern Branch, $13, 199, 138. 00 . _ . 1 . 82 



800 BOARD OF RAILROAD COMMISSIONERS. 

Now if we deduct . 328 of tlie fixed cliarges from $239. 728. 85 we have the follow 
ing: 

$239, 728. 85 
Less .328 of the fixed charges 87, 128. 89 

152,599.90 



Which is on former tax valuation of $5, 498, 955. 00. 



Per cent 
o 



-J. i i 



On tax valuation of $7,582,775.00 2.01 

On cost of road $10,802,242.00 1.41 

Oncost of reproduction $10,292.000.00 1.48 

On cost of road with Ne vvbern Branch $13, 199, 138. 00 1 . 15 

And in these estimates or calculations no account is taken or made as to the in- 
terest on the $2,500,000.00 in certificates of indebtedness which are described above, 
but your orator claims, and is advised, that such interest should be considered by 
this Honorable Court as a legitimate fixed charge. 

Tenth. — That the said new rates of passenger fares so prescribed by the said 
order will, tlierefore, go into effect and become operative on and after the 13th day of 
August. A. D. 1898. unless the said Board of Railroad Commissioners and the said 
L. Campbell Caldwell, John H. Pearson and DeLeon H. Abbott be commanded and 
enjoined by this Honorable Court to restore the old rates of passenger fares wdiich 
were in force and effect prior to the promulgation of said order,' and to suspend the 
operation and effect of the said order until the further order of this- Honorable 
Court. 

Eleventh. — That your orator files herewith a schedule showing the earnings and 
cost of operation of its several passenger trains, respectively, for the months of De- 
cember and November, 1897, and Januar3^ 1898, marked "Exhibit No. 8," which 
your orator prays may be taken as a part of this bill of complaint. The said three 
months were fully an average in point of business for the whole year, and, there- 
fore, may be taken as fairly representative of the year, and your orator alleges that 
the said statements are just and correct, and show the true earnings of the sev- 
eral trains of your orator for the period therein stated, including the earnings from 
all interstate passenger business done by your orator during the periods therein 
mentioned. And your orator alleges that the actual average cost and expense of 
running and operating all trains upon its line of railroad for the fiscal year ending 
June 30, 1896, w^as 85 cents per mile run, and for the fiscal year ending Juine 30. 
1897, was 86 cents per mile run ; that as shown by the said statement only two of 
the passenger trains operated by your orator under the present existing rates of 
passenger fares yield a profit, to-wit, trains Nos. 23 and 35, wdiich are through 
trains from the north and operated by the Atlantic Coast Line system, of which 
your orator is a member and component part, between Richmond, Va., and Char- 
leston, S. C and their profitableness grows out of the fact that they carry the 
through Southern travel. That even with the interstate business included, the re- 
duction such as is prescribed by the said Board of Railroad Commissioners, and 
which is a nominal reduction of 23 per cent upon the existing first-class fares and of 
27 per cent upon second-class fares, and is in reality and effect a reduction of 20 per 
cent or more as applied to both, when there is taken into consideration the reduced 
fares now given to excursions, fairs, conventions, public meetings, ministers of the 
Gospel, etc., will cause all the passenger trains of your orator's line of railroad to be 
operated at a loss, and eliminating all interstate business from the calculation, the 



COMPLAINTS AND DF.CISIONS. 1)0 1 

said loss will be still greater as the income t'ron\ tlie passenger fares will not equa 
the actual running of said trains economically. 

Twelfth. — That the fares prescribed in the said order so promulgated l)y the said 
Board of Railroad Commissioners are not just and reasonable in that they are un- 
reasonably low, and their enforcement will deny unto your orator due process of 
law and the ecjual protection of the laws, wliicli is tlie constitutional right of your 
orator, and tliat the attempt to enforce tlie rates set forth in the said order will be 
a confiscation of property. Wherefore, your orator expressly claims tliat the en- 
forcement of the said order will be in violation of the fourteenth amendment to the 
Constitution of the United States. That unless the said Board of Railroad Com- 
missioners and the said L. Campbell Caldwell. John H, Pearson and DeLeon H. 
Abbott are commanded and enjoined by this Honorable Court to restore and put 
into effect the said old rates of passenger fares existing prior to the promulgation 
of the said order, and to rescind or suspend the operation of the said order until the 
further liearing of this cause, your orator cannot refuse to comply witli the said 
order and to put the said passenger rates into effect over its lines of railway with- 
out incurring the heavy penalties prescribed in the said Act of the otli of March, 
1891, which would attach for violation by your said orator of the said order; and 
that if your said orator, in obedience to the said order, should reduce the passenger 
fares over its said line of railroad in accordance with the said order, the effect 
thereof would be to cause a heavy diminution in its earnings and revenue, to the 
serious injury and detriment of your orator and all of your orator's stockholders, 
the extent of which cannot now be justly estimated. 

Thirteenth. — That it is provided in and by the said Act of March 5th. 1891. as 
follows: 

''Section 10. That if any railroad company doing business in this State by its 
agents or employees sliall be guilty of a violation of the rules and regulations pro- 
vided and prescribed by said Commissioners, and if. after due notice of such viola- 
tion, given to the principal officer thereof, if residing in the State, and if not. to 
the manager, or superintendent, or secretary, or treasurer, if residing in the State, 
and if not, then to any local agent thereof, ample and full recompense for the 
wrong or injury done thereby to any person or corporation as may be directed by 
said Commissioners shall not be made within thirty days from the time of such 
notice, such company shall incur a penalty for each offense of not less than fifty 
dollars nor more than five thousand dollars, to be fixed by the judge of the court in 
which such action shall be tried. An action for the recovery of such penalties shall 
lie in any county in the State where such violation has occurred or wrong has been 
perpetrated, and shall be in the name of the State of North Carolina. The Com- 
missioners shall institute such action through the Attorney General or Solicitor of 
the judicial district in which violation has occurred, vvdiose fees shall be fixed by 
the judge of the court in which said action shall be determined, and said fees shall 
be taxed in the bill of costs." 

And that unless restrained by the order of this Honorable Court, your orator can 
not refuse to comply with the said order reducing the rates of, passenger fares so 
promulgated by the said Board of Railroad Commissioners, L. Campbell Caldwell. 
John H. Pearson and DeLeon H. Abbott, except at the risk of a multitude of suits 
which will be instituted against it under and in pursuance of the foregoing provis- 
ions of the said act for violation of the proceedings of the said order. 

Wherefore, your orator prays that the said Board of Railroad Commissioners, the 
said L. Campbell Caldwell, John H. Pearson and DeLeon H. Abbott, and the said 



302 BOARD OF RAILROAD COMMISSIONERS. 

Zebulon V. Walser and W. J. Leaiy. W. E. Daniel, Wheeler Martin, E. W. Pou, 
M. C. Richardson and H. F. Seawall be made parties defendant to this bill, and that 
subpoena thereon may issue in due course, and that each of the said defendants be 
required to answer this bill according to the usual practice of this Honorable Court, 
but without oath, an answer under oath being hereby expressly waived ; that on 
the hearing the unreasonableness and injustice of the said rates of fare for the 
transportation of passengers over the lines of your orator's railroad sought to be 
enforced by said defendants, L. Campbell Caldwell, John H. Pearson and DeLeon 
H. Abbott, constituting the Board of Railroad Commissioners of the State of North 
Carolina, be adjudged unjust and unreasonable and contrary to law and equity, and 
that in the meantime your Honors may order the issuance of the writ of injunction 
commanding and enjoining the said Hoard of Railroad Commissioners, L. Campbell 
Caldwell, John H. Pearson and DeLeon H. Abbott, to restore the old rates of pas- 
senger fares as existing prior to the promulgation of the said order by the said 
Board of Railroad Commissioners, and to rescind and suspend the operation of the 
said order of the said Board of Railroad Commissioners reducing the said rates of 
passenger fares as aforesaid, and also from putting into effect the said rates of fare 
for the transportation of passengers prescribed by the order of the said defendants, 
L. Campbell Caldwell. John H. Pearson and DeLeon H. Abbott, constituting the 
Board of Railroad Commissioners of the State of North Carolina ; and that the said 
defendants. L. Campbell Caldwell, John H. Pearson and DeLeon H. Abbott, con- 
stituting the Board of Rail.oad Commissioners of the State of North Carolina, and 
the said Zebulon V. Walser, acting as Attorney General of the said State of North 
Carolina, and the said W. J. Leary, W. E. Daniel, Wheeler Martin, E. W, Pou, M. C. 
Richardson and H. F. Seaw^ell. Solicitors as aforesaid, and their successors in 
office, be forbidden and enjoined from instituting or authorizing or directing any 
others to institute any suit or suits, action or actions against your orator for the 
recovery of any penalty or penalties under and b}^ virtue of any provision of the 
said Act of the General Assembly of North Carolina, entitled "An Act to provide 
for the general supervision of railroads, steamboat or canal companies, express and 
telegraph companies, doing business in the State of North Carolina," ratified March 
5th. 1891. as amended by any subsequent act or under or by virtue of any order or 
orders of the said defendants, L. Campbell Caldwell, John H. Pearson and DeLeon 
H. Abbott, constituting the said Board of Railroad Commissioners of the State of 
North Carolina, or either or any of them combined ; and that the said defendants, 
L. Campbell Caldwell, John H. Pearson and DeLeon H. Abbott, and the Board of 
Railroad Commissioners of the State of North Carolina be forbidden, restrained and 
enjoined from certifying any copy or copies of said order, and from delivering or 
permitting or causing to be delivered any copy or copies of said order to any Solic- 
itor in any judicial district in the said State of North Carolina, or to the said Zebu- 
lon V. Walser, Attorney General, or to any other person, and from furnishing to 
any of the defendants or any other Solicitor of the said State of North Carolina, 
any information of any character whatever for the purpose of inducing, enabling 
or aiding him or them to institute or prosecute any suit or suits against your orator 
for the recovery of any penalty or penalties under the said Act of March 5. 1891, as 
amended by any supplemental acts ; and that the said defendants, the Board of 
Railroad Commissioners of the State of North Carolina, and the said L. Campbell 
Caldwell, John H. Pearson and DeLeon H. Abbott, acting as Railroad Commis- 
sioners of the said State, and their successors in office, be forbidden, restrained and 
enjoined from making or issuing or delivering to your orator, or from causing to be 



COMPLAINTS AND DECISIONS. 803 

made, issued or delivered to it any other or further order reducing or purposing or 
seeking to reduce the rates of fare for the transportation of passengers over the 
lines of railroad owned, controlled or operated by your orator in the State of North 
Carolina until the further order of this Honorable Court. 

And for such other and further relief as may seem to tliis Honorable Court just 
in the i:)remises and as the nature of your orator's case may require and as may be 
agreeable to equity. 

And your orator will ever pray, etc. 

R. O. BURTON, 

JUNIUS DAVIS. 

Solicitors for Complainant. 

STATE OF MARYLAND, 

CITY OF BALTIMORE. 

W. G. Elliott, being duly sworn, says tliat he is an officer of plaintiff corporation, 
the Wilmington and Weldon Railroad Company, to-wit, the President thereof ; 
that he has read the foregoing bill and knows the contents thereof, and that the 
matters therein stated as of his' own knowledge are true, and tliose stated on infor- 
mation and belief he believes to be true. 

. W. G. ELLIOTT. 

Subscribed and sworn to before me on this 8th day of August, 1898. 

FELIX R. SULLIVAN, 
Notary Public for the City and State aforesaid. 



304 BOARD OF RAILROAD COMMISSIONERS. 



IN THE CIRCUIT COURT OF THE UNITED STATES FOR THE EASTERN 
DISTRICT OF NORTH CAROLINA. 



THE WILMINGTON AND WELDON RAILROAD COMPANY 

vs. 
THE BOARD OF RAILROAD COMMISSIONERS OF THE STATE OF NORTH 
CAROLINA. L. CAMPBELL CALDWELL, JOHN H. PEARSON, DeLEON 
H. ABBOTT AND ZEBULON V. WALSER AND W. J. LEARY, W. E. 
DANIEL, WHEELER MARTIN, E. W. POU, M. C. RICHARDSON AND 
H. F. SEAWALL. 

IN EQUITY. 

Upon reading the verified bill of complaint in this cause, and upon consideration 
of the same, now. upon motion of R. O. Burton and Junius Davis, solicitors for the 
complainant, it is ordered that said defendants, the Board of Railroad Commission- 
ers of the State of North Carolina. L. Campbell Caldwell. John H. Pearson, DeLeon 
H. Abbott. Zebulon V. Walser, W. J. Leary, W. E. Daniel. Wheeler Martin, E. W. 
Pou, M. C. Richardson and H. F. Seawall, and each of them, show cause before me 
at the United States court-house in Greensboro, in the State of North Carolina, 
on the second Tuesday of October, A. D.. 1898, at 10 o'clock a. m., or as soon there- 
after as counsel can be heard, why the prayer of the said bill of complaint should 
not be granted, and why an injunction as therein prayed should not be granted 
and ordered until the final hearing of this cause. 

And it is further ordered that until the further order of this Court, and until af- 
ter the entry and filing of any such order as the Court may make upon the hearing 
aforesaid, the said defendants, the Board of Railroad Commissioners of the State of 
North Carolina, the said L. Campbell Caldwell, John H. Pearson and DeLeon H. 
Abbott are hereby enjoined and commanded to restore the old rates of passenger 
fares as existing prior to the promulgation of the said order made by the said Board 
of Railroad Commissioners, reducing passenger rates over the lines of railroad of 
the Wilmington and Weldon Railroad Company to 2^ cents per mile for first-class 
passengers and 2 cents per mile for second-class passengers, and to rescind and sus- 
pend the operation of the said order of the said Board of Railroad Commissioners 
reducing the said lates of passenger fares as aforesaid, and they are hereby 
restrained and enjoined, also, from putting into efi:ect the said rates of fare for the 
transportation of passengers over the lines of the Wilmington and Weldon Railroad 
Company prescribed by the order of the said defendants, L. Campbell Caldwell, 
John H. Pearson and DeLeon H. Abbott, constituting the Board of Railroad Com- 
missioners of the State of North Carolina, as mentioned and set forth in the bill 
herein, and from permitting the said order and new rates of fare from going into or 
remaining in effect; and that the said defendants, L. Campbell Caldwell, John H. 
Pearson and DeLeon H. Abbott, constituting the Board of Railroad Commissioners 
of the State of North Carolina, and said Zebulon V. Walser, acting Attorney- 
General of the said State of North Carolina, and the said W. J. Leary, W. E. Daniel, 



COMPLAINTS AND DECISIONS. 1^)05 

Wheeler Martin, E. W, Pou, M. C. Richardson and H. F. Seawall, acting as Solici- 
tors of the First. Second. Third, Fourth, Sixth and Seventh Judicial Districts re- 
spectively of the said State of North Carolina, and their successors in office be, and 
they hereby are forbidden, enjoined and restrained from instituting or authorizing or 
directing any others to institute any suit or suits, action or actions against the said 
complainant, the Wilmington and Weldon Railroad Company, for the recovery of 
any penalty or penalties under and by virtue of any provision of the said Act of the 
General Assembly of North Carolina, entitled, '• An Act to provide for the general 
supervision of railroads, steamboat or canal companies, express and telegraph com- 
panies doing business in the State of North Carolina."' ratified March 5. 1891, as 
amended by any subsequent act, or under or by virtue of any order or orders of the 
said defendants, L. Campbell Caldwell, John H. Pearson and DeLeon H. Abbott, 
constituting the said Board of Railroad Commissioners of the State of North Caro- 
lina, or either or any of them combined ; and that the said defendants, L. Camp- 
bell Caldwell, John H. Pearson and DeLeon H. Abbott, acting as the Board of Rail- 
road Commissioners of the State of North Carolina, and each and every of them be. 
and they hereby are forbidden, restrained and enjoined from certifying any copy 
or copies of said order and from delivering or permitting or causing to be delivered 
any copy or copies of said order reducing the rates of passenger fares over the lines 
of the Wilmington and Weldon Railroad Company as aforesaid, to any solicitor in 
any judicial district in the said State of North Carolina or to the said Zebulon V. 
Walser, Attorney-General, or to any other person ; and from furnishing to any of 
the defendants or any other solicitor of the said State of North Carolina any in- 
formation of any character whatsoever for the purpose of inducing, enabling or aid- 
ing him or them to institute or prosecute any suits against the said complainant, 
the Wilmington and Weldon Railroad Company, for the recovery of any penalty or 
penalties under the said Railroad Commission Act of March 5, 1891, as amended by 
any supplemental acts ; and that the said defendants, the said L. Campbell Cald- 
well, John H. Pearson and DeLeon H. Abbott, acting as the Railroad Commission- 
ers of the said State, and their successors in office be. and they hereby are forbid- 
den, restrained and enjoined from making or issuing or delivering to the said com- 
plainant, the AVilmington and Weldon Railroad Company, or from causing to be 
made, issued or delivered to it any other or further order reducing or purposing or 
seeking to reduce the rates of fare for the transportation of passengers over the lines 
of railroad owned, controlled and operated by the said Wilmington and Weldon 
Railroad Company in the said State of North Carolina until the further order of this 
court. 

And it is further ordered that a copy of this order be forthwith served upon each 
of the defendants herein. 

Dated this 10th day of August, A. D., 1898, at Asheville, N. C. 

It is further ordered that the complainants enter into an injunction bond in the 
penal sum of ten thousand dollars ($10,000.00), with sureties to be approved by the 
Judge of this court, as indemnity for the defendants in case this suit is decided 
against said complainants. 

CHARLES H. SIMONTON, Circuit Judge. 

Tenth of August, 1898. 



-20 



306 BOARD OF RAILROAD COMMISSIONERS. 



IN THE CIRCUIT COURT OF THE UNITED STATES FOR THE EASTERN 
DISTRICT OF NORTH CAROLINA. 



SITTING IN EQUITY AT RALEIGH. N. C. 



THE WILMINGTON AND WELDON RAILROAD COMPANY, PLAINTIFF, 

vs. , 

THE BOARD OF RAILROAD COMMISSIONERS OF THE STATE OF NORTH 
CAROLINA, L. C. CALDWELL, JOHN H. PEARSON, D. H. ABBOTT 
AND ZEBULON V. WALSER AND W. J. LEARY, W. E. DANIEL, 
WHEELER MARTIN, E. W. POU, M. C. RICHARDSON AND H. F. SEA- 
WALL, DEFENDANTS. 

The joint and several answers of the Board of Railroad Commissioners of the State 
of North Carolina, L. C. Caldwell, John H. Pearson. D. H. Abbott and Zebulon V. 
Walser and W. J. Leary, Wheeler Martin, E. W. Pou, M. C. Richardson and H. F. 
Seawall, defendants, to the bill of complaint of the Wilmington and Weldon Rail- 
road Company, the plaintiff. 

These defendants respectively, now and at all times hereafter, saving to them- 
selves all and all manner of benefit or advantage of exception or otherwise, that 
can or may be had or taken to tlie many errors, uncertainties and imperfections in 
the said bill of complaint contained, for answer thereto, or to so much thereof as 
these defendants are advised it is material or necessary for them to make answer 
to, severally answering, say : 

First. That the allegations of the first paragraph of the said bill of complaint, as 
to the incorporation of the plaintiff', are true. 

Second. That the allegations of the second paragraph of the said bill of com- 
plaint, as to the constitution of the Board of Railroad Commissioners, and the offi- 
cial character of the several defendants, are true. 

Third. That tlie allegations of the third paragraph of the said bill of complaint, as 
to the Acts of the General Assembly of North Carolina which created said Board 
of Railroad Commissioners and define its powers and duties, are true. 

Fourth. That the allegation of the fourth paragraph of the said bill of complaint, 
as to the present constitution of said Board, is true. 

Fifth. That the allegation of the fifth paragraph of the said bill of complaint, as 
to the amount involved in this suit, is true. 

Sixth. That it is true, as alleged in the sixth paragraph of the bill of complaint, 
that the rates fixed by the former Board of Railroad Commissioners for the trans- 
portation of passengers over the several lines of railroads in this State have been 
three and one-quarter cents per mile for first-class passengers and two and three- 
quarter cents per mile for second-class passengers. That while under certain con- 
ditions and circumstances, the former Boards of Railroad Commissioners have 
retained said rates and refused to make a wholesale or level reduction thereof on all 
the lines in the State, it is not true that these rates were, or are, not just and rea- 



COMPLAINTS AND DECISIONS. 307 

sonable with respect to the main line of the plaintilf herein, which has been, and is 
now making a very large profit upon its local traffic in North Carolina, as well as 
upon its through business. 

Seventh. That it is true, as alleged in said paragraph, that the Board of Railroad 
Commissioners, composed of Jas. W. Wilson, E. C. Beddingfield and S. Otho Wil- 
.son. in the year 1896, declined to reduce the passenger rates of all the railroads in 
the State, and that in July, 1897, the said Board, composed of Jas. W. Wilson, S. 
Otho Wilson and D. H. Abbott, made the same ruling. But in 1896 the question 
was not presented, as now, whether the strongest and most prosperous railroad 'in 
the State, with an annual income from operation of within less than $10,000.00 of 
$1,000,000.00, could stand a reduction of less than $30,577.05 on the receipts from 
domestic business upon its main line, where its percentage of profit was greatest. But 
the question was, whether a large number, if not all of the railroads in the State 
could stand a reduction of passenger rates. When this proposition was decided in 
the negative by the said Railroad Commissioners, the plaintiffs report of 1895 was 
before them, showing an income from operation of only $685,809.21, less than the 
income of 1898 by $305,590.26. It is true that the said Railroad Commissioners in 
the report, which they made to the Governor under date of December 31, 1896, com- 
pared the local rates of this State with those of Pennsylvania and Massachusetts, 
where the population per square mile is 123 and 309 respectively, while that of 
North Carolina is only 33 per square mile. But, they omitted to refer to the fact 
that the number of miles of line per 10,000 inliabitants in Pennsylvania is 16.87, in 
Massachusetts 8.47 and in Ohio 21.23, while in North Carolina it is 19.29, as appears 
on pages 11 and 12 of the Interstate Commerce Commission Report of 1896, and yet the 
average passenger rate in North Carolina is higher than in any of these States. They 
likewise omitted to call attention to the fact, that while the average fare per mile 
is 2.15 cents in the UnitedStates.it is only 1.17 cents in Germany, 1.67 cents in 
Austria; 1.11 cents in Belgium, 1.29 cents in Denmark, 1.45 cents in France. 1.64 
cents in Italy and 1.45 cents in sparsely settled Russia. They neglected to mention 
that two of the great railroad systems in this State have voluntarily adopted a first. 
class mileage ticket at 2>^ cents a mile, and the other a mileage ticket at 2 cents a 
mile first-class. They failed to notice that in Michigan, whose population per 
square mile is 39 as against 33 in North Carolina, whose number of miles of line per 
10,000 inhabitants is 83.36, as against 19.29 in North Carolina, and whose number of 
miles of line per 100 square miles of territory is 13.12, as against 7.19 in North Caro- 
lina, its laws require certain of its railroads to carry first-class passengers at two 
cents per mile, and these roads continue to flourish. 

Eighth. That it is true, as alleged in said paragraph, that in July, 1897. the ques- 
tion of a general reduction of the passenger rates upon all railroads in the State 
was again presented, and it was again decided in the negative by the same Board. 
That then, as in 1896, there were many of the railroad companies of the State which 
were struggling for an existence and ill able to stand any material diminution of 
their receipts. The question was not then presented whether the Wilmington and 
Weldon Railroad Company upon its main line alone could bear the reduction. 

Ninth. That it is true, as alleged in the seventh paragraph of the bill of com- 
plaint, that the present Board of Railroad Commissioners, composed of L. C. Cald- 
well, John H. Pearson and D. H. Abbott, on February 21,1898, adopted the follow- 
ing order : 

"From and after the 23rd day of March, 1898, the fares for the transportation of 
passengers shall be as follows : 



308 BOARD OF RAILROAD COMMISSIONERS. 

"Two and one-half cents per mile for first-class tickets; two cents per mile for 
second-class tickets, on the following railroads in North Carolina, ta-wit : 

''The Wilmington and Weldon Railroad, from Wilmington to Weldon, and that 
part of the Wilmington and Weldon Road from Contentnea to the South Carolina 
State line : the Petersburg Road from Weldon to the Virginia State line : that part 
of the Tarboro Branch from Rocky Mount to Tarboro, and the Norfolk and Carolina 
Railroad from Tarboro to the Virginia State line ; the Raleigh and Gaston Railroad 
from Weldon to Raleigh: the Seaboard and Roanoke Railroad from Weldon to the 
Virginia State line, and the Raleigh and Augusta Air Line from Raleigh to Gibson; 
the North Carolina Railroad from Goldsboro to Charlotte; the Piedmont Railroad 
from Greensboro to the Virginia State line; that part of the Northwestern North 
Carolina Railroad from Greensboro to Winston; the Western North Carolina RaiL 
road from Salisbury to Paint Rock; the Atlantic, Tennessee and Ohio Railroad from 
Charlotte to Statesville; the Atlanta and Charlotte Air Line Railroad from Char- 
lotte to the South Carolina State line, and the Charlotte, Columljia and Augusta 
Railroad from Charlotte to the South Carolina State line."' 

That under and by virtue of the said order the rates of fare for passengers were 
reduced on and after the 23rd day of March. 1898. on the main line of the plaintiff's 
railroad in this State, as well as on tlie many other railroads mentioned in tlie said 
order, from three and one-fourth cents per mile for lirst-class passengers to two and 
one-half cents per mile, and from two and three-fourths cents per mile for second- 
class passengers to Uvo cents. 

That shortly after the passage of the said order reducing the passenger rates as 
aforesaid, the decision of the Supreme Court of the United States m Sniythe vs. 
Ames, commonly known as the Nebraska case, was handed down. Thereupon, the 
three great systems of railroads in Nortli Carolina, the Southern, tlie Seaboard Air 
Line and the Coast Line, through their able and eminent counsel, pressed this 
decision upon the Commission, insisting that by it their hands were tied, and that 
they had no power to interfere with- donestic rates, unless they permitted each 
company to earn upon its intrastate business alone a reasonable percentage upon its 
entire investment. That, in the absence of any counsel for the State, and of any 
argument in favor of the people, acting upon the construction of the decree adopted 
and argued by the railroad companies, without the benefit of any further informa- 
tion than was contained in the tiled leports of the railroad companies, except such 
as the railroads chose to furnish, and after an ex parte presentation of the contro- 
versy by the evidence in behalf of the railroad companies, showing that some of 
the lines included m the Commission's resolution were unable to stand the pro- 
posed reduction, these defendants rescinded the said order and restored the old 
rates, the defendant L. C. Caldwell voting for the rescision and declaring that his 
previous action in passing the order of reduction on so many of the railroad lines in 
the State was, as he thought, unwise. 

Tenth. That it is true, as alleged in the seventh paragraph of the bill of com- 
plaint, that on April 20. 1898, complaints were filed in behalf of the people of the 
State against the North Carolina Railroad Company, the Raleigh and Gaston Rail- 
road Company and the Wilmington and Weldon Railroad Company, in which it was 
asked that a reduction of passenger rates should be made on the lines of the first 
two and on the main line of the last-named company betw^een Wilmington and 
Weldon. That Exhibits Nos. 1 and 2 attached to the bill of complaint are true 
copies of the complaint against the Wilmington and Weldon Railroad Company 
and its answer thereto, except that several exhibits, which were annexed to the said 
answer, have been omitted. 



COMPLAINTS AND DECISIONS. 'M)i) 

Eleventh. That in said complaint, the allegations of which are here reiterated as 
a part hereof, it was suggested that the meaning and effect of the Nel)raska decision 
had been misunderstood by these defendants. That in this case the Supreme Court 
of the Unitecl States had not undertaken to decide what proportion of the value of 
the property of a railroad company within a State should be considered as entitled 
to earn a reasonable percentago of profit on domestic or intrastate business. That 
in said complaint it was and it is contended : 

"That while it is admitted that a railroad company, whose property is used in 
both domestic and interstate commerce, is entitled to earn, in respect to the whole 
of its business, a reasonable percentage of profit, that percentage of profit must be 
apportioned, so that a certain part of it shall be considered as derived from domes- 
tic and the balance from interstate business. 

'■That the railroads were built to ba used in both domestic and interstate business, 
and it is but just that, with respect to each class of business, they shall be per- 
mitted to earn a fair profit upon the proportion of their investment which may be 
deemed appropriated to that class of business, the total profit being limited to a 
just per centum of the total investment. And such proportion of the investment of 
its capital or of the value of its property is to be deemed appropriated to domestic 
business as the volume of such business l)ears to the volume of the whole business 
of the company. 

"That, differently construed, the Nebraska decision would absolutely destroy in 
every case that most salutary power of the Commission — the power to regulate the 
freights and fares of railroad companies for the protection of the public. Con- 
strued in this manner, the decision does not prevent the Railroad Commissioners 
from reducing the fares on some of the railroads in the State. 

•• That the Nebraska decision does not decide that a railroad must be permitted to 
take a certain percentage of profit out of every class of its domestic business, as, for 
example, a reasonable percentage of profit out of its domestic passenger busi- 
ness ; a reasonable percentage of profit out of its domestic express business ; a rea- 
sonable percentage of profit out of its domestic mail service : a reasonable percentage 
of profit out of its domestic freight business. That it would be beyond the power 
of the Commission or the Court to interfere with the internal management and ad- 
justment of these several matters. That the rule is, that from its domestic business 
of all kinds, in the aggregate, the company shall not be prevented from receiving a 
reasonable compensation for such service." 

That it was further stated in said complaint, that the Wilmington and Weldon 
Railroad Company upon its entire line, including unprofitable branches, made a 
profit in 1896 and 1897 of 14.3 per cent upon its assessed tax valuation for that year, 
and in 1897 and 1898 it made a profit of 13.1 per cent upon its largely increased tax 
valuation. That the proposed reduction of rates would not materially affect the in- 
come of the said company, but that it would still receive a large profit on its intra- 
state as well as its interstate business. 

Twelfth. That to this complaint the present plaintiff, the Wilmington and Wel- 
don Railroad Company made answer, protesting that the only purpose of the com- 
plainant was to make up a test case, in which certain abstract questions of law 
might be decided. Whereas, the realpurpose of the said complainant and of these de- 
fendants, Commissioners, in their subsequent action, was to reduce the domestic 
passenger rates on the main line of the plaintiff between Wilmington and Weldon 
to a proper standard. 

That the plaintiff further protested in said answer, as it does in the present com- 
plaint, that the same question had been considered by former Boards of Railroad 



BIO BOARD OF RAILROAD COMMISSIONERS. 

Commissioners and set at rest by one or more decisions. That this plea of res ad- 
judicata had no application to the controversy, nor is it true "that the subject 
brought forward in the complaint had been repeatedly considered by this Board." 

That in its answer the plaintiff submitted and filed a schedule of the earnings and 
cost of operation of some, not all, of its several passenger trains, for the months of No- 
vember and December, 1897, and January, 1898, but it failed to call attention to the 
fact, that the said schedule did not include the total receipts of tlie said passenger 
trains, as they earned a revenue from mail, express and baggage, not included in said 
schedule, and that the pretended expenses of passenger trains were not such expenses 
at all but the expenses of passenger and freight trains together. That the plaintiff 
in its said answer undertook to set out its receipts from passengers, per passenger 
train mile, and from passenger train service, per passenger train mile, and 
to make a comparison with the cost of operation, not of passenger trains, but of 
freight and passenger trains, without calling attention to this fact. That the said 
comparison is delusive and misleading in the present investigation. Besides, as 
lieretofore expressed, it is insisted by these defendants, that passenger service alone 
should not be considered, but that the inquiry should be whether, under the re- 
duced rates, the plaintiff can make a reasonable profit on its combined freight and 
passenger traffic within the State of. North Carolina. That this view has been 
adopted in all of the calculations wdiich the plaintiff has presented in the bill of 
complaint herein. That the plaintiff's said statistics are made up from the passen- 
ger traffic on the weak and unproductive, branches as well as on the main line, and 
so are valueless as indicating whether or not the plaintiff can stand a reduction of 
its passenger rates upon its main line between Wilmington and Weldon. 

Thirteenth. That "Exhibit C.'' which is attached to the said answer, and which 
undertakes to give certain percentages of profit, is misleading in the following par- 
ticulars : The item, " Earnings intrastate freight and passenger $506,824.69" is in- 
correct. The gross receipts of the company for 1896 and 1897, as reported by it, 
were : 

Gross earnings from operation ^ $1, 874,813.65 

Miscellaneous income, less expenses 34, 225. 78 

Total . 1,909,039.43 

The plaintiff avers that the domestic receipts are one-third of the whole. This 
w^ould be $636,346.47 instead of $506,824.69, as stated by the plaintiff in said " Ex- 
hibit C." 

It is supposed, however, that the plaintiff has included in its estimate of intra- 
state receipts only 20 per cent of mail, express and baggage, amounting to $165,. 
721.96. 20 per cent of which is $33,144.39. which is to be added to one-third of the 
remainder of the total receipts, after deducting receipts from mail, express and 
baggage. 

