11 IF. Library of the University of North Carolina Endowed by the Dialectic and Philan- thropic Societies. C*3.5'3.03-'C %'%G> ysPS 91 UNIVERSITY OF N C. AT CHAPEL HILL 00034043623 FOR USE ONLY IN rHE NORTH CAROLINA COLLECTION 7 Wo. A-368, Rev. 8/95 Digitized by the Internet Archive in 2011 with funding from Ensuring Democracy through Digital Access (NC-LSTA) http://www.archive.org/details/publiclett19131917nort <7Jhy/u. PUBLIC LETTERS AND PAPERS OF LOCKE CRAIG GOVERNOR OF NORTH CAROLINA ] 913-1917 COMPILED AND EDITED BY MAY F. JONES PRIVATE SECRETARY RALEIGH EDWARDS & BROUGHTON PRINTING COMPANY STATE PRINTERS 1916 ^9 FROM THE NORTH CAROLINA DEMOCRATIC HAND-BOOK, 1916 "The figures throughout this article show that the four years under the adminis- tration of Governor Craig have been marked by the same character of service that has made the last sixteen years the most notable in North Carolina's history. At every point, in education, in agriculture, in manufacturing, it may safely be said that under Governor Craig's leadership the rate of progress, set by Aycock and kept by Glenn and Kitchin, has been more than maintained by him. In addition to this, the Craig administration has been marked by two achievements of the first magnitude — neither of them surpassed in the State's history: First, the adjustment of interstate freight rates, to enable North Carolina points to compete with points in other States. By this adjustment, demanded by Governor Craig in his inaugural address and pressed with great vigor throughout his adminis- tration, the saving to North Carolinians has amounted to millions of dollars — the evidence of which is seen in the flourishing condition of our commerce. Second, the improvement of our public highways, known as the Good Roads movement. This movement has in four years swept the State. One has but to go in any direction to realize the vast change for the better that has been wrought in four years. In such a matter it is difficult to state the facts in figures. We have now not less than 10,000 miles of improved highways ramifying the entire Commonwealth and enabling our farmers to market their products with ease and at their convenience, and bringing town and country closer together with immeasur- able benefit to both. "These two achievements have not been of the sensational sort; they are the result of courageous and patient leadership, wise planning and painful labor.' But as time passes our people will look back to the last four years and bear witness to the fact that Governor Craig's administration has in constructive achievements been unsurpassed, if ever equaled, since Vance rebuilt the Commonwealth upon the ruins of Republican "Reconstruction." He has given us a monumental evidence of political virility in the sixteenth year of unbroken Democratic service." — Pages 45 and 46. TABLE OF CONTENTS I Page Messages to the General Assembly 7 II Reduction op Freight Rates 57 III Proclamations by the Governor 133 IV Highways 147 V Parole of State's Prisoners 169 VI State's Prisoners, Hiring of to Railroads, Etc 189 VII Fraudulent and Repudiated North Carolina Bonds 195 VIII Agreement of Atlantic Coast Line Railway Not to Remove Cases Pend- ing to Federal Courts 203 IX Vance Statue Commission 209 X Mitchell's Peak Pake 215 XI Mobilization of the National Guard 223 XII Relief of Flood Sufferers 231 XIII Fisheries Commission 243 XIV Highway Commission 247 XV Supplemental 251 (I) MESSAGES TO THE GENERAL ASSEMBLY MESSAGES TO THE GENERAL ASSEMBLY 1 1. Inaugural Address, January 15, 1913. 2. Opening of the Panama Canal. 3. In regard to raising Revenue, March 6, 1913. 4. Appointments submitted to the Senate for ratification, March 10, 1913. 5. Commission to consider amendments to the Constitution sub- mitted to the Senate for ratification, March — , 1913. 6. Biennial Message to the General Assembly, Session 1915. 7. List of employees, Governor's Office, with their salaries, January 8, 1915. 8. Appropriation by Federal Government for cooperative Agri- culture extension work, January, 1915. 9. Submitting letter from the Secretary of Agriculture, together with proposed bill for the protection of fish and game on lands in State purchased by Federal Government. 10. Transmitting reports of the various institutions of the State, January, 1915. 11. Appointments State Board of Education, submitted to the Senate for ratification, February 25, 1916. 12. Appointments submitted to Senate for ratification, March 6, 1916. 13. Biennial Message to the General Assembly, Session 1911 . l These messages do not include those in regard to the Reduction of Freight Rate9. (1) INAUGURAL ADDRESS OF GOVERNOR LOCKE CRAIG DELIVERED AT RALEIGH AUDITORIUM, JANUARY 15, 1913 Gentlemen of the General Assembly and My Fellow Citizens: Democracy gives to the people the pledge of progress. The thought of the age has created a nobler purpose in government. The Democratic party intends to effectuate this purpose by legislation in recognition of the equal rights of man, and for the progressive welfare of all the ranks of life. In our material prosperity, privilege has been substituted for justice. The vast wealth of modem industry, the products of labor and genius have not been divided in equity, but have been gathered into the enormous fortunes of the few. AMERICAN PEOPLE HAVE PUT THEIR HANDS TO THE PLOW We have not realized the moral benefits that should have resulted from modern progress. Avarice has been stimulated; hope and opportunity have been denied; antagonism and resentments have been generated. All classes have suffered. We realize the conditions; the injustice has been uncovered. It cannot stand in the clear, calm and resolute gaze of the American people. They are determined that our law shall be based upon a higher conception of social obligation and that our civilization shall mean a higher social life. They have put their hands to the plow and will not look back. THE LEAVEN" OF DEMOCRACY A new era has dawned; the last election marks the beginning of an epoch in our government. The Republican party had the prestige of victory and tradition ; it had the power of place and of organized wealth ; but it stood for privilege — it took from the republic its highest meaning, that equal justice is the inalienable heritage of men; it stood for that prosperity which is not the handmaid of moral and intellectual growth ; it stood in the path of the progressive thought of the age ; with all its power and prestige it was crushed. Like the leaven which the woman hid in three measures of meal, the leaven of Democracy has been at work. In this time of difficulty and hope the country turns for guidance to the Demo- cratic party. SPIRIT OF PROGRESS The spirit of progress pervades the Union and the people demand legislation responsive to the impulse of the age. North Carolina will not continue to march in the rear of the procession of the States. She is impatient for the advance. Throbbing with energy, potential with accomplishment, she looks expectant to this administration and to this General Assembly. I believe that you Senators and Representatives will perform your task with wisdom and courage and that your work will be for the welfare of this generation and of our posterity. The responsibility is ours, the opportunity is ours. 10 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG IDEALS MILITANT FOE JUSTICE Constitutional government and the ideals of the fathers have ever been sacred to the Democratic party; but these ideals must be vital for practical accomplish- ment and militant for justice. It was said of the celebrated opinion of Chief Justice Taney, that "it gave the law to the North and the nigger to the South." We are not content with the forms and ceremonies of the law. The ideals of our government must be applied to present conditions. PROTECTION OF THE WEAK The first duty of the State is to protect the citizen in the enjoyment of his rights, to protect the weak from the oppression of the strong. This is what the men were doing at Runnymede. FREIGHT DISCRIMINATION The discrimination which the railroads have made against North Carolina in freight rates is the injustice of arbitrary power. It has already worked irrepar- able injury; it has already cost our people millions of dollars and driven from our territory industries the value of which we cannot estimate. These corporations have the protection of our laws, they operate by our license, they enjoy privileges, and exercise the sovereign power of eminent domain granted by the State. They collect excessive rates from our people that cheaper rates may be granted to the people of adjoining States. I feel no antagonism to railroads. I know that our welfare, to a large extent, is dependent upon their efficient operation, which can only result from just remu- neration. I know that their prosperity is coexistent with our prosperity. Besides, for no consideration can the State afford to be unjust. I intend, as the chief executive of this State, to administer her laws with impartiality and with even- handed justice to corporation and to individual, to the great and to the lowly. But when any corporation or any person shall persistently and defiantly by arbi- trary wrong cripple the industries of this State and despoil her people, such person or corporation may expect relentless resistance and resentment. OUGHT TO BE MORE TOLERABLE FOR SODOM AND GOMORRAH Vance said of those who were exploiting the State in 1876, that it ought to be more tolerable for Sodom and Gomorrah in the day of judgment than for such in North Carolina. The spirit of Vance and 1876 lives today. The city of High Point is to be congratulated that in the shipment of its furniture to the West it will have the same freight rate as rival cities of Virginia. The same rule must apply to all our cities and to all our commerce. WILL COMPEL JUSTICE This administration is ready to put into operation the executive power of the State to prevent the continuation of this wrong. I feel sure that this General Assembly is ready to exercise any constitutional power to compel justice. Is it possible that any person or any industry within our territory shall not be accorded by common carriers the same rights that are enjoyed by the people of MESSAGES TO GENERAL ASSEMBLY 11 other States ? If this be so, then ours is a territory to move out of. And hundreds of industries have moved. "We occupy the land and boast of the lineage and bear the names of the Englishmen of Halifax and of the Scotch-Irish of Mecklenburg. "We have inherited Magna Charta, but it is worthless without the spirit of the men who made it. We will win. The State will receive immense benefit. Our industries will feel the impulse and new ones will spring up. north Carolina's tribute to monopoly North Carolina has paid, too, her quota of tribute to the rapacity of unlawful monopoly. We have been preyed upon by trusts abroad and by trusts at home. They take from the earnings of all. The poor must suffer most. The farmers especially have been plundered and oppressed in the open day, without hindrance, by a great concern adjudged now to be in violation of law. "We have been a patient, long-suffering people. In our platform there is promised legislation that "will make the existence of these concerns impossible." There is promised the enforcement of the civil and criminal law against the trust and against the man behind the trust. TRUST LAWS WITH HANDCUFFS In the fulfillment of this promise we need a trust law, clad in blue uniform, that can raid a trust den with a warrant and handcuffs in its hand. The guilty should be made to tremble, the innocent may fear not. While I am Governor no innocent man shall suffer by the criminal law. The cry will be raised that such legislation will injure business. The trust will shield itself, if possible, behind legitimate industry. It will paralyze, if it can, the hand of justice by warnings of disaster from the interference with business. DESTRUCTION OF PIRACY PROTECTION OF BUSINESS The destruction of piracy is the protection of industry. It is the duty of the State to protect and to encourage every enterprise, small and great. And this is the age of large enterprises. They are essential in the economy of our civilization and are the agencies of its tremendous power and accomplishment. "All the cur- rents of the time run to centralization. To successfully resist it we must throttle steam and discharge electricity from human service." But these forces should be for the service and not for the oppression of mankind. WATER POWERS One of the greatest works to be done in North Carolina is the development of her water powers. This enterprise is now beginning to assume its splendid pro- portions. It is potential with magnificent upbuilding. The energy of our rivers, which has been wasted in wild cataract and cascade, has been harnessed and driven to cities and towns in currents of power obedient for all manner of service. This industry should be welcomed and encouraged. The men behind it are benefactors of the State. The policy of our law is that the State shall regulate and control public-service corporations. These water powers are the natural agencies for public service. They are natural monopolies, and since the time of the ancient gristmills have been subject to governmental regulations. The corporations oper- 12 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG ating these water powers for public use should be controlled by our corporation commission. This must be done eventually, and it is but fair and right that it should be done now. We should always remember, however, that remuneration should be in proportion to the boldness of the conception and to the risk of the enterprise. This is just. employee's liability law For the protection of the people who work in factories and on the railroads we should have an employer's liability law. It should provide reasonable compen- sation for injury or death, without the delay and the expense of litigation. This law should be just to employer and employee, and it would be to the advantage of both. It would eliminate the contingencies and expense objectionable to both. It is demanded by good business as well as by the progressive humanity of the age. From the task of protection we proceed to the grander task of construction. NORTH CAROLINA A FARMER STATE We have in North Carolina two and a half millions of people of pure English and Scotch-Irish blood. We rejoice in the enterprise and industry and courage of our urban population, and we honor our leaders in business, the master men who have built up and organized great industries and developed our expanding commerce. But this is essentially a farmer State, and will be for generations. We have no large cities. Eighty per cent of our population is rural — good, sturdy farmer folks. They grow and spend their lives in the country. Their destiny, the destiny of our commonwealth, the destiny of us all, must be determined by the conditions that exist in the country. NEGLECT OF HEALTH AND EDUCATION North Carolina is a grand old State, her past has been heroic in peace and in war. But we must confess with humiliation, that we have neglected our country children worse than any other State in the Union, save one or two. In the dis- charge of the sacred duty of protecting their health and the paramount duty of providing for their education, we stand among the lowest. We must expiate this sin before we can longer claim our noble heritage. NATURAL CONDITIONS OF HEALTH The State has been blessed with all the natural conditions conducive to health and strength. Sufferers from far countries come here to recover from disease and to renew the vigor of youth in our salubrious air. But we have allowed disease and death to stalk abroad at noonday. Most of the serious diseases are preventable diseases. Formerly the work of the doctor was to heal the sick, now it is to pre- serve health. The beneficence of scientific medicine is to drive back disease and suffering. Men and women and children suffer and die from causes that could be removed. They are deaf and dumb, and feebleminded, and are stricken with blindness and insanity, condemned to lives of darkness and hopelessness, not by the inscrutable decrees of Providence, but by the failure of society to protect them against the enemy more cruel than death. The courage and energy of a conquer- ing race must spring from robust health. MESSAGES TO GENERAL ASSEMBLY 13 J PROTECTION OF HEALTH We must provide for the accurate record of births and deaths and the causes of disease in every community. We can thus ascertain with accuracy the sanitary conditions in each community and intelligently work for the prevention of disease and for the promotion of health. Each county and each city should have an intelli- gent, efficient, well-paid health officer. We can appeal to our citizenship through the press, the schoolhouse and the pulpit and encourage them to purer and more healthful home conditions, to the inestimable blessings of all the people. MILL MEN COMMENDED The mill men of North Carolina deserve commendation for the humane spirit with which they have cared for the health and education of their employees and the children of their employees. In many places they have provided schools and libraries and comfortable reading rooms. Some of the great organizers and heads of industries take the most active interest in the cleanliness of their factory towns and the welfare of their workers. But the State should not neglect her duty longer because individuals have sometimes done their duty. I doubt not that the General Assembly will ratify by statute the humane recom- mendations made for the protection of women and children by the committee of mill men and the committee of the Society for the Protection of Child Labor. EDUCATION OF COUNTRY CHILDREN The highest duty of society is the education of the children. The command to educate our country children has been thundered from the conscience of the age. When in obedience to the demands of the people and of justice to the child, the General Assembly shall provide for a sis months rural school, North Carolina will feel the impulse of an exalted hope. Then it will not be long before the stigma of ignorance will be wiped out, the stigma which through the long years has been our misfortune and our humiliation. This act of beneficent wisdom will reach down to the children of the lowliest and lift them up to a clearer vision. It will show them hope and endow them with a new strength. It will lift the whole State up and give to her a nobler and a grander meaning. And prosperity, and juster laws, and nobler institutions and ideals will follow in the train of universal enlightenment. COMPULSORY EDUCATION The time has come for the State to exercise her sovereign authority and compel the attendance of her children upon the schools. The child cannot work to advan- tage, but his mind is eager for knowledge and most retentive. His character is responsive to culture. The factory is no place for the child. The drudgery of toil is not his rightful inheritance before his bones are hard or his muscles are firm. If we grind the seed corn, there will be a failure in the crop of men. HIGHER INSTITUTIONS OF LEARNING Our institutions of higher learning must be sustained in their full vigor and efficiency. They are the dynamic centers of culture and are essential to the life of the State. If we should allow them to begin to degenerate, our whole educa- tional system would begin to lose its vitality and power. 14 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG CHARITABLE INSTITUTIONS Our eleemosynary institutions must be maintained in the high state of efficiency for which they have been noted. We must make provision for the deaf and the dumb and the blind and the insane and the feeble-minded. When in their distress and weakness they stretch forth their hands to us, they should not be driven back as were the blind men in the way to Jerusalem, for it was the Christ who said : "Inasmuch as ye did it unto the least of these, my little ones, ye did it unto me." PENSIONS FOE CONFEDERATE SOLDIERS I hope that you can provide a more generous pension for the Confederate soldiers. More than a half century ago they went in youth and strength to meet the invading host. Some fell amid the fierce tumult of historic days beneath the advancing flag, enshrined in eternal youth; many have passed since the war; the remnant of the heroic army is with us yet. Most of them are poor, all are disabled by age and the wounds and hardships of war. Our privilege to help them is closing, for the captains and the soldiers are departing. Soon it will be written what we did for the last of the battle-scarred men of Dixie. ENCOURAGEMENT OF AGRICULTURE We should encourage all of our industries, but especially should be stimulate the growth of agriculture. Its wonderful improvement is already an inspiration. Our farmers are beginning to reap the harvests of the intelligent utilization of the soil. We should provide by every feasible method, for their protection, and for their obtaining the credits and the means, that increasing prosperity may come. HIGHWAYS Improved highways are the arteries of the country. They create organized communities of isolated families and make these communities a part of the life of the great world. Dynamite and the steam shovel are making through the hills and through the granite of the mountains, pathways for the locomotive. The improved road would give the farmers access to the railroad, to the church, and to the school during all seasons of the year. Good roads stimulate improvement. They enrich the soil. They arouse ambition and generous emulation. They increase the value of every acre of land that they touch and the value of every man, woman and child whose home they pass. No community can hope for progress without the good road. We cannot have the benefits of modern civilization with- out it. It is not an expense; it is an investment that pays one hundred per cent dividend every year. And more, it brings culture and contentment and a better social life. Every community in the State must have it. The cost is much less than it was a few years ago. I think that a general statute should be enacted, conferring upon the townships the power to levy taxes and issue bonds for road construction and providing admin- istrative machinery. The counties can continue what they have been doing. The townships can complete and perfect the system. The State should supervise and encourage this great work by lending its credit and by all practicable, feasible MESSAGES TO GENERAL ASSEMBLY 15 means. All available convicts should be worked on the public roads. In this way they can be used more appropriately and more to the advantage of the public than in the cultivation of the field or in the mechanical arts. HOPE OF FINEST DEVELOPMENT IS IN THE COUNTRY It is not strange that in the past thousands of young men and women, yearning for a larger life, have left the loneliness and poverty of the farm with its denial of culture and social enjoyment. These conditions are passing away ; the telephone now puts the home of the farmer in communication with his neighbors and with the men and the markets of the world. The mail carrier brings the daily paper pulsing with "the thoughts that shake mankind." The home on the farm with its freedom and purity, with all the opportunities of civilization is the hope of our finest development. PRIMARY The legislation of North Carolina has heretofore been considerate of the wel- fare of the people and fairly responsive to their demands. This State has not suffered as other States have suffered from corrupt and sinister influences, but these evils will come to us too unless we provide against them. The primary election is already a recognized institution in our politics. It is a logical evolution of our democracy. "We have it, and let us have it in its best possible form. Let us provide for it by law and let us protect it by law. To the limit of the law let us guarantee purity and fairness in all elections. The Demo- cratic party has set its face steadfastly against all manner of corruption. This General Assembly, in accordance with the declaration in the platform, will enact a statute for the conviction and punishment of all persons that would by any method of corruption whatsoever attempt to influence elections or the making or the administration of the law. TAXATION AND REVENUE The most difficult question for this General Assembly is the raising of a suffi- cient revenue to meet the necessities of the State. The problem of taxation is always difficult and vital. The government must be economically administered. No extravagance should be tolerated. "We must provide revenue for all appropri- ations and necessary expenses. With the State as with the individual, the element- ary rule of business is, to live within your means. "We are going to inevitable bankruptcy if we continually spend more than our income. AMPLE RESOURCES But North Carolina has ample resources with which to meet all her financial obligations. Within the last decade the value of her lands and the amount of her wealth have been multiplied. The railroads of North Carolina are more valuable today than was all of her property put together in 1876. FORWARD IS THE ORDER We cannot repudiate the obligations of Christian civilization. Now that the land is yielding the bountiful harvest, now that the stagnant towns of the last generation are growing cities of increasing wealth, now that industry is triumphant, 16 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG now that destiny is unfolding to us in grander revelation — shall we in this day of strength and prosperity withdraw any support from our institutions of learning, shall we deny the efficient administration of justice, shall we not hear the appeal of the unfortunate, shall it be written that to the Confederate soldiers we give less than any other Southern State, and for the education of our children we do less than any State in the Union? In this new century, when Southern ideals are about to be restored to the Union, when Southern statesmen are coming again to the places of power, when the future beckons with renewed strength and life, forward is the order. PROPERTY NOT ASSESSED The fault is that we do not assess our property for taxation. The land has been greatly undervalued and most of the personal property has not been valued at all. It seems that an immediate reassessment is necessary, and it should be done before this General Assembly shall adjourn sine die. It should be understood that the assessment is not ordered with the view of increasing the rate of taxation, but with the view of lowering the rate and with the determination of securing a more equitable and more complete listing of taxable property. The tax on inheritances should be increased and it should be collected. In my opinion, the impelling reason for undervaluation and concealment of property is not that men and communities desire to shirk the payment of their just proportion of taxes, nor that they desire to take advantage of other men and other communities, but the reason is that they do not desire that other men and other communities shall take the advantage of them. The taxpayer and the assessor, to insure a square deal for themselves and their communities, are actu- ated by a common purpose to undervalue property, and for this reason under- valuation and concealment have come to be the established custom. The personal property of the average man cannot be concealed. The securities of the wealthy can be concealed. The j^oor pay this tax. The wealthy escape. I* SEGREGATION OF PROPERTY If we could segregate property and provide that the property in each community should bear the governmental expense of that community, and that property of a general character should meet the requirements of the State, the temptation to depreciation would be greatly lessened and the effort to conceal less successful. This is the essence and the strength of local self-government , the taxation of each community by its own people, for its own purpose and benefits. The unit should be no larger than is necessary to assure the advantages of cooperation. AMENDMENT TO CONSTITUTION The application of this principle has enabled our cities and towns and many of our rural communities to enjoy the advantages of improvement and progress. We must eventually resort to this principle of local self-government for the highest development of local institutions. We must resort to this to obtain the best roads, and the best schools, and electric lights, and pure water, and the opportunities of modern life. To realize the full measure of the blessing of this beneficent principle we need an amendment to our Constitution. The formation and the submission to the people of such an amendment would be the supreme work of this General Assembly. Such an amendment would be of MESSAGES TO GENERAL ASSEMBLY 17 mighty significance in the life of the State. I believe that it could be framed to result in her enduring welfare. In assuming the office of Governor I am deeply conscious of the solemn respon- sibility. I follow in the line of my able predecessors, whose administrations have been blessed with peace and plenty. There are difficulties to be met; as always the law must be enforced for the suppression of crime and for the maintenance of order, and as to the policies that vitally concern the State and all her varied inter- ests, sharp differences must necessarily arise among able and patriotic men. I am profoundly grateful to the people for calling me to the place where earnest endeavor is potential for the welfare of North Carolina. I welcome the opportunity. I do not shrink from the labor. I realize my limitations, and I am eager for the support and counsel of my friends, and of all good citizens who would guide me in the straight way and help me to do the best service. I will strive to prefer uprightness to the approval of the mighty or to the applause of the multitude. My ambition is to perform this, my task, with fidelity and courage ; I pray for that wisdom and strength vouchsafed to him who is stead- fast in the resolve to do right. On this day I dedicate myself to the service of all the people ; and for them I do promise to administer this office constant in the obligation to do exact justice to every man without regard to race or politics, to class or condition; sealed with the oath that I have taken, this with them is my covenant. And may the Almighty Hand be upon this, His State, to order it and to uphold it with judgment and with righteousness henceforth, even forever. (2) OPENING OF THE PANAMA CANAL Kaleigh, March 6, 1913. To the General Assembly of North Carolina; The Panama Canal will be completed during the present year. A world expo- sition celebrating this event will be held in San Francisco in the year 1915. This General Assembly must decide as to whether North Carolina shall be represented. The construction of the Panama Canal is the greatest accomplishment of the human race in ancient or modern times. It surpasses any of the monuments of ancient civilization, and in magnitude is far ahead of the Suez Canal, or any undertaking by any of the countries of Europe or Asia. This cleaving asunder of the two continents of the Western Hemisphere and uniting the two oceans that bear the commerce of the world will change the markets of the world and the centers of the world's traffic. It will make the seacoast cities of the South the gateways for the commerce of the United States. It will be of untold advantage to the South. The exposition in San Francisco that will celebrate this great accomplishment has been hitherto unequaled in all the earth. The countries and the republics of Europe and Asia will have their exhibits, and every State in the American Union, in Central America, and in South America will be represented. If North Carolina be represented at all, she ought to be creditably represented. Thousands of Worth Carolinians will visit this exposition. They will take advan- 18 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG tage of the transportation rates across the continent, and see the greatest fair that has ever been held. There is one feature of this celebration that appeals especially to Worth Carolinians. There will be a parade of all the navies of the earth, the greatest in all history. A North Carolina man, Josephus Daniels, Secretary of the Wavy, will head that parade in a battleship flying the flag of the Republic. I would regret that North Carolina should not be represented at this great festival, celebrating as it will the greatest event in the development of the South. I have visited several of the world exhibitions, and to my regret North Caro- lina has not properly shown her strength and her resources. On the 4th of March I witnessed the procession celebrating the inauguration of a Democratic President. I saw in this procession the States of the Union. Immediately in front of North Carolina were the States of Pennsylvania, New Jersey, Virginia, and New York ; each had thousands of the National Guard well equipped. The men that North Carolina sent made a most creditable showing, but in numbers they were conspicu- ously few. There was a consoling thought that welled in the heart of every North Carolinian, that in the days when she has been called upon for men of action and daring she has been weighed in the balance and not found wanting; she has been great in times of war and she should be great in times of peace. If we would be worthy of the heritage of our fathers we ourselves must go forward. In expositions displaying the industries and resources of States and in great festivals it has been the regret of North Carolinians that our State has been so far outstripped by other States and countries. We are not poor and resourceless. We should not advertise to the world that we are poor and unprogressive. The participation in the Panama Exposition is not purely sentimental, but it will be the first step to be taken by the States of the Union in their effort to secure for themselves the benefits that are to be derived from the opening of the Panama Canal. All the States of the Union and all the nations of the earth will take advantage of this opportunity to bring to the attention of home-seekers and investors the advantages of their respective countries. The tide of immigration is now setting in towards the South, and we believe that we are in the beginning of an era of unprecedented promise. I hope that this General Assembly can see its way clear to provide representa- tion from North Carolina, and a proper representation, at this great festival cele- brating, as it will, the greatest event in the development of the South. The large appropriations recently made for the improvement of the harbors at Beaufort and Wilmington will guarantee that North Carolina will derive as much benefit from the opening of this canal as any other State in the Union. Locke Craig, Governor. (3) IN REGARD TO RAISING REVENUE Raleigh, March 6, 1913. To the General Assembly of the State of North Carolina: This General Assembly has already accomplished a great work. The welfare of the State has been remembered, and the people will support it. No law that has been enacted will be more earnestly endorsed than the law providing for a six MESSAGES TO GENERAL ASSEMBLY 19 months school. This act of humanity and justice creates an additional demand upon the State Treasury of $400,000 a year. Statutes providing for the conserva- tion of the general health, the maintenance of our institutions, the administration of justice, and other necessary expenses call for additional appropriations amount- ing to $150,000 or $200,000 a year. We must provide the money to meet these large but necessary appropriations. The policy of blindly appropriating money, when there is no money in the Treasury and none in sight, will not do. It is a bankrupt policy. It is tolerable neither in public nor private business. "We cannot always cover deficits by bond issues. It is admitted, however, that the money heretofore appropriated has been honestly and wisely spent. It was necessary for the welfare of the State, and the State has gotten value received and more. Two methods for providing for our increased demands have been suggested: 1. One method is by a higher tax rate on the present assessment of taxable property. 2. The other method is by a low tax rate on a reassessment of property. Everybody knows that the present assessment is an unjust and an inequitable assessment. We know that the property that has been placed upon the tax books has been assessed at values that are ridiculously low, and we know that the great bulk of the personal wealth of the State has not been placed upon the tax books at all, and that it pays no tax whatever. The present assessment operates unjustly against the average citizen who pays his taxes ; his property is upon the tax book ; his farm and his farm stock cannot be concealed. The raising of the revenue for the six months school alone requires an additional tax of from 5 to 25 cents on the $100 worth of property in all the counties, towns, and special-tax districts of the State. We know that many do not on the present assessment pay taxes in proportion to their ability, and the proposition to place upon the people these additional burdens according to the existing inequitable assessment ought not to be done if we can possibly avoid it. Besides, the validity of an act of thet Legis- lature authorizing a county to levy a tax for general expenses in excess of the constitutional limit of 66% cents on the $100 worth of property might be seriously questioned. A similar act was held unconstitutional by the Supreme Court of ISTorth Carolina in the case of Williams v. Commissioners, 119 !N". C, page 520. The Constitution, Article V, section 7, provides : "Every act of the General Assembly levying a tax shall state the special object to which it is to be applied, and it shall be applied to no other purpose." It might with plausibility be argued that if the General Assembly can appro- priate 48 cents or 50 cents of the general levy for general State purposes, and authorize the counties to levy 5 cents or 25 cents in excess of the constitutional limit for general expenses, the State could appropriate 66% cents for general State purposes and authorize the counties to levy any per cent that might seem proper to any General Assembly. If this General Assembly should provide no other way for the maintenance of the public schools except by the increase of the tax rate beyond the constitutional limit, and if the Supreme Court, on the petition of any citizen of this State, should declare that this General Assembly had no constitu- tional power to authorize such a tax, the State would suffer a great calamity. Let us consider the proposition for the reassessment of property. There is now $750,000,000 worth of property upon the tax books. If the property of the State, real and personal, were assessed at approximately a proper value, there is no doubt that we could easily have $2,000,000,000 upon the tax books. The rate 20 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG of taxation could be reduced 50 per cent. There is a reason for the undervaluation and concealment of property. Each landowner knows that other lands will be undervalued, and he knows that solvent credits in large amounts will not be listed. On the other hand, the owner of solvent credits knows that real estate in and around the cities and towns, yielding large revenues and increasing in value, and that farm lands will be greatly undervalued; that his securities cannot be under- valued, but if listed must go at their real value. For this reason they are concealed and escape taxation. When the present assessment was made, all the people were aware that the tax rate would be high ; in some instances almost confiscatory. This was another strong temptation for concealment and undervaluation. Such was the state of the public mind when we reassessed property in 1911. The result was a great wrong to the people who pay taxes upon their visible property. These now bear the burdens of government, while wealth escapes. Let us remove, as far as possible, the causes that produced this wrong. Let us have a just reassessment, provide machinery that will work with courage and intelligence, and with the determination to place the property upon the tax books. The property is here ; we know it. There is a vast amount of wealth in this State, amounting to many millions of dollars, represented by stocks and bonds in foreign corporations. I am informed that only one citizen of this State pays tax upon such securities. Let us provide for a just assessment, and let it be understood from this General Assembly, and from this administration, that the man who will suffer will not be the man who comes forward with his property, but the man who tries to escape. Let it be known that men must bear their burdens in proportion to their ability. We can put $2,000,000,000 upon the tax list and cut the rate in two. Perhaps the most potent reason for keeping property off of our tax books is our high rate of taxation. If we reduce this rate 50 per cent in every county, town, city, and special-tax district in the State, a great cause for concealment and undervaluation will be removed. We can accomplish but little towards placing the vast personal wealth of the State upon the tax books until there is an assurance that the rate will be low. We cannot have a low rate without a reassessment. A just reassessment would not hurt the average man who now pays his taxes, but it would doubtless reduce his taxes. It would increase the value of his prop- erty, but would lower the rate of taxation. The low rate would not frighten property out of the State and into concealment. By firm and fearless enforce- ment of the law it could be brought out to bear its just part of the burdens. This has been tried in other States with marked success. We must raise a certain amount of revenue. The question is : Shall we raise this revenue by a high tax on a low assessment of part of the property, or shall we raise it by a low tax on all the property, equitably from the rich and the poor alike? I would that the difficulty were not here; but to have the schools and roads and health and great institutions and make and administer laws and be a great State, we must have money. Let us get it justly. We need not fear the people for an act of justice to all the people. The fact that ever since the war our assessments have been in periods of four years should not deter us. The property of North Carolina has increased in value more in the last two years than it did in twenty years after the war, and no one denies that the present assessment is flagrantly wrong. Why tolerate this MESSAGES TO GENERAL ASSEMBLY 21 wrong for two years longer? "We could appeal to the people with all confidence to sustain an act of justice. We could say to them, we did this in discharge of the trust that you reposed in us, as wisely as we could. In obedience to your demands, your multitudinous petitions from Farmers' Unions, from Junior Orders, from the people in all the walks of life, we provided for the education of your children, for the preservation of your health, for the higher education of your young men and your young women. We remembered in mercy, which is the highest justice, the insane and the deaf and the dumb and the blind and the sick and the feeble-minded; we have built roads into your community; we have taken North Carolina out of the list of the most ignorant States and given her the rank in the procession of the States that she occupied in the days that we boast about. She is no longer a pauper State. We have taken her from the affected rags of pauperism and shown her to the world as she is — a great pro- gressive State of wealth and commerce and schools and public roads. We have done this by an act of justice, by an act requiring her people to bear the burdens of government in proportion to their strength. From a low rate of taxation, property will come here to engage in enterprise and development. This General Assembly can say that from fear we did not, like the servant of old, hide the talent in a napkin and bring it back unincreased to a hard master, but that it improved its trust for the welfare of all the people and for the progress of the State. I feel sure that this General Assembly will rightly solve this question in the exercise of its patriotism and wisdom. Locke Craig, Governor. (4) APPOINTMENTS SUBMITTED TO THE SENATE FOR RATIFICATION, MARCH 10, 1913 To the Senate: Raleigh, March 10, 1913. I have the honor to nominate the persons hereinafter named for the offices designated, and by and with the advice and consent of the Senate they will be and are hereby severally and respectively appointed to the said offices. Members of the Board of Internal Improvements for the term of two years, ending March 4, 1915 : Alexander Webb of Wake County, George W. Montcastle of Davidson County. Directors for the State School for the Blind and the Deaf, Raleigh, for the term of six years, ending March 5, 1919 : J. T. Rowland of Wake County, J. Sprunt Hill of Durham County, C. M. Wilson of Johnston County, and J. T. Alderman of Vance County, to fill out unexpired term ending March 6, 1917. 22 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Members of the Board of Directors of the State's Prison for the term of four years, ending March 15, 1917 : H. B. Varner of Davidson County, Chairman, ~N. E. Edgerton of Johnston County, Bichard Chatham of Surry County, Thomas Gillam of Bertie County, B. H. Buckingham of Cumberland County. Directors for the State Hospital at Goldsboro for the term of six years, ending March 12, 1919 : w L Hm of DupHn County; J. C. Cromartie of Bladen County, J. W. Thompson of Wayne County. Members of the State Board of Health for the term of six years, ending March 7, 1919 : Dr Riellard H . Lewis of Wake County, Dr. Edward Jenner Wood of New Hanover County. Members of the Board of Agriculture for the term of six years, ending March 11, 1919 : From the First Congressional District — F. P. Latham of Beaufort County. From the Fourth Congressional District — Clarence Poe of Wake County. From the Seventh Congressional District — C. C. Wright of Wilkes County. From the Tenth Congressional District — A. Cannon of Henderson County. Directors of the State Sanatorium for the Treatment of Tuberculosis for the term of eight years, ending April 1, 1921 : Dr. B. H. Lewis of Wake County, J. K. Blair of Montgomery County, Henry A. Page of Moore County, and J. B. Gordon of Guilford County, to fill out the unexpired term ending April 1, 1919. Directors of the State Hospital at Morganton for the term of six years, end- ing April 1, 1919 : J. P. Sawyer of Buncombe County, A. A. Shuford of Catawba County, A. E. Tate of Guilford County. Directors of the North Carolina School for the Deaf and Dumb, at Morganton, for the term of six years, expiring March 12, 1919 : J. L. Scott, Jr., of Alamance County, W. B. Whitson of Buncombe County, W. W. Neal of McDowell County. MESSAGES TO GENERAL ASSEMBLY 23 Directors of the State Hospital at Raleigh for the term of six years, expiring March 12, 1919 : w A Erwin of Dllrllam County, Joseph G. Brown of Wake County, E. F. Aydlett of Pasquotank County, and A. B. Croom, Jr., of Pender County, to fill out the term expiring March 12, 1917; place of K. H. Salisbury. Members of the Geological Board for the term of four years, expiring March 1, 1917: w _ H _ -Williamson of Wake County, Henry E. Fries of Forsyth County. Directors of the School of the Feeble-minded, at Kinston, for the term of six years, expiring March 14, 1919 : Dr. L. B. McBrayer of Buncombe County, and R. E. Austin of Stanly County, ■ to fill the place that he occupied prior to his resignation in November, 1912. This leaves two vacancies on this board, which I beg leave to fill after the report to the adjourned session of this General Assembly of the committee appointed to investigate this institution. Directors of the A. and M. College, Raleigh, for the term of eight years, expiring March 20, 1921 : W. H. Ragan of Guilford County, Walter E. Daniel of Halifax County, J. P. McRae of Scotland County, W. B. Cooper of New Hanover County, and T. T. Thome of Nash County, to fill out unexpired term ending March 20, 1919. Locke Craig, Governor. To the Senate: Raleigh, March 10, 1913. At a meeting of the State Board of Education February 27, 1913, the follow- ing were elected members of the board of directors of the State Normal and Industrial College, to succeed themselves, for a term of six years beginning March 1, 1914, as provided by section 4252 of the Revisal of North Carolina: A. J. Conner of Northampton County, J. L. Nelson of Caldwell County, Joe Rosenthal of Wayne County. Henry E. Litchford of Wake County was elected for the unexpired term of R. T. Gray, deceased, and for the term of six years additional beginning March 1, 1"14. Locke Craig, Governor and President of the State Board of Education. 