51 SECTION ONE Page. 1 to 12. and rtJ! i f i I UEUluia U II, u. Mews Observer MS . f V A fcV I IU 1 V 1 V .-.-...,... ........ .. -.-,.. -. v ..v . i ii m if I A a i .M-- - f 1 1 1 i IN CONIEST FOR JUST RATES NORTH CAROLINA INVOKES NO NEW PRINCIPLE OF GOVERNMENT We Can Not Control the Charges for Transportation of Commerce From State to State But With- in the Borders of the Local Commonwealth We Can Invoke to the Limit the Powers of Local. Self-Gov- ram:: t for Our Own Protection. 'from Address of Gov. Craig at Guilford Battle Ground, July 4.) "In our contest' for iust freieht rates we invoke rjonew principle If lovernment We cannot control commerce from state to state. That Belongs to tne.reaerai jurisaic tion. But within the borders of this local commonwealth vt can in voke to the limit the powers of local self-government for our own protectiorr. , . ' . - :: ' ' , -r . . - , r ' : .v ; "I anj not unfriendly to" railroads. They are an Integral part of our Industrial organization. J. I would treat them with injustice no sooner than I. would treat our farmers with injustice, or our cotton mills with injustice. I rejoice at their legitimate prospcnty. it is co piktnt ii-Hh TMif nro:nftritv. t.Thv are an Institution at the State. They and all citizens of this State are entitled to that equal justice which, the State must guarantee to every citizen; But when they fla grantly and persistently, by arbitrary wrong, deny to North Carolina the same treatment accorded to-other States: 'when every year they extort from the people of this State millions of dollars in excess of that demanded from people of other States for the same and for even greater service, it is the highest duty constitutional powers for the protection, otjierpwn people. rrn mm AtiTA iiii Hiei-riminaHnn se-atmr Nnrth "No man defends this-discrimination arainst North Carolina. : No man caa defend it. An apology ablest counsel. 'l believe that the managers would .fcOliCT-mn justice but for the power behind thdra, the power that ha no sympathy . with our people, that reientiessry : pucjic veuare. .. : , lUtet An Admitted Innutica. . "These companies continue this injustice, this injustice known to ' all men and admitted.r. They would perpetuate it by every contention and by the Jaws delay, and they would dictate to, us the method of our resistance andjpresgibe to us the only tribunal to which we should ' 'appeal -iv ' !- -'. ; y'-, ' - 1 x , "We cannot regulate interstate tion sanctioned by the Constitution, sate to some extent for tlie Injustice. We can prescribe what service the carriers shall render and the kind of service, We can redute the Mntra-stattf passenger rates and intra-state freight ates to the minimum ' within the limits of the Constitution. - . ' f3-V..-,i-.n,; iannotTJreveatEXtortiop rt interstate commerce, tut e caa by the exercise of our legal powers rightfully take from them for the benefit of all the peopfc, a portion of the money which they have wrongfully taken from us. '-v ' i;r- -y-;rv- There are in North CaroBna railroad crossings mamtamed for years in violation of the criminal law Are we under obligation to - continue to sacrifice the lives and limbs' of. our own people t o the k profit of the corporations that defy our rights., -a-?.. , ; ; ,. . -Vvho shall say that it is not right for the State to do these things by orderly procedure, within the bounds of the constitution f I Who shall say that it is not the solemn duty of the State to do these things' Who shall denounce the effort of a people to remedy' an admitted wrong, the effort to put therrjselves : other states as an eflort to punisntnerauroaasf,,. : , ,- 1 4 . ! " ; ' 'There arethose hi North Carolina who are more concerned with the fear that their State will do -reibutraewrongTwMCTi thTamaK own people. , - - VYTUDoBtftbFor Jwtic.. "On this battle ground the men of the Revolution, were re strained only by the laws of war. - In dealing with these corporations, . that in defiance of common right are crippling the industries of this State and depriving our people or their legitimate opportunities, ; would be restrained onlv by the ordinance of the constitution. "North Carolina has suffered lon$ enough. I would rather resist this wrong and resist It in every