Total receipts as above $1,909,039.43 

Deduct receipts from mail, express and baggage - 165, 721. 92 

Leaving 1, 743, 317. 51 

One-third of which, instead of $506, 824.69, is 581, 105. 83 

Add 20 per cent of $165, 721 . 96 as above 33, 144. 39 

614, 250. 22 



COMPLAINTS AND DECISIONS. 811 

From this the plaintiff deducts one-third of expenses and 
taxes, $377,596.70, when he should only deduct that pro- 
portion of the expenses and taxes which, $506, 824. 69, intra- 
state freight and passenger earnings, bears to $1,909,039.43, 
the total gross earnings. This percentage is 36. 5. The 
total expenses and taxes is reported by the plaintiff in its 
printed report of 1897 as $1,132,790.11, 26,5 per cent of 
which is the proper proportion to be deducted from the 
intrastate freight and passenger earnings, or 300,189.37 

Instead of . 129, 227. 99 

The remainder is net balance of intrastate profits 314, 060. 85 

This balance is 5.71 per cent on the assessed tax value of 1897 of $5,498,955.00, and 
it is 21.5 per cent of the proportion of the assessed value which is to be deemed as 
appropriated to intrastate business. This proportion is 26.5 per cent of $5,498,- 
955.00, or $1,457,223.07. If the plaintiff's property be valued at $10,000,000.00, an 
extreme figure, the percentage will be 11.8 per cent, wliich affords an ample margin 
for the slight reduction involved in the proposed passenger rates. 

The second calculation in " Exhibit C " is equally erroneous. 
Substitute for " earnings $506,824.69, ''the earnings as dem- 
onstrated above to be correct according to the plaintiff's 
method, namely $614,250.22 

And deduct not 70 per cent thereof, as cost of operation, but 
the percentage of expenses to earnings represented by the 
plaintiff in the printed report of 1897, (p. 53). namely, 58 
per cent thereof 356, 265. 12 

257,985.10 
Deduct 26. 5 per cent of taxes, $43, 949. 13 11, 646. 51 

246, 344. 59 ^ 
Deducting from this one-third of interest on funded debt, 

(plaintiff's figures) 88, 545. 63 

The property of which is disputed, there remains 157, 798. 96 

Which is 5. 25 per cent of the capital stock of 3, 000, 000. 00 

If from the $157, 798. 96 be deducted the amount involved in 
the change of rates as appears by " Exhibit A *' to this an- 
swer 30, 577. 05 

There remains, net profit from intrastate traffic 127,221.91 

Which is 16 per cent on $795,000.00, the proportion of the 
stock, the premiums on which should be paid by intrastate 

profits. This proportion is 26 . 5 per cent of 3, 000, 000. 00 

The proper deduction from .... 246, 344. 59 

Is not one-third, but 26.5 per cent of the interest on funded 
debt, special trust certificates and equipment notes, total, 
$253,136.88. 26.5 per cent of which is 67,081.27 

Remainder 179, 263. 32 

From this deduct amount involved in change of rates 30, 577. 05 

There remains net profit 148, 686. 27 



312 BOARD OF RAILROAD COMMISSIONERS. 

From this deduct 26.5 per cent of interest on certificates of 

indebtedness, ($175. 000. 00) $46, 375. 00 

And there remains subject to dividends upon stock 102,811.27 

This is 12.8 per cent of $795,000.00, the proportion of the stock which should be 
paid by intrastate profits, that is 26.5 per cent of $3,000,000.00, or $795,000.00. . 

It is submitted, therefore, that no dependence can be placed upon the calculations 
and estimates of '■ Exhibit C " of the answer. 

Fourteenth. That in the several investigations and inquiries by these defendants, 
Commissioners, the State was represented by counsel, who, for the first time, pre- 
sented the view of the Nebraska decree set forth in the complaint, which, upon full 
argument, was adopted by these defendants. That the said counsel cross-examined 
the witnesses for the railroad companies, and brought out facts germane to the in- 
quiry hitherto unknown to these defendants. That the railroad companies were 
required to make additional reports for the first three months of 1898, separating 
and distinguishing between interstate and intrastate passenger and freight receipts. 
That such report by the plaintiff herein showed an increase of receipts over its en- 
tire line for the year 1896 and 1897 of 17.2 per cent. That this report has since been 
confirmed by the annual report of the fiscal year of 1897 and 1898, ending June 80, 
1898, which shows the enormous increase of net income from operation of the plain- 
tiff from. $820,198.45 in 1897 to $991,399.47 in 1898, being an increase of 20.9 per cent. 
That on the final argument before these defendants, the printed report of the plain- 
tiff of 1897 was dissected, and it was demonstrated to the satisfaction of the de- 
fendants, Commissioners, that the plaintiff could well stand the proposed reduction 
of passenger rates upon the most prosperous portion of its road, to- wit. its main line 
between Wilmington and Weldon. 

Fifteenth. That it was made to appear to these defendants, Commissioners, and 
is a fact that the plaintiff's net earnings from operation have been gradually in- 
creasing since the year 1882. That 

In 1882-*8 they were $195, 880 

1888-'4 they were 294, 613 

1884-'5 they were 373, 141 

1885-'6 they were 874,100 

1886-7 they were ' 878,312 

1887-"8 they were 548, 129 

l888-'9 they were 460, 315 

1889-'90 they were 669,715 

1890-'l they were • 680, 036 

1891-2 they were 647, 126 

1892-'3 they were 672, 639 

1893-'4 they were 689, 225 

1894-'5 they were - . 653, 522 

1895'-6 they were 735, 990 

1896-'7 they were 820, 198 

1897-'8 they were : 991 , 399 

That if the plaintiff's net earnings shall continue to increase in the same ratio, in 
another decade the net increase of this corporation will exceed $2,000,000.00. That 
it is inconceivable that the plaintiff can not survive a reduction of rates, which will 
take from such annual revenues the pitiful sum of less than $80,577.05. (See " Ex- 
hibit A " attached to this answer) . 



COMPLAINTS AND DECISIONS. :)13 

Sixteenth. In view of all these things, it was deemed that there was such a dif- 
ference in the conditions and circumstances of the case as to warrant a change of 
opinion on the part of the Commission, and the granting of the prayer of tlie com- 
plaint in the case against plaintiff. That the following is a copy of the order which 
was made on July 13, 1898 : 

'• On and after the 13th day of August, 1S98, the maximum charge for the trans- 
portation of passengers over the Wilmington and Weldon Railroad shall not exceed 
2% cents per mile for first-class tickets and 2 cents per mile for second-class 
tickets." 

Seventeenth. That after the bill of complaint herein was served upon and read by 
the several members of the Board of Railroad Commissioners, it was ascertained 
that a clerical mistake had been made in drafting the said order of July 13, 1898, 
which made it susceptible, perhaps, to the construction placed upon it by the plain- 
tiff herein, although from the whole course of the testimony and the argument of the 
counsel for the State and of the plaintiff herein, it was understood by the said plaintiff, 
that the proposed reduction of domestic passenger rates was to affect only its main 
line from Wilmington to Weldon. That during the investigation before the defend- 
ants the plaintiff was required to furnish, and did furnish, a report, distinguishing 
between intrastate and interstate traffic on such main line, but on none of its 
branches. That among other things it was stated in the said complaint : 

'•According to its reports for 1897, presented to the Railroad Commission, it op- 
erated under the title of the Wilmington and Weldon Railroad Company, the Wil- 
mington and Weldon Railroad proper, the Wilson Branch, the Scotland Neck 
Branch, the Washington Branch, the Nashville Branch, the Clinton Branch, the 
Midland Branch, the Tarboro Branch, and spurs to the mills and factories. The 
last six branches and the spurs liave an aggregate mileage of 243.30 out of the total 
mileage of 520.95. None of these branches, with the exception of the Wilson 
Branch, are very prosperous. By consolidating the report of operation of the Wil- 
mington and Weldon Railroad Company proper, with the reports of operation of all 
these branches, the profits of that company have been apparently reduced in the 
general average, and do not appear as large as they really are. In fact, it is impos- 
sible to tell- from the reports filed, what are the receipts and expenses of the Wil- 
mington and Weldon Railroad proper. It is conceived that there is a larger per- 
centage of profit made by this company ujjon its main line, than upon any of its 
branches, except, perhaps, the Wilson Branch. This railroad company reported 
in 1897, from all operations of its main line and branches, the gross earnings of 

$1,874,813.65 
Less operating expenses 1 , 088, 840. 98 

Income from operation 785, 972. 67 

Less taxes 43,949.13 

Net income from operations in North Carolina 742, 023. 44 

" The property of this road and i^ts branches was assessed for taxation in 1887 at the 
aggregate sum of $5,498,955.00 which the company insisted was an excessive valua- 
tion, so that, notwithstanding the account is loaded down with the affairs of un- 
profitable branches, this company made a net profit of 13.4 per cent upon the 
assessed valuation of the said property. 

'• It is conceived that if the plaintiff had filed a full report of the operation of its 
railroad separate and distinct from that of its branches, particular data would have 
been furnished sufficient to demonstrate that it is one of the most prosperous roads 



314 BOARD OF RAILROAD COMMISSIONERS. 

in the State and well able to stand the proposed reduction of its domestic passenger 
fares." 

That this, in connection with the protest of the complainant in its answer to said 
complaint, that it would be impracticable and unjust to separate the earnings and 
expenses of the main line from those of its branches, and the denial of the plaintiff 
that a full report of the operations of the main line separate and distinct from that 
of its branches, would demonstrate that it is well able to stand the reduction of its 
domestic passenger fares contended for, (that is. upon its main line between Wil- 
mington and Weldon) shows clearly that the complainant knew full well the scope 
of the prayer of the complaint, and the purpose and intent of the defendants in 
granting it. That in order to correct any misapprehension, real or otherwise of the 
said plaintiff, in respect to the said order, these defendants, on September 30, 1898, 
passed the following order : 

"Whereas, on July 18, 1898, the following order was made: 

ORDER No. 98. 

"On and after the 13th day of August, 1898, the maximum charge for the trans- 
portation of passengers over the Wilmington and Weldon Railroad shall not 
exceed 2>^ cents per mile for first-class tickets, and 2 cents per mile for second- 
class tickets; and, 

" Whereas, it was intended by the words ' Wilmington and Weldon Railroad' 
in said order to refer to the Wilmington and Weldon Railroad between Wil- 
mington and W^eldon ; and, 

"Whereas, by one construction of the order as inadvertently drawn, it may 
be supposed that it was intended that the reduction should extend to the 
branches of the said road as well. 

'\Now, therefore, it is ordered that the said order be amended so as to read as 
follows: 

ORDER No. 98. 

'On and after the loth day of August, 1898, the niaxinium charge for the trans- 
portation of intrastate passengers over the Wilmington and Weldon Railroad, 
on the main line between Wilmington and Weldon, shall not exceed 2;^ cents 
per mile for first-class tickets and 2 cents per mile for second-class tickets." 

Eighteenth. That these defendants have been informed and believe that it was 
reasonably apprehended that the right of the Board to make the proposed reduction 
would be challenged in the courts by the plaintiff, and it was desired that a case 
might be presented upon the strongest and most prosperous line of each of the 
great systems of railroads which operate in this State, not only to have the Nebraska 
decision construed by the courts and to have the powers and duties of the said Com- 
missioners defined in order that they might hereafter act up to the full measure 
thereof, but to reduce the passenger fares of the railroad companies named because 
they were unreasonable, and because the said companies were abundantly able to 
stand the proposed reduction. 

Nineteenth. That, whatever may have been the purpose in filing the said com- 
plaints, it was not the purpose of these defendants. Commissioners, in granting the 
prayer of the complaint against the plaintiff herein to simply make a test case, but 
that their action was based upon the law and the facts as they were understood by 
them, and upon the conviction that the plaintiff, upon the main line of the Wil- 
mington and Weldon, was making a larger profit than any other railroad company 
in North Carolina. That the said reduction was made by these defendants in per- 



COMPLAINTS AND DECISIONS. 815 

feet good faith, and with no purpose or intent to discriminate against it in the 
slightest degree. 

Twentieth. That it is true, as shown from tlie rejjorts filed Ijy the said three railroad 
companies in the year 1897 before the said Railroad Commission, that the total gross 
receipts from operation of the Wilmington and Weldon Railroad Company were 
$1,874,813.65; of the North Carolina Railroad Company $1,592,217.98; and of the 
Raleigh and Gaston Railroad Company $002,304.23 ; the total receipts from passen- 
ger service of the Wilmington and Weldon Railroad Company, as shown by the 
same report, was $590,494.76; of the North Carolina Railroad Company $636,861.05, 
and of the Raleigh and Gaston Railroad Company $142,636.84. That the total mileage 
of the said companies is as follows: the Wilmington and Weldon Railroad Company 
610 miles, the North Carolina Railroad Company 221.65 miles, the Raleigh and Gas- 
ton Railroad Company 107 miles. That the total gross receipts per mile of the said 
three roads are as follows: the Wilmington and Weldon Railroad Company $3,599.53, 
North Carolina Railroad Company $7,122.42, Raleigh and Gaston Railroad Company 
$5,629. That it is also true that the total passenger receipts per mile of the said 
three railroads were as follows : the Wilmington and Weldon Railroad Company 
$1,133.71, North Carolina Railroad Company $2,848.81. and the Raleigh and Gaston 
Railroad Company $1,333.00. 

That it is not true that the said railroads are in as prosperous a condition as is the 
plaintiff, or that they are now run and operated under substantially the same con- 
ditions and circumstances, or that the defendants have unlawfully discriminated 
against the plaintiff, or denied to it the equal protection of the laws in reducing its 
rates and refusing to reduce them on the said North Carolina Railroad Company. 

Twenty-first. That a comparison of the gross receipts of the Wilmington and 
Weldon Railroad Company, and of the passenger receipts of the Wilmington and 
Weldon Railroad Company for the year 1897, with such receipts of tlie North Caro- 
lina Railroad Company and the Raleigh and Gaston Railroad Company, are mis- 
leading and deceptive. That in this investigation we have to deal with , not the 
total gross receipts of the Wilmington and Weldon Railroad Compan}^ or the total 
receipts from passenger services of the said road, including all of its Ijranches. with 
a total mileage of 610 miles, but with the freight and passenger receipts of the main 
line of the said railroad, 161 miles in length, located with the most populous city in 
the State as one of its termini, and running through a fertile and populous coun- 
try. That for the purposes of this investigation it is unfair to consolidate and con- 
fuse the receipts and disbursements of the Wilmington and Weldon Railroad 
proper, to-wit, its main line between Wilmington and Weldon. which is prosperous 
and remunerative, with the accounts of receipts and disbursements of its weak and 
unprofitable branches. 

Twenty-second. That, as appears by the printed reports of 1897. made to the 
Board of Railroad Commissioners by the railroad companies, the net earnings from 

operation of the North Carolina Railroad Company were $443,445.34 

The net earnings from operation of the Raleigh and Gaston 

Railroad Company for the same year were 220, 024. 40 

The net earnings from operation of the Wilmington and Wel- 
don Railroad Company for the same year were 785, 972. 67 

The same railroad companies were assessed for taxation for the same year as fol- 
lows : 



316 BOARD OF RAILROAD COMMISSIONERS. 

North Carolina Railroad Company at |8, 117, 238. 00 

Raleigh and Gaston Railroad Company at 1, 562, 158. 82 

Wilmington and Weldon Railroad Company at 5, 498, 955. 00 

Per cent. 
The net earnings of the North Carolina Railroad Company 

were, of its tax valuation 14.2 

The net earnings of the Raleigh and Gaston Railroad Com- 
pany were, of its tax valuation 14.1 

The net earnings of the Wihnington and Weldon Railroad 

Company were, of its tax valuation 14. 8 

That as appears by the printed reports of 1898, made to the Board of Railroad 

Commissioners by the railroad companies, the net earnings from operation of the 

North Carolina Railroad Company were |419, 279. 26 

The net earnings from operation of the Raleigh and Gaston 

Railroad Company for the same year were 284, 087. 64 

The net earnings from operation of the Wilmington and Wel- 
don Railroad Company for the same year were 959, 598. 72 

The same railroad companies were assessed for taxation for the .same year as fol- 
lows : 

North Carolina Railroad Company at $8, 785, 798. 00 

RalQigh and Gaston Railroad Company at 1. 888, 708. 44 

Wilmington and Weldon Railroad Company at 7, 582, 775. 20 

Per cent. 

The net earnings of tlie North Carolina Railroad Company 

were, of its tax valuation 11.00 

The net earnings of the Raleigh and Gaston Railroad Com- 
pany were, of its tax valuation 12. 88 

The net earnings of the Wilmington and Weldon Railroad 

Company were, of its tax valuation . : _ _ 12. 65 

That these large profits were made on plaintiff's entire system of roads in North 
Carolina, including the Newbern Branch, whicli is operated at a dead loss, and 
other branches which are operated at a nominal profit, making it necessary for the 
plaintiff's main line to earn an excessive percentage of profit, in order to make such 
an average showing for its whole mileage in North Carolina as is herein set forth. 

Twenty-third. That according to the plaintiff's printed report of 1897, the per- 
centage of expenses to earnings of its entire line, including its branches, was 58 per 
cent, while that of the Raleigh and Gaston Railroad Company was 63.4 per cent, 
and of the North Carolina Railroad Company was 72. 15 per cent. These defendants 
are informed and believe, and so aver, that if the plaintiff had filed a full report of 
the operation of its railroad betw^een Wilmington and Weldon,- separate and dis- 
tinct from that of its branches, it would show a percentage of net profit from opera- 
tion twice as great as it ^oes, loaded down as it is with the operation of its branches. 
But even thus loaded down, it makes a most favorable comparison with the North 
Carolina Railroad and the Raleigh and Gaston Railroad. 

Twenty-fourth. That as indicating the wonderful prosperity of the plaintiff, in 
the year 1889 it distributed among its stockholders, as a scrip dividend, $2,500,000.00 
of certificates of indebtedness, upon which it is paying 7 per cent interest. That in 
the vear 1890 and 1891 it distributed among its stockholders $3,221,000.00 of stocks 



COMPLAINTS AND DECISIONS. 317 

owned by it in other companies. That notwithstanding the plaintiff's claim that it 
conld not stand the slight reduction involved in the proposed change of its passen- 
ger rates, since the institution of tliis suit it has declared an extra dividend out of 
its surplus earnings of 33>^ per cent. That is to say, to every six shares of its stock 
outstanding, one share of stock in the Atlantic Coast Line of the value of one liun- 
dred dollars and a bond of the Wilmington and Weldon Railroad Company for one 
hundred dollars have been is.sued, aggregating $1,000,000.00. That it has thus, 
within the space of ten years divided among its stockholders, besides the regular 
dividends of 6 and 6}4 per cent upon its capital stock of $3,000,000.00, and the inter- 
est at 7 per cent on its certificates of indebtedness of $2,500,000.00, the ernormous 
aggregate of $6,721,000.00 in securities, representing its earnings and acquisitions. 
That it is incredible, tliat a dimunition of its royal revenues of from $10,000.00 to 
$30,000.00 will forcL^ it into liquidation or amount to a confiscation of its property. 
Twenty-fifth. That in consideration of the foregoing facts, conditions and circum- 
stances, and further in consideration of the fact that the North Carolina Railroad 
Company had, at the instance of the State of North Carolina, acting tlirougli its 
former Governor, leased its line to the Southern Railway Company for ninety-nine 
years at a rental of 63^ per cent on its capital stock and all taxes : and that it did 
not appear to the defendants. Commissioners, that the said lessee company could 
earn from domestic passenger traffic of the North Carolina Railroad as much as Q^ 
per cent on that proportion of its property to be deemed appropriated to intrastate 
traffic, in addition to the taxes, if the complaint against the North Carolina Rail- 
road should be granted, the defendants. Commissioners, refused to reduce the pas- 
senger rates of tlie said North Carolina Railroad Company, and granted the jjrayer 
of the complaint against the plaintiff, believing its rates between Wilmington and 
Weldon were unreasonable, and considering that it was the best able of all the rail- 
road companies in the State to bear this proposed reduction of passenger rates. 

That so far as the Raleigh and Gaston Railread Company is concerned, these de- 
fendants. Commissioners, experienced great difficulty. Tliat it appeared in evidence 
that this company liad endorsed the bonds of the Georgia. Carolina and Northern 
Railway Company to the extent of over $5,000,000.00. and that upon such guarantee 
it had been obliged to pay large sums of money, amounting in the aggregate in the 
last five years to $783,422.16. That during the fiscal year ending June 30, 1898, it 
has paid on this account the sum of $142,406.19, reducing its net earnings to $47,- 
248,03. That the said net earnings were larger than they had been for five years. 
That for five years the said company had not been able to declare a dividend. That 
the Wilmington and Weldon Railroad Company was not thus handicapped. That 
under these circumstances the defendants. Commissioners, felt justified in postpon- 
ing action upon the complaint against the Raleigh and Gaston Railroad Company 
for the present, until its fortunes should mend, and until it should be decided 
whether the construction placed by them upon the Nebraska decision was correct. 
That these defendants felt then, and feel now. that in so doing they have acted 
with perfect fairness to the plaintiff, and that they have made no unju.st discrimi- 
nation between it and any other railroad company in the State. 

Twenty-six. That as the defendants are informed and believe, it is true, as al- 
leged in the seventh paragraph of the bill of complaint, that the mileage of the line 
of railroad owned and operated by the plaintiff in North Carolina is : 



318 BOARD OF RAILROAD COMMISSIONEJRS. 

Miles 

The main line from Wilmington to Weldon. 161. 40 

Tarboro Branch 67.71 

Scotland Neck or Kinston Branch 85. 82 

Midland Branch 21.50 

Wilson and Fayette ville Branch— Short Cut 116. 20 

Nashville Branch ; 19. 20 

Clinton Branch . 13. 43 

Washington Branch 25. 39 

Spurs to Mills and Factories . 10. 20 

520. 85 
Nevvbern Branch (acquired in fall of 1897) 90. 03 

. Total 610. 88 

That these defendants do not know, and can not set forth, as to their belief or 
otherwise, whether or not it is true as alleged, that it cost to construct and equip 
the 520.85 miles above stated, with yards, building ground, station grounds, build- 
ing and terminal facilities $10,802,242.00, or whether it cost to construct and equip 
the Newbern Branch over $2,396,89^.00. That if the Newbern Branch cost this 
amount of money to construct it, it was built with wasteful extravagance. That it 
appears from the reports of the Wilmington, Nevvbern and Norfolk Railroad Com- 
pany, (the Newbern Branch), made to the Board of Railroad Commissioners that 
$2,400,000.00 of its stock and $1,200,000.00 of its bonds were issued to contractors. 
These defendants allege upon information and belief tliat they were issued at 
greatly less than their face value. That, as defendants are informed and believe, 
the plaintitf has recently acquired the said Newbern Branch at the cost of only 
$400,000.00. That as defendants are informed and believe it would now cost to 
construct and equip and replace the lines of railroad of the complainant, exclusive 
of the Newbern Branch, the sum of $8;101,681.74. Bat, as these defendants are ad- 
vised and believe, the mileage of tlie several branches, and the cost of construction 
and equipment of the same are foreign to the question at issue, which is, mainly, 
the fairness of the rate which has been established by the defendants. Commis- 
sioners, upon the plaintiff's main line between Wilmington and Weldon. 

Twenty-seventii. These defendants say that they believe the statements con- 
tained in the seventh paragraph of the said bill of complaint, that the first general 
mortgage of the complainant is $4,000,000. and that the mortgage on tlie Albemarle 
and Raleigh Branch is $500,000, making a total of $4,500,000, and also that the 
special trust certificates of indebtedness amounted to $380,000, making an aggregate 
of $4,880,000. That they believe that the capital stock of the complainants is 
$3,000,000. and that in addition thereto it has outstanding certificates of indebted- 
ness amounting to |2,50Q,000, upon which it is liable for interest at 7 per cent per 
annum, when earned, and that it takes precedence over the payment of any divi- 
dend to any of its stockholders, and that the |380,000 trust certificates debt was 
incurred in procuring a controlling interest in the Northeastern Railroad of South 
Carolina. They do not know, and can not set forth as to their or either of their 
belief or otherwise, whether or not it is true, as alleged, that all of the moneys rep- 
resented by certificates of indebtedness were expended in the construction and 
equipment of the plaintiff *s road. 

Twenty-eighth. That Exhibit No. 4 to the bill of complaint is misleading in 
that— 



COMPLAINTS AND DECISIONS. 319 

1. It does not take into account the item of " miscellaneous income, less expenses, 
$84,225.78," which appears in the plaintiff's annual printed report of 1897. 

2. It adds to the expenses of domestic business 10 per cent, upon the suggestion 
that the cost of conducting the intrastate business is 10 per cent greater than the 
cost of conducting the interstate business. This may be so, although it is not 
admitted ; but the defendants aver that the tariff" of intrastate or local freight 
charges is from one and a-half to twice as great as that of through freight charges. 
That there is not so great a difference between the tariff of intra and interstate 
passenger fares, but, taking both together, it is safe to say that the charges 
upon intrastate business are more than 33^ per cent higher than the charge upon 
interstate business. This being so, in arriving at the net profit on intrastate busi- 
ness it is not fair to deduct 10 per cent increase of expenses without adding 33^ per 
cent for tlie difference of profit between the two classes of business, so that, instead 
of adding 10 per cent to expenses, 23.33 per cent should be deducted therefrom. 

The statement will then stand as follows : 

Gross earnings from operation (plaintiff 's figures) $1, 874, 813. 65 

Of which domestic business furnishes 32.8 per cent, or (plain- 
tiff 's figures) 614,938.87 

Expenses of operation were $1,088,840.98, of 

which 32.8 per cent is (plaintiff's figures) __ $357, 139.84 

Less 23.33 percent, as above 83,320.72 273,819.12 

Remainder 341 , 119. 75 

Less 32.8 per cent of taxes (plaintiff 's figures) 14, 315. 25 

Remainder, representing net profit from domestic business, 

before the reduction of rates 326, 804. 50 

3. The plaintiff makes the mistake of calculating the percentage of the net profit 
from domestic business upon the entire valuation of the plaintiff' *s property. This 
calculation should be made upon that proportion of such valuation as may be 
deemed appropriated for this purpose to domestic business— that is, to that propor- 
tion of such valuation as the volume of domestic business bears to the entire volume 
of domestic and foreign business. The plaintiff has ascertained this proportion to 
be 32.8 per cent. This proportion is accepted by the defendants, pro hac vice. 
Upon this basis the proportion of the said valuations will be as follows : 

(1) Of the tax valuation of 1897, $5,498,955.00. 32.8 per 

cent is $1, 803, 657. 24 

(2) Of the tax valuation of 1898, $7,582,775.20, 32.8 per 

cent is 2, 487, 150. 26 

(3) Of the cost of road, $10,802,242.00 (plaintiff's figures) 

32.8 per cent is 3,543, 135.37 

(4) Of the cost of repi eduction, $10,292,000 (plaintiff's fig- 

ures), 32.8 per cent is 3,375,776.00 

Of these several amounts, $326,840.50, the net profit from domestic business is 
the following per cent : 

Per cent. 

(1) Of $1,803,657.24 it is 18.1 

(2) Of $2,487,150.26 it is 18.1 

(8) Of $8,643,135.37 it is. 9.2 

(4) Of $3,375,776.00 it is 9.67 



820 BOARD OF RAILROAD COMMISSIONERS. 

The plaintiff fails in this connection to make the only calculation which will be 
of any benefit to the court in solving the problem before it. The amount involved 
in the proposed reduction should be carefully estimated and deducted from the total 
net receipts from intrastate business, as above, $326,840.50. 

The amount so involved had been reached in defendants' Ex- 
hibit A, hereto annexed, and is _.. $30,577.50 

If calculated on the supposition that the reduction applied 
to the entire mileage of the plaintiff in this State; but as 
the mileage of the main line from Wilmington to Weldon 
is the only part affected, the amount involved in the reduc- 
tion can not exceed $10,000. Waiving this, however, for 
the present, the amount ascertained, $30,577.50. can not be 
far wrong, because plaintiff's Exhibit No. 5 shows the 
domestic passenger business, as taken from a special report 
for one quarter, to be 56, 184. 75 

Four times this amount will give a close approximation of 
the domestic passenger business for a year 224, 739. 00 

The Annual Report of 1898 shows that the receipts the first 
three months of this year are a fair index to the receipts 
of the entire fiscal vear, because it shows that the total 
receipts from all sources are but slightly in excess of four 
times the receipts for the first quarter as taken from the 
special report. The plaintiff admits, on page 17 of the 
printed bill of complaint, that the reduction in passenger 
rates vvill cause a diminution in passenger receipts of but 
20 per cent, which of $224,739.00 is 44, 947. 80 

But these defendants claim that in view of the fact that at 
least one-third of the passenger receipts of the plaintiff 
are derived from mileage tickets at 2 and 2]/^ cents per 
mile, excursion and ministers' and other rates, which are 
less, than 2 cents per mile, all of which are voluntarily 
fixed by the plaintiff and none of wdiich will be affected 
by the proposed reduction to 2% cents per mile for first- 
class passengers, the proposed reduction will not amount 
to more than one- third of the average nominal reduction 
of 25 per cent or 16^ per cent of the present domestic 
passenger receipts. The amount involved in the reduction 
would therefore be 16^^ per cent of $224,739.00 (plaintiff's 
figures) , or . . 37, 456. 50 



Deducting from 326, 840. 50 

The amount involved in the proposed reduction of rates 30, 577. 05 



As shown in defendants' Exhibit A, and the remainder 296,263.45 

Is the net profit from intrastate business after the reduction of rates shall have 
been carried into effect. 

This sum, $296,263.45, is, of the several amounts above stated, the following per- 
centages : 



COMPLAINTS AND DECISIONS. Hi^l 

- Per cent. 

(1) Of $l,S08.(r)7.24 it is 16.42 

(2. Of $2,487,150.26 it is 11. iH) 

(8) Of $3,543,155.37 it is 8.35 

(4) Of $3,375,776.00 it is 8.75 

Wiien United States 4 per cent bonds are worth 120. North Carolina 4 per cent 
bonds 102, and the stocks of any railroad iti the conntry which pays a 4 per cent 
dividend is worth par on the stock exchanges of the country, these defendants insist 
that the courts ought not to declare that the profits, wliich the plaintiff is per- 
mitted to receive under the reduced rates, are unreasonably low. or that they 
amount to a confiscation of its property. 

5. The defendants are advised and believe that in determining the question of 
reasonableness of rates the fixed charges are not to be considered, because the fixed 
charges represent interest on the bonded indebtedness, the proceeds of which were 
expended in the construction of the road, and which are considered m the estimate 
of percentage on valuation, or on cost of road, or on reproduction as above. But 
even making the d.eduction claimed on account of fixed charges, the net profit 
from intrastate business, after reduction of rates shall have be'^n carried into effect, 
is as follows : 

Net profit from domestic business after reduction of passen- 
ger rates, as above - - $296, 349. 36 

Deduct 32.8 per cent of fixed charges (plaititifi"s figures) _- 87,128.89 

Remainder 209. 220. 47 

This sum, $209,220.47. is, of the several amounts above stated, the following per 
cent : 

Per ceut. 

(1) Of $1,803,657.24 it is 11.59 

(2) Of 2,487,150.26 it is , .8.41 

(3) Of 3,543,115.37 it is 5.91 

(4) Of 3,375.776.00 it is 6.19 

(5) Of 1.804.000.00 (which is 32. S per cent of $2,500,000 cer- 

tificates of indebtedness and $3,000,000 of stock. 
• total $5,500,000), it is 11.56 

6. The amount of net profit from intrastate business may be reached in another 
way. 

The plaintiff in its report of 1898 represents that the per- 
centage of expenses to earnings on entire line is 56.4 per 
cent. The plaintiff says in Exhibit No. 4 that the gross 

earnings from domestic business is $614, 928. 87 

So the net earnings from domestic business is 56.4 per cent 

of this amount, or 346,819.88 

Which is within $10,000 of the foregoing corrected estimate of such net earnings 
without adding the difference between 10 per cent increase of expenses and 33i^ 
per cent excess of profit on domestic business. Should this difference be added, 
the amount of net profit upon domestic business would be considerably increased. 
Twenty-ninth. That it is not true, as alleged in the seventh paragraph of the 

1 21 



322 BOARD OF RAILROAD COMMISSIONERS. 

bill of complaint, that a proposed reduction of rates will, in any manner or to any 
extent, affect the plaintiff's interstate passenger rates, especially in view of the fact 
that the reduction will affect only the rates on the line between Wilmington and 
Weldon. whereas the very large proportion of the through traffic of the plaintiff is 
over what is known as the Wilson short-cut, from Wilson to the South Carolina line. 
That the calculation on page fifteen of the printed bill of complaint is incorrect 
and misleading, for that 

(1) It takes no account of miscellaneous income .$31,805.75. which appears in the 
plaintiff's annual report of 1898. 

(2) It adds only 20 per cent of mail, express and miscellaneous receipts, whereas 
a much larger proportion thereof should be considered in arriving at profit from 
Intrastate business. 

(3) For the reasons stated above, the expenses, $409,154, 74, instead of being 
increased ten per cent on account of increased expenses of intrastate traffic, should 
be diminished 23^3 per cent on account of the larger profits of such business. 

This will make the proportionate difference as was shown in the former calcula- 
tion, thus : 

From domestic passenger and freight receipts (plaintiff's 

figures) $708,114.72 

Deduct 32.8 per cent of operating expenses, said to be $1,247,- 
423.80 (plaintiff's figures) ..... $409, 154. 74 

Less 23^ per cent thereof 95, 469 . 43 313, 685. 31 

Remainder 394, 429 . 41 

Less 32.8 per cent of taxes (plaintiff's figures) 18, 315. 66 

Net receipts from intrastate or domestic business before the 

reduction of passenger rates 376, 113. 75 

instead of $239,728.88 (plaintiff"s figures). 
(4) The plaintiff should deduct from net receipts from intra- 
state business as above 376, 113. 75 

the amount involved in the reduction of passenger rates. 
According to plaintiff's own showing, as stated above, this 
is 20 per cent (see bill of complaint, p. 17) of four times the 
intrastate passenger receipts for the first quarter of 1898. 
, or $224,739.00, say . 44,947.80 



Net profits from domestic business 331 ,165. 95 

(The true amount to be deducted, as shown in Exhibit A hereto annexed, is 
$30,577.50, instead of $44,947.80, considering the reduction as applying to the plain- 
tiff's total mileage, but only $10,000 if the order is confined to the line between Wil- 
midgton and Weldon.) 