24 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (5) COMMISSION TO CONSIDER AMENDMENTS TO THE CONSTITUTION SUBMITTED TO THE SENATE FOR RATIFICATION, MARCH 11, 1913 State of North Carolina Executive Department Raleigh To the General Assembly of North Carolina: In accordance with the resolution heretofore passed by the General Assembly providing for the appointment of a commission to consider amendments to the Constitution and report to an adjourned or extra session of this General Assem- bly, and in accordance with the power conferred upon me by such resolution to appoint five members of the said commission, I do hereby appoint the following persons as members of the said commission : A. M. Scales of the county of Guilford, J. W. Bailey of the county of Wake, D. Y. Cooper of the county of Vance, H. Q. Alexander of the county of Mecklenburg, 1ST. J. Rouse of the county of Lenoir. This the 11th day of March, 1913. Locke Craig, Governor. (6) BIENNIAL MESSAGE TO THE GENERAL ASSEMBLY. SESSION 1915 To the Honorable, the General Assembly of North Carolina: The last two years has been an era of substantial progress. The energy of the State has been manifest in her industrial and social development. Agriculture has improved. Trade and manufacturing have increased. The European "War has depressed values, and depressed business, but already conditions are improv- ing and the determination and intelligence of the people are prevailing over unexpected disaster. The sudden fall in the price of cotton resulting from the closing of the markets by war, and our unprecedented crops, have caused a shock that demoralized business, and discouraged enterprise. The present crop falls short of its expected value by millions of dollars. This calamity has fallen heavy. It has brought disaster to many that are industrious and worthy. The President of the United States and the Secretary of the Treasury have demonstrated that the administration at Washington is in sympathy with the producers of the country. They are exercising and are ready to exercise all the powers of the Federal Government for protection against untoward disaster. But no power of MESSAGES TO GENERAL ASSEMBLY 25 government can defy world wide economic conditions, and any plan to valorize cotton or to compel all the people by legislation to buy this staple at a price above its market value is, in my opinion, unsound morally and economically, and must result in failure and disappointment, whether attempted by the Federal Govern- ment or by the State Government. "We have been blessed with years of advan- tageous circumstances, and will triumphantly ovei'come this reverse. If the present unfortunate situation can demonstrate to our farmers the necessity of diversifying crops; of producing meat and bread at home, the present misfortune will result to our permanent good. Within the last two years the principal differences between the people and the railroads as to transportation of merchandise have been adjusted. For years our people suffered from adverse discrimination and excessive rates. While we did not secure on interstate rates the reductions to which we were entitled, the best available adjustment was made. By this a saving estimated at $2,000,000 a year on interstate commerce was secured. But of far greater consideration is the placing of our enterprises on a fairly competitive basis with the enterprises of the State of Virginia. Industries heretofore attracted to Virginia will remain with us. Our towns and cities feel the impulse and the people will ultimately be benefited. Charges for the transportation of freight within the State have been fixed by a commission appointed by the Governor in accordance with a statute of the last General Assembly. The railroads have applied the reduced rates fixed by the commission. Intrastate commerce will be encouraged to the welfare of all sections of the State. The people have accepted the judgment of the commission as wise and just. A strong and determined public sentiment brought about these adjustments. The sovereignty of the people was asserted. They will deal firmly and justly with the common carriers, and it is fair to say that the railroads have come to recognize the controlling power of the people and have manifested an earnest desire to conduct the transportation business as public servants in harmony with the people's will, and the people's rights. The railroads and the people are now at peace. But a firm and just control must always be maintained. I transmit to the General Assembly for careful consideration the reports of the different departments of government and institutions of the State. You will see from these reports that our State institutions, educational and eleemosynary, are performing with efficiency their respective functions, that the various depart- ments of the State government have been administered with ability, economy and honesty. As provided by law, these departments and institutions have been thoroughly audited and investigated by competent experts, and in the honesty of their conduct they are above reproach. There are problems of grave importance that confront this General Assembly, and as commanded by the Constitution, I submit to you my views and recom- mendations on some of the questions that you will consider. THE FABM Our Department of Agriculture is doing effective work. The encouragement to better farming, the improvement of rural conditions by the improvement of schools, of roads, of sanitary conditions, by circulating libraries, by farm demon- strations, by scientific teaching, and by every feasible means should be the fixed 26 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG purpose of this General Assembly. Eighty per cent of our people live upon the farms. Their destiny and the destiny of the State and of all the people of the State in all occupations is largely determined by conditions that prevail in rural communities. Thence cometh our strength, and thence the crop of men. REVENUE AND TAXATION The revenue for the last two years has met all the obligations of the State. There is a small balance in the treasury above all demands. This fact must be gratifying to this General Assembly, and to all the people, for it is the first time in many years that this condition has existed. Our revenue system, however, is far from satisfactory. The problem of taxation is always difficult and vital. The government must be economically administered. No extravagance has existed in this State, and none should be tolerated, but we must provide revenue for all appropriations and necessary expenses. With the State, as with the individual, the elementary rule of business is to live within your means. North Carolina has ample resources with which to meet all her obligations. Within the last decade the value of all real property has enormously increased, and personal wealth has been multiplied. We cannot repudiate the obligations of Christian civilization. Now that the land is yielding bountiful harvests, now that the stagnant towns of the last genera- tion have grown into cities of increasing wealth, now that industry is triumphant, now that destiny is unfolding to us in grander revelation — shall we, in this day of our strength, not fulfill the duties of a progressive State? We must support our institutions of learning to increasing usefulness. We should listen to the appeal of the Confederate soldier, and to those stricken in mind and body. We must provide for the improvement of our rural communities and for aggressive work for the prevention of disease and for the conservation of health. In this new century, when Southern ideals have been restored to the Union, when Southern statesmen have come again to places of power, when the future beckons to renewed effort and life, Forward is the order. PROPERTY NOT ASSESSED The fault with our fiscal system is that we do not assess our property for taxation. Real estate, and especially unimproved real estate, and real estate held for speculation, have been greatly undervalued, and most of the personal property has not been listed at all. It should be understood that the quadrennial assessment will be for the purpose of lowering the rate of taxation, and with the determination of securing a more equitable and a more complete listing of taxable property. A graduated tax on inheritances should be increased and it should be collected. Our citizens do not refuse to return their property for taxation because they desire to take advantage of others, but for the reason that they do not desire that other men and other communities shall take advantage of them and of their com- munities. The property has not been equally assessed for taxation, and for this reason men are actuated by a purpose to undervalue property, and to refuse to list their solvent credits. They would be willing to submit to a square deal, but desire to protect themselves against inequity. The personal property of the average man cannot be concealed. The securi- ties of the wealthy can be concealed. The average citizen pays his tax ; the wealthy MESSAGES TO GENERAL ASSEMBLY 27 often escape. The Tax Commission should be clothed with plenary powers to enforce the listing of all property for taxation, and to enforce the uniform and just valuation of all property. Every citizen should bear the burdens of govern- ment in proportion to his ability. This policy should be carried out with unalter- able determination. On a subject related to the finances, I reco mm end that the General Assembly require the State Treasurer to give as his surety for the faithful discharge of the duties of his office, a bond executed by one or more surety companies, and that this bond be paid for by the State; that the Treasurer be allowed to put out at interest all available moneys in his hands. This would yield to the State an income of many thousands of dollars a year. PRIMARY ELECTIONS It is clear that the people of the State demand of the General Assembly a law providing primary elections for the nomination of candidates. This demand is in accord with the spirit of the age, and has already found legal expression in all the States of the Union with few exceptions. The Democratic party, the Republican party, and the Progressive party in State conventions have each declared for such a law. The Democratic party in convention assembled declared that : "We endorse the principle of the legalized state-wide primary for all national, State and judicial officers, and we pledge the party to the enactment of such a law as will make this principle applicable to all political parties." The members of this General Assembly hold their commissions with the pledge to all the people for this reform. This is democracy. It gives to the people the legalized machinery that provides the opportunity for every citizen to participate in the nomination of candidates, and in the selection of the public servants that must administer the government. Political conventions and party allegiance urge the citizen to vote for the nominee of his party. He should have a voice in their selection, otherwise, the great majority really have no voice in the administration of public affairs that are of vital interest to all. The means should be provided for the full and free exercise of this right. The primary should be established by law, and protected by law, and the criminal law shall deal firmly with fraud and corruption. Our elections must be pure, and our nominations must be by the full and fair expression of the popular will. Abuses have sometimes been prac- ticed under systems not adapted to present conditions. These abuses must be eradicated and provided against. The safety of the State demands it. The preservation of confidence in popular government demands it. The obligation for this fundamental reform is with this General Assembly and with the party now in power. INSURANCE The law regulating fire insurance should be amended. The rate of insurance which the people of the State must pay and the rules regulating the insurance business are now fixed by the Southeastern Underwriters' Association. This monopoly controls the insurance of the South. There is no competition. The protection from fire of our homes and families, of our property and industry is a necessity. "We must have insurance, and we must take this insurance under the present law, from a monopoly exercising its powers unrestrained by law. We paid last year $3,733,690.17 in premiums to this monopoly. There was paid to the people of the State in compensation for losses by fire $1,679,280.77. We paid 28 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG to the companies constituting this monopoly more than $2,000,000 in excess of the amount returned for losses. This $2,000,000 was not all profit, for the expense of operating the business is considerable. The last General Assembly appointed a committee to investigate the working of these companies as affecting the people of North Carolina. This committee found that rates are not uniform, and in many instances too high, and that the rules of insurance are not equitable and just. I send to you the report of this committee. However, this may be, this monopoly is a public service concern. The Insurance Department has been ably managed and wisely managed by the Insurance Commissioner. He needs more power that he may serve the people more effectively, and exercise a control over this monopoly just as our Corporation Commission exercises control over the railroads and the other public service cor- porations of the State. The individual citizen has not the power to deal with it on equal terms, and to assert his rights. He must accept the terms proposed or be deprived of necessary protection. The State alone can deal with this monopoly, and the State will be derelict in her duty if she longer allows these corporations to fix insurance rates and to control without supervision the insurance business by their arbitrary and unlimited power. The General Assembly should confer upon the Insurance Commissioner the power to fix maximum rates, and provide by statute for reasonable rules and for uniform rates on each class of property. At present the Southeastern Under- writers Association, the representative of the combined insurance companies of the South, has the power to fix the terms of the contract between these companies and the people of the State. Millions of dollars are involved in this contract, and if this monopoly, representing foreign corporations, treat the people of North Carolina with justice and equity, it constitutes the one exception in all of our business experience. The people should have a voice in this contract. The Insur- ance Commissioner should have the power to represent them, and to speak for them. Every argument against State supervision and control of insurance has been made against the control of every monopoly. The fallacy of all has been demonstrated by the logic of experience. HIGHWAYS The people have awakened to the necessity of good roads. We realize that they are an indispensable factor for material prosperity and for special advance- ment. We are building more highways than ever before, and are expending thereon millions of dollars. It has been estimated by experts that from thirty to forty per cent of the money spent on public roads is, relatively speaking, wasted or misdirected. President Wilson, at the recent meeting of the American Road Congress in Atlanta, said : "As important as the matter of providing additional funds may be for roads, even more important are the matters of better road administration, and of better maintenance of roads already constructed." . . . "It is clear," continued he, "that we are not getting the results we should have." This General Assembly should establish a Highway Commission composed of experts, or of men who would make a study of this improvement. They should direct the expenditure of all road money, and they should see that maintenance gets as much attention as construction. MESSAGES TO GENERAL ASSEMBLY 29 FORESTS The General Assembly should provide for the protection of our forests against ravages by fire and commercialism. The forests provide the rains that water the crops. They supply and conserve the streams that turn the wheels of industry. The failure to save from ruthless destruction our magnificent wooded areas will work an irreparable damage to ourselves and to our posterity. ' The lumberman is now denuding the mountains — mowing down their luxuriant covering, as the reaper mows a field of wheat. After him sweeps the conflagration, turning the once magnificent slopes and peaks into vast desolation of blackened ruin. We cannot expect the lumberman to sacrifice his individual interest to the public welfare. The State must exercise her power by proper regulation to save the forests and thereby preserve to the State this priceless heritage. state's prison The State's Prison has been managed with economy, honesty and business efficiency. The report of the Superintendent transmitted to the General Assembly shows the condition of the Prison and the operations in which the Prison has been engaged. It shows a balance to the Prison's credit above the cost of mainte- nance. And in this account the convicts of the State have done much work on the Hickory N"ut Gap Road and on the road in Madison County for which the Prison has no credit. Some years ago the State gave assistance by convict labor to certain railroad companies to enable them to construct railroads to remote and difficult places not provided with railway transportation. These convicts could have been hired to do work of the same kind at the rate of $1.50 or $1.75 a day each. The appro- priation of convicts was the equivalent to the appropriation of money out of the State treasury. As direct compensation for the labor of the prisoners, the State has accepted, in accordance with legislative enactment, stock in railroad com- panies that has no market value. The State has appropriated a value in these convicts to these railroad companies, realizing that the stock taken in payment is probably worthless. The real compensation to the State is to develop rich and inaccessible sections inhabited by a portion of our citizenship desiring and deserv- ing the facilities of communication and transportation with other portions of the State. In this way the State has appropriated as evidenced by stock: To the Elkin and Alleghany Eailway Company $193,500.00 To the "Watauga and Yadkin River Railway Company 18,000.00 To the Statesville Air Line Railway Company 58,800.00 To the Mattamuskeet Railway Company 99,765.00 To the Transcontinental Air Line Railway Company 17,200.00 Making a total of $387,265.00 And in addition to the above amounts $21,564.59, for which stock has not yet been received, making in all $408,829.59. These convicts have been appropriated under statutes vesting the power and discretion in the Governor and the Council of State, to decide when such convicts should be appropriated. All of these statutes should be amended so as to clothe 30 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG the board of directors of the State's Prison with this power and discretion. This power does not legitimately belong to the Governor and the Council of State. It does legitimately belong to the Prison Board. The Governor and the Council of State cannot in the very nature of the situation exercise the power with a thor- ough knowledge of the affairs of the Prison and a comprehensive view of its necessities and operations. The Prison Board should have entire charge of the Prison, and all convicts committed to the Prison. The statutes in their present form impose incongruous duties upon the Governor and Council of State. This is no longer desirable or advisable, but is au unwarranted interference with the Prison Board in its management of the Prison. PUBLIC HEALTH The State Board of Health has efficiently performed a beneficent work. By its agency sanitary conditions are improving. This department should be pro- vided with means to continue with increasing effectiveness this most essential work for the preservation of life and for the health and happiness of all the people. TUBERCULOSIS The problem of dealing with tuberculosis is most serious. In North Carolina it has been ascertained that eighteen thousand persons are the victims of this disease. Many may have it of whom we do not know. It is an ever-present plague that stalks abroad at noon-day, and one-seventh of all the deaths in the State are from this dreaded disease. The Sanatorium at Montrose was estab- lished in response to the demand that something must be done for the afflicted, and to stop the ravages of the plague. In my opinion this institution with its present scope and efficiency is utterly incapable of dealing effectively with the situation. As an institution for the purpose of educating people to care for them- selves, and disseminate knowledge of the disease, it cannot be as effective as could a bureau established for the purpose of sending literature to every person in the State known to be afflicted. Such literature could present the situation more intelligently to the people, and with more efficacy than could be done by a few patients who are fortunate enough to secure admission to the small establishment at Montrose. There are now about ninety patients in this institution. It is most humanely and most ably managed. Yet, it is altogether inadequate to deal with this stupendous proposition that so vitally affects the people. It has done good in individual instances, but there are thousands in the State who cannot gain admit- tance, and who will desire admittance when its efficiency is recognized. This institution can never care for those entitled to admission. On the present plan the whole revenue of the State could not meet the demand. It is one of the high- est obligations of the State to deal with this disease, to do all possible to prevent it, and to cure those who have it. I hope that this General Assembly can work out a practical method that will be effective. the state's institutions I am satisfied that it would be economy, and good business, that all the institu- tions of the State, with the exception of the State's Prison, should be put under the management of one board of not more than five members. This board should have charge of and direct supervision of the business management of these institu- MESSAGES TO GENERAL ASSEMBLY 31 tions. I am satisfied that such a system would save to the State thousands of dollars every year. But, if the General Assembly should not see proper to adopt this view, I recommend that the General Assembly shall direct that the Governor require that each State institution shall make to him in such form and detail as he may prescribe, a monthly or weekly report, as to their business management and condition. This would give the Governor at all times a clear insight into the workings of our institutions, and accomplish much in the way of economy and uniform business. CHILD LABOR The last General Assembly enacted a statute compelling the attendance of children upon the public schools. This statute should be enforced. The child cannot work at manual labor to advantage, but his mind is eager for knowledge and most retentive. His character is responsive to culture. The factory is no place for the child. The drudgery of toil is not his rightful inheritance, before his bones are hard, or his muscles are firm. If we grind the seed corn there will be a failure in the crop of men. "We should have upon our statute books a law forbidding children of tender years to work in mills or factories, and limiting the hours of labor of those who are of sufficient age to work. This law should provide that women shall not work at night in the mills. Motherhood should not be condemned to such service. And this law should be vitalized with safeguards for its enforcement. If, in our most progressive centers of industry and thrift, the family cannot live without the work of children and the drudgery of women, then our civilization has broken down, and is a failure. I commend the mill men of North Carolina for the humane spirit with which they have cared for the health and education of their employees, and the children of their employees. WESTERN TRAINING SCHOOL The General Assembly should earnestly consider the establishing of additional training schools for teachers for the western part of the State. We are paying out large sums to teachers who, by reason of circumstances and lack of convenient schools of proper character and facilities, have not been able to equip themselves efficiently for their work. Salaries paid for inefficient teachers must result in a more serious loss to the State than salaries paid for inefficient work in any other business or profession. We must create facilities which are convenient and within the reach of those who must teach the children of the State. A splendid and well equipped school has been established in the east. For a number of terms the Legislature has considered a school for the western section similar to that estab- lished at Greenville. The west desires this school located at some convenient point within reach of many counties not yet provided for. Many superintendents have brought to my attention the absolute need of such a school. I earnestly recommend that a school similar to the school at Greenville be established at some point in the western part of the State, located to serve the people of that locality. It would result in inestimable benefit to the people and stimulate our intellectual as well as material development. ADMINISTRATIVE OFFICERS SHOULD BE APPOINTED BY THE GOVERNOR If, in obedience to the expressed wishes of all political parties we provide primary elections for the nomination of State and Federal officers, it would be 32 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG difficult, if not impossible for the people to exercise an intelligent choice in the nomination of administrative officials. The people can, and do, center their view upon those who would stand at the head of the government. The whole trend of thought of the age is for the short ballot, for the direct responsibility to the people of those whom they can know and can intelligently select. If this General Assembly should clothe the Governor with the power to appoint all of the administrative officials of the State, except those named in the Constitution, it would accomplish a reform of immense benefit. President Wilson once said : "Put all your eggs in one basket and watch that basket." The Governor to a large extent is held responsible for the affairs of his administration. Give him the power to select the men that shall direct those affairs. Hold him responsible, and he will be responsive to the people's will. The terms of the present incum- bents of these positions would of course not be affected. They are all able and faithful public servants. Their appointment by the Governor would unify the administration and increase the efficiency of the government. You come as the representatives of the people to write the statutes of a State pressing forward to nobler achievements. We look to you for the policies that will direct us in the way of substantial progress and encourage to renewed energy. You will perform your task with fidelity and courage, and may you be guided by the wisdom and sustained by the strength vouchsafed to all who are steadfast in the resolve to do right. T „ Locke Craig, Governor of North Carolina. January 7, 1915. (7) LIST OF EMPLOYEES, GOVERNOR'S OFFICE, WITH THEIR SALARIES, JANUARY 8, 1915 To the Honorable, The General Assembly of North Carolina: In compliance with section 4409 of the Revisal of 1905, I herewith transmit to you a list of the employees of this office, together with their respective salaries per annum: Governor $5,000 Private Secretary 2,000 Executive Secretary 1,100 Clerk '. 900 Messenger 546 Locke Ceaig, January 8, 1915. Governor. MESSAGES TO GENERAL ASSEMBLY 33 (8) APPROPRIATION BY FEDERAL GOVERNMENT FOR CO-OPERATIVE AGRICULTURAL EXTENSION WORK January, 1915. The Honorable, The General Assembly of North Carolina: I herewith send — 1. A copy of a letter from D. F. Houston, Secretary of Agriculture, dated January 11, 1915; 2. Copy of suggested form of legislation for giving the State's assent to the act of Congress of May 8, 1914; 3. "Weekly News Letter to Crop Correspondents, dated June 3, 1914; 4. A copy of the Agricultural Extension of May 8, 1914. These documents relate to the appropriation made by the Federal Government for cooperative agricultural extension work. In order that the State of North Carolina may participate in this appropriation, it is necessary that the General Assembly give assent to the terms of the extension act of Congress of May 8th, all of which will fully appear in the papers hereto attached. Locke Ckaig, Governor. Department of Agriculture, Hon. Locke Craig, Washington, January 11, 1915. Governor of North Carolina, Raleigh, North Carolina. Sir: — I have the honor to bring to your attention a provision in the Agri- cultural Extension Act of Congress of May 8, 1914, requiring that in the case of each State, the Legislature give assent to its terms. This is necessary, even though the Governor of the State may previously have given his assent, pending legislative action, in accordance with section 3 of the act. This act, in addition to making a permanent annual appropriation of $10,000 to each State accepting its provisions, further appropriates, begin- ning with the fiscal year 1915-16, additional sums for succeeding years, to be apportioned among the States on the basis of their rural population. These further appropriations are to be duplicated by the States, as set forth in the following provision: "That no payment out of the additional appropriations herein provided shall be made in any year to any State until an equal sum has been appropriated for that year by the Legislature of such State, or provided by State, county, college, local authority, or indi- vidual contributions from within the State, for the maintenance of the cooperative agricultural extension work provided for in this act." I would therefore respectfully call your attention to the fact that pro- vision should be made for funds from sources within the State to offset the additional Federal appropriations under this act, due beginning July 1, 1915, if the State is to receive the full benefits of the act. For your information, I am enclosing (1) copy of the Agricultural Exten- sion Act of May 8, 1914, (2) suggested form of legislation for giving the 34 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG State's assent to this act, and (3) copy of the Weekly News Lett'er of this Department of June 3, 1914, which shows the amount North Carolina may receive under this act. For detailed information regarding the requirements of this work in your State, I would suggest that you confer with the president of your State Agricultural College receiving the benefits of this act. Respectfully, (Signed) D. F. Houston, (Inclosures) Secretary. SUGGESTED FORM OF LEGISLATION FOR GIVING THE STATE'S ASSENT TO THE ACT OF CONGRESS OF MAY 8, 1914. Whereas the Congress of the United States has passed an act approved by the President, May 8, 1914, entitled "An act to provide for cooperative Agricultural Extension Work between the Agricultural Colleges in the several States receiving the benefits of the act of Congress approved July 2, 1862, and of acts supplementary thereto, and the United States Department of Agriculture"; and Whereas it is provided in section 3 of the act aforesaid that the grants of money authorized by this act shall be paid annually "to each State which shall by action of its Legislature assent to the provisions of this act": There- fore, be it Resolved by (both houses of the Legislature), That the assent of the Legislature of the State of North Carolina be and is hereby given to the pro- visions and requirements of said act, and that the trustees of the North Carolina College of Agriculture and Mechanic Arts be and they are hereby authorized and empowered to receive the grants of money appropriated under said act, and to organize and conduct agricultural extension work which shall be carried on in connection with the North Carolina College of Agriculture and Mechanic Arts, in accordance with the terms and conditions expressed in the act of Congress aforesaid. [From Weekly News Letter to Crop Correspondents, United States Department of Agriculture, June 3, 1914] MAXIMUM AMOUNTS THE STATES CAN RECEIVE UNDER THE SMITH-LEVER COOPERATIVE AGRICULTURAL EXTENSION ACT. The appended table shows the maximum amounts which the several States will be eligible to receive under H. R. 7951 (the Smith-Lever Act), which provides for cooperative agricultural extension work between the States and the United States Department of Agriculture. As the table shows, the act makes available for the next nine fiscal years an aggregate sum of $23,120,000 of Federal funds to be expended in instruc- tion and practical demonstrations in agriculture and home economics. To obtain this total the States must appropriate for like purposes a total of $18,800,000, making a grand total of $41,920,000 to be expended during the next nine fiscal years on direct agricultural extension work. Thereafter the Federal Government is to appropriate $4,580,000 annually, and the States, to take their full quota, must appropriate $4,100,000 annually, making a total annual expenditure for this purpose of $8,680,000. The purposes to which the Federal funds are to be applied are defined by the act as follows: That cooperative agricultural extension work shall consist of the giving of instruction and practical demonstrations in agriculture MESSAGES TO GENERAL ASSEMBLY 35 and home economics to persons not attending or resident in said colleges in the several communities, and imparting to such persons information on said subjects through field demonstrations, publi- cations, and otherwise; and this work shall be carried on in such manner as may be mutually agreed upon by the Secretary of Agri- culture and the State agricultural college or colleges receiving the benefits of this act. None of this money may be applied to the purchase, erection, and repair of any building, or the purchase and rental of land, or any college course teaching or lectures in colleges, promoting agricultural trains, etc. Not more than 5 per cent of each annual appropriation may be used in printing or the distribution of publications; so that at least 95 per cent must be expended in direct extension activities. Table showing maximum, amounts of Federal funds which the States would be eligible to receive under S. R. 7951, which provides for cooperative agricultural extension work. (Each State must duplicate all Federal money above $10,000 a year.] (EXPLANATION OF APPROPRIATIONS.)— The act first appropriates $480,000 annually, be- ginning with 1914-15, and gives each State $10,000 for each fiscal year as a basic fund. The act then appropriates additional Federal moneys to be distributed in the proportion of rural population. To share in these additional funds the State must duplicate the additional Federal money thus received. The additional appropriations are as follows: 1915-16, S600.000; 1916-17, $1,100,000; 1917-18, $1,600,000; 1918-19, $2,100,000; 1919-20, $2,600,000; 1920-21, $3,100,000; 1921-22, $3,600,000; 1922-23 and thereafter, $4,100,000. It will be noticed that after 1915-16 the total appropriation is increased each year by $500,000. The fifth column in the table shows the amount of each additional $500,000 that the State is entitled to receive. To get the amount that any State is entitled to receive for any fiscal year from 1917 to 1922, add the amount given in the table to the total for the immediately preceding year. Example: Ala- bama, in 1917-18 will receive $49,404 plus $17,911=$67,315; for 1918-19 Alabama will receive $67,315 plus $17,911=S85,226; and so on until the maximum given under the column 1922-23 is reached. The totals for each State contain the basic $10,000 granted each year. To obtain the amount that the State would have to duplicate in any year to receive its entire Federal quota, subtract $10,000 from the total. Example: The amount Alabama would have to duplicate in 1917-18 is $67,315 minus $10,000, or $57,315. 1917-18 1918-19 1922-23, Fiscal year 19: 1915-16 1916-17 1919-20* and there- 1920-21 after 1921-22 For the above Per cent fiscal State that rural Maxi- Maxi- years, popula- Amount mum mum add each For fiscal tion of each amount amount year the year State State each each amount 1922-23 bears to will State is State is given be- and there- total rural receive entitled entitled low to the after popula- to receive to receive total for tion* the imme- diately preced- ing year Alabama— _ __ _ 3.58 $10,000 $31,493 $49,404 $17,911 $156,870 Arizona ._ __ .29 2.78 10,000 10,000 11,717 26,680 13,147 40,580 1,431 13,900 21,730 Arkansas .. 123,980 California - 1.84 10,000 21,039 30,236 9,198 85,424 Colorado. _ . .80 10,000 14,795 18,789 3,995 42,759 Connecticut .232 10,000 11,398 12,563 1,165 19,554 Delaware . . . .213 10,000 11,281 12,347 1,067 18,749 Florida 1.08 10,000 16,491 21,898 5,408 54,345 36 LETTERS AND PAPERS OF GOVE RAW R LOCKE CRAIG Fiscal year 1914-15 1915-16 1916-17 1917-18 1918-19 1919-20* 1920-21 1921-22 1922-23, and there- after State Per cent that rural popula- tion of State bears to total rural popula- tion* Amount each State will receive Maxi- mum amount each State is entitled to receive Maxi- mum amount each State is entitled to receive For the above fiscal years, add each year the amount given be- low to the total for the imme- diately preced- ing year For fiscal year 1922-23 and there- after 4.19 .52 4.38 3.16 3.13 2.43 3.51 2.35 .731 1.29 .49 3.00 2.48 3.22 3.84 .491 1.79 .14 .36 1.28 .57 3.90 3.82 1.04 4.26 2.71 .741 6.15 .04 2.61 1.03 3.53 5.99 .41 .38 3.21 1.09 2.01 2.69 .21 510,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 S35.174 13,110 36,282 28,943 28,794 24,556 31,088 24,094 14,389 17,748 12,922 28,002 24.S99 29,330 33,036 12,952 20,728 10,834 12,133 17,660 13,414 33,443 32,953 16,236 35,557 26,256 14,442 46,893 10,220 25,691 16,167 31,202 45,970 12,438 12,275 29,267 16,523 22,071 26,164 11,250 556,151 15,702 58,184 44,729 44,456 36,686 48,660 35,839 18,047 24,203 15,374 43,005 37,315 45,438 52,232 15,412 29,668 11,529 13,909 24,043 16,259 52,979 52,081 21,431 56,855 39,802 18,144 77,637 10,402 38,768 21,308 48,870 75,945 14,468 14,170 45,323 21,958 32,130 39,634 12,290 820,978 2,592 21,902 15,786 15,662 12,130 17,573 11,745 3,657 6,456 2,443 15,002 12,416 16,108 19,196 2,460 8,940 695 1,777 6,383 2,845 19,536 19,127 5,196 21,297 13,547 3,701 30,744 183 13,076 5,140 17,668 29,975 2,031 1,896 16,056 5,436 10,059 13,470 1,041 3182,020 31,254 189,596 139,442 138,428 109,466 154,103 106,309 39,991 62,936 30,029 133,016 111,811 142,086 167,411 30,172 83,308 15,699 24,572 62,341 33,329 170,195 166,846 52,607 Ohio 184,640 121,081 40,352 262,101 11,497 117,223 52,148 154,878 255,795 Utah -- 26,655 25,543 141,659 54,571 92,484 120,454 18,541 99.988 8480,000 51,080,000 SI, 580, 000 3500,000 84,580,000 *Figures after 1920 subject to returns of fourteenth census on rural population. MESSAGES TO GENERAL ASSEMBLY 37 [Public— No. 95 — 63d Congress] [H. E. 7951] An act to provide for cooperative agricultural extension work between the agricultural colleges in the several States receiving the benefits) of an act of Congress approved July 2, 1862, and of acts supplement- ary thereto, and the United States Department of Agriculture. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to aid in diffusing among the people of the United States useful and practical information on subjects relating to agriculture and home economics, and to encourage the application of the same, there may be inaugurated in connection with the college or colleges in each State now receiving, or which may hereafter receive, the benefits of the act of Congress approved July 2, 1862, entitled "An act donating public lands to the several States and Territories which may provide colleges for the benefit of agriculture and the mechanic arts" (Twelfth Statutes at Large, page 503), and of the act of Congress approved August 30, 1890, (Twenty-sixth Statutes at Large, page 417 and chapter 841), agricultural extension work which shall be carried on in cooperation with the United States Department of Agriculture: Provided, that in any State in which two or more such colleges have been or hereafter may be estab- lished the appropriations hereinafter made to such State shall be adminis- tered by such college or colleges as the Legislature of such State may direct: Provided further, that, pending the inauguration and development of the cooperative extension work herein authorized, nothing in this act shall be construed to discontinue either the farm management work or the farmers' cooperative demonstration work as now conducted by the Bureau of Plant Industry of the Department of Agriculture. Sec. 2. That cooperative agricultural extension work shall consist of the giving of instruction and practical demonstrations in agriculture and home economics to persons not attending or resident in said colleges in the several communities, and imparting to such persons information on said subjects through field demonstrations, publications, and otherwise; and this work shall be carried on in such manner as may be mutually agreed upon by the Secretary of Agriculture and the State agricultural college or colleges receiv- ing the benefits of this act. Sec. 3. That for the purpose of paying the expenses of said cooperative agricultural extension work and the necessary printing and distributing of information in connection with the same, there is permanently appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $480,000 for each year, $10,000 of which shall be paid annually, in the man- ner hereinafter provided, to each State which shall by action of its Legisla- ture assent to the provisions of this act: Provided, that payment of such installments of the appropriation hereinbefore made as shall become due to any State before the adjournment of the regular session of the Legislature meeting next after the passage of this act may, in the absence of prior legis- lative assent, be made upon the assent of the Governor thereof, duly certi- fied to the Secretary of the Treasury: Provided further, that there is also appropriated an additional sum of $600,000 for the fiscal year following that in which the foregoing appropriation first becomes available, and for each year thereafter for seven years a sum exceeding by $500,000 the sum appro- priated for each preceding year, and for each year thereafter there is per- manently appropriated for each year the sum of $4,100,000 in addition to the sum of $480,000 hereinbefore provided: Provided further, that before the 38 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG funds herein appropriated shall become available to any college for any fiscal year plans for the work to be carried on under this act shall be sub- mitted by the proper officials of each college and approved by the Secretary of Agriculture. Such additional sums shall be used only for the purposes hereinbefore stated, and shall be allotted annually to each State by the Sec- retary of Agriculture and paid in the manner hereinbefore provided, in the proportion which the rural population of each State bears to the total rural population of all the States as determined by the next preceding Federal census: Provided further, that no payment out of the additional appropri- ations herein provided shall be made in any year to any State until an equal sum has been appropriated for that year by the Legislature of such State, or provided by State, county, college, local authority, or individual contribu- tions from within the State, for the maintenance of the cooperative agricul- tural extension work provided for in this act. Sec. 4. That the sums hereby appropriated for extension work shall be paid in equal semiannual payments on the first day of January and July of each year by the Secretary of the Treasury upon the warrant of the Secre- tary of Agriculture, out of the Treasury of the United States, to the treas- urer or other officer of the State duly authorized by the laws of the State to receive the same; and such officer shall be required to report to the Secre- tary of Agriculture, on or before the first day of September of each year, a detailed statement of the amount so received during the previous fiscal year, and of its disbursement, on forms prescribed by the Secretary of Agriculture. Sec. 5. That if any portion of the moneys received by the designated officer of any State for the support and maintenance of cooperative agricul- tural extension work, as provided in this act, shall by any action or contin- gency be diminished or lost, or be misapplied, it shall be replaced by said State to which it belongs, and until so replaced no subsequent appropriation shall be apportioned or paid to said State, and no portion of said moneys shall be applied, directly or indirectly, to the purchase, erection, preserva- tion, or repair of any building or buildings, or the purchase or rental of land, or in college course teaching, lectures in colleges, promoting agricul- tural trains, or any other purpose not specified in this act, and not more than 5 per centum of each annual appropriation shall be applied to the print- ing and distribution of publications. It shall be the duty of each of said colleges annually, on or before the first day of January, to make to the Governor of the State in which it is located a full and detailed report of its operations in the direction of extension work as defined in this act, includ- ing a detailed statement of receipts and expenditures from all sources for this purpose, a copy of which report shall be sent to the Secretary of Agri- culture and to the Secretary of the Treasury of the United States. Sec. 6. That on or before the first day of July in each year after the passage of this act the Secretary of Agriculture shall ascertain and certify to the Secretary of the Treasury as to each State whether it is entitled to receive its share of the annual appropriation for cooperative agricultural extension work under this act, and the amount which it is entitled to receive. If the Secretary of Agriculture shall withhold a certificate from any State of its appropriation, the facts and reasons therefor shall be reported to the President, and the amount involved shall be kept separate in the Treasury until the expiration of the Congress next succeeding a session of the Legislature of any State from which a certificate has been withheld in order that the State may, if it should so desire, appeal to Con- gress from the determination of the Secretary of Agriculture. If the next Congress shall not direct such sum to be paid, it shall be covered into the Treasury. MESSAGES TO GENERAL ASSEMBLY 39 Sec. 7. That the Secretary of Agriculture shall make an annual report to Congress of the receipts, expenditures, and results of the cooperative agri- cultural extension work in all of the States receiving the benefits of this act, and also whether the appropriation of any State has been withheld; and if so, the reasons therefor. Sec. 8. That Congress may at any time alter, amend, or repeal any or all of the provisions of this act. Approved May 8, 1914. (9) SUBMITTING LETTER FROM THE SECRETARY OF AGRICULTURE, TOGETHER WITH PROPOSED BILL FOR THE PROTECTION OF FISH AND GAME ON LANDS IN STATE PUR- CHASED BY FEDERAL GOVERNMENT January, 1915. To the Honorable, The General Assembly of North Carolina: I send you herewith a copy of a letter from the Secretary of Agriculture, Hon. D. F. Houston, together with a proposed bill for the protection of fish and game on the lands recently purchased by the Federal Government in the western part of the State. If properly protected, these lands would soon become stocked with the finest game, deer, bear, elk, and smaller game. If not protected, the larger of the wild animals would be destroyed, and the whole of the lands would soon become of no account as a place for game. Protection by the State or by the Federal Govern- ment is imperatively demanded. If the State does not wish to assume the expense and responsibility of guarding and conserving this territory, the consent of the State should be given to the Federal Government for this purpose. Yours truly, Locke Craig, Governor. Department of Agriculture, Washington, January 25, 1915. Hon. Locke Craig, Governor of North Carolina, Raleigh, N. G. Deae Governor Craig: — Referring to the proposed bill for the protection of game and fish on Federal lands in the western part of North Carolina, Mr. William L. Hall of the Forest Service recently conferred with the repre- sentatives of the Appalachian Park Association at Asheville in regard to the form of bill which had been sent you. At that conference the point came up that it would probably be well to leave with the Federal Government the decision as to whether or not any land made a Federal game preserve should be completely closed to the taking of fish and game at all times. In this view the Solicitor of this Department and the Forester also agreed. I there- fore enclose a redraft of the bill sent you some days ago, and desire to ask that you consider it as the recommendation of the Department in place of the bill sent you on January 11. Very sincerely yours, D. F. Houston, Secretary. 40 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG A bill to be entitled An act to. give the consent of the State of North Carolina to the making by the Congress of the United States, or under its authority, of all such rules and regulations as in the opin- ion of the Federal Government may be needful in respect to game animals, game and nongame birds, and fish on lands, and in or on the waters thereon, acquired or to be acquired by the Federal Gov- ernment in the western part of North Carolina for the conservation of the navigability of navigable rivers. Whereas the Government of the United States, with the consent of the General Assembly of the State of North Carolina, has acquired and will acquire areas of forested land in the western part of said State for the pur- pose of conserving the navigability of navigable streams, and said lands and waters thereon are and will be stocked, naturally and artificially, with game animals, game and nongame birds, and fish; and Whereas, in order adequately to enjoy and protect the occupancy and use of said areas, it is important that the United States be fully authorized to make all needful rules and regulations in respect to such animals, birds, and fish: Therefore, The General Assembly of North Carolina do enact: Section 1. That the consent of the General Assembly of North Carolina be and hereby is given to the making by the Congress of the United States, or under its authority, of all such rules and regulations as the Federal Gov- ernment shall determine to be needful in respect to game animals, game and nongame birds, and fish on such lands in the western part of North Carolina as shall have been, or may hereafter be, purchased by the United States under the terms of the act of Congress of March 1, 1911, entitled "An act to enable any State to cooperate with any other State or States, or with the United States, for the protection of the watersheds of navigable streams, and to appoint a commission for the acquisition of lands for the purposes of conserving the navigability of navigable rivers" (Thirty -sixth United States Statutes at Large, page 961), and acts of Congress supplementary thereto and amendatory thereof, and in or on the waters thereon. (10) TRANSMITTING REPORTS OF THE VARIOUS INSTITUTIONS OF THE STATE January, 1915. To the Honorable, The General Assembly of North Carolina: I herewith transmit to you the Report of the Legislative Committee appointed by the General Assembly of 1913, under section 5378 of the Revisal, to audit the accounts and vouchers of the State Treasurer, Insurance Commissioner, and State Auditor, for the fiscal years ending December 1, 1913, and December 1, 1914. The original of this report was filed in this office in December, 1914, but in some way has been misplaced, and is not now in the office. For this reason it was overlooked and not transmitted sooner to the General Assembly. The report here- with transmitted is a carbon copy. Locke Craig Governor. MESSAGES TO GENERAL ASSEMBLY 41 (11) APPOINTMENTS STATE BOARD OF EDUCATION, SUBMITTED TO THE SENATE FOR RATIFICATION Executive Department Raleigh, North Carolina February 25, 1915. To the Senate of North Carolina: As President of the State Board of Education, I have the honor to report to your honorable body that the State Board of Education, under section 4252 of the Revisal of 1905 of North Carolina, at its meeting on February 25, 1915, appointed, subject to the confirmation of the Senate, the following as members of the board of directors of the State Normal and Industrial College, to succeed themselves for a term of sis years, beginning March, 1916: George W. Hinshaw of Fifth Congressional District, T. B. Bailey of Seventh Congressional District, T. S. McMullan of First Congressional District. Respectfully submitted, Locke Craig, Governor, and President of State Board of Education. (12) APPOINTMENTS SUBMITTED TO SENATE FOR RATIFICATION Executive Department Raleigh, North Carolina March 6, 1915. To the Senate of North Carolina: In the exercise of the duty and power conferred upon me by law, I nominate the persons hereinafter named for the offices designated; and by and with the advice and consent of the Senate, they will be and are hereby severally and respectively appointed to the said offices. Directors for the State School for the Blind and Deaf, Raleigh, for the term of six years, beginning March 6, 1915 : G. E. Lineberry of Hertford County, J. T. Finley of Wilkes County, C. B. Edwards of Wake County, to succeed J. T. Nichols, M. L. Kesler of Davidson County, to succeed Archibald Johnson. 