possible, jurisdiction and fail in the - tiltimate jurisdiction than ignominiously. submit. But we will not fail. This injustice cannot stand before the determined effort of more than fo million people. We stand upon the right We invoke the law of ... thft nation and all the cowers of the The sovereign power, of this ith executive, nor legislature nor court, uciineraie puuiic opinion nmnminm the iudrttient that' must be'ebeved. The bublic con- science dictates statutes and policies. No man can defy it, por dares - defy it The foreign financier dictators that control these carriers can not despise it - ' " . "We have beep generous to these corporations, .;, We are a.ixious to be generous now. , .We want them to co-operate for the building - rA a ere at State and for the opportunities of a progressive people.- We are not poor, but we will be poor. if .we tamely submit to injustice. Are we a bastard race or are we the heirs of the men of the Revolu tion?"? ' '-,; .,..y'; ; .;:r;-; NORTH CAROLINA'S RATE FIGHT Editorial in the American Shippera' Gazette - ' Cohnnbus, Ohio. v BrnsLrtin under th lntolrn ?t to bring about correction of thee evlli. th people of North Carolina r roued to s pitch - of dtrmlntlon that bode W remits. - Under the lesdcrshio of Governor Locke Cral. the people re golna: forth to meet the railroad dragon whom they have Md.1- to combat. A apeclal ieslo tt the legislature haa been called for September 14 to vhlrli the railroad ''rate 'uiiMirtiYtt W"1ix3tymttoS"-a:d certain laiii tv the correction f ;: tSvr,r;S', -the -eawie-" Wl aeWWK. It to not iQten'deA here to diacuaa at 1-ngth the mertta of thla eonrroversy. that belli reaerved for apeclal treat ment etiiewhere to thla number. We concur with tha ahlppen of Korth Carolina, however, that their freight rate fitmclire im not only Intolerable hut im irt-wrumnhlm and clparlv .con trary tn law. both common and etat i' - 1 a violation of Rood morale aa we !. No oie. not a railroad man, who h rvef tlwmrrit to ewbjoot r "i.e ti epy nt her conclusion. - i co"ittftn 1 unjiiirt dla i " .n ft c".-m 4 of the charges for transportation of of, this State to exercise all of her is the limit if legal ingenuity of of these transportation companies demands the dollar regardless or we commerce, but we can by legisla sustained by the courts compen on an equality with the people of injustice to the railroads than they State. ; - State resides with the people,tnot and ahort haul ectlon) la favor of the Virginia hening-cltlea of Lynch- folk, which enable thtsee cltiea to un derwll the North Carolina oltle in their own territory. Thla la true, not only aa to Jobbel communitlea, but as to manufacturer as well. Not alone have the Virginia lltea an adjuet ment of freight rate charges which enables them to control the markets around them, but they are liven by the railroad serving he mors South ern 8 tat fa an undue and an anhist advaotaxe 1n all the Chrolimt-ivmittmF to th exclualon of Carolina shippers and producer tn- ti.ftt name conimm nut tmttoiW7ini f ' lfcr.iu adding to the rat to the Virginia cit ies for Carolina points, a high local rate; that Is, on buatnerm from the out alde, the through rate ta mad by add ing to the rate up to the gateways the local. to the interior; In many instances their local rate being aa high or high er than tn thrown rate for three times the haul then the .Carolina rat fabric is made up by a combina tlo nof two locals, and It sometime hapnn that even the thrmsirft rute In higher than th wmMiiMS t.f J'wd rate, prartit-a condemned Oilll gnj ) ' vi .... 5IILIlIGGEPi;; HAlLBOADS' OFFEfl Such Settlement to Cover for That Period Only Such Rates ; As Are Agreed Upon. STATE TO RESERVE RIGHT" FOR FURTHER KEDUCTION Suggestion. That the Corpora tion Commission Should. Be "Strengthened Or Its Organi ' zation Enlarged, So It May Be in CloserTouch With the , People in Freight Rate Mat ters. By JOSEPH It CRAH.5M, first 1oevPrldcnt Wtna ton-Salon Board of Trade. - There ar many people In North Carolina not familiar with freight rates, who ar relyinx on some on who doe know to enlighten' them In th preawnt controversy. l-lr - Ordlnartly they would look to the Corporation Commission, but . that body has been elective and the men 1 acted hav bean qualified better by the! rex perl en e for otber duties than deternilnlns.laterstat;rlht rates; and; they bar therefor not had, the enUr ootifldenc of all the people. ' If my own views have any value to others,' I am glad t. mak ' them known. Th 'are based on an az flclal, and for taven years past from th standpoint of a cltUan and ship per of North Carolina. ; , ' -"My wv-'tiewg'-aTw- based on "" perience of twanty-flv year In deal year as a railroad trafflo clerk and of ficial, andfor seven years past from the standpoint of a citisen and shipper of North Carolina. - -'.