This sum, $331,165.95 is, of the several amounts above stated, the following per- 
centages : 



COMPLAINTS AND DECISIONS. 823 



Per cent. 

(1) Of $1,803,657.24 it is l«.;3r) 

(3) Of 2,487,150.26 it is 18.31 

(3) Of 3,543,115.37 it is 9.34 

(4) Of 3,375.776 it is 9.80 

(5) Of 4,329,317.26,- which is 32.6 per cent of $13,199,138, 

cost of road including Newbern Branch, as claimed by 

plaintiff, it is 7 . (55 

Now if from net profits from domestic business (as above) 
$331,165,95 we deduct 32.8 per cent of fixed charges (plain- 
tiffs figures) $87, 828. 89 



Tiie remainder 244, 037. 06 

is, of the several amounts above stated, the following per- 
centages : 

Per cent. 

(1) Of $1,803,657.24 it is 13.52 

(2) Of 2,487,150.26 it is 9.81 

(3) Of 3,543,115.37 it is .6.88 

(4) Of 3,375,776.00 it is 7.22 

(5) Of 4,329,317.26 it is 5.63 

(6) Of 984,000,000 (which is 32.8 per cent of the capital 

stock of $3,000,000 of the company) it is 24. 80 

But, adopting the erroneous net profit from intrastate busi- 
ness, as stated by the plaintiff on page 15 of its bill of com- 
plaint $239, 728. 85 

Deducting from it the amount involved in the reduction as 
above . 30, 577. 05 



The remainder is, according to plaintiff, the net profit for 
domestic business after the reduction of passenger fares .. 209, 151.80 

It will be found that upon the several amounts above stated as the proper propor- 
tion of valuation to be deemed appropriated to the intrastate business, the said sum, 
$209,151.80. is the following percentages : 

(1 ) Of $ 1 ,803,657.24 it is 

(2) Of 2,487.150.26 it is 

(3) Of 3,543,115.37 it is 

(4) Of 3,375,776.00 it is 

(5) Of 4,329,317.26 it is 

If from the net profits as above 

there should be deducted 32.8 per cent of fixed charges 
(plaintiff's figures) 

The remainder . 122, 022. 91 

will afford a dividend on |984,000, the proportion of the capital stock which 
should be paid by intrastate profit, as above, of 12.40 per cent. 

Twenty-ninth. The defendants annex to this answer as Exhibit A, and pray that 
it may be taken as a part hereof, a carefully prepared statement, showing from the 
data furnished by the plaintiff the effect upon its business of the proposed reduc- 
tion, and that it will still be able to maintain its large percentage of profits upon its 







Per cent, 






11.58 






8.40 






5.90 






6.19 






4.83 


$• 


209, 


,151.80 




87, 


,126.89 



324 BOARD OF RAILROAD COMMISSIONERS. 

whole line, although the reduction affects only the local passenger business upon 
that portion of its line located between Wilmington and Weldon. That in this 
exhibit it has been found that the amount involved in the reduction of rates is 
130,577.05, But this is upon the assumption that the rate applied to all the lines 
and branches of the railroad company, whereas it applies only to 161.610 or %. of its 
entire mileage. So that the amount involved in the said reduction will not exceed 
one-third of $30,577.05, or in round numbers $10,000. a mere bagatelle. By this 
statement (Exhioit A) it appears that the reduction of rates will not materiall}' 
affect the princely revenues of this corporation, whose stock, as defendants are 
informed and believe, can not be purchased at two hundred dollars a sliare. 

Thirtieth. These defendants do not know, and can not set forth as to their belief 
oi* otherwse wliether or not it is a fact, as alleged in tlie eleventh paragrai)li of the 
said bill of complaint, that Exhibit 8, annexed thereto, which purports to show the 
earnings and cost of operation of the plaintiff's several passenger trains respectively 
for the months of November and December, 1897, and January. 1898, is correct. 
But tliese defendants deny that the reduction asked for in the governor's complaint 
will cause the passenger trains of the plaintiff's line of railroad to be operated at 
a loss, either with or without the interstate business, and they deny that the pas- 
senger trains of the plaintiff's main line have been operated a loss either with or 
without said business. 

Thirty first. These defendants say that they do not know, and can not set forth, 
as to their belief or otherwise, whether or not the earnings and expenses at the pres- 
ent rate of fares of the passenger trains of the complainant, for the year 1896 and 
1897, are truly set forth in Exhibit No. 8 to the bill of complaint. That the 
statement, that the operating expenses per train mile for 1896 were 85 cents, and 
for 1897 86 cents, which, in the connection in which they appear, refer to pas- 
senger train service, is untrue and misleading. That it appears from the printed 
report of the said complainant, made each year to the Board of Commissioners, that 
the operating expenses per train mile set forth therein are for all trains, both pas- 
senger and freight, without distinguishing one from the other. Tliat it is impossi- 
ble to determine the expenses of passenger and freight trains separately, because 
there are so many expenses which must be apportioned between them by arbitrary 
and unsatisfactory rules. That the said plaintiff' has never attempted, in any of its 
reports, to make such apportionment. 

Thirty-second. Tlie defendants say that it is untrue, as stated in the twelfth 
paragraph of the bill of (-oinplaint. that the fares proposed in the said order of the 
defendants. Commissioners, are unjust or unreasonable, or unreasonably low, or 
that its enforcement will deny to tlie plaintiff due process of law or the equal pro- 
tection of the laws, or that its enforcement will be a confiscation of property, or 
that it w^ill be in violation of the Fourteenth Amendment of the Constitution of the 
United States. Nor is it true that the enforcement of the said order will cause 
them heavy dimunition of the plaintiff''s earnings and revenue. 

Thirty-third. That it is not true that the proposed reduction of passenger rates 
will reduce tlie income of the plaintiff in any degree. That the increased revenues 
which will follow the abolishment of free passes through the action of these defend- 
ants, and the increase of travel, which always follow^sa reduction of rates, will soon 
more than make up the comparatively insignificant amount involved in the said re- 
duction. 

All of which matters and things these defendants are ready and willing to aver, 
maintain and prove, as this Honorable C jurt shall direct, and they humbly pray to 



COMPLAINTS AND DECISIONS. )>25 

be lience dismissed with their reasonable costs and (diaries in this belialf most 

wrongfully sustained. 

JOHN W. HINSDALE. 

EDWARDS & ROYSTEK. 

CHAS. A. COOKE. 

W. C. DOUGLASS. 

Solicitors for Defendants. 

STATE OF NORTH CAROLINA- 
COUNTY OF IREDKLL. 

L C. Caldwell, one of the above-named defendants, being duly sworn, says that 
he has read the foregoing answer subscribed by him. and knows tlie contents thereof, 
and that the same is true to his own knowledge, except as to matters therein stated 
upon information and belief, and as to those matters he believes it to be true. 

L. C. CALDWELL. 

Subscribed and sworn b_Morc me tliis '-38rd day of November, 1898. 

C. H. ARMFIELD. 

Notary Public. 
[Notarial Seal.] 



EXHIBIT " A." 

I. 

THE GROSS RECEIPTS FROM ALL SOURCES FOR THE FISCAL Y^EAR 
ENDING JUNE 80. 1898. 

The annual report of the plaintiff for the fiscal year ending June 30. 1898, shows 
the following receipts : 

Total passenger revenue $454, 114. 63 

Mail 109, 495. 38 

Express 73, 485. 21 

Extra baggage and storage 5, 202. 86 

Total freight earnings 1, 494, 267. 20 

Car mileage balance . 2, 546. 05 

Telegraph companies 4, 818. 47 

Rents for tracks, yards and terminals 20, 962. 63 

Other sources 35, 150. 90 

Interest, rents, etc., less expenses |22, 718.09 

Operating hotels, less expenses : . 822. 65 

From lease of the Wilmington, Columbia and 

Augusta Railroad Company, less expenses. . - . 8, 265. 00 31, 805. 75 

Gross receipts 2,231,849.58 



326 BOARD OF RAILROAD COMMISSIONERS. 

II. 

THE GROSS EXPENSES FOR THE SAME TIME. 

The same report shows : 

Operating expenses $ 1 , 240, 450 . 1 1 

Taxes . 62, 750. 06 

1,803,200.17 
III. 

THE NET INCOME FOR THE SAME TIME. 

Gross receipts $2,231,849.58 

Less gross expenses 1, 303, 200. 17 

928,649.41 
IV. 

THE GROSS RECEIPTS FROM INTRASTATE BUSINESS INCLUDING PAS- 
SENGER, FREIGHT, MAIL, EXPRESS,MISCELLANEOUS, ETC., FOR THE 
FISCAL YEAR ENDING JUNE 30. 1898. 

1. The gross intrastate and interstate passenger receipts for 1897-98. 

The report of the plaintiff for the first three months of 1898, 
made to the Board of Railroad Commissioners, shows the in- 
terstate passenger receipts for that time, to have aggregated $82, 717. 72 
added to intrastate passenger receipts for same time, as 
shown in said report 56, 184. 76 

Total 188, 902. 48 



The gross intrastate passenger receipts constitute yf| g ^g 4^ 



5 

8 

or 40.4 per cent of the whole passenger receipts. The total 
passenger receipts, according to the plaintiff's report made 
to the Railroad Commission for the year ending Jnne 30, 
1898, amounted to 454, 114.63 

The gross intrastate passenger receipts for the year were 

therefore 40.4 per of $454,114.63 or 183,462.31 

And the gross interstate passenger receipts were the balance 

of $454, 114.63, or 270, 652. 32 

Making a total of 454, 1 14. 63 

2. The gross intrastate and interstate freight receipts for 1897-98. 
The same report shows : 
The interstate freight receipts for the first three months of 

1898, were 258, 709. 01 

And that the intrastate freight' receipts for the same time 

were . 1 1 0, 597. 85 

369,306.86 



complaijnts and decisions. ?>'27 

The gross intrastate freight receipts for the the year consti- 
tute IH" IM It' or 29.9 per cent of the whole. The total 
freight revenue for the year, according to the plaintiff's 
said annual report amounted to $1,494,267.70 

The gross intrastate freight receipts for the year were there- 
fore 29.9 per cent of $1,494,267.70, or . 446,786.04 

And the gross interstate freight receipts for the same time 

were the balance of $1,494,267.70, or 1,047,481.66 

Making a total of 1.494,267.70 

3. The gross intrastate miscellaneous receipts for the year 1897-98. 
According to the said annual report, the receipts from mail 

for the same time, amounted to $109, 495 . 38 

From express . . 73, 485. 21 

From extra baggage and storage ■ 5, 202 . 86 

From car mileage balance 2, 546. 05 

From telegraph companies 4, 81 8 . 47 

From rents from track, yards and terminals 20, 962. 63 

From other sources 35, 1 50. 90 

From miscellaneous income : 

Interest on rents, etc., less expenses $22, 718. 09 

Operating hotels, less expenses 322.65 

FromleaseofW. C.& A. R. R. less expenses 8,265.00 31,805.75 
Making a total of miscellaneous receipts for 

the year 1897-98, of 283,467.25 

This is to be divided between interstate and intrastate receipts, in the proportion 
which the said interstate and intrastate receipts for the first quarter of the year 
1898, respectively, bear to the total passenger and freight receipts of said quarter. 

The said report for the first three months of 1898 shows the total receipts from 
interstate and intrastate passenger and freight business to have been as follows : 

Interstate freight receipts 1258,709.11 

Interstate passenger receipts 82,717.73 $341,426.74 

Intrastate freight receipts 110, 597. 85 

Intrastate passenger receipts 56,184.75 166,782.60 

Total interstate and intrastate freight and 
passenger receipts for the first three 
months of 1898. 508,209.34 

The proportion of miscellaneous receipts, 
$283,467.25, as above, which is to be deemed 
intrastate receipts, is Iff |f f |J or 

32.8 per cent of $283,467.25, or 92,977.25 

The proportion of the same sum which is to be deemed inter- 
state receipts, is . . 190, 490. oo 

Total 283, 467 . 25 



328 BOARD OF RAILROAD COMMISSIONERS. 

Gross receipts from intrastate business, including passenger, freight, mail, express, 
miscellaneous, etc., for the fiscal year ending June 30, 1898, recapitulated, were as 
follows : 

intrastate passenger receipts, as above $183, 462. 31 

Intrastate freight receipts, as above 446, 786. 04 

Interstate miscellaneous receipts, as above 92, 977. 25 |723, 225 . 60 

Gross receipts from interstate business, including passenger, 
freight, mail, express, miscellaneous, etc.. for the same 
year were as follows : 

Interstate passenger receipts, as above $270,652.32 

Interstate freight receipts, as above 1,047,481.66 

Interstate miscellaneous receipts, as above 190, 490. 00 1 , 508, 623. 98 

Total gross income is _' 2, 231, 849. 58 

The intrastate receipts from all sources are ^ |ff |f|^ |^\ or 32.4 per cent of the 
inter and intrastate receipts from all sources. 

V. 

THE TOTAL NET INCOME FOR THE SAME TIME. 

The said annual report shows total receipts from operation 

for the year 1 897-"8 to have been $2, 200, 043. 83 

To which is to be added '* miscellaneous income " 31, 805. 75 

Making a total of 2,231,849.58 

Less operating expenses $1, 240, 450. 11 

Taxes . 62, 750. 05 1, 303, 200. 17 

Total net income 928, 649. 41 

VI. 

THE TOTAL NET PROFITS OF INTRASTATE BUSINESS FOR THE 

SAME TIME. 

Assuming that the net profits from intrastate business bear the same proportion 
to the gross receipts from intrastate business as the net profits from interstate and 
intrastate business together bear to the gross receipts from interstate and intrastate 
business together, such ratio is « If? |ff ||, or 41.6 per cent. 

Therefore the total net profits on intrastate business are 41.6 per cent of $723,- 
255.60 gross receipts from intrastate traffic as above, or $300,874.32. 

VII. 

THE AMOUNT OF THE REDUCTION CAUSED BY THE PROPOSED RATES. 

The fares were 33^ cents and 2^ cents. They have been reduced to 2^ cents and 
2 cents respectively for first- and second-class. This is a nominal reduction of 
an average of 25 per cent. But the reduction will not affect mileage tickets which 



COMPLAINTS AND DECISIONS. 3^9 

are sold at 2 cents and at 23^ cents a mile for first-class passengers, nor the fares given 
to excursions, fairs, conventions, public meetings, ministers of the gospel, etc., 
which amount in the aggregate to at least one-third of the whole. Therefore the 
proposed rates will make an average reduction of not over two-thirds of 25 per 
cent, or W% per cent. 

The gross intrastate passenger receipts have already been 

found to amount to |188, 462. 31 

IC);.^ per cent of which is 30, 577. 05 

. or the amount involved in the proposed reduction. 

This calculation is based upon the idea that the proposed reduction will apply to 
the domestic passenger receipts of the plaintiff's entire system of this State. This, 
howevei-, is not correct. The reduction only applies to that portion of the line 
between Wilmington and Weldon, whicli is one-fourth of the whole. Taking into 
consideration the larger volume of business on that portion of the line, as compared 
with an equal mileage elsewliere. the amount involved in the said reduction can not 
exceed one-third of $30,577.05 or $10,192.35. But for tlie purposes of this calcula- 
tion the amount involved in the reduction is largely over-estimated at 130.577.05. 

VIII. 

THE NET INTRASTATE RECEIPTS FROM ALL SOURCES— FREIGHT. PAS- 
SENGER AND MISCELLANEOUS— LESS THE AMOUNT INVOLVED IN 
THE PROPOSED REDUCTION. 

The total net profits on intrastate business from all sources 

were, as above $300, 874 . 32 

Deduct the amount of the reduction caused by the proposed 
rates as above • 30, 577. 05 

Balance 270, 297. 27 

IX. 

THE NET INTRASTATE RECEIPTS FROM ALL SOURCES, LESS AMOUNT 
INVOLVED IN THE PROPOSED REDUCTION, AFTER PAYING THEIR 
PROPORTION OF FIXED CHARGES. WILL PAY A DIVIDEND OF 13.5 
PER CENT ON A FAIR PROPORTION OF THE CAPITAL STOCK. 

From net intrastate receipts from all sources, less amount 

involved in the proposed reduction, as ascertained above. - $270, 297. 27 

Deduct 32.4 per cent (which is the proportion which gross 
intrastate receipts from all sources bear to the gross re- 
ceipts from all sources), of the interest on funded debt, 
special trust certificates, equipment notes and certificates 
on indebtedness, called fixed charges (S428, 136. 88) 138, 716. 34 



There remains 131 , 580 . 93 



830 BOARD OF RAILROAD COMMISSIONERS. 

Brought forward,. $131,580.93 

Which is 4.38 per cent on the $8,000,000 capital stock of the 
company. But, as it is expected that the dividend on the 
whole stock shall not be paid out of earnings from domes- 
tic business alone, but out of both domestic and foreign 
or interstate business, the proportion of the capital stock 
upon which such domestic earnings should pay a dividend 
is to the whole as the total intrastate receipts are to the 
total inter and intrastate receipts, or 32.4 per cent. There- 
fore the domestic earnings, when applied to that propor- 
tion of the capital stock (32.4 per cent of $3,000,000, or, 
$972,000.00), w^ll enable the company to pay a dividend 
upon it of . ■ 13.5 percent. 

X. 

THE VALUATION OF THE PROPERTY OF THE COMPLAINANT UPON 
WHICH TO CALCULATE THE PERCENTAGE OF PROFIT. . 

(a) The tax valuation of the plaintiff 's main line and tracks 

as assessed in June, 1897, was (see Railroad Commis- 
sion Report, '97) $5,498,955.00 

(b) Such tax valuation, as assessed in June, 1898, was (see 

Railroad Commission Report, 1898 ; also bill of com- 
plaint, p. 15) 7,582,775.20 

(c) Cost of road to June 30, 1897, (bill of complaint, pp. 

15,38) 10,802,242.32 

(d) Cost of road to June 30, 1898. including Newbern 

Branch, (report of 1898) 11,315,657.32 . 

(e) Cost of reproduction, including Newbern Branch, as 

claimed by plaintiff, (bill of complaint, p. 15) 10, 292, 000. 00 

(f) Cost of reproduction, including the Newbern Branch, as 

estimated by defendants — 

Original cost $10,802,242.32 

Less 25 per cent 2,700,560.58 8,101,681.74 

(g) Capital stock 3, 000,-000. 00 

Funded debt, other than certificates of 

indebtedness issued to stockholders as 

a dividend 5, 380, 000. 00 8, 880, 000. 00 

(h) Capital stock 3,000,000.00 

, Funded debt, other than certificates of 

indebtedness 5,380,000.00 

Certificates of indebtedness issued to stock- 
holders in the nature of dividends 2, 500, 000. 00 10, 880, 000. 00 



COMPLAINTS AND DECISIONS. H31 



XI. 



THE PROPORTION OF THE VALUE OF THE PLAINTIFF'S PROPERTY 
WHICH SHOULD BE CONSIDERED AS APPROPRIATED TO INTRA- 
STATE BUSINESS FOR THE PURPOSE OF CALCULATING THE PER- 
CENTAGE OF PROFIT FROM SUCH BUSINESS. 

The proportion of the total value of the plaintiff's property to be thus appropri- 
ated, is that proportion of its valuation, which the gross annual receipts from intra- 
state revenues bear to the gross annual receipts from all sources. 

It has already been found that tlie gross receipts from intra- 
state business for 1897 and 1898 were (see above) - $723, 225. 60 

The gross annual income from all sources for the same time 

was 2,231,849.50 

The percentage or proportion of the value of the property of the railroad com- 
pany, which is to be deemed as thus appropriated, is ^ ||f fff f^, or 32.4 per cent 
thereof. 

The proportions of the several values of the property of the said railroad com- 
pany, as above estimated, to be deemed appropriated to intrastate business, are as 
follows : 

(a) 32.4 per cent of the tax valuation of 1897, $6,498,955 00, 

or $1, 905, 136. 20 

(b) 32.4 per cent of the tax valuation of 1898, $7,582,775.00, 

or 2, 456, 819. 10 

(c) 32.4 per cent of cost of road to June 30, 1897, $10,802,- 

242. 32, or 3,499,926.51 

(d) 32.4 per cent of cost of road to June 30, 1898. including 

Newbern Branch. $11,315,657.32 3, 666, 272. 97 

(e) 32.4 per cent of cost of reproduction, including Newbern 

Branch as claimed by plaintiff, $10.252,000.00 3,321,648.00 

(f ) 32.4 per cent of cost of reproduction, excluding New^bern 

Branch as claimed by defendants, $8,101.681.74 2, 624, 944. 87 

(g) 32.4 per cent of capital stock and funded debt, exclusive 

of certificates of indebtedness, $8,380,000.00 2,715,120.00 

(h) 32.4 per cent of capital stock, funded debt and certifi- 
cates of indebtedness. $10,880.000.00 . . 3, 525, 120. 00 

XII. 

THE PERCENTAGE OF PROFIT OF NET INCOME FROM INTRASTATE 
BUSINESS AFTER THE REDUCTION UPON VALUE OF THE PLAIN- 
TIFF'S PROPERTY AS ABOVE. 

1. The net profit from intrastate business, after deducting the amount involved in 
the reduction of passenger fares, has been found to be $270,297.20. 

This sum is the following per cent of the following amounts deemed appropriated 
to intrastate business : 

(a) Of the portion of tax valuation of 1897 _ $1 , 905, 136 . 20 



2 r 

1 5 


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2 7 2 9 7 2 
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or 


10. 37 


2 7 2 9 7 2 
2-" 7 1 n T2 on 


or 


9. 95 



88^2 BOARD OF RAILROAD COMMISSIONERS. 



Deemed appropriated to intrastate l)u.siness 
as above, the net profit, $370 397.20. is.. 

(b) Of tax valuation of 1896. it is... 

(c) Of cost of road to June 80. 1897. it is 

(d) Of cost of road to June 30. 1898. including 

Newbern Branch, it is 

(e) Of cost of reproiluction, excluding New- 

bern Branch as clainieil by plaintiff 

(f) Of cost of reproduction, including New- 

bern Branch, estimated by defendant 

(g) Of capital stock and funded debt 

(h) Of capital stock, funded debt and certifi- 
cates of indebtedness ^4U Ul I n or 9. 56 



XIII. 

THE PERCENTAGE OF THE NET INCOME FROM INTR.ASTATE BUSINESS 
AFTER THE REDLXTION IX PASSENGER RATES. UPON THE BASIS 
THAT THE REDUCTION WILL AFFECT ONLY ONE-FOURTH OF THE 
PLAINTIFF'S MILEAGE IN NORTH CAROLINA. 

The percentage of such profit, upon tlie value of the plain- 
tiff's property, has been calculated upon the basis of its 
affecting the plaintiff's entire mileage in this State, and 
U])on this basis tlie amount involved in the reduction has 

been fairly estimated at $80, 577. 05 

It may safely be said, that the amount involved in the reduc- 
tion on the Wilmington and Weldon Railroad between 
Wilmington and Weldon. which is one-fourth of its entire 
mileage in tlie vState, will not exceed one-third of the said 

estimated reduction of ■ . 80, 577. 05 

Or ] 0, 192. 85 

The net intrastate receipts from all sources, as above, are.. 800,674.83 

Deduct amount involved in said reduction 10. 193. 85 

Remainder : 390, 461 . 97 

wliich is the receipts from intrastate business after mak- 
ing the reduction involved in the change of passenger rates 
on the main line between Wilmington and Weldon. 
This sum, $390.46 L97. is the following per cent of the following amounts deemed 
appropriated to intrastate business as above: 

Per cent. 

(a) Of tax valuation of 1897, it is j-lU-UhU or 14. 77 

(b) Of tax valuation of 1898, it is . ^-HMfM^ or 11. 83 

(c) Of cost of road to June 30, 1898, it is HIMIi-fT or ^-39 

(d) Of cost of road to June 30. 1898. including 

Newbern Branch, it is s-fl-Mfi-^T or 8. 74 



'e) Of cost of reproduction, including New 





Per cent. 


or 


8.74 


or 


11.07 


or 


10. 69 



COMPLAINTS AND DECISIONS. 888 

bern Branch, as estimated by plaintiff, 

i-f i„ 2 9(» 4 t! 1 9 7 

(f) Of cost of reproduction, including Nevv- 

bern Branch, as estimated b}^ defendants. 

if ic 2 9 4 6 1 'J 7 

It IS -2 62r?4"4-BT 

(g) Of capital stock and funded debt it is. . . . ^yWHU-U 
(h) . Of capital stock, funded debt and certifi- 
cates of indebtedness, it is si 3 5 f f off^ «i" ^ • ^1 

XIV. 

AFTER PAYING THEIR FAIR PROPORTION OF FIXED CHARGES OUT OF 
NET INTRASTATE PROFITS, THERE REMAINS ENOUGH TO PAY A 
LARGE DIVIDEND ON A FAIR PROPORTION OF THE CAPITAL STOCK. 

The total interest paid in 1896-"7 on mortgage bonds, special 
trust certifLcates and certificates of indebtedness was (see 
printed report of Wilmington and Weldon for 1897, p. 49), |428, 136. 88 

The fair proportion of tliis amount to be paid by profits from 

intrastate business is 82.4 per cent thereof, or 138, 716. 34 

Deduct from the net receipts from intrastate business after 

making the proposed reduction in rates, to- wit . _ 290, 461. 97 

the said fair proportion of $428,136.88! which should be paid 

by intrastate receipts, say 32.4 per cent thereof 138, 716. 34 



The remainder . _ 151 . 74."). 62 

is applicable to the payment of dividends on that propor- 
tion of the capital stock which should be paid by profits 
from intrastate business, that is, 32.4 per cent of total cap- 
ital stock, $3,000,000.00, or 972, 000. 00 

The $151,745.62 (see above) is sufficient to pay a dividend on 
the $972,000.00 (see above) of 15.61 per cent. 

XV. 

ALLOWANCES FOR GREATER COST AND GREATER PROFIT FROM INTRA- 
STATE BUSINESS. 

It will be observed that no account is taken in the foregoing calculations of the 
increased cost intrastate or local business, estimated by the plaintiff at 10 per cent, 
nor of the greater profit arising from such business claimed by the defendants to 
exceed the profit on interstate business by 33^ per cent. The diflerence of 23?.- per 
cent, if considered, would make the percentage of profit upon domestic revenues 
much larger. 

XVI. 

ANNUAL INCREASE OF BUSINESS. 

If the plaintiffs annual revenue shall increase in the future at the same rate it 
has for the last four years, the percentage of profit as estimated above will be 



334 BOARD OF RAILROAD COMMISSIONERS. 

increased at a ratio of 12.9 per cent per annum, and the reduction of rates will be 
more than made up by a single year's increase of profit. 

In 1894-'5 the net income from operation was $653, 522. 00 

1895-"6 735, 990. 00 

1896-7 820, 198. 00 

lS97-'8 991 , 399. 00 

This is an av.erage annual increase of 12.9 per cent. The increase of 1898 over 
1897 was 20.9 per cent. A similar increase for 1899 will cause a corresponding 
increase in the percentage of profit and make the plaintiff better able to stand the 
reduction. 

XVII. 

LARGER PERCENTAGE OF PROFIT ON WILMINGTON AND WELDON 

MAIN LINE. 

If such profits are made on the plaintiff's entire system in North Carolina of 610.88 
miles, embracing such railroads as the Wilmington, Newbern and Norfolk Railroad, 
87 miles long, which 

In 1895 made an actual deficit of $47, 860. 60 

1896 a deficit of 56, 948. 24 

and in 1897 a deficit of. 50, 807. 49 

earning less than operating expenses, it is plain that upon the parent line, the main 
stem, the Wilmington and Weldon Railroad proper, the percentage of profits must 
be enormous; and that tlie comparatively insignificant diminution of its receipts, 
which may be caused by the proposed reduction of passenger fares on its main line, 
will scarcelv be felt bv it. 



PART TWO. 

ASSESSMENT OF RAILROAD PROPERTY, TELEGRAPH, 

STEAMBOAT AND CANAL COMPANIES, 

FOR THE YEAR 1898. 



BOARD OF RAILROAD COMMISSIONERS. 















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STATEMENT A.— Continued. 



Owner 


Kind of Property. 


Total 

Assessed 
Valuation 


Steamboat Property : 






Ch^s Wessell 


One steamboat 


$600.00 


Do - 


do 


500. 00 




. .- do— - 


600. 00 


J. C. Whitty 


do _ 


1 , 000. 00 


Cape Fear River Transportation Co 


Two steamboats, one wharf- 


5,100.00 


J. S. Basnight 


One 


250.00 


S B Sadler F , C. and T. Co 


Canal property 

Five steamers and wharf... 


7,376.00 


Old Dominion Steamship Co 


45, TOO. 00 


J. G&F. ^Vood . 


.. do 


8, 000. 00 


Tar River Oil Co 


One steamer 


2,500.00 


Black River Packet Co _ .. 


— - do 


2,500.00 


C. F. T. and T. Co 


Three steamboats 


2 ^ 500. 00 


Albemarle and Chesapeake Canal Co 


Canal 


100,000.00 
58, 500. 00 


Wilmington Steamship Co 


One steamer and wharf 


W.H Ward 


One steamer 

. - -do — 


500. 00 


Broadus & Ives _ 


800. 00 


J. J. Lassiter _ ._. _ _ 


Two steamers and wharf 

One steamer 


1,550.00 


Moccasin River Steamboat Co . 


1,000.0 > 


Roanoke and Tar River Steamboat Co 


do 


6,461.00 


D. W. Roper & Co 


do 


800.00 


H.G.Wood 


do... 


650.00 


J.W.Harper 


. __.do 


8,000.00 


J.H. Gard and Jno. Thornton 


. ...do 


500.00 


Branning Manufacturing Co 


Three steamers 


7,500.00 


Fairfield and Elizabeth City Trans. Co 


Ooe stearrer 


1,000.00 


Lake Drummond Canal Co 


Canal 


16,000.00 




290, 187. 00 


Newbern and Snow Hill S. B. Co 


Three steamers 


2,550.00 








292,737.00 


Walter Taft 




700.00 




One steamer 




G.C.Hewbett 


500.00 










293,937.00 



ASSESSMENT OF RAILROAD PROPERTY. 
STATEMENT A.— Continued. 



Name. 



Telegraph Companies: 

Western Union Telegraph Co 

Atlantic Postal Telegraph Cable Co 

Carthage Telegraph Line 

Pi (tsboro Telegraph Line 

Louisburg Telegraph Line 

United Telegraph Co 

Cleveland Springs Telegraph Co 

Oak Ridge and Stokesdale Telegraph (^o 

Elizabeth City and Norfolk Telegraph Co 

Lenoir and Blowing Rock Telegraph Co 

Swepsonville Telegraph Line 

Carolina Postal Telegraph Co 

Wilmington and South port Telegraph Co 

Pullman Palace Car Company : 

Sleeping Cars in and passing through North Carolina 
Mercantile Trust and Deposit Co.: 

Rolling-stock over Seaboard Air-Line Roads 



Total 

Assessed 

Value. 


$750,000.00 


50, COO. 00 


210.00 


250. '10 


200.00 


85.00 


50.00 


140. 00 


1,350.00 


480.00 


80.00 


165.00 


500.00 


803,510.00 


96,918.15 


326,071.94 



STATEMENT A— Recapitulation. 



Name. 


Total 

Assessed 

Value. 


Atlantic Coast Line System . 


19,779,875.80 

10,565,729.20 

6,053,667.15 

5,700,659.75 

96,9ls. 15 

326,C71.U4 

32,522,921.19 

803,510.00 

293,437.00 


Southern Railway 

Seaboard Air-Line 


Miscellaneous Roads 

Pullman Palace Car Co 

Mercantile Trust and Deposit Co - 


Total ._ _ . 


Telegraph Companies - . 


Steamboat Companies ._. 




Total valuation . . ._ . _ 


33,619,868.19 





BOARD OF RAILROAD COMMISSIONERS. 



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ASSESSMENT OF RAILROAD PROPERTY. 



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BOARD OF RAILROAD COMMISSIONERS. 



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ASSESSMENT OF RAILROAD PROPERTY. 



11 



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BOARD OF RAILROAD COMMISSIONERS 

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ASSESSMENT OF RAILROAD PHOPERTY. 



13 






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ASSESSMENT OF RAILROAD PROPERTY. 



15 



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BOARD OF RAILROAD COMMISSIONERS. 



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ASSESSMENT OF RAILROAD PROPERTY. 



19 



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20 



BOARD OF KAILKOAD COMM ISSJnNKKS. 



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21 



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BOAED OF RAILROAD COMMISSIONERS. 





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23 



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24 



BOARD OF RAILROAD COMxMISSIONERS. 






8 2 

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BOARD OF RAILROAD COMMISSIONERS. 



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28 



BOARD OF RAILROAD COMMISSIONERS. 



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ASSESSMENT OF RAILROAD PROPERTY 



29 



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BOARD OF RAILROAD COMMISSIONERS. 






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31 



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BOAhD OF KAILROAD COMMISSIONERS. 






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ASSESSMENT OF RAILROAD PROPERTY. 



33 



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BOARD OF RAIJ.ROAD COMMISSIONERS. 



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35 






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BOARD OP RAILROAD COMMISSIONERS. 



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ASSESSMENT OF RAILROAD PROPERTY 



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38 



BOARD OF RAILROAD COMiMISSIONERS. 



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ASSESSMENT OF RAILROAD PROPERTY. 



39 






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40 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT C— The following Table Shows List of Counties with Railroad Mileage and 

Assessed Value. 



County. 



Alamance 



Alexander. 



Name of Road or other Company. 



Anson 



Beaufort . 



Bladen 



Bertie . 



Brunswick 



Buncombe. 