42 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Directors for the State Hospital at Goldsboro for the term of six years, begin- ning March 12, 1915: Dr. J. G. Anderson of Greene County, J. A. Beaman of Sampson County, Dr. J. T. Hoggard of Pender County. Members of the Board of Agriculture for the term of six years, beginning March 11, 1915 : William Bledsoe, Eighth District, B. W. Scott, Fifth District, C. W. Mitchell, Second District. Directors of the State Hospital at Morganton for the term of six years, begin- ning March 1, 1915: Heriot Clarkson of Mecklenburg County, Charles P. Matheson of Alexander County, Dr. L. !N". Glenn of Gaston County. Directors of the North Carolina School for the Deaf at Morganton, for the term of six years, beginning March 12, 1915: Archibald Johnson of Davidson County, to succeed J. H. Mock, Rev. J. 0. Atkinson of Alamance County, to succeed M. H. Holt, deceased. Directors of the State Hospital at Raleigh, for the term of six years, beginning March 12, 1915: Dr. T. W. M. Long of Halifax County, W. H. Williams of Beaufort County, B. B. Adams of Johnston County, to succeed E. G. Moore. Members of the Geological Board, for the term of four years : John Sprunt Hill of Durham County, to succeed W. H. Williamson, Hugh McRae of New Hanover County, F. R. Hewett of Buncombe County. Directors of the School for the Feeble-minded, at Kinston, for the term of six years, beginning March 4, 1915 : W. C. Newland of Caldwell County, D. F. Wooten of Lenoir County, W. A. Thompson of Beaufort County, J. R. Baggett of Harnett County, Mark Majette of Tyrrell County, to succeed A. C. Davis, J. D. Boushall of Wake County. Directors of the A. and M. College, Raleigh, for the term of eight years, begining March 20, 1915: M. B. Stickley of Cabarrus County, T. T. Ballinger of Polk County, O. L. Clark of Bladen County, W. H. Williamson of Wake County, to succeed N. B. Broughton, deceased, P. S. Boyd of Iredell County, to succeed D. A. Tompkins, deceased. Locke Craig, Governor. MESSAGES TO GENERAL ASSEMBLY 43 (13) BIENNIAL MESSAGE TO THE GENERAL ASSEMBLY, SESSION 1917 To the Honorable, the General Assembly of North Carolina: The days of my ministration are accomplished. In obedience to the Constitu- tion and in compliance with your will I speak to you my last word as the Governor of the State of North Carolina. Four years ago you invested me with the responsibilities of this high office. I have welcomed every opportunity for service, and my strength and energy have been devoted to the State. I have administered this office steadfast in the resolve to do exact justice to all — to the rich and to the poor, to the strong and to the weak — without regard to race or politics. In delivering up this place to my able and patriotic successor, it is with regret that I have not been able to do more for the people that conferred upon me the honor and the trust, to be the chief magistrate of the State. I acknowledge with gratitude the courtesy and cooperation, the faithful work of all of my associates and assistants in office. I reflect with some pride and satisfaction that the people by an overwhelming majority have placed the seal of approval upon my administration, and have declared their confidence in my successor and his administration. I do not come with a full program for your consideration ; that task will be performed by my successor. SALARIES OF THE STATE OFFICERS In my opinion the salaries of State officers should be increased. The Constitu- tion forbids any increase of the salary of Governor and officers created by the Con- stitution during their terms of office. Any increase for them must be before the inauguration. The greatly increased cost of living has made all salaries less valuable. It seems but reasonable that we should pay our Chief Executive as much as the Federal Government pays the Senators and Representatives in Congress. The Governor cannot live in the Mansion provided by the State at the present salary and do the things expected of him, and which he must do in accordance with established custom and the requirements of hospitality. I know whereof I speak. He must provide the means from other sources, and this the State does not desire. The same observation applies to all the State officers, but the Legislature will have full time for consideration of remuneration to all of them except the Governor and the members of his council. We have able, conscientious officials. They are worth more, they earn more than they receive. The people of North Carolina would willingly pay a reasonable and just compensation for efficient service. All the offices and all the places in our Government have been administered in economy and honesty, above the breath of scandal, and by men of upright lives and high purposes, whose daily walk is in the democratic plainness and simplicity of the tribunes of ancient Rome. CONSTITUTIONAL AMENDMENTS At the last election the people ratified amendments to the Constitution. This General Assembly must enact statutes to make them effective. Tou will by the 44 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG amendments be relieved of a vast amount of local legislation, and have time for the consideration of problems of general importance. CUBA AND THE BONDS Recently the Republic of Cuba has come into the possession of "Reconstruction Bonds" amounting to more than two millions of dollars, and is attempting to enforce the payment of these bonds in the Supreme Court of the United States. The bonds were issued in the evil days that followed the war, when corruption and plunder were shameless, when marauders infested this Capitol. The State received no benefit from them. They were promptly repudiated, and the Constitutional Convention of 1875 made unlawful their payment by any official or by any Gen- eral Assembly. Their dishonor was published to the world, and no interest upon them has ever been paid. Adventurers and unscrupulous speculators have procured or gotten control of many of these bonds, and have by devious methods attempted to collect them. The Federal Constitution provides that no individual can sue the sovereign State. On this account the holders and their agents have attempted to force collection through the agency of other States of the Union, and for this purpose have offered most liberal gifts to States with whom they have negotiated. After these States became informed of the facts they refused to touch the unclean thing. If North Carolina owed the bonds, she would pay them, and would have recog- nized their validity. She does not owe them, and will in every way possible resist their payment. The citizens of North Carolina have always felt the deepest interest in the welfare and the destiny of the Republic of Cuba. In 1898 thousands of young men volunteered from the State to enlist in the army for the relief from oppression and for the liberty of the people of that island. The blood of the bravest was shed in this war of emancipation and humanity. We were, for these reasons, astonished that the Republic of Cuba should make herself a party to the unholy alliance for forcing from North Carolina the payment of these dishonored and fraudulent bonds. I have declined to consider any suggestion of compromise. I have declined all suggestions of negotiations with the view to securing a withdrawal of this suit by the Republic of Cuba. These bonds are not like the South Dakota bonds. It is inconceivable to me that the action can be maintained in any jurisdiction, or that their payment by this sovereign State can be enforced by any power. I have employed able counsel to assist the Attorney-General. The case is set for argument in the Supreme Court of the United States on Monday the eighth of January. We will fight it to a finish. I am convinced that the State of North Carolina will prevail in the great case now pending, and that this last cloud of Reconstruction which has threatened for fifty years upon our horizon will disappear forever. CONDITION OF THE STATE I rejoice to declare that the State is in better condition than at any period of her whole history, that the governing party that placed me here is stronger and more secure than ever in the loyalty and harmonious union of its members, and that by the long continuation of a government of integrity and devotion to the public weal, it has justified the confidence and trust of the people. MESSAGES TO GENERAL ASSEMBLY 45 In our memory there are years of darkness and hardship with tempests of war for a background, when political night prevailed, and its minions went forth to plunder and to devour, when fields were barren, when schools were closed, when people were poor and discouraged, and when opportunity was denied. This was indeed a land of sorrows and acquainted with grief. We, ourselves, have been witnesses and partakers in the transformation of a State and her people. Out of the darkness of reconstruction there was the dayspring of '76. The people girded their loins to overcome adversity. They reestablished a government of law and security. They rehabilitated the State and her institutions. They opened the University and built the schools. During the sixteen years of this century North Carolina has made more progress than in all the years of her preceding history. In substantial development she has been surpassed by no State of the Union, nor by any civilized country whose history we know. Her growth and accomplishment is like a tale of Arabian romance. AGRICULTURE We are an agricultural people, and agriculture measures our National progress. By the intelligent cultivation of the soil, the yield of all staple crops per acre has been about doubled. The acreage of tillage has been increased until now the State, once far behind, ranks in agriculture among the first of the Union. The prosperity of the farm appears to the passer-by in improved fields, improved dwellings, and all the appointments of the farm. The College of Agriculture and Mechanic Arts and the Department of Agri- culture have been potential agencies in this wonderful development. The College must be manned and equipped for its larger usefulness. It should have five thousand students. Its alumni will go to all sections of the State, and of the country, trained for captains of industry, for the practical and scientific cultivation of the soil and for the higher development of the profession of agriculture. The Department of Agriculture has stimulated farming to increasing activity. It has protected the farmers from imposition, it has ascertained and encouraged the most profitable crops by methods of intelligent experiment and demonstration. The building now occupied by the Department is not fit. In its stead there should be erected a building commensurate with the requirements, typifying the finest and greatest of all of the industries of North Carolina. MANUFACTURES AND COMMERCE Manufacturing is prospering as never before, and is developing in every section of the State. The cotton mills alone require for their operation a hundred and eighty-seven thousand horse power. They manufacture all the cotton that we produce and more. The value of their product for the last year was a hundred million dollars. The utilization of waterpower is assuming large proportions. On a twenty mile section of the Yadkin River two hundred and fifty thousand horse power is now in course of development. From one end of the State to the other are electric cables through which are poured the transformed power of the French Broad, the Catawba, the Yadkin, the Pee Dee, the Cape Fear and the Roanoke, delivering exhaustless energy to the centers of industry, lighting cities and towns, and driving millions of wheels and spindles. The commercial advancement of our towns and cities is keeping pace with manufacturing and agriculture. 46 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG RURAL CONDITIONS The country home is no longer a place of isolation and desolation. Improved farming brings the comforts of life: the telephone, the mail box, good schools, and good roads enlarge and illuminate the horizon of country life. As rural conditions improve ambitious youth and manhood will abide and grow in the free and pure atmosphere for the breeding of a robust race. The country home should be provided with all modern appliances of comfort and economy. Rural communities should be empowered by statute to incorporate themselves for the purpose of securing water and light, and all available public utilities. Running water in the home is the most desirable of all modern conveniences. It saves women and children from drudgery in the heat and in the cold. It brings comfort and cleanliness. It preserves health. Every farmer of moderate means can have this convenience. It is not an expense. It is an economy. With screens in the windows and pure running water in the house, the home will be clean and sanitary, and the people who dwell therein will be cleaner, healthier, stronger and better. VACANT LANDS "We have always the perplexing question of taxation. The Constitution makes the solution difficult. The large per cent of the personal wealth of the State is not listed for taxation. One cause for this is the alleged undervaluation of the land. The Corporation Commission made an intelligent and courageous effort to equalize the tax values of the State, and have accomplished much, but the situation is by no means satisfactory. There are in the State vast areas of unused land held for speculation. The owners neither use it not intend to use it. These lands are listed for taxation at a very small part of their sale value. In assessments the discrimination is in their favor and against the lands that have been improved. These unused lands should not be favored by the tax assessor, for their owners are appropriating the value — the unearned increment created by the growth and enterprise of the whole community. If there be any discrimination let it favor the man who has improved by industry his holdings, and made his land productive; not to the man who refuses to improve and who prevents the natural development. A proper assessment would discourage the holding of vacant land for purposes of speculation, and encourage the industrious and the energetic to buy their own homes. This is especially true of city and surburban property. There is nothing that contributes more to the strength and patriotism, the highest development of citizenship, than the ownership of homes. A proprietor is independent. He cannot be a serf. Every farmer in Worth Carolina should determine to own the land upon which he lives though the acreage be small. He will then have a firm dwelling place, a steadfast interest in country and government. The Federal Reserve Act has destroyed the money monopoly. The farm loan bank recognizes the land as security upon which money can be obtained on long and easy terms. Land in Worth Carolina is comparatively cheap. A man of energy and determination can own his home if he will. MESSAGES TO GENERAL ASSEMBLY 47 GOOD EOADS Good roads have been a potential agency for the welfare of the State. In obedience to the dictates of common sense, business requirements and the pro- gressive spirit of the age, the people of North Carolina have determined to have good roads. During the last four years we have built twice as many miles of improved highways as in all our preceding history. We now have about fifteen thousand miles of well graded, surfaced roads. In January, 1913, we had about five thousand miles. We have built ten thousand since then. During the last four years the Central Highway has been built from the Atlantic Ocean over the coastal plain, over the hills of the Piedmont, over the Blue Ridge to the Canyon of the Great Smoky Mountains. The section of this road from Old Fort to Ridge Crest, and a section in Madison County were built by State convicts. Within the last four years the highway from Charlotte to Asheville has been completed. The State convicts built that difficult section from Chimney Rock to Hickory Nut Gap. Similar highways have been built across the State and into every section. Road building goes on with increasing momentum. No community will be without them unless it be satisfied to deny itself the improvements of modern life in this day of enlightenment and progress. The old country road of rocks and mud and steep hills, consuming energy, for- bidding progress, is past. With good roads communities are correlated, markets are available, schools and churches are accessible, land rises in value, progress is inevitable. Our highways are immeasurably finer than "The King's Highway" of old, and they are the tracks for the swift and powerful vehicles. The automobile is the modern machine for local transportation. They are rapidly coming into universal use. We cannot get along without them, and they cannot get along without the good road. Their indispensable efficiency is not available without the graded, surfaced highway. They are monopolizing the roads, and they make road building and road maintenance far more expensive. They should bear a large part of this burden. The tax on them might be increased, and their owners would not complain provided the money be applied to the better- ment of the roads. HIGHWAY COMMISSION The State Highway Commission was established by the General Assembly of 1915. This com m ission has justified its creation. Its usefulness has been limited by lack of funds. The revenue from automobiles might be largely ad- ministered by the Commission. The modern highway is no longer a neighborhood affair, but a State institution for communication and use by the people of different sections. By improper location and construction a vast amount of money has been spent not to the best advantage. This can in the future be remedied by conferring upon the Commission supervisory powers. Competent and experienced engineers could be furnished. BAILEOAD GEADE CEOSSINGS On all of the principal highways railroad grade crossings should be abolished. This is demanded for the utility of the road, for the economy of the railroad, and in the interest of safety and human life. The railroads are now more prosperous than ever before. Their net earnings are greater. For the last fiscal year the 48 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG net earnings of the railroads of the south were approximately $3,500 per mile. They have already realized the duty which they owe to the public of removing this inconvenience and danger. They have begun the work, and should proceed with all possible expedition while the expense can be easily borne. The authorities of the State have the right to compel the abolition of grade crossings. I do not mean that the whole evil should be remedied at once. Due consideration should be given to the transportation companies, but in the location and the building of our highways we should avoid the grade crossings. The State Highway Commission might designate, after consultation with the Corporation Commission and with the companies, what crossings should be abolished. FEDERAL AID FOE BOAD BUILDING Through the Highway Commission the State is enabled to receive the benefits of the Federal Aid Road Bill, which places at our disposal for road construction $115,000 for the present year, and an increasing amount for each succeeding year. One of the provisions of this Federal Act is that funds must be provided for the maintenance of roads upon which the Federal money is expended. The State must therefore provide a maintenance fund if we are to take advantage of this Federal aid, and cooperate with the Federal Government. RAILROAD BUILDING It has been the recognized policy of the State to aid in the construction of certain railroads in the Piedmont section, and across the Blue Ridge Mountains. Convicts have been furnished to the Statesville Air Line Railway, the Elkin and Alleghany Railway, and to the Watauga and Yadkin Valley Railway. These convicts are not paid for in cash, but, as authorized by law, are paid for in stock of the companies. This stock has no market value. But the consideration is not the value of the stock, but the value to the State of that magnificent country west of the Blue Ridge. These railroads when built will connect that country with the State. In trade and commercial intercourse it is cut off from North Carolina by impassable mountains and has been forced to trade with the cities of Virginia, and send to them its valuable products. This is a section with a splendid destiny. We need its fertile lands and vast forests. It is equal in beauty and natural richness to the famous southwestern Virginia section which it adjoins. As a matter of justice to the patriotic citizenship that dwells in the counties of Alleghany, Ashe and Watauga, the State should aid in securing for them railroad transportation for their development and for our mutual benefit. FREIGHT RATES At the beginning of my administration freight was hauled from the north and the northwest through the State of Worth Carolina and delivered to the cities of Virginia at a lower rate than the carriers would stop this same class of freight and deliver it to the cities of North Carolina. By this lower rate the merchants of Virginia were enabled to sell goods in the State of North Carolina cheaper than the merchants of North Carolina could sell the same class of goods at their very doors. Business was obliged to leave the State. The cities of Virginia flourished at our expense. MESSAGES TO GENERAL ASSEMBLY 49 The Federal Government had jurisdiction of this question. The injustice was indefensible. The people of North Carolina had borne it for many years. In 1913 this unjust discrimination was remedied to a large extent. Public opinion was the compelling power. It found expression through the Just Freight Eate Association, and encouragement in a General Assembly that was ready to go to the limit to compel justice and secure the rights of the people of Worth Carolina. Earnest men held meetings in various cities. The wrong was exposed, the General Assembly was called in extra session. The difficulties were great, and while com- plete equity was not obtained, the remedy was substantial. Under present con- ditions North Carolina wholesale merchants have the advantage in our territory over competitors in any other State. By this extra session of the General Assembly of 1913, a statute was passed for the reduction of intrastate freight rates. In accordance with the power conferred upon the Governor a commission was appointed to fix transportation charges within the State. The report of this commission was accepted by the people, by the carriers, and by the General Assembly. The railroads have sought before the Interstate Commerce Commission to raise some of our State schedules, but in all controversies the State has prevailed, and the rates fixed by the commission are now established. By the reduction of interstate rates and intrastate rates, our people have saved by careful estimate two million dollars a year. The spirit of progress has been relieved from unjust oppression. Commercial and industrial enterprises have been encouraged and established. A prosperity has come that could not have resulted under former conditions. There is another phase of this subject that I would impress upon this General Assembly, upon the Corporation Commission, and upon the people of the State. Freight originating in North Carolina going to the States south of us is subjected to the same tariff as the same class of freight originating in Virginia. North Carolina is entitled to a decided advantage upon all such merchandise. The haul is much shorter. Making all fair allowances, this freight originating in North Carolina going south should bear an average tariff of twenty cents less on the hundred pounds. There is no justification for fixing the same tariff upon south bound freight for the two States, when the Virginia freight must be hauled through the State of North Carolina. We are entitled to the advantage of our geographical situation, and we should not rest content until this unjust discrimination be cor- rected. Eternal vigilance is the price of liberty. In recent years the railroads have manifested a disposition and a desire to treat the people with fairness and to conduct and to regulate their business in accordance with a well conceived public sentiment. Their managers are men of patriotism and broad views. I hope for the continuation of peace and cooperation between the people and the carriers for mutual welfare in just regard to all concerned. THE FUTURE The State has done well. She is just emerging into her strength. Destiny calls. She can accomplish vastly more. Higher things demand to be done. To the energy, the faith and genius of our people the future is unfolding in sublime revelation. 50 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG "But, oh, not the hills of Habersham, And, oh, not the valleys of Hall Avail: I am fain for to water the plain. Downward the voices of Duty call — Downward, to toil and be mixed with the main, The dry fields burn, and the mills are to turn, And a myriad flowers mortally yearn, And the lordly main from beyond the plain Calls o'er the hills of Habersham, Calls through the valleys of Hall." EDUCATION But material development is not the object of man's highest endeavor. Life, not economics, is the purpose of society — the ultimate aim of civilization. All wealth and all laws and all government must have as their purpose a fuller and finer life, a better social order. In the day of our prosperity we must not forget our institutions of learning. We must not forget the places where children and men and women are educated to the higher conceptions. I do not like our boast that we are running the cheapest university, and the cheapest normal schools in the world. We need the best in the world. These institutions have done splendid and indispensable work. They must grow or we go backward. Hope must not be denied to aspiring youth. Who can estimate the worth of our University, the normal schools, the denominational colleges, the public schools! Our intellectual and moral growth must be commensurate with our material growth. We rejoice that the old log schoolhouses have disappeared, that now in every community there is a school building, the pride of that community, and equal to the college buildings of the days of our childhood. These measure the efficiency of the school. The patriotic citizens of North Carolina willingly pay taxes for the education of the young. They are not willing that our educational institutions should not develop with the increasing demands of the age. Facilities must be provided for the boys and girls in North Carolina who are eager for the strength and equipment of life. INSTITUTIONS During my administration every institution in this State and every department of the State Government has been subjected to the most thorough investigation. Everything has been uncovered. ISTo dishonesty has been anywhere found. The Board of Internal Improvements has done its work fearlessly and without favor- itism. The institutions are of the highest order. We are expending hundreds of thousands of dollars every year in taking care of the insane, the deaf and dumb, the blind and the feeble-minded. This is an obligation that no State can avoid. For if in the days of our good fortune we do not remember them, our hearts would be hardened and our land would be accursed. And when, according to the plan of the last General Assembly, we build the new school for the blind, let us not be more niggardly to them than any other State. The Jackson Training School for youthful derelicts is doing a noble work. Humane consideration for wayward boys demands its enlargement. MESSAGES TO GENERAL ASSEMBLY 51 SOLDIERS HOME We have not forgotten the soldiers of the Confederacy. We have provided for them a home, clean and comfortable, kept in a high state of efficiency. These veterans are fast disappearing. They are all disabled by age, and by the wounds and the hardships of war. Our privilege to help them is closing, for the captains and the soldiers are departing. HEALTH It is noble to provide for the sick and the afflicted, but the prevention of disease of mind and of body is the aim of the higher and wiser humanity. This is the task for modern pathology. Men and women and children suffer and die from causes that can be removed. They are deaf and dumb and are stricken with blindness and insanity, condemned to lives of darkness and hopelessness, not by the inscrutable decrees of Providence, but by the failure of society to protect them against the enemy more cruel than death. The State has no duty more imperative than the conservation and the promotion of health. Four years ago the General Assembly passed the Vital Statistics Law. It has done immense good in ascertain- ing the causes of disease and death. The work for the prevention of disease has been stimulated. The State Board of Health is waging a campaign of energy and intelligence against tuberculosis, typhoid fever and malaria, and such diseases that can be exterminated by intelligent and determined action. Many counties have em- ployed health officers. They are doing good work, but as yet the health work is by the county as a unit. The conservation of health is not a local question. The State has an interest. The State Board of Health should have general supervision of this work, and each community should have the benefit of its expert knowledge and wide experience. This board should have power to know by systematic reports the con- ditions and the work in each locality. Such correlation and publicity would in- crease efficiency and excite emulation of every health officer in the State. The State Board should be given the power to locate and reasonable means to prevent the spread of contagious diseases. Modern facilities for travel give wings to disease. Infantile paralysis, scarlet fever and other contagions may in a day be transported to distant counties for the establishment of new centers of infection, with dire calamity. The State law provides no protection against this. The Federal statute provides against interstate contagion, but there is no State statute to protect against intercounty contagion. North Carolina has the largest birth rate as to white children of any State in the Union — more babies per capita than any other country. This "Infant In- dustry" deserves and demands protection. They are the most desirable immigrants, thoroughbred from jSTorman and Saxon sires. During the last four years the State's Prison has been successful beyond pre- cedent. Above all expenses of every kind it has earned for the State the net sum of $400,000. To the Superintendent of the Prison, the Board of Directors and their subordinates credit must be given for this result. The institution has been managed with ability, honesty, economy and in humane consideration for the prisoner. This money has been made for the State by the work of the prisoners 52 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG on the State farm, on the State highways, on the railroads, and at the quarries and dams of the Yadkin River. The making of money for the State is not the principal purpose of prison management. In this flood tide of prosperity and plenty, the families of most of the prisoners were in need of food and raiment. In many instances women and children were destitute. The poor and little ones suffer in winter. To me it seemed just, and to the Prison Board it seemed just that out of the earnings of the unfortunates a small amount be sent to their scanty, needy homes to relieve some distress, and as a testimonial of justice and sympathy. This seemed especially appropriate in these days of good will and benevolence. Some may criticize this act as unauthorized, and object to it as an unsafe precedent, but if this General Assembly condemn it, every dollar of the money will be promptly returned. " 'Swear,' said the captious Roman tribune to the consul, 'swear that you have observed the laws.' 'I swear,' said the consul, 'that I have served the Republic' " And we too in this have obeyed the law of humanity and righteousness, and done the will of the people of North Carolina. I hope that this General Assembly will by statute, consistent with the economic welfare of the prison, provide for some return to the dependent, needy families of prisoners in times of prosperity like these. I do not believe in "coddling" criminals. Crime must be punished. Justice is stern. The innocent suffer for the sins of the guilty. It was so declared on Sinai. It is the inexorable decree. But the law grows "with the growing humanity of the age, and broadens with the process of the suns." At the final judgment, in divine commiseration may it be spoken of us too : "I was in prison and ye minis- tered unto me. . . . For inasmuch as ye did it unto the least of these my brethren, ye did it unto me." Out of the surplus already earned by the institution, this General Assembly in obedience to the plainest duty should allow and direct the Board of Directors to build on the Caledonia Farm a modern prison, equipped with appurtenances and appliances for the proper care, custody and training of the State's convicts. It seems to be the established policy of the State to maintain this farm as the place of penal servitude. The buildings there are not adequate, and no longer tolerable. I do not see the necessity for the continued maintenance of the Central Prison at Raleigh. The whole Institution can be centralized at Caledonia. PAEDONS During my term of office pardons and commutations have been granted to four hundred and twenty-eight persons convicted in the courts. Most of these convic- tions were for misdemeanors, and in many cases judgments were pronounced in contemplation of a conditional pardon, with the object of restraining the offender from further violations of the law. In my opinion such judgments are not in accordance with the proper administration of justice. It places upon the executive the labor and the responsibility that belongs to the courts, and the courts have the opportunity to accurately ascertain the facts. The courts might be invested with power to pronounce conditional and indeterminate sentences, but the judg- ments of the courts should be pronounced as a finality. I have granted no pardon nor commutation except upon the conclusion after most careful consideration that justice and humanity demanded it. In each case MESSAGES TO GENERAL ASSEMBLY 53 the facts have been fairly stated with the reasons. The press of the State has generally approved. The disappointment and sorrow of those whose petitions have been denied have touched me deeper than criticisms for judgments that to me seemed just and merciful. During my term seventeen men have been punished by death. I have spared human life unless the extreme penalty was justified by the evidence and demanded by the law. THE FLOODS On the sixteenth of last July a great flood wrought disaster in western North Carolina. There has been no such swell of waters since the country was settled by the white people. The flood gates of heaven were lifted and the deluge poured down. The sides of the mountains were torn loose. The valleys were flooded by raging torrents. Trees, crops, buildings, roads, railroads and the land itself were swept away. Animals could not escape, and many human beings were lost. The homes and fertile fields by the rivers were destroyed. The rich bottom lands of the Yadkin, the Catawba and tributaries were turned to desert wastes. In this overwhelming disaster the people were bewildered. They were for a time without food and shelter. When the extent of the calamity became known the people of the State nobly responded. Eagerly, generously they gave, not in the spirit of condescending charity, but in the discharge of an obligation to the unfor- tunate of their own race and kindred. Mr. Edward E. Britton was made Chairman of the State Relief Committee. More than forty-five thousand dollars have been received by him. Local com- mittees were organized in every county that had been stricken. Through the various local organizations at least fifty thousand dollars more have been con- tributed. All destitution was relieved. There has been no suffering. At present there is money in the hands of the chairman of the committee in each county that has asked for relief. Before the holidays seventeen thousand dollars were sent out. The leading men in the State offered their services without compensation, and went to carry relief and encouragement. Neighbors divided with the needy whatever they had, and throughout the State the finest spirit of sympathy was manifest in contributions by all classes of people. PRESERVATION OF FOEESTS The forests of North Carolina furnish annually a product of immense value. On the coastal plain and in the mountains, we once had a forest and a timber supply unsurpassed in any country. A vast portion of this has disappeared by unwise and wasteful cutting. The pine of the east and the hardwood of the moun- tains would readily come again on our fertile soil if properly protected. The lumbermen should be controlled by laws for the economic use of the forest. De- struction by fire should be prevented. Though the fairest part of this inheritance of ours is gone, much remains, and can be saved for this and the next generation. The sources of supply of the rivers that water the plains and turn the wheels of industry can be protected and conserved. Ruinous floods can be to a large extent prevented. MOUNT MITCHELL Under an act of the General Assembly of 1915 the State has a clear title to about six hundred acres on and around the summit of Mount Mitchell. This area 54 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG is covered with a virgin growth of luxuriant spruce or balsam. Around this sec- tion now owned by the State, the forest has been mowed down by the lumberman. The dry resinous debris is most inflammable. After the lumberman, conflagrations with terrific force have swept these mountain areas, leaving the vast slopes a blackened desolation. But for the purchase by the State, the whole of Mount Mitchell would be a barren waste. Now, as far as this majestic mountain, the highest east of the Rockies, can be seen, the dark green of its summit is discernible above the ruin. A railroad runs from the town of Black Mountain to the edge of the park established by the State. Its terminus is about three-fourths of a mile from the top. Thousands of people visit this mountain during the summer. Each year multiplies the number. The State should recognize and regulate this rail- road as a common carrier of passengers, and should confer upon the Governor the power to appoint a commission composed of patriotic, interested citizens to serve without pay, for the protection and the management of the park on the summit of Mount Mitchell. General Julian S. Carr has consented to head a committee for the building of a memorial to Dr. Elisha Mitchell upon this mountain. This insures a structure suitable to the solemnity and the majesty of the sublime height, the most famous in eastern America. FISHERIES The General Assembly of 1915 enacted a law for the regulation of the fishing industry and for the conservation of the fish of eastern North Carolina. Our waters have been and are the source of a valuable food supply. They have been wastefully exploited and the yield largely diminished. But by wise and economic management conditions will improve and the fishing industry be restored for the welfare of the whole State, and the eastern section especially. The law of 1915 has been administered by proficient men who have earnestly devoted themselves to the important work. Heretofore the subject has been dealt with as local, but now as one of State concern properly under the jurisdiction of the State. These waters are not private property. Opposition has been encoun- tered. The Fisheries Commission Board and executive officers have enforced the law firmly, but with discretion and consideration. The healthy public sentiment now approves. The people are coming to realize that this law is necessary for the protection of the fishing industry from destruction, for the ultimate good of the fishermen, and for the good of the public. We have the most valuable fishing waters on the Atlantic coast and must not allow them to be destroyed. MOBILIZATION OF THE NATIONAL GUARD During the month of June the National Guard was called to mobilize for the defense of the southern border and to meet the dangers that threatened. The soldiers of every company in the State willingly volunteered. Some went at much sacrifice, but they did not complain. At El Paso under the command of Brigadier General Laurence W. Young they have distinguished themselves for discipline and for military training and efficiency. They have reflected credit upon the State in peace, and were ready with the courage and patriotism of their fathers to carry the flag to the farthest front of battle. The love and the admiration of the folks at home have been with them and we hope for their return as soon as their pres- ence on the Bio Grande is no longer demanded. MESSAGES TO GENERAL ASSEMBLY 55 It is unfortunate that these brave men in the service of their country were in the last election deprived of the right of franchise. We need a statute to enable any citizen of this State to cast his vote when away from home by unavoidable necessity. PEACE In this State every citizen, every corporation, every legitimate enterprise, has had and should forever have the protection and the encouragement of just laws and fair and houest government. The civic purpose and effort has been to guaran- tee universal opportunity and the betterment of all the ranks of society. And now we should remember with devout gratitude that we dwell in this land of freedom, of prosperity and peace. With the Hebrew poet we can say : "How goodly are thy tents, Jacob; and thy tabernacles, O Israel!" We have been kept out of war in accordance with the highest conception of honor and duty. This Nation has stood for the law of civilization, for the free- dom of the seas, for the rights of American citizens in all lands. Every American demand has been acknowledged, and every American right has been conceded. The Schoolmaster of Princeton College has become the world teacher of a new doctrine of diplomacy. His dogmas of righteousness are more powerful than forty-two centimeter guns. He has dictated to militant kings and .emperors the principles of humanity, and has exalted the majesty of justice above all thrones. While the countries across the Atlantic are consumed by the vast conflagration of desolation ; while Europe is crushed and bleeding ; while the flower of her men have been destroyed, and are halt and maimed and blind and maniac by the savage weapons of this war; while all her women and children are in mourning; while lurid, ghastly and relentless war still strikes and strikes with unabated fury, and reaps his boundless harvest of death and destruction; we have been spared. And we have been spared through the wisdom, the patience, the steadfast courage of this great servant of God, for the realization of the larger destiny of this republic, in the final exaltation of peace and righteousness in all of the earth. For when exhausted Europe shall throw down the weapons of torture and murder, when peoples that drink the cup of trembling in the horror of great darkness shall behold the radiance of the coming day, Woodrow Wilson will stand forth as the prophet and the arbiter of peace for the world, to point the nations to the higher way of truth, to turn the hearts of the disobedient to the wisdom of the just. Locke Craig, January 4, 1917. Governor of North Carolina. (II) REDUCTION OF FREIGHT RATES REDUCTION OF FREIGHT RATES 1. Joint Resolution declaring the views of the General Assembly of North Caro- lina with reference to interstate passenger and freight rates and charges, and for other purposes. January 30, 1913. 2. Message to the General Assembly in which appointment is made of Commis- sion to investigate and report to General Assembly in accordance with the Joint Resolution in regard to interstate transportation charges by common carriers. February If, 1913. 3. Letter to presidents of the various railroads inviting them to a conference in the Governor's office, February 12, 1913. 4. Report of the Corporation Commission to the Governor and Council of State of negotiations for adjustment of interstate freight rates. August 5, 1913. 5. Message to the General Assembly, Extra Session, transmitting report of Cor- poration Commission of negotiations for adjustment of interstate freight rates. September, 1913. 6. Proposition of common carriers. September 19, 1913. 1. Letter to Fred N. Tate, chairman Just Freight Rate Association, transmitting proposition of common carriers. September 19, 1913. 8. Letter to Freight Rate Commission transmitting proposition of common carriers. September 19, 1913. 9. "Rate Adjustment" — letter from Freight Traffic Manager, Southern Railway, to Chairman Corporation Commission. September 20, 1913. 10. Proclamation by the Governor. Appointing Special Freight Rate Commis- sion. November 18, 1913. 11. Proclamation by the Governor. Postponing operation of Act of Special Session 1913 in regard to freight rates, pending investigation of Special Freight Rate Commission. January 23, 1913. 12. Proclamation by the Governor. Postponing operation of Act of Special Session 1913 in regard to freight rates, pending investigation of Special Freight Rate Commission. March 20, 1911/.- 13. Proclamation by the Governor. Postponing operation of Act of Special Session 1913 in regard to freight rates, pending investigation of Special Freight Rate Commission. May 19, 19 H. 14. Proclamation by the Governor. Postponing operation of Act of Special Ses- sion of 1913 in regard to freight rates, pending investigation of Special Freight Rate Commission. July 15, 191k- 60 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG 15. Proclamation by the Governor. Postponing operation of Act of Special Ses- sion 1913 in regard to freight rates, pending investigation of Special Freight Rate Commission. August 10, 191k- 16. Report of Special Freight Rate Commission transmitted to Corporation Com- mission. August IS, 191k- 17. Report of Special Rate Commission. August 13, 191k- 18. Proclamation by the Governor, declaring freight rate schedule. August 13, 191k- 19. Certificate Special Freight Rate Commission in regard to lumber schedule. September 11, 191k- 20. Letter of A. A. Thompson to Assistant Attorney-General, attached to certifi- cate of Special Freight Rate Commission. September 21, 191k- 21. Southern Railway Company by Alfred P. Thorn, transmitting paper signed by common carriers relating to rates in effect according to Proclamation by the Governor. October 6, 191k- 22. Statement of the Governor to the press. January 1, 1916. 23. Statement of the Governor to the press. January 1, 1916. 24. Letter and statement of President Fairfax Harrison of the Southern Railway, January k, 1916. Letter from the Governor in reply thereto. 25. Statement to the press. January 10, 1916. 26. Letter of President Fairfax Harrison of the Southern Railway. January 11, 1916. (1) JOINT RESOLUTION DECLARING THE VIEWS OF THE GENERAL ASSEMBLY OF NORTH CAROLINA WITH REFERENCE TO INTER- STATE PASSENGER AND FREIGHT RATES AND CHARGES, AND FOR OTHER PURPOSES. JANUARY 30, 1913 Resolution 13. H. R. 13. S. R. 166. A Joint Resolution Declaring the Views of the General Assembly of Worth Carolina with Reference to Interstate Passenger and Freight Rates and Charges, and for Other Purposes. Resolved by the House of Representatives, the Senate concurring: First. That in view of the General Assembly of North Carolina, Congress should declare illegal, under any and all circumstances, any greater charge by any public-service company for transporting passengers, or freights of a given kind and quantity, a shorter distance than is charged for transporting the same a longer distance in the same direction when the shorter haul is included in the longer. Second. That the Senators and Representatives in Congress from this State be and they are hereby requested and respectfully urged to support a bill repeal- ing the first and second provisos to section 4 of the Interstate Commerce Act, and to support such other amendments as may be necessary to make effective the policy declared for in the first resolution above. Third. That pending the enactment into law by Congress of the principles above declared for, it should, in the opinion of the General Assembly of North Carolina, be the policy of the State to press before the Interstate Commerce Com- mission objections to the injustice of allowing any discrimination against North Carolina points in favor of other points outside of the State to which hauls are longer than to North Carolina points, and which longer hauls include the hauls to such North Carolina points. Fourth. That in addition to the powers conferred on the North Carolina Cor- poration Commission to institute and prosecute cases before the Interstate Com- merce Commission for relief to the people of North Carolina from discriminatory and excessive charges by common carriers, power is conferred upon the Governor to institute and prosecute such cases, either independent of or in conjunction with the North Carolina Corporation Commission in his name on behalf of the people of the State, or in the name of any combined association or body of citizens, or in the name of the North Carolina Corporation Commission ; and for such pur- pose the sum of not exceeding $5,000 a year is appropriated out of any money in the State Treasury not otherwise appropriated, to be paid on the order of the Governor. Fifth. That the Secretary of State shall transmit to each of the United States Senators and Members of Congress from this State a copy of these resolutions. 