-'. From thla tjperience X know that freight rate generally from th TVeet to North Carolina compare favorably even now with those to any olher Southern states except Virginia. . cinnaU to Wlnaton-SaUm, Greanaboro, lower than to Atlanta, Oa, though th dlatanca to th latter point Is las from Cincinnati, and ths population and business, ther la greater. This Is due to the difference of th low rail rata from Chicago to Norfolk, which are actually lowar than from Chicago to N wTork by rait Th complaint of North Carolina niur beew that tt ratew Mrm-Mi? an hadly with those to Virginia rill'c Th rate to Virginia cities from th WM -?(.- r-t I-',3$ H ti Carolina rail- BLOCKMG THE roads, but by th C A O, nllvty, to put ? It ; port of Newport News (Including Norfolk) on th Sams footii;g from Chicago as th fport of Baltimore, th rat t Lyiwhldri oUieT laiiand cltlr being than deduced to th Norfolk level. Th lmmens coal business the C A O. originate enable it to to do M antlr bustnos at a small profit. It could not iuataln Itself on th tnerchaodlM ) budnesa alono. - .v ,; .L . ' Th JMlddl and r eastern part of North Carolina has therefor profited by naraeg to Virginia; but whll ob taining .lower rates in this way thtn prevailed for similar distance from th West to 'South Carolina, Georgia, Ala batna and MInUaippi, w hav sof. ferad because the Carolina line added their full local rates to those to Vir ginia cities, when making through rate from th West " , The agitation In" the Stat In th last year has had ' this result: The Carolina road new propose to take leas than their locals from Virginia gateways In , making through rates from the West .This is a double ben efit;. It lowers the total charge to b paid by Nofth Carolina people, and at- th : unit , time gives Carolina' mer chants better protection against th wchahts at th Virginia cltiea The remaining question is, whether the reductions ' now offered by th railroads go as far as they should, and whether they should be accepted a a settlement . Information is 'these" reductions cover th entire West to all points In the State, except the porta to which th rate are now lower than to th Inland cities, also that thsra ar re duction from the Korth and East all ralL-.-W-.-r ; J - .. My view Ik the State should accept th ; reduction for a period of two years, which is the time fixed by th Federal laws for th orders of the In terstate Commerce Commission! which chang rates, such settlement to cov er for that period only such rights aa are argree upon, this agreement not to Impair any rights the Bute may have for further reductions under th long and short haul clause of th In terstate Com me roe Act when a final decision 1 reached by th Commerc Commission and th courts. I My reasons are:- i.;. ' ''. (1) These reductions ar greater than . have been made voluntarily by ny railroads 4s4lt4)eteHhf-)' ration, both In the amount of reduc tion and the area affected. have lxn ordered by the I. t. from as wide a territory to so large an area in my knowledge extending over many year. . .--.