North Carolina 

Western Union Telegraph Company 

Pullman's Palace Car Company 

Swepsonville Telegraph Company 

Southern Railway Rolling-stock 

Statesville and Western 

Western Union Telegraph Company 

Carolina Central 

Cheraw and Darlington 

Western Union Telegraph Company 

Pullman's Palace Car Company 

Norfolk and Southern 

Washington Branch (Wilmingt'n & Weldon). 

We.stern Union Telegraph Company 

Old Dominion Steamship Company 

Carolina Central 

Western Union Telegraph Company 

Atlantic Postal Telegraph Company 

Cashieand Chowan 

Norfolk and Carolina 

Roanoke and Tar River 

Pullman's Palace Car Company 

Wellington and Powellsville 

Western Union Telegraph Company 

Southern Railway Rolling-stock 

Carolina Central 

Wilmington, Columbia and Augusta 

Wilmington Railway Bridge Company 

Western Union Telegraph Company 

Atlantic Postal Telegraph Company 

Wilmington and South port Telegraph Line.- 

Cape Fear Towing and Transportation Co 

J. W.Harper, Steamer 

Pullman's Palace Car Company 

Western North Carolina 

Western North Carolina 

Asheville and Spartanburg 



17.05 



Valuation 
Per Mile. 



$16,758.71 



27.50 
13.90 



11.80 
6.62 



.80 



19.00 
13.09 
7.60 



20.00 



12.20 

12.88 
.40 



34.64 
12.82 
10.36 



7,000.98 
3,688.85 



4,815.98 
5, 329. 30 



2,131.05 
18,480.46 
5,142.96 



7,000.98 
12,251.72 



12,523.64 
3,822.65 
8. 172. 64 



Total 

Assessed 
Value. 



$285,736.05 

4,967.06 

2, .590. 14 

80.00 

21,032.90 

21,872.87 

524.66 

192,527.01 

51,275.00 

9,508.62 

2,073.00 

56,828.57 

35,279.97 

867. 84 

15,000.00 

229, 632. 24 

5,671.62 

3, 167. 30 

40,490.00 

241,909.17 

39,086.54 

280.00 

34,-575.00 

3,191.83 

16,147.84 

85,411.98 

157,802.18 

8.33.33 

6,149.58 

924.90 

500.00 

23,500.00 

8,000.00 

550.32 

434,194.65 

49,006.49 

84,668.53 



COUNTIES, WITH MILEAGE AND VALUATION. 



41 



STATEMENT C— Continued. 



County. 



Buncombe 



Burke. 



Name of Road or other Company. 



Fullman's Palace Car Company 

Western Union Telegraph Company. 
Carolina and Northwestern 



Cabarrus. 



Caldwell. 



Camden 



Carteret 



Caswell 



Catawba . 



Chatham 



Western North Carolina 

Pullman's Palace Car Company 

Western Union Telegraph Company 

North Carolina 

Yadkin 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Southern Railway Rolling-stock 

Carolina and Northwestern 

Caldwell and Northern 

Western Union Telegraph Company 

I^enoirand Blowing Rock Telegraph Co__. 

Norfolk and Southern 

Western Union Telegraph Company 

Elizabeth City and Norfolk Telegraph Co. 

Lake Drummond Canal Company 

Wilmington Steamship Company 

Old Dominion Steamship Company 

Atlantic and North Carolina 

Western Union Telegraph Company 

Old Dominion Steamship Company 

Wilmington Steamship Company 

Piedmont 

Atlantic and Danville 

Danville and Western 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Carolina and Northwestern 

Western North Carolina 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Ilaleigh and Augusta Air Line 

(ape Fear and Yadkin Valley 

Pittsboro 



Dis- 
tance. 



Valuation 
Per Mile. 



2.18 3, 1H7. 14 
29.70 12,523.64 



17.16 j 16,758.71 
1.15 . 2,905.12 



n.81 j 3, 1S7. 14 
10.60 I 2,338.77 



5.00 17,181.45 



16.00 



11.63 



7.10 

14. 60 
.75 



19,919.21 
5,398.63 



11.86 i 3,137.14 
22.94 i 12,523.64 



16.00 11,878.76 
29.63 j 6,234.54 
11.20 ' 2,128.56 



Total 

Assessed 
Value. 



.52,874.96 

10,594.26 

6, 838. 96 

571,952.15 

2, 173. 72 

4,900.76 

287,579.50 

3, 340. ^8 

2,513.46 

26,432.96 

21,168.60 

16, 555. 17 

24,685.00 

818.71 

486.37 

85,907.25 

288. 28 

259. 60 

8,000.00 

7, 142. 85 

1,428.57 

92,874.10 

1,045.30 

1,428.57 

7,142.85 

141,639.43 

78,820.11 

2,250.00 

863. 38 

12,176.94 

37,206.49 

287, 292. 33 

1,862.88 

6, 182.45 

190.0B0.19 

184,729.44 

23,840.00 



42 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT C— Continued. 



County. 



Chatham 



Cherokee . 



Chowan 



Cleveland 



Columbus 



Craven. 



Name of Road and other Company. 



Durham and Northern 

Egypt 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Pittsboro Telegraph Line 

Mercantile Trust and Deposit Company.. 

Atlanta, Kooxville and Northwestern 

Western North Carolina 

Western Union Telegraph Company 

Norfolk and Southern 

Suffolk and Carolina 

Western Union Telegraph Company 

Elizabeth City and Norlolls: Telegraph Co 

J. G. & F. Wood, Steamers 

H.G. Wood, Steamer 

Branning Manufacturing Co., Steamers __ 

D.W. Roper & Co., Steamers 

Carolina Central 

Ohio River and Charleston 

Atlanta and Charlotte Air Line 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Cleveland Springs Telegraph Line 

Carolina Central 



Dls- Valuation 
tance. '' Per Mile. 



5.27 ! $2,234.06 
8.00 ' 3,135.00 



13.10 
23.95 



Wilmington, Chadbourn and Conway (br'ch! 24.88 
W., C. and A.) , 



Wilmington, Columbia and Augusta. 

Pullman's Palace Car Company 

Western Union Telegraph Company- 
Atlantic Postal Telegraph Company- 
Atlantic and North Carolina 



Wilmington, Northern and Norfolk, (branch 

W. & W.) 



Western Union Telegraph Company. 
Wilmington Steamship Company... 
Old Dominion Steamship Company. 

David Styron, Steamers 

J.. C.Whitty, Steamers 



48.50 
9.48 



3, 233. 59 

3,822.65 



4.20 17,181.45 
S.OO 2,779.02 



21.30 7,000.98 
22.00 4,507.29 
8. 77 16, 145. 17 



8.90 7,000.! 
3,072.i 



50.45 12,251.72 



5, 804. 63 
4,419.73 



Total 

Assessed 

Value. 



^11,773.00 

25, 080. 00 

1,228.80 

5, 189. 04 

250. 00 

15,86!. 16 

42,360.00 

91,552.68 

1,354.91 

72, 160. 90 

22,232.15 

242.15 

129. 80 

3,000.00 

650. 00 

7,500.00 

8C0.00 

149, 120. 92 

99,160.45 

141,593.16 

1,110.06 

8,592.47 

50.00 

62,308.74 

76,446.19 

618,099.42 

2, 293. 38 

21,487.23 

565.59 

281,524.00 

41,898.94 

5,315.88 
7, 142. 85 
6, 428. 5Y 
600.00 
1,000.00 



COUNTIES, WITH MILEAGK AND VALUATION. 



43 



STATEMENT C— Continued. 



County. 



Cumberland 



Name of Road or Other Company. 



J.L. Basnight, Steamers 

Newbern & Snow Hill -Steamboat Company. 

Broadus& Ives, Steamers 

J.J. Lassiter 



Dis- [Valuation 
lance, I Per Mile. 



Total 

Assessed 
Value. 



Currituck 



Davidson 



Davie. 



Dare 



Duplin. 



Wilmington and Weldon (Wilson and Fay- ' 32.74 20,287.68 
etteville). 

Cape Fear and Yadkin Valley 38.28 6,23-1.54 

Aberdeen and Rock Fish 20.00 | 1,854.34 

Cape Fear River Transportation Company... 

Pullman Palace Car Company 

I 

I Western Union Telegraph Company 

j Atlantic Postal Telegraph Company ; \ 

Carolina Postal Telegraph Company 

j Norfolk and Southern 14.30 17,181.45 

- 
Western Union Telegraph Company , 

Albemarle and Chesapeake Canal Company. 

North Carolina 24.80 16,758.71 

Pullman Palace Car Company 

I Western Union Telegraph Company 

I Southern Railway Rolling-stock 

North Carolina Midland rj.38 2,858.13 

Western Union Telegraph Company 

I Wilmington Steamship Company 

I 

I Old Dominion Steamship Company 

Wilmington and Weldon (Clinton Branch).. 3.00 4,276.15 

Wilmington and Weldon 33.96 20,101.78 

Pullman's Palace Car Company 

Western Union Telegraph Company _.. 



J)urham 



Edgecombe. 



Durham and Northern 

North Carolina -_ 

Oxford and Clarksville 

Norfolk and Western 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Atlantic Postal Telegraph Company 

Southern Railway Rolling-stock 

Norfolk and Carolina 

Wilmington and Weldon (Tarboro Branch). 



11.05 
16. 22 
11.18 
19. 50 



5,186.96 
16,758.71 
5,202.70 
5,885.37 



10.41 18,480.46 
14.38 18,539.30 



.«250. 00 

2, 550. 00 

800.00 

1,550.00 

664,218.53 

238,658.20 

37,086.95 

5, 10\ 00 

2,737.60 

15, 632. 84 

7,055.90 

165. 00 

245, 694. 73 

824.48 

100,000.00 

415,616.07 

3,876.76 

36,553.90 

30,593.30 

35,383.76 

703. 40 

7, 142. 85 

5,428.57 

12,828.45 

682, 656. 40 

1,521.95 

20, 179. 60 

57,315.95 

271.826.20 

58, 166. 14 

114,764.99 

2,346.56 

9, 250. 90 

449. 14 

20,009.02 

192,381.55 

266,595.00 



44 



BOAhD OF KAILROAD COMMISSIONERS. 



STATEMENT C— Continued. 



County. 



Edgecombe 



Forsyth 



Franklin 



Gaston. 



Gates 



Granville. 



Guilford 



Name of Road or other Company. 



Albemarleand Raleigh (Branch) 

Wilmington and Weldon 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Tar River Oil Company 

Old Dominion Steamship Company 

Southern Railway Rolling-stock 

Northwestern North Carolina 

Cape Fear and Yadkin Valley 

North Carolina Midland 

Norfolk and Western 

Western Union Telegraph Company 

Louisburg 

j Raleigh and Gaston 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Atlantic Postal Telegraph Company 

Louisburg Telegraph Company 

Mercantile Trust and Deposit Company. 

Carolina and Northwestern 

Carolina Central 

Atlanta and Charlotte Air Line 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Norfolk and Carolina 

SufTolk and Carolina u 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Southern Railway Rolling-stock 

Durham and Northern 

Oxford and Clark sville 

Oxford and Henderson 

Atlantic and Danville 

Western Union Telegraph Company 



Dis- Valuation 
tance. Per Mile. 



8.89 $1,864.89 
10.15 i 20,101.78 



3G.71 
10.77 
13.73 
11.96 



4,639.18 
6,234.54 

2, 858. 13 
8,851.24 



10.00 
12.91 



3,200.00 
19,631.10 



]9.'J6 : 8,137.14 



7,000.98 



17.50 



23.00 16,145.17 



14.81 I 18,480.46 
17.50 2,779.02 



High Point, Randleman, Asheboro and 
Southern. 



Northwestern North Carolina. 
North Carolina 



22.36 I 

38.15 ! 5,202.70 

I 
5.66 j 4,252.83 

2.20 i 5,398.63 



3.01 

12.20 
33.37 



4,210.00 

4,639.18 
16,758.71 



Total 

Assessed 
Value. 



$43,244.44 

204,033.01 

1,455.50 

28,567.39 

2,500.00 

500.00 

33,245.51 

170,304.33 

t)7, 145.98 

39, 242. 24 

132,414.60 

7,320.58 

32, 003 . 00 

253,437.54 

998. 40 

2,075.61 

2, 829. 61 

200.00 

22,862.72 

60,421.34 

122,517.19 

371,338.97 

3, 206. 84 

19, 48S. 30 

274, 249. 99 

48,632.85 

320.00 

3,419.00 

18,306.64 

115,980.52 

198,482.86 

24,071.02 

11,876.99 

5,523.44 

12,798.45 

56,598.00 
559,238.24 



COUXTIKS. Wr I II MILKACii: .\M) VALUATIOxN, 



45 



STATEMENT C — Continued. 



County. 



Guilford 



Halifax. 



Harnett 



Hyde 



Name of Road and Other Company. 



Haywood 
Henderson 

Hertford .. 



Piedmont 

Cape Fear and Yadkin Valle/ 

Pullman's Palace Car Company 

Wes^tern Union Telegraph Company 

Oak Ridge and Stokesdale Telegraph Co. 

Southern Railway Rolling stock 

N' rfolk and Carolina 

Rnleigh and Gastcn 



Dis 

HHCe. 



14.-1;^ 

41.28 



1:^.24 
19.99 



Wilmington and Weldon (Scotland Neck 2o.92 
Branch) 



Mercantile Trust and Deposit Company j 

Wilmington and Weldon 21.93 

Seaboard and Roanoke .:>0 

Pullman's Palace Car Company 

Western Union Telegraph Company [ 

Atlantic [*t)stal Telegraph Company 

Southern Railway Rolling-stock 

6.42 



Wilmington and Weldon (Wilson and Fay- 
elleville Branch). 



13. GO 



21. 



Cape Fear and Yadkin Valley 

Pullman's Palace Car Company. 

Western Union Telegraph Company 

Atlantic Postal Telegrapia Company 

W^estern North Carolina 

Western Union Tee^raph Company 

Ashevilleand Spaitanburg ; 21.56 

Hendeisi n\ ille and Bievnrd ! 11.90 

Western Union Telegraph Company : 

Norf .Ik and Carolina ' 14..53 



Valuation 
I'tr Mile. 



SI 9, 949. 21 
6, 231.. 54 



18,480.46 
19,631.10 
7,043.04 



20,101.78 
20, 677. -57 



20,287.68 
6,234.54 



Iredell 



Winton 

Pullman's Palace Car Company 

Western Union Telegraph Comp uiy 

Un' ted Telegraph Company 

Southern Railway R'Jllin,'-^tock 

Fairtield Canal and Transportatic.n Co 

Wilmington Steamship (Company 

Old Dominion Steamship Company 

Fairfield and Elizabeth City Steamship Co 
Statesvilie and Western ..__ .._ 



15.00 



11.20 



3, S22. 65 

8,172.64 
2,. 829. 26 

18,480.46 
2, 736. 67 



2, 387. 



AsStrSSnd 

Value. 



$287,867.19 

257,361.81 

5,136.82 

65,813. 15 

i;o.oo 

41,165.28 
244,681.24 
392,425.75 
182, 555. 95 

36,191.15 

440,831.99 

6, 20.3. 27 

3, 774. 90 

24,278.36 

2,212.45 

16,332.88 

130,216.88 

81,789.73 

513. ;:o 

3,022.32 

4,890.69 
82,451.75 

1,215.36 
176, 202. 09 
27,718. .'3 

3,805.29 

268,521.05 

41,050.00 

320. 00 

3, 350. 96 

26.65 

17,924.22 

7, 376. 00 

8,142.85 

10, 928. .57 

1,000.00 

26.741.13 



4G. 



BOARD OF RAILROAD COiMMISSIONERS. 



STATEMENT C— Continued. 



i 

Couiitj'. ' 


Name of Road or other Company. | 


Dis- 
tance 


V:il nation 
Per Mile. 


Total 

Assessed 

Value. 


Iredell , 




20 11 


$1", 523. 64 


$251,850.42 

160,989.20 

1,472.52 




Atlantic Tennessee and Ohio 


21 60 


7 450 89 




Pullman's Palace Car Company 








Western Union Telegraph Company 






5,687.18 


.lackson 


Western North Carolina 

Western Union Telegraph Company j 


22.89 


:], 822. 65 


87,500.65 
1,314.55 


Job iiston 


Midland North Carolina 


12 74 


o 210 70 


40,901.30 
4:59,748.61 




North Carolina 


26.24 


1(1,758.71 




Wilmingtcm and Weldon (Wilson and Fay- 
etieville Brauch.) 


30.88 


:]0, 287. 68 


626,483.46 




Pullman's Palace Car Company 







2,766.50 




Western Union Telegrapii Ct)mp tny 







20, 607. 40 




Atlantic Postal Telegraph Company 







232.89 




Southern Railway Rolling-stock . 






32,986.49 
20, 31'!. 21 






3 50 


5, 80 J. 63 




Wilmington, Newbern and Norfolk (Branch 
W. and W ) 


12.76 


4,419.73 


56,393.75 




Western Union Telegraph Company 








1,110.-13 


lienoir 


Wilmington and Weldon (Scotland Neck 
Branch.) 


11.07 


7,043.01 


77,966.58 




Atlantic and North Carolina 


17.00 


5,801.63 


98,678.74 




Western Union Telegraph Company 






2,598.55 


Lincoln 


Carolina and North westerii 


14. -26 


3, 137. 14 


44,73.5.64 




Carolina Central _.. .. 


15.60 




109,215.32 


Mmc<ui 


Western LTnion Telegraph Company 

Western North Carolina 






1,*^32.88 




2.57 


3,822.65 


9,824.23 


. 


M estem lTni< n Telegiai)h Company 






149 90 


Madison 


Western North Caroli)ia 

PuUmaa's Palace Car Company „ . . 


2S. :^0 


12.523.64 


351,419.06 
2, 243. 84 










5,-.'8).90 


Martin 


Wilmington and Weldon (Scotland Neck 
Branch.) 


J7. to 


7,043.04 


122,519.09 




Albemarle and Raleigh (Branch) 


3i.86 


4,864.39 


164,708.27 




Wilmington & Weldon (vVashington Br'^h.) 


.42 


5,329.30 


2,238.30 




Western Union Telegraph Company 






2,979.66 










6,-161.00 
59,916.99 


McDowell 


j Ohio River and Charleston Railway 


13.30 


4,507.29 




Western North Carolina 


32. 24 


12,523.64 


: 403, 762. 20 




Pullman's Palace Oar Company 




2, .384, 08 




Western Union Telegraph Company 





1 


5,827.29 



COUNT] i'lS, WITH MII.KA(JK AND VA I.U ATIOX. 



47 



STATEMENT C— Continued. 



County. 



Name of Road or Other Company. 



Mecklenburg Charlotte, Colunnbia and Augusta 

[ Carolina Central 

I 

i North Carolina 

Atlantic, Tennessee and Ohio 

Atlanta and Charlotte Air Line 

Southern Railway Rolling-stock 

Pullman's Palace Car Company 

Western Union Telegraph (.^ompany 

Mitchell East Tennessee and Western North Carolina. 

1 

j W^estern Union Telegraph Company 

Montgomery Aberdeen and Asheboro 

Moore County 

Moore i Carthage 

i Moore County Railroad 

j Raleigh and Augusta 

! Aberdeen and Ashfboro 

Cape Fear and Yadkin Valley 

Aberdeen and Rock Fish 

Pullman's Palace Car Company 

Western Union Telegraph Compmy 

j Mercantile Trust and Deposit Company 

I Carthage Telegraph Line 

Durham and Charlotte 



Dis- 
tance. 



Valuation 
Per Mile. 



11.48 ! ?i7, 025.26 

23.90 I 

11.90 1(),75S.71 
23.40 

11.42 16.145.17 



3.00 



2 J. 25 
.50 
29. 50 
12. 00 
38. 50 
23.23 
12. 62 
3. 00 



10.73 

Nash Wilmington and Weldon (Nashville Branch'.' 19.20 

j Wilmington and Weldon „ 11.18 

Pullman's Palace Car Company 

I Western Union Telegraph Company 

[ Southern Railway Rolling stock 

New Hanovei'-— I New Hanover Transit Company 

I Carolma Central 



4,880.05 



2,670.31 
1,824.00 
1,965.25 
1,824.40 
11,878.76 
2,670.31 
6,231.54 
1,854.34 



2,23-1.06 

3, 560. 00 

20,101.78 



Wilmington, Newbern and Norfolk (Branch 
W. and W.) 



j Wilmington and Weldon 

j Wilmington Sea Coast 

I Cape Fear and Yadkin Valley 

Wilmington Railway Bridge Company 

Pullman's Palace Car Company 

Western Union Telegraph Company 



4.00 

1.01 

16. ('3 

9.42 
11.81 
7.23 
2.36 



7, OOO. 98 
4,419,73 

10,101.78 

6,231.54 
20, 833. 33 



Total 

Assessed 
Value. 



$195,450.00 

167,323.47 

199,428.67 

171,350.80 

181,377.87 

14,679.85 

4,250.20 

46,641.97 

14, 640. 15 

288.28 

64,755.20 

9)2.00 

57,975.00 

21, 892. CO 

457, 332. 38 

62,084.89 

78, 679. 88 

5, 56;S. 04 

2,918.40 

5, 823. 25 

38, 170. 75 

210.00 

23,9-1.50 

83,359.00 

224,737.88- 

911.05 

1,106.96 

3,947.53 

11,075.00 

7,070.99 

70, 848. 26 

189,358.75 
40,710.00 
45,075.71 
49,166.67 
750.94 
11,847.73 



48 



BOARD OB^ RAILROAD COMMISSIONERS. 



STATEMENT C— Conlinued. 



County. 



New Hanover. 



Northampton .. 



Onslow 



Orange. 



Pamlico 



Pasquotank 



Pender 



Name of Road or Other Company. 



Dis- 
tance. 



1.'25 



36.81 



Atlantic Postal Telegraph Company 

Wilmington Dummy Line 

Chas. Wessell, Steamboats 

Walter Taft, Steam boats i 

G. C. Hewbett, Steamboats — ! 

Petersburg 7.18 

Northampton and Hertford i 7.84 

Roanoke and Tar River ! 21.82 

S^eaboMrdand Roanoke I 18.7-' 

Pullman's Palace Car Company 1 

Western Union Telegraph Company I 

Atlantic Postal Telegraph Company j 

United Telegraph Company 1 

Mercantile Trust and Deposit Company 

Wilmington, Newbern and Norfolk (Branch 
W.and W.) 

Western Union Telegraph Company 

North Carolina 

State University 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Southern Railway Rolling stock 

Wilmington Steamship Company 

Old Dominion Steamship Company 

Norfolk and Southern 

Western Union Telegraph (Jompany 

Elizabeth City and Norfolk Telegraph Co.— 

Guard and Thornton Steamers 

Lake Drummond Canal Company 

Wilminjiton Steamship Company 

Old Dominion Steamship Company 



17. '27 
10.40 



12.57 



Wilmington, Newbern and Norfolk (Branch 
Wilmington and Weldon ) 



Wilmington and Weldon 

Cape Fear and Yadkin Valley 21 

Pullman's Palace CarCompany — 

Western Union Telegraph Company j — 

Black River Packet Company ... ! 

W. H. Ward, Steamers |— . 



15.74 
25. 19 



Total 

Per Mile ' Assessed 
Per Mile. Value. 



Valuation 



4,550.00 



20, 682. 60 
2,619.39 
5,142.96 

20, 677. 57 



4,419.73 



16,758.71 
2,465.38 



17,181.45 



4,419.73 

20,101.78 
6,234.51 



138.08 

5,687.-50 

1,100.00 

liO.OO 

500.00 

148,501.00 

20,536.00 

127, 648. 46 

387,084.21 

2, 058. 05 

17,302.56 

1,211.02 

63.34 

49,311.18 

160, 480. 48 

2, 096. 37 

289,422.95 

24,999.00 

2, 220. 12 

6,218.19 

21,304.29 

9, 642. 85 

1,428.58 

215, 970. 82 

724.73 

498. 30 

500.10 

8,000.00 

7, 142. 85 

1,428.57 

69,566.57 

506,363.79 

136,536.43 

1,130.22 

17,089.23 

2, 500. 00 

500.00 



COUNTIES, WITH MILEAGE AND VALUATION. 



49 



STATEMENT C- Continued. 



County. 



Perquimans. 



Person 



Pitt 



Polk 



Randolph 



Richmond 



Name of Road or Other Company. 



Norfolk and Southern 

Western Union Telegraph Company 

Elizabeth City and Norfolk Telegraph Co. 

Atlantic and Danville 

Norfolk and Western 

Western Union Telegraph Company 



Wilmington and Weldon (Scotland Neck 
Branch;. 



Albemarle and Raleigh (Branch) 

Wilmington and Weldon (Washington Br'ch) 

Western Union Telegraph Company 

Moccasin River Steamboat Company 

Old Dominion Steamship Company 

Ashe ville and Spartanburg 

Western Union Telegraph Company 



Robeson 



High Point, Randleman, Ashboro and 
Southern. 



North Carolina 

Cape Fear and Yadkin Valley 

Aberdeen and Asheboro 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Southern Railway Rolling stock 

I Carolina Central 

Palmetto 

Raleigh and Augusta 

Cape Fear and Yadkin Valley 

Cheraw and Darlington 

Pullman's Palace Car Company... 

Western Union Telegraph Company 

Atlantic Postal Telegraph Company 

Red Springs and Bowmore 

Mercantile Trust and Deposit Company.. 

Carolina Central 

Cape Fear and Yadkin Valley 



Dis- 
tance. 



16.30 



5.20 
22.19 



31.43 

6.71 
18. 35 



10.00 



23.74 

.60 
30.49 
15.50 



32.70 
7.00 

28.50 
9.66 



Valuation 
Per Mile. 



$17,181.45 



Wilmington and Weldon (Wilson and Fay- 
etteville Branch). 



Red Springs and Bowmore 
Southeastern 



26.20 
34.70 

15.00 
11.25 



5,398.63 

5,885.37 



7,043.04 

4,864.39 
5,329.30 



8, 172. 64 



4,210.00 

16,758.71 
6,234.54 
2,670.31 



7,000.98 
2,294.50 
11,878.76 
6,234.54 
3, 688. 85 



7,000.98 

6,234.54 

20,287.68 

957. 14 



Total 
Assessed 
Value. 



$280,057.63 

939.79 

467. 30 

28,072.90 

130,596.76 

2,260.69 

221,363.18 

32,640.06 

97,792.73 
3,256.98 
1,000.00 
1,250.00 

81,726.38 
1,643.19 

99,945.55 

10, 055. 22 

190,091.14 

41,389.91 

123.34 

4,283.84 

240. 17 

228,932.14 

16,061.50 

338,544.72 

60, 225. 64 

2, 434. 64 

3,071.25 

12,613.40 

4,038.97 

5,742.85 

28,256.27 

214,230.08 

163,344.95 

703,982.37 

14,357.15 
23,700.00 



50 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT C— Continued. 



County. 



Robeson 



Rockingham 



Rowan 



Rutherford 

Sampson ._ 

Stanly 

Stokes 

Surry 

Swain 

Union 

Vance 



Name of Road or other Company. 



Pullman's Palace Car Company 

Westei n Union Telegraph Company . 

Atlantic Postal Telegraph Company 

Danville, Mocksville and Southwestern 

Piedmont 

Norfolk and Western 

Cape Fear and Yadkin Valley 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Carolina 

Western North Carolina 

Yadkin 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Southern Railway Rolling-stock 

Carolina Central 

Ohio River and Charleston 

Western Union Telegraph Company 

Wilmington and Weldon (Clinton Branch). 

Cape Fear and Yadkin Valley 

Yadkin 

Western Union Telegraph Company 

Cape Fear and Yadkin Valley 

Norfolk and Western 

Western Union Telegraph Company 

Cape Fear and Yadkin Valley 

Northwestern North Carolina 

Western Union Telegraph Company 

Western North Carolina 

Western Union Telegraph Company 

Georgia, Carolina and Northern 

Carolina Central 

Pullman's Palace Car Company 

Western Union Telegraph Company 

Durham and Northern 

Oxford and Henderson 

Raleigh and Gaston 



Dis- 
tance. 



7.80 
21.20 
20.02 
10. U 



20.60 
17.52 



15.00 
27.50 



10.43 
38.92 
23.19 



20.80 
10.67 



19.42 
33. 13 



3'?.; 



14. .30 
25.50 



7.50 

7.06 

20.85 



Valuation 
Per Mile. 



$2,653.85 
19,9i2.21 
8,851.24 
6,234.54 



16,758.71 
12,523.64 
2,905.12 



4,276. 15 
6,234.54 
2,905.12 



6,234.54 
4,639.18 



6,234.54 
4,639.18 



3,822.65 



10,346.36 
7,000.98 



5, 186. 96 

4,252.83 

19,631.10 



Total 

Assessed 
Value, 



$2,908.32 

18,309.23 

3,601.14 

20,700.00 

422,923.38 

177,201.89 

65,088.58 

2,713.45 

37,446.99 

345,229.48 

219,414.19 

48,399.34 

3,260.16 

35,630.83 

25,412.18 

105,014.73 

123,950.56 

1,441.40 

44,600.30 

242,618.30 

67,369.78 

1,326.08 

129, 678. 44 

94,442.76 

2,375.42 

121,074.77 

153,696.06 

3,003.87 

146,637.20 

2,215.75 

147,952.98 

178,525.05 

1,689.60 

7,295.79 

38,902.22 

30,024.98 

409,308.-50 



COUNTIES, WITH MILEAGE AND VALUATION. 



51 



STATEMENT C— Continued. 



County. 


Name of Road or Other Company. 


Dis- 
tance. 


Valuation 
Per Mile. 


Total 

Assessed 
Value. 


Vance 


Pullman's Palace Car Company 






81,612.80 




Western Union Telegraph Company __ 






4, 731 . 25 




Atlantic Postal Telegraph Company . 






4,727.66 




Mercantile Trust and Deposit Conipany 






36,923.91 


Transylvania 


Hendersonville and Brevard _ 


9.80 


$2,329.26 


22,826.77 


Mercantile Trust and Deposit Company 




56,503.99 
5, 965. 00 


Wake 


Durham and Northern _ 


1.15 


5,186.96 
16,758 71 




North Carolina - 


30.22 


506,448.30 
279,150.91 




Raleigh and Augusta 


23. 50 


11,878.76 




Raleigh and Gaston 


18.75 


19,631.10 


368,083.18 

10,000.00 

5,249:04 

19,058. 19 




Southern Railway Depot 






Pullman's Palace Car Company 








Western Union Telegraph Company 








Atlantic Postal Telegraph Company 






■ 
8,447.25 




Southern Railway Rolling-stock 






33,948.69 


Warren 


Raleigh and Gaston 


23.71 


19,631.10 


465,453.47 
8,960.00 
1,766.40 




Warrenton 


3.00 




Pullman's Palace Car Company 








Western Union Telegraph Company 






4,655.14 
5,507.84 

41,988.81 




Atlantic Postal Telegraph Company 








Mercantile Trust and Deposit Company 






Watauga 


Lenoir and Blowing Rock Telegraph Co 






43.63 


Washington 


Norfolk and Southern 


18.00 


4,815.98 
4,864.39 


86,687.65 
18,825.18 




Albemarle and Raleigh (Branch W. and W.)- 


3.87 




Western Union Telegraph Comjany 






223. 12 


Wayne 


Midland North Carolina. 


8.76 


3,210.70 
5,804.63 


28,125.70 
58,016.31 




Atlantic and North Carolina 


10.00 




North Carolina . 


10.47 


16,758.71 
20,101.78 


175,463.71 

598,228.91 

1,391.49 




Wilmington and Weldon 


29.76 




Pullman's Palace Car Com pany 








Western Union Telegraph Company 






21,517.79 


Wilkes 


Northwestern North Carolina 


18.11 


4,639.18 


84,015.56 
1 , 043. 57 




Western Union Telegraph Company 




Wilson 


Wilmington and Weldon (Wilson and Fay- 
etteville Branch). 


11.46 


20,287.68 


2.32,496.76 






Wilmington and Weldon 


19.81 


20 101 78 


398,216.24 
3, 526. 75 




Pullman's Palace Car Company 








Western Union Telegraph Company 








17,242.02 




Southern Railway Rolling-stock 






30,316.58 











52 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT D— Showing Incorporated Towns and Valuation. 



Town. 



Albemarle. 

Ahoskie 

Asbboro— . 



Aberdeen. 



Asbeville 

Apex 

Ayden 



Battleboro. 
Benson 



Black Mountain 

Black Creek 

Burlington 



Biltmore 

Bryson City 

Bessemer City.- 

Betbel 

Brevard 

Burgaw 

Charlotte 



Carthage 

Cameron ___, 

Catawba 

Cherry ville 
Ceno Gordo 
Candor 



Name of Road. 



Yadkin 

Norfolk and Carolina 



High Point, Randleman, A s hbor o and 
Southern. 



Aberdeen and Ashboro 

Ashboro 

Raleigh and Augusta 

Moore County — . 

Ashboro and Rock Fish 

Western North Carolina 

Raleigh and Augusta Air Line. 



Wilmington and Weldon (Scotland Neck 
Branch) 

Wilmington and Weldon 



Wilmington and Weldon (Wilson and Fay- 
etieville Branch.) 



Western North Carolina 

Wilmington and Weldon 

North Carolina 

North Carolina 

Western North Carolina 

Western North Carolina 

Atlanta and Charlotte Air Line 

Albemaile and Raleigh 

Hendersonvilleand Brevard 

Wilmington and Weldon 

Atlanta and Charlotte Air Line 

Atlantic, Tennessee and Ohio 

Carolina Central 

Charlotte, Columbia and Augusta 

North Carolina 

North Carolina 

Carthage 

Carthage 

Raleigh and Augusta Air Line 

Western North Carolina 

Carolina Central 

Wilmington, Columbia and Augusta. 
Ashboro 



Dis- 
tance. 