62 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG That this resolution shall be in force from and after its ratification. In the General Assembly read three times, and ratified this 30th day of January, 1913. (Signed) E. L. Daughtridge, President of the Senate. (Signed) George W. Connor, Speaker of the House of Representatives. Examined and found correct. (Signed) E. E. Austin, For Committee. (2) MESSAGE TO THE GENERAL ASSEMBLY IN WHICH APPOINTMENT IS MADE OF COMMISSION TO INVESTIGATE AND REPORT TO GEN- ERAL ASSEMBLY IN ACCORDANCE WITH THE JOINT RESOLU- TION IN REGARD TO INTERSTATE TRANSPORTATION CHARGES BY COMMON CARRIERS. FEBRUARY 4, 1913 State of North Carolina Executive Department Raleigh To the General Assembly of the State of North Carolina: In accordance with the Joint Resolution of the General Assembly entitled "Joint Resolution in Regard to Interstate Transportation Charges by Common Carriers," ratified on the 3d day of February, 1913, which said resolution pro- vides: "That the Governor of the State be . . . empowered and requested to appoint a commission composed of three members, whose duty it shall be to take up with the common carriers by railroad, doing interstate business in this State of transporting freight and passengers, or with such of said common carriers as may seem to said commission to be wise, the question and manner of said rail- roads conforming to the declared policy of this State, and report in full during the present session of the General Assembly the result of such conference, and the prospect and methods of securing conformity by said common carriers to the State's declared policy:" I, therefore, in accordance with the power conferred upon me by said resolu- tion, do hereby appoint as the three members of the said commission: E. J. Justice, of the county of Guilford, W. B. Councill, of the county of Catawba, N. B. Broughton, of the county of Wake, to carry out the purposes of the said resolution ; and I do further hereby signify my readiness to sit with the said commission in accordance with the invitation in said resolution. Respectfully, Locke Craig, Governor. REDUCTION OF FREIGHT RATES 63 (3) LETTER TO PRESIDENTS OF THE VARIOUS RAILROADS, INVITING THEM TO A CONFERENCE IN THE GOVERNOR'S OFFICE FEBRUARY 12, 1913 State of North Carolina Executive Department Raleigh February 5, 1913. Mr. W. W. Finlet, President, Southern Railway System, Washington, D. C: Dear Sir : — I enclose a copy of a resolution which was duly passed by the General Assembly of North Carolina, and ratified on the 3d day of February, 1913. You will see that the resolution provides, among other things, for the appointment of a committee to confer with said common carriers as to the State's declared policy in regard to freight rates now affecting the people of North Caro- lina. In accordance with the power conferred by the said resolution, the Governor of North Carolina has appointed E. J. Justice, "W. B. Councill, and N. B. Broughton a committee to carry out the purpose of said resolution, and the Governor and this committee do now most respectfully invite you to the confer- ence provided for in the resolution, to be held in the office of the Governor of North Carolina, in the city of Raleigh, on Wednesday, the 12th day of February, 1913, at 12 o'clock m. Very truly yours, Locke Craig, Governor. Copy to: N. S. Meldrum, President, Seaboard Air Line System, Portsmouth, Va. W. W. Finley, President, Southern Railway System, Washington, D. C. L. E. Johnson, President, Norfolk and Western Railway Co., Roanoke, Va. E. T. Lamb, President, Norfolk Southern Railway, Norfolk, Va. Milton H. Smith, President, Louisville and Nashville R. R. Co., Louisville, Ky. A. B. Andrews, President, Danville and Western Railway, Raleigh, N. C. W. A. Barber, President, Carolina and Northwestern Railway, New York City. M. W. Potter, President, Carolina, Clinchfield and Ohio Railway of S. C, New York City. T. M. Emerson, President, Atlantic Coast Line, Wilmington, N. C. 64 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (4) REPORT OF THE CORPORATION COMMISSION TO THE GOVERNOR AND COUNCIL OF STATE OF NEGOTIATIONS FOR ADJUSTMENT OF INTERSTATE FREIGHT RATES. AUGUST 5, 1913 To His Excellency, Locke Craig, Governor of North Carolina, and the Council of State: We respectfully report to you the result of our conference with the interstate carriers, July 22-25, with respect to interstate freight rates; and this being our first formal report on the subject, we deem it well to briefly review the negotiations which led up to that conference. Shortly after the conference between the Legislative Commission and the carriers had been declared off by the Legislative Commission, on account of a suggestion made at the last of those conferences by the Chairman of the Corpora- tion Commission that an adjustment might be reached if the representatives of the State and the carriers would sit down together and talk over the differences informally and in detail, instead of attempting to deal at arms' length, some of the railroad officials requested the Corporation Commission to meet with them in that manner, expressing the belief that an agreement could be reached that would be acceptable as a settlement of the suits which the Corporation Commission had brought against them before the Interstate Commerce Commission to reduce these rates, and an adjustment of the whole matter. The Corporation Commission at once advised with his Excellency, the Gover- nor, about the matter, desiring not only to settle the matters involved in the suits it had brought, but to cooperate cordially with him in carrying out what he had announced as a policy of his administration. We accordingly at once arranged a meeting with the carriers, but notified them in the beginning that whatever agreement might be reached between them and the Commission would be tentative only, and would not be final or binding either as a compromise of our suits, or otherwise, until it was reported to the Governor and approved by him, after consultation with such officials and per- sons as he might think proper to call into conference with him. We assured tbe carriers of our willingness to undergo any amount of labor to work out a just solution of this important matter, and in conference after confer- ence we have contended with them, giving careful consideration to their views, and earnestly pressing upon them our views and the rights of the shippers of Worth Carolina. Progress was made slowly, the carriers making some concessions at each con- ference, having begun with the offer to the Legislative Commission as a basis. Finally the Commission told them that unless they could make up their minds to offer much more substantial reductions, negotiations would be abandoned as hopeless. This led to a request from the presidents of the railway lines for a conference with the Governor and the Corporation Commission, which was granted. This conference was held in Raleigh July 15th, the Council of State joining in the same upon the request of the Governor. REDUCTION OF FREIGHT RATES 65 At this meeting the Corporation Commission, upon request of President Finley, speaking for the carriers, to suggest some general basis for fixing interstate rates, made the following suggestion : That through rates into North Carolina be constructed by the use of propor- tional rates south of the Virginia gateways, and that the proportionals be fixed by applying the Southern Eailway Virginia main line mileage scale (which was used by the Legislative Commission in making its proposition) to the average distances from the Virginia gateways to the respective rate zones as they now exist, subject to the condition that the reductions resulting to points in North Carolina Eate Zone ISTo. 1 (called the 61-cent zone) shall be the maximum reduc- tion for other zones ; except that the reduced rate so made to Statesville should be the maximum on western traffic for all points on the Southern Railway main line west of Statesville, and that the reduction to no point in the State should be less than the reductions made to points in Zone No. 2 (the Charlotte zone). And further, that upon such important commodities as already had car-load ratings up to the Virginia cities, car-load ratings be made south of the Virginia cities, to be differentials below the reduced class rates. The Commission stated, however, that in making this suggestion they did not wish to be understood as believing that it would result in as much reduction in the rates as the State was justly entitled to, but was in the nature of a concession made in a spirit of compromise. The railway presidents then expressed strong belief that a settlement could be reached on this basis, and asked for another meeting between the traffic man- agers and the Corporation Commission. This course being approved by the Governor and Council of State, the Commission met the traffic managers at Old Point on July 22d, and were in session four days. We submit to you below the result of that meeting: The Commission first took up the adjustment ot Western rates, and commenced with this by attempting to agree upon the rates to the points in what was termed Zone No. 1, this being the largest and most representative rate zone in the State. The existing rates to most other parts of the State are made with relation to these. It was, therefore, thought that rates being once fixed to this zone, the rates to all other parts of the State could easily be adjusted to conform relatively to them. GREENSBORO— ZONE No. 1 This zone embraces all points on the main line of the Southern Railway from Winston- Salem to Goldsboro, inclusive, and from points on the Southern Railway from Greensboro to Ellisboro, inclusive. All points on the Seaboard Air Line Railway from Littleton to Cary, inclusive, and from Henderson to Durham, including Oxford; also its branch line to Louisburg. All points on the Atlantic Coast Line Railroad from Ruggles to Goldsboro, inclusive, and from Contentnea to Smithfield, inclusive; on its branch line from Halifax to Kinston, inclusive, and on its branch line from Rocky Mount to Spring Hope, inclusive. Also from Rocky Mount to Hobgood, inclusive, except Tarboro. On the Williamston branch from Mildred to Everetts, inclusive. On the Washington branch from Parmele to Grimes, inclusive. Points on the East Carolina Railway between Henrietta and Farmville, in- clusive. Points on the Norfolk Southern Railroad from Grimesland to Raleigh, inclusive. All points on the Norfolk Southern Railroad, Goldsboro to New Bern, and points between New Bern and Washington, exclusive of New Bern and Washington. 5 66 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG The average distance from the Virginia cities to all points in this zone is 189 miles, and the existing rates from all Virginia cities are the same to all points in this zone, and are as follows: Grain. Flour. Potatoes, 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 61 51 42 32 28 21 17 22 21 18 28 32 42 18 21 21 Upon the basis suggested by the Commission (as slightly modified) the proportional rates from all the Virginia cities to all points in this zone, to be used in making through rates, would be as follows: Grain. Flour. Potatoes. 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 43 33 24 21 16 15 17 16 14 19 23 32 12 14 14 50 This would make proportional rates lower than the local rates from Virginia cities and reduce total through rates to the following extent: Grain. Flour. Potatoes. 5 6 A B C D E H F C.L. C.L. C.L. 7 5 2 5 5 4 9 9 10 6 7 7 After prolonged negotiations and several different offers, which were declined by the Commission, the carriers offered as their final figures, beyond which they expressed themselves as unwilling to go, proportionals lower than existing local rates from Vir- ginia cities to the following extent: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 11 8 8 6 6 4 2 3 4 4 5 5 8 5 6 6 This would result in total through rates higher than those suggested by the Commis- sion to the following extent: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 1 2 1 1 2 1 4 4 2 1 1 1 The final offer of the carriers would result in total through rates from Cincinnati, Ohio, and Louisville, Ky., to all points in this zone, compared with existing total through rates, as follows: Grain Flour. Pts. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. Present 93 79 64 47 40 31 27 37 32 29 42 44 64 29 32 31 27 31 Proposed 82 71 56 41 34 27 25 34 28 25 37 39 56 24 26 25 25 29 Reductions 11 886642344558 5 6 6 2 2 All rates from the West to North Carolina territory are based upon the rates from Ohio River Crossings, the principal ones of which as affecting our territory are Cincin- nati, Ohio, and Louisville, Ky. It, therefore, follows that when the rates are fixed from Cincinnati and Louisville this automatically fixes the rates from all western territory beyond these points. It was clearly understood between the Commission and the carriers that the present method of constructing rates from western territory beyond Cincinnati and Louisville should be continued, and that rates from Memphis, St. Louis, and Nash- ville be revised so as to preserve present relationship. It will be noted that the reductions proposed are relatively greater on the lower classes than on first and second class. The following table will show the reductions which the proportionals suggested by the Commission would make under the local rates from Virginia cities, both in cents per one hundred pounds and in percentages: REDUCTION OF FREIGHT RATES 67 Grain. Flour. Pts. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. Present 61 51 42 32 28 21 17 22 21 18 28 32 42 18 21 21 Proposed 50 43 33 24 19 16 15 17 16 14 19 23 32 12 14 15 Reduction 11 89895255499 10 6 7 6 Percentages: 18 16 21 25 32 23 11 22 23 22 32 28 23 335 33} 28 Average Percentage: 24.00. The following table will show the reductions made by the proportionals offered by the carriers under the local rates from Virginia cities, both in cents per one hundred pounds and in percentages: Grain. Flour. Pts. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. Present 61 51 42 32 28 21 17 22 21 18 28 32 42 18 21 21 17 21 Proposed 50 43 34 26 22 17 15 19 17 14 23 27 34 13 15 15 15 19 Reduction 11 886642344558 5 6 6 2 2 Percentages: 18 16 19 19 21 19 12 14 19 22 18 16 19 2S 29 28 Average percentage: 19.80. The fact that the greater reductions offered are in the lower classes is to the advan- tage of the State, because of the fact that nearly all of the traffic from the "West is moved under the lower classes, and very little of it is moved under the higher classes. To illus- trate the practical effect of the proposed reductions, we mention some of the principal commodities which are moved in large quantities from the West, the class under which they move, and what the proposed reductions would amount to per car-load: Hay moves less than car-load under fifth class, and the reduction being 6 cents per hundred pounds, would amount to $1.20 per ton. In car-loads it moves at grain rate, the minimum weight being 24,000 pounds; the reduction of 5 cents per hundred pounds would save on a car-load $12. Grain and grain products, other than flour, move under Class D, less than car-loads, on which there is a reduction of 4 cents per hundred pounds, or 22.20 per cent lower than the existing local rate. The special car-load rate proposed is a reduction of 5 cents per hundred pounds from existing local from Virginia cities, which is 28 per cent. On a car- load, the minimum weight being 40,000 pounds, would save $20 per car. Flour, in sacks, less than car-load, moves under Class C, on which there is a reduction of 4 cents per hundred pounds, or 19 per cent, and in barrels less than car-load it moves under Class F, the existing rate being 42 cents per barrel. The proposed reduction is 8 cents per barrel, or 19 per cent. Car-loads it moves under the special proposed car-load rating, which is a reduction of 6 cents per hundred pounds, which is 28.60 per cent. On a car-load, minimum weight 40,000 pounds, would save $24 per car. Canned goods of the following description, namely, fruit and vegetables, including beans with pork, corn, tomatoes, peas, etc., in car-loads move under fifth class. The reduction on this is 6 cents per hundred pounds from the existing local rate of 28 cents per hundred pounds, being 21.40 per cent. On a car-load of 36,000 pounds minimum would save $21.60 per car. Fresh meats of all kinds move under fourth class. The reduction proposed of 6 cents per hundred pounds from the existing local rate of 32 cents per hundred pounds, being 19 per cent, would save on a car-load, minimum weight 20,000 pounds, $12 per car. Agricultural implements: This class covers the general run of agricultural implements and machinery, such as disc harrows, manure spreaders, mowers, mowing and reaping machines, planters, plows, plow bases, plow handles, single-trees, binders, pruners, rakes, scythes, etc. These move in car-load lots under sixth class, upon which there is a pro- posed reduction of 4 cents per hundred pounds from the existing local of 21 cents, being 19 per cent. This reduction on a car-load, minimum weight 20,000 pounds, would save $8 per car. Most of the agricultural implements in less than car-load quantities move 68 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG either under third or fourth class, the reduction on third class heing 8 cents per hundred pounds and on fourth class 6 cents per hundred pounds, amounting in each instance to about 19 per cent. Wire fencing in less than car-load lots moves under fifth class, on which there is a proposed reduction of 6 cents per hundred pounds from the existing local of 28 cents, being 21.40 per cent. In car-loads it moves under sixth class, on which there is a pro- posed reduction of 4 cents per hundred pounds from the existing local of 21 cents. This would result in a reduction on a car-load, minimum weight 30,000 pounds, of $12. The comparison below will show the effect of the proposed reductions upon the North Carolina merchant and jobber in his competition with merchants and jobbers of the Vir- ginia cities in North Carolina territory. The rates from Cincinnati and Louisville to North Carolina territory are made by the use of proportional rates from Cincinnati and Louisville to the Virginia cities, then there is added to this proportional the rate from Virginia cities to the North Carolina points. These proportionals are as shown in the first line of the table below, and by adding to them the proposed proportionals south of Virginia cities, shown in the second line of this table, we get the total rates which the North Carolina shipper must pay on goods from Cincinnati and Louisville to points in Zone No. 1: Grain. Flour. Pts. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. Present 32 28 22 15 12 10 10 15 11 11 14 12 22 11 11 10 10 Proposed 50 43 34 26 22 17 15 19 17 14 23 27 34 13 15 15 16 Reduction 82 71 56 41 34 27 25 34 28 25 37 39 56 24 26 25 26 The Virginia cities merchants and jobbers on goods shipped from Cincinnati and Louis- ville to the Virginia cities to be distributed to North Carolina must pay a higher rate up to the Virginia cities than is charged on shipments through to North Carolina, and in addition to that would have to pay the full local rate from the Virginia cities to the North Carolina points. The following table shows, in the first line, the rates from Cin- cinnati and Louisville to the Virginia cities proper, which the Virginia cities merchant must pay, and in the second line the local which he must pay to the North Carolina points in Zone No. 1, and the third line the total cost to the Virginia merchant to reach North Carolina points when distributing from the Virginia cities proper: 12 3 4 5 6 62 53J 405 275 23 181 61 51 42 32 28 21 123 1045 S25 595 51 395 The difference, therefore, in favor of the North Carolina shipper is as shown in the table below: 1 2 3 4 5 6 123 1045 825 595 51 395 82 71 56 41 34 27 41 331 265 18J 17 125 It will be seen that the difference in favor of the North Carolina shipper is such that he can ship back to territory around him under the North Carolina scale to distances ranging from 40 to 60 miles before meeting the rates which the Virginia cities man has to pay. This advantage to the North Carolina merchant applies to this extent only in respect to shipments originating at Cincinnati and Louisville and other Ohio River Crossings. The difference is not so great in his favor on shipments from points beyond Cincinnati and Louisville, for the reason that on such shipments the proportional rate in our favor as against the Virginia cities of 30 cents less than the rate to Virginia cities proper is REDUCTION OF FREIGHT RATES 69 reduced to a differential in our favor of only 5 cents per one hundred pounds at Chicago. For instance, on shipments from Chicago territory the rates to Virginia cities, together with the local thence to North Carolina points, are as follows: 1 2 3 4 5 6 72 62 47 32 27 22 61 51 42 32 28 21 133 113 89 64 55 43 On shipments to North Carolina points using the proposed proportionals south of Virginia cities would cost the North Carolina merchant as follows: 1 2 3 4 5 6 67 58 44 30 25 20 50 43 34 26 22 17 117 101 78 56 47 37 Resulting in total differences in favor of the North Carolina shipper on shipments from Chicago territory as follows: 1 2 3 4 5 6 16 12 11 8 8 6 Note. — These comparisons are made only upon the six numbered classes, for the reason that shipments from Chicago to Virginia cities are covered by official classifica- tion, which carries only the six numbered classes. CHARLOTTE— ZONE No. 2 This zone includes all territory on the Southern Railway main line from Lexington to Charlotte, including all points between Salisbury and Statesville, all points on the Mooresville branch between Winston-Salem and Charlotte, exclusive of Winston-Salem. On its branch line from High Point to Asheboro, not including High Point; all points on the Greensboro-Sanford branch; all points Climax to Ramseur, and Salisbury to Norwood. All points on the Winston-Salem Southbound between Winston-Salem and Wadesboro, not including Winston-Salem. All points on the Seaboard Air Line from Apex to Charlotte via Hamlet and Monroe, inclusive; its branch line from Moncure to Pittsboro. All points on the Randolph and Cumberland from Cameron to Carthage. All points on the Atlantic Coast Line from Goldsboro to Wrightsboro, not including Golds- boro; on its branch line Warsaw to Clinton; on its main line from Four Oaks to Fayette- ville, inclusive; on its line from Fayetteville to Sanford. All points on the Raleigh, Charlotte and Southern from Asheboro to Aberdeen, including Mount Gilead branch and its line from Colon to Star. The average distance to all points in this zone is 235 miles. The Commission suggested that through rates to this zone be constructed by the use of proportionals from the Virginia cities, which should be less than the existing local rates to the following extent: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 11 8 9 8 7 5 2 5 5 4 9 9 10 6 7 6 The carriers' final proposition was to make the proportionals from the Virginia cities to this zone less than existing local rates to the following extent: l 11 Grain. Flour. Potatoes. 5 6 A B C D E H F C.L. C.L. C.L. 6 4 2 3 4 4 5 5 8 5 6 6 The final proposition of the carriers would result in through rates from Cincinnati and Louisville, to all points in this zone, compared with existing rates, as follows: 70 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Grain. Flour. Pts. 1 23456ABCDEHF C.L. C.L. C.L. Present... 100 86 70 53 45 35 28 39 34 31 47 50 68 31 34 35 Proposed 89 78 62 47 39 31 26 36 30 27 42 45 60 26 28 29 Reduction 11 886642344558 5 6 6 This would make the proportionals from the Virginia cities and the total through rates to this zone higher than suggested by the Commission to the following extent: Grain. Flour. Potatoes. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. 0012110210442 1 1 HOPE MILLS— ZONE No. 3 This zone is composed of all points on the Seaboard Air Line between Wilmington and Hamlet, not including Wilmington and Hamlet; all points on the Atlantic Coast Line between Wilmington and Fayetteville, exclusive of Wilmington and Fayetteville; all points on the Atlantic Coast Line between Hope Mills and Pembroke, inclusive, and from Parkton to Maxton; all points on the Virginia and Carolina Southern north of Lumberton, and all points on the Aberdeen and Rockfish Railroad. The Commission deeming the existing rates to this zone as relatively higher than the existing rates to the two preceding zones, asked for greater reductions to all points in it than had been suggested to Zones 1 and 2, in order to put the same in proper relation with them. The carriers, however, were very firmly opposed to granting any greater reductions to this territory than the same reductions in each class as should be given to Zone No. 2. The existing rates to this zone from the Virginia cities are as follows: Grain. Flour. Potatoes. 123456ABCDEHF C.L. C.L. C.L. 80 70 60 50 40 32 22 28 25 22 41 47 50 22 25 32 The final proportional rates proposed by the carriers from the Virginia cities to this zone were: _ . Grain. Flour. Potatoes. 123456ABCDEHF C.L. C.L. C.L. 69 62 52 44 34 2S 20 25 21 18 36 42 42 17 19 26 Resulting in the following reductions: 1 2 3 4 5 6 A B 11 886642344558 5 6 6 Grain. Flour. Potatoes. 12345 6ABCDEHF C.L. C.L. C.L. The present rates to this zone from Cincinnati and Louisville are as shown below, and those which would result from the proportionals offered by the carriers: Grain. Flour. Pts. 1 2345 6ABCDEHF C.L. C.L. C.L. Present 112 9S S2 65 52 42 32 43 36 33 55 59 72 33 35 42 Proposed 101 90 74 59 46 38 30 40 32 29 50 54 64 28 30 36 Reduction 11 886642344558 5 5 6 GIBSON— ZONE No. 4 This zone embraces all points on the Atlantic Coast Line from Wilmington to Pair Bluff, exclusive of Wilmington, and all other points between the Seaboard Air Line from Wilmington to Monroe and the South Carolina line. The carriers' final proposition was reductions to points in this zone as follows: 12 3 4 5 5 5 5 5 2 Grain. Flour. Potatoes. A B C D E H F C.L. C.L. C.L. 1 1 2 2 2 2 4 3 4 3 REDUCTION OF FREIGHT RATES 71 GASTONIA AND POINTS SOUTH OP CHARLOTTE The carriers' final proposition offered the following reductions: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. s 5 5 5 3 I 1 1 4 4 2 6 2 5 6 3 The use of the proportionals made by these reductions would make through rates from Cincinnati and Louisville, compared with existing rates, as follows: Grain. Flour. Pts. 1 2345 6ABCDEHF C.L. C.L. C.L. Present 112 98 82 65 52 42 32 43 36 33 55 59 72 33 36 42 Proposed 107 93 77 60 50 41 31 42 34 31 53 57 68 30 32 39 Reduction 5555211122224 3 4 3 Existing rates to Gastonia are higher than Gibson 1 cent in fifth class and 2 cents each in Classes C and D, and reductions were made so as to make the proposed new rates the same. The carriers declined to make greater reductions in these zones, because it would make such abrupt differences between points in it and points just across the line in South Carolina. WEST OF STATESVILLE The Commission suggested that on western traffic the new rates to Statesville be the maxima for all main line points west of Statesville, for the reason that these points all being nearer to Cincinnati and Louisville, on the same line of railroad, than States- ville, ought not to pay any higher rate. The Commission also intended this to apply to Lincolnton, Shelby, and Rutherford- ton, and all intermediate points. If this suggestion had been followed it would have resulted in very large reductions, greater than in any other part of the State, as the present rates to this territory are relatively very high. For example, the reduction to Marion, which is the highest rate point, under the proposal of the Commission would have been: Grain. Flour. Potatoes, 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 26 24 23 20 15 14 6 9 9 4 16 19 12 5 11 16 The carriers declined to grant these reductions, and offered specific through rates to these points,- together with a list of commodity rates. HICKORY AND LINCOLNTON The reductions proposed by the carriers to these points are: Grain. Flour. Potatoes. 12345 6ABCDEHF C.L. C.L. C.L. 11 555311241464 2 6 3 These would result in the following total rates from Cincinnati and Louisville: Grain. Flour. Potatoes. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. 101 93 77 60 50 41 31 42 34 31 53 57 68 30 32 39 MARION GROUP The carriers' final offer proposed to fix through rates from Cincinnati and Louisville to Marion, which should be the maxima to all points between Marion and Asheville, and 72 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG which should also apply to Shelby, Rutherfordton, Morganton, Hendersonville, and Waynesville, and be a maxima to points intermediate. The through rates so proposed by them are: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B c D E H F C.L. C.L. C.L. 106 93 78 63 52 41 31 42 34 31 S3 57 63 30 32 39 Compared to existing rates to Marion, they make the following reductions: Grain. Flour. Pts. 1 23456ABCDEHF C.L. C.L. C.L. Present 116 102 86 67 55 47 32 47 39 31 5S 64 72 31 39 47 Proposed. 105 93 78 63 52 41 31 42 34 31 53 57 68 30 32 39 Reduction 11 984361550574 1 7 8 SHELBY AND RUTHERFORDTON Application of the proposed Marion rates to these points would make the following reductions, and apply to all intermediate points: Grain. Flour. Pts. 12 34 5 6ABCDEHF C.L. C.L. C.L. Present 116 102 86 66 55 44 34 47 39 36 59 65 77 36 39 44 Proposed 105 93 78 63 52 41 31 42 34 31 53 57 68 30 32 39 Reduction 11 983353555689 6 7 5 MORGANTON Observance of the proposed Marion rates to Morganton, which would apply to inter- mediate points, would result as follows: Flour. Pts. 12 3456ABCDEH Present 116 102 86 67 55 47 33 47 39 31 59 65 Proposed 105 93 78 63 52 41 31 42 34 31 53 57 F C.L. C.L. C.L, 73 31 39 47 68 30 32 39 Reduction 11 984362550685 1 7 8 WAYNESVILLE AND HENDERSONVILLE Observance of the Marion rates as maxima to these points would result as follows: Grain. Flour. Pts. 12 3456ABCDEHF C.L. C.L. C.L. Present 116 102 88 72 59 49 32 47 39 30 56 63 71 30 39 49 Proposed 105 93 78 63 52 41 31 42 34 28 53 57 68 26 31 39 Reduction 11 9 10 9781552363 4 8 10 The Commission requested the carriers to offer to points just mentioned, viz., Hick- ory, Lincolnton, Shelby, Rutherfordton, Morganton, Marion, Newton, and intermediate points, the following rates, which they declined to do: Grain. Flour. 1 23456ABCDF C.L. C.L. 103 89 75 60 50 38 30 40 32 30 63 27 28 The final rates offered by the carriers are higher than these to the following extent: 243323122103 4 Grain. Flour. Potatoes. 5 6 A B C D E H F C.L. C.L. C.L. 7 5 2 5 5 4 9 9 10 6 7 5 REDUCTION OF FREIGHT RATES 73 ASHEVILLE The basis suggested by the Commission would have made the reduction in the Ashe- ville rates the same as proposed to Statesville, viz.: l 2 3 10 8 9 : But the carriers would only consent to lower the rates to the extent shown in the following table: Grain. Flour. Pts. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. Present... 99 88 77 65 55 46 28 43 36 27 52 58 63 27 52 46 Proposed 94 84 75 62 52 41 26 36 30 25 47 53 58 24 44 39 Reduction 5423352762555 3 8 7 To compensate in some degree for the refusal to grant the reduction asked, they offered a quite advantageous list of commodity rates, lower than the class rates, which is attached to the report of the carriers, which accompanies our report. The reason assigned by the carriers for not granting greater reductions to Asheville were that the rates proposed are lower than the rates from Cincinnati to Atlanta, Ashe- ville being 439 miles and Atlanta 487 miles from Cincinnati; and also that further reduc- tions would compel great reductions in rates on the Southern lines into Tennessee and South Carolina. We find that some of the proposed class and commodity rates are above and some below Atlanta rates, the difference not being great. The comparison of class rates being as follows: 123 45 6ABCDEHF Atlanta 98 87 78 63 52 41 28 36 28 24 48 48 48 Proposed Asheville 94 84 75 62 52 41 26 36 30 25 47 53 68 WILMINGTON AND OTHER POINTS The Commission urged reductions to Wilmington and other water competitive points on the coast of North Carolina — not to the same extent, but with some relation to the reductions to inland points, in order to measurably preserve present relations; but the carriers declined to make any reductions to these points. Wilmington rates from Cincinnati and Louisville, on account of water competition, are lower than to other parts of the State, and are as follows: 1 2 3 4 5 6 A B C D E H F 82 68 53 41 32 25 19 27 23 21 36 32 46 With car-load rate on grain and flour of 20 cents. The following rates were suggested: 4203211231402 With the understanding that relative reductions also be made to the other water points, viz.: Morehead City, Beaufort, New Bern, Washington, Plymouth, Edenton, and Elizabeth City. These points now have rates from Virginia cities, beginning with first class: More- head City and Beaufort, 53 cents; New Bern, 46 cents; Washington, 45 cents; Plymouth, 45 cents; Edenton, 38 cents; Elizabeth City, 30 cents; the last two being from Norfolk only. 74 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG POINTS BETWEEN ZONE No. 1 AND VIRGINIA LINE Much controversy was had over rates from points between Zone No. 1 and the Vir- ginia line, they never having been treated on the same zone basis. These include points on Southern Railway between Greensboro and the State line, including Reidsville; points on the Atlantic Coast Line and Seaboard Air Line Rail- ways from Weldon to State line, inclusive; points on Seaboard Air Line Railway from Boykin, Va., to Lewiston; points on the Atlantic Coast Line Railroad from Hobgood to Virginia State line, and points on the Norfolk Southern from Washington to Virginia State line; and on the Norfolk and Western between Winston-Salem and the Virginia State line, and Durham and the Virginia line. This territory generally has rates beginning at 55 cents first class to points nearest to Zone No. 1 (which has a 61 cents rate) and scaling down slightly to points near the Virginia line. The Commission contended that the rates in all this territory be so reduced that they would be the same percentage of the proposed new rates that they are of existing rates, which would put the 55 cents points down to 45 cents and proportionately reduce the others. The carriers were firm in their refusal to do this, and would only agree to so reduce them that the rates to no point in this territory should be higher than rates to Zone No. 1, which has the effect of putting rates to 55 cents points, such as Weldon and Lewis- ton, and 52 cents points, such as Reidsville and Rich Square, on 50 cents basis, the same as proposed to Zone No. 1, resulting in relatively much smaller reductions to this terri- tory than to other parts of the State. The view of the Commission was that these points, on account of their closer prox- imity to the Virginia cities, were entitled to have lower rates from them than Zone No. 1, as they have always had. NORTHERN AND EASTERN RATES The Commission suggested adjustment of these rates by use of proportionals south of Virginia cities in the same manner as was proposed as to western rates. The carriers, however, would not seriously entertain this, for the reason, as claimed by them, that it would destroy the relation of rates as between the markets north of us, and cited as illustrative of this that it would make the difference in rates from Baltimore to North Carolina points and from Richmond to the same points only 5 cents, which would afford just ground of complaint to Richmond. The carriers proposed to observe combinations of current locals on Norfolk, Rich- mond, Lynchburg, and Roanoke, and to observe combination of all-rail rates from interior points, and assert that this would result in substantial relief on important commodities, as partially illustrated in their report, herewith sent, page 28. BUFFALO-PITTSBURG DISTRICT The Commission suggested that rates from Buffalo-Pittsburg District be also adjusted by the use of proportionals south of Virginia cities, as had been suggested as to western rates. The carriers, however, declared that they were not then prepared to deal with that question: 1. Because they did not have with them tariffs which would enable them to deter- mine the effect of that basis; and 2. Because they could not determine that question without consulting their eastern connections, opportunity for which had not been had. They agreed, however, to take the suggestion under consideration, expressing a belief, however, that that method of adjustment would be impracticable. REDUCTION OF FREIGHT RATES 75 SOUTHERN RATES The carriers agreed to undertake the revision of rates on bananas in car-loads to North Carolina territory, involving reductions to representative points as follows: Raleigh 11 cents per cwt. Greensboro 11 cents per cwt. Salisbury 12 cents per cwt. Charlotte 13 cents per cwt. Asheville 13 cents per cwt. Other adjustments were taken up and discussed, but no conclusion made in respect to them, particularly a desired reduction in the coal rates to North Carolina. After failure of the carriers and the Commission to reach an entire agreement in respect to western rates, it seemed difficult to enter earnestly into consideration about other matters. With the western rates once agreed upon, it is our opinion that other matters can be taken up much more successfully, and that an agreement upon the first important matter of difference would be a strong inducement towards the settlement of others. It was understood that in the event of an adjustment of rates, the rates on all branch lines and to all points not herein mentioned should be so revised that they would bear the same relation to the proposed new rates that they do to the existing rates. It was further understood that the proposed adjustment should not have the effect of raising any rates at any points which are now lower than this adjustment, this agree- ment having special reference to Fayetteville. CONCLUSION The Corporation Commission makes no recommendation in respect to the matters set out in this report, for the reason that it has not itself reached a con- clusion about the matter, and does not desire to do so until it has had the advan- tage of consultation with the Governor, the Council of State, the Legislative Com- mission, and such other persons and organizations as the Governor may think proper to call into conference upon the matter, and for the further reason that the Commission deems it desirable that whatever conclusion may be reached upon the matter shall be, if possible, harmonious. The Commission had with it in this conference the assistance and advice of Mr. J. L. Graham, of Winston-Salem, ~N. C, regarded by us as one of the ablest and most experienced rate experts in the State not associated with the railroads. His services were of great value to us. We herewith hand you the detailed report of the negotiations submitted by the carriers. Respectfully submitted, E. L. Travis, Chairman. W. T. Lee, Commissioner. George P. Pell, Commissioner. A. J. Maxwell, Clerk. 76 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG MEMORANDUM OF CONFERENCE AT HOTEL CHAMBERLIN, OLD POINT COMFORT, VIRGINIA JULY 22 TO 25, 1913, INCLUSIVE BETWEEN Chairman Travis, Commissioners Lee, Pell, and Secretaet Maxwell, of the North Carolina Corporation Commission; J. L. Graham of Winston-Salem, N. C, in Advisory Capacity AND C R. Capps, V. P. ) _ _ J. Seaboard Ant Line Railway G. S. Rains, G. F. A. I R. A. Brand, V. P. ) > Atlantic Coast Line Railway J. W. Perrin, G. F. A. ) J. R. Ruffin, F. T. M., Norfolk and Western Railway E. D. Kyle, T. M., Norfolk Southern Railroad J. M. Culp, V. P. L. Green, F. T. M. Southern Railway Company This conference was held in pursuance of suggestion made by the Railway Execu- tives in conference with Governor Craig, members of the North Carolina Corporation Commission, and Council of State, in Raleigh, N. C, July 15, 1913, as follows: Mr. FINLEY: "I suggest, having in mind, and I am sure the other officers here of the other railroads feel that way about it, that we have reached a point from which I think we can take hold of this question again. I think we are getting to look at this question somewhat alike in the way of an adjustment. The best thing to do now is for the committee, the representatives of the State, to meet with the railroads and see what they can work out now from what has been discussed, what has been submitted, and with the assurance that they will do that — that something shall be done in a short time. If the Commissioners and the Traffic Officers of the railways are not able to agree, the Executive Officers will again meet here. I make this suggestion because I think it is the best way to get results. I think the Traffic Officers should get together very promptly." The matter that had been "submitted" was a basis proposed by the North Carolina Corporation Commission for the construction of rates from the West to North Carolina points, namely: That said rates be made by the use of proportional rates south of Virginia gateways, applying Southern Railway Virginia main-line mileage scale for the average distances from the Virginia gateways to the respective North Carolina rate zones as they now exist, subject to the condition that the reductions resulting to points in North Carolina Rate Zone No. 1 (the zone to which the scale of local rates from Virginia cities, begin- ning with 61 cents, first class, now applies), shall be the maximum reduction for other North Carolina rate zones; except that the reduced rates to Statesville, N. C, should be the maximum for points on Southern Railway main line west of Statesville, and that no reduction to any point in the State should be less than the reduction made to points in Zone No. 2, Charlotte, etc. A suggestion was also made by the Commission at the conference in Raleigh, July 15th, that commodity rates should be established on important articles in car-load lots, REDUCTION OF FREIGHT RATES 77 differentials below the reduced class rates, but no definite suggestion was made at the Raleigh conference as to the measure of these differentials. At the present conference at Old Point, July 22-25th, the Commission proposed that as to grain and grain products, car-load rates should be made 2 cents per hundred pounds lower than the reduced rates on Classes C, D, and F, respectively, and that a commodity rate be also established on potatoes in car-loads a differential below the reduced class rate. The special iron rates included in this memorandum, except those to Asheville and other western North Carolina points, were not a subject of discussion at the confer- ences. They were inserted in response to a request of the Commission just prior to adjournment, and the reductions shown are the suggestion of the carriers: Predicated on the basis outlined by the Commission, rates from Cincinnati and Louisville to representative points in North Carolina, would be reduced as follows: TO GREENSBORO— ZONE No. 1 Gr. Fir. Pts. Spl. Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. Present rates from Cincinnati and Louisville 93 79 64 47 40 31 27 37 32 29 42 44 64 29' 32 31 27 31 From Virginia Cities proper.... 61 51 42 32 28 21 17 22 21 18 28 32 42 IS 21 21 17 21 Southern Railway Va. main-iine mileage scale for 189 miles 50 43 33 23 19 16 15 19 16 14 19 23 32 14 16 16 16 16 Reduction 11 89995235499 10 4 5 5 1 5 The Commission modified its request as to the measure of reduction to points in Zone 1, to the extent of 1 cent on fourth and 2 cents on fifth class. As modified, the carriers were asked to make the following reductions: Grain. Flour. Potatoes. Special Iron. 1 23456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 11 89875255499 10 6 7 5 1 5 The carriers after thorough consideration of the reductions proposed by the Com- mission, sought the latter's acceptance of the following: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 98754223224544 5 4 2 2 which the Commission declined. Subsequently and finally, the carriers presented the following figures: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 11 8765423445585 6 4 2 2 The Commission offered to report without recommendation to the Governor, for his consideration, the following figures, if the carriers would offer them as a propo- sition: _ . Grain. Flour. Potatoes. Special Iron. 12345 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 11 8877424445585 6 4 2 2 The carriers announced that the reductions represented by their final figures were all that they could make. On basis of these, the comparison as to rates from Cincin- nati and Louisville to points in Zone 1 is as follows: „ . Gram. Flour. Pts. Special Iron. 12345 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. Present _. 93 79 64 47 40 31 27 37 32 29 42 44 64 29 32 31 27 31 Proposed 82 71 57 41 35 27 25 34 28 25 37 39 56 24 26 27 25 29 78 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG TO CHARLOTTE— ZONE No. 2 The basis proposed by tbe Commission, viz.. Southern Railway Virginia main-line scale for an average distance of 235 miles, would produce the following results: 1 2 3 4 5 6ABCDEHF Present locals from Virginia cities proper 68 58 48 38 33 25 18 24 23 20 33 38 46 Southern Ry. Va. mileage scale (or 235 miles. 58 48 38 27 24 18 18 23 17 15 24 27 34 s 6 A B C D E H F 7 S 1 5 4 9 9 10 Reductions 10 10 10 11 9 7 1 6 5 9 11 12 Modified by the provision that reductions to Zone 1 should be maxima to Zone 2, the figures would be as follows: 12 3 4 10 8 9 8 The reductions proposed by the Commission at the present conference were: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 10 89875255499 10 6 7 5 6 The carriers submitted for the Commission's acceptance the following: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 98754201224544 5 4 2 The Commission declined to accept these figures. Subsequently and finally, the carriers submitted the following: Gr„in. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 10 8765421445585 6 4 2 3 The Commission offered to report without recommendation to the Governor, for his consideration, the following figures, if the carriers would offer them as a proposition: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 11 887742444558 5 6 4 2 4 The carriers announced that the figures they had finally submitted represented the limit beyond which they could not go. The following is a comparison of present rates from Cincinnati and Louisville to Charlotte with those that would result from the reduced proportions contemplated by the carriers' final suggestion: Grain. Flour. Pts. Special Iron. 1 23456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. Present 100 86 70 53 45 35 28 39 34 31 47 50 68 31 34 35 28 34 Proposed 90 78 63 47 40 31 26 38 30 27 42 45 60 26 28 31 26 31 Reduction 10 876542144558 5 TO HOPE MILLS— ZONE No. 3 The carriers suggested reductions as follows: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 9 8 7 5 4 2 1 1 2 2 4 5 4 4 5 4 ■REDUCTION OF FREIGHT RATES 79 The Commission offered to report the same reductions to points in this zone as to points in Zone No. 2, which were: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 11 8877424445585 6 4 2 4 The final reductions suggested by the carriers, beyond which they felt they could not go, were as follows: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 10 8765421445585 6 4 2 4 The following is a comparison of present rates from Cincinnati and Louisville to Hope Mills, and of those that would result from the final basis submitted by the carriers : Grain. Flour. Pts. Special Iron. 1 23456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. Present- 112 98 82 65 52 42 32 43 36 33 55 59 72 33 36 42 32 38 Proposed 102 90 75 59 47 38 30 42 32 29 50 54 64 28 30 38 30 36 Reduction 10 876542144558 5 6 4 2 2 GIBSON— ZONE No. 4 The carriers suggested reductions as follows: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. s 5 5 5 2 1 1 1 1 1 2 2 2 3 4 3 which the Commission declined. The carriers' final suggestion was: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 55552111222243 4 1 2 1 which the Commission offered to report without recommendation, provided reductions on sixth class and Class B were made 2 cents instead of 1 cent. GASTONIA— ZONE No. 4 The following reductions were suggested by the carriers in rates from Cincinnati and Louisville: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 5 5 5 5 3 1 1 1 3 3 2 6 5 6 3 which the Commission declined. These reductions would have given Gastonia the same total rates from Cincinnati and Louisville as first proposed by the carriers to Gibson. The final proposition of the carriers contemplated the following reductions: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 5555311144262 5 6 1 2 1 these figures having the effect of giving Gastonia the same totals from Cincinnati and Louisville as under the final proposition of the carriers with respect to Gibson. "We understand the reductions proposed to Gastonia would be reported by the Com- mission without recommendation if the sixth class and Class B were reduced 2 cents respectively. 80 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG HICKORY AND LINCOLNTON— GROUP No. 4 The first suggestion made by the carriers was to reduce the rates to these points to the following extent: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 5 5 5 5 3 1 1 3 3 4 6 2 2 6 3 this giving Hickory and Lincolnton the same total rates as to Gibson and Gastonia. The carriers finally proposed the following reductions: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 95553112414642 6 1 2 1 resulting in the following total rates from Cincinnati and Louisville: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 107 93 77 60 50 41 31 42 34 31 53 57 68 30 32 41 30 37 The Commission suggested the adoption of the following totals from Cincinnati and Louisville to Hickory and Lincolnton: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 103 89 75 60 50 38 30 40 32 30 50 54 68 27 28 which would have involved the following reductions: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 9975342562794 5 10 which the carriers advised they could not accept. MARION— GROUP No. B Statesville, N. C, is in Zone No. 2, and the observance of reduced rates to that point as maxima to points in the western part of the State would have caused such extraordinary reductions that the carriers were compelled to decline the observance of Statesville rates as maxima to territory west thereof, and in lieu of this basis sug- gested the observance of reduced rates to Marion as maxima as hereinafter explained. To illustrate the effect of the application of the reduced Statesville rates resulting from the carriers' final suggestion as maxima to points west of Statesville, the rates to Marion would have been reduced to the following extent: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 26 24 23 20 15 14 6 9 9 4 16 19 12 5 11 6 8 14 Reductions first proposed by carriers to Marion, as follows: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 9984341540572 1 7 6 .... The carriers finally proposed the following reductions: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 9984341550574 1 7 4 3 3 The Commission proposed the following total rates from Cincinnati and Louisville to Marion: REDUCTION OF FREIGHT RATES 81 Grain. Flour. Potatoes. Special Iron. 1 2345 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 103 89 75 50 50 38 30 40 32 30 50 54 68 27 28 the adoption of which would have caused the following reductions: Grain. Flour. Potatoes. Special Iron. C.L. C.L. L.C.L. 1 2 3 4 5 6 A B C D E H F C.L. C.L. 13 13 11 7 5 7 2 7 7 1 8 10 4 4 11 which reductions the carriers deemed excessive and declined to accept. Since conference, Southern Railway is in receipt of a letter from Commissioner W. T. Lee, from which the following is quoted: "I would suggest that you start Marion at $1.05 and Waynesville and Hendersonville at $1.05. You will note this will make the same reduction in cents per hundred pounds as to the Greensboro Zone." Assuming that Commissioner Lee intended to suggest that reductions he made to Marion, Waynesville, and Hendersonville on each class the same as to points in the Greensboro Zone, said reductions would be as follows: Grain. Flour. Potatoes. Special Iron. 1234 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 11 876542344558 5 6 4 2 2 and would result in the following totals: Grain. Flour. Potatoes. Special Iron. 12345 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 105 94 67 61 50 41 30 44 35 27 53 59 64 26 33 41 32 38 as compared with totals finally proposed by the carriers as follows: Grain. Flour. Potatoes. Special Iron. 123456 A BCDEHF C.L. C.L. C.L. C.L. L.C.L. 107 93 78 63 52 41 31 42 34 31 53 57 68 30 32 41 33 36 It should he borne in mind that the rates which the carriers propose to establish at Marion were intended to he the maxima to points on Southern Railway between Marion and Asheville, and that the Marion rates were also intended to apply to Shelby, Rutherfordton, Morganton, Hendersonville, and Waynesville and as maxima to destina- tions intermediate thereto, involving substantial reductions to all of said intermediate stations. The suggestion just received from Commissioner Lee, if correctly interpreted, would involve some advances as well as some reductions from the figures proposed by the carriers. The reductions proposed by Commissioner Lee on Class D and on grain, car-loads, would be most serious, and cause the adoption of a lower rate on Class D and on grain, in car-loads, to Marion than to Hope Mills, Gibson, Gastonia, Hickory, or Lincolnton. The Seaboard Air Line could not maintain lower rates to Shelby and Rutherfordton than to Lincolnton and intermediate points via its route. Therefore, if suggestions now made by Commissioner Lee are adopted as to Marion, the Seaboard will have to abandon its policy of maintaining rates to Shelby and Rutherfordton on the Marion basis, or reduce its Lincolnton rates below the Hickory basis, which it now maintains. In view of these facts, and in view of the most substantial concessions involved in the carriers' final figures, it appears to the carriers that they should not be expected to make further sacrifice at Marion and points west thereof. 82 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG SHELBY AND RUTHERFORDTON— ZONE No. 5 In both the initial and final suggestion of the carriers, Shelby and Rutherfordton were grouped with Marion, and reductions involved in the final suggestion of the carriers to these points were as follows: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 9984363555689 6 7 6 3 3 The Commission suggested the following total rates from Cincinnati and Louisville to Shelby and Rutherfordton, namely: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 103 89 75 60 50 38 30 40 32 30 50 54 68 27 28 which would have involved the following reductions, namely: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 13 13 11 7 5 9 4 7 7 6 9 11 9 9 11 which the carriers could not accept. MORGANTON— ZONE No. 5 The observance of the proposed Marion rates to Morganton would result in the following reductions from Cincinnati and Louisville: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 99843635516862 7 6 3 6 WAYNESVILLE AND HENDERSONVILLE— ZONE No. 6 The observance of Marion rates as maxima under the final proposition of the car- riers would result in the following reductions to Hendersonville: Grain. Flour. Potatoes. Special Iron. F C.L. C.L. C.L. C.L. L.C.L. 1 5 7 3 5 and to Waynesville: Grain. Flour. Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 99 10 9781551365 2 7 8 3 8 To these points the Commission proposed the following totals from Cincinnati and Louisville: Grain. Flour. Potatoes. Special Tron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 103 89 75 60 50 38 30 40 33 30 50 54 63 25 28 the adoption of which would have caused the following reductions to Hendersonville: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 13 12 11 11 8 10 2 5 5 7 9 4 9 .. .... and an increase of 1 cent on Class D and of 2 cents on Class F over the present figures. The adoption of the Commission's proposal to Waynesville would cause the following reductions: 5 6 A B C D E H 6 7 1 3 3 4 6 REDUCTION OF FREIGHT RATES 83 1 2 3 4 5 6 A B C D E 13 13 13 12 9 11 2 7 7 6 Grain. Flour. Potatoes. Special Iron. F C.L. C.L. C.L. C.L. L.C.L. 3 5 11 The carriers did not feel that they could fairly be asked to make such heavy reduc- tions as those proposed by the Commission. Note comment above under Marion with respect to Commissioner Lee's proposal as to Waynesville and Hendersonville. ASHEVILLE— ZONE No. 6 In addition to the reduction in car-load commodity rates from Cincinnati and Louis- ville to Asheville, hereinafter set out, the carriers first proposed to reduce the class rates to Asheville to the following extent: 1 Further concessions were subsequently suggested looking to reductions as follows: Grain. Flour. Potatoes. Special Iron. 3 4 5 6 A B C D E H F C.L. C.L. C.L. C.L. L.C.L. 2 3 5 7 4 1 3 3 5 3 6 7 Grain. Flour. Potatoes. A B C D E H F C.L. C.L. C.L. 0762555 3 8 5 Since the conference a letter has been received from Commissioner W. T. Lee, suggesting the following rates from Cincinnati and Louisville to Asheville: Grain. Flour. Potatoes. 1 2 3 4 5 6 A B C D E H F C.L. C.L. C.L. 93 81 73 60 50 38 26 34 28 24 56 23 25 The adoption of this suggestion would cause the following reductions in the rates to Asheville and all points between Morristown and Asheville, and practically the same reductions to Morristown, the rates to which are now almost identical with the Ashe- ville rates: B Grain. Flour. Potatoes, D E H F C.L. C.L. C.L. 3 5 5 7 4 11 „ Inasmuch as the Asheville rates are now on a very low basis, and in view of the substantial concessions already suggested by the carriers as to the class rates and as to important car-load commodities, set out below, it is the belief of the carriers that the Commission will not insist on any further sacrifice in the Asheville territory. Following is a statement of present rates to Asheville and those finally proposed by the carriers, on both classes and car-load commodities, which we trust will find acceptance: CLASSES Present Proposed Reductions 4 1 2 3 4 5 6 A B C D E H F 99 88 77 65 55 46 28 43 36 27 52 58 63 95 84 75 63 52 41 28 36 30 25 47 53 58 COMMODITIES Pre33nt. Proposed. Agricultural implements, rated 6th class in Southern Classifi- cation, mixed with farm wagons without springs, min. wt. 20,000 lbs., C. L 46 36 Agricultural implements, viz.: Harvesting machinery and binders' twine, mixed, min. wt. 24,000 lbs., C. L 55 45 Reduction. 10 10 52 3 28 8 45 10 49 6 24 3 84 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Present. Proposed. Reduction. Agricultural cultivating implements, straight or mixed, C. L., min. wt. 20,000 lbs., viz.: Corn planters, cotton choppers, cotton planters, cultivators, field rollers, grain drills, guano distributors, harrows, plows, potato diggers, potato planters, seed sowers (not hand), stalk cutters (field), transplanters and parts thereof, when shipped with implements named.. 46 36 10 Beams, plow and plow handles, in the rough or in the white, straight or mixed, min. wt. 20,000 lbs., C. L 46 36 10 Canned goods, viz.: Beef, pork, sausage, tripe, and meats and vegetables, combined, in tin cans, packed in boxes or barrels, C. L 55 46 9 Crackers, bread, cakes, and cracker meal, packed, C. L., as per Note 39, Southeastern Tariff, No. 8 55 Flour, C. L 36 Jars, fruit and jelly glasses, straight or mixed, C. L 55 Glass, rough or ribbed, C. L.; glass, window (not plate), C. L.. 55 Grain, C. L 27 Iron and steel articles, viz.: Sheet iron and sheet steel, not planished or polished, min. wt. 30,000 lbs., C. L 46 34 12 Iron roofing (see Note 53, page 136, Southeastern Tariff, No. 8), black or galvanized, plain or corrugated, and steel or iron siding, stamped in imitation of brick or stone, straight or mixed, with sheet iron or sheet steel (not planished or pol- ished), min. wt. 40,000 lbs 46 Special iron, minimum wt. 30,000 lbs., C. L 30 Same, L. C. L 38 Meats, fresh, min. wt. 24,000 lbs. (see Notes 55 and 56, page 136, Southeastern Tariff, No. 8), C. L 60 50 10 Packing-house products (see Notes 55 and 56, page 136, South- eastern Tariff, No. 8 ) , C. L 43 36 7 Oatmeal, rolled oats, rolled, packed, crushed or flaked, rye flaked, rolled, pearl barley and hominy grits, not cooked, packed, or in barrels, kegs, drums or half-barrels, or in cot- ton or in gunny sacks, C. L 46 35 11 Pickles, in wood or in glass, straight or mixed, C. L 46 41 5 Pickles, vinegar, sauerkraut, mustard (prepared), horseradish, catsup, table sauce or olives, in glass or earthenware, packed or in wood, mixed with preserves, fruit butters, or jellies, in glass, earthenware or cans, packed or in wood, C. L 55 46 9 Powder, soap, straight or when mixed with washing compounds, not liquid, and soap in boxes or barrels, agreed to be of value not exceeding 5 cents per pound and so expressed in bill of lading (see Rule 2, Southern Classification), C. L. .. 34 29 5 Salt, C. L 23 18 5 Soap, in boxes or barrels, agreed to be of value of not exceed- ing 5 cents per pound and so expressed in bill of lading, or when mixed with washing compounds, not liquid, or soap powders, C. L 34 29 5 Soda, bicarbonate, in sacks, kegs, barrels, or casks, and in pails, crated, min. wt. 30,000 pounds, C. L 55 45 10 Starch, packed or in sacks, C. L 37 35 2 Stoves and ranges (except alcohol, gas, gasoline, oil, and vapor stoves and ranges), hollo wware, stove and range furniture, grate frames, baskets, fixtures, stove boards and stove pipe 34 12 30 34 4 REDUCTION OF FREIGHT RATES 85 Present. Proposed. Reduction. (side seams not closed), 0. R., C. L. (C. L. shipments not crated or boxed must be so braced in car as to prevent shift- ing of the load and to insure safe transportation) 55 45 10 Wooden and paper butter dishes and plates, min. wt. 24,000 lbs., C. L 55 45 10 It is understood that in the event a revision is made of the rates from Cincinnati and Louisville to points in North Carolina, like revision will be made from other Ohio River crossings, and St. Louis, Memphis, and Nashville, so as to preserve the existing relationship. It is the intent of the carriers, in the event of an agreement with the State and sub- sequent adoption of the rates herein suggested by them, under the approval of the Inter- state Commerce Commission, to so revise rates to points on branch lines, not herein- before referred to, as to substantially preserve present relationships. It is proposed by the carriers that as to points intermediate from the West, via the direct routes through Virginia cities, to observe the revised rates to points in Zone No. 1 as maxima to intermediate destinations. The Commission proposed that to points in North Carolina north of the northern boundary of Zone No. 1 reductions be made in rates from the West the same in per- centage as to points in Zone No. 1. This proposal was not accepted by the carriers, because of their feeling that Fourth Section observance will result in substantial reductions to points intermediate to Zone No. 1, and that even observing Zone No. 1 figures as maxima involves some intermediate Virginia destinations. WILMINGTON, N. C. To Wilmington and other water competitive points on the coast of North Carolina the Commission suggested reductions — not to the same extent, but with some relation to reductions to inland points. The following tentative reductions to Wilmington were discussed, viz.: 1 2 3 4 6 6 A B C D E H F 4 2 3 2 1 1 2 3 1 4 2 No agreement could be reached, because the carriers believe that no reductions to these water competitive points below the necessity of competition can possibly be justi- fied. Note. — The commodity rates herein proposed on "potatoes, C. L." will apply on the following description: "Vegetables, viz.: Apples, pears, beets, cabbage, onions, turnips, and potatoes, straight or mixed C. L. (potatoes, in straight C. L., min. wt., May 1st to October 31st, inclusive, 24,000 pounds, and from November 1st to April 30, inclusive, 30,000 pounds.)" Note. — The carriers will undertake a revision of rates on bananas, in car-loads, from Mobile to North Carolina destinations, involving reductions to representative points as follows: Raleigh and Greensboro, 11 cents; Salisbury, 12 cents; Charlotte, 13 cents; and Asheville, 13 cents per hundred pounds. RATES FROM THE EASTERN SEABOARD TERRITORY TO POINTS IN NORTH CAROLINA (This heading is intended to embrace all the territory lying in and east of the Buffalo-Pittsburg Zone.) At a conference with the North Carolina Commission at Old Point Comfort, June 24, 1913, representatives of the railways submitted a memorandum to the Commission, a paragraph of which reads as follows: 86 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG "After conference with representatives of the B. and 0., Pennsylvania, and Reading Railway, we are prepared to say that those lines will concur with their southern con- nections in the revision of rates via all-rail from points on those lines to points in North Carolina, observing combinations of current locals on Norfolk, Richmond, Lynchburg, and Roanoke as maxima." Combinations of locals do not affect current class rates except via all-rail from New York, Philadelphia, and Baltimore. The lower water and rail rates attract practically all of the business from these ports to North Carolina destinations, and therefore the question of all-rail combinations as to class rates from the ports to North Carolina points is of small consequence. Nevertheless, it is the purpose of the carriers, in the event of agreement with the Commission, to observe these combinations as maxima. The observance of combination via all-rail from interior points will, the carriers be- lieve, be of substantial value, particularly as to some of the leading commodities moving in car-loads, as illustrative of which attention is directed to the following: The rate on molasses and glucose in car-loads from New York and Philadelphia, all- rail, to North Carolina destinations, will be reduced in amounts ranging from 1% cents in some cases, to as much as 5% cents in others. Hardware, N.O.S., as per Official Classification, from Boston and points taking Boston rates, will be reduced to the principal destinations in North Carolina 7 cents per hun- dred pounds. Glass bottles, fruit jars, and glassware, N.O.S., in car-loads, from some of the actual shipping points in the interior east, will be reduced in sums ranging from y 2 cent to 11 cents per hundred pounds. Crackers, car-load from New York and Philadelphia to the principal destinations in North Carolina, 4 cents. Canned goods, from New York and Philadelphia, reductions ranging from 4 to 6 cents. Roofing paper from York, Pa., 1% cents, and from Downington, Pa., 4 cents. Tin cans from Baltimore, 2 cents. Petroleum and its products from Marcus Hook, Pa., reductions ranging from iy 2 to 4% cents. Soap from New York and Philadelphia, and bicarbonate of soda from Syracuse, N. Y., reductions ranging from 3 to 5 cents. Strawboard from Pencoyd, Pa., 2 cents. These are merely illustrative, and do not embrace the entire range of changes that will result from the adoption of this basis. It is not to be understood that every rate to every destination from these or other shipping points is affected, even on the commodities named, by the combination of locals. Lack of time and of opportunity to discuss these matters with eastern connections does not permit us at the moment to go into more detail, but it is understood that in the event of agreement with the Commission, the carriers will proceed with all reasonable dispatch to bring to a conclusion with the eastern connections this question of interior eastern rate adjustment. During the closing hours of the present conference, the Commission suggested to the carriers the application south of Virginia cities of proportional rates for the construc- tion of totals from points in the Eastern Seaboard territory to North Carolina destina- tions, the same as those to be used in the construction of revised rates from Ohio River crossings. The basis of rates the carriers believe to be altogether impracticable, for reasons set out in the memorandum submitted by the carriers at conference in Raleigh, April 26, 1913. The suggestion of the Commission was, therefore, respectfully declined. It was thereupon suggested by the Commission that the carriers use this basis in the construction of rates from points in the Buffalo-Pittsburg Zone, but the carriers were not then prepared to deal with that question, first, because they did not have with them REDUCTION OF FREIGHT RATES 87 tariffs which would enable them to determine the effect of the application of the basis, and, second, because they could not determine that question without consulting their eastern connections, opportunity for which has not yet been had. The carriers, however, agreed to take that suggestion under consideration, and to advise what, if anything, could be done with it. There has not yet been time for a thorough analysis of the question or for any dis- cussion with initial carriers, but we now express the belief that the application of pro- portional rates on business from points in the Buffalo-Pittsburg Zone, the same as those used on business from the Ohio River crossings, is impracticable. The present rates are lower than combination of locals to the following extent: 1 2 3 4 5 6 A B C D E H F Buffalo 11 9 7 4 4 3 3 3 3 3 4 4 6 Pittsburg 8 8 5 1 1 1 1 1 1 1 1 1 2 The question of these rates depends so much upon the position of the initial carriers that the representatives of the North Carolina lines are unable at the moment to advise what, if anything, can be done looking to the modification of the existing total class rates from the Buffalo-Pittsburg Zone. It is understood, of course, that in so far as rates may be affected by combination of locals, the revision will be made. The revision of rates herein presented by the carriers is proposed in the spirit enunciated in memorandum presented by representatives of the carriers to representa- tives of the State in conference at Raleigh, February 26, 1913, and subject to the condi- tions set out in said memorandum, and with the further understanding, as agreed upon with the North Carolina Commission, that an agreement between the Commission and the carriers, approved by the Governor, settles all pending differences between the State of North Carolina and the railways with respect to rates on interstate traffic involved in the various conferences between representatives of the railways and rep- resentatives of the State. This memorandum is prepared in pursuance of understanding reached just before adjournment of the conference, that it would be furnished the Commission and sub- mitted by it to the Governor, and that the undersigned would be notified as to any con- clusion reached by the Governor and the members of the Commission. It was also understood that in the event the rates now suggested by the carriers are not accepted by the State, there is to be another conference between the Governor, the Commission, and the executives of the railways. (Signed) L. Green, Chairman, Committee of Railway Representatives. MEMORANDUM OF CONFERENCE AT THE OFFICE OF THE NORTH CAROLINA CORPORATION COMMISSION, RALEIGH, N. O, AUGUST 2, 1913, BETWEEN Chairman Tbavis, Commissioners Lee, Pell, and Secretary Maxwell, or the North Carolina Corporation Commission, AND C. R. Capps, V. P., Seaboard Air Line Railway. R. A. Brand, V. P. ) _ y Atlantic Coast Line Railway. J. W. Perrin, G. P. A. L. Green, F. T. M., Southern Railway Company. This conference supplemented that held at Old Point Comfort, Va., July 22-25th, inclu- sive, and was upon telegraphic request of the Chairman of the Commission. 88 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG The carriers, after further consideration of requests of the Corporation Commission, modified the final figures submitted by them at the Old Point Comfort conference to the following extent to Zone No. 1: Classes 2 5 Potatoes, C.L. 1 1 2 making the full line of reductions finally proposed by the carriers at the Old Point Com- fort conference, and as now amended, as follows: Grain. Flour. Potatoes. 12345 6ABCDEHF C.L. C.L. C.L. 11 886642344558 5 6 6 To Zone No. 2, the carriers proposed the following additional concessions: Classes 1 3 5 B Potatoes, C.L. 1112 2 making the measure of reductions to Zone No. 2, as finally submitted by the carriers at the Old Point Comfort conference, and as modified at the meeting of even date, as follows: Grain. Flour. Potatoes. 1 2 3 i 5 6 A B C D E H F C.L. C.L. C.L. 11 8 8 6 6 i 2 2 4 4 5 5 9 5 6 6 The same reductions to be made to points in the Hope Mills Zone as in Zone No. 2. The difference of 2 cents per hundred pounds between Potatoes, C.L. and L.C.L., to be carried throughout the State. To Marion, Hickory, Lincolnton, Shelby, Rutherfordton, Hendersonville, and Waynes- ville, the carriers agreed to an additional concession of 2 cents per hundred pounds on first class, thus making the reduction on first-class 11 cents per hundred pounds, the same as to points in Zone No. 1. To Asheville, N. C, the carriers agreed to a concession, in addition to those proposed at the Old Point Comfort conference, of: Classes 1 4 A Potatoes, C.L. 112 2 thus making reductions to Asheville as follows: Grain. Flour. Potatoes. 123456ABCDEHF C.L. C.L. C.L. 6423352762555 3 8 7 The following statement is made by the carriers as an addition to the memorandum of the proceedings of the Old Point Comfort conference: To points to which present rates have been depressed by water competition, reduc- tions will not be made except to make the rates thereto not higher than to the next intermediate point. L _ Qree ^ Chairman, Committee of Raihoay Representatives. •REDUCTION OF FREIGHT RATES 89 To His Excellency, Locke Craig, September 19, 1913. Governor of North Carolina: Pursuant to conclusion reached after advising with your Excellency, the Cor- poration Commission resumed negotiations with the railways for further reduc- tions in interstate freight rates in Washington on September 10th. The negotia- tions extended through three days, the Commission during that time treating with both the traffic managers and the presidents of the roads. As the result of these negotiations the railroads have submitted an amended proposition, which we herewith submit for your consideration. The amended proposition makes no change in the reductions heretofore offered on western traffic to zones one, two, and three, except to increase the reduction one cent per hundred pounds on class A, in order to make that proportionate to the other classes. The main defect in the former proposition, in our view, was that it did not offer relatively equal reductions to all parts of the State. It did not offer any reductions to water points, and the reductions to points between zone one and the Virginia border, to points west of Statesville, and to Gastonia were too small as compared to the reductions in zones one and two. The amended proposition offers increased reductions to all of these points except water points. POINTS ON NORTHERN" BOEDER In respect to the points near the Virginia border north and east of zone one, the reductions now offered to them are proportionate to those offered to zones one and two. Following this basis the proportional rates from Virginia cities on western traffic were made as follows: to weldon _ . _ Grain. Flour. Potatoes. 123456ABCDF C.L. C.L. C.L. Present 65 46 39 29 26 19 16 20 16 14 30 14 16 16 Proposed 45 39 32 24 21 16 14 17 14 12 28 11 12 14 Reductions 10 7755323222 3 4 2 These same rates to apply to Eoanoke Eapids, and be maxima to all points on Atlantic Coast Line and Seaboard Air Line, north of Weldon ; to apply to Lewiston and be maxima to all points on the Lewiston branch of the Seaboard Air Line ; to apply via Norfolk to Tarboro, and be maxima to all stations east of Tarboro on the Atlantic Coast Line; to points on Norfolk Southern Eailroad taking fifty-five-cent rate first class, or less, except such as already have forty-five- cent rate, or less ; to Eeidsville, via Lynchburg, and the maxima to all points north on the Southern Eailway. The rates to all points on the Norfolk and Western Eailway between Winston-Salem and Eoanoke and Durham and Lynchburg are fixed practically on the same basis, resulting in rates to Madison and Eoxboro slightly lower than the Weldon rates except on first class. GASTONIA The reductions now offered to Gastonia, are as follows: Grain. Flour. Potatoes. 123456ABCDF C.L. C.L. C.L. 98553123444 5 6 3 These are not as great as to zone two, but nearly so. 90 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG WEST OF STATESV1LLE The reductions to this territory in the former proposal were less than to zones one and two. We have contended that the rates to this territory from the west being unjustly higher than to other parts of the State, ought to be reduced more, so as to bring about a more nearly equitable relation. They now propose to reduce the rates, from Cincinnati, Ohio, and Louisville, Ky., and related points, as follows: TO HICKORY Grain. Flour. Potatoes. 123456ABCDF C.L. C.L. C.L. Present 112 98 82 65 53 42 32 45 38 32 72 32 37 42 Proposed 101 90 77 60 50 41 30 42 32 30 64 29 31 39 11 8553123628 3 6 3 These rates to be maxima to all stations west of Hickory. This results in reductions to Morganton, Marion, Rutherfordton, Shelby, Waynesville, Henderson- ville and intermediate points (except Asheville) approximately as follows, which are greater than to other parts of the State : Grain. Flour. Potatoes. 123456ABCDF C.L. C.L. C.L. 15 12 975635719 2 8 5 BUFFALO-PITTSBURG ZONE In the former proposal no reductions had been definitely agreed upon from this territory. We regarded this an important omission because of the fact that the principal producing points of many of the most important and commonly used iron and steel products are in this zone, and the fact that the prices of many of them in all parts of the country are fixed at Pittsburg prices plus the freight. The carriers now offer commodity rates from this territory on practically all the important iron and steel articles produced in it, both in carload and less than carload, which are the same as would result from the application of the propor- tionals offered on western rates and are substantial and beneficial reductions. These commodity rates cover nails, horseshoes, bar iron, structural iron, bolts and nuts, plow bases and plow parts, cotton ties, wire fencing, sheet iron roofing, roofing tin, and a great many other extensively used iron and steel articles. In addition to this, the carriers are negotiating with their northern connec- tions for a readjustment of the all rail rates from this territory, as set out in their offer, which, if successful, will result in very gratifying reductions in the all rail class rates. They showed us their working sheets in this matter, and we were agreeably surprised to see the amount of work they had already done toward this adjustment. RATES FROM EASTERN TERRITORY The carriers propose to make such revision of all rail rates from this territory that they will in no case exceed the combination of locals on the Virginia cities, which will result in reductions as illustrated in their offer. In many cases these rates now exceed the combination of locals. REDUCTION OF FREIGHT RATES 91 In addition to this, the readjustment which they are undertaking to get in the Buffalo-Pittsburg zone, if secured, "will extend into and substantially lower the all rail rates from eastern territory, including even the eastern port cities. While the success of this adjustment is not certain, it depending on the concurrence of northern roads, we were shown that such progress had been made on it as to make it very probable. There was no agreement as to water and rail rates from this territory, and that matter is therefore left open. OUTBOUND KATES The former proposal adjusted no outbound rates. The present one offers out- bound class rates on western traffic, observing as a maxima to Cincinnati and Louisville, the following: 123456 100 85 72 57 48 39 governed by southern classification. Heretofore we have had no through class rates to the west, and all such ship- ments were made on full locals under one classification to Virginia cities, and a different one beyond. This resulted not only in very high rates, but much annoy- ance to shippers. The proposed rates will remove this annoyance and make large reductions in the rates. WATEE POINTS We have been unable to secure any reductions to Wilmington, ISTew Bern, Washington, Plymouth, Edenton, and Elizabeth City, on account of the fact that these points, having water competition, already have rates much lower than other parts of the State, and generally lower than the reduced rates will be to any other points in the State. We regret our inability to get reductions to these points, but we do not feel that it would be just that the whole State be deprived of the substantial reduc- tions offered because these points can not also get reductions, and we believe that the citizens of these cities will be too unselfish and patriotic to make such a demand, but on the contrary, will be glad to see the rest of the State enjoy in part the blessings they have already been enjoying for a long time. CONCLUSION These negotiations were originally begun by the carriers under an agreement with the Legislative Commission having as its main purpose the adjustment of rates from the west, and to make substantial reductions in them. The negotia- tions have since taken a wider range so as to cover as many disputed matters as could be agreed upon and warrant the withdrawal of the suits filed by us against the carriers before the Interstate Commerce Commission in December, 1912. The present proposition offers such substantial reductions in rates from the west as, in our opinion, amounts to a compliance in good faith with the original agreement, and makes such adjustment of the matters involved in the suits as we believe warrant their withdrawal. The reductions offered apply to a very large territory, embracing the Buffalo- Pittsburg zone, and all territory west thereof and north of the Ohio river, and all territory west of the Mississippi river to the Pacific Coast. 92 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG The reductions offered will save the shippers of the State, according to esti- mates made by the carriers based on their earnings for 1912, about $2,000,000 per year, and are the largest and most comprehensive concessions in freight rates ever made by the railroads to any State at one time. It is one of the greatest achievements in railroad rate regulation ever gained by any State by any means, and has been done in a remarkably short time and at insignificant expense as compared to the magnitude of the matter. It does not settle all questions in dispute, but those not agreed upon are left open so that anything omitted can be later adjusted, and the agreement as to those settled remains in force for two years. This will afford a reasonable time for the trial of this adjustment to see what its effect will be upon the roads, and what the benefits will be to the State. At the end of that time such changes may be made as experience may show to be wise, and alterations in transportation conditions may require. The Corporation Commission has from time to time advised with the Inter- state Commerce Commission in respect to the matters involved, and at the con- clusion of the negotiations went over the entire proposition of the earners with Hon. Edgar E. Clark, Chairman of the Interstate Commerce Commission, and asked his advice as to whether or not the State should accept it. He unhesitatingly advised its acceptance, and expressed the opinion that it would be of great advan- tage to the State. After much study of the whole subject, and a mature consideration of all the circumstances and conditions, the Corporation Commission unanimously recom- mends the acceptance of the proposition, with the firm conviction that it will save to the people a large amount of money and give renewed impetus to our industrial and commercial development. Respectfully submitted, E. L. Travis, Chairman. A. J. Maxwell, Clerk. W. T. Lee, Commissioner. Geokge P. Pell, Commissioner. (5) MESSAGE TO THE GENERAL ASSEMBLY, EXTRA SESSION, TRANS- MITTING REPORT OF CORPORATION COMMISSION OF NEGOTIA- TIONS FOR ADJUSTMENT OF INTERSTATE FREIGHT RATES September, 1913. To the Honorable, The General Assembly of North Carolina: I transmit to you herewith the report of the Corporation Commission of negotiations for adjustment of Interstate Freight Rates, made on August 5, 1913, with an amendment made on September 19, 1913. If the proposals for reduction of transportation charges contained in this report be accepted, the reduced rates are to go into effect without delay, and the acceptance by the State of the proposals therein contained will be a settlement of all pending differences between the State of North Carolina and the railways REDUCTION OF FREIGHT RATES 93 in respect to rates on interstate traffic therein adjusted, for a period of at least two years from the time of such acceptance. I refer this report, with the proposals, to the representatives of the people, that they may determine what shall be done. The carriers make definite proposals, in substance as follows: 1. From northern and eastern territory all rail rates on through freight shall in no case exceed combinations of local rates. This is not a concession, but an agreement to comply with the law, which ought never to have been violated ; but we would obtain this benefit without resort to the courts. 2. From the Buffalo-Pittsburg territory, substantial reductions on all impor- tant iron and steel commodities. 3. From western territory, reductions to the zones of the State specifically set out in the report. This western territory embraces all points east of the Buffalo-Pittsburg zone, north of the Ohio Biver, and west of the Mississippi Biver. 4. From all furniture points in the State to the far west, rates on furniture equal to the rates now in force from the Virginia cities, and to the territory east of the Bocky Mountains, a reduction of $12 per car-load on mixed furniture. 5. Commodity rates on inbound freight to the city of Asheville and related territory set out on pages 25 and 26 of the report of the Corporation Commission and on pages 10 and 11 of the amendment. In addition to the above unconditional proposals, the carriers agree to further reduce rates from northern and eastern territory, and from the Buffalo-Pittsburg zone, on condition that they secure the consent of their northern and eastern connections. I have devoted to this question most earnest thought. I have had the assistance and cooperation of experts in freight rates, and have taken counsel with the Legislative Freight Bate Commission and with officers and members of the Just Freight Bate Association, with the Corporation Commission, and with the Council of State. It is my duty under the Constitution to express to you my views and conclusions. In the discharge of this duty, I recommend that the proposals as above set out be accepted. In the original proposition there were conditions that made acceptance impos- sible. These have been eliminated, and the proposition has been amended to the decided advantage of the State. As it now stands, I believe that it makes a reduc- tion reasonable under the present rate system. I know that it makes a substan- tial reduction. In my opinion, it is a fair compliance in good faith with the understanding between representatives of the State and representatives of the carriers in conference at Baleigh on February 26, 1913. The acceptance of these proposals would save to our people a vast amount of money, and enable the cities and towns of North Carolina to compete on equal terms with the cities of other States. The saving in freight rates would be a substantial gain, but the greater con- sideration is the opportunity for business that lower rates would offer. Our prosperity would increase, and our industries be encouraged to the extent of the reduction on the cost of transportation. The proposed reductions are, in my opinion, as much or more than we could secure under the present system and construction of the law through the Inter- state Commerce Commission, even by long and expensive litigation. Under this proposition, we would secure the benefits of the reduction with little expense, and as soon as the rates could be put into effect. 94 LETTERS AND PAPERS OP GOVERNOR LOCKE CRAIG Shall we accept these proposals and save to the State a vast sum of money, and vouchsafe to her industries increasing prosperity, without compromising the dignity of the State and without yielding our right to proceed for any further reductions in rates not provided for in the adjustment; or shall we reject them, and make war upon the carriers to compel greater reductions? By the acceptance, there are no limitations, expressed or implied, upon the State. Within her juris- diction the State will exercise her sovereign power according to the dictates of her own conscience in the making and the administration of law. No one can barter away this right, if he would. I want peace, but I prefer war to an ignominous peace. I really want peace, and peace on the terms proposed is an honorable peace. I fully realize that we are not getting all to which we are entitled ; but it is much. It is a move in the direction of complete justice. If the issue with the railroads were within the jurisdiction of the State, justice would be decreed by statute, and enforced. But the power of the State cannot directly control this matter. We contend under disadvantages — against a long established system recognized by Federal statute and authority. The existing rate structure has been developed by the arbitrary will of the carriers ; it has resulted in all manner of extortion and injustice ; it must be revised. There is no competition between railroads ; the people can expect no protection from competition ; the law must fix and regulate rates. The rate for any point should be determined by the relative cost of the haul. This axiomatic principle can be established only in the Federal jurisdiction ; not until it be established can we have complete relief from the injustice under which we have long suffered. The present method of fixing rates by the arbitrary power of the railroads has existed from the beginning of railroad transportation. The people have sub- mitted because they did not know. Like the protective tariff, it has grown insidi- ously until, oppressed by accumulating injustice, the people have awakened for action. We cannot hope to uproot and destroy the whole evil at one stroke. We must persevere on the line laid down by President Wilson in his discussion of the tariff. We have begun, and will not stop. We have put our hands to the plow, and will not look back. Respectfully, Locke Ceaig Governor. (6) PROPOSITION OF COMMON CARRIERS Washington, D. C, September 12, 1913. Rate Adjustment : Rates to and from Points in North Carolina. Honorable E. L. Travis, Chairman, North Carolina Corporation Commission, Raleigh, N. C. Dear Sir : — Confirming understandings reached during conference of three days ending today, and summing up the concessions discussed in the various con- ferences between the Corporation Commission and the carriers, we advise as follows : •REDUCTION OF FREIGHT RATES 95 Subject to the understanding between representatives of the State and repre- sentatives of the carriers in conference at Raleigh, N. C, on February 26, 1913, and to the further condition that the acceptance by the State of the proposals herein contained shall be a settlement of all pending differences between the State of North Carolina and the railways in respect to rates on interstate traffic herein adjusted, for a period of at least two years from the time of such acceptance, we propose the following revision of rates on interstate traffic to points in North Carolina, viz. : BATES FEOM THE WEST This heading is intended to embrace points on and north of the Ohio River, west of the Buffalo-Pittsburg zone and points west of the Mississippi River from which rates are made by the combination on Ohio and Mississippi River crossings. 1. To establish proportional rates from one or more of the Virginia cities to points in North Carolina hereinafter described, for use in making joint or through rates from the west, lower than the now existing locals from the Virginia cities, as follows : (Note. — The "existing locals" referred to do not include the locals Roanoke to Winston-Salem or Lynchburg to Durham via Norfolk and Western Railway.) A. To points hereinafter referred to as Zone 1 on the line of Southern Rail- way North Wilkesboro via Winston-Salem, and Greensboro to Goldsboro and thence via Norfolk Southern Railway to, but not including, New Bern N. C. ; to Apex, N. C. ; to Atlantic Coast Line stations Smithfield to Goldsboro ; and to points north of above described line, except as hereinafter described, proportional rates lower than present locals from Virginia cities as follows : Grain. Flour. Potatoes. Special Iron. I 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. II 886643344558. 5 6 6 3 4 To Weldon, N. O, proportional rates will be established from Virginia cities, on business from the west, lower than the existing locals, to the following extent: 123456ABCDEHF 10 775532322512 Proportional rates to Weldon made as above to be observed as maxima to points on Atlantic Coast Line and Seaboard Air Line north of Weldon, and to points on Seaboard Air Line, Lewiston branch; also to points to which present rates from Virginia cities are on fifty-five (55) cent scale. The scale of proportional rates from Virginia cities to Weldon to be applied from Lynchburg, via Southern Railway, to Reidsville, N. O, and as maxima to stations on Southern Railway in North Carolina north of Reidsville. To Benaja and Brown Summit, on Southern Railway between Reidsville and Greensboro, reductions in cents per hundred pounds the same as to Reidsville. To points on Norfolk and Western Railway between Lynchburg and Durham, and between Roanoke and Winston-Salem, the following reductions: Grain. Flour. Potatoes. Special Iron. C.L. C.L. C.L. C.L. L.C.L. 3 4 5 2 3 96 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Pota- A B C D E H F Grain. Flour. toes. Special Iron. Hay C.L. C.L. C.L. C.L. L.C.L. C.L. 3 3 3 3 3 6 2 3 4 2 4 1 3 2 2 3 3 4 3 m 4 2 4 1 2 2 2 2 3 4 2H 4 4 2 4 1 2 VA 2 2 3 3 Vi 4 4 2 4 1 2 VA 2 2 3 3 2 4 4 2 4 1 2 \ l/ 2 2 1 3 2 3H 3 5 1 1 2 V/t 3 3 4 1 1 2 2H 3 4 1 2 2 3 5 1 2 1H 3 5 1 2 l 3 5 1 Vi i' 2 5 1 2 5 3 2 2 3 3 4 3 4 4 2 3 1 2 2 2 2 3 4 3 m 4 2 4 1 2 114 2 2 3 3 VA m 4 2 4 1 2 \y, 2 1 3 2 4 3 1 5 1 2 Hi 2 1 3 2 3'/ 2 3 1 5 1 l 1 2 3 3 1 4 1 l 1 2 2H 3 1 4 1 l 2 2 3 1 5 1 l 2 1H 3 1 5 1 l 2 l 3 1 5 1 H a 2 4 1 2 5 Winston-Salem Division : 12 3 4 5 6 Price 4 6 3 3 3 2 Stoneville 8 8 4 3 3 2 Avalon 6 6 3 3 2 2 Mayodan 6 6 3 3 2 2 Madison 6 6 3 3 2 2 Sharps 4 4 2 111 Pine Hall 4 4 2 111 Chisman 4 4 2 111 Walnut Cove 2 2 10 11 Fulp _ 2 2 10 11 Dennis 2 2 10 11 Walkcrtown 2 Winston-Salem... 2 Woodsdale 4 6 3 3 3 2 Roxboro 6 6 3 3 2 2 Pick 6 6 3 3 2 2 Helena 4 4 2 111 Mt. Tirzah 4 4 2 111 Lyndover 4 4 2 111 Rougemont 4 4 2 111 Bahama 2 2 10 11 Willardville 2 2 10 11 Fairntosh 2 2 10 11 Weaver 2 Durham 2 B. To points in Zone No. 2, namely: Statesville and Charlotte, N. C, and points on the Southern Railway between Statesville and Charlotte and east of Statesville and Charlotte and south of Zone No. 1; to points on the Winston- Salem Southbound Railroad ; points on the Seaboard Air Line Railway south of Apex to Charlotte, inclusive, via Hamlet and Monroe, including its branch line Moncure to Pittsboro; all points on the Randolph and Cumberland Railway; all points on the Atlantic Coast Line south of Goldsboro to Wrightsboro, Warsaw to Clinton, Four Oaks to Fayetteville, not including Fayetteville, between Fayette- ville and Sanford ; points on Raleigh, Charlotte and Southern ; proportional rates to be established from Virginia cities on business from the west to points in this zone lower than the present local rates to the extent hereinbefore set out under Zone No. 1. C. To points in Zone No. 3, namely: on Seaboard Air Line between Wilming- ton and Hamlet ; on Atlantic Coast Line between Wilmington and Fayetteville. Hope Mills to Pembroke, inclusive ; Parkton to Maxton, inclusive ; all points on the Virginia and Carolina Southern and on the Aberdeen and Rockfish railroads ; pro- portional rates from Virginia cities to be lower than present locals to the same extent as in Zones Nos. 1 and 2. D. To Zone No. 4, namely: points on Atlantic Coast Line west of Wilmington to Fair Bluff, inclusive ; points south of Pembroke and south of Maxton ; points Elrod to Mount Tabor, inclusive; points on Raleigh and Charleston; propor- tional rates from Virginia cities on business from the west to be lower than the present locals to the following extent : 123456ABCDEHF 5555211122224 E. To points in North Carolina west of Charlotte and Statesville rates from the west cannot be controlled by the application of proportional rates south of Grain. Flour. Potatoes. Special Iron. C.L. C.L. C.L. C.L. L.C.L. 3 4 3 1 1 REDUCTION OF FREIGHT RATES 97 Virginia cities. Therefore, the following specific reductions are to be made in rates from Cincinnati and Louisville, from Ohio River crossings west of Louis- ville, from St. Louis and from Mississippi Eiver crossings south thereof, and from points basing thereon or made with relation thereto, namely: Gastonia and points on Southern Railway between Gastonia and Charlotte: Grain. Flour. Potatoes. Special Iron. 1 2 3 4 5 6ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 9855312344268 5 6 3 2 1 Hickory and Lincolnton : Grain. Flour. Potatoes. Special Iron. 123456 A BCDEHF C.L. C.L. C.L. C.L. L.C.L. 11 855312362568 3 6 3 2 1 Eevised Hickory rates to be maxima to points west of Hickory. To Asheville, N". C, following specific reductions from Ohio River crossings- etc. : Grain. Flour, Potatoes. Special Iron. 123456ABCDEHF C.L. C.L. C.L. C.L. L.C.L. 5425562772555 3 8 8 4 6 And in addition to the above reductions in class rates to Asheville, commodity rates are to be established on the following articles in car-load lots, causing reduc- tions from Ohio River crossings, etc., as shown below : Commodities. Reduction. Agricultural implements, rated 6th class in Southern Classification, mixed with farm wagons without springs, min. wt. 20,000 lhs., CL 10 Agricultural implements, viz., harvesting machinery and binder's twine, mixed, min. wt. 24,000 lbs., CL 10 Agricultural cultivating implements, straight or mixed, CL., min. wt. 20,000 lbs., viz., corn planters, cotton choppers, cotton planters, cultivators, field rollers, grain drills, guano distributors, harrows, plows, potato diggers, potato planters, seed sowers (not hand), stalk cutters (field) trans- planters and parts thereof when shipped with implements named 10 Beams, plow, and plow handles, in the rough or in the white, straight or mixed, min. wt. 20,000 lbs., CL 10 Canned goods, viz., beef, pork, sausage, tripe, and meats and vegetables, com- bined, in tin cans, packed in boxes or barrels, CL 9 Crackers, bread, cakes and cracker meal, packed, CL., as per Note 39, South- eastern Tariff No. 8 5 Flour, CL 8 Jars, fruit and jelly glasses, straight or mixed, CL 10 Glass, rough or ribbed, CL; glass window (not plate), CL 6 Grain, CL 3 Iron and steel articles, viz., sheet iron and sheet steel, not planished or pol- ished, min. wt. 30,000 lbs., CL 12 Iron roofing (see note 53, page 136, Southeastern Tariff No. 8), black or galvanized, plain or corrugated, and steel or iron siding, stamped in imi- tation of brick or stone, straight or mixed, with sheet iron or sheet steel (not planished or polished), min. wt. 40,000 lbs 12 Special iron, min. wt. 30,000 lbs., CL Same, LCL Meats, fresh, min. wt. 24,000 lbs. (see Notes 55 and 56, page 136, Southeastern Tariff No. 8), CL 10 7 98 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Commodities. Reduction Packing house products (see Notes 55 and 56, Southeastern Tariff No. 8), CL. . 7 Oatmeal, rolled oats, rolled, cracked, crushed or flaked rye, flaked, rolled, pearl barley and hominy grits, not cooked, packed or in barrels, kegs, drums, or half barrels, or in cotton or in gunny sacks, CL 11 Pickles, in wood or in glass, straight or mixed, CL 6 Pickles, vinegar, sauerkraut, mustard (prepared), horse radish, catsup, table sauce or olives, in glass or earthenware, packed or in wood, mixed with preserves, fruit butters or jellies, in glass, earthenware or cans, packed or in wood, CL 9 Powder, soap, straight or when mixed with washing compounds, not liquid, and soap in boxes or barrels, agreed to be of value not exceeding 5 cents per lb., and so expressed in bill of lading. (See Rule 2, Southern Classi- fication), CL 5 Salt, CL 5 Soap, in boxes or barrels, agreed to be of value of not exceeding 5 cents per pound and so expressed in bill of lading, or when mixed with washing compounds, not liquid, or soap powders, CL 5 Soda, hi-carbonate, in sacks, kegs, barrels, or casks, and in pails, crated, min. wt. 30,000 pounds, CL 10 Starch, packed or in sacks, CL 2 Stoves and ranges (except alcohol, gas, gasoline, oil and vapor stoves and ranges), hollo wware, stove and range furniture, grate frames, baskets, fix- tures, stove boards and stove pipe (side seams not closed) (CL shipments not crated or boxed must be so braced in car as to prevent shifting of the load and to insure safe transportation) 10 Wooden and paper butter dishes and plates, min. wt. 24,000 lbs., CL 10 Class rates to points on the Southern Railway west of Waynesville, east of Hendersonville, and to points on its Toxaway branch to he reduced in line with reductions to Waynesville and Hendersonville respectively. To points on these branches, and to points west of Marion, car-load commodity rates to be established in line with those provided for to Asheville wherever necessary to bring about proper relationship between the car-load commodity rates to Asheville and rates on like commodities to said other points. KATES FROM EASTERN SEABOARD TERRITORY This heading is intended to embrace all territory lying in and east of the Buffalo-Pittsburg zone. The carriers are in negotiation for readjustment of rates from this territory, via all rail, recognizing combinations of locals as maxima, advocating a continu- ance of existing relations between the rates from the ports and those from the interior, and the application of current Rochester rates as maxima from points in the Buffalo- Pittsburg zone. The success of these negotiations is dependent upon the concurrence of orig- inating and connnecting lines. It is generally known that the Northern and Eastern roads are engaged in a general revision of tariffs. The effect of combinations may not, therefore, be accurately forecasted. What follows as to the changes which may be made in the rates from this terri- tory is contingent upon the acceptance by connections of these companies. REDUCTION OF FREIGHT RATES 99 If the basis of rates advocated by these companies can be brought about, rates from Buffalo and Pittsburg will be reduced approximately as follows: 12 3 4 5 6 Buffalo 12 11 10 3 3 3 Pittsburg _ 10 9 8 2 2 2 Rates all-rail from eastern ports proper and from interior points related thereto, in the event the negotiations referred to are successful, would be reduced approximately as follows : 123456 New York 3 5 5 3 4 4 Philadelphia. 5 7 7 5 5 5 Baltimore 3 4 4 3 2 2 contingent on the continuance of the eastern lines existing locals. It should be clearly understood that an advance of five (5%) per cent in the existing locals of the eastern lines is in contemplation and will probably be made. There is also uncertainty whether the present relationship of all interior eastern points will be continued. It is not believed, however, that any substantial change will be made in that relationship. As explained to you, it is not within the power of these lines to make any more definite statement than the above with respect to this adjustment from the Eastern Seaboard Territory. If the proposals herein contained are accepted by the State, we will at once proceed with and diligently pursue negotiations with eastern con- nections. With respect to rates on iron and steel articles from Pittsburg, we will, as agreed with you, undertake to establish a car-load rate of thirty-two and one-half (32%) cents on bolts, nuts, structural iron, nails, spikes, bar iron, cotton ties and other articles of iron and steel manufacture, the rates on which north and south of Virginia gateways, are the same as on the articles above mentioned ; and a rate of thirty-five and one-half (SS 1 /?) cents on woven-wire fencing, sheet-iron roofing, and tin plate in car-loads, and on other articles of iron and steel manufacture the rates on which, north and south of Virginia gateways, are the same as on the articles above mentioned. These rates represent reductions of three cents on the first item and of four cents on the second item. Commodity rates on these articles to other points in North Carolina will be established, using the same basis as that used in making rates to points in Zone Wo. 1. Commodity rates on these articles in less than car-loads will be established from Pittsburg representing reductions of two and one-half (2%) cents per hun- dred pounds to all points in Zone No. 1. These rates will be affected by any changes which may be made in the charges north of Virginia gateways. Predicated on the continuance of existing locals and the continuance of the existing grouping, and on the adoption of the Rochester basis advocated by us as maxima from Buffalo and Pittsburg, the reductions in car-load ratings to be accomplished by the observance of combinations of locals as maxima, are fairly illustrative by the following : Hardware, NOS, as per official classification, from New England points taking Boston rates, to the principal destinations in North Carolina, 7 cents per hundred pounds. 