-, , it) The reductions are also greater than granted- by the L C. C. to Wln-ton-Huim and Durham from Cincin nati over the through line of th Nor-4 folk ft Western Railway, after a bard contest soma year ago. I believe the reductions ar greater than would ra- other oiitf Ifi the BtatsTonTea pros perous llnea, and -certalriry- to th. .fejaOif-WStltWIft ftt ."thfc jl(afiastalMM. all tf which are Included In the pres ent offer of the railroda (4) The reduction come at a time when rates are . being advanced by railroad in more populated sections, including th rates to Virginia cities. Competitive condition . ar further equalized n thl way. (& The reduction mad com from the revenue of th Carolina roads. Too great a change all at one would impair their ability to give the service ai4wBa)e-peple'-riti tlood transportation is often a Impor tant as good rates. , . '.CoR'!rued on raj Two.), WAY HEEDED BYSTATE Composed of Men Who. Know 7 the Railroad Business and Are Familiar With Rates. EXTRA SESSION WOULD NOT HAVE BEEN NECESSARY If North Carolina Had Had a Regulating Body That Knew j ;. the 1ns and Outs of Traffic and Transportation, Dispos ed to Act for the Benefit of Shippers, v - By C O. CRCIGHTO.V, T Secrotary Durham County Branch 9, . r. r. a. of jr. c. rnar are probably many cause that might be assigned for th freight rat discriminations that hav 'handi capped, th growth and development of North Carolina for so many years; but probably th on cau contrib uting mor than any. otbr has been th failure on th part of North Caro lina shippers, and th North Carolina public aa a whole, to giv to th mat' tir of freight rate th attention H de serves and must have or to employ competent' and trained men to. look after their freight rat - Interests as they hoold be looked after. To' any on at all familiar with traf do maturs It is a recognised and es tablished fact that in an astonishingly great number of cases transportation charges are assessed and collected en ths baals ftf bjgber freight rales than ar lawfully on 111 with th various rommlMiions. Thl Is true of both n- teriUitenu tnuaslajl trafflc, and is most general on inter-state shipments moving over two or more lines. The practice of th shipping public of North Carolina seems to hav been to pay th freight charges assessed by th railroads, and little effort has been put forth to ascertain whether or not th amount paid was correct Th railroads in general terms, but mor correct th evil by , handling specific errors In a proper manner to both correct th present error and remove th cans for further repetition. . Most of these failure to not over charges and to proceed to the removal of the cause hi due to the fact', that th average shipper has not th means or th training to enable him to prop efly Interpret the var!ou.lawilflra tiotia and tariff under which his ship ments move, and is bewildered by a tCoatlaued oa I'if Ta) INTRASTATE FREIGHT RATE ' BILL LEFT PENDING FOR ' : ACTION AT EXTRA: SESSION Purpose Is tq Stop Exorbitant Charges by RaIlr0aci3 On Shipments From " One - Part of North Carolina to Another Charges pa Shipment Carried 853 Miles Through the State Lower .Than on 302 Miles Inter state Shipment on Same Line. . At th regular session of th General Assembly of lilt, Repreaontatlv E. Justic. of Guilford, Introduced a bill In th House which was not en acted Into law, but on hi motion was left pending until the convening of th extra session of th General Assembly. If it should b enacted Into law, tt would prov far-raaohlus in its sfftot. It is a part of th effort to secure re lief for th olttieni of th State from th d leer I minatory freight rates from which they hav suffered long. It U in tins with th two other resolution Introduced by Mr. Justice, both of which were passed by th O antral As sembly and which brought about" th appointment of a apeolal commission to confer with the officials of ths Inter state railroads doing business In North Carolina, with a view to securing, by amicable mean, th relief sought tn the matter of freight rat discrimina tion. Th full text of th bill fol lows: . Intrastate Sate BIO. otlon I. ' That no ratrroaiTcom- pany -wr - railroad - companies .' haul ins; Intrastate freight between two points in the Bute of North CaroUnv and Here the entire nauri within th State, shall charge or receive for uch taut for a given kind and quantity of rretght any greater sum than th at puoiisnea, cnargea or received; or railroad company or railroad oomDa- nles for hauling a Ilk kind and Quant ity or ireight la tn asm direction and for a longer dlitanc where th longer haul, whether Interstate or In trastats, embraces th shorter dls tancs, all of said shorter distance be ing within the State. . "Beo. t. That it shall b th duty of the North Carolina Corporation Com mission forthwith to re-adjust and to require the railway companies doing; Intrastate buslnex In. North