1.00 
.46 
.41 

.50 
.50 

1.00 
.50 
.50 

1.54 
.01 
.36 

.50 
.50 

LOO 

.51 

2.00 



.30 
1.00 
2.96 

.27 

.40 
1.00 
1.85 
1.45 
1. 10 

.40 



1.29 
1.00 
.50 
.08 
LOO 
1.00 
.78 
.50 



Valuation 
Per Mile. 



»18,480.46 
4,210.00 

2,670.31 

2,670.31 

11,878.76 

1,824.40 

1,854.34 

12,523.64 

11,878.76 

7,013.04 

20,101.78 
20,287.68 



20,101.78 
16,758.71 



12,523.64 



16, 145. 17 
4,864.39 
2,329.26 



16, !45. 17 
7,450.89 
7,000.98 

17,0.5.26 



16,758.71 
1,965.25 
1,965.25 

11,878.76 



Total 

Assessed 

Value 



12,251.72 
2,670.21 



$2,905.12 
8,501.00 
1,726.13 

1,335.15 
1,335.15 

ll,b78.76 
912.20 
927. 17 

19,286.40 

118.78 

2,535.49 

10,050.88 
10,113.84 

12, 523. 64 

10.251.90 

33,517.42 

2,467.20 

3,757.09 

3,822.65 

47,789.70 

1,313.38 

931.70 

20,101.78 

29,868.56 

10,803.79 

7.701.08 

6,810.10 

1,591.34 

21,618.73 

1,965.25 

982.62 

950. 30 

12,523.64 

7,000.98 

9,556.34 

1,335.15 



TOWNS, WITH MILEAGE AND VALUATION. 



53 



STATEMENT D— Continued. 



Town. 


Name of Road. 


Dls. 
tance. 


Valuation 
Per Mile. 


Total 

Assessed 

Value. 


Clayton 


Nnrt.b narrtlina. 






U, 307. 61 


North Carolina 


1.06 


$16,758.71 


17,764.23 


Clinton 


Wilmington and Weldon (Clinton Branch) .. 


.45 


4,276.15 


1,924.24 


Gary 


N^nrtVi nflrnlinn. 






1, 233. 60 






1.10 


11,878.76 


13,066.63 




IVTnrt.b Pn.rolinn, 


1.00 




16.758.71 


China Grove 


North Carolina .. — — 






1,233.60 






1.00 




16,758.71 


Concord 








1,801.05 




North Carolina 


1.46 


16,758.71 


21467.71 


Chadbourn 


^Vil minp't.nn riftlnnnbin, n.nfl Ano^nstfl, 


1 00 




12,251.72 
3,072.59 
1,911.32 
8,766.55 




Wilmington, Chadbourn and Conway 


1.00 




Canton 


.50 


3,822.65 
12,523.64 
4.864.39 


Cleveland 




.70 


Coneto 


Albemarle and Raleigh 


.57 


2, 772. 70 






1.00 




12,523.64 
13,024.59 


Conover 


Western North Carolina 


1.04 


12, 523. 64 


Clyde - . 




.40 


3,822.65 
7, 450. 89 


1,529.06 
8, 046. 96 


Davidson College 


Atlantic Tennessee and Ohio . 


1.08 


Durham _. __ . 


Oxford and Clarksville 


.30 


5,202.70 
5,186.96 


1, 560. 80 




Durham and Northern . . . 


1.03 


5,342.57 




North Carolina _. _. 






1,480.32 

765. 09 




Norfolk and Western 


18 


5, 885. 37 




North Carolina - _ _ 


1.20 


16,758.71 
3, 137. 14 


20,110.45 


Dallas . 


Carolina and Northwestern 


1.10 


3,450.85 


Dillsboro 


Western North Carolina 


1.10 


3.822 65 


4,204.92 


Dunn 


Wilmington and Weldon (Wilson and Fay- 
etteville Branch). 


1.00 




20,287.68 






Ellenboro . 


Carolina Central 


L30 


7,000.98 


9,101.27 


Earle's 


Ohio River and Charleston Railway Co 

East Tennessee and Western North Carolina 


1 00 


4,507.29 
4,880.05 
17,181.45 


4,507.29 
4,880.05 
13,745.16 


Elk Park 


1 00 


Elizabeth City... 


Norfolk and Southern 


.80 


Edenton . 


Norfolk and Southern 


1 10 


17,181.45 


18,899.59 
12,414.69 
7,515.47 


Elon College 


North Carolina 




Elkin 


Northwestern North Carolina 


1.62 


4,639.18 


Everitt 


Albemarle and Raleigh 


83 


4,864.39 
20,101.78 
20,101.78 


4,037.44 
20,101.77 


Enfield 


Wilmington and Weldon 


.1.00 


Elm City 


Wilmington and Weldon 


.50 


10,050.88 



54 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT D— Continued. 



Town. 



Forest City.. 
Franklinton 



Four Oaks. 



Fair Blufl __. 
Fayetteville 



Fremont — 

Faison 

Garysburg. 

Grover 

Graham _._ 
Gastonia ._ 



Graham 

German ton _ 
Gibsonville . 

Glen Alpine. 
Goldsboro — 



Greensboro- 



Greenville 

Grifton 

Goose Nest 

Henderson ville . 

Hobgood 



Henderson 



Name of Road. 



Ohio River and CharJeston . 

Louisbnrg 

Raleigh and Gaston 



Wilmington and Weldon (Fayetteville 
Branch). 



Wilmington, Columbia and Augusta- 
Cape Fear and Yadkin Valley 



Wilmington and Weldon (Fayetteville 
Branch) 



Wilmington and Weldon 

^Vilmington and Weldon 

Seaboard and Roanoke 

Atlanta and Charlotte Air Line. 

North Carolina 

Atlanta and Charlotte Air Line - 
Carolina and Northwestern 



Cape Fear and Yadkin Valley. 
North Carolina 



Western North Carolina 

Wilmington and Weldon 

Atlantic and North Carolina- 
North Carolina 

Cape Fear and Yadkin Valley 

North Carolina 

Piedmont 

North Carolina 



Wilmington and Weldon (Scotland Neck 
Branch). 

Wilmington and Weldon (Scotland Neck 
Branch). 

Wilmington and Weldon (Scotland Neck 
Brauch). 



Hendersonville and Brevard 
Asheville and Spartanburg.... 
Norfolk and Carolina 



Wilmington and Weldon (Scotland Neck 
Branch). 

Durham and Northern — 



Dis- 
tance 



1.25 
.16 
.80 
.53 

1.00 
2.85 
l.StJ 

.85 
.68 
1.50 
. 
.47 
1.43 
1.65 



.50 



.63 
1.00 
1.90 
1.00 

.70 
2.85 



Valuation 
Per Mile. 



$1.25 

3,200.00 

19,631,10 

20, 287. 68 



6,234.51 

20,287.68 

20,101.78 
20,101.78 
20,677.57 
16, 145. 17 
16,758.78 
16,145,17 
3, 137. 14 



,234.54 



,758.71 



1.80 

2.11 

.74 

.59 

1.14 

.50 

1.41 

.71 

.23 

.65 



20,101.78 
5,804.63 

16,758.71 
6,234.54 



19,949.21 
16,758.71 
7,043.04 

7.043.01 

7,013.04 

2,329.26 
8,172.64 
18, 480. 46 
7,043.04 

5,186.96 



Total 

Lssessec 
Value 



$5, 634. 12 

412.00 

15,704.88 

10,752.47 

12,251.72 
17.768.44 
27,591.25 

17,086.51 
13,669.20 
31,016.37 

8,072.58 

7,876.59 
23,087.59 

5, 176. 28 
579. 79 

3, 117. 26 
777. 16 
10,557.98 
12,523.64 
88,193.37 

5,804.63 
11,731.10 
17,768.43 

2, 602. 89 
35,908.59 
35,360.88 

5,211.85 

4,155.39 
8,029.06 

1,164.63 
11,523.42 
13,121.12 

1,619.89 

3,371.52 



TOWNS, WITH MILEAGE AND VALUATION. 



55 



STATEMENT D— Continued. 



Town. 



Henderson 

Hope MilJs 

Hickory 

High Point 

Hamlet— 

Hub 

Hamlet 

Hillsboro 

Hope Mills 

Huntersville 

Hot Springs 

Jacksonville 

Jamesville 

Jonesboro 

Kings Mountain 

Kernersville 

Kinston 

Keyser 

Kelford 

Kittrell 

Kelford 

Kenly 

Littleton 

Lowell 

LaGrange 

Lumberton 

Laurinburg 

Lilesville 



Name of Road. 



Oxford and Henderson- 
Raleigh and Gaston 



Wilrcington and Weldon (Fayetteville 
Branch). 



Carolina and Northwestern. 
Western North Carolina . — 
North Carolina 



High Point, Randleman, Ashboro and 
Southern. 



North Carolina 

Palmetto 

Raleigh and Augusta 

Wilmington, Chadbourn and Conway. 

Carolina Central 

North Carolina 

North Carolina 

Cape Fear and Yadkin Valley 

Atlantic, Tennessee and Ohio 

Western North Carolina 

Western and Norfolk 

Albemarle and Raleigh 

Cape Fear and Yadkin Valley 

Atlanta and Charlotte Air Line 

Northwestern North Carolina 

Atlantic and North Carolina 



Wilmington and Weldon (Scotland Neck 
Branch). 



Raleigh and Augusta Air Line. 

Roanoke and Tar River 

Raleigh and Gaston _. 

Norfolk and Carolina 



Wilmington and Weldon (Wilson and Fay- 
etteville Branch). 



Raleigh and Gaston 

Atlanta and Charlotte Air Line. 

Atlantic and North Carolina 

Carolina Central 

Carolina Central 

Carolina Central 



Dis- 
tance. 



.86 
1.40 
1.50 



Valuation 
Per Mile. 



$19,631.10 
20,287.68 



.45 j 3,137.14 

2.00 12,523.64 

2.44 j 16,758.71 

1.38 i 4,210.00 



.76 2,294.50 

.89 11,378.76 

1.05 I 3,072.59 

1.51 ! 7,000.98 



.13 

1.50 

1.00 

1.08 

.64 

.57 

1.00 

1.53 

1.29 

.64 

.36 

1.00 
.57 
.30 
.56 
.50 

1.40 
.96 

1.02 
.30 

1.20 

1.00 



16,758.71 
6,234.54 



12,523.64 
4,419.73 
4, 864. 39 
6,234.54 

16, 145. 17 
4, 639. 18 
5,804.63 
7,043.04 



5,142.96 
19,631.10 

18,480.46 
20,287.68 

19,631.10 
16, 145. 17 
5,804.63 
7,000.98 
7,000.98 



Total 

Assessed 

Value. 



1,531.01 

$27,483.54 
30,431.52 

1,411.71 
25,047.29 

40,891.25 
5,809.98 

3,009.98 
1,743.82 

11,759.97 
3,226.22 

10,571.48 
160. 36 
2, 178. 63 
9,351.80 
7,450.89 

13,525.53 
2,828.62 
2,772.70 
6, 234. 54 

24,702.12 
5,984.54 
3,714.96 
2,535.49 

11,878.76 
2,93L49 
5,889.33 
10,349.05 
10,143.84 

27,483.54 
15,499.36 
5,920.72 
2,100.29 
8,401.17 
7,000.98 



56 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT D— Continued. 



Town. 

Liberty 

Lincolnton 

Lenoir 

Lexington 

Louisburg 

Lucama 

Morehead City. 
Morrisville 

Maxton 

Margarettsville 
Mebane 

Madison 

Mt. Airy 

Mooresville 

Marsh ville 

Monroe 

Matthews 

Mount Holly .. 

McFarland 

Marion 

Mocksville 

Morven 

Mooresboro 

Murphy 

Maiden __„ 

Manly 

Macon 

Morgan ton 



Name of Road. 



Cape Fear and Yadkin Valley. 

Carolina Central 

Carolina and Northwestern ___ 
Carolina and Northwestern .._ 

North Carolina 

North Carolina 

Louisburg 



Wilmington and Weldon (Fayetteville 
Branch.) 



Atlantic and North Carolina 

North Carolina 

North Carolina 

Cape Fear and Yadkin Valley 

Carolina Central 

Seaboard and Roanoke 

North Carolina 

North Carolina 

Cape Fear and Yadkin Valley 

Norfolk and Western 

Cape Fear and Yadkin Valley 

Atlantic, Tennessee and Ohio 

Caroli n a Central 

Carolina Central 

Georgia, Carolina and Northern 

Carolina Central 

Carolina Central.^ 

Cheraw and Darlington 

Ohio River and Charleston 

Western North Carolina 

North Carolina Midland . 

Cheraw and Darlington 

Ohio River and Charleston 

Western North Carolina 

Atlanta, Knoxville and Northwestern 

Carolina and Northwestern 

Raleigh and Augusta Air Line 

Raleigh and Gaston 

Western North Carolina 



Dis- 
tance. 



1.43 
.90 
1.02 



.60 
L02 

.50 
1.00 



1.00 

.56 

1.69 

2.01 

2.00 

1.00 

.70 

.78 

.90 

1.30 

1.00 

.63 

1.28 

.90 

1.00 

J. 00 

.52 

.60 

1.16 

1.00 

1.00 

1.59 



Valuation 
Per Mile. 



$6,234.54 
7,000.98 
3,137.14 
3, 137. 14 



16,758.71 

3,200.00 

20, 287. 68 



5,1 



,63 



16,758.71 
6,324.54 
7,000.98 

20,677.57 



6, 234. 54 

8,851.24 
6,234.54 



7,000.98 
10,346.36 
7,000.98 
7,000.98 



4,507.29 
12,523.64 
2,856.13 



4,507.29 
3,822.65 
3,233.59 
3,137.14 
11,878.76 
19, 631. 10 
12.523.64 



Total 
^ssesse( 
Value. 



$8,915.39 
6,300.88 
3, 199. 88 
2,697.94 
616.80 
8,379.35 
1,536.00 

10, 752. 47 

15,962.73 

740. 17 

10, 055. 22 

6,359.22 

3,510.49 

20,677.57 

1,233.60 

16,758.71 

3,491.34 

14,958.60 

12,531.42 

14,901.78 

7,000.98 

4,900.68 

8,070.16 

6,300.88 

9,101.27 

3, 688. 85 

2,839.59 

16,030.26 

2,572.32 

3, 688. 85 

4,507.29 

1,987.78 

1,940.15 

3,639.08 

11,878.76 

19,631.10 

19,912.59 



TOWNS, WITH MILEAGE AND VALUATION. 



57 



STATEMENT D— Continued. 



Town. 



Name of Road. 



Dis- 
tance. 



Valuation 
Per Mile. 



Total 
^sse8se( 
Value. 



Marshall 

Magnolia 

Mount Olive 

Newbern 

Newport 

Nashville 

Newton 

New London 

Norwood 

N. Wilkesboro- — 

Oxford 

Old Fort 

Pantego 

Parncele 

Polk ton 

Pembroke 

Pine Level 

Plymouth 

Pilot Mountain __ 

Pineville 

Pittsboro 

Pollocksville 

Princeton 

Princeville 

Pikeville 

Rowland 

Red Springs 

Roseboro 

Rockingham 

Ramseur 



Western North Carolina 

Wilmington and Weldon 

Wilmington and Weldon 

Atlantic and North Carolina 

Wilmington, Newbern and Norfolk 

Atlantic and North Carolina 

Wilmington and Weldon (Nashville Branch) 

Chester and Lenoir, Carolina and North- 
western.) 

Western North Carolina 

Yadkin 

Yadkin 

Northwestern North Carolina 

Oxford and Clarksville 

Western North Carolina 

Albemarle and Pantego, Division Norfolk 
and Southern. 

Albemarle and Raleigh 

Wilmington and Weldon (Washington 
Branch). 

Wilmicgton and Weldon (Scotland Neck 
Branch.) 

Carolina Central 

Wilmington and Weldon 

North Carolina 

Albemarle and Raleigh 

Cape Pear and Yadkin Valley 

Charlotte, Columbia and Augusta 

Pittsboro 

Wilmington, Newbern and Norfolk 

North Carolina 

Albemarle and Raleigh 

Wilmington and Weldon 

Wilmington and Weldon (Fayetteville 
Branch). 

Bowmore and Red Springs 

Cape Fear and Yadkin Valley 

Cape Fear and Yadkin Valley 

Carolina Central 

Cape Fear and Yadkin Valley 



1.03 
1.00 

,50 
1.25 
1.20 
1.00 

.67 
1.89 

.41 

1.65 
.35 

1.49 
.70 
.75 
.50 

1.00 
.34 

1.00 

1.00 

1.00 

1.00 

.13 

1.48 

1.00 

.33 

.49 

.40 

.45 

.65 

1.00 

.20 
LOO 
.50 
.50 
.75 



$12,523.64 



20,101.78 
5,804.63 
4,419.73 
5, 804. 63 
4,341.61 
3, 137. 14 

12,523.64 
2,905.12 
2,905.12 
4, 639. 18 
5, 202. 70 

12,523.64 
4,815.98 



5,329.30 



4,864.39 
6,234.54 



2,128.56 
4,419.73 

16,758.71 
4,864.39 

20,101.78 



957.14 
6,234.54 
6,234.54 
7,000.98 
6,234.54 



$12,899.35 
20,101.78 
10,050.88 
7,255.78 
5, 303. 67 
5,804.63 
2, 908. 88 
5,929.19 

5,134.70 
4,793.44 
1,016.79 
6,912.37 
8,641.88 
9,392.73 
2, 407. 99 

4, 864. 39 
1,811.96 

7,013.04 

7,000.98 

20,287.68 

16,758.71 

632. 37 

9,227.11 

17,025.26 

702. 42 

2, 165. 66 

6,703.48 

2, 188. 96 

13,066.15 

20,287.68 

191.42 
6,234.54 
3,117.26 
3,500.49 
4, 675. 90 



58 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT D— Continued. 



Town. 



Name of Road. 



Dis- 
tance. 



Valuation 
Per Mile. 



Total 

Assessed 
Value. 



Robersonville . 
Randleman — 

Raleigh 

Rennert 

Ruffin 

Roxboro 

Reidsville 

Rocky, Mount- 

Saluda 

Sanford 

Statesville 

Stanly Creek- 
Shelby 

Salem 

Selma 

Salisbury 



Southern Pines 

SilerCity 

Stoneville 

Sylva 

Springhope 

Scotland Neck. 



Albemarle and Raleigh 

High Point, Randleman, Ashboro and 
Southern. 



North Carolina 

Raleigh and Augusta Air Line 

Raleigh and Gaston 

North Carolina 

Wilmington and Weldon (F.) 

Piedmont 

Norfolk and Western 

Piedmont 

Wilmington and Weldon 

Wilmington and Weldon (Nashville Branch). 

Asheville and Spartanburg 

Cape Fear and Yadkin Valley 

Raleigh and Augusta Air Line 

Atlantic, Tennessee and Ohio 

[ Western North Carolina 

1 Statesville and Western 

! Carolina Central 

I Carolina Central 

Ohio River and Charleston 

Northwestern North Carolina 

Norfolk and Western 

I North Carolina 



.20 

.90 

1.00 

2.00 

1.00 

.98 

1.14 

1.13 

.23 

1.00 

1.00 

1.00 

.26 

.74 

.67 

.50 

1.10 

1.36 

.37 

.25 



Wilmington and Weldon (Fayetteville 
Branch). 



North Carolina 

North Carolina 

Yadkin 

Western North Carolina 

North Carolina , 

Raleigh and Augusta Air Line 

Cape Fear and Yadkin Valley 

Norfolk and Western 

Western North Carolina 

Wilmington and Weldon (Nashville Branch). 

Wilmington and Weldon (Scotland Neck 
Branch). 



.92 
1.00 



$4,864.39 
4,210.00 



11,878.76 
19,631.10 



20,287.68 



5, 885. 37 
19,949.21 
20,101.78 

4,341.61 



6,234.54 
11,878.76 
7,450.89 
12,523.64 
2,387.86 
7,000.98 
7,000.98 
4,507.29 
4, 639. 18 
8,851.24 



20,287.68 



1.27 


15,523.64 


1.30 


16,758.71 


1.46 


11,878.76 


1.06 


6,234.54 


1.03 


8.85L24 


1.00 


3,822.65 


.67 


4,341.61 


1.00 





$i, 183. 37 
3,241.75 

1,233.60 
2,375.75 
17,667.99 
16,758.71 
40,575.36 
19,949.21 
5,767.66 
22,742.11 
22,715.00 
998.57 

8. 172. 64 
6,234.54 

11,878.76 
1,937.23 
9, 267. 49 
1,599.87 
3,500.49 
7,701.08 
6,129.92 
1,726.49 
2, 212. 81 
1,233.60 

18,664.66 

16,758.71 
1,603.68 
1,510.66 
15,905.02 
21,786.32 
17,342.99 
6,598.61 
9,116.78 

3. 822. 65 
2,908.88 
7,043.04 



TOWNS, WITH MILEAGE AND VALUATION. 



59 



STATEMENT D— Continued. 



Town. 



Star 

Seaboard 

Tryon City _ 
Trinity 

Tarboro 

Thomasville 

Taylorsville 

Troy 

Victoria 

Vaughan 

Weldon 

Wilmington 



Wallace 

Warsaw 

Wilson 

Whitaker.... 
Windfall .__. 
Williamston. 

Windsor 

Wake Forest 
Winston 

Waco 

Waxhaw 



Name of Road. 



Aberdeen and Ashboro 

Seaboard and Roanoke 

Asheville and Spartanburg. 



High Point, Randleman, Ashboro and 
Southern. 



Albemarle and Raleigh 

Norfolk and Carolina 

Wilmington and Weldon (Tarboro Branch). 

North Carolina 

North Carolina 

Statesville and Western 

Aberdeen and Ashboro 

Asheville and Spartanburg 

Western North Carolina 

Raleigh and Gaston 

Seaboard and Roanoke 

Wilmington and Weldon 

Raleigh and Gaston 

Cape Fear and Yadkin Valley 

Carolina Centra 

Wilmington, Newbern and Norfolk 

Wilmington and Weldon 

Wilmington Dummy Line 

Wilmington and Weldon 

Wilmington and Weldon 

Wilmington and Weldon ^Clinton Branch). 

Wilmington and Weldon 

Wilmington and Weldon 

Norfolk and Southern 

Albemarle and Raleigh 

Wellington and Powellsville 

Raleigh and Gaston 

North Carolina.Midland 

Northwestern North Carolina 

Norfolk and Western 

Carolina Central 

Georgia, Carolina and Northern 



Dis- 
tance. 



LOO 
i.ro 

1.00 
.76 

1.20 
.22 
.25 



1.00 

.42 

.25 

.14 

1.50 

.85 

.30 

1.20 

.40 

.01 

1.00 

1.85 

1.57 

1.25 

.50 

l.OO 

.46 

.81 

1.00 

.50 

.30 

1.50 

1.00 

.94 

1.29 

1.17 

1.00 

.31 



Valuation 
Per Mile. 



$2,670.31 
20,677.57 



Total 

Assessed 
Value. 



4,210.00 

4,864.39 
18,480.46 
18,539.30 



2,387.86 

2,670.31 

8,172.64 

12,523.64 

19,631.10 

20,677.57 

20,101.78 

19,631.10 

6,234.54 



4,419.73 
20,101.78 

4,550.00 
20,101.78 



4,276.15 

20,101.78 

20,101.78 

17,181.45 

4,864.89 

1,728.75 

19,631.10 

2,858.13 

4,639.18 

8,851.24 



10,346.36 



$2,670.31 

20, 677. 57 

8, 172. 64 

3,199.65 

5, 837. 27 
4,065.70 
4,634.82 
1,233.60 

16,758.71 

1,002.90 

667.57 

1,144.17 

18,785.46 

16,686.43 
6,203.27 

24, 122. 13 

7,852.44 

62.34 

7,000.98 

8, 176. 50 

31,559.79 
5,687.50 

10,050.88 

20,101.78 
L 967. 00 

16,282.44 

20,101.78 
8,590.72 
1,459,31 
2,593.12 

19,631.10 
2, 686. 64 
5,984.54 

10,355.95 
7, 000. 98 
3, 207. 37 



60 



BOARD OF RAILROAD COMMISSIONERS. 
STATEMENT D— Continued. 



Town. 



Whiteville _. 
Waynesville 
Washington 

Youngsville 



Name of Road. 



Wilmington, Columbia and Augusta 

Western North Carolina 

Wilmington and Weldon (Washington 
Branch). 

Raleigh and Gaston 



Dis- 
tance. 



1.06 
1.34 

.97 

.50 



Valuation 
Per Mile. 



$12,251.72 
3,822.65 
5,329.30 

19,631.10 



Total 
^ssesse( 
Value. 



$12,986.82 
5, 122. 36 
5,169.42 

9,815.55 



flssessrT)eot of Telegraph Companies. 



STATEMENT F— Showing Connties, Towns and Valuation. 



WESTERN UNION TELEGRAPH COMPANY. 

13.008. 16 miles of Wire, 
Battery and Office Furniture, 

Apportioned as Follows 



., I 



Value $750,000.00 



Alamance 

Alexander ._. 

Anson 

Beaufort 

Bertie 

Bladen 

Brunswick- 
Buncombe 

Burke 

Cabarrus 

Caldwell 

Camden 

Carteret 

Caswell 

Catawba 

Chatham 

Cherokee 

Chowan 

Cleveland . 

Columbus. 

Craven 

Cumberland. 

Currituck 

Davidson 

Davie 

Duplin 



Counties. 



Distance. 



Valuation 
Per MiJe. 



86.15 


$57,656 


9.10 


..„ do 


164.92 


-— do 


6.38 


-—do 


55.36 


— - do 


98.37 


— - do 


106.66 


do 


183.75 


— . do 


85.00 


—.do 


458. 46 


— do 


14.20 


— do 


5.00 


— do 


18.13 


— do 


211.20 


— do 


107.23 


do 


90.00 


— do 


23.50 


do 


4.20 


— do 


149.03 


— do 


372. 6g 


do 


92.20 


do 


271.14 


do 


14.30 


— do 


634.00 


— do 


12.20 


do 


350.00 


do 



Total 

Assessed 

Value 
Counties. 



$4,967.06 

524.66 

9,508.62 

367.84 

3,191.83 

5,671.62 

6,149.58 

10,594.29 

4,900.76 

26,432.96 

818.71 

288. 28 

1,045.30 

12,176.94 

6,182.45 

5,189.04 

1,354.91 

242.15 

8,592.47 

21,487.23 

5,315.88 

15, 632. 84 

824.48 

36,5.53.90 

703. 40 

20, 179. 60 



62 



BOARD OF RAILROAD COMMISSIONERS. 



Western Union Telegraph Company — Continued. 



Counties. 



Durham 

Edgecombe — 

Forsyth 

Franklin 

Gaston 

Gates 

Granville 

Guilford 

Harnett 

Haywood 

Halifax 

Henderson ... 

Hertford 

Iredell 

Jacks )n 

Johnston 

Jones 

Lenoir 

Lincoln _^ 

McDowell 

Macon 

Madison 

Martin 

Mecklenburg. 

Mitchell 

Moore 

Nash 

New Hanover 
Northampton 

Onslow 

Orange 

Pafcquotank ... 

Pender 

Perquimans .. 

Person 

Pitt 

Polk 



Distance. 



160. 45 

495.48 

126.97 
36.00 

338.01 
59.30 
95.80 
, 142. 00 
52.42 
21.60 

421.09 
66.00 
58.12 
98.61 
22.80 

357. 22 
19.78 
45.07 
31.79 

101.07 

2.60 

91.68 

51.68 

80^.97 
5.00 

101.00 
19. 20 

205.49 

300.10 
36.36 

107.85 
12.57 

296.40 
16.30 
39.21 
56.49 
28.50 



Valuation 
Per Mile. 



$57,656 

.— do 

.-. do 

. do 

...do 

do 

— do 

.— do 

— do 

— do 

— QO 

— do 

- . do — 

do 

do 

.._do 

. do 

.— do 

.— do 

— do 

— . do __ 

.— do 

— dp 

.._. do 

do 

— . do 

do 

.— do 

— do 

do 

— do 

— do 

do 

do 

— do — 

— do 

.- do 



Total 



Value 
Counties. 



$9, 250. 90 

28,567.39 
7,320.58 
2,075.61 

19,488.30 
3,419.00 
5, 523. 44 

65,843.15 
3,022.32 
1,245.36 

3i,278.36 
3, 805. 29 
3,350.96 
5, 687. 18 
1,314.55 

20,607.40 
1,140.43 
2,598.55 
1,832.88 
5, 827. 29 
149. 90 
5,285.90 
2, 979. 66 

46,641.97 

288. 28 

5,823:25 

1,106.99 

11,317.73 

17,302.56 

2,096.37 

6,218.19 

724.73 

17,089.23 
939.79 
2,260.69 
3,256.98 
1,643.19 



ASSESSMENT OF TELEGRAPH COMPANIES. 



63 



Western Union Telegraph Company— Continued. 



Counties. 



Randolph 

Richmond- 
Robeson 

Rockingham 

Rowan 

Rutherford _. 

Sampson 

Stanly 

Stokes 

Surry 

Swain 

Union 

Vance 

Wake 

Warren 

Washington. 

Wayne 

Wilkes 

Wilson 



Distance. 



74.30 

218.77 

317.56 

649. 49 

617.99 

25.00 

77.40 

23.00 

41.20 

52.10 

38.50 

126. 54 

82.06 

330.55 

80.74 

3.87 

373. 21 

18.10 

299.05 



Valuation 
Per Mile. 



$57. 656 

— do 

...do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

._-do 

— do 

— do. 

— do 

— do 

— do 

...do 



Total 
Assessed 

Value 
Counties. 



$4, 283. 84 

12,613.40 

18,309.23 

37,446.99 

a5, 630. 83 

1,441.40 

4,462.57 

1,326.08 

2,375.42 

3,003.87 

2,219.75 

7,295.79 

4,731.25 

19,058.19 

4,655.14 

223. 12 

21,517.79 

1,043,57 

17,242.02 



64 



BOARD OP RAILROAD COMMISSIONERS. 



Western Union Telegraph Company— Continued. 



Town. 


Distance. 

Miles. 


Valuation 
Per Mile. 


Total 

Assessed 
Value. 


Aberdeen 


2.00 


»57,656 


S115.31 


Ahoskie 


1.11 
.80 


do 

do 


63.99 


Albemarle 


46.12 


Apex 


1.80 


.— do 


103.78 


Ashboro _.. 


1.07 


.... do 


61.69 


Ashe ville 


22.12 


...-do 


1,275.35 


Ayden 


.30 


.— do 


17.29 


Battleboro 


6.36 


.... do 


366.69 


Benson ._ 


2.50 


...-do 


144. 15 


Bethel 


.27 


— do 


15.56 


Black Greek 


-1.77 
.80 


do 

do _ 


275.01 


Bryson City 


46.12 


Burgaw 


3.30 


.... do 


190. 26 


Burlington 


10.00 


do 


576.56 


Cameron 


1.86 


—.do 


107.24 


Canton 


.57 


-.-.do 


32.86 


Gary 


16.08 


.... do 


927. 10 


Chadbourn _- 


9.03 


.... do 


520.63 


Charlotte 


63.94 


-__. do 


3,686.52 


Cherryville 


1.16 


-. - do 


66.88 


China Grove 


28.84 


— . do 


1,662.79 


Claremont 


3.00 


do 


172.96 


Clinton 


,33 


—.do 


19.02 


Cla> ton _ -- - 


7.91 


.... do 


456.05 


Concord 


6.51 


— do 


375.34 


Conetoe 


.63 


— - do 


36.32 


Conover 


4.00 


.__. do 


230.62 




3.99 
.73 


.... do 

-—do 


230.04 


Clyde 


42.08 


Davidson College . _ _ 


1.83 


do 


105.51 


Dallas 


.76 


.— do 


43.81 


Dillsboro - 


.67 
5.00 


— do 

....do 


38.02 




288.28 


Durham 


5.38 


-...do 


310.18 


Earle's 


1.00 

.93 

1.20 


-..do 

-— do 

— - do _. 


57.65 


Elkin 


53.62 


Elk Park __ _. 


6 9.18 







ASSESSMENT OF TELEGRAPH COMPANIES. 



65 



Western Union Telegraph Company— Continued. 



Town. 



Ellen boro 

Elm City. 

Entield 

Everett 

Faison 

Fair Bluff 

Fayette ville 

Forest City 

Four Oaks 

Franklinton 

Fremont 

Gastonia 

Goldsboro 

Greensboro 

Greenville 

Grifton 

Grover 

Henderson 

Hendersonville — 

Hickory 

High Point 

Hillsboro 

Haygood 

Hope Mills 

Huntersville 

Hot S pri ngs 

Jacksonville 

Jamesville 

Jonesboro 

Kenly 

Kelford 

Kernersville 

Kings Mountain ._ 

Kinston 

Kittrell 

Keyser 

LaGrange 

2 5 



Distance, 

Miles. 


Valuation 
Per Mile. 


Total 

Assessed 
Value. 


1.51 


$57,656 


$87.06 


17.22 


-— do 


992.83 


16.32 


—-do 


940. 94 


.80 


.— do 


46.12 


6.70 


-— do 


386.29 


5.04 


— - do 


290. 58 


18.64 


do 


1,074.70 


.83 


-___do 


47.85 


2.85 


.__. do 


164.31 


2.10 


— do 


121.07 


5.67 


.__. do 


326.90 


11.44 


-—do 


659.58 


17.15 


— do 


988.80 


108.52 


— do 


6,256.82 


.50 


— do 


28.82 


.73 


-.do 


42.08 


8.16 


— do 


470.47 


6.06 


— - do 


349.39 


1.67 


-._- do 


96.28 


8.68 


— do 


500.45 


33.50 


— do 


1,931.47 


.85 


.-. do 


49.00 


4.00 


— . do 


230. 62 


8.12 


— -do. 