100 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG From actual shipping points in New York and Philadelphia territory reduc- tions on molasses and glucocse, in car-loads, on amounts ranging from one and one-half (1%) to five (5) cents per hundred pounds. Glassware rated fourth class in official classification, from actual shipping points in the Pittsburg district to the principal destinations in North Carolina, 11 cents. Glass bottles, car-load, from Glassboro, 1ST. J., to the principal destinations in North Carolina, one (1) cent per hundred pounds. These reductions will be greater in the event the basis we are seeking to estab- lish is made effective. From New York and Philadelphia, crackers, car-load, four cents; canned goods, car-load, four to six cents; soap, from three to five cents, to the principal destinations. Roofing paper from York, Pa., one and one-half (1%) cents; from Downing- ton, Pa., four cents; tin cans from Baltimore, two cents; petroleum and its prod- ucts from Marcus Hook, Pa., reductions ranging from one and one-half (I-V2) to four and one-half (4%) cents; and on strawboard from Pencoyd, Pa., two cents. The measure of these reductions may be affected as hereinbefore indicated with respect to the general adjustment from the interior east by conclusions of our eastern connections with respect to the locals north of the gateways and likewise with respect to the grouping of interior points. We showed you during the conference this week some of our working sheets, on which tentative figures have been made, indicating the effect of the basis that we have proposed to our eastern connections upon class rates and a large number of commodity rates from the eastern ports proper and from the interior, in the event the present relationship between the ports and the interior is maintained. It is practically impossible to include in this letter a comprehensive statement of these figures. Furthermore, as explained to you, these proposed changes have not been sub- mitted to our eastern connections, and it is not in our power to now state to you definitely that they will be established. MISCELLANEOUS It is our purpose to establish a line of class rates from North Carolina terri- tory to Ohio Eiver crossings and St. Louis, observing the following figures as maxima from points in North Carolina to Cincinnati and Louisville: 1 2 3 4 5 6 100 85 72 57 48 39 governed by southern classification. With respect to commodities manufactured at Atlanta, Chattanooga, and Knox- ville, and also manufactured in Nashville, Tenn., it is the purpose of the carriers to observe the Nashville rates as maxima. To Evansville, Cairo and St. Louis we will apply the same differentials westbound as used in making the present eastbound rates. We will undertake to establish by addition to the associated railways excep- tion sheet rates on glue, car-load, 30,000 pounds minimum, on sixth class basis. On inbound traffic from the Pacific coast we will authorize the application south of Virginia cities of the proportional rates established on business from the west, as hereinbefore described. ■REDUCTION OF FREIGHT RATES 101 The car-load rates herein provided on potatoes will apply on the following description : "Vegetables, viz. : Apples, Pears, Beets, Cabbage, Onions, Turnips, and Potatoes, straight or mixed CL (potatoes in straight CL, min. wt., May 1st to October 31st, inclusive, 24,000 lbs., and from November 1st to April 30th, inclusive, 30,000 lbs.)." The car-load rates on grain herein provided will include all classes of grain and the products thereof that are embraced in class D of Southern Classification. We have undertaken a revision of rates on bananas from Mobile to North Carolina destinations in car-loads, involving reductions to representative points as follows: Raleigh and Greensboro, 11 cents; Salisbury, 12 cents; Charlotte, 13 cents ; Asheville, 13 cents per hundred pounds. To points to which the present rates have been depressed by water competition reductions will not be made except to make the rates thereto not higher than to the next intermediate point. Norfolk ajsb "Western Railway, By J. R. Runrsr, Freight Traffic Manager. Southern- Railway Company, By L. Geeen, Freight Traffic Manager. Atlantic Coast Line R. R. Co., By James Menzies, Freight Traffic Manager. Seaboard Air Line Railway, By L. E. Chalenor, Freight Traffic Manager. CO LETTER TO FRED N. TATE, CHAIRMAN JUST FREIGHT RATE ASSOCIATION, TRANSMITTING PROPOSITION OF COMMON CARRIERS State of North Carolina Governor's Office Raleigh Mr. Fred N. Tate, Chairman, September 19, 1913. Just Freight Rate Association, High Point, N. C. Dear Sir: — I hand you herewith a proposition by the common carriers oper- ating in North Carolina. You will please consider the reduction proposed in rates for the transportation of merchandise brought into this State. I hope that, as soon as possible, you will give me your opinion as to the advis- ability of accepting this proposition as an adjustment of these rates for two years. Yours truly, LoCKE ^ Governor. 102 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (8) LETTER TO FREIGHT RATE COMMISSION, TRANSMITTING PROPOSITION OF COMMON CARRIERS State of ]SToeth Carolina Governor's Office Raleigh September 19, 1913. Messrs. E. J. Justice, W. B. Councill, and N". B. Broughton, Freight Rate Commission. Gentlemen : — I hand you herewith a proposition hy the common carriers oper- ating in North Carolina. You will please consider the reduction proposed in rates for the transportation of merchandise brought into this State. I hope that, as soon as possible, you will give me your opinion as to the advis- ability of accepting this proposition as an adjustment of these rates for two years. Yours truly, LocKE Ceaig? Governor. (9) "RATE ADJUSTMENT"— LETTER FROM FREIGHT TRAFFIC MANAGER, SOUTHERN RAILWAY, TO CHAIRMAN CORPORATION COMMISSION {Copy) Southern Railway Company Washington, D. C, September 20, 1913. Rate Adjustment : Rates to and from points in North Carolina. Honorable E. L. Travis, Chairman, North Carolina Corporation Commission, Raleigh, N. C. Dear Sir: — During our conference in Washington September 10th-12th, in- clusive, you gave me some memoranda, prepared by the secretary of the Southern Furniture Manufacturers' Association, relating to the rates on furniture from North Carolina factories to the West and to points in Louisiana, which memoranda I herewith return. During the conference referred to we agreed to take up this question of furni- ture rates on its merits and advise you what, if any, concessions' the carriers could make. I beg to now advise that after consideration of the matter, we submit the fol- lowing conclusion : •REDUCTION OF FREIGHT RATES 103 1. That as to rates on mixed furniture, car-load, classified second class in the Official Classification, from North Carolina factories to Chicago, St. Paul, Minne- apolis, and Duluth, we will make a reduction of ten (10) cents per hundred pounds; and that as to tables, car-loads, classified fourth class in Official Classification, to the same destinations, we will make a reduction of seven (7) cents per hundred pounds. Of course, where rates to points other than Chicago are now made by combina- tion on Chicago, reductions will correspond to the Chicago rate. To Spokane (Washington), Tucson (Arizona), and points taking same rates, we will, with the concurrence of connections, establish same rates as from Virginia Cities on all classes of furniture from North Carolina factories. To the Louisiana points referred to in the attached memoranda, to which the present furniture rates from Worth Carolina points are two (2) cents higher than from the Virginia Cities, we will, with the concurrence of our connections, have the rates placed on the Virginia Cities basis. To other points in Louisiana to which the Virginia Cities rates are now made by water-line routes through the Gulf, it is not believed that the North Carolina rates can be placed on the Virginia Cities basis, because the business would be unprofitable. If, however, any modification can be worked out whereby the North Carolina rates to these Louisiana points may be reduced, we will undertake to do it. The question of these rates to Louisiana points is now on the docket for dis- cussion by the carriers at a meeting to be held in Asheville beginning October 16th, and was listed at the request of Secretary Ryan of the Southern Furniture Manu- facturers' Association. Vou understand that there is no movement of furniture from the Virginia Cities - Yours tvvl J> (Signed) L. Green, Freight Traffic Manager. (10) PROCLAMATION BY THE GOVERNOR, APPOINTING SPECIAL FREIGHT RATE COMMISSION. NOVEMBER 18, 1913 State of North Carolina Executive Department Raxeigh A Proclamation by the Governor The General Assembly of North Carolina at its Special Session, 1913, having enacted a statute entitled "An act to fix and provide machinery for fixing rates to be charged by railroads for transporting freight within the State of North Caro- lina," being chapter 20, Public Laws Extra Session, 1913, and having provided in the said statute for the classification and transportation of freight by railroad companies, and having fixed the rates which such railroad companies, as common carriers, are entitled to charge for the transportation of freight in the State of North Carolina from and after sixty days from the ratification of the said statute, 104 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG and having further provided in the said statute that "should any one or more of the common carriers affected by the rates prescribed in this act make representa- tion to the Governor of the State that the rates herein provided are or would be confiscatory or unreasonable, and the Governor should be of the opinion that such complaint is in good faith and that there is good and sufficient reason for investi- gating the facts, then the Governor shall be and he is hereby empowered to appoint a special commission of not more than three persons to immediately investigate the facts and make report of their findings to him" : And under the provisions of the said statute, the Southern Railway Company Atlantic Coast Line Railroad Company, Seaboard Air Line Railway Company, Norfolk and Western Railway Company, Norfolk Southern Railroad Company. Virginia and Carolina Railroad Company, Atlantic and Western Railroad Com- pany, Carolina and Northwestern Railway Company, Carolina and Yadkin River Railroad Company, Winston-Salem Southbound Railway Company, Bonlee and Western Railway Company, Laurinburg and Southern Railroad Company, Rock- ingham Railroad Company, and Washington and Vandemere Railroad Company, common carriers, operating and doing business in the State of North Carolina and affected by the rates prescribed in the act, having made in writing representation to the Governor of the State that the rates in the said statute provided are or will be confiscatory and unreasonable : And the Governor being of the opinion that such complaints are in good faith and that there is good and sufficient reason for investigating the facts : Now, therefore, I, Locke Craig, Governor of the State of North Carolina, in the exercise of the power conferred upon me by the said statute, do appoint a special commission of three persons to immediately investigate the facts and make report of their findings to me in accordance with the provisions of the statute herein referred to. And in the exercise of such power I do appoint as members of said commission : Michael Hoke Justice, of the County of Rutherford, William Louis Poteat, of the County of Wake, Alfred Augustus Thompson, of the County of Wake. And I do constitute the aforesaid persons the commission provided for. The special commission hereby created will proceed in the exercise of the powers and in the discharge of the duties prescribed by the statute above mentioned. Done at our city of Raleigh, this the eighteenth day of November, in [great the year of our Lord one thousand nine hundred and thirteen, and in the seal] one hundred and thirty-eighth year of our American independence. Locke Craig, By the Governor: Governor. Jno. P. Kerr, Private Secretary. REDUCTION OF FREIGHT RATES 105 (11) PROCLAMATION BY THE GOVERNOR, POSTPONING OPERATION OF ACT OF SPECIAL SESSION 1913 IN REGARD TO FREIGHT RATES, PENDING INVESTIGATION OF SPECIAL FREIGHT RATE COMMISSION. JANUARY 23, 1913 State of North Carolina Executive Department Raxeigh A Proclamation by the Governor The General Assembly of North Carolina at the Special Session, 1913, having enacted a statute entitled "An act to fix and provide machinery for fixing rates to be charged by railroads for transporting freight within the State of North Caro- lina," and having provided in section 4a for the creation of a Special Commission to investigate the facts and make report of their findings to the Governor, and which said Special Commission has been duly created, according to law; And further provided that "Pending investigation and report, the Governor is hereby authorized to suspend the operation of this act for a period of not exceed- ing sixty days upon the recommendation of the Special Commission herein pro- vided for ; "And upon similar recommendation, made in order to allow time for proper investigation, make additional suspension for such time as the said Special Com- mission may recommend as reasonable and necessary for the completion of the investigation" ; And the operation of the act having been suspended for a period of sixty days as provided therein, and the said commission having filed with the Governor the following : January 23, 1914. His Excellency Locke Craig, Governor: The Special Commission ordered to investigate railroad rates has heard testimony for the past ten days, and in that time the railroads have put in their testimony in chief. It became necessary to adjourn the Commission in order to allow the Attorney-General to prepare his testimony and put it in. We have therefore adjourned until Tuesday, February the 24th, at 12 o'clock. We respectfully request your Excellency to postpone the operation of the rates fixed in House Bill 452 until March 20, 1914. Very respectfully, (Signed) M. H. Justice, Chairman. Now, therefore, I, Locke Craig, Governor of the State of North Carolina, in the exercise of the power vested in me by the Legislature, do hereby suspend the operation of the said act until March 20, 1914. 106 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Done at our city of Raleigh, this the twenty-third day of January, in [great the year of our Lord one thousand nine hundred and fourteen, and in the seal] one hundred and thirty-eighth year of our American independence. Locke Ceaig, By the Governor: Governor. Jno. P. Kerr, Private Secretary. (12) PROCLAMATION BY THE GOVERNOR, POSTPONING OPERATION OF ACT OF SPECIAL SESSION 1913 IN REGARD TO FREIGHT RATES, PENDING INVESTIGATION OF SPECIAL FREIGHT RATE COMMISSION. MARCH 20, 1914 To Hon. Locke Craig, Greensboro, N. C. Governor of North Carolina, Raleigh, N. C. Dear Governor : — The Commission by you appointed have continued the hear- ing to April 7, 1914, and request that the act fixing intrastate freight rates be further suspended for sixty days from the expiration of the time of the last sus- pension thereof, in order to complete the hearing. -^ tt t ustice Chairman. State of North Carolina Executive Department Raleigh A Proclamation hy the Governor The General Assembly of North Carolina at the Special Session, 1913, having enacted a statute entitled "An act to fix and provide machinery for fixing rates to be charged by railroads for transporting freight within the State of North Caro- lina," and having provided in section 4a for the creation of a Special Commission to investigate the facts and make report of their findings to the Governor, and which said Special Commission has been duly created according to law; And further provided that "pending investigation and report the Governor is hereby authorized to suspend the operation of this act for a period of not exceeding sixty days upon the recommendation of the Special Commission herein provided for; "And upon similar recommendation, made in order to allow time for proper investigation, make additional suspension for such time as the said Special Com- mission may recommend as reasonable and necessary for the completion of the investigation" ; REDUCTION OF FREIGHT RATES 107 And the operation of the act having been suspended for a period of sixty days as provided therein, and pending further recommendation of the said Special Com- mission having been suspended according to the provisions of that act until March 20, 1914; And the Special Commission, in accordance with the provisions of the said act of the General Assembly having made a recommendation that the said act be sus- pended until the 19th day of May, 1914, for the completion of the investigation: Now, therefore, I, Locke Craig, Governor of the State of North Carolina, in the exercise of the power vested in me by the Legislature, do hereby suspend the oper- ation of the said act until May 19, 1914, being a further suspension of sixty days in accordance with the recommendation of the Special Commission, as will appear by the record. Done at our city of Raleigh, this the twentieth day of March, in the [great year of our Lord one thousand nine hundred and fourteen, and in the one seal] hundred and thirty-eighth year of our American independence. Locke Craig, By the Governor: Governor. Jno. P. Kerb, Private Secretary. (13) PROCLAMATION BY THE GOVERNOR, POSTPONING OPERATION OF ACT OF SPECIAL SESSION 1913 IN REGARD TO FREIGHT RATES, PENDING INVESTIGATION OF SPECIAL FREIGHT RATE COMMISSION. MAY 19, 1914 His Excellency, Locke Craig, Ashevtlle, N. C, May 1, 1914. Governor of North Carolina, Raleigh, N. C. Dear Sir: — The Special Commission to fix freight rates continued the hearing to July 7, 1914. We request that you continue the suspension of the operation of the act of the Legislature to July 20, 1914. M H T Chairman. State of Worth Carolina Executive Department Raleigh A Proclamation by the Governor The General Assembly of North Carolina at the Special Session, 1913, having enacted a statute entitled "An act to fix and provide machinery for fixing rates to be charged by railroads for transporting freight within the State of North Caro- 108 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Una," and having provided in section 4a for the creation of a Special Commission to investigate the facts and make report of their findings to the Governor, and which said Special Commission has been duly created according to law; And further provided that "Pending investigation and report, the Governor is hereby authorized to suspend the operation of this act for a period of not exceed- ing sixty days upon the recommendation of the Special Commission herein pro- vided for ; "And upon similar recommendation, made in order to allow time for proper investigation, make additional suspension for such time as the said Special Com- mission may recommend as reasonable and necessary for the completion of the investigation" ; And the operation of the act having been suspended as provided by law until the 19th day of May, 1914 ; And the Special Commission, in accordance with the provisions of the said act of the General Assembly, having made a recommendation that the said act be sus- pended until the 18th day of July, 1914, for the completion of the investigation: Now, therefore, I, Locke Craig, Governor of the State of North Carolina, in the exercise of the power vested in me by the Legislature, do hereby suspend the operation of the said act until July 18, 1914, being a further suspension of sixty days, in accordance with the recommendation of the Special Commission, as will appear by the record. Done at our city of Raleigh, this the nineteenth day of May, in the [gbeat year of our Lord one thousand nine hundred and fourteen, and in the one seal] hundred and thirty-eighth year of our American independence. Locke Craig, By the Governor: Governor. Jmo. P. Kerb, Private Secretary. (14) PROCLAMATION BY THE GOVERNOR, POSTPONING OPERATION OF ACT OF SPECIAL SESSION OF 1913 IN REGARD TO FREIGHT RATES, PENDING INVESTIGATION OF SPECIAL RATE COMMISSION Asheville, N. C, July 15, 1914. To His Excellency, Locke Craig, Governor, Asheville, N. C. Dear Sir: — As chairman of the Special Freight Rate Commission, and by authority of said Commission, I hereby request you to further suspend the opera- tion of an act, chapter 20, Public Laws of the Extra Session, 1913, until and in- cluding August 10, 1914, at which time the Commission expect to be able to furnish you their report. Very truly yours, M. H. Justice, Chairman. REDUCTION OF FREIGHT RATES 109 State of North Carolina Executive Department Raleigh A Proclamation by the Governor The General Assembly of North Carolina at the Special Session, 1913, having enacted a statute entitled "An act to fix and provide machinery for fixing rates to he charged by railroads for transporting freight within the State of North Caro- lina," and having provided in section 4a for the creation of a Special Commission to investigate the facts and make report of their findings to the Governor, and which said Special Commission has been duly created according to law ; And further provided that "Pending investigation and report," the Governor is hereby authorized to suspend the operation of this act for a period of not exceed- ing sixty days upon the recommendation of the Special Commission herein pro- vided for; "And upon similar recommendation, made in order to allow time for proper investigation, make additional suspension for such time as the said Special Com- mission may recommend as reasonable and necessary for the completion of the investigation" ; And the operation of the act having been suspended as provided by law until the 18th day of July, 1914; And the Special Commission, in accordance with the provisions of the said act of the General Assembly, having made a recommendation that the said act be sus- pended until the 10th day of August, 1914, for the completion of the investigation: Now, therefore, I, Locke Craig, Governor of the State of North Carolina, in the exercise of the power vested in me by the Legislature, do hereby suspend the operation of the said act until August 10, 1914, being a further suspension of twenty-three days, in accordance with the recommendation of the Special Commis- sion, as will appear by the record. Done at our city of Ealeigh, this the fifteenth day of July, in the [great year of our Lord one thousand nine hundred and fourteen, and in the one seal] hundred and thirty-ninth year of our American independence. Locke Craig, By the Governor: Governor. Jno. P. Kerb, Private Secretary. 110 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (15) PROCLAMATION BY THE GOVERNOR, POSTPONING OPERATION OF ACT OF SPECIAL SESSION OF 1913 IN REGARD TO FREIGHT RATES, PENDING INVESTIGATION OF SPECIAL RATE COMMISSION Murphy, 1ST. C, August 10, 1914. How. Locke Craig, Governor. Dear Sir: — Please extend time to August 20, 1914, for putting freight rates into operation under the act of Special Session 1913. Yours truly, M. H. Justice, Chairman. State of Worth Carolina Executive Department Raleigh A Proclamation by the Governor The General Assembly of North Carolina at the Special Session, 1913, having enacted a statute entitled "An act to fix and provide machinery for fixing rates to be charged by railroads for transporting freight within the State of North Caro- lina," and having provided in section 4a for the creation of a Special Commission to investigate the facts and make report of their findings to the Governor, and which said Special Commission has been duly created according to law; And further provided that "Pending investigation and report, the Governor is hereby authorized to suspend the operation of this act for a period of not exceed- ing sixty days upon the recommendation of the Special Commission herein pro- vided for; "And upon similar recommendation made in order to allow time for proper investigation, make additional suspension for such time as the said Special Com- mission may recommend as reasonable and necessary for the completion of the investigation" ; And the operation of the act having been suspended as provided by law until the 10th day of August, 1914; And the Special Commission, in accordance with the provisions of the said act of the General Assembly, having made a recommendation that the said act be sus- pended until the 20th day of August, 1914, for the completion of the investigation: Now, therefore, I, Locke Craig, Governor of the State of North Carolina, in the exercise of the power vested in me by the Legislature, do hereby suspend the operation of the said act until August 20, 1914, being a further suspension of ten days, in accordance with the recommendation of the Special Commission, as will appear by the record. Done at our city of Raleigh, this the tenth day of August, in the [great year of our Lord one thousand nine hundred and fourteen, and in the one seal] hundred and thirty-ninth year of our American independence. Locke Craig, By the Governor: Governor. Jno. P. Kerr, Private Secretary. REDUCTION OF FREIGHT RATES 111 (16) REPORT OF SPECIAL FREIGHT RATE COMMISSION TRANSMITTED TO CORPORATION COMMISSION State of Worth Carolina Governor's Office Raxeiqh Worth Carolina Corporation Commission, Raleigh, N. C. Gentlemen: — I hereby deliver to you and file with you the report of the Special Freight Rate Commission, which report was made in accordance with chapter 20 of the Public Laws of the Extra Session of 1913. I attach hereto the said report, together with the schedule of rates, and my proclamation promul- gating the same. Yours truly, LocKE Qraig, Governor. (17) REPORT OF SPECIAL RATE COMMISSION. AUGUST 13, 1914 To His Excellency, Governor Locke Craig, Raleigh, North Carolina. Sir: — The Co mm ission appointed by your Excellency under the terms of the act of the General Assembly of 1913, entitled "An act to fix and provide machin- ery for fixing rates to be charged by railroads transporting freight within the State of Worth Carolina," and ratified October 13, 1913, has the honor to present the following report : The first hearing of the Commission was held in Raleigh, January 12th, and extended to January 22d. The second hearing, likewise held in Raleigh, covered the period from April 7th to April 14th. The third and last hearing was held in Asheville from July 7th to July 16th. The executive sessions of the Commission were begun on July 20th. At the first hearing the Commission announced that its policy would be to welcome light from any quarter. Accordingly, testimony in great detail by the principal public carriers, by boards of trade, by various indus- trial associations, and by individuals, has been presented and freely admitted to the record. In performing the duties assigned to it the Commission has followed the gen- eral principles of the act which authorized its appointment. The principle of a percentage relationship of the classes recognized in the act is indorsed by the Com- mission, and, as far as is now practical, it has been employed in the schedule of rates here announced. The Commission has not undertaken to fix local or joint-haul rates on railroads less than seventy-five miles in length, because section 6 of the act indicates that the General Assembly intended to refer these rates to a permanent commission. Accordingly, the rates here reported apply to all railroad companies which own, operate, control, or maintain seventy-five or more miles of railroad within Worth 112 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Carolina. The shorter lines are so numerous and their freight rates so divergent that this Commission respectfully refers the fixing of the rates on these roads to the North Carolina Corporation Commission, to which under the act they may at any time appeal; and it is recommended that the Corporation Commission fix for these shorter roads as near as may be uniform rates on a fair relation with those here fixed for the longer roads ; that the local and joint-haul rates now in force on these short roads be maintained until the Corporation Commission shall have opportunity to fix and readjust them; and that the Corporation Commission deal with this matter at the earliest possible date. This Commission adopts the Southern Classification, and the rates here fixed and reported are subject to that classification, except where lower ratings are or may be published by the North Carolina Corporation Co m mission, in which case the lower ratings shall prevail. The rates in the attached schedule are declared to be reasonable maximum rates; any rates which are now lower are continued in effect, except that, in such isolated cases as may occur, where an advance of not more than one cent in a particular class will bring the existing lower rate up to the rate here prescribed, such advance is allowed in the interest of uniformity. Existing rates on commodities not mentioned in the attached schedule are con- tinued in effect. When rates are not shown for the exact distance, the charge shall be the rate prescribed for the nearest distance. In cases where the haul is equidistant from specified rate distances, the charge shall be that for the next higher distance. In case one railroad company has two or more routes between given points, rates shall be based on the shortest route. On joint hauls the lines handling the traffic shall base their rates upon the shortest practicable route having physical connection. For joint hauls over two or more independently controlled railroads under the management of companies operating seventy-five or more miles of railroad within this State, add the following to the straight mileage rates for the total combined distance: . ,,.„ , Per 100 Pounds Class— 123456ABCD Other Classes and Commodities. 5433222222 lc. In the absence of an agreed basis of division between roads participating in a joint haul, locals shall be used as factors in dividing, after first deducting cost of transfer, if any, at interchange point. The minimum charge on small shipments shall be for actual weight at the tariff rate, but not less than 25 cents for a haul over one road, or 30 cents for a joint haul over two roads, or 40 cents for joint haul over three or more roads. Class E articles are here rated fifth class. Class H articles are here rated fourth class. Flour in barrels, heretofore rated Class F, is here rated double Class C per barrel; flour in half barrels, same as Class C. Class M articles are here rated two-thirds of Class A. All which, together with the attached schedule of rates, is submitted to your Excellency with the greatest deference and respect. (Signed) M. H. Justice, Chairman, Alf. A. Thompson, W. L. Poteat, Commissioners. ■REDUCTION OF FREIGHT RATES 113 GENERAL, RULES 1. These rates are subject to Southern Classification, except where lower ratings are or may be published by the North Carolina Corporation Commission. 2. When rates are not shown for the exact distance, the charge shall not exceed the rate for the nearest distance. In cases where the haul is equidistant the charge shall be that for the next higher distance. 3. Where one railroad company has two or more routes between given points, the rates shall be based on the shortest route. On joint hauls, the lines handling the traffic must base their rates upon the shortest practicable route having physical connection. 4. For joint hauls over two or more independently controlled railroads under the management of companies operating seventy-five or more miles of railroads within this State, add the following to the straight mileage rates for the combined total distance.: Per 100 Pounds Class 123456 A BCD Other Classes and Commodities. 5433222222 lc. In the absence of an agreed basis of division between roads participating in a joint haul, locals shall be used as factors in dividing, after first deducting cost of transfer, if any, at interchange point. 5. The minimum charge on small shipments shall be for actual weight at the tariff rate, but not less than 25 cents for a haul over one road, or 30 cents for a joint haul over two roads, or 40 cents for joint haul over three or more roads. Existing rates on commodities not mentioned in this schedule are continued in effect. Class E articles are here rated fifth class; Class H articles are here rated fourth class. Flour in barrels, now rated Class F, is here rated double Class C per barrel; flour in half barrels, same as Class C. 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AUGUST 13, 1914 State of North Carolina Executive Department Raleigh A Proclamation by the Governor Whereas the Extra Session of the General Assembly of 1913 did enact a statute "To fix and provide machinery for fixing rates to be charged by railroads for transporting freight within the State of North Carolina," which statute is chapter 20 of the Public Laws of the Extra Session of 1913 ; and Whereas section 4a of said statute provides: "Should any one or more of the common carriers affected by the rates prescribed in this act make representation to the Governor of the State that the rates herein provided are or would be confis- catory or unreasonable, and the Governor should be of opinion that such complaint is in good faith, and that there is good and sufficient reason for investigating the facts, then the Governor shall be and he is hereby empowered to appoint a Special Commission of not more than three persons to immediately investigate the facts, and make report of their findings to him. Pending such investigation and report, the Governor is hereby authorized to suspend the operation of this act for a period of not exceeding sixty days upon the recommendation of the Special Commission herein provided for; and upon similar recommendation made, in order to allow time for proper investigation, to make additional suspension for such time as the said Special Commission may recommend as reasonable and necessary for the com- pletion of the investigation" ; and Whereas the common carriers affected by the rates prescribed in the act did make representations to the Governor of the State that the rates provided in the act are and would be confiscatory and unreasonable, and the Governor was of opinion that such complaint was in good faith, and that there was good and suffi- cient reason for investigating the facts ; and Whereas, in the exercise of the power conferred by the statute, the Governor did appoint a Special Commission of three persons, to wit, Michael Hoke Justice, William Louis Poteat, and Alfred A. Thompson, to immediately investigate the facts and make report of their findings to him ; and did from time to time suspend the operation of the said statute to allow time for proper investigation; and Whereas the said Special Commission, as directed and empowered by the said statute, has made report to the Governor of their findings, and has fixed the rates to be charged by railroads for the transportation of freight within the State of North Carolina, which said report and schedule of rates is hereto attached, and made part of this proclamation : Now, therefore, I, Locke Craig, Governor of North Carolina, do hereby pro- claim that the rates so fixed by the said Special Commission are the maximum rates to be charged by the railroads for the transportation of freight within the State of North Carolina, whenever the said statute shall become operative by the terms thereof; and in accordance with the power conferred upon me by the said REDUCTION OF FREIGHT RATES 117 statute, I do hereby promulgate the said report and the said rates fixed therein, and do hereby file the same with the Corporation Commission of the State of North Carolina, to become effective and operative from and after sixty days from this date, as provided by the said statute. Done at our city of Raleigh, this the thirteenth day of August, in the [great year of our Lord one thousand nine hundred and fourteen, and in the one seal] hundred and thirty-ninth year of our American independence. Locke Craig, By the Governor: Governor. Jno. P. Kerr, Private Secretary. (19) CERTIFICATE SPECIAL FREIGHT RATE COMMISSION IN REGARD TO LUMBER SCHEDULE His Excellency, Locke Craig, September 11, 1914. Governor of North Carolina. Dear Sir : — We hereby certify that the Freight Rate Commission in consider- ing the lumber schedules settled upon 24,000 pounds as the minimum weight on a car of lumber, but it seems that by some mistake 30,000 pounds was written in our report to you heretofore made. Therefore we ask that you certify the correct minimum weight, to wit, 24,000 pounds, to the Corporation Commission, to the end that it may amend the record accordingly. Very truly yours, M. H. Justice, Chairman, Alf. A. Thompson, W. L. Poteat, Members of Commission. (20) LETTER OF A. A. THOMPSON TO ASSISTANT ATTORNEY-GENERAL, ATTACHED TO CERTIFICATE OF SPECIAL FREIGHT RATE COMMISSION Mr. T. H. Calvert, Raleigh, 1ST. O, September 21, 1914. Assistant Attorney-General, Raleigh, N. C. Dear Sir : — Replying to your letter of September 19th. I sign and return the inclosure. Let me suggest, however, that you confer with the Corporation Commission before undertaking to correct the error. I do not think any great hardship will result, even if the correction is not made. The rates probably have been sent to the railroads, and great confusion might result in trying to correct the error referred to. Very truly yours, ^^ A _ ThompsoN- 118 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (21) SOUTHERN RAILWAY COMPANY, BY ALFRED P. THOM, TRANSMIT- TING PAPER SIGNED BY COMMON CARRIERS RELATING TO RATES IN EFFECT ACCORDING TO PROCLAMA- TION BY THE GOVERNOR Southern Railway Company Hon. Locke Craig, Washington, D. C, October 6, 1914. Governor of North Carolina, Raleigh, N. C. My dear Governor: — At the request of the various railroad companies doing business as common carriers in the State of North Carolina, I beg to hand you herewith a paper signed by them relating to the intrastate rates which, according to the proclamation of your Excellency, are to be put into effect on the 13th instant. With kind regards and best wishes, I am, Sincerely yours, Alfred P. Thom. Hon. Locke Craig, Governor of North Carolina: Sik: — The undersigned railroad companies doing business as common carriers in the State of North Carolina, have had their attention called to the proclamation of your Excellency, dated August 13, 1914, in which you pro- mulgate the intrastate freight rates fixed by the Honorable Special Com- mission appointed by your Excellency under an act of the General Assembly of North Carolina entitled "An act to fix and to provide machinery for fix- ing rates to be charged by railroads for transporting freight within the State of North Carolina," ratified the 13th day of October, 1913. We respectfully notify your Excellency that these rates will be put into effect by us on the day on which, by the terms of your proclamation, they become effective. In doing this we desire to express our appreciation of the painstaking care which the Special Commission exhibited in the performance of its diffi- cult task and of the uniform courtesy and consideration with which, in the course of its investigation, it treated all parties before it. While we consider it proper, under the circumstances, to put these rates into effect without legal controversy, we deem it our duty, not only to the owners of the properties but to the public vitally dependent upon these properties for efficient service, to call your Excellency's attention to our belief that the rates mentioned are lower than are reasonable for the service to be rendered, and to the fact that they involve substantial reductions in the revenues of these carriers which they are in no position to stand, and it is claimed by many and there is danger to apprehend that they create serious and unjustified discriminations against interstate traffic, which is subject to rates in and of themselves certainly no higher than is reasonable and just. Your Excellency is aware that the "Act to regulate commerce," enacted by Congress, makes it unlawful for any common carrier subject to that act, as all the undersigned carriers are, to make any undue discrimination against any locality or description of traffic, that penalties are provided for dis- obedience to this requirement of law, and that an order of a State commis- sion or the mandate of a State statute will not be accepted as an excuse. Under these circumstances, these carriers, for their own protection against violations of law, are advised that it is incumbent upon them to lay the facts REDUCTION OF FREIGHT RATES 119 relating to such apparent discrimination before the Interstate Commerce Commission for such action as that Commission will consider it proper under the law to take. These carriers further desire to emphasize the fact, above mentioned, that they are in no position to stand the reductions in their revenues caused by the rates fixed by the Special Commission. This consideration has become even more substantial and serious since the hearings before the Commission were closed. Since that time a war of unparalleled magnitude has broken out in Europe which has seriously affected the business of America, and especially of the South. While the unfortunate consequences have come upon all departments of business, the transportation industry is as essen- tial to the general welfare as is government itself, and must in the public interest be sustained. The public welfare will not permit the revenues of the carriers to be reduced below the level of efficiency. In sustaining the efficiency of the carriers the business public is sustaining itself and is creat- ing an essential condition precedent to its own prosperity. In addition to this controlling consideration, it has likewise transpired, since the close of the hearings, that a most serious reduction in the revenues of these carriers, in addition to that which a reduction of these rates will involve, has actually taken place. "While, therefore, in deference to the sentiment and to the authority of North Carolina, these carriers have determined to put into effect the rates fixed by the Honorable Special Commission and promulgated by your Excel- lency, we do so under respectful protest, and shall ask of your Excellency and of the other appropriate authorities of the State such relief as may be just and reasonable under the circumstances. Atlantic Coast Line Railroad Company, By J. R. Kenly, President. Carolina, Clinchfield and Ohio Railway Company, By Mack N. Patten, President. Carolina and Northwestern Railway, By W. A. Barber, President. Norfolk Southern Railroad Company, By J. H. Young, President. Norfolk and Western Railway Company, By L. E. Johnson, President. Seaboard Air Line Railway, By W. J. Habahan, President. Southern Railway Company, By Fairfax Harrison, President. Winston-Salem Southbound Railway Company, By H. E. Fries, President. Washington, D. C, October 3, 1914. State of North Carolina Governor's Office Kaleigh Col. Alfred P. Thom, October 8, 1914. 1S00 Pennsylvania Avenue, Washington, D. C. Mt dear Colonel Thom : — Your letter of October 6th, with the communica- tion of the several railroads interested, has been received. I am very much grati- fied to know that the railroads have accepted the schedule of rates which was fixed 120 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG by the Special Commission. I hope that these rates when put into effect will be found remunerative and satisfactory to the carriers. I hope that I shall be at all times ready to cooperate in a spirit of justice with the railroads for their own prosperity and for the building up of the State. In this I feel sure that the people of North Carolina will concur. I wish to express my thanks to you, and to the other representatives of the carriers, for the uniform courtesy with which you have dealt with the representa- tives of the State, and for the spirit of fairness manifested by you in dealing with this important and difficult subject. With the highest regards, Yours sincerely, Locke Ceaig, Governor. (22) STATEMENT OF THE GOVERNOR TO THE PRESS. JANUARY 1, 1916 Governor Craig stated this morning that he was surprised to see a statement in the newspapers, coming from Washington, that certain freight rates for Worth Carolina and other Southern States are to be increased on January 1st. "From the statement," he said, "this increase may be no insignificant matter." "Recently," continued he, "I have seen several short notices in the newspapers that there was some proceeding on foot to change freight rates in the South Atlan- tic States. These notices that I have seen have been vague, and did not make upon me the impression that any change was about to be made by which the people of this State would be seriously affected. I have had no notice whatever of any such proceeding, except what I have picked up in the newspapers. If any explicit statement has appeared in any of the papers to the effect that freight rates would be substantially changed, it has escaped me. I have instituted an inquiry to inform myself fully on this subject. As soon as I get the facts, the public shall know them." (23) STATEMENT OF THE GOVERNOR TO THE PRESS. JANUARY 1, 1916 Governor Craig said: "Since making the above statement I have received from Mr. Maxwell, the clerk of the Corporation Commission, the following letter: State op North Carolina Corporation Commission Raleigh January 1, 1916. Hon. Locke Craig, Governor, Raleigh, N. O.l Sir: — Knowing your great interest in the matter of a fair and equitable adjustment of freight rates into and out of this State, it is thought proper to bring to your attention the new schedule of rates from practically all points of origin in this State to all points in Southeastern territory (includ- REDUCTION OF FREIGHT RATES 121 ing Mississippi Valley territory) which became effective today by order of the Interstate Commerce Commission made on yesterday. This new schedule of rates was worked out by the Southeastern railway lines under order of the Interstate Commerce Commission of April 13, 1914, and covers a complete revision of all class rates from the north, east, and west to the Southeastern territory. It required more than eighteen months time for their compilation by a large corps of rate experts, and they were filed about December 1st, to become effective January 1st. A copy of the tariff did not reach the Corporation Commission till about December 10th, and obviously there was not sufficient time to analyze the new tariffs and present adequately to the Interstate Commerce Commission, and get consid- eration of, such objections as could properly be presented in behalf of the interests of the North Carolina shippers; so the Corporation Commission filed a general protest against the proposed rates, and asked that the effective date of the new tariffs be postponed until there could be an adequate investi- gation of the new rates, and the railroads required to justify the substantial advances proposed. Protests were made by many industrial centers in other States, but as indicated by the press reports this morning from Washington, the Commission has declined to suspend the new tariffs, and its order makes the following statement: "The fact that the Commission has not suspended the new schedule carries with it no approval, and this action is subject to the duty of the Commission to investigate the lawfulness and reason- ableness of any schedule which may be made the subject of formal complaint." The new schedule of rates are made ostensibly to conform to rules laid down by the Interstate Commerce Commission with respect to long and short haul observance, but in the opinion of many rate experts they have in doing so made provision for a substantial increase in revenue. In so far as there is a key to the rate structure in the Southeast, it may be said that the rates to the Southeastern gateways, like Atlanta, Bir- mingham, and Chattanooga, are the keys. Rates to these points have hereto- fore been substantially less than to contiguous and intermediate points. In the new rate structure this is changed in every instance by a substantial raise in the rates to the gateway points and in some cases by a reduction in rates to intermediate local stations. The rate from Virginia cities to Atlanta is increased from 84 cents to $1; to Birmingham from 87 cents to ?1.07; to Chattanooga from 84 cents to $1.07. These increases in rates apply generally from North Carolina points of origin, and it may be said that like increases apply generally from all points north, east, and west with which our pro- ducers compete, though in some cases increases from western points are not as great. So far as the measure o\f the rates as a whole is concerned, it may be said that our interest is common with that of competitors in the north, east, and west; but the feature of it that has most interested the Commission is the hope that in this general rearrangement of rates, and particularly inas- much as it is apparent that a general average increase in the measure of ■the rates is being made, there may be a proper adjustment of our rates with relation to the rates from the Virginia cities. Our rate basis out- bound to the Southeast has heretofore been the same as the rates from the Virginia cities, an average of 189 miles greater distance. This principle is recognized in the new adjustment, but only to the extent of a differential of seven cents first class under the rate from Virginia cities, and only to a limited territory, which includes Atlanta. This differential is not nearly as great as the actual cost of the transportation for the greater distance 122 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG from the Virginia cities would justify, and a proper differential should apply to all interior points in the Southeastern territory. Our manufac- turers and producers are subjected to a high rate over the Virginia cities on all freight inbound from the north and west, and should at least have the benefit of such difference under the Virginia cities as the shorter dis- tance would reasonably give them in rates outbound to the south. The bulk of the traffic that has heretofore moved from North Carolina outbound to the southeast has moved under commodity tariffs which are not repealed by the new class tariffs. This statement applies to furniture, cotton goods, bagging, tobacco, etc. It is noted, however, that the order of the Interstate Commerce Commission on yesterday requires the railroads to revise these commodity tariffs within ninety days, so that an increase in these rates in line with the increased class rates may be anticipated. None of the increases apply to rates inbound from the West which were the subject of compromise effective June 20, 1914. Very respectfully, A. J. Maxwell, Clerk. Continuing, the Governor said : "It seems to me that there is no good reason for an increase of freight rates at this time in the South. There is unprecedented industrial activity and develop- ment. The depression that prevailed in the summer and fall of 1914 has been succeeded by increasing prosperity in nearly all departments of business. The rail- roads participate in the general improvement. The report of Mr. Fairfax Harri- son, president of the Southern Railway Company, to the stockholders for the year ending June 30, 1915, shows that his company is in a good, healthy condition. By able management under existing rates it triumphed over adversity and 'vicissitudes of this year of need' and 'fought a losing fight and won.' jSTot all enterprises have been so fortunate. "The affairs of the Seaboard Air Line have been managed with such skill, and its condition is so good that it voluntarily abandoned its suit against the Corpora- tion Commission for the reduction of the appraisement for taxation made by the Commission. It could not make a showing that would give it a standing in a court of equity. At least, it did not make the showing. And it did not desire to disturb an amicable relation. "I assume that the other transportation lines in the South are in a condition that is about as satisfactory. "Besides, in this rate schedule promulgated by the Interstate Commerce Com- mission there is an inequity that in my opinion is indefensible. All freight orig- inating in North Carolina and going south, except to a 'limited territory which includes Atlanta,' is to bear the same tariff as the same class of freight originating in the Virginia cities, although these Virginia cities are on an average 189 miles farther from these southern markets than the North Carolina points. And on freight going to 'this limited territory,' including Atlanta, we get a rate only 7 cents lower on first-class freight than the Virginia cities. To illustrate: the rate on furniture from Lynchburg, Richmond, and Roanoke to Atlanta under the new schedule is $1 per hundred pounds; from High Point to Atlanta it is 93 cents a hundred pounds. From High Point and other North Carolina towns to all other southern points, the rate is $1 per hundred pounds, the same as from Virginia cities. This is a decided increase over the rates heretofore existing. "A little more than two years ago we came to an agreement with the railroads as to rates from the North and Northwest on freight brought into this State. REDUCTION OF FREIGHT RATES 123 These rates agreed upon are higher than the rates charged Virginia cities, although the freight is hauled through North Carolina towns to these cities in Virginia. In consideration of all the circumstances and difficulties, this matter was adjusted. While North Carolina