Carolina to. re-adjust heir Intrastate chares for hauling freight so as not to viola te section one of this act,'! - . i . , The bill Is Intended to put Into ef- rect, so rar as lutraitut touainen eoncemed In North Carolina, the pol icy of the Ntat with ree.ri'ac to long and short haul principle aa ! dared for by joint resolution, -of the General Assembly. Speaking of th out, Mr. Justice said: Mr. JostlcWB RtsteiiMuit. ' "My Investigation aa a member of th Bpnclal commission, -appointed by th Governor, ha revealed a situation with respect to Intrastate charges so eminently unjust that It is startling. The correction of the abuse to which I refer will at Itself mor than justl CONCERTED ATTACK BY STATE ' : ON INTERSTATE-RATES (JTtOM THE AMERICAN brnPFERS On of the most Important matters that will com before th next session of th interstate commerc commission this winter will be.th attack to b mad upon North Carolina freight ratea : Th adJusCment which , th railroads hav mad of freight charge for th WaC East and North into the Stat of North Carolina ia on ol th most complicated, tangled and absurd in the entire United Btatea. The theory upon which this adlustment is mad is that th rate to all point In th State must be based upon th rates to what ar known as ths "Virginia Cltiea Gateway." By this system ther ar practically no such thing as through ratea from' the great producing terri tories of th middle West and theEast and New England to the shippers in North Carolina, but such ahippers ar compelled to pay, In moat cases, th full local rate to Virginia cities and ths full local rates from th Virginia cities to -North Carolina destinations. 8ino th full local rates for ths lateer part of the hauls are about the highest east of , the Mississippi the shipper find themselves paying as much to get their trafflo the few additional mile across th Virginia itat line ss th Virginia cities merchants pay for get ting their . trafflc. all th way from Chicago, Cleveland, Columbus, Cin cinnati. Pittsburgh and other manu facturing points; mat i th North Carolina shippers pay Just about double what their Virginia rivals pay though ths difference in distance be tween them la very small compared with th , total diatanc th trafflo movea - -A similar situation exists with ref erence to the rateaeui of .North Caro lina to th East, North and West, The effect of all this ia to relocate freight rate ar concerned and to place it on the Atlantic coast some where around Florida! - ! Thl anomalous situation ha not been continued without loud protest from th shipping public of North Carolina. Their protests hav accom plished tittle In the past. Now, how ever, the agitation has taken mor definite form than ever before and a concerted attack upon th . railroads Und their ,cherqs or hottiiiigup th (State is to oe majee ana it diss Mr to attract widespread attention. This front ana a ngnt 1 to t made all along th line. , ' . Ther are three distinct phase of th movement for a fair adjustment of freight rate into North Carolina. The first is an effort started some months ago and not yet Anally ended to reach a compromise between th State au thorities, representing th shipping public, and the carriers. "With this effort. In view a comm:e f th leg islature started a series of conferences with railroad officials. i.t withmrt any tangible results. Lew in icimiw of Conferences was continued by the Hiate corporation . eommin'i.ri, and these wei concluded, at !; 1 r r lUs i !- fy all th effort that haa been m by this Oeneral Assembly and by r t txeeuency, tn Oovsraor, . with th purpose of correcting th abnae prao tloed by th railroads in violaUon of th oonomio prtnclpl announoed t -.v tni ueasral AjasambLy, that no greati charge should be mad tor the short haul freight than la mad for th kr .7 haul wher th freight is of a gtv& kind and quantity, and where the twn hauls ar in the same direction, an t wher th shorter ia Included wltiut, th longer haul , i a nbwtratlna. : ' situation which I am ndavorit!g t k correct, 1 give wis tnstanoe and it ii by no means an isolated case, but 1 general rul: . ..,,.. Tk railway comtMUile ehars n th numbered classes of freight th following rat from Cincinnati. 