468. 16 


.90 


— do . 


51.89 


2.40 


— do 


138.37 


.71 


— do 


40.93 


.48 


— . do 


27.67 


2.94 


— do 


169.50 


3.42 


— . do 


197. 18 


2.50 


do 


144. 13 


4.52 


— do 


260.60 


21.22 


— do 


1,£23.46 


2.83 


do 


163. 16 


1.29 


do 


74.37 


2.06 


do 


118.77 


1.46 


do 


84.17 



66 



BOARD OF RAILROAD COMMISSIONERS. 



Western Union Telegraph Company — Continued. 



Town. 



Laurinburg — 

Lenoir 

Lexingtxan 

Liberty 

Lilesville 

Littleton 

Lincolnton — 

Lowell 

Lucama 

Lumberton __ _ 

Macon 

Madison 

McFarland — 

Maiden 

Manly 

Magnolia 

Marion 

Marshall 

Mebane 

Maxton 

Milton 

Mocksville 

Morehead City 

Monroe 

Mooresville 

Mount Airy — 
Mount Holly _ 
Morrisville — 

Morven 

Morganton 

Mount Olive — 
Murfreesboro- 

Murphy 

Matthews 

Nashville 

Newbern 

New London . 



Distance, 
Miles. 



Valuation 
Per Mile. 



S57.656 

._. do 

-_ do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

._. do 

— do 



ASSPJSSMENT OF TELEGRAPH COMPANIES. 



67 



Western Union Telegraph Company-r Continued. 



Towns. 



Newport 

Newton 

North Wilkesboro- 

Norwood 

Old Fori 

Oxford 

Parmele 

Pikesville 

Pine Level 

Pilot Mountain 

Pineville ' 

Polkton 

Pollocksville 

Plymouth 

Randleman 

Raleigh 

Red Springs 

Reidsville 

Robersonville 

Rockingham 

Rocky Mount 

Roseboro .. 

Rowland 

Roxb'iro 

Salem 

Salisbury 

Saluda 

Sanford 

Seaboard 

Selma 

Scotland Neck 

Shelby 

Siler City 

Smithfield 

Southern Pines 

Spring Hope 

Stanley Creek 



Distance, 
Miles. 



1.40 
3.42 
1.00 
10.00 
2.10 
3.96 

.43 
7.47 
3.60 

.90 
19.33 
5.00 

.50 

.27 

.40 

32.32 

3.00 

33.34 

.60 
8.15 
32. 62 

.74 
3.28 
1.00 
1.71 
44.57 
1.00 
9.32 
3.00 
11.42 
1.00 
5.27 
2.00 

.90 
2.34 

.60 

.83 



Valuation 
Per Mile. 



$o7. 656 

— do 

— do 

...do 

— do 

— do 

._. do 

— do 

— do 

— do ,.. 

— do 

— do 

... do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

— do 



Total 

Assessed 
Value. 



$80.71 
197.18 

57.65 
576.56 
121.07 
22-\31 

24.79 
430. 69 
207.56 

51.89 

1,114.49 

288. 28 

28.82 

15.56 

23.06 

1,863.44 

172.96 

1,922.25 

34.59 

181.61 

1,880.73 

42.66 
189.11 

57.65 

9S.59 
2,569.72 

57. 65 
537.35 
1-2.96 
658. 43 

57. 65 
303. 84 
115.31 

51.89 
134.91 

34.59 

47.85 



68 



BOARD OF RAILROAD COMMISSIONERS. 



Western Union Telegraph Company — Continued. 



Towns. 



Statesville.- 
Stoneville — 

Sylva 

Tarboro 

Taylorsville 
Thomasville 

Trinity 

Tryon City._ 

Vaughan 

Wallace 

Warrenton . 

Warsaw 

Washington 

Waxhaw 

Waynesville. 
Wake Forest 

Weldon 

Whiteville... 

Whitaker 

Williaraston 
Wilmington 

Wilson 

Winfall 

Winston 



Distance, 
Miles. 



6.58 
1.74 

.67 

11.15 

.37 

28.97 

.80 

1.80 

2.61 

6.70 

1.74 

14.20 

J. 00 

.87 

.93 

3.39 

21.13 

6.60 

15.86 

.46 

48.08 

16.98 

.50 



Valuation 
Per Mile. 



$57. 656 

.__- do 

-— do 

-—do 

.— do 

.... do 

.— do 

— do 

— do 

— do 

.... do 

— do 

._. do 

— do 

— do 

- do 

. do 

. do 

— do 

-._. do 

— do 

— do 

.— do 

...-do 



Total 

Assessed 
Value. 



$379.37 
100.32 

38.62 
642.86 

21.33 
1,670.29 

46.12 
103.78 
150.48 
3,S6. 29 
100.32 
318.71 

57.65 

50.16 

53.62 

195. 45 

1,218.27 

380.52 

914.42 

26.52 

2,772.10 

987.99 

2«.82 
514.86 



ASSESSMKNT OF TELEGRAPH COMPANIES. 



69 



ATLANTIC POSTAL TELEGRAPH CABLE COMPANY. 



STATEMENT G.— Showing Counties, Towns and Valuation. 



1,502.72 miles wire. Valuation, $50,000.00. 
Apportioned as Follows : 



County. 


Distance. 


Valuation 
Per Mile. 


Total 

Assessed 

Value. 


Bladen 


95.20 

27.80 

17.00 

212.08 

13.50 

85.05 

66.50 

147.00 

7.00 

4.00 

36.40 

121:40 

108.24 

142.10 

253. 90 


$33,273 
do 

— do 

—-do 

— do 

do.. 

do 

—-do 

— do 

do 

— do 

— do 

— do 

— do 

do 


$3, 167. 30 


Brunswick _ _ 


924.90 


Columbus - . 


665. 59 


Cumberland 


7, 055. 90 


Durham 


449 14 


Franklin 


2,829.61 
2,212.45 


Halifax 


Harnett 


4,890.69 




232.89 




133.08 




1,211.02 




4, 038. 97 




3,601.14 
4,727.66 




Wake - - - 


8,447.25 
5, 507. 84 


Warren _ - . 


165.55 — do 







STATEMENT G.— Continued. 



Towns. 


Distance. 


Valuation 
Per Mile. 


Total 

Assessed 

Value. 


Durham 


.60 
15.75 
5.25 
8.75 
10.50 
19.82 
5.60 


$33,273 

— do 

-.-do 

— do 

— do 

— do 

— do 


$19.96 


Fayette ville 


524. 00 


Franklinton 


174. 66 


Henderson 


291.11 


Littleton 


349 33 


Raleigh ._ 


659.41 


Warrenton __. 


186 31 







70 



BOARD OF RAILROAD COMMISSIONERS. 



STATEMENT H.— Miscellaneous Telegraph Companies. 



Name of Company. 


Number 
Miles. 


Total 

Value of 

Line. 


Battery, 
Etc. 


Total. 


Appor- 
tionment. 


Carthage Telegraph Line 


10 


$200.00 


$10.00 


$210.00 




Moore County 


$210. 00 


Pittsboro Telegraph Line 

Chatham County. - 


12 


240.00 


10.00 


250.00 




250.00 


* Pittsboro 










5 21 


Louisburg Telegraph Company 


10 


200.00 




200.00 




Franklin County 




200. 00 


United Telegraph Company 

Hertford County 


6 


75.00 


10.00 


85.00 




26.66 


Northampton County 

Cleveland Springs Telegraph Company- 
Cleveland County 


2 


40.00 


10.00 


50.00 


53.34 


50.00 


Shelby 










15.00 


Oak Ridge and StokesdaleTel. Co 

Guilford County 


6 
















140.00 


Elizabeth City and Norfolk Tel. Co 

Camden County 


52 


1,300.00 


50.00 


1,350.00 




259. 60 


Pasquotank County 










493. 30 


Perquimans County 










467. 30 


Chowan County . — 










129. 80 


Lenoir and Blowing Rock Tel. Co 

Caldwell County 


22 


440. 00 


40.00 


480.00 




436. 37 












43.63 


Swepsonville Telegraph Company 

Alamance County 


4 


80.00 












80.00 


Carolina Postal Telegraph Company — 
Cumberland County 


8 


160.00 


5.00 


165 .-00 


165.00 
























500.00 















ASSESSMENT OF STEAMBOAT AND CANAL PROPERTY. 



71 



flssessmeQt of Steamboat and Canal Property 



STATEMENT I. —Steamboat and Canal Property. 



Owners. 


Kind of 
Property. 


Location, 
County. 


Valua- 
tion. 


Chas. Wessell 


One Steamer 

One Steamer . 


New Hanover 

Craven 


81,100.00 




600.00 


J C Whitty 


One Steamer . 


Craven . 


L 000. 00 


Cape Fear River Transportation Co 


Two Steamers 


Cumberland 


5,100.00 


J.L.Basnigiit 


One Steamer 


Craven 


250.00 


Fairfield Canal and Transportation Co 

Old Dominion Steamship Co 


Canal 


Hyde 


7,376.00 
1 250 00 


Five Steamers etc 


Pitt 




Edgecombe 


500. 00 






Beaufort 


15,000.00 
10,928.57 






Hyde 






Camden 


1,428.57 
1,428.57 






Pasquotank 






Dare 


5,428.57 


' 




Pamlico 


1,428.58 








6,428.57 
1,428.57 






Carteret 


J. G.<fe F.Wood . 


Five Steamers 


Chowan 


3,000.00 


Tar River Oil Co 


One Steamer. 


Edgecombe 

Pender 


2,500.00 
2,500.00 


Black River Packer Co 


One Steamer 


Cape Fear River T.and Trans. Co __. 


Three Steamboats.. 


Brunswick 


23,500.00 


Albemarle and Chesapeake Canal Co 

Wilmington Steamship Co 




Currituck _ - 


100,000.00 
7,142.85 


Steamer and Wharf 


Pasquotank 

Camden 






7,142.85 






Dare 


7,142.85 






Hyde 


8,142.85 
7,142.85 






Carteret 






Pamlico 


9,642 85 






Craven ___ 


7, 142. 85 


W.H.Ward 


One Steamer 

do 


Pender 

Craven 


500 00 


Broadus & Ives _ 


800.00 


J. J. Lassiter 


. . do ._ 




1,550.00 


Moccasin River Steamboat Co 


do 


Pitt - 


1,000.00 


Roanoke and Tar River Steamboat Co — 


„__do - 




6,461.00 
800.00 


D. W. Roper & Co___ 


do _ 


Chowan 



72 



BOARD OF RAILROAD COMMISSIONERS. 



Assessment of Steamboat and Canal Property — Continned. 



Owners. 



H.G.Ward 

J.W.Harper 

J. H. Guard, John Thomson 

Branning Manufacturing Steamboat Co. 
Fairfield and Elizabeth City Trans. Co.- 
Lake Drummond Canal Co 



Newbern and Snow Hill Steamboat Co 

Walter Taft 

G.C. Hewlett 



Kind of 
Property. 



One Steamer 

do 

-__. do 

.— do 

.— do 

Canal 



Steamers 

. do 

. do 



Location 
County. 


Valua- 
tion. 


Chowan 


$650.00 


Brunswick 


8,000.00 


Pasquotank 


500.00 


Chowan 


7,500.00 


Hyde 


1,000.00 


Camden 


8,000.00 


Pasquotank 


8,000.00 


Craven 


2,550.00 


New Hanover 


700.00 


New Hanover 


500.00 



ASSESSMENT OF PULLMANS PALACE CAR COMPANY. 



73 



Assessmeot of Pullmao's Palace Car Company. 



STATEMENT J — Showing the total number of cars required to operate each line through the 
State, the total value of the cars in each line, the number of miles of each line within the 
State of North Carolina, and the proportional value of the cars in each line according to 
the number of miles in North Carolina, with a recapitulation showing the total number 
of cars operated on each Railroad through the State, the total mileage of lines running 
over such Railroad, the total number of cars required to operate them, with the total value 
of such cars, the total number of miles of all lines, running over such roads in the State 
of North Carolina, and the proportional value of such cars according to the mileage in 
the State of North Carolina, and the apportionment to the different Counties. 



ATLANTIC COAST LINE— Standard Sleeping Cars at $5,000 Each. 



Number and Name of Line. 


Total 
Mileage 
of Line. 


Total Cars 
Required. 


Total 

Value of 

Cars. 


Mileage 
in North 
Carolina. 


Proportion 

of Value 

According to 

the Mileage 

in North 

Carolina. 


186 Jersey City and Port Tampa 

187 Wilmington and Wilson 


1,290 
108 
212 

1,021 
920 

1,024 
718 


5 
1 
2 
4 
4 
5 
3 


$2-, 000.00 
5,000.00 
10,000.00 
20,000.00 
20,000.00 
25,000.00 
15,000.00 


181.78 
108.00 
65.16 
181.78 
181.78 
181.78 
9.18 


$3,522.79 
5, 000. 00 


189 Wilmington and Charleston 

190 Jersey City and Jacksonville 

196 Jersey City aiidMacon 


3,073.57 

• 3,550.39 

3,951.74 

4,437.99 

191.78 


197 Jersey City and Jacksonville 

595 Washington and Atlanta 




5,296 


24 


120,000.00 


909.46 


23,728.27 



SOUTHERN RAILWAY— Standard Sleeping Cars at $5,000 Each. 



560 Jersey City and New Orleans. 


1,368 


5 


$25,000.00 


177.3 


$3,240.13 


561 Jersey City and New Orleans. — 


1,368 


5 


25,000.00 


177.3 


3,240.13 


564 Richmond and Charlotte 


283 


3 


15,000.00 


135.9 


7,203.18 


565 Jersey City and Jacksonville — 


997 


4 


20,000.00 


147.4 


2,956.87 


566 Jersey City and Tampa 


1,209 
81 


5 


25,000.00 
10 000.00 


147.4 


8,047 97 


568 Greensboro and Raleigh 


2 


81.0 


10,000.00 
9,470.47 


569 Pinner's Point and Nashville ..„ 


982 


4 


20, coo. 00 


465.0 


570 Jersey City and Memphis _. 


1,293 


5 


25,000.00 


177.3 


3,428.07 


571 Charlotte and Augusta 


191 


2 


10,000.00 
25,000.00 


11 5 


602. 09 


572 Jersey City and Nashville 


1,095 


5 


277.5 


6,335.62 


590 Cincinnati and Jacksonville 


879 


4 


20,000.00 


88.3 


2,009.10 




9,746 


44 


220,000.00 


1,885.9 


51,533.63 



74 



BOARD OF RAILROAD COMxMISSIONERS. 



SEABOARD AIR LINE. —Standard Sleeping Cars at $5,000 Each. 



Number and Name of Line. 


Total 

Mileage 

of 

Line. 


Total 

Cars 

Required. 


Total 

Value of 

Cars. 


Mileage 

in 

North 

Carolina. 


Proportion 

of Value 

According to 

the Mileage 

in North 

Carolina. 


595 Washington and Atlanta 

596 Portsmouth and Chester . 


718 

371 

886 

1,975 


3 
2 
5 


$15,000.00 
10,000.00 
25,000.00 


260.6 
309.5 

278.9 . 


$5,444.29 
8 342.33 


597 Portsmouth and Nashville 


7,869,64 




10 


50,000.00 


849.0 


21,656.25 



RECAPITULATION. 



Atlantic Coast Line 

Southern Railway . 


5,296 
9,746 
1,975 


24 
44 
10 


$120,000.00 

220,000.00 

50,000.00 


909.46 
1,885.9 
849.0 


$23,728.27 
51 533 63 


Seaboard Air Line 


21,656.25 




17,017 


78 


390,000.00 


3,644.36 


96,918.15 



Apportioned to the following Counties : 

PULLMAN'S PALACE CAR COMPANY. 



County. 


Valuation. 


Wake. -- -- -- 


$5,249.04 
2,343. 46 






Orange — 


2, 220. 12 


Alamance 


2,590.14 

5,136.82 

863. 38 


Guilford 






Rockingham 


2,713.45 
3,876.76 


Davidson. _ _._ __ . 


Rowan 


3,260.16 


Cabarrus .. 


2,543.46 




4,250.20 



ASSESSMENT OF PULLMAN S PALACE CAR COMPANY. 



75 



PULLMAN'S PALACE CAR COMPANY— Continued. 



County. 


Valuation. 




18,206.84 




1,110.06 


Iredell - -- - 


1,472.52 




1,682.88 


Burke - - 


2,173.72 


McDowell — - - — 


2,384.08 




2, 874. 96 




2,243.84 


Northampton - . 


2,058.05 


Halifax - 


3,774.90 


Warren . -_ _. - . _ _ 


1,766.40 


Vance - 


1,612.80 


Franklin __ ' 


998.40 


Chatham 


1,228.80 


Moore. 


2,918.40 




3,071.25 


Union 


1,689.60 
2,073.00 


Nash 


941.05 


Edgecombe 


1,455.50 


Wilson 


3,526.75 


Johnston 


2, 766. 50 


Harnett 


513.30 


Cumberland . 


2,737.60 


Robeson ._ _ ._ 


2,908.32 


New Hanover . ___ _ 


750.94 


Brunswick _ 


550.32 


Columbus - . __. 


2,293.38 
1,130.22 


Pender . . _ 


Duplin . -. _ _ 


1,521.95 


Wayne. __ . .__ _ _ 


1,391.49 


Randolph __ _ . _ _ 


123.34 


Bertie 


280.00 


Hertford .. 


320. 00 


Gates 


320.00 







76 



BOAED OF RAILROAD COMMISSIONERS. 



Compilation from Railroad Returns for the Year Ending June 30, 1898. 



Atlantic Coast Line System 



Lines Owned, Leased, Controlled and Operated in North Carolina. 



Wilmington and Weldon Railroad and Branches 

Wilmington.Columbia and Augusta Railroad, including Conway Branch. 

Cheraw and Darlington Railroad 

Petersburg Railroad 

Norfolk and Carolina 

Spurs 



Miles. 




614.55 



812.13 



WILMINGTON AND WELDON RAILROAD COMPANY. 



NAME. 


TERMINALS 


Miles of 

Line for 

each Road 

named. 


Miles of 

Line for 

each Class 




From— 


To- 


of Roads 
named. 


Wilmington and Weldon. __ 


Wilmington 

Contentnea 

Rocky Mount 

Pender 

Parmele 


Weldon . 


161.40 

116.20 
68.27 
85.82 
25.39 
19.20 
18.43 
21.50 
86.21 


161.40 


Branches. 

Wilson and Fayetteville 

Tarboro 


N. and S. C. State Line- 
Plymouth 

Kinston 




Scotland Neck and Kinston 




Washington 


Washington . 






Rocky Mount 




Clinton 


Clinton 

Smithfield 




Midland, N.C 


Goldsboro 

Wilmington _^ 




Newbern 










436.02 
15 88 


Spurs to Mills, etc 


15.88 
1.25 








1.25 












614.55 



WILMINGTON AND WELDON RAILROAD COMPANY. 



77 



CAPITAL STOCK. 



Number of shares authorized— CJommon 

Par value of shares 

Total par value authorized 

Total amount issued and outstanding 

Dividends declared during year 

Rate of interest, 8 per cent 



$.S0,000 

$100.00 

3,000,000.00 

3,000,000.00 

240,000.00 



FUNDED DEBT. 
MORTGAGE BONDS, MISCELLANEOUS OBLIGATIONS, AND INCOME BONDS. 





TIME. 


Amount of 
Authorized 

Issue. 


Amount 

Issued. 


Amount 
Outstanding 


Cash Real- 


Class of Bond or 
Obligation. 






izedon 
Amount 
Issued. 


First mortgage 

First mortgage 


1885 
1897 
1897 
1897 

1888 
1887 


1935 
1935 
1944 
19.7. 

1937 


«3, 062, 000. 00 
938,000.00 
500,000.00 
500,000.00 

380,000.00 
2,500,000.00 


$3,062,000.00 
938,000.00 
500,000.00 
500,000.00 

380,000.00 
2,500,000.60 


$3,062,000.00 
938,000.00 
500,000.00 
500,000.00 

380,000.00 
2,500,000.00 


$3,062,000.00 
938,000.00 
500,000.00 
500,000.00 

380,000.00 


First mortgage 


First mortgage 

Certificates of indebted- 
ness- 
Special trust certificates- 
Certificates of indebted- 


ness. 




Grand total 


7,880,000.00 


7,880.000.00 


7,880,000.00 


5,380,000.00 











INTEREST. 




Class of Bond or Obligation. 


Rate 
CeSt. 


When 
Payable. 


Amount 

Accrued 

During Year. 


Amount 
Paid Dur- 
ing Year. 


First mortgage 


5 
4 
4 
4 

6 

7 




$153,100.00 
37,520.00 
20,000.00 
10,000.00 

22,800.00 
175,000.00 




First mortgage _ _ _ 




First mortgage. .. - . — 






First mortgage 






Certificates of indebtedness- 
Special trust certificates ... __. 






Certificates of indebtedness 










Grand total 






418,420.00 


418,420.00 







78 



BOARD OF RAILROAD COMMISSIONERS. 



RECAPITULATION OF FUNDED DEBT 

Mortgage bonds— amount issued 

Amount outstanding 

Interest— amount accrued during year 

Amount paid during year 



$7,880,000.00 

7,880,000.00 

418,420.00 

418,420.00 



CURRENT ASSETS AND LIABILITIES. 



ASSETS. 

Cash 

Bills receivable 

Due from agents 

Due from solvent companies and individuals.. 

Cash deposited to pay coupons 

Total ... 

LIABILITIES 

Audited vouchers and accounts .. .. 

Wages and salaries 

Dividends not called for 

Matured interest coupons unpaid 

Miscellaneous 

Total current liabilities 

Balance cash assets 

Total —^ 



$18,807.41 
7,576.79 

80, 995. 81 
518,681.04 

96,625.00 



702,686.05 



$19,336.94 
71,918.36 
3,548.50 
98,650.63 
54,433.00 



247,887.43 
454,798.62 



r02,686.05 



RECAPITULATION. 
FOR MILEAGE OWNED. 



Account. 


Total 

Amount 

Outstanding. 


Apportion- 
ment to 
Railroads. 


AMOUNT PER MILE. 


Miles. 


Amount. 


Capital Stock — _ 


$3,000,000.00 
7,880,000.00 


$3,000,000.00 
7,880,000.00 


613.30 
613.30 


$4,892.00 




12,848.00 






Total - _ — __ _ 


10,880,000.00 


10,880,000.00 


613.30 


17,740.00 







WILMINGTON AND WELDON RAILROAD COMPANY. 



79 



COST OP ROAD, EQUIPMENT, AND PERMANENT IMPROVEMENTS. 



Expenditures During Year. 



Charged to construction or equipment 

Total cost to June 30, 1897 

Total cost to June 30, 1898 

Cost per mile 



Amount. 

$513,415.00 

10,802,242.32 

11,315,657.32 

18, 450. 44 



INCOME ACCOUNT. 
[FOR ROADS MAKING OPERATING REPORTS]. 





$2,200,043.83 
1,240,450.11 




Less operating expenses . ._ __ .. . 






- 


Income from operation ._ 




959,593.72 


Miscellaneous income— less expenses 


31,805.75 






Income from other sources 




31 805 75 








Total income „ . . 


991,399.47 


Deductions from Income— 

Interest on funded debt accrued .- _ 


418,420.00 
62,750.06 


Taxes 








Total deductions from income _ 




481 170 06 








Net income . . __ .. 


510,229.41 


Dividends, per cent common stock ._ 


240,000.00 






Total : 




240,000.00 






Surplus Irom operations of year ending June 30, 1898 _ 


270,229.41 
584,050.95 

36 175 58 


Surplus on June 80, 1897, (from "General Balance Sheet," 1897 




Report). 
Additions for year 










Surpluson June30, 1898,(forentryon "General Balance Sheet ". 


890,455.94 



80 



BOARD OP RAILROAD COMMISSIONERS. 



EARNINGS FROM OPERATION. 



Item. 


Total 
Receipts. 


Deductions, 

Account of 

Repayments, 

etc. 


Actual 
Earnings. 


Passenger— 

Total passenger revenue — ._ 






$454,114.63 
109,495.38 

73,485.21 
5, 202. 86 


Mail - 












Extra baggage and storage 












Total passenger earnings . 


642,298.08 








Total freight earnings .- 


1,494,267.70 










2,186,565.78 

2,516.05 

4,818.47 
20,962.63 
35 150 90 


Other Earnings from Operation— 

Car mileage— balance- _ . 






Telegraph companies . 






Rents from tracks yards and terminals 






Other sources _ 














Tolal other earnings - - 


63,478.05 








Total gross earnings from operation — en- 


2,200,043.83 


tire line. 







RENTALS RECEIVED. 

Tracks— situated fSelma to Tarboro, leased by Southern Railway Company, $20, 962. 63. 

MISCELLANEOUS INCOME. 



Item. 



Net Miscel- 
laneous 
Income. 



Interest, rents, etc 

Operating hotels 

From lease of the Wilmington, Columbia and Augusta Railroad Company 
Total 



$22,718.09 

822. 65 

8,265.01 



31,805.75 



OPERATING EXPENSES. 



Item. 



Maintenance of way and structures 

Maintenance of equipment 

Conducting transportation 

General expenses — 

Grand total 

Percentage of expenses to earnings 



Amount. 



$354, 132. 20 

310, 428. 69 

518,608.69 

57,280.53 



1,210,450.11 



56.4 



WILMINGTON AND WELDON RAILEOAD COMPANY. 



81 



COMPARATIVE GENERAL BALANCE SHEET. 



JUNE 30, 1897. 


ASSETS. 


YEAR ENDING JUNE 30,1898. 


Total. 


Total. 


Increase. 


Decrease. 




( Cost of road — _. ) 


$11,315,657.32 
702,686.05 


$513,415.00 

282,842.15 




«10,802,2J2.3^ 
419,843.90 


( Cost of equipment j 









11,222,086.22 


12,018,343.37 


796, 257. 15 




LIABILITIES. 

Capital stock. 




8,000,000.00 


$3,000,000.00 

7,880,000.00 

247,887.43 

890,455.94 






7,880,000.00 


Funded debt ._ — 


$500,000.00 




258,035.27 
581,050.95 


Current liabilities __ 


$10,147.84 


Profit and loss --._.-.__ 


306,404.99 


Grand total _. _._ 




11,222,086.22 


12,018,343.37 


796,257.15 









EMPLOYEES AND SALARIES. 



Class. 



Number. 



Total 
Number 
of Days 
Worked. 



Total Yearly 
Compensa- 
tion. 



Average 
Daily 

Compen- 
sation. 



General administration 

Maintenance of way and structures 

Maintenance of equipment 

Conducting transportation 

Total (including "General OfBcers ") 



485 
291 
537 



1,402 



32,485 
155,030 

90,792 
178, 694 



$30,051.06 
129,091.44 
137, 605. 32 
260,518.90 



457,001 



557,266.72 



$0.92 



1.51 
1.46 



1.22 



82 



BOARD OP RAILROAD COMMISSIONERS. 



PASSENGER AND FKEIGHT AND TRAIN MILEAGE. 



Item. 



Column for 
Ton n aye, 

No. Passen 

ger>!, No. 

Trains, 

Milewge, 

No. Cars. 



Columns for Revenue 
and Rales. 



Passenger Traffic— 

Number of passengers carried earning revenue 

Number of passengers carried one mile 

Number of passengers carried one mile per mile of road. 

Average distance carried 

Total passenger revenue 

Average amount received from each passenger 

Average receipts per passenger per mile 

Total passenger earnings 

Passenger earnings per mile of road 

Passenger earnings per train mile 

Freight Traffic— 

Number of tons carried of freight earning revenue 

Number of tons carried one mile 

Number of tons carried one mile per mile of road 

Average distance haul of one ton 

Total freight revenue 

Average amount received for each ton of freight 

Average receipts per ton per mile 

Total freight earnings 

Freight earnings per mile of road 

Freight earnings per train mile 

Passenger and freight revenue 

Passenger and freight revenue per mile of road 

Passenger and freight earnings 

Passenger and freight earnings per mile of road 

Gro^s earnings from operation 

Gross earnings from operation per mile of road 

Gross earnings from operation per train mile 

Operating expenses 

Operating expenses per mile of road 

Operating expenses per train mile 

Income from operation 

Income from operation per mile of road 



458,410 

18, 550, 105 

30,185 



1,044,853 

83, 970, 298 

186,637 

80.3 



Dollars. 



454,114 

1 



612,298 
1,045 



Cents 



1,491, 



1,494,267 

2,481 

2 

1,948,382 

3,170 
2,136,565 

3,476 
2,^00,043 

3,579 

1 

1,240,450 

2,018 



959,593 
1,561 



Milts. 



Cheraw and DarliQgton Railroad CorT)pany. 



PROPERTY OPERATED. 



Name. 




TERMINALS. 


Miles of 
Line for 


From 


To 


each road 
nnmed. 






VVadesboro 

Hartsville 


()J.52 


Branches — 
Harlsville 


Floyd 


10.00 


Gibson 


Darlington 


Gibson 


36.64 


Spurs to ni'Usand factoiies 




].88 












Total 


Uo.04 







FUNDED DEBT. 
xMORTGAGE BONDS, MISCELL VNEOUS OBLIGATIONS, AND INCOME BONDS, 



■ 


TIME. 






Amount 
Issued 


Amount 
Outstanding 


Cash Real- 


Chiss < f H <nd or 
Obligitiou. 


C 0) 


c , 


Authorized 
I.ssue. 


ized on 
Amount 
Issued. 


First mortgMge 

First in< rtgHg-p — Division 
A. C. it N. R. R 


18S8 
1895 


1938 
!■ 15 


1100,000.00 
2.-,0,000.00 


$366,000.00 
250,000.00 


$366,00^00 
250,000.00 


S366,000.00 
250,000.00 


Grnnd total 


650,000.00 6 6,000.00 


616,000.00 


616,000.00 








INTEREST. 


Class of Bond or Obligation. 


Kate 

p.-r 
Cent. 


When 
Payable. 


Amount 

Accrued 

During Year 


Amount 
Paid Dur- 
ing Year. 


First aiortgiige 

First nnorl gage— Division A.C.& N.R. R 


5 
5 


Apr. & Oct.— 
Nov. & Sept _ 


$18,300.00 
12,500.00 


$18,300.00 
12,500.00 




30,800.00 


80,800.00 















84 



BOARD OF RAILKOAD COMMISSIONERS. 



CAPITAL STOCK. 



Number of shares authorized— Common 

Par value of shares 

Total par value authorized 

Total amount issued and outstanding 

Dividends declared during yeir 

Rate of interest, 3 per cent 



8,000 

$50.00 

400, 000. 00 

400, ono. 00 

12,000.00 



RECAPITULATION OF FUNDED DEBT. 



Mortgage bonds— amount issued 

Amoui t outstanding 

Interest— amount accrued during year 
Amount paid during year 



$616,000.00 
616,000.00 
30,800.00 
30,800.00 



CURRENT ASSETS AND LIABILITIES. 



ASSETS. 

Cash 

Due from agents 

Due from solvent companies and individuals | 200/24,' i 

Total 

LIABILITJES. 

Wages and salaries 

Dividends n< t called for 

Matured interest coupons unpaid (including c >aparis due Juiy 1) 

Miscellaneous 

Total— current liabilit ies ^ 

Balance— cash assets 

Total 



$2,339.64 


2,657.55 


73,421.46 


78,418.65 


$2,381.80 


1,517.00 


8,975.00 


9,990.00 


22,863.80 


55,554.85 


7S,418.65 



RECAPITULATION. 



Account. 


Total 

Amount 

Cutis tanding. 


Apportion- 
ment t'> 
Railroads. 


AMOUNT PER MILE OF LINE. 


Milts. 


Amount 


Capi'al stock 


$400,000.00 

ei^oro.f^o 




113.01 
113.01 


$3,538.00 
5 450 00 


Bonds 










Total 


1,016,000.00 


$1,016,000.00 


113.01 


8,988.00 





(HKKAW AND DARLINGTON KAILROAD COMPANY. 



85 



INCOME ACCOUNT— Entire Line. 



(7rrr»<!«i pjirnlnas frnm nnprn.t.ion 


$148,650.82 
91,352.40 




r.p<;<! onprjit.lnp" pirnpnsps 














Income from operation 




$57, 298. 42 


M isppllfl npnn-s irn^nmp Ipss PTrnenses 


1,969.05 














Income from other sources 




l,969.f>5 














Total income 


59, 267. 47 


Deductions from Income: 

Interest on funded debt accrued 


30,800.00 
4,5K98 


Taxes 






le 








Total deductions from incon 




33 315 98 
















23,951.49 


Dividends, three per cent, common st 


ock- 






12,000.00 


Total 




12,000.00 
11,951 49 


Surplus from operations of year ending J 

Surplus on June 30,1897 [from " General 
Report]. 


une 30, 
Balan 


1898—.- 




ce Sheet," 1897 




145,662.24 




6,000.00 




'General Balance Sheet,"] 




Surplus on June 30, 1898, [for entry on 


151 613 73 







EARNINGS FROM OPERATION— Entire Line. 



Item. 


Total 
Receipts 


Deductions, 

Account of 

Repayments, 

Etc. 


Actual 
Earnings 


Passenger : 






$22,840.95 


Mail . _ 






7,055.55 


Express - - - 






1,028.42 


Extra baggage and storage _ - .- 




433.58 








Total pas.senger earnings ., 






31,358.50 










Total freight earnings - _ 


115,830.15 

147,188.65 


Freight: 

Total passenger and freight earnings 






Other Earnings from Operation : 
Telegraph companies 


---- - 




678.31 








783. 86 












1,462.17 


o"- 










148,650.82 










86 



BOARD OF RAILROAD COMMISSIONERS. 