did not get all to which she was entitled, we accepted the situation. Now it seems we are to he charged on freight going south the same as the Virginia cities are charged, although the freight is hauled from Virginia through North Carolina to these southern points. On such tariffs North Carolina would 'get it in the neck' both going and coming. "This schedule that goes into effect today is not a final adjudication, and it should never be. "The commodity rates on freight going south, it seems, have not yet been changed, and will not be for ninety days. "One of the most desirable considerations of the settlement of the freight rate question two years ago was the establishment of good feeling between the railroads and the people of the State. I would deeply regret that this good feeling and mutual desire for each others' welfare, and willingness to cooperate with each other, should be disturbed. I cannot believe that the men who are now managing the carriers that operate in this State, who have heretofore manifested an earnest desire for an equitable adjustment of all differences, will contend that freight originating in North Carolina going south shall bear the same tariff as similar freight originating in Virginia — nearly two hundred miles farther from destina- tion." (24) LETTER AND STATEMENT OF PRESIDENT FAIRFAX HARRISON OF THE SOUTHERN RAILWAY, JANUARY 4, 1916. LETTER FROM THE GOVERNOR IN REPLY THERETO Southern Railway Company Office of the President Washington, D. C, January 4, 1916. The Hon. Locke Craig, Governor, Raleigh, N. C. Dear. Governor Craig : — I have read with interest your statement published in the Raleigh News and Observer newspaper yesterday about the new interstate freight tariffs which went into effect in the South on January 1. These tariffs are revolutionary, but they are not of the seeking of the railroads. The historical development of freight rates in the South has been on the so-called basing points ever since the first through railroads were built. They violated the long and short haul principle when that came to be formulated, but under them the South has had its amazing industrial development during the past twenty years, and I have never been convinced that they were worthy of all the condemna- tion which has been visited upon them politically. By the act of Congress as amended June 18, 1910, it was finally determined that the long and short haul principle should be applied and, after full investigation, the Interstate Commerce Commission ordered the railroads of the South to apply it. For your information, 124 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG I enclose a copy of their opinion of April 13, 1914. Loyally, but with many mis- givings, the railroads went to work to carry this judgment into effect. The further they got into it the more disturbances of existing conditions they realized would result. Accordingly, under date of January 25, 1915, the presidents of the prin- cipal lines in the South made public a warning on the subject which was widely distributed but little heeded. I am informed that a copy was sent to you, but doubtless did not come to your attention. I inclose another copy herewith. When at last, after eighteen months bard work, the new tariffs were prepared and filed, it became apparent that the basing point cities of the South had just awakened to the situation. At the last minute they brought strong political pres- sure upon the Interstate Commerce Commission to suspend the tariffs ; but that body, under the spur of the act of Congress, refused to interfere. Speaking for one railroad in the South, I was content to try to work out our salvation under the old rate structure, though I realized that we would doubtless have in time to ask for increased rates to meet the steadily increasing expenses, many of which are not under our control. The revised tariffs were not intended to increase revenues, though my own judgment is that the immediate effect will be the equivalent of a moderate increase, as merchandise will probably continue to move to the old basing point cities which take the higher rates until the inter- mediate cities, which in many instances get lower rates, can realize their oppor- tunities as distributing and jobbing points. Some of my colleagues do not agree with me on this. After all, it is a matter of opinion, and only experience can show what the result may be in the matter of railroad revenue. The real benefit to the railroads of the new tariffs, when business in the South has become adjusted to them, lies in the removal of the long-standing complaint that the basing point cities have had special privileges in their depressed rates and that the railroads have discriminated against the intermediate cities which have grown to importance in recent years. I look for comfort in this, though I do not venture to predict what may be the economic effect of this application of a political theory to a practical business situation. My main purpose in writing to you is to invite your realization that we have been put, without our own volition, between two mill- stones. I was somewhat disturbed by your apparent understanding that the readjust- ment discriminates against North Carolina. I knew that was not the intention, and I am glad to be advised by our traffic officers that it is not the fact. When the tariffs are studied, I have no doubt that you will be advised that North Caro- lina's position with respect to Southeastern and Mississippi Valley territory is, on the whole, bettered by this readjustment, which recognizes in all cases Virginia cities rates as maxima and to a portion of the territory differentials under Virginia cities, which North Carolina has not heretofore enjoyed. To illustrate, prior to January 1 the first-class rate from Richmond and from Greensboro to Atlanta was 84 cents. Effective January 1, the Richmond rate was advanced 16 cents and the rate from Greensboro increased 9 cents. Furthermore, when revision is completed, rates from the Eastern seaboard by water and rail to North Carolina destinations will include marine insurance, which is not the case now. All of this was recently explained to Chairman Travis. Believe me, with respect and esteem, Yours faithfully, Fairfax Harrison, President. REDUCTION OF FREIGHT RATES 125 To the People Served by the Railroads of the South: An order of the Interstate Commerce Commission, pursuant to require- ments of Federal law, compels a general revision of Southern freight rates. It is proper that the people of the South should be informed as to the reasons for this revision and the principles upon which it is being made. Excepting the Norfolk and "Western, Chespeake and Ohio, and Virginian Railways, which lie in Official Classification territory, the railroads of the Southeast receive virtually no part of the 5 per cent increase in rates acquiesced in by the Interstate Commerce Commission. While the need of the carriers of the South for increased revenue is certainly no less than is that of the Northern and Eastern roads, that need is in no way related to the revision of rates now in progress, which arises solely from the necessity of more nearly conforming to the so-called "long and short haul clause" of the law as amended in 1910, and as now construed by the Interstate Com- merce Commission. The original Act to Regulate Commerce forbade the making of lower rates for a -longer than for a shorter distance within the same line or route under substantially the same circumstances and conditions. The carriers were free to meet competition as they found it, and were required to answer only upon complaint as to the reasonableness of their acts. The amendment of 1910 deprived the carriers of the right to initiate de- partures from the long and short haul requirement, and they may no longer meet competition as they find it if the long and short haul requirement of the law is involved, unless they can first obtain the approval of the Inter- state Commerce Commission. They were furthermore required, by this change in the law, to apply to the Commission for authority to continue in force rates existing at the time of its passage which contravened the long and short haul principle. The existing rate structure of the South is not the creation of traffic man- agers of this generation. It is an inheritance from those who built the roads, and finds its explanation largely in the geography of the South, and in a public policy which encouraged its creation. The changes now in progress are not of the carriers' choice. Water competition, the most important factor in bringing about depart- ure from the long and short haul principle of the law, has been peculiarly influential on the rate adjustments of the South, surrounded as it is o > -^^^ c > Raleigh, N. C. Deae Sir : — I am glad to report that every one of the fifteen men released from our convict camps to go home Christmas returned on time. I did not release all the so-called trusties, as we had some men who could be trusted only when near a steward or guard, but I let all our honor roll men go. By not letting those others go put us in bad with them, but there was no help for it. I suggest that nest time you specify all honor roll men and let the various counties know it in advance. They will then be ready, and the men themselves will know why the distinction. Yours very truly, C. M. Millee, Wake County Highway Engineer. Hon. Locke Ceaig, Governor, Salisbttet, K C, December 29, 1915. Raleigh, N. C. Dear Sir : — Below is a list of prisoners allowed to spend Friday, Saturday and Sunday at home. I beg to report that they all came back as ordered. Horace Furr, D. L. Brown, Charles Caldwell, Paul Goode, Henry Click, Isaiah Reynolds, "Will Burton, "Wade Simmons, Clarence Knox, Paul Harris, Paul Bar- ber, Andrew Kewkirk, Charles Baker, Jim Wood, Will Chunn. The first two are white, the others are colored. Yours very truly, J. H. Keider, Sheriff. 180 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Roxboro, N. C, December 31, 1915. To His Excellency, Locke Craig, Governor, Raleigh, N. C. Sir: — I beg to report that the only prisoner in Person County jail coming within the terms of your order was D. M. Andrews, serving a sentence for violating the prohibition laws, and I, of course, released him for the three days specified. He returned to prison promptly. Respectfully, K g _ Th0MPS0N; Sheriff , Hon. Locke Craig, Governor, Reidsville, K C, December 31, 1915. Raleigh, N. C. Dear Sir : — Under your general parole of December 22, I wish to advise that we have three camps in this county. We have prisoners from Surry, Stokes, Cas- well and Wilkes. These prisoners did not have the means to go home. We gave all three days rest, and extra good meals. The camp foreman tells me they all enjoyed Christmas. With the compliments of the season. Yours to command, Francis B. Kemp, Sheriff. Governor Locke Craig, Wilson, ~N. C, December 30, 1915. Raleigh, N. C. My dear Sir: — In reply to your proclamation of December 22, I have the pleasure to report that we have two convict camps in this county, superintended by John Herndon and Jack Owens, respectively. They report to me that from their camps five men, all colored, were given the pleasures you so generously ex- tended, and returned in accordance on time, expressing happiness at such favors, to wit, that Governor Craig might always be Governor if they were unfortunate enough to be on the county roads in North Carolina. As for the jail, Judge Bond had just adjourned court, which accounts for my not being able to extend and favor your proclamation thereto, Yours sincerely, Howakd M. Rowe, Sheriff. Fuquay Springs, 1ST. C, January 7, 1916. To His Excellency, Locke Craig, Governor, Raleigh, N. C. My dear Sir: — I have the honor to report to you upon the conduct of three prisoners (trusties) whom I allowed to go home to spend the three holidays as per your proclamation. The names of the prisoners follow: Joe Bullock, sentenced from Vance County, 12 months. Ed Jones, sentenced from Vance County, 5 months. Frank Hayes, sentenced from Vance County, 6 months. All returned on time. The conduct of Joe Bullock, I think, deserves special mention and notice. He left his home to return to eamp on Monday morning, leaving his baby brother, 14 years old, a corpse of only an hour. I asked him why he did not wire me for permission to stay to the funeral. He replied that his word and honor were pledged to me and he was determined to keep it. This is only a small road camp. I handled prisoners for several years in Georgia, and my experience is that a very small per cent will deceive you if put upon honor. I keep one to two guards, as much for avoiding adverse criticism as to hold the prisoners. I treat them well, feed them well, and work them well. I do not allow any abusive or profane language used toward them, which they seem to appreciate. Yours very truly, ^ A. Sexton. PAROLE OF STATE'S PRISONERS 181 (3) PAROLE OF STATE'S PRISONERS, CHRISTMAS, 1916 State of !N"orth Carolina Executive Department Raleigh December 20, 1916. To the Superintendent of the State's Prison, The Sheriffs of the Counties of North Carolina, and To the Officers in charge of Convict Camps and Forces. Greetings : — You are hereby authorized and requested to allow each and every prisoner who is and has been a trusty for ten days prior to this date to return to his home or other place chosen by him, and to remain away from the camp or prison during Sunday, Monday, and Tuesday, the 24th, 25th, and 26th of December, pro- vided each trusty pledge his honor and satisfy the officer in charge that he will return by twelve o'clock on Wednesday, December the 27th. You are further authorized and requested to give to all of the prisoners in your charge a holiday on Sunday, Monday, and Tuesday, the 24th, 25th, and 26th of December. You are furthermore directed and requested to report to me on or before the first day of January your action in accordance herewith and the results, and the name and conduct of each prisoner paroled. A request and authority similar to this was issued in December, 1915. It was universally observed by sheriffs and officers. The prisoners that were paroled kept their promise with scrupulous fidelity, and showed that they were worthy of the confidence and trust. T „„ n Locke (Jraig, Governor. (4) REPORTS OF SHERIFFS ON RESULTS OF PAROLE Note. — Up to the time of going to press not all the sheriffs had been heard from, but the letters received indicate that a large number of prisoners were paroled — probably a good many more than were paroled last year — and that three of them have not returned according to promise. The State's Prison Governor Locke Craig, Raleigh, E". C, December 29, 1916. Raleigh, N. C. Dear Governor :— In accordance with the order contained in your proclama- tion paroling prisoners for three days during the Christmas holidays, including Christmas day, I have the honor to make to you the following report: There were all told 67 State prisoners paroled according to your request. I have now received reports from the supervisors at all points in which State prison- ers are employed, and beg to say that two only out of the total number paroled 182 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG violated the conditions and terms of their parole. These were white men who were released from the State farm by Capt. C. N". Christian. They are Wallace Brad- ley, from Swain County, under a sentence of sixteen years for murder in the second degree, who was received here in 1912, and Littleton Bright, from Warren County, serving a sentence of fifteen years for murder in the second degree, who was received here in 1913. These two prisoners had not returned on December 28th, and no word had been received from them by Mr. Christian, and he had no reason to believe that they would return and did not expect them to do so. We will, of course, treat these two prisoners as escaped convicts and offer for them the usual reward for escaped prisoners, and use our best efforts to rearrest and return them to the prison. Without any exception the prisoners who were paroled seemed to greatly appre- ciate the privilege, and many of them have expressed their thanks to you for their holiday liberty. I am, Yours very truly, J. S. Mann, Superintendent. Hon. Locke Craig, Governor, Burlington, N. C, December 30, 1916. Raleigh, N. C. Dear Governor Craig : — We had the following convicts off for Christmas : Lee Hilliard (white), Lawrence Sutton (white), Ab Causey (white), William Smith (white), L. C. Crater (colored), Chot Holt (colored), Morris Graves (col- ored). Live came back all right. Chot Holt was arrested for being drunk in the street. One man not well, hasn't come; but his wife came and said he would be back as soon as he was able. He lives near stockade. Bespectfully submitted, G. A. Fogleman, Superintendent of Roads. Wadesboro, 1ST. C, December 29, 1916. Honorable Governor : — I will tell you about my prisoners : T. J. Flake (white), Mood Turner (white), Milt Tilman (colored), Archie Davis (colored), Sam Rowie (colored), Will Turner (colored), Will Crump (colored), Wiley Smith (colored), Brack Gaddy (colored), Will Gaddy (colored), Frank Little (colored), Lonnie Home (colored), Raymond Bennett (colored). Every one came back. Yours truly, M. B. Howell, Superintendent of Roads. Hon. Locke Craig, Windsor, N. C, December 29, 1916. Governor of North Carolina. Dear Governor: — I beg to submit to you the following report and names of prisoners that were released to spend Christinas at home, namely: York White, Dave White, Robert Hoggard, Ed. Freeman, Joe Smith, Wiley Smith, Bill Heck- stall, Sills Miller, Tom Coffield, William Smallwood, William Gatting, Buck Small- wood, and Dukes Hoggard. All of these prisoners have returned and behaved themselves. Hoping you a prosperous New Year, I am, Very truly yours, J. W. Cooper, Sheriff. PAROLE OF STATE'S PRISONERS 183 Governor Locke Craig, Efland, JN". O, December 29, 1916. Raleigh, N. C. Honored Sir : — All convicts in my camp returned promptly, after their Christ- mas at home. Yours very truly, A. W. Clark, Supervisor, Orange County Roads. Asheville, 1ST. C, January 1, 1917. Hon. Locke Craig, Governor. Dear Sir : — You will please find the report of the trusties that went to their homes for Christmas and holidays. They all returned except one white man, Harris Debrew. He assaulted a man by striking him with a bottle, and was arrested by a policeman. The names of the white men: Adam Wheeler, C. C. Coon, Harris Debrew, Harley Gausnell, James Johnson, Otto Munsey, Andy Webb. The names of the colored : Kid Wills, Frank Angle, Charles Logan, John Scott, Will Williams, Arthur Booker, Preston Gibson, Mont. Wofford, Henry Roberts, Harry Morris, J. 1ST. Edwards. Governor, I am truly sorry your term is about to expire. I would be glad if you could or would be our Governor the next four years. E. M. Mitchell, Sheriff. Hon. Locke Craig, Governor, Durham, N. C, December 28, 1916. Raleigh, N. 0. Deae Sir : — I beg leave to report that, according to your instruction I allowed four trusties to leave the work house in Durham County, to spend three days of the Christmas holidays. All three have returned, but not as promptly as last year. Very respectfully, E. D. Couch, Superintendent Workhouse. Lexington, 1ST. C, December 30, 1916. To His Excellency, Locke Craig, Governor, Raleigh, N. C. Dear Sir : — In response to yours of the 20th of December. I wish to make the following report: Billy Homes, of Barnwell, S. C, serving a term of fifteen months, returned Wednesday at 11 o'clock. Behavior good. H. V. Smith, of JNTasheville, Tenn., serving term of six months, returned Tuesday at 12 o'clock. Behavior good. Sam Hoover, of Thomasville, N. C, serving term of ten years, returned Tues- day at 12 o'clock. Behavior good. Floyd Lee, of Lexington, IS". C, serving term of two years, returned Tuesday at 12 o'clock. Behavior good. Each prisoner wishes to extend to you thanks for this parole. Wishing you the very happiest of New Years, I beg to remain your humble servant. T. W. Miller, Superintendent. 184 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Hon. Locke Craig, Governor, Durham, N. C, December 28, 1916. Raleigh, N. C. Dear Sir: — I beg leave to report tbat, according to your instructions issued to tbe Superintendents of county road convict camps, I allowed to go borne and spend tbree days of tbe Cbristmas bolidays, December 24,-26, twenty-two trusties. All of tbese men returned by noon of tbe 27tb, witb tbe exception of two. Jobn Williams (colored) returned at 6 :30 p. m. on tbe 27tb. Tbe otber, Wesley Perry (wbite), bas not returned yet. Please advise me wbat to do in tbis case. I am sorry to say tbat none of tbe trusties did as well this time as tbey did last year in returning to tbe camp, as tbey waited till tbe last minute, or most of them. All reported having a good time. Very respectfully, J. M. Pollard, Superintendent Roads. Concord, N". C, December 29, 1916. To His Excellency, Governor Craig: Complying with your letter dated December 20, 1916, would say we let off the following men for three days : Joe Pless, Sam Ellis, Alex Tyson, John Alex- ander, and B. H. Hardaway. Alex Tyson did not go home as he lives in Moore County, but he was let go wherever he wanted. All conducted themselves fine and reported at camp Wednesday morning. Yours very truly, H. W. Caldwell, Sheriff. Hon. Locke Craig, Governor, Lexington, 1ST. C, January 1, 1917. Raleigh, N. C. Dear Sir: — I gave pass letters to Mr. Tom. Miller, Superintendent of the chaingang. He tells me all tbe prisoners returned, and that they are very grate- ful to you for tbe kindness shown them. Mr. Miller wrote you last night. Yours truly, A. T. Delap, Sheriff. To the Governor: Louisburg, 1ST. C, December 28, 1916. Your order of authority of December 20th, duly received. Same was read to the superintendent of the convict camp of this county. He paroled Henry Leonard and Wesley Burrell. Tbey both made satisfactory records and returned to camp within the time limit, sober and well pleased with their holiday so kindly given them by you. Respectfully, H. A. Kearney, Sheriff. To His Excellency, Governor Craig, Oxford, N". C, December 30, 1916. Raleigh, N. C. Honored Sir : — I beg to report tbat under your order I released two trusties for the holidays from the Granville County convict road force. Both of them re- turned for duty promptly and went to work. No complaint has been heard against them while away from camp. Very respectfully, R. A. Jones, Superintendent of Roads. PAROLE OF STATE'S PRISONERS 185 Winston-Salem, N. C, December 30, 1916. Hon. Locke Craig, Raleigh, N. C. Dear Governor : — In pursuance with your request, I released the following convicts from custody on Sunday, December 24th, to return to camp on December 27th, noon : George House, Buck Patterson, John Banks, Pinckney Person, Asbury Sparks, Colen Lee, Arthur Stewart, Russell Denny, "Will Archie, Lee Stafford. Will Hairston, James Young (colored), and James Hicks (white). All of the above men returned promptly, and deported themselves honorably during their absence. Tours very truly, R. T. Joyce, Superintendent Convict Forces. Hon. Locke Craig, Governor, Statesville, N". C, January 1, 1917. Raleigh, N. C. Dear Governor : — I complied with your request of December 20, and am pleased to state that each and every trusty returned at the time appointed. Wishing you a very prosperous and happy New Year, I am, Yours, M. P. Alexander, Sheriff. Governor Locke Craig, Smithfield, N. C, December 30, 1916. Raleigh, N. C. My Dear Sir: — I herewith make this report for prisoners given chance to go home Christmas : two white men, A. A. Massingill and Thomas Wallace, were let go. Massingill stayed at the camp at night, visited over in town each day. He preferred that as he only had five days to serve after that. Wallace went home. Both were in place at the time specified. Two black men, Barney Stevens and Juddie Conner, went home and came back on time. I think, Governor, your idea of giving them this privilege has its influence for good not only with the men who go home but with the entire force. Wishing you good health and much happiness with peace and prosperity, I am, Yours truly, George L. Jones, Superintendent Township Roads. Wilmington, 1ST. C, December 30, 1916. His Excellency Locke Craig, Governor, Raleigh, N. C. Dear Sir: — In compliance with instructions contained in your circular letter dated December 20th, I have the honor to report that the men named below were allowed to go home during the holidays; that their conduct was, as far as known to me, good; and that all of them returned at the appointed time: Washington McNeal, W. J. Richardson, Bob Harris, Oscar Johnson, Charles McAlpine, Frank Pears, Will Brown, John Cooper, M. C. Jones, Foster Simpson, Rufus Howe, George Mandy, George Galloway, Moses Sharpless, Ed Austin. Last year ten were allowed from this institution. All returned promptly. This year it was extended to fifteen with the same pleasing results. Yours very truly, Fred M. Rivenbark, Superintendent Workhouse. 186 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Hon. Locke Craig, Snow Hill, 1ST. C, January 2, 1917. Raleigh, N. C. Dear Sir : — We would, according to your instructions, report that we let go for the Christmas the following named trusties doing service on the roads of Greene County: John Koonce, John Swinson and Richard Mays; that they all returned on time, and that their conduct when out on parole was a very fine in- dorsement of your Excellency's very worthy course. We believe that you have been the originator of an idea which will wear well and find following in other states. We remain, Most truly yours, J. E. Herring, Sheriff. J. M. Nipper, Superintendent Camps and Roads. Henderson ville, N. C, January 1, 1917. Governor of North Carolina, Raleigh, N. C. My Dear Sir : — Your order was obeyed, but I was delayed in sending in my report, as the boss of the chain gang was some distance out. He reports to me the names of prisoners he let go home through the holidays, as follows : Ed Bridgemar, W. M. Lorance, Bo Ponders, Babe Copeland. I only had at that time three darkies in jail. I took them out for an auto ride about two hours and they enjoyed it finely. The men on the gang returned on time. It worked all O. K. Y ours truly, M. Allard Case, Sheriff. Hon. Locke Craig, Governor, Mount Airy, N. C, January 1, 1917. Raleigh, N. C. Sir : — I had only one trusty, Fred Poore. He was allowed to go home on De- cember 24th. He returned to prison, Wednesday, the 27th. W. G. Belton, Sheriff. Hon. Locke Craig, Governor, Salisbury, N. C, December 28, 1916. Raleigh, N. C. Dear Sir: — The following named prisoners of Rowan County were released for Christmas, as per your orders : Chain-gang No. 1. — There were six released, as follows : D. L. Beasley, Cal Earnhardt, Frank Brady, Ed. Litaker, Will Massey, and Will Marlow. All returned as per instructions. Camp No. 2. — There were eight released, as follows : Paul Harris, John Henry Hill, Son Simmons, Price Hayes, Paul Barber, Jim Clark, S. S. Willis, and Charlie Baker. All returned except two. These were S. S. Willis and Charlie Baker. Willis had three months to serve and Baker had eleven months not served. At the county work house there were six released, as follows : Mag Allman, Margie Menins, Lewis Reedy, Willie Stevenson, Napoleon Aggues, and Ed. Car- line. These all came back as per instructions. Very truly yours, J. H. Keeper, Sheriff. PAROLE OF STATE'S PRISONERS 187 Hon. Locke Craig, Asheboro, N". C, December 30, 1916. Raleigh, N. C. Dear Sir: — In answer to yours of the 20th inst., we allowed the prisoners of Eandolph County to take Monday and Tuesday, for holidays and begin work Wednesday morning, December 27. We have no trusties at this time, and there- fore, not any one was released during the holidays. Yours very truly, J. F. Hughes, Sheriff. Hon. Locke Craig, Governor, Hillsboro, 1ST. C, January 1, 1917. Raleigh, N. C. Hon. Sir : — I am pleased to advise that the following prisoners were allowed freedom for December 24, 25 and 26, each one returning to his work promptly after the expiration of these days, namely: Boby O'Briant, Eick Adkins, Jim Roland, Jim Edwards, George Woods, Richard Alston. Very respectfully, Charles G. Rosemond, Sheriff. Hon. Locke Craig, Rocky Mount, N". C, December 30, 1916. Raleigh, N. C. Dear Sir : — In accordance with your request, I beg to say that I released five trusties from this camp. All returned promptly. Their conduct was good. Names as follows: Joe Bissett (white), Henry Tant (white), Sherman Robeson (colored), Will Sessoms (colored), Sam Willey (colored). Very truly yours, W. B. Rose, Superintendent. Governor Locke Craig, Brevard, N". C, December 30, 1916. Raleigh, N. C. My dear Sir : — I am sending you herewith list of convicts who were released and returned during the holidays : Edward C. Ward, Albert Rackan, John H. Reid, Fate Enight, F. M. Bunid, K"oah Troy, Eunci Jackson, John Griffin, George Orr. Jule Eilgore, and Percy Thomas. Yours very truly, Cos Paston, Sheriff. Hon. Locke Craig, Governor, Goldsboro, N". C, January 2, 1917. Raleigh, N. C. Dear Sie: — I herewith report number of convicts allowed leaves of absence for Christmas: Howard Bathais, Oscar Faison, Dick Simmons, Elliott Grantham. All took advantage of the leave given them, except one, Dick Simmons, who preferred to remain at camp ; and all returned on time. Very truly, Sam D. Scott, Highway Engineer. (VI) STATE'S PRISONERS IN REGARD TO HIRING THEM TO CERTAIN RAILROADS WITHIN THE STATE. REPLY TO INQUIRY OF HON. HENRY A. PAGE HIRING STATE'S PRISONERS TO CERTAIN RAILROADS. REPLY TO INQUIRY OF HON. HENRY A. PAGE State op North Carolina Executive Department Raleigh February 12, 1915. Hon. Henry A. Page, Raleigh, N. C. My Dear Mr. Page: — Your letter delivered to me on the 9th in regard to the leasing of convicts to the Elkin and Alleghany Railroad Company would have been answered sooner, but for the demands of other business. I have given careful consideration to your inquiry as to what construction I place upon Section 20 of the act constituting the charter of the Elkin and Alleghany Railroad, making the approval of the Governor a prerequisite to the assignment of convicts to this road. In your letter you construe the act as follows : "Whenever in the exercise of his (the Governor's) sound discretion he finds as a fact that the commodity to be received in payment for the labor of these convicts is actually and really and truly worth its face value in money, then, and not until then, can he be permitted to accept same in payment under the act quoted, as modified and controlled by the Constitution of the State. There is nothing else that he can possibly be supposed to use discre- tion about. I therefore think it is perfectly clear that the intention of the General Assembly of 1907 was to authorize the exchange of convicts for stock in the Elkin and Alleghany Railroad when, and only when, the Gov- ernor should be entirely satisfied that such stock was worth its face value in money." I cannot agree with your interpretation of this law. I am satisfied that the Legislature not only did not have the intention stated by you, but that it had the very opposite intention. There is nothing in the language of the act to warrant your conclusion. If the General Assembly had such intention it certainly should and would have expressed it. When the act was before the General Assembly, the pay for the convicts was the principal question considered. This was the distinc- tive feature of the act. The purpose of Section 20 was to enable the Elkin and Alleghany Railroad Company to obtain the use of convicts, and to pay the State therefor in stock that was not "actually and really and truly worth its face value in money." By this means the State would assist the people of that remote sec- tion to get a railroad. It had assisted other sections to get railroads. If the Gen- eral Assembly had authorized the appropriation of convicts to the Elkin and Alleghany only upon the condition that they should be paid for in stock that was "actually and really and truly worth its face value in money," this section of the act would have been of no assistance in building the road, and would have conferred no benefit upon that section of the State. Neither Governor Glenn nor Governor Kitchin nor I read into this act the meaning that you contend for; but, on the contrary, three Governors in succession have interpreted the act to mean what it 192 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG says, to wit : That available convicts be assigned to this road, and the stock of the railroad company taken as pay tberefor, although this stock is not "actually and really and truly worth its face value in money." This whole situation was clearly understood by the General Assembly of 1907 that passed the act, and since then four General Assemblies have met. All have acquiesced without question in the construction placed upon this law by the different Governors. Two of the General Assemblies have indorsed the present policy, after full investigation and discussion. This stock has been received in payment for convicts by the State Treasurer since 1907. It has always been conceded that it has no market value, and, that it may never have any value. This is shown by the report of the State Treasurer. It was stated in my message to the General Assembly, and you state in your letter that such is "the practical admission of the fact by every one of the gentlemen now defending the deal before committees and the Senate." These conditions have been thoroughly understood since 1907 by all persons informed on the subject, and no citizen of the State, and no General Assembly has ever before sought to place your construction upon the charter of the Elkin and Alleghany Railroad. The pres- ent Senate, by an overwhelming majority, declines to adopt your view on a clear- cut presentation of the question, and the present House of Representatives is so pronounced against your construction of this law that you have decided, as I am informed, not to contend further before that body, of which your are a member. This General Assembly, now in session, after full discussion, has refused to require money value for these convicts. In the face of these facts I cannot conclude that this General Assembly, nor that any other General Assembly, intended that this railroad should have convicts "when, and only when, the Governor should be entirely satisfied that such stock was worth its face value in money." The moving consideration for the appropriation by the State of these convicts to aid in the construction of these roads is not the stock in the railroad companies. The real compensation to the State is the prospective development of rich and inaccessible sections inhabited by a portion of our citizenship desiring and deserving the facili- ties of communication and transportation with other portions of the State. It seems to me that this is thoroughly understood and well established. Nor can I treat this statute as a nullity because in conflict with the Constitution. It is not, as I conceive, the prerogative of the Governor, nor even of the courts, to declare acts of the General Assembly unconstitutional and void, except in clear and extreme cases. It is the Governor's duty not to disregard, but to execute, the laws made by the people, and by the representatives of the people. "When the Constitutional Convention of 1875 ordained that "The General Assembly shall have no power to give or lend the credit of the State in the aid of any person, association or corporation," it doubtless had in mind the millions of fraudulent bonds issued by the Reconstruction Legislature for the pretended pur- pose of building railroads. Does this section of the Constitution prohibit the Legislature from aiding remote sections of the State in securing railroad facilities by the leasing of convicts, when no obligation is incurred by the State, although the stock paid for these convicts may not be worth its face value in money? Able lawyers differ as to the meaning of this section of the Constitution, and as to its application to this situation. In passing upon the appropriation of these convicts to the Elkin and Alleghany Railroad and to other roads, there are many considerations to influence the discre- tion of the Governor, or the board clothed with such discretion: the feasibility of HIRING STATE'S PRISONERS TO RAILROADS 193 the enterprise, the extent of the benefits, the condition and requirements of the prison, and many other things might enter into the consideration of the Governor or the board making the appropriation. I am not responsible for the present policy. The General Assembly is respon- sible. I expect to exercise the power and discretion vested in me in accordance with what I conceive to be the will of the General Assembly, with due regard for the economic management of the prison and the rights of all concerned. I shall not order the withdrawal of the convicts from the railroads on the grounds con- tended for in your letter. I am satisfied that such is not the will of the General Assembly. If the power to appropriate these convicts be continued in the Gover- nor, I shall continue the present policy to aid inaccessible sections in obtaining railroad facilities, provided I am assured that these railraods will be built to points that will benefit the remote sections, that the railroad companies will do their part, and that the enterprise is conducted in good faith for the benefit of those sections that the State desires to help and to develop. I shall at all times act as the situation may require, and withdraw the convicts, provided their with- drawal be advisable after considering all the circumstances. The Board of Prison Directors is the proper authority to administer all of the affairs of the prison, including the appropriation of these convicts. I therefore recommended in my message to the General Assembly that the power and discretion now vested in the Governor and Council of State as to the appropriation of these convicts be vested in the Board of Prison Directors. Whether this act be passed or not, I would not avoid responsibility for what has been done in the appropria- tion of these convicts, or for what may be done. I deem it my duty as Governor to make a full and candid reply to your letter and to give you my reasons for the position which I have taken. Tours truly, Locke Craig, Governor. 13 (vn) FRAUDULENT AND REPUDIATED NORTH CAROLINA BONDS FRAUDULENT AND REPUDIATED NORTH CAROLINA BONDS 1. Reply to Inquiry from Governor Major of Missouri. 2. Petition of the Republic of Cuba to Bring Suit Against the State. 3. Letter from Cuban-American Society, and reply thereto. (1) REPLY TO INQUIRY FROM GOVERNOR MAJOR OF MISSOURI United States Senate "Washington, D. C. Hon. Locke Craig, January 12, 1916. Raleigh, N. C. My deae Goveenoe: — Today Governor Major of Missouri called upon me and stated that some syndicate had offered to give the State of Missouri a large batch of North Carolina bonds issued about April, 1869, signed Holden, Governor, and Jenkins, Treasurer. He said he was personally very much opposed to accepting this donation, but that the Legislature of that State had created a board composed of the Governor, Treasurer and Attorney-General, and conferred upon it the power to accept or reject donations offered to the State, and he wished me to give him information with reference to the so-called bonds, so that he might submit the facts to his associates on this board. The Governor did not say what conditions were attached to the gift, but I assume, of course, that one of them was that the State should bring suit to test the validity of the bonds. I have in my possession a printed document containing an open letter written by Capt. S. A. Ashe, dated June 26, 1905, to the Hon. John G. Carlisle (then of New York City and attorney for the bond syndicate holding these so-called bonds), replying to some published statements made by Mr. Carlisle and one Andrews, who in some way, with Carlisle, represented this syndicate. This letter of Captain Ashe's goes very fully into the history of the Legislature which issued these bonds and of the bonds themselves. I promised Governor Major to send him this docu- ment, which I will do immediately; and also that I would write you requesting that you communicate with him upon the subject. I also send you herewith a copy of the document referred to above. "With assurances of high esteem, I am Very truly yours, F. M. Simmons. State of North Caeolina Executive Depaetment Raleigh His Excellency, The Governor, January 21, 1916. Jefferson City, Mo. My dear Governor Major: — I have been informed that certain parties have offered to present to the State of Missouri some old North Carolina bonds which have been repudiated. These bonds are what are known as "Reconstruction Bonds." They were issued in the days of Reconstruction, and were designed and sold in fraud and corruption. The people got no value for them. It has come to me that you do not look with favor upon the acceptance of these bonds by your State in order that suit might be brought against the State of North Carolina. On behalf of our people I desire to thank you personally for this attitude 198 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG that you have taken. I am enclosing a paper written by Captain S. A. Ashe, giving the history of these bonds, and showing that we are under no obligation to pay them. The Constitutional Convention of 1875 declared an ordinance forever protect- ing the State against these bonds by providing that no legislature should have the power to pay them. Again thanking you, and with the highest regards I am Yours sincerely, Locke Craig, Governor. Executive Offices State of Missouri City of Jefferson Hon. Locke Craig, January 24, 1916. Raleigh, North Carolina. Dear Governor: — Yours of the 21st inst. at hand. I wish to thank you for the kindly expressions in your letter, and for the enclosure you sent me. I wish to assure you that I am opposed to the acceptance of the gift, and now believe, with the information I have, that I can prevent the other two members of the board, who have signified their willingness to accept the bonds, from doing so, and can induce them to change their attitude and to join me in refusing the gift. I am now firm in the belief that these bonds were issued in fraud and cor- ruption, as you say, and the people of North Carolina should not be called upon to meet same. With kindest regards, I am Yours sincerely, E. W. Major. (2) PETITION OF THE REPUBLIC OF CUBA TO BRING SUIT AGAINST THE STATE ( Telegram. ) Raleigh, N. C, November 9, 1916. The Chief Justice of the United States, Washington, D. C. I have been informed that the Republic of Cuba has filed a petition against the State of North Carolina in the Supreme Court for the purpose of enforcing the collection of certain bonds; that on Friday attorneys for Cuba will be heard urging petition for allowing suit. I request an opportunity to have the State of North Carolina heard in any proceeding or hearing by the Supreme Court. I desire the Attorney-General of North Carolina to be present and represent the State. He has just passed through a strenuous campaign and been elected Governor. I do not know that he can go to "Washington on Friday. I would appreciate information as to the proceeding now before the Court, and a postponement until the Attorney-General can attend. The Attorney-General is not in Raleigh. I would thank you for an answer. Locke Craig, Governor. FRAUDULENT AND REPUDIATED BONDS 199 (Telegram.) Washington, D. G, November 9, 1916. Hon. Locke Craig, Governor, Raleigh, N. C. Application of Bepublic of Cuba for permission to file suit against North Caro- lina is purely formal application. No hearing is to be granted on Friday or any other day on that application. If permission is given to file suit every oppor- tunity will be afforded North Carolina to be heard in the matter at some future date. James D. Maher, Clerk of the U. S. Supreme Court. Office of the Clerk Supreme Court of the United States Washington, D. C. Hon. Locke Craig, November 15, 1916. Governor of North Carolina, Raleigh, N. C. Dear Sir : — I have the honor to inclose herewith a certified copy of an order entered on the 13th instant in the case of Republic of Cuba v. State of North Carolina. Please acknowledge receipt. Yours truly, James D. Maher, Clerk U. S. Supreme Court, By Wm. R. Stansbury, Assistant. Supreme Court of the United States No , Original, October Term, 1916 FiEpublic of Cuba, Plaintiff vs. State of North Carolina On consideration of the motion for leave to file a declaration in this cause, It is now here ordered by the Court that the said motion be and the same is hereby assigned for argument on Monday, January 8, next, and that notice of this order be given to the Governor of North Carolina and the Attorney-General of the United States. November 13, 1916. A true copy. Teste: James D. Maher, [seal] Clerk of the U. S. Supreme Court. Note. — As the Attorney-General of the State, Hon. Thomas W. Bickett, was to be inaugurated Governor on January 10th, and as it was impossible for him to devote his entire time to the preparation of the argument on the motion of the Republic of Cuba, Plaintiff, v. State of North Carolina, Governor Craig employed Hon. James S. Manning, who was at that time the Attorney-General-elect, and Hon. Cameron Morrison, of Char- lotte, to appear with the Attorney-General in the Supreme Court of the United States on the date set for the hearing of the motion, and to represent the State of North Caro- lina. 200 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (3) LETTER FROM CUBAN-AMERICAN SOCIETY, AND REPLY THERETO Cuban-American Society Washington, D. C. New York City, November 10, 1916. To His Excellency , Hon. Locke Craig, Governor of North Carolina. Your Excellency : — The Cuban- American Society was recently incorporated at Washington, under the laws of the District of Columbia, for the principal pur- pose of promoting the formation of closer social associations between the peoples of Cuba and the United States, it being believed that the development of such relations between the representative citizens of these two countries will lead to financial and commercial understandings which will be of far-reaching importance. His Excellency, General Mario G. Menocal, President of Cuba, has accepted the Honorary Presidency of our Society, and His Excellency, Dr. Carlos Manuel de Cespedes, Minister from Cuba to the United States, is our Honorary Vice- President. The executive headquarters of our organization has been established in the Waldorf-Astoria, New York City. The visitation of Cuba by a distinguished body composed of the Executives of several of the sovereign States of our Union would be of the greatest value as an impressive official display of the fraternal sentiments entertained by our Nation for our sister Republic, and the enthusiastic welcome, with the receptions, fetes, military reviews and other entertainments which would be accorded to such eminent visitors, with the wide international publicity incidental thereto, would mean the beginning of a new epoch in the relationship between the two republics. Our Society desires to ascertain if your Excellency, in the interests of inter- national concord, would be disposed to accept, in your official capacity as Gov- ernor of North Carolina, a formal invitation from the Republic of Cuba to be the honored guest of the Nation, in company with Executives of other States, for a period of several days during the coming winter. The transit between an American port and Havana would be made by your Excellency and suite on a warship, and all other details pertaining to transportation and accommodations would be arranged for by our Society. Trusting that the activities of our Association for the promotion of the social, financial, and industrial unity of Cuba and the United States will meet with your highly esteemed approval, we have the honor to be, Your Excellency's most obedient servants, Cuban-American Society, E. Lawrence, Chairman. FRAUDULENT AND REPUDIATED BONDS 201 State of North Carolina Executive Department Baxeigh November 30, 1916. Mr. F. Lawrence, Chairman, Cuban-American Society, New York City. My dear Sir : — Your letter inquiring if I, as the Governor of North Carolina, would accept a formal invitation from the Eepublic of Cuba to be the honored guest of that Nation has been carefully considered. I am not unmindful of the honor that you do me, and appreciate the cordial tone of your communication. Under different circumstances I would esteem it a privilege and a pleasure to signify my acceptance of the invitation, and to contribute in any way possible toward the promotion of closer relations between the people of Cuba and the State of North Carolina; but in consideration of the whole situation, it is impossible for me at this time, as the Governor of North Carolina, to accept the suggested hospitality from the Eepublic of Cuba. An action has been recently instituted in the Supreme Court of the United States by the Eepublic of Cuba against the State of North Carolina for the col- lection of certain fraudulent bonds amounting to more than two million dollars. These bonds are what are known as "Eeconstruction Bonds." They were issued by the General Assembly of 1868 and '69. In return for them the State received no value. They were issued by a General Assembly that for fifty years has been odious on account of its corruption and debauchery. This General Assembly con- vened immediately after the War between the States. It was elected in disregard of the Constitution and the forms of law. The bayonet was supreme. The best men of North Carolina were disfranchised. Ignorant and recently enfranchised slaves in riot and ruin were in control of our commonwealth, and constituted the principal part of the General Assembly. This was the day of our humiliation and oppression. Shortly after the issuing of these bonds the citizenship of North Carolina by heroic efforts took again their Government into their own hands. The bonds were repudiated. Their dishonor and the method of their issue was published to the world. No interest has been paid on them. The people of North Carolina in their Constitutional Convention of 1875 declared that the payment of the bonds by any official or by any General Assembly should forever be unlawful. Adventurers and unscrupulous speculators have secured or gotten control of many of these bonds, and have by devious methods attempted to collect them. The Federal Constitution provides that no individual can sue a sovereign State. On this account the holders of these bonds and their agents have attempted to enforce collection through the agency of other States of the Union, and for this purpose have offered most liberal gifts to States with whom they have negotiated. After the States became informed of the facts they refused to touch the unclean thing. The State of South Dakota did bring suit against the State of North Caro- lina, but not on bonds of the issue of 1868 and '69. If North Carolina owed these bonds she would pay them, and would have always recognized their validity. She does not owe them, and will resist payment. She hopes and believes that if the people of Cuba knew of all the facts pertaiu- 202 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG ing to this subject, they would not make themselves a party to the unrighteous alliance against the people of this State. While the Kepublic of Cuba maintains, or attempts to maintain this action for the collection of these bonds, as the Governor of this State, I cannot consent to be the guest of that Nation. The citizens of North Carolina have always felt the deepest interest in the welfare and destiny of the Eepublic of Cuba. In 1898 thousands of young men volunteered from this State to enlist in the army for the relief from oppression and for the liberty of the Island of Cuba. On the grounds of the Capitol of the State there is the statue of Worth Bagley, a North Carolinian and an Ensign of the Navy, who was the first to shed his blood in this war of emancipation and humanity. Lieutenant William E. Shipp, a most gallant son of our State, com- manding and leading a battalion of the Tenth Cavalry, fell in the famous charge on San Juan Hill. These are not the only brave sons of North Carolina who gave their lives for the freedom of the Cuban people. We have given this and other evidences of our regard and sympathy. We have looked with gratification upon the increasing friendship between our people and the Eepublic of Cuba, and have realized that growing intercourse, trade and cooperation would inure to the highest welfare of both. In memory of the past and of the cordial relations existing between us, it was with surprise and disappointment that we learned of the action of the Cuban Eepublic in undertaking the enforcement of the claim above mentioned. I deeply regret that on any account there should be any interruption of the most cordial and friendly relations between the Eepublic of Cuba and the State of North Carolina. Yours sincerely, Locke Craig, Governor. Note. — The petition filed by the Republic ot Cuba against the State of North Carolina was subsequently withdrawn. See Supplemental Papers. (VIII) AGREEMENT OF ATLANTIC COAST LINE NOT TO REMOVE CASES PENDING TO THE FEDERAL COURTS FEBRUARY, 1916 AGREEMENT OF THE ATLANTIC COAST LINE NOT TO REMOVE CASES PENDING TO THE FEDERAL COURTS Atlantic Coast Line Railroad Company Law Department Wilmington, N". C. February 6, 1915. Hon. Locke Craig, (At Raleigh, ST. C.) Governor of North Carolina, Raleigh, N. C. Dear Sir: — In order that suggestion made by me on behalf of this company may be definitely and clearly submitted to you and the gentlemen who have kindly consented to meet with you, in order to determine accurately the facts in connec- tion with the passage of the Enabling Act of 1899, under which the Wilmington and Weldon was consolidated with the other roads now forming the Atlantic Coast Line Railroad Company, I beg leave to reduce to writing in this letter the state- ment I have heretofore made to you, and individually to certain of the other gentlemen mentioned. I have asked, and you have very kindly consented to aid me in securing a meeting of the gentlemen who have actual personal knowledge of the facts con- nected with the introduction and passage of this bill, the object being to ask them to consider the situation as they recall it, and to determine, after mutual discus- sion : (1) Whether or not a promise was made by any official of the Wilmington and Weldon or the Atlantic Coast Line that the consolidated company would not seek to remove a case to the Federal court, upon the ground of diverse citizenship thereafter, if the bill introduced by Mr. Rountree was enacted into a law; (2) whether such a promise was made by any one else, having even apparent authority, on behalf of the Wilmington and Weldon or the Atlantic Coast Line, and (3) whether the Legislature, in passing this bill actually relied upon the faith of any such promise, either made, or which was understood by the Legislature to have been made. I have said to you, and to the other gentlemen, that the Atlantic Coast Line officials have no knowledge of any such promise ever having been made by any person officially connected with the Atlantic Coast Line, or by any one else, but that if it appeared that such a promise was made even without the knowledge of the officials by one having even apparent authority, and that the action of the Legislature of 1S99, in passing the law, was upon the faith of the understanding that such a promise had been made, the Atlantic Coast Line Railroad Company is now prepared, and will agree to renounce any right that it has under the law to remove cases from the State to the Federal court in this State, upon the ground of diverse citizenship, and will immediately agree to a dismissal, or remand of all cases now pending in the Federal court, in which the cause of action arose within this State, and which was removed to the Federal court upon the ground of diverse citizenship. 