0.i. to Norfolk Va a distance of I I milea ' . "On class number a. II cents? on clAnumbrtwajBll-l cents; on class Dumber three, 40 1-1 cents; en clas number four, VI 1-3 ctnta; en cHaas number Ave, II eanta; on cIh.-w number alx. It -1-1 oents. On rral product and grain. ill 11 cents i on packing house produMs, t cents, th.uj rrelght passe through Fa'r.t Ttbok and Ashevill to Selma. Th distano from Paint Rock to Bel ma i 141 miles, and th rata fixed by North, Carolina for th numbered classes of freight between Faint Hock and ei ma are: , - ',. . . "Class number n. Tt ntBt number two, ! cent; class nCir! three, 17 caats; elass number four, , cents; clas number Sv 41 cesu; ola a number -Six, cents. . - . . "The oUtance from Ashevill to ..' ma Is 101 mileVf and clas rau font ons to sis respectively ar only two couts lower than from Faint R.-k . Kam. They are on thee six e a. ' 4 ren)ctirely a follows: IT, ti. Si, 4k 41, snd II. . ... .. "rtie rat on $r-h and srnfn v- fruis as c'riijril ' 1 U J -3 r itom t'inntnnti NorfuUf. 1 rat eh pack tag" houae prolans ' cents ss compared wrth i'J ceuu . Cincinnati to Norfolk. ' Ths haul from Cincinnati to Nor folk I over the lin f the Pnuthrn Railway Company ia North Carolina la Ashevllle and Belma. The dirtr eetoe I that th higher charge Is nu.i for the shorter haul notwithsundlrig th shorter haul 4s Included in the long, and both hauls are in the aama direction." " - ' GAZETTE, COLCMBCS, OHIO.) nt, by a meeting at Old Point Com fort in the latter part of Jul v. A for mal report of the result of th at tempts at compromise haa recently ben mad 'by th corporation' com mission to th governor. While thi report doe not Indicate that an agreement can be reached, and whll it contains no recommendation of th 8tt commission as to what action should b taken It is exceedingly in teresting in showing th attitude of th railroads aa to th North Carolina, rat adjustment. Far from stand in 7 pat upon th iniquitous system so lonv inflicted ; upon th people of North Carolina the railroads hav felt ft nec essary to take a conciliatory position and they fairly admit that ther ought to be a correction in the Interstate, rates to that State, It is a matter of th utmost significance in th future, conduct of th fight now being waged that th railroads hav offered, aa shown by th report reerred to, to re duce ths rate to a Urge part of th. State about 29 per cent, and to other parts from, 5 to 15 per cent Th second phase of th contest la th action taken by th Btat corpora tion oommlaalon In filing formal com plaints befor th Interstate commerc commission. . These - complaints now on file, and which win doubtless b up for action sometime this? fall, are as follows: (1) A petition alleging un reasonableness of all th clues rate and number of commodity rate from Cincinnati Chicago. Bu Louis and other points In Ohio, Indiana, Illinois, and other State, to Greens boro, N. C a a. typical destination point in the Stat. This petition com pares th ratea to Virginia cities, such as Roanok and Lynchburg, with those 4o Jreeneborv and ehowe that the lt- ter point pay rates nearly twice a high aa the former coluta. (!) A tie- , Hion- ailerteir'WWfeaswwtbieTW'iw of ir""- trsavolasa rate from th same points of .origin to a number of other North Carolina cities, such as Ashevtlla, StatesvlUs, Marion, and others. This petition shows that for considerably shorter distances the North Carolina shipper must pay very much higher rate than ar paid by their competl- ' tors In Virginia for much longer hauls. For example, from Cincinnati to Ashe vllle, 43 miles, the first clam rate 1 90 cents,, while, to Danville, Va., :i triiicsT We"'''!' eettf a" -nt ?f-r ' folk. 881 mile, ths rat is 41 cents. fl 'A'.tl.llsrtlW'''' ablenee of all class rate from l.aM- ern cities auch as Boston. New KorK. Philadelphia and Baltimore, to Char lotte. N. & This petition shows such comparisons aa the following: the ail- rail rate from ?ew lork to Aorf .u on flint class is 33 -cents the rate from Norfolk to Charlotte ia sHeenta. Kink ing th combination' $1. The through rate, however, from New fork to Charlotte 1 fl OS (4) A petition at- , tacking the rates northbound f r-m WnwMtwt' eu'v - to AiM'iir . .a,i,.,.. Darbam, to K'iiok n.t l.v ft! -.ir?;, Va. ..Thi petition rec;'. tft in.