COST OF ROAD, EQUIPMENT, AND PERMANENT IMPROVEMENTS. 



Grand Totax Cost Construction, Equipment, Etc 

Total cost to June 30, 1897 - 

Total cost to June 30, 1898 

Cost per mile 



$1,112,058.88 

1,112,058.88 

9,837.75 



MISCELLANEOUS INCOME. 



Interest on balances, rents, etc 



SI, 969. 05 



OPERATING EXPENSES. 



Operating Expenses: 

Maintenance of ways and structures 

Maintenance of equipment 

Conducting transportation 

General expenses 

Grand total 

Percentage of expenses to earnings— Entire Line 



S31,976.90 

5,718.35 

46,658.25 

6,998.90 



91,352.40 



61.5 



EMPLOYEES AND SALARIES. 



Class. 


Number. 


Total 
Number 
of Days 
Worked. 


Total Yearly 
Compensa- 
tion. 


Average 

Daily 
Compen- 
sation. 


General administration 


92 
60 
62 


33,580 
19,303 
19,804 


81,382.32 
14,511.32 
25,175.36 


$0.13 


Maintenance of way and structure? 


.75 




1.27 






Total (including "General Officers") 


214 


72,687 


44,069.00 


.60 



CHERAW AND DARLINGTON RAILROAD COMPANY. 



87 



PASSENGER AND FREIGHT, AND TRAIN MILEAGE— Entire Line. 



Item. 



Passenger Traffic— 

Number of passengers carried earning revenue 

Number of passengers carried one mile 

Number of passengers carried one mile per mile of roa d 

Average distance carried 

Total p3ssenger revenue 

Average amount received from each passenger 

Average receipts per passenger per mile 

Total passenger earnings 

Passenger earnings per mile of road 

Passenger earnings per train mile 

Freight Traffic— 

Number of tons carried of freight earning revenue 

Number of tons carried one mile 

Number of tons carried one mile per mile of road 

Average distance haul of one ton 

Total freight revenue 

Average amount received for each ton of freight 

Average receipts per ton per mile 

Total freight earnings t 

Freight earnings per mile of road 

Freight earnings per train mile 

Passenger and Freight— 

Pr^ssenger and freight revenue 

Passenger and freight revenue per mile of road 

Passenger and freight earnings 

Passenger and freight earnings per mile of road 

Gross earnings from operation 

Gross earnings from operation per mile of road 

Gross earnings from operation per train mile 

Operating expenses 

Operating expenses per mile of road 

Operating expenses per train mile 

Income from operation 

Income from operation per mile of road 



Column for 
Tonnage, 

No. Passen- 
gers, No. 
Trains, 
Mileage, 
No. Cars. 



45,861 

883,837 

7,814 

195 



85,542 

2,312,291 

20,721 

2,738 



Columns for Revenue 
and Rates. 



Dollars. 



22,840 



31,358 

277 



115,830 
1 



115,830 

1,024 

1 

138, 671 

1,226 

147, 188 

1,302 

148,650 

1,315 

1 

91,352 



Cents 



57, 2) 



506 



Mills. 



74 




65 




09 




82 




03 




18 


090 


40 




14 




72 


571 


42 




89 





BOARD OF RAILROAD COMMISSIONERS. 



COMPARATIVE GENERAL BALANCE SHEET. 



JUNE 30, 1897. 


ASSETS. 


YEAR ENDING JUNE 30, 1898. 


Total. 


Total. 


Increase. 


Decrease. 




( Cost of road - _ ^ 


$1,112,058.88 
78,418.65 






H, 112, 058. 88 


I Cost of equipment j 






$5,370.49 




73,048.16 


Cash and current assets 






Grand total 




1.185,107.04 


1,190,477.58 


5,370.49 






LIABILITIES. 

Capital stock _ 




400,000.00 


$400,000.00 

616,000.00 

22,862.80 

151,613.73 


N 




616,000.00 


Funded debt 






23,444.80 
145,662.24 


Current liabilities 




$581 00 


Profit and loss 


$5,951.49 




Grand total 




1,185,107.04 


1,190,477.53 


5,370.49 


581 00 







Tl^e Norfolk QQcI CaroliQa Railroad CorT)pany 



PROPERTY OPERATED. 



Name. 


TERM] 

From— 


NALS. 

To- 


Miles of 
♦Line for 
Each Road 

Named. 


Miles of 
Line for 

Each 

Class of 

Roads 

Named. 


A. Main Line 


Pinners Pt., Va.- 
Bruce, Va 

Driver 

Armistead, Va __. 


Tarboro, N. C 

Pig Pt. and Belle 
ville, Va. 

Bennetts Pasture 
Va. 

S.andR.K.,Va ... 


100.49 
6.53 

1.55 

1.13 
1.63 


100 49 


B. Pig Point Branch 

Bennetts Pasture Branch 

To S.and R. R. R 

Spurs to Mills and Factories .— 


10.84 








Total __ 


111.33 













FUNDED DEBT. 





TIME. 




Amount 
Issued. 


Amount 
Outstanding 


Cash Real- 


Class of Bond or 
Obligation. 


Date 
of 

Issue. 


When 
Due. 


Authorized 
Issue. 


ized on 

Amount 

Issued. 


First mortgage 

Second mortgage 

Total • 


1889.' 

Jan. 1. 

1896. 


Ap. 1. 

1939. 

Jan. 1. 
1946. 


51,500,000.00 
500,000.00 


$1,320,000.00 
400,000.00 


$1,320,000.00 
400,000.00 




$360,000.00 


Mortgage bonds 






2,000,000.00 


1,720,000.00 


1,7^0.000.00 


360,000.00 




INTEREST. 


Class of Bond or Obligation. 


Rate 


When 
Payable. 


Amount 

Accrued 

During Year. 


Amount 

Paid During 

Year. 


First mortgage _. 


5 per ct. 
5 per ct. 


A pr. and Oct. 
Jan. and July 


$66,000.00 
20,000.00 


$66,000.00 


Second mortgage 


20,000.00 






Total : 
Mortgage bonds 






86,000.00 


86,000.00 















90 



BOARD OF RAILROAD COMMISSIONERS. 



RECAPITULATION OF FUNDED DEBT. 

Mortgage bonds— amount issued 

Amount outstanding _• 

Id terest— amount accrued during year ^ 

Ainount paid during year 



$1,720,000.00 

1,720,000.00 

86,000.00 

86,000.00 



CAPITAL STOCK. 



Description. 


Number of 
^ Shares 
Author- 


Par 

Value 

of 
Shares. 


Total Par 
Value 
Author- 


Total 
Amount 
Issued and 
Outstand- 
ing. 


DIVIDENDS DE 

CLAKED DURING 

YEAR. 




ized. 


ized. 


Rate. 


Amount. 


Capital stock- Common- — 


25,000 


$100.00 


$2,500,000.00 


$2,500,000.00 


6 per ct. 


$120,000.00 


Manner of Payment for Capital 
Stocli. 


Number of 
Shares Issued 
During Year. 


Cash Real- 
ized o^ 
Amount 
ssued Dur- 
ing Year. 


Total Num- 
ber Shares 
Issued and 
Outstanding. 


Total Cash 
Realized. 








550 
24,450 


$55,000.00 








1.000 






' 






Total - 


1,000 




25,000 















CURRENT ASSETS AND LIABILITIES. 



ASSETS. 

Cash 

Bills receivable 

Due from agents 

Due from solvent companies and individuals 

Net traffic balances due from other companies 

Cash deposited to pay coupons 

Total— Cash and current assets 

LIABILITIES 

Audited vouchers and accounts 

Wages and salaries 

Matured interest coupons unpaid (including coupons due July 1 

Total— Current liabilities 

Balance— Cash assets 

Total 



$12,339.39 
3,000.00 
10,576.63 

167,411.81 
19,198.53 
23,675.00 



236,201.36 



J64,545.31 
17,621.16 
23,67o.00 



105,841.47 
130,359.89 



236,201.36 



NORFOLK AND CAROLINA RAILROAD COMPANY. 



91 



RECAPITULATION. 





Total 

Amount 

Outstanding^ 


Apportion- 
ment to 
Railroads. 


AMOUNT PEK MILE OF LINE. 


Account. 


Miles. 


Amount. 


Caoital stock 


$2,500,000.00 
1,720,000.00 




111.33 
111.33 


$22, 455. 00 


Bonds 




15,4.50.00 








Total 


4, 220, 000. CO 


$4, 220, 000.0 J 


111.33 


37,9U5.00 







COST OP ROAD, EQUIPMENT, AND PERMANENT IMPROVEMENTS. 







Amount. 


Charged to construction or equipment— expenditures during year 
Total cost to June 30 1897 




$1,003,060.16 
2,742,030.44 
3,745,090.60 
83,639.55 




Total cost to J une 30, 1898 








Itens. 


Total Cost to 
June 30, 1897. 


Total Cost to 
June 30, 1898. 


Cost Per 
Mile. 


Total equipment 


$527,146.81 
2,742,030.44 


$527,146.81 
3,745,090.60 


$4,734.99 


Total construction 


33,639.55 


Grand total cost construction, equipment, etc ^ 


3, 269, 177. 25 


4,272,237.41 


38,374.54 



STOCKS OWNED. 



Name. 


Total Par 
Value. 


Valuation. 


Norfolk and Portsmouth Belt Line Railway Company 


$6,200.00 


$6,200.00 





RENTALS RECEIVED. 



Total. 



Tracks— Pinners Point, Va , to Tarboro, N.C.,Honlhern Railway Company 

Terminals— Pinners Point, Va., Southern Railway Company 

Grand total rents received 



$35,337.37 
12,000.00 



47,337.37 



MISCELLANEOUS INCOME. 

Net miscellaneous income— Interest, rents, etc., $10, 754. 11. 



92 



BOARD OF RAILROAD COMMISSIONERS. 



EARNINGS FROM OPERATION. -Entire Line. 



Item. 


T(ital 
Receipts. 


Deduclions, 

Account of 

Repayments, 

etc. 


Actual 
Earnings. 


Passenger— 

Passenger revenue 


S76, 290.07 








$265.73 
















Total passenger revenue 




$76,024.34 
9,801.04 


Mail 






Express 






3,382.08 
649.49 


Extra baggage and storage 






Other items 






99 96 










Total passenger earnings 


89,956.91 


Freight— 


493, 600. 89 






4,444.89 
















Total freight revenue 


489, 156.00 


Other items 






4,721.99 










Total freight eirnings 


49.-!,877.99 
583,834.90 

2,066.00 
265 45 


Total passenger and freight earnings 






Other Earnings from Operation - 
Switching charges — balance 


« 




Telegraph companies 












47,337 37 








53,352.28 










103,021.10 








Total gross eirnings from op jralion— Entire 
Line. 


686,856.00 







OPERATING EXPENSES. 

Recapitulation of Operating Expenses: 
Maintenance of ways and structures. 

Maintenance of equipment 

Conducting transportation 

General expenses 

Grand total 

Percentage of expenses to earnings— Entire Line 



^SES: 


Amount. 

$126,646.25 




49, 927. 26 





196,904.07 
25.157.82 




398, 635. 40 








.58 







NORFOLK AND CAROLINA RAILROAD COMPANY 



93 



INCOME ACCOUNT— Entire Line. 



Gross earnings from operation 

Less operating expenses 

Income from operation 

Misce laneous income— less expenses 

Total income 

Deductions from Income— 

Interest on funded debt accrued 

Taxes 

Total dciuctions from income 

Net income 

Dividends, 6 per cent, common stock 

(Surplus from operatic ns of year ending June 30, 1898_ 



Surplus on June 30, 1897, (from ' General Balance Sheet, " 1897 
Report). 

Surplus on June 30, 1898, (for entry on "General Balance Sheet") 



$686,856.00 
398, 635. 40 



86,000.00 
15,317.85 



«288, 220. 60 
10,751.11 



298,974.71 



101,317.85 



197,656.86 
120,000.00 



77,656.86 
111,140.44 



188,797. 



COMPARATIVE GENERAL BALANCE SHEET. 



JUNE 30, 1897. 


Assets. 


JUNE 30, 1898. 


YEAR ENDING JUNE 30, 1898. 


Total. 


Total. 


Increase. 


Decrease. 


$2,742,030.44 


Cost of road __ 


$3,745,090.60 

527,146.81 

6,200.00 

236,201.36 

4,514,638.77 


$1,003,060.16 




527, 146. 81 


Cost of equipment .__ 






Stock owned 


6,200.00 
101,539.48 




134,661.88 


Cash and current assets 






Grandtotal-- 




3,403,839.13 


1,110,799.61 






Liabilities 
Capital stock 




$1,500,000.00 


$2,500,000.00 

1,720,000.00 

105,811.47 

188,797.30 


$1,000,000.00 




1,720,000.00 


Funded debt 






Current liabilities 


33,142.78 
77,656.86 




111,140.44 


Profit and loss _ . _ 






Grandtotal 




3,403,839.13 


4,514.638.77 


1,110,799.64 











94 



BOARD OP RAILROAD COMMISSIONERS. 



PASSENGER AND FREIGHT, AND TRAIN MILEAGE. 



Item. 



Passenger Traffic - 

Number of passengers carried earning revenue 

Number of passengers carried one mile 

Number of passengers carried one mile per mile of road- 
Average distance carried 

Total passenger revenue 

Average amount received from eacli passenger 

Average receipts per passenger per mile : 

Total passenger earnings 

Passenger earnings per mile of road 

Passenger earnings per train mile 

Freight Traffic— 

Number of tons carried of freight earning revenue 

Number of tons carried one mile 

Number of tons carried one mile per mile of road 

Average distance haul of one ton 

Total freight revenue 

Average amount received for each ton of freight. 

Average receipts per ton per mile 

Total freight earnings 

Freight earnings per mile of road — 

Freight earnings per train mile 

Passenger and Freight— 

Passenger and freight revenue 

Passenger and freight revenue per mile of road 

Passenger and freight earnings 

Pa-sengerand freight earnings per mile of road 

Gross earnings from operation 

Gross earnings from operation per mile of road 

Gross earnings from operation per train mile . 

Opera ting expenses 

Opeiating expenses per mile of road 

Operating expenses per train mile 

Income from operation ; 

Income from operation per mlJe of rv>ad 



Column for 
Tonnage, 

No. Passen- 
gers, No. 
Trains, 
Mileage, 
No. Cars. 



83, Mi 

2,938,942 

26, :^98 

35. 26 



Columns for Revenue 
and Rates. 



.592, 469 
4.^069,845 



72.70 



Dollar; 



,024 



,956 
808 



489, 156 



493, 877 

4,436 

2 

565, 180 

5, 076 
583,834 

5,244 
686,856 

6,169 

1 

398, 635 

3, 580 

1 

288,220 

2,588 



Cents 



34 
91 
02 
91 
02 
64 



34 



Petersburg F^ailroad Compaoy. 



PROPERTY OPERATED. 





TERMINALS. 


Miles of Line 
for each 


Name. 


From— 


To- 


Road Named. 


Petersburg Railroad Company 


Petersburg. 

Dunlap -- 

Garysburg, N.C 


Garysburg, N.C- 
Acree, Va 

Weldon, N.C— - 


58.77 


Seaboard and Hoanoke 


5.75 

2.8(3 







CAPITAL STOCK. 



Description. 


Numb* r of 

Shares 
^ uthorized. 


Par 
Value of 

Shares. 


Tola! Par 
Value Au- 
thorized. 


Total 
Amount Is- 
sued and 


DIVIDENDS DE- 
CLARED DURING 
YEAR. 




Outstand- 
ing. 


Rate. 


- 


Amount. 


Capital stock- Com n on - 
Preferred - 


10,000 
3,235 


$100.00 
100.00 


$1,000,000.00 
323,500.00 


$96't,800.00 
323,500.00 


7 perct 
"7 perct 


$67,256.00 
22,645.00 


Total 


13,235 




1,323.510.00 


1,284,300.00 




89,901.10 










Manner of 


Payment for Capital Stock. 




Total Num- 
ber Shares 
I«sue 1 and 
Outstanding. 


Total Cash 
Realized. 


I.-sued for cash-Comm<ai 
Preferrec 


I 




9,608 
3, 235 


$960,800.00 
323,500.00 


Total 


12,843 


1,284,300.00 















RECAPITULATION OP FUNDED DEBT 



Mortgage bonds— amount issued 

Amount outstanding 

Interest -amount accrued during year 
Amount paid during year 



$2,168,000.00 

1,668,000.00 

9iJ,480.00 

92,480.00 



96 



BOARD OF RAILROAD COMMISSIONERS. 



FUNDED DEBT. 
MORTGAGE BONDS, MISCELLANEOUS OBLIGATIONS, AND INCOME BONDS. 





TIME. 


Amount of 

Authorized 

Issue. 


Amount 
Issued. 


Amount 
Outstanding. 


Cash Real- 


Class of Bond or 
Obligation. 


Date of 
Issue. 

When 
Due. 


ized on 
Amount 
Issued 


Coupon and registered 

Class " A" 


1861 
1881 
1881 


1898 
1926 
1926 




$500,000.00 
868,000.00 
800,000.00 






$1,000,000.00 
1,000,000.00 


$868,0C0.00 
800,000.00 


fs68, 000,00 
800,000.00 


Class "B" 


Total- 


Mortgage bonds 


2,000,000.00 


2,168,000.00 


1,668,000.00 


1,668,000.00 



CJaj^s of Bond or Obligation. 



Coupon and registered 

Class "A" 

Class " B " 

Total— Mortgage bonds 



INTEREST 



Rate 
per 

Cent. 



When 
Payable. 



Jan. & July. 
Jan. & July. 
Aug. & Oct. 



Amount 

Accrued 

During Year. 



$1,080.00 
43,400.00 
48,000.00 



92,480.00 



Am )urt, 
Paid Dur- 
ing Year. 



$1,080.00 
43.400.00 
48,000.00 



92, 



.00 



CURRENT ASSETS AND LIABILITIES. 



ASSETS. 




Cash 


$238,324.73 
2,892.47 


Due from agent* 




Total — Cash and current assets 


241,217 20 


Total 


241,217.20 


LIABILITIES. 




Audited vouchers and accounts . 


$35,902.71 


Wages and salaries 


9,413.97 


Net traffic balances due to other companies 


19,836.12 




46, 787. .-.0 




25,295.00 
19,401.53 


Miscellaneous 


Total-Current liabilities ____ 


156,686.83 


Balance— Cash assets 


84,530.37 


Total 


241,217 20 







PETERSBURG RAILROAD COMPANY. 



97 



RECAPITULATION. 
A. FOR MILEAGE OWNED. 





Total 

Amount 

Outstanding. 


Apportion- 
ment to 
Railroads. 


AMOUNT PER MILE OF LINE. 


Account. 


Miles. 


Amount, 


Capital stock .. 


$1,284,300.00 
1,668,000.00 


$1,284,300.00 
1,668,000.00 


64.52 
64.52 


$19,905,455 


Bonds 


25,852.451 






Total - 


2,952,300.00 


2,952,300.00 




45,757.906 







B. FOR MILEAGE OPERATED. 



Name of Road 


Capital 
Stock. 


Funded 
Debt. 


Total. 


AMOUNT PER MILE OF 
LINE. 




Miles. 


Amount. 


Peterbburg Railroad Co... 


$1,284,300.00 


$1,668,000.00 


$2,952,300.00 


64.52 


$45,757,906 



COST OP ROAD, EQUIPMENT, AND PERMANENT IMPROVEMENTS. 



Item 



Right of way and station grounds, not included in operating expenses during 
year. 

Real e.state, not included in operating expenses during year 

Total construction 



Total cost to June 30,1897 
Total cost to June 30, 1898 
Cost per mile 



Charged to 
Construction 

or 
Equipment. 



$1,197.49 
925. 00 



2, 122. 49 



$3,109,381.66- 
3,111,504.15 

. 48,225.41 



Item. 


Total Cost to 
June 30, 1897. 


Total Cost to 
June 30, 1898. 


Cost Per 
Mile. 


Grand tjtal cost construction, equipment, etc- 


$3,109,381.66 


$3,111,504.15 


$48,225.41 



STOCKS OWNED. 



A.C.L. Sleeping Car Association— total par value- 
Income or dividend received 



Amount. 
$15,810.38 
4,238.73 



BOARD OF RAILROAD COMMISSIONERS. 



INCOME ACCOUNT Entire Line. 



Gross earnings from operation. _ ._ __ 


$596,172.26 
295,104.75 




Less operating expenses 








Income from operation — 




301 067 51 


Dividends on stocks owned . 


4,238.73 

875.00 

8,054.92 




Interest on bonds owned . _ . 




Miscellaneous income-less expenses 




Income from other sources- .. . _ 




13, 168 65 








Total income -.. __.-_. _. . 


314,236.16 


Deductions from Income— 

Interest on funded debt accrued 


92,480.00 

17,68S.06 

427.80 


Taxes -_ _ . _. . _ _ 












Total deductions from income ___ . 




110,595.36 






Net income -__ . _ _ 


203, 640. 80 


Dividends per cent common stock 


67,256.00 
22,645.00 


Divideuds, percent preferred stock 








Total - _ 




89,901.00 






Surplus from operations of year ending June 30, 1898 


113,739.80 
425,670.71 

539,410.51 


Surplus on June 80, 1897, [from "General Balance Sheet," 1897 
Report]. 

Surpluson June 30, 1898, [for entry on "General Balance Sheet"] 









RENTALS PAID. 
RENTS PAID FOR LEASE OE TRACKS, YARDS AND TERMINALS. 



Designation of 
Property. 


Situation of Property 
Leased. 


Name of Company Own- 
ing Property Leased. 


Item. 


Total. 


Tracks and bridge 


Garj's to Weldon 

j WeldoD,N.C 

1 Richmond, Va . 


S & R. R.R 




$5, 632. 08 


W. &W.R.R 

R.&P 


$1,546.85 
5,029.91 




Terminals' 










■ 




Total - 




6,576.79 






Grand total rents 




12,208.87 







BONDS OWNED. 



Name. 


Total Par 
Value. 


Rate. 


Income or 
Interest 
Received. 


Valuation. 




$25,000.00 
25,000.00 


5 per ct. 
4 per ct. 


$625.00 
250.00 


$24,493.88 
23,453.25 






Total ^— 


50,000.00 


875.00 


47,947.13 





pp:tersburg railroad company. 



99 



EARNINGS FROM OPERATION— Entire Line. 



Item. 


Total 
Receipts 


Deductions, 

Account of 

Repayments, 

etc. 


Actual 
Earnings. 


Passenger— 

PRSsen'^'er revenue 


$117,280.34 








$1,728.55 




Total deductions 












Total passenger revenue. _ — 




$115,551.79 


Mail . _- - . 






32,287.44 








30,588.75 








1,085.74 












179,513.72 


Freight— 

Freight revenue 


436, 443. 35 


20, 583. 33 




Total deductions 










Total freight revenue 




415,860.02 






' 




Total freight earnings 


415,860.02 
595,373.74 


Total passenger and freight earnings 


. - - 

446.46 
352.06 





Other Earnings from Operation— 
Telegraph companies 




Other sources- .. . . 






Tolal other earnings . - __ 


798. 52 










Total gross earnings from operation— En- 
tire Line. 


596,172.26 









OPERATING EXPENSES. 



Item. 



Maintenance of way and structures 

Maintenance of equipment 

Conducting transportation 

General expenses 

Grand total 

Percentage of expenses to earnings— Entire Line. 



$41,931.80 
62,881.06 

173,331.51 
16,960.38 

295,101.75 



49.5 



MISCELLANEOUS INCOME. 
Interest, etc.— Net Miscellaneous Income 



$8,051.92 



100 



BOARD OF RAILROAD COMMISSIONERS. 



PASSENGER AND FREIGHT, AND TRAIN MILEAGE 



Item. 



Passenger Traffic— 

Number of passengers carried earning revenue 

Number of passengers carried one mile 

Numberof passengers carried one mileper mileof road(61) 

Average distance carried 

Total passenger revenue 

Average amount received from each passenger 

Average receipts per passenger per mile j 

Total passenger earnings j 

Passenger earnings per mile of road (61) j 

Passenger earnings per train mile 

Freight Traffic— | 
Number of tons carried of freight earning revenue- 
Number of tons carried one mile 

Number of tons carried one mile per mile of road 

Average distance haul of one ton 

Total freight revenue 

Average amount received for each ton of freight 

Average receipts per ton per mile 

Total freight earnings 

Freight earnings per mile of road 

Freight earnings per train mile 

Passenger and P'keight— 

Passenger and freight revenue 

Passenger and freight revenue per mile of road 

Passenger and freight earnings 

Passenger and freight earnings per mile of road 

Gross earnings from operation 

Gross earnings from operation per mile of road 

Gross earnings from operation per train mile 

Operating expenses 

Operating expenses per mile of road 

Operating expenses per train mile 

Iticome from operation 

Income from operation per mile of road — 



Column for 
Tonnage, 

No. Passen- 
gers, No. 
Trains, 
Mileage, 
No. Cars. 



85,494 

4,522,531 

74,139 

52. 89 



Columns for Revenue 
and Rates. 



Dollars. 



590, 620 

34,235,152 

561,230 

57.96 



115,551 

1 



179,513 

2,942 

1 



Cents\ Mills. 



415, 



415,860 

6,813 

2 

531,411 

8,711 
595, 373 

9,760 
596, !72 

9,904 

1 

295, 104 

4, 837 



301,067 
4,935 



PETERSBURG RAILROAD COMl'ANY. 



101 



COMPARATIVE GENERAL BALANCE SHEET. 



JUNE 30,1897, 


ASSETS. 


•YEAR ENDING JUNE 30,1898. 




Total. 


Item. 


Total. 


Increase. 


Decrease. 




( Cost of road _ -- ) 




$3,111,504.15 

15,810.38 
47,947.13 

231,868,48 

241,217.20 


$2,122.49 




$3,109,381.66 
22 446 00 


\ Cost of equipment j 






$6,635.62 








47,947.13 


231 868.48 ntVicr T-iPrmanfint, invpst- 




' 


183,679.55 


ments. 






(irstnci trvf.nl 






3,547,375.69 




3,648,347.34 






I.IABII.ITIES. 

Canital stock 








$1,281,300.00 

1,694,000.00 

143,401.98 

425,670.71 


$1,284,300.00 

1,668,000.00 

156,636.83 

539,410.51 








Funded debt 






$26,000.00 




$13,231.85 




Prnfi t. n n ri Inss 






Grand total -- 






- _ 


3,517,375.69 


3,648,347.34 

















Wilmington, Columbia and Augusta R^ailroad 

Connpany. 



PROPERTY OPERATED. 



Name. 


TERMINALS. 


Miles of 
Line for 


From— 


To- 


Each Road 
Named. 


Wilmington, Columbia and Augusta Railroad 

Wilmington and Conway Branch 


Wilmington... 
Hub 


Columbia 

Conway 


191.70 
50.00 


Spurs to Mills _ . .__ . 


5.06 










Total - — - - _- 


246. 76 











102 



BOARD OF RAILROAD COMMISSIONERS. 



CAPITAL STOCK. 



Number of shares authorized— CJomraon 
Par value of shares 

Total par value authorized 

Total amount issued and outstanding 

Dividends declared during year 



$100. 00 
960,000.00 
960,000.00 
57,600.00 



Rate of interest, 6 per cent. 



FUNDED DEBT. 

MORTGAGE BONDS, MISCELLANEOUS OBLIGATIONS, AND INCOME BONDS. 





TIME. 






Amount 
Issued. 


Amount 
Outstanding 


Cash Real- 


Class of Bond or 
Obligation. 


Date of 
Issue. 

When 
Due. 


Authorized 
Issue. 


izedon 
Amount 
Issued. 


First mortgage 


1879 1 1910 




$1,600,000.00 
200,000.00 


$1,600,000.00 
200,000.00 


$1,600,000.00 


First mortgage W. and C. 
bonds. 


1896 1946 










Total 








1,800,000.00 
136,360.00 


1,800.000.00 
136,360.00 


1,600,000.00 


Miscellaneous obligations 














Grand total 









1,986,360.00 


1,936,360.00 


1,600,000.00 






INTEREST. 


Class of Bond or Obligation. 


Rate 
Cent. 


Tvry.-^ ' Amount 
PavSb^e Accrued 
Payable. During Year. 


Amount 
Paid Dur- 
ing Year, 




6 
4 


Jan. and July S9B.00O.no 


$96,000.00 
8,000.00 


First mortgage 




Jan.andJuIy 


8,000.00 


Total - -- - 






104,000.00 
8,181.60 


104,000.00 
8,181.60 


Miscellaneous Obligations. 






6 










Grand total 




112,18K60 


112 181 60 











RECAPITULATION OF FUNDED DEBT. 









INTEREST. 


Class of Debt. 


Amount Amount 
Issued. Outstanding. 

i ■ 


Amount Amount 
Accrued Dur- Paid Dur- 
ing Year. ing Year. 


Mortgage bonds 

Miscellaneous obligations 


$1,800,000.00 
13R,360.00 


$1,800,000.00 
136,360.00 


$104,000.00 
8,181.60 


$104,000.00 
8,181.60 






Total 


1,936,360.00 


1,936,360.00 


112,181.60 


112,181.60 







WILMINGTON, COLUMBIA AND AUGUSTA RAILROAD COMPANY. 103 



EARNINGS FROM OPERATION. —Entire Line. 



Item. 


Total 
Rece pts. 


Deductions, 

Account of 

Repayments, 

etc. 


Actual 
Earnings. 


Passekger— 






$126,958.40 


Mail - - - - 






32, 205. 87 








10,792.40 








172,329.22 

588, 462. 22 
760,791.44 

2,023.36 
8, 269. 58 


Freight- 












Other Earnings from Operation— 


- 




Other sources _ _. _ 














Total other earnings _ _ _ _ 


10,292.94 








Total gross earnings from operation— Entire 
Line. 


771 084 38 









MISCELLANEOUS INCOME 





Item. 


• 


Net Miscel- 
laneous 
Income. 


Lease Central Railroad 


$2,509.41 
8 659.87 


Rent of iron rails 


Current interest etc 


3,156.50 








Total 


14,325.78 









OPERATING EXPENSES. 



Item. 



Amount. 



Maintenance of way and structures 

Maintenance of equipment 

Conducting transportation 

General expenses 

Grand total , 

Percentage of expenses to earnings— Entire Line 



$163,501.51 
109,204. 5;-< 
272, 427, 32 
20, 685. 12 



565,768.48 



(3.4 



104 



BOARD OF RAILROAD COMMISSIONERS. 



CURRENT ASSETS AND LIABILITIES. 



ASSETS. 

Due from agents 

Due from solvent companies and individuals .. 

Other cash assets 

Total— cash and current assets 

Total 

I^IABILITIES. 

Audited vouchers and accounts 

Wages and salaries 



$305,104.45 ) 
191,493.42^ 



Dividends not called for 

Matured interest coupons unpaid 

Miscellaneous 

Total current liabilities 

Balance cash assets 

Total 



$11,377.71 

113,611.03 

26,410.00 

150,398.74 

150, 398. 74 

$2,167.85 
23,346.42 
1,617.00 
25,410.00 
77,090.43 



129,631.70 
20,767.04 
150,398.74 



INCOME ACCOUNT— Entire Line. 





$771,084.38 
565,768.48 




Less operating expenses 




Income from operations 

Dividends on stocks owned- .- _ . 




$205,315.90 


20,166.92 

540.00 

14,825.78 


Interest on bonds owned 




Miscellaneous income— less expenses - _- _ .. 








Income from other sources 




35,032.70 
240,348.60 




Total income 




Deductions from Income: 

Interest on funded debt accrued 


112,181.60 
12,560.00 

27,152.72 






otherwise provided for. 
Taxes 








Total deductions from income 




151,894.32 








Net income 


88, 454. 28 


Dividends, - per cent, Common stock 

Total 


57,600,00 




57, 600. 00 






Surplus from operations of year ending June 30. 1898 — 


30,851.28 


Surplus on June 30, 1897, [from "General Balance Sheet, " 1897 
Reiiort] 




118,332.34 






Additions for year _. _ _ 


6,710.73 


Deductions for year . 




38,493.91 








Surplus on June 30, 1898 [for entry on "General Balance Sheet"] 


117,403.44 





WILMINGTON, COLUMBIA AND AUGUSTA RAILROAD COMPANY. 105 



COST OF ROAD, EaUIPMENT AND PERMANENT IMPROVEMENTS. 



Expenditures during year not included in operating expenses charged to con 

struction or equipment 

Total cost to Juue 30, 1897 

Total cost to June 30, 1897 

Cost per mile 



$9,765.65 
2,902,761.47 
2,912,527.12 

11,803.07 



RECAPITULATION. 



Account. 


Total 

Amount 

Outstanding. 


Apportion- 
ment to 
Railroads. 


AMOUNT PER ItflLE. 


Miles. 


Amount. 


Capital Stock 


$960,000.00 
1,936,360.00 




246.76 
246.76 


$3, 890. 00 


Bonds 


7,847.00 








Total 


2,896,360.00 




246.76 


11,737.00 







STOCKS OWNED. 



Name. 


Total Par 
Value. 


Income or 
Dividend 
Received. 


Valuation. 


N <fe L R R 


85,001.00 
10,000.00 




$5,001.00 


Wilmington Railway Bridge 


$5,989.18 


10,000.00 


Total 


15,001.00 


5,989.18 


15,001.00 



B. OTHER STOCKS 



Name. 



A. C. L. Sleeping Car Trust- 
Total 

Grand total— A and B 



Total Pai 
Value. 



Income or 

Dividend i Valuatioi 
Received. 



$52,882.06 



$14,177.74 



52,882.06 



67,883.06 



14,177.74 



,883.06 



$52,882.06 



52,882.06 



67, 883. 06 



BONDS OWNED. 