206 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG I am authorized to agree further for the Atlantic Coast Line Eailroad Com- pany, in the event you find that such a promise was made, or understood to have been made, that it will not hereafter seek removal of cases, in which the cause of action arose in this State, to the Federal court, upon the ground of diverse citizenship, and to agree generally that so far as the right of removal is concerned, the Atlantic Coast Line Eailroad Company will assume the same position it would occupy if the property were still operated by the Wilmington and Weldon Railroad Company. This, as we view it, would give full force and effect to the possible purpose and intention of the Legislature in passing the Act of 1899, construing it most liberally in favor of the State. It would not, of course, preclude us from seeking the jurisdiction of the Federal court in those cases in which the cause of action arose in another State, or in other cases which, under the Federal statutes, may be tried in the Federal Court, even by a corporation which is a citizen of this State. It is the sincere desire of this company to ascertain actually the facts in con- nection with the passage of this bill, and thereafter to carry out to the fullest extent any obligation, either legal or moral, which properly flows from those facts, and I desire to express here my appreciation of the courtesy shown us by you gentlemen who have consented to meet and discuss this situation, in order that this proper object may be accomplished. To the end that your conclusion may be specifically and definitely known to us, I will very much appreciate it if you will give it to me in the shape of a letter, or other memorandum in writing, which may be taken as a guide and basis of our future action in the premises. Yours very truly, Geo. B. Elliott, Assistant General Counsel. Atlantic Coast Line Eailroad Company Law Department Wilmington, 1ST. C. February 6, 1915. (At Ealeigh, N". C.) Hon. Locke Craig, Governor of North Carolina, Raleigh, N. C. My dear Sir: — I acknowledge your letter of this date, reciting the conclusions reached by you, Judge W. E. Allen, Judge F. A. Daniels, Judge George Eountree, Hon. E. L. Travis, Hon. M. H. Allen, and Hon. H. A. Gilliam, in conference this morning, the five first named being the gentlemen who have personal knowledge of the circumstances attending the passage of the act of 1899, authorizing the con- solidation of the Atlantic Coast Line. It is naturally a matter of sincere gratification to this Company and its offi- cials to receive from you gentlemen who are familiar with the facts the assur- ance that is contained in your letter, constituting, as it does, a complete answer to the charge of bad faith on the part of this Company. I repeat now, in writing, the statement that I made to the gentlemen mentioned in your office this morning, to wit : that notwithstanding the fact that you find no promise was made by any person on behalf of this Company not to remove cases ATLANTIC COAST LINE NOT TO REMOVE CASES 207 to the Federal court on the ground of diverse citizenship, nevertheless, inasmuch as it appears from your finding that the Legislature understood, in passing this bill, that the Company did not contemplate, nor intend, to remove its cases to the Federal court on the ground of diverse citizenship, and that the amendments adopted were understood and intended by the Legislature to cover this point, and that its action was on the faith of this understanding, this Company will, and it hereby does, agree to renounce such right as it may have under the law to remove cases in which the cause of action arises in this State from the State to the Federal courts in this State upon the ground of diverse citizenship. Although I am authorized to make this agreement on behalf of the Company, it will, I think, be better to have this assurance given to you and the people of the State by means of a letter over the signature of the President of this Company, and I will, therefore, upon my return to Wilmington, request Mr. J. R. Kenly, President, to confirm this statement over his signature in a letter addressed to you, to the end that this correspondence, with Mr. Kenly's letter, may be placed in your files as a record for the future determination of any question that may arise in the premises. With renewed expression of my appreciation of the courtesy of the gentlemen named in meeting to determine this question, I am, Yours very truly, Geo. B. Elliott, Assistant General Counsel. State of Worth Carolina Executive Department Raleigh February 6, 1915. Mr. Geo. B. Elliott, Raleigh, N. C. Dear Sir: — Your letter of February 6, 1915, has been received, and I have considered the matters referred to therein in company with Judge W. R. Allen, Judge F. A. Daniels, Judge George Rountree, Hon. E. L. Travis, Hon. M. H. Allen, Hon. H. A. Gilliam and yourself. I have reached the following conclusion, in which all of the gentlemen present concur: We find that no official of the Wilmington and Weldon Railroad, or of the Atlantic Coast Line made any promise at the time the consolidating act was passed, nor at any other time, that the company formed under the act would not seek to remove a case to the Federal court upon the ground of diverse citizenship, and we further find that no such promise was made by any one in behalf of the company. We do find, however, that it was understood by the members of the General Assem- bly without exception, who considered this act, that the company did not contem- plate nor intend to remove its cases to the Federal court on account of diverse citizenship, and that the amendments which were adopted to prevent removals would be observed by the company as understood and intended by the Legislature, and that the action of the General Assembly was on the faith of this understanding. It appears clearly to these gentlemen that these facts were not known to the officials of the Atlantic Coast Line Railroad prior to this conference. It is a matter of congratulation to the people of the State and to the company that, upon being fully informed as to the facts, the company shows a willingness 208 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG to comply with the understanding that existed in the Legislature at the time of the passage of this act, and has agreed to remove no other causes of action arising in Worth Carolina on the ground of diversity of citizenship, and agrees that those causes now pending, which have heretofore heen removed on the ground of diver- sity of citizenship, may be remanded to the State courts. All of the gentlemen present join in commending the spirit of fairness of the company as manifested in keeping the promise or offer made by President Kenly in his recently published letter, without subtle distinction as to whether or not the facts as found by us meet the exact terms of his offer. Yours truly, Locke Craig, Governor. Atlantic Coast Line Kailroad Company Office of President Wilmington, N". C, February 7, 1915. Hon. Locke Craig, Governor of North Carolina, Raleigh, N. C. My dear Sir : — I have read with much pleasure and gratification your letter of February 6th to Mr. George B. Elliott, Assistant General Counsel of this com- pany, giving the finding of the gentlemen who met to consider the questions in- volved in the passage of the Act of 1899, authorizing the consolidation of the Atlantic Coast Line Railroad Company. I have also read the letter of February 6th from Mr. Elliott addressed to you, in which he states for this company, that we will hereafter renounce the right of removal to the Federal court in all cases in which the cause of action arises within this State, upon the ground of diverse citizenship, and will agree that cases now pending in the Federal court, of such character, may be remanded to the State court. As suggested by Mr. Elliott in that letter, I now beg to ratify and confirm the position therein taken, and the agreement entered into with the State in this matter. It is particularly gratifying to me, and to the other officers of this company, that the charge of bad faith, and of conscious failure to live up to our obligations, should have been so fully and frankly met, and disproved, by the finding of the several gentlemen who were peculiarly in position to know the facts as they actu- ally transpired; and I take advantage of this opportunity to express to you our thanks for and appreciation of the kindly personal interest that you have taken in the matter, and for the aid you have generously given in securing the confer- ence, to the end that these facts might become known. I feel that it was largely through your kindly interest that this satisfactory solution of the situation was brought about. Yours very truly, J. R. Kenly, President. (IX) VANCE STATUE COMMISSION CREATED IN ACCORDANCE WITH RESOLUTION OF THE GENERAL ASSEMBLY OF 1907, PROVIDING FOR A STATUE OF ZEBULON B. VANCE TO BE PLACED LN STATUARY HALL IN THE CAPITOL AT WASHINGTON VANCE STATUE COMMISSION State of North Carolina Executive Department Ealeigh September 23, 1914. Justice W. A. Hoke, Raleigh, N. C. My dear Judge Hoke : — The General Assembly of 1907 passed a resolution providing that a marble statue of Senator Vance be erected in Statuary Hall in the Capitol at "Washington in one of the two niches reserved for North Carolina. The Governor and Council of State are authorized to take such steps as may be neces- sary to erect such statue, and to expend such sums as may be necessary therefor. The statute has never been erected. The law above referred to is printed in the Public Laws of North Carolina on page 1433. With the approval of the Council of State, I have decided to appoint a com- mission to provide for the placing of the statue of Senator Vance according to the resolution of the General Assembly, and with the approval of the Council of State, I have appointed the following Commission : Miss Laura Carter, Asheville, N. C, Mrs. Matthew VanL. Moore, Asheville, N. C, Mr. John Henry Martin, Asheville, N. C, Judge "W. A. Hoke, Ealeigh, N. C, Hon. Clement Manly, "Winston-Salem, N. C. I enclose you the certificate of your appointment. This Commission will proceed at once to take such steps as may be necessary to provide for the erection of the statue as soon as it can be done. When you have agreed upon the plans, you will make report to the Governor and the Council of State, that the same may be approved in accordance with the resolution of the General Assembly. The act provides that the necessary expenses connected with the modeling and erecting of such statue be paid by the State Treasurer. This includes the necessary expenses of the Commission. If you will pardon me, I will make the following suggestion of a plan of work : Each member of the Commission can devote to the preparation of the statue such consideration as he conveniently can. During the Christmas holidays let the Com- mission meet in the city of Asheville, and to this meeting each member can submit the result of his investigations. I take the liberty of requesting you to call the Commission together in Asheville during the approaching Christmas holidays. I have appointed three members in Asheville, so that a quorum would be at any meeting in this place without extra expense. In my opinion the very best statue should be erected that money can buy, but I wish the machinery for the erection of the statue to be as economical as is consistent with efficiency. Yours truly, Locke Craig, Governor. 212 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Ealeigh, N. C., May 1, 1916. To Governor Locke Craig, Raleigh, N. C. Dear Sir : — The Committee, appointed by your Excellency to procure a statue of the late Senator Zebulon Baird Vance, for the purpose of presenting the same to the people of the United States, pursuant to the Act of Congress, respectfully beg leave to report that they have completed the work that was given them to do, and the statue, a bronze of heroic size, is now in its proper position in Statuary Hall, the Capitol, Washington, D. C, ready for unveiling. The committee considers itself fortunate in having secured for the purpose, Mr. Gutzon Borglum, an eminent sculptor, resident in New York city, and we are pleased to assure you that, in our estimate, Mr. Borglum has produced a statue that is at once an impressive likeness and a work of great artistic merit. We desire to thank your Excellency for selecting us for this task for, in com- mon with all the people of North Carolina, regardless of party or race, we are glad to have this great man stand for us before the American people in what is broad- minded patriotic, courageous, steadfast and true, and it has been a great gratifi- cation to all of us that we have been permitted to take this part in doing honor to his memory. Permit us also to thank you for your cordial and efficient cooperation throughout. With assurances of esteem and high regard, we remain, Very respectfully yours, W. A. Hoke, Chairman, for the Committee. Note. — Chapter 5, Public Laws of 1915, amended the Resolution of 1907 by striking out the word "marble" in said resolution, leaving the Commission free to procure a statue of bronze should they deem it advisable. Accordingly a statue of bronze was decided upon instead of marble as first contemplated. VANCE STATUE COMMISSION 213 State or North Carolina Executive Department Raleigh Justice W. A. Hoke, May 1, 1916. Raleigh, N. C. My dear Judge Hoke : — I have received your letter notifying me that the Com- mittee appointed to secure the statue of Senator Zebulon B. Vance for Memorial Hall in the National Capitol, has completed the work given them to do, and that the statue is now in its proper position in Satutary Hall ready for unveiling. The Governor and Council of State greatly appreciate the services which you and your committee have rendered to the State of North Carolina in securing this magnificent statue of Senator Vance. You and your committee have at all times manifested earnestness in this work which could not result otherwise than in securing a satisfactory statue. On behalf of the people of North Carolina I thank you for what you have done in such an unselfish and patriotic spirit. The Council of State have today authorized you and your committee to do whatever in your opinion is necessary and appropriate for the unveiling and presentation of the statue to the people of the United States. We hope that we can impose upon you this additional task. With the highest regards, Yours sincerely, Locke Craig, Governor. Note. — On June 22, 1916, the statue of Zebulon Baird Vance was unveiled by his great- granddaughter, little Miss Dorothy Espey Pillow, in Statuary Hall, in the Capitol at Washington, ■where it occupies one of the niches allotted to North Carolina for her two most distinguished citizens. The presentation speech for the Commission was made by Justice W. A. Hoke, Chairman of the Vance Statue Commission, and accepted for the State by the Governor, who presented it to the United States. It was accepted for the United States by the Vice-President, Mr. Marshall. Following this ceremony, which was attended by the Congress of the United States and many citizens of North Carolina and their friends, appropriate ceremonies were held in the Senate Chamber. (X) MITCHELL'S PEAK PARK MITCHELL'S PEAK PARK Mitchell's Peak is the highest mountain in Worth America east of the Rockies. Its altitude is 6,711 feet. It is one of the peaks of the Black Mountains, the loftiest range of the Appalachian system. The Peak is situated in western North Carolina in the county of Yancey, twenty miles from the town of Black Mountain, on the Southern Railway, and ten or fifteen miles from Mount Mitchell station on the Carolina, Clinchfield and Ohio Railway. Mitchell's Peak, or Mount Mitchell, took its name from Dr. Elisha Mitchell, a professor of the University of North Carolina. He was the pioneer scientist of the South, a man of great ability, learning and research. In 1835 he measured the height of the mountain and ascertained for the first time that it was higher than Mount Washington, and that its summit was the highest land in America east of the Mississippi. Prior to Dr. Mitchell's measurement in 1835 Mount Washington was considered the highest. Until recently the only way to the top of this mountain was by steep and diffi- cult trails. But the traveler was compensated for the effort of the journey. He traveled ten miles through primeval forests, and on the summit was in the midst of a vast and unbroken wilderness of hundreds of thousands of acres where the axe had never been laid to a tree, except by hunter and trapper. Within the last few years a railroad for carrying logs has been built from the town of Black Moun- tain to near the summit of Mitchell. Within the last year this road has been equipped for passenger service, and during the last summer carried thousands of people to the top of the mountain. The views, while ascending on this road, con- stitute a panorama of surpassing grandeur. The Black Mountain Railway, recently built, connects with the Carolina, Clinchfield and Ohio at Kona on the Toe River. It runs through a most pictur- esque region to the Blue Sea Falls where Cane River leaps over a precipice 90 feet high. The top of Mitchell is three and a half miles from these falls. The Black Mountains are covered with a luxurious growth of balsam or spruce. From the dark, rich green of this forest, the mountains derive their name. Their dark, somber color is in distinct contrast to the blue of other neighboring mountain ranges covered with forests of lighter green. This balsam or spruce timber is now very valuable for lumber and wood pulp. It has been purchased by companies who are rapidly removing it in immense quan- tities, and denuding the slopes of the mountain of the magnificent virgin growth. The ground is left covered with the resinous leaves and laps of the trees, which when dry are most inflammable. It seems impossible to prevent fires. On the areas which have been cut over, conflagrations sweep with terrific fury, burning everything. The rich and gorgeous slopes of the vast mountains are left a desert of blackened ruin. In the summer of 1914 the lumbermen who had purchased the timber on Mitch- ell were proceeding to remove it. Large areas on the sides of the mountain had been destroyed by axe and fire. The summit and the whole mountain were threat- ened. I had a conference with Messrs. Pearley and Crockett, who owned and were 218 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG cutting this timber. At my solicitation they generously agreed to suspend opera- tions on and around the summit of the mountain until the General Assembly should meet. I stated to them that I would urge the General Assembly to protect this mountain and provide a reasonable compensation to them for the timber. But for this arrangement Mitchell's Peak would have been devastated, and its beauty de- stroyed. The General Assembly did make an appropriation of $20,000 to be used in the purchase of land for a park on the mountain, including the summit. By this enactment, the most noted mountain in the eastern portion of the United States was preserved in its original beauty and grandeur for ourselves and our posterity. One of the considerations moving the General Assembly to the establishment of the park was to relieve this famous mountain from private control, that the people of North Carolina and tourists from all parts of the world might have the privilege of free access. The bill making the appropriation for the establishment of the park was intro- duced and advocated in the Senate by Senator Zebulon Weaver of Buncombe, and in the House by Hon. G. P. Deyton of Yancey. It passed both houses by a large majority. This act of the General Assembly provided for a Commission to purchase and condemn the land for the park. I appointed on this Commission : Messrs. G. P. Deyton of Yancey, E. F. "Watson of Yancey, M. C. Honeycutt of Yancey, Wilson Hensley of Yancey, and T. E. Blackstock of Buncombe. The Commission has agreed with the owners as to the price and has purchased the land for the park except five acres near the summit. To secure this five acres condemnation proceedings have been begun as provided by the statute. The land on the summit, including the grave of Dr. Mitchell, was conveyed about forty years ago to Miss Margaret Mitchell, a daughter of Dr. Mitchell. Her heirs have expressed their willingness to convey this land to the State. ********* It is now proposed to erect on the summit of the mountain a memorial to Dr. Mitchell that is enduring, worthy of the man, appropriate to the place. As soon as sufficient funds be secured I will appoint a commission to determine the design and provide for the erection of this memorial. — From- "Mitchell's Peak and Dr. Mitchell," a pamphlet published by the Governor, December, 1915. Note. — Col. Charles E. Johnson was appointed by the Governor, Treasurer of the Mitchell's Peak Monument Fund, and subscriptions have been received for this fund to the extent of several hundred dollars. Note. — See Supplemental Papers. Governor Locke Craig. Mitchell's Peak, N. C, June 21, 1914. Dear Governor: — Your favor of the 16th inst. received in due course, too late, however, to enable me to keep the appointment you made. And, as I shall not be in Asheville for some days, I take this opportunity of advising you of conditions here, in the hope that you may be able to aid me. Pearley and Crockett are rapidly cutting out the large timber on the west side of the mountain. Since I spoke to them they have suspended operations along the trail and are cutting out the lower timber. I cannot expect them to hold off much longer. All our interests are identical, but this is a business matter with MITCHELL'S PEAK PARK 219 them, and unless some responsible party guarantees the purchase from them of the wood pulp and remaining salable timber (which is a very small quantity) on a stumpage basis, they will resume operations at once, and Mt. Mitchell will be left in the condition indicated in my telegram to you. I would suggest a consultation with Pearley and Crockett, when some means might be devised to bridge over the unpleasant possibilities. I thank you sincerely for your interest in this matter and remain, Yours very truly, J. "W. Dunn. Mb. J. ~W. Dunn, Ashevtlle, K C, June 22, 1914. Mitchell's Peak, N. C. Mt dear Me. Dunn : — I am intensely interested in Mitchell's Peak. It cer- tainly should be protected in its original grandeur and beauty. I have no authority whatever to forbid the cutting of the timber, or to guarantee the present owners any indemnity whatever on condition that they should refuse to cut the timber. I would be gratified, however, to have an interview with Messrs. Pearley & Crockett, and I am confident that the Legislature at the approaching session would make an arrangement satisfactory to them as to timber that they do not cut, and which was necessary for the preservation of the top of the mountain. You might sug- gest to them an interview. Yours sincerely, Locke Craig, Governor. A BILL TO BE ENTITLED AN ACT TO APPOINT A COMMISSION TO ACQUIRE A PORTION OF MOUNT MITCHELL, INCLUDING THE SUMMIT, AND TO PROVIDE FOR THE CREATION OF A PUBLIC PARK FOR THE USE OF THE PEOPLE OF THE STATE OF NORTH CAROLINA. Whereas, the summit ot Mount Mitchell in Yancey County is the greatest altitude east of the Rocky Mountains; and whereas, the head waters of many of the important streams of the State are at or near the said summit, and the forest is being cleared, which tends to damage and injure the streams flowing through the said State from the mountains to the Atlantic Ocean; and whereas, it is deemed desirable that this beautiful and elevated spot shall be acquired and permanently dedicated as a State park for the use of the people of the entire State seeking health and recreation; and whereas, unless the said land is acquired by the State at this time, the cost of acquir- ing it at a later date will be greatly increased, and the watercourses may be damaged and the beauty of the scenery destroyed by removing the growth therefrom, and irreparable damage accrue: Now, therefore, The General Assembly of North Carolina do enact: Section 1. That a commission is hereby created to consist of five prac- tical business men, who shall be appointed by the Governor, and which shall carry out the provisions of this act and shall be known as the "Mitchell Peak Park Commission." Sec. 2. That said commission shall be, and is hereby created a body poli- tic and corporate under the name and style of the "Mitchell Peak Park Com- mission." 220 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Sec. 3. That the said commission shall have the power to fix the time and place of its meetings. Said commissioners shall hold office until the prop- erty hereinafter described shall have been purchased and a deed made to the State of North Carolina, and until they shall have made a report of the same to the General Assembly and shall have been discharged. In the event of the death or resignation of any member of said commission, his successor shall be appointed by the Governor. The said commissioners shall receive no compensation but their traveling expenses, including hotel bills, while act- ively engaged in the work of said commission, and these expenses shall be paid out of the funds hereinafter provided for: Provided, that the said com- mission shall under no circumstances expend or contract to expend a greater amount than that named in this act for the purchase of said land. Sec. 4. The said commission shall convene as soon as practicable and elect a chairman. The said chairman shall from time to time draw a war- rant or warrants upon the Treasurer of the State, which, after being approved and countersigned by the Governor and two other members of the commission besides the chairman, shall be paid by the said Treasurer to the owner of said lands purchased for the said purpose out of any funds not otherwise appropriated. Sec. 5. The total amount to be expended under this act shall not exceed $20,000, and the said sum of $20,000 is hereby designated as a maximum amount to be expended in the acquisition of the said properties; and the said commission is especially charged with the duty of acquiring as much of the lands as is possible for the purpose intended, not exceeding the maxi- mum amount hereinbefore designated. Sec. 6. Out of the funds so appropriated, the said Mitchell Peak Park Commission shall have power as soon as practicable, to acquire, either by purchase or condemnation, so much of Mount Mitchell, including the peak thereof, as they shall deem necessary as a suitable site for the purpose in- tended, and in the event of the purchase of said land, or lands, privately from the owner or owners thereof, the said commission shall take a deed to the State of North Carolina therefor. Sec 7. Whenever from any cause the said commission cannot agree with the owner or owners of the land which they shall select for the purpose of the park aforesaid, as to the price to be paid for the same, or for any part thereof, said land or lands may be taken at a valuation to be made by three competent and disinterested freeholders of the County of Yancey, one of whom, after due notice to the landowner of such proceedings, shall be chosen by the said commission, one selected by the landowner, and those two shall select a third; and in case the landowner refuses to select, then said commission shall select two, and these two shall select a third, and said freeholders, after being duly sworn by a justice of the peace of the county of Yancey, shall at once go on said land and proceed to condemn said land, or lands, and ascertain the sum which shall be paid the owner or owners of said properties, and report the same to the said commission, under their hands and seals, which report, on being confirmed by the said commission and spread upon their minutes, shall have the effect of a judgment against the said Mitchell Peak Park Commission; and upon pay- ing said sum to the landowner, or in the event of an appeal, upon paying said sum to the chairman of said commission to await the result of such appeal, shall pass title to the State of North Carolina of the land so taken: Provided, that if any person whose land is taken for the said purpose, or the said commission be dissatisfied with the valuation thus made, then, and in that case, either party may appeal to the next term of the Superior MITCHELL'S PEAK PARK 221 Court of Yancey County within ten days from the filing of such report; Provided further, that such appeal shall not hinder the commission from taking possession of said property. Sec. 8. The Governor shall have power, upon complaint or upon his own motion, to remove any of said commissioners for negligence of duty or for any conduct unbecoming said commission and inconsistent with his duties under this act. The position of commissioner under this act shall not be construed to be an office within the meaning of Section 7, Article 14, of the Constitution of North Carolina. The said Mitchell Peak Park Commission shall make report to the Governor setting forth all purchases, condemnations and expenditures of every kind under this act. Sec. 9. This act shall be in force from and after its ratification. State of North Carolina Executive Department Raleigh Hon. G. P. Detton, March 31, 1915. Green Mountain, N. C. My dear Mr. Detton : — I have today appointed you one of the Commissioners to buy the State Park, including the summit of Mitchell's Peak, according to the provisions of the act of the last Legislature. I inclose you a copy of the act. The members of the Commission are : Hon. G. P. Deyton, Green Mountain, Mr. E. F. Watson, Burnsville, Mr. M. C. Honeycutt, Burnsville, Mr. Wilson Hensley, Bald Creek, Mr. T. Edgar Blackstock, Asheville. I hope very much that the owners will not charge an extravagant price for this land. The timber near the summit is of little value. The territory included in the park is valuable only as a resort for the public, and should be open to all the citizens of North Carolina, and to all the people of the earth, who wish to visit this famous mountain. I suggest that the Commission meet and organize in Burnsville as early as possible, and proceed with negotiations for the purchase of the park. All of the members of the Commission live in Yancey County except Mr. T. Edgar Black- stock, who lives in Asheville. You men in Yancey can communicate with him. I have appointed on this Commission men who are among the best citizens of the State, with the assurance that they will render the State and the people efficient service. I hope that you will accept this appointment. I know that you are a public-spirited citizen, and have at heart the welfare of the State and of our mountain section. In years to come I feel that the patriotic efforts of those who are connected with the establishment of this park will be remembered with appre- ciation. Your friend, Locke Craig, Governor. Note. — The above letter was sent to each member of the Commission, as follows: E. F. Watson, Burnsville; M. C. Honeycutt, Burnsville; Wilson Hensley, Bald Creek; T. Edgar Blackstock, Asheville. 222 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG State of North Carolina Executive Department Raleigh Messrs. Pearlet & Crockett, March 31, 1915. Black Mountain, N. C. Gentlemen : — I have today appointed the commission to buy the park on the Black Mountain, including the summit of Mitchell's Peak. This is in accordance with and in furtherance of the negotiations had with you last summer. I inclose you a copy of the act under which the park is to be bought, and you will see that the act proposes to carry out our understanding. I greatly appreciate your consideration and generosity in stopping the cutting of the timber on the summit of the mountain. This enabled the State to preserve the mountain in its original grandeur and beauty. I very much hope that you and the commission can readily agree upon the price of your land, and that no condemnation proceedings will have to be resorted to. If such proceedings should be necessary, the value of the land will be arbitrated as suggested in our conver- sation last summer. With the highest regards, and assuring you of my appreciation for the kind- nesses that you have extended to me personally, and for the public spirit that you have manifested, I am, Yours sincerely, Locke Craig Governor. (XI) MOBILIZATION OF THE NATIONAL GUARD MOBILIZATION OF THE NATIONAL GUARD 1. Telegram from War Department ordering mobilization of the National Guard, June 18, 1916. 2. Statement for the press, June 23, 1916. Appointment of Gen- eral Laurence Young as Brigade Commander. 3. Statement for the- press, June 21f, 1916, in regard to further appointments in the National Guard. 4. Telegram to the President, June 28, 1916, and the President's reply thereto. 5. Letter to Senator Simmons in regard to the North Carolina regiments going as one brigade. 6. Order in which the troops were mobilized at Camp Glenn. (1) TELEGRAM FROM THE WAR DEPARTMENT ORDERING MOBILIZA- TION OF THE NATIONAL GUARD ( Telegram. ) Hon. Locke Craig, Governor, Washington, D. 0, June 18. Raleigh, N. C. Having in view the possibility of further aggression upon the territory of the United States from Mexico, and the necessity for the proper protection of that frontier, the President has thought proper to exercise the authority vested in him by the Constitution and laws and call out the organized militia and the National Guard necessary for that purpose. I am, in consequence, instructed by the Presi- dent to call into service of the United States forthwith, through you, the following units of the organized militia and the National Guard of the State of North Caro- lina, which the President directs shall be assembled at the State mobilization point, Camp Glenn, Morehead City (or at the places to be designated to you by the Com- manding General, Eastern Department) for muster into the service of the United States : One brigade of three regiments of infantry, two troops of cavalry, one field hospital, one ambulance company. Organizations to be accepted into the Federal service should have the minimum peace strength now prescribed for organized militia. The maximum strength at which organizations will be accepted, and to which they should be raised as soon as possible, is prescribed in section 2, tables of organization, United States Army. In case any regiment, battalion or squadron now recognized as such contains an insufficient number of organizations to enable it to conform at muster to regular army organization tables, the organizations necessary to complete such units may be moved to mobilization camp and there inspected under orders of the department commander, to determine fitness for recognition as organized militia by the War Department. Circular 19, Division of Military Affairs, 1914, prescribes the organization desired from each State as part of the local tactical division, and only these organi- zations will be accepted into service. It is requested that all officers of the Adjutant General's department, quartermaster corps and medical corps, duly recognized as pertaining to State headquarters, under Table 1, Tables of Organization, Organized Militia, and not elsewhere required for duty in State administration, be ordered to camp as camp staff officers. Such number of these staff officers as the depart- ment commander may determine may be mustered into service of the United States for the purpose of proper camp administration, and will be mustered out when their services are no longer required. Where recognized brigades or divisions are called into service from a State, the staff officers pertaining to these units, under tables of organization, United States Army, will be mustered into service, and also the authorized inspectors of small arms practice pertaining thereto. Except for these two purposes of mobilization — camp service and of the pre- scribed staff service with tactical units — officers of State headquarters under Table 15 226 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG 1, above mentioned, will not be mustered into service at this time. If tactical divisions are later organized tbe requisite additional number of staff officers with rank as prescribed for division staff will, as far as practicable, be called into service from those States which have furnished troops to such divisions. Newton D. Baker, Secretary of War. (2) STATEMENT FOR THE PRESS, JUNE 23, 1916. APPOINTMENT OF GENERAL LAURENCE YOUNG AS BRIGADE COMMANDER Governor Craig announced today that Brigadier General Laurence W. Young will command the First Brigade in the field under the call for North Carolina troops. This is in pursuance to General Order No. 9, dated June 1, 1916. Several months ago General B. S. Royster, Brigade Commander, in accordance with tbe advice of his physician, informed the Governor that his physical condi- tion would not permit his further command of the brigade. At the time that General Royster announced to tbe Governor tbe necessity of bis retirement he recommended General Laurence Young as his successor. At the request of the Governor, General Royster has consented to take charge of the office of Adjutant General, and will assume the duties of tbe position next week. Continuing, the Governor said : "Certainly I regret to lose General Young as my Adjutant General, for be has diligently and ably discharged bis duties. Should we have war with Mexico General Young will make a record that will bring pride to tbe State. He is a soldier by nature and education. But I deem myself for- tunate in being able to secure General Royster to fill this position of Adjutant General. General Royster is a gallant, accomplished soldier, as well as one of the foremost lawyers of the State. There is no man in tbe State that can fill this position better. When General Royster announced several months ago that he could not command the brigade in tbe field on account of his physical condition, it was with deep regret." MOBILIZATION OF TEE NATIONAL GUARD 227 (3) STATEMENT FOR THE PRESS, JUNE 24, 1916, IN REGARD TO FUR- THER APPOINTMENTS IN THE NATIONAL GUARD Governor Craig made the following announcement today: "I have very few appointments to make in the National Guard. The soldiers of North Carolina are already organized. Official positions have been filled by me from time to time as vacancies occurred. The Guard goes into service as an organized body with officers already commissioned. It is only in cases of occa- sional vacancies on account of physical disability that I am called upon to make an appointment, and in most instances for these vacancies appointments are recom- mended by elections in the companies themselves. In all cases of appointment to fill vacancies preference will be given to the officers and soldiers of the Guard who have been identified with it for years, who have labored diligently and unselfishly to build it up. If places of honor are to be filled, these men of the Guard are entitled to them." (4) TELEGRAM TO THE PRESIDENT, JUNE 28, 1916, AND THE PRESIDENT'S REPLY THERETO Raleigh, 1ST. C, June 28, 1916. The President of the United States, Washington, D. C. The National Guard of North Carolina is ready to obey the orders of the President of the United States, and volunteers to go into Mexico or elsewhere as they may be ordered, regardless of the technical provisions of the Army Reorgani- zation Bill. Locke Craig, Governor. The White House Washington Hon. Locke Craig, June 28, 1916. Governor of North Carolina, Raleigh, N. C. My dear Governor Craig : — Thank you for your telegram of this afternoon and for your generous assurance as to the National Guard of North Carolina. Cordially and sincerely yours, Woodrow Wilson. 228 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (5) LETTER TO SENATOR SIMMONS IN REGARD TO THE NORTH CAROLINA REGIMENTS GOING AS ONE BRIGADE State op North Carolina Executive Department Raleigh Senator F. M. Simmons, June 30, 1916. Finance Committee, Washington, D. C. My dear Senator Simmons : — We earnestly hope that the War Department will not break up the North Carolina Brigade by sending the separate regiments to different places. The soldiers would be much better satisfied if tbey were kept together, and I believe that they will do much better service, for if the whole brigade be kept together they will all feel that they represent the State, and will be enthused by a State pride and interest that they would not feel if the brigade were broken up. General Laurence W. Young has been appointed Brigadier General. He is a favorite with all the officers of the brigade, and with all the troops. Since the Spanish War he has engaged in civil occupation enough to make a living, but during that time his life has really been devoted to military duties, and he has made himself a most accomplished soldier. I believe that it would be hard to find a man that was better informed on military tastics, and better equipped as to military affairs than General Young. He has attended all the meetings of the Guard in various parts of the United States, has fought sham battles, has studied the military art, and informed and equipped himself thoroughly. I believe that all the officers of the brigade have signed a request that the brigade be not broken up, and that General Young be retained as the Brigadier General. There will be great dissatisfaction if this is not done. If there is any doubt about the situation, and if I can do anything toward retaining the unity of our brigade, I would like to go to Washington on Monday to see the President if I can, and the Secretary of War. I hope that on receipt of this you will wire me at my expense whether to come or not. I see that New York is making the same contention that North Carolina is, and it may be that the War Department has decided not to break up the brigades. It would certainly, in my opinion, be a mistake in North Carolina. If the War Department has decided not to break up the brigades there is of course no neces- sity for my going to Washington. Please let me hear from you on Saturday. There never was a set of young men that were more enthusiastic and more determined to make a record that would be an honor to the State than are the members of the National Guard of this State. They are anxious and ready to go to the front, and it is really hard to keep them home until the orders come. Please exercise your great influence in seeing that they are kept together. We will all appreciate it. If I can help you to a feather's weight I will do it, and am ready to go at any minute. Your friend, Locke Craig Governor. MOBILIZATION OF THE NATIONAL GUARD 229 (6) ORDER IN WHICH THE TROOPS WERE MORILIZED AT CAMP GLENN First Regiment, North Carolina National Guard, arrived at Camp Glenn, June 25, 1916. Second Regiment, North Carolina National Guard, arrived at Camp Glenn, June 28, 1916. Third Regiment, North Carolina National Guard, arrived at Camp Glenn, July 1, 1916. Cavalry arrived at Camp Glenn, July 1, 1916. Field Hospital No. 1 and Ambulance Co. No. 1 arrived at Camp Glenn, June 26, 1916. Company A, Corps of Engineers, North Carolina National Guard, arrived at Camp Gleim, August 26, 1916. Company B, Corps of Engineers, North Carolina National Guard, arrived at Camp Glenn, September 21, 1916. Note. — The troops being duly mustered into the service of the United States, they were kept at Camp Glenn until September 23, when they were ordered to the Mexican bor- der. They began to move from Camp Glenn on September 23 under the direction of the War Department, and upon their arrival at El Paso they became a part of the Seventh Division, United States Army. (XII) RELIEF OF FLOOD SUFFERERS IN WESTERN NORTH CAROLINA RELIEF OF FLOOD SUFFERERS IN WESTERN NORTH CAROLINA 1. Appointment of general relief committee and of local corrvr- mittees. 2. Statement for the press. 3. Letter sent to counties in flood-stricken district. 4. General relief committee work. 5. Resolutions of committee appointed by Governor Craig from the general relief committee. 6. Letter sent to chairman of each county's working committee. 7. Plan of organization. 8. Statement to the press. (1) APPOINTMENT OF GENERAL RELIEF COMMITTEE AND OF LOCAL COMMITTEES State of North Carolina Governor's Office Raleigh A Proclamation by the Governor To the People of North Carolina: A great disaster has befallen a large region of our State ; hundreds of people are homeless and helpless. At this time I cannot describe the extent of the damage done by the unprecedented floods of July 15, 1916, nor can I undertake to portray the present and prospective suffering. By reason of the fact that Asheville has been cut off from communication with the outside world, I could not be as promptly and adequately informed of conditions as others. But I am now prepared to say that along our western streams, large and small, running eastward from Wilkes on the north to Rutherford on the south, in the mountains, the floods have swept away not only the homes and growing crops, hut even the lands themselves of hundreds, if not thousands, of our fellow men and women. They are in distress and many of them utterly destitute and helpless. Their all has been swept away in a night. Wow, therefore, I, Locke Craig, Governor of the State of North Carolina, am calling upon our generous people to respond to the cry of those who have been so terribly stricken. There is every reason to believe that many will for weeks have to be supplied with the necessities of life in order that they may be sustained until they can find a means of livelihood. It is but right that our entire people should share the burden, but reasonable that the people in regions of the State in which no damage was done, where crops were spared and homes undisturbed, should open their hearts in gracious giving. I understand that a number of local subscriptions have been started and that at least two relief committees have begun work. It is not my desire to interfere with their work. I take occasion, rather, to commend them. At the same time the disaster is so extensive, the work of relief so great, that I feel constrained to appoint a Committee of General Relief, and to authorize it to take subscriptions and to appropriate funds as needs appear. Every dollar shall be accounted for and every penny shall go to relieve actual need. I name the following citizens to constitute this committee: Edward E. Britton, Chairman Raleigh John A. Park Raleigh J. W. Bailey Raleigh E. L. Daughtridge Rocky Mount Julian S. Carr Durham Cameron Morrison Charlotte Santford Martin Winston-Salem A. M. Scales Greensboro 234 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Gerald Johnson Greensboro Nathan O'Berry Goldsboro Walker Taylor Wilmington A. D. Watts Statesville J. J. Farriss High Point M. H. Justice Rutherfordton John Sprunt Hill Durham E. C. Duncan Raleigh George A. Holderness Tarboro Hugh MacRae Wilmington John P. Bruton Wilson Clarence Poe Raleigh H. E. Fries Winston-Salem N. J. Rouse Kinston W. D. Turner Statesville R. M. Miller Charlotte E. B. Crow Raleigh B. F. Kilgore Raleigh James I. Johnson Raleigh James H. Pou Raleigh James R. Young Raleigh T. A. Uzzell New Bern D. Y. Cooper Henderson. Subscriptions may be sent to Edward E. Britton, chairman, Raleigh, N. C. I am sure our people, once they realize the distress of their fellow North Caro- linians, will be quick to pour out their money in this noble cause. Done in our city of Raleigh on this the twenty-second day of July, in the year of our Lord one thousand nine hundred and [State Seal] sixteen and in the one hundred and forty-first year of our American independence. LoCKE CraiG; Governor. By the Governor: May F. Jones, Private Secretary. (2) STATEMENT FOR THE PRESS, JULY 28 Governor Craig reached Raleigh today at 12 :30. He was obliged to travel about eight hundred and fifty miles to get here, coming by Murphy, Knoxville. and Lynchburg. He expressed his great gratification at the liberality of North Carolinians and citizens of other States in giving to relieve the distress caused by the recent floods in the west. "This generosity," he said, "is of the genuine kind