Name. 


Total Par 
Value. 


Income or 

• ntere.st 
Received. 


Valuation. 


State of South Carolina 


$8,000.00 


$540.00 


$8,000.00 





106 



BOARD OF RAILROAD COMMISSIONERS. 



PASSENGER AND FREIGHT, AND TRAIN MILEAGE. 



Item. 



Column for 
Ton u age. 

No, Passen- 
gers, No. 
Trains, 
Mileage, 
No. Cars. 



COLUMNS FOB REVE- 
NUE AND RATES. 



Passenger Traffic : 

Number of passengers carried earning revenue 

Number passengers carried one mile 

Number passengers carried one mile per mile of road- 
Average distance carried 

Total passenger revenue 

Average amount received from each passenger 

Average receipts per passenger per mile 

Total passenger earnings 

Passenger earnings per mile of road 

Passenger earnings per train mile 

Freight Traffic: 

Number of tons carried of freight earning revenue 

Number of tons earned one mile 

Number of tons carried one mile per mile of road 

Average distance haul of one ton 

Total freight revenue 

Average amount received for each ton of freight 

Average receipts per ton per mile 

Total freight earnings 

Freight earnings per mile of road 

Freight earnings per train mile 

Passenger and Freight: 

Passenger and freiglit revenue 

Passenger and freight revenue per mile of road 

Passengerand freight earnings 

Passenger and freight earnings per mile of road 

Gross earnings from operation 

Gross earnings from operation per mile of road 

Gross earnings from operation per train mile 

Operating expenses 

Operating expenses per mile of road 

Operating expenses per train mile 

Income from operation 

Income from operation per mile of road 



208, 147 

,030,565 

24,439 



598,095 

33,469,537 

135, 636 

56 



Dollars. 



Cts. Mills. 



$126,958 



172,829 



588, 462 



588,462 

2,384 

2 

715, 420 

2,899 

760,791 

3,083 

771,084 

3,124 

1 

565,768 

2,292 

1 

205,315 

832 



WILMINGTON COLUMBIA AND AUGUSTA RAILROAD COMPANY. 



107 





COMPARATIVE GENERAL 


BALANCE SHEET. 




JUNE 30,1897. 


ASSETS. 


YEAR ENDING JUNE 


30, 1898. 


TotaL 


Total. 


Increase. 


Decrease. 


$2,902,761.47 


Cost of road — 

Stocks owned 


$2,912,527.12 

67,883.06 

8,000.00 

4,586.22 


$9,765.65 




90,079.00 


$22 195 94 


8,000.00 
4,586.22 


Bondsowned 

Other permanent investments 

Lands owned 




9, 265. 65 




9, 265. 65 


102,533.16 


Cash and current assets 


150,398.74 


47,865.58 


Grand total - -._ 




3,117,225.50 


3,143,395.14 


26, 169. 64 




LIABILITIES. 

Capital Stock _. . 




$960,000.00 

1,936,360.00 

102,533.16 

118,332.34 


$9b'0,000.00 

1,936,360.00 

129,631.70 

117,408.44 


i 


Funded debt 

Current liabilities . 




$27,098.54 




Profit and loss 

Grand total _ . „ _ 


$928 90 






3,117,225.50 


3,143,395.14 


26, 169. 64 









SEABOf^RD AIR LINE SYSTEM. 



LINES CONTROLLED AND OPERATED IN NORTH CAROLINA. 



Name. 



Miles. 



Caroli na Central Railroad ' 

Durham and Northern Railway 

Georgia, Carolina and Northern Railway 

Louisburg Railroad 

Pittsboro Railroad 

Raleigh and Augusta Air Line Railroad 

Raleigh and Gaston Railroad 

Roanoke and Tar River Railroad 

Seaboard and Roanoke Railroad 

Palmetto Railroad 

Wilmington Railway Bridge Company 

Total length of all lines, Seaboard Air Line System, in North Carolina 



271.03 


41.40 


14.30 


10.00 


11.20 


106.73 


97.00 


32.30 


18.40 


18.20 


2.40 



602. 36 



RALEIGH AND GASTON RAILROAD COMPANY. 



Name. 


TERMINALS. 


Miles of 

Line for 

each Road 

named. 


Miles of 

Line for 

each Class 




From— 


To— 


of Roads 
named. 


Raleigh and Gaston R. R. Co 


Rale1gh,N.C_____. 
Franklin ton N^ C 


Weldon,N C 


97.00 
10.00 
2.54 




Louisburg Railroad- _. 


Louisburg, N. C 

Roanoke Rapids 




Roanoke Rapids Branch . Roannkft .Tnnrt'n 










Total 


109.54 





CAPITAL STOCK. 



Capital Stock— Common— Number of shares authorized 

Par value of shares 

Total par value authorized 

Total amount issued and outstanding 

Total number of shares issued and outstanding for reorganization— Common 
Total cash real I zed 



15,000 

$100.00 

1,500,000.00 

1,500,000.00 



15,000 
$1,500,000.00 



RALEIGH AND GASTON RAILROAD COMPANY. 



109 



FUNDED DEBT. 





TIME. 


Amount of 

Authorized 

Issue. 


Amount 

Issued 


Amount 
Outstarding 


Cash Real- 


ClHSsof Bond or 
Obligation. 


Date 

of 
Issue. 


When 
Due. 


ized on 

Amount 

Issued. 


First nnortgage 


1897. 


1947. 


$1,500,000.00 


$1,200,000.00 


«1, 200,000. 00 


$1,150,980.00 



, 


- 

INTEREST. 


Class of Bond or Obligation. 


Rate 


When 
Payable. 


Amount 

Accrued 

During Year. 


Amount 

Paid During 

Year. 


First mortgage 


5 per ct. 


Jan. and July 


$75,000.00 


$75,000.00 



RECAPITULATION OF FUNDED DEBT. 



Mortgage bonds— amount issued 

Amount outstanding 

Interest— amount accrued during year 
Amount paid during year 



$1,200,000.00 

1,200,000,00 

75,000.00 

75, 000. 00 



CURRENT ASSETS AND LIABILITIES. 



Assets. 
Cash 

Bills receivable 

Due from solvent companies and individufiils — 
Net traffic balances due from other companies 

Total— cash and current assets 

Liabilities, 

Loans and bills payable 

Audited vouchers and accounts 

Wages and salaries 

Total— current liabilities 

Balance— cash assets 

Total 



$21,544.55 
122,023.43 
3-J8, 131.40 
28,009.99 
529,709.37 



$170,508.07 

246,774.47 

40,436.43 



457,718.97 
71.990.40 



529,709.37 



Materials and supplies on hand, $163,929. 17. 



no 



BOARD OF RAILROAD COMMISSIONERS. 



EQUIPMENT TRUST OBLIGATIONS. A. GENERAL STATEMENT. 



Series or Other Designation. Date of Issue. 



8. A. L. equipment -Series A. 



Jan. 1,1890 



S. A. L. equipment— Series B [Jan. 1,1891 10 years 



Term. 



10 5- ears. 



S. A. L. car trust, " B" 



April 1, 1895 I 10 years. 



S. A. L. car trust, "C" ! April l,1896i 10 years- 

t 
S.A.L.cartrust, "D" Nov. 1, 1897 1 20 years . 



Equipment Covered. 



11 locomotives, I superintendent's 
car, 3 M.,B. & E, 15 caboose, 4 sec- 
ond-cla'js passenger cars, 4 flrst- 
class passenger cars, 200 box. 

4 shifting locomotives, 4 freight loco- 

motives, 4 passenger locomotives, 
3 postal cars, 5 first-class passen- 
ger cars, 200 box, 25 coal. 

12 passenger and freight locomotives. 
12 locomotives, 175 box, 100 flats. 

5 freight locomotives, 2 switch loco- 

motives, 350 box, 150 flats. 



B. STATEMENT 5F AMOUNT. 





DEFKREED PAYMEMTS- 
PRINCJPAL. 


DEFERRED I'AYMENTS— INTEREST. 


Series or Other Designation. 


1 

Oricrinfll Amount 
Vli".,^i Outstand- 
Amount. j^^^ 

! 


Original 
Amount. 

■ 


Amount 

Accrued 

During 

Year. 


Amount 

Paid 

During 

Year. 


Rate 


>^S. A. L. equipment— Series A. 
>^S. A. L. equipment— Series B 

3^ S. A. L. car trust, 'B" 

%s.A.L.car trust, "C" 

3^S.A.L.car trust, 'D" 


$125,000.00 
125,000.00 
8b, 066. 66 
83,83.133 
100,000.00 


$25,000.00 
37,500.00 
25,668.66 
66,666.66 

100,000.00 


$6, 250. 00 
6,250.00 
1,83!. 33 
4,166.66 
5,000.00 


$1,875.00 
2, 500. 00 
1,466.66 
3,750.00 
2,500.00 


$1,875.00 
2,500.00 
1,166.66 
3,750.00 
2,500.00 


5 
5 
5 
5 
5 


Total 


469,999.99 


254, 833. -22 


23,499.99 


12,091.66 


12,091.66 





EECAPITULATION. 

FOR MILEAGE OWNED. 



Account. 


Total Amount 
Outstanding 


Apportionment 
to Kail roads. 


Amount per Mile of Line. 


Capital stock 

Bonds 


$1,5CO,000.00 

1,200, 000. CO 

254,833,32 


$1,500,000.00 

1,200,000,00 

25^,833.32 


Miles. 
99. 54 

99.54 

99.54 


Amount 
$15,069.00 

12. 055. CO 


Equipment trust obliga- 
tions. 


2,560.00 


Total 


2,954,833.32 


2,954,833,32 


99.54 


29, 684. 00 







FOR MILEAGE OPERATED. 



» 
Nam^ of Road. 


Capital 
Stock. 


Funded 
Debt. 


Total. 


Amount per Mile 
of Line. 


Raleigh and Gaston Railroad Co.. 


$1,500,000.00 


$1,200,000.00 


$2,700,000.00 


Miles. 
99.54 


Amount. 
$27,124.00 



RALEIGH AND GASTON RAILROAD COMPANY. 



Ill 



COST OP ROAD, EQUIPMENT, AND PERMANENT IMPROVEMENTS. 



Expenditures During Year not lucluded in Operating Expenses. 



Construction : 

Engineering 

Real estate 

Grading 

Bridges, trestles and culverts. 



Ties. 



Rails — - 

Track fastenings 

Frogs and switches 

Track laying and surfacing 

Crossings, cattle guards and signs 

Station buildings and fixtures 

Water stations 

Storage warehouses 

Total construction . 

Total cost to June 30, 1897 - 

Totalcostto June .'JO, 1898 

Cost per mile 

Equipment— 

Ofiicers car " D" 

Total equipment 

Total construction 

Total construction,equipment, etc., State of North Carolina,. 



Item. 



Total equipment — 
Total constru'^tion. 



Grand total cost construction, equipment, etc.. 
State of North Carolina. 



Total Cost to 
June 30,1897. 



$93,320.98 
1,591,119.58 



1,684,440.56 



Charged to 
Constiuction 

or 
Equipment. 



Total Cost to 
June 30, 1898. 



$91,570.98 
1,611,776.95 



;, 706, 347. 93 I 



$618.08 

4,200.00 

2,474.42 

990. 93 

1,987.60 

4,175.52 

777. 78 

293. 36 

839. 86 

65. 40 

2, 199. 18 

1,310.64 

724.60 



20, 657. 37 



1,591,119.58 

1.611,776.95 

16, 192. 25 



1,250.00 



1,250.00 
20,657.37 



21,907.37 



Cost Per 
Mile. 



$950.07 
16, 192. 25 



17, 142. 32 



MISCELLANEOUS INCOME 

Gross income— outside rents 

Interest on accounts 

One-half balance from Lessees G. Con 

Total 



$1,950.00 
11,718.67 
33,231.59 



46, 900. 26 



112 



BOARD OF RAILROAD COMMISSIONERS. 



EARNINGS FROM OPERATION.— Entire Line. 



Item. 


Total 
Receipts. 


Deductions, 

Account, of 

Repayments, 

etc. 


Actual 
Earnings. 


Passenger— 


S120, 382.94 


- 






$437.58 

518.08 

1.47 

957. 13 
















Other repayments 






Total deductions 












Total passenger revenue 




$119,425.81 

15, 592.. 38 

8,687.62 

891.77 


Mall 






Express 






Extra baggage and storage 






Other items | New- Company $282.48) 

Other Items | Amount Watches 1.86/ 






284.34 












Total passenger earnings 


144 881 92 


Freight— 


459, 694. 16 








8,051.00 
27, '246. 67 










Other repavmenis 












Total freight revenue 




424,396.49 








Total freight earnings _ - 


424, 896. 49 


Total passenger and freight earnings- 






569,278.41 

1.3,367.93 
1, 129.28 


Othbr Earnings from Operation— 
Hire of equipment— balance 






Telegraph companies 












5,221.96 








2.34 








50.00 












19,771.51 










589,049.92 


Carolina. 






BONDS OWNED. 



Name. 


Total Par 
Value. 


Rate. 


Income or 

Interest 
Received. 


Valuation. 










$474,541.08 


t mortgage-Shelby Div. C. C. R. R 


$100,000.00 


4perct 


4,000.00 


76,250.00 


Total — _ — 




4,000.00 


550.791.08 









RALEIGH AND GASTON RAILROAD COMPANY. 



113 



Other Deductions- 
Loss on stores f)r the year 

Loss ou fuel for the year 

y^ loss on fuel for the year on less G.,C. & N 

% interest paid to S. A. L. Belt Railway for less G ,C. & N — 
3^^ amount against Am.Cas. Ins. & Sec. Co., for less G.,C. & N. 
Deductions from General, Profit and Loss— 

3^ amount loss on Hoyle's account, lessees G., C. <fe N 

3^ loss on stores, less G ,C.& N., previous years 

Loss on stores, R.<fe G., previous years 

Carty & Carpenter's note charged off 

Expenses exchange of bonds 



Amount. 


$259. 27 


195. 18 


191.15 


390.00 


946. 44 



Total. 



3!I,9^2.04 

2,371.17 
755.73 

2,747.65 

500.00 

39,020.00 



45,394.55 



INCOME ACCOUNT. 



Gross earnings from operation 

Less operating expenses 








$589,049.92 
355,012.28 




















$234,037.64 




3,520.00 

4,000.00 

46,900.26 








Miscellaneous income— less expenses 






















54,420.26 












Total income 


288, 457. 90 


Deductions from Income— 


75,000.00 
6,768.00 

142,406.19 

15,053.64 

1,982.04 






es accrued, not otherwise 




provided for. 
Rents paid for lease of road 




Taxes 




Other deductions 














Total deductions from income 




241,209.87 














Net income 


47,248.03 




ng June 
ral Bala 


30, 1898 








Surplus from operatit ns of year endi 

Surplus on June 30, 1897, [from ' Gene 
Report]. 


47,248.03 


nee Sheet, ' 


' 1897 




1,424,445.71 






Total. 


1,471,693.74 






45,394.55 




'General Balance Sheet"] 




Surplus on June30, 1898, [for entry on 


1,426,299.19 







114 



BOARD OF RAILROAD COMMISSIONERS. 



STOCKS OWNED. 



Name. 



Total Par 
Value. 



Rate 

per 

Cent. 


Income or 
Dividend 
Received. 


Valuation. 






$87,960.50 
157 273 50 










192,700.00 






45 00 






5,001.00 
537,900.00 
250,000.00 

9,695.00 












$520.00 


2 


3,000.00 


150,000.00 

3,000.00 

24,980.00 










3,520.00 


1,418,625.00 



Raleigh and Gaston Railroad Co ! $182,800.00 

Raleigh and Augusta Air Line Railroad Co 772,200.00 

Seaboard and Roanoke Railroad Co 192,700.00 

Louisburg Railroad l 100.00 

Cincinnati, Nashville and Louisville Railroad— i 5,001.00 

Georgia, Carolina and Northern Rw.v., common. 537,900.00 

Georgia, Carolinaand Northern Rwy, preferred 250,000.00 

Richmond, Fredericksburg and Potomac Rwy. 8,000.00 

Durham and Northern Railway 150,000.00 

Carolina Southern Railway 3,000.00 

Seaboard Air Line Belt Railway i 24,980.00 

Total I 2, 126, 751 . 00 



OPERATING EXPENSES. 



Operating Expenses: 

Maintenance of ways and structures 

Maintenance of equipment 

Conducting transportation 

General (xpenses _. 

Grand total 

Peicentage of expenses to earnings— Entire Line 



$64,764.63 
66,118.24 

196,884.66 
27,244.75 

355, 012. 28 



RENTALS PAID 

A. RENTS PAID FOR LEASE OF ROAD. 



Name. 



Total. 



Georgia, Carolina and Northern Railway Company . 



$142,406.19 



B, RENTS PAID FOR LEASE OP TRACKS, YARDS AND TERMINALS. 



Designation of 
Property. 


Situation of Property 
Leased. 


Name of Company Own- 
ing Property Leased. 


Item. 


Total. 


Terminals 


Raleigh, N. C 


North Carolina R.R.Co. 


$154.76 


$454. 76 







KALEIGH AND GASTON RAILROAD COMPANY 



115 



PASSENGER AND FREIGHT, AND TRAIN MILEAGE. 



Item. 



Column for 
Tonnage, 
No. Passen- 
gers, No. 
Trains, 
iMile^jge, 
No. Cars. 



Columns for Revenue 
and Rates. 



Passenger Traffic— 

Number of passengers carried earning revenue 

Number of passengers carried one mile 

Number of passengers carried one mile per mile of road_ 

Average distance carried 

Total passenger revenue 

Average amount received from each passenger 

Average receipts per passenger per mile 

Total passenger earnings 

Passenger earnings per mile of road 

Passenger earnings per train mile 

Freight Traffic— 

Number of tons carried of freight earning revenue 

Number of tons carried one mile 

Number of tons carried one mile per mile of road 

Average distance haul of one ton 

Total freight revenue-— 

Average amount received for each ton of freight 

Average receipts per ton per mile___ _-__ 

Total freight earnings 

Freight earnings per mile of road 

Freight earnings per train mile 

Passenger and Freight— 

Passenger and freight revenue 

Passenger and freight revenue per mile of road 

Passenger and freight earnings 

Passenger and freight earnings per mile of road 

Gross earnings from operation 

Gross earnings from operation per mile of road 

Gross earnings from operation per train mile 

Operating expenses 

Operating expenses per mile of road 

Operating expenses per train mile 

Income from operation 

Income from operation per mile of road 



136, 172 

,214,209 

56,730 

45. 635 



463, 762 

40,199,247 

375,693 



Dollars. 



119,425 



144,881 
1,322 



424, 396 



424,396 
3,874 

2 

513, 822 

4,964 
569,278 

5, 196 
589,049 

5,377 

1 

355,012 

3,240 

1 

231,037 

2,136 



Cents 



95 



Mills. 



30 

I 
60 

99 ' 

92 i 

49 i 

72 I 364 

28 I 

94 I 

03 I 882 
64 i 



116 



BOARD OF RAILROAD COMMISSIONERS. 



COMPARATIVE GENERAL BALANCE SHEET. 



JUNE 30, 1897. 


ASSETS. 


JUNE 30, 1898 


YEAR ENDING JUNE .30, 1898. 


Item. 


Item. 


Increase. ' Decrease. 


$1,591,119.58 


Cost of road _ 


$1,611,776.95 


$20,657.37 
1 , 250. 00 




93,320.98 




9 4.. 570. 98 




879,025.00 


Stocks owned . _ . — . 1.418.625.00 


539,600.00 




550,791.08 


Bonds owned 


550,791.08 




66,165.05 


Other permanent investments 

Cash and current assets 


66, 165.05 
5'29, 709. 37 






1, 146,C0J. 16 




$616 894.79 


125,151.72 


OIHER ASSETS. 


14>*,450.56 


23,295.84 
92,019.28 




71,909.89 




163,929.17 










4,52-1,090.-16 


• 4,584,018.16 


676,822.49 


616,894.79 




I. lABI LILIES. 

Capital stock 

Funded debt 


$1,500,000.00 

1,200,000.00 

399,644.75 

1,424,445.71 


$l,cOO,000.00 

1,200,000.00 

457,718.97 






Current liabilities 


$58,071.22 
1,853.48 






1,426,2S9.19 








4,524,090.46 


4,584,018.16 


59,927.70 









EMPLOYEES AND SALARIES. 



Class. 



General ndministration 

Maintenance of ways and structures 

Maintenance of equipment 

Conducting transportation —. 

Total (including •' General Officers ")— 
North Carolina. 



Number. 



528 
402 



Total No. 
of Days 
Worked. 



33 I 10,329 

154 48,202 



i,ii; 



165,264 
125,826 



319,621 



Total Yearly 
Compensa- 
tion. 



$27,292.02 
35, 625. 54 

267,676.28 
17 1,965. .50 



502, .559. 34 



Average 

I'aily 
Compen- 
sation. 



$2. 64 

.74 

1.62 

1.37 



1.43 



Raleigh and Augusta Air Line Railroad Connpaoy. 



PROPERTY OPERATED. 





TERMINALS. 


Miles of Line 
for each 


Name. 


From— 


To- 


Road Named. 


1 A. Raleigh and Augusta A.L. R.R.Co.. 
B. Ralei- h and Augusta A. L. R. R. Co.. 
4. Pittsboro Hailroad Company . _.- . 


Raleigh, N.C ..- 
Hamlet, N.C ..- 
Moncure,N.C..- 
Hamle',N.C .- 


Hamlet,N.C .— 

Gibson, N.C 

Fittsboro.N.C- 
Cheraw,S.C 


96.60 
10. 13 
11.12 




18.12 







FUNDED DEBT. 
MORTGAGE BONDS, MISCELLANEOUS OBLIGATIONS, AND INCOME BONDS. 





TIME. 






Amount 
Issued. 


Amount 
Outstanding. 


Cash Real- 


Class of B >iid or 
Obligation. 


Z 0) 





Authorized 
Issue. 


ized on 
Amount 
Issued. 


First mortgage 


18S6 


19J6 


$1,000,000.00 


$1,00>1,0G0.00 


$1,000,000.00 


$1,000,000.00 








INTEREST. 


Class of Bond or Obligation. 


Rate 
Cent. 


When 
Payable. 


Amount 

Accrued 

During Year. 


Amount 
Paid Dur- 
ing Year. 


First mortgage 


6 




860,000.00 


$60,000.00 









EQUIPMKNT TRUST OBLIGATIONS. A. GENERAL STATEMENT. 



Series or Other Designation. 



S. A. L. car trust, "A' 

S. A.L.cartrus\"B' 
S. A.L, car trust," C 
S. A. L. car trust, " D' 



Date of 
Issue. 


Mar. 


1,1893 


Apr. 


1 , 1895 


Apr, 


1,1896 


Nov. 


1, 1897 



Term 

10 years. 

10 years - 
10 years. 
20 years- 



Equipment Covered. 



U locomotives, 4 first class passenger 
cars, 4 passenger and baggage cars, 
4 M. and E. cars, 15 caboose, 35 
stock ,25 box. 

12 passenger and freight locomotives. 

12 locomotives, 175 box, ICO flats. 

5 freight locomotives, 2 switch loco- 
motives, 350 box, 150 flats. 



118 



BOAhD OF KAILROAD COMMISSIONERS. 



FUNDED DEBT— Continned. . 
B. STATEMENT OF AMOUNT. 





DEFERHKD PAYMENTS— 
PKINGIPAL. 


, DEFERRED PAYMENTS— INTERpST. 


Series or Other Designation. 


Original 
Amount. 


Amount 
Outstand- 
ing. 


Original 
Amount. 


Amount 

Accrued 

During 

Year. 


Amount 

Paid 
During 
Year. 


Rate 


3^ S. A.L.car trust, "A" 

3^8. A.L.car trust, "B" 

3^ S. A.L.car trust," C" 

Yp, S. a. L. car trust, " D " 


$125,000.00 
36,666.66 
83,333.33 
100,000.00 


862,500.00 
25,666.67 
66. 666. 67 

100,000.00 


$6,250.00 
1,833.33 
4,166.66 
5,000.00 


$3,750.00 
1,466.67 
3,750.00 
2,500.00 


$3,750.00 
1,466.67 
3,750.00 
2,500.00 

11,466.67 


5 
5 

5 
5 


Total . 


344,999.99 


254,833.34 


17,249.99 


11,466.67 









RECAPITULATION OF FUNDED DEBT. 



Mortgage bonds— amount issued 

Amount outstanding 

luterest— amount accrued during year. 
Amount paid during year 



$1,000,000.00 

1,000,000.00 

60,000.0« 

60,000.00 



CAPITAL STOCK. 



Description. 


Number of 

Shares 
Authorized. 


Par 
Value of 
Shares. 


Total Par 
Value Au- 
thorized. 


Total 
Amount Is- 
sued and 
Outstand- 
ing. 


DIVIDENDS DE- 
CLARED DURING 
YEAR. 




Rate. 


- 


Amount. 


Capital stock— Comn: on _ 


8,736 


$100.00 


$873,600.00 


$873,600.00 










Total 


8,736 




873,600.00 


873,600.00 














Manner of Payment for Capital Stock. 


Total Num- 
ber Shares 
Issued and 

Outstanding. 


Total Cash 
Realized. 


Issued for cash— Common 






8,736 


$873,600.00 








Total 


8,736 


873,600.00 















RALEIGH AND AUGUSTA AIR LINE RAILROAD COMPANY. 



119 



CURRENT ASSETS AND LIABILITIES. 



ASSETS. 

Casb 

Due from solvent companies and Individuals 

Net traffic balances due from otlaer companies 

Total— Cash and current assets 

Balance— Current liabilities 

Total 

LIABILITIES. 

Loans and bills payable 

Audited vouchers and accounts 

Wages and salaries 

Total— Current liabilities 

Materials and supplies on hand, $18, 699. 41 



$6,489.07 

11,898.26 

110,114.57 



128,501.90 
347,728.62 
476, 230. 52 



$98,236.83 
369,167.98 

8,825.71 



476,230.52 



INCOME ACCOUNT— Entire Line. 



Gross earnings from operation 


$434,521.82 
358,894.71 




Less operating expenses 








Income from operation 




$75,627.11 


Interest on bonds owned 


280.00 
7,408.67 


Miscellaneous income — less expenses 








Income from other sources _ _ 




7,688.67 






Total income 


83,315.78 


Deductions from Income: 

Interest on funded debt accrued 


60,000.0) 
3,612.34 

10,724.81 
261. 67 


Interest on interest-bearing current liabilities accrued, not oth- 




erwise provided for. 
Taxes 




other .eductions {Los| on t^o^e^^^.^^^^^^^^^^ ,H0.47J 






Total deductions from income 




74 598 82 








Net income 


8,716,96 

8,716.96 

99,489.07 

90,772.11 


Surplus from operations of year ending June 30, 1898 




Deficit on June 30, 1897 [from "General Balance Sheet," 1897 




Report]. 

Balance 




Loss on stores previous years 


1,284.49 
5,830.25 


Bills receivable charged off 


7 114 74 






Deficit on June 30, 1898 [for entry on " General Balance Sheet,"] 


97,886 85 









120 



BOARD OF RAILROAD COMMISSIONERS. 



COST OF ROAD, EQUIPMENT, AND PERMANENT IMPROVEMENTS. 



Other cars of all classes— Caboose cars— charged to construction or equipment. 

Total construction charged to construction or equipment 

Total expenditures during year 



$2,409.78 
325.00 



2,734.78 



Item. 



Total equipment- 
Total construction 



Total cost construction, equipment, etc.— North 
Carolina. 



Total Cost to 
June 30, 1897. 



$48,919.79 
1,939,030.73 



1,987,950.52 



Total Cost to ^^^^ o^^ ,^., 
June 30, 1898. ^ost Per Mile. 



$51,329.57 
1,939,355.73 



1,990, 685. HO 



$480.93 
t8,170.07 



18,651. 



RECAPITULATION. 
A. FOR MILEAGE OWNED. 



Account. 


Total 

Amount 

Outstanding. 


Apportion- 
ment to 
Railroads. 


AMOUNT PER MILE OF LINE. 

• 


Miles. 


Amount. 


Capital stock 


$873,600.00 

1,000,000.00 

254,833.84 


$873,600.00 

1,000,000.00 

254,833.34 


106.73 
106.73 
106.73 


$8, 185.00 


Bonds 


9,369.00 

2,388.00 


Equipment trust obligations 




Total 


2,128,433.34 


2,128,433.34 


106.73 


19,942.00 





B. FOR MILEAGE OPERATED. 



Name of Road. 


Capital 
Stock. 


Funded 
Debt. 


Total. 


AMOUNT PEK MILE OF 
LINE. 




Miles. 


Amount. 


R.& A. A.L.R.R.Co 


$873,600.00 


$1,000,000.00 


$1,873,600.00 


106.73 


$17,554.00 



OPERATING EXPENSES 

Recapitulation of Operating Expenses: 

Maintenance of way and structures 

Maintenance of equipment 

Conducting transportation 

General expenses 

Total 

Percentage of expenses to earnings— Entire Line 



Amount. 

$79,370.88 
13,595.37 

247,584.15 
18,344.21 



358,894.71 



82.6 



RALEIGH AND AUGUSTA AIR LINE RAILROAD COMPANY. 



121 



EARNINGS FROM OPERATION. 



Item. 


Total 
Receipts 


Deductions, 

Account of 

Repayments, 

Etc. 


Actual 
Earnings 


Passenger : 

Passenger revenue 


*89,411J5 








$l'8.99 

56O.90 

.75 




Less repayments— 
Tickets redeemed 






Excess fares refunded 






Other repayments 












Total deductions 


685. 64 










Total passenger revenue ._ _ . .. 




$88,725.81 


Mail _._ .. 






15,881.24 


Express. _ _. _. 






5,616.06 


Extra baggage and storage. . 






236.34 


Other items— News Co., $168. 36 ; ant. mchs., $1 . 85 






170.21 












110,629.66 


Freight: 

Freight revenue 


340,963.48 






Less repayments- 
Overcharge to shippers 


6,110.14 

12,841.28 




Other repayments . . 












Total deductions 


18,951.42 




Total freight revenue _ 




322,012.06 










Total freight earnings 


322,012.06 










Total passenger and freight earnings 


432,641.72 




1,614.40 

174.50 

90.00 

].20 




Other Earnings from Operation : 

Telegraph companies 




Rents not otherwise provided for 






Other sources— Demurrage 






Accredited insurance _ 






Total other earnings ___ _.. 




1 880 10 










Total gross earnings from operation—North 


434 521 82 


Carolina. 









RENTALS PAID. 



Designation of Property. 


Situation of Prop- 
erty Leased. 


Name of Company 

Owning Property 

Leased. 


Item. 


Total. 


Terminals . 


Raleigh, N.C 


N.C.R.R.Co 


$454.76 


$454.76 







122 



BOAED OF RAILROAD COMMISSIONERS. 



BONDS OWNED. 



Name. 


Total Par 
Value. 


Rate 

per 

Cent. 


Income or 
Interest 
Received. 


Valuation. 


Second mortgage, Carolina Central R. R. Co.— 
First mortgage, Stiel by Division C.C.R.R 






sio, 250. oe 


$7,000.00 
7,000.00 


4 


$280.00 


5,337.5« 


Total 


280.00 


15,587.50 



MISCELLANEOUS INCOME. 



Item. 


Gross 
Income. 


Net Miscella- 
neous 
Income. 


Outside rents 


$1,440.00 
5,968.67 




Intel est received 








Total 




$7,408.67 







COMPARATIVE GENERAL BALANCE SHEET. 



JUNE 80, 1897. 


ASSETS. 


YEAR ENDING JUNE 30,1898. 


Item. 


Item. 


Increase. 


Decrease. 


$1,939,030.73 


Cost of road 


$1,939,355.73 

51,329.57 

15,587.50 

31,451.21 

128,501.90 

67,015.82 
18,699.41 
97,886.85 


$325.00 
2,409.78 




48,919.79 


Cost of equipment 




15, 587. 50 


Bonds owned 

Other permanent investments 




31,454.24 






140,981.18 
50, 282. 00 




$12,479.28 


OTHER ASSETS. 


16,733.32 


19,674.79 
99,489.07 


Materials and supplies 

Profit and loss — — . . — . 


975 38 




1,602.22 


Grand total 






2,345,419.30 


2,349,830.52 


19,468.10 


15,056.88 


LIABILITIES. 

Capital stock 


$873,600.00 

1,000,000.00 

471 819.30 


$878,600.00 

1,000,000.00 

476,230.52 






Funded debt 






Current liabilities 


$4,411.22 






Grand total _ - 




2,345,419.30 


2,349,830.52 


4,411.22 









RALEIGH AND AUGUSTA AIR LINE RAILROAD COMPANY. 



123 



PASSENGER AND FREIGHT, AND TRAIN MILEAGE. 



Item. 



Column for 
Tonnage, 

No. Passen- 
gers, No, 
Trains, 
Mileage, 
No. Cars. 



Columns for Revenue 
and Rates. 



Passenger Traffic— 

Number of passengers carried earning revenue 

Number of passengers carried one mile 

Number of passengers carried one mile per mile of road. 

Average distance carried 

Total passenger revenue „ 

Average amount received from each passenger 

Average receipts per passenger per mile 

Total passenger earnings 

Passenger earnings per mile of road 

Passenger earnings per train mile 

Freight Traffic— 

Number of tons carried of freight earning revenue 

Number of tons carried one mile 

Number of tons carried one mile per mile of road 

Average distance haul of one ton 

Total freight revenue 

Average amount received for each ton of freight 

Average receipts per ton per mile 

Total freight earnings 

Freight earnings per mile of road 

Freight earnings per train mile 

Passenger and Freight— 

Passenger and freight revenue 

Passenger and freight revenue per mile of road 

Passenger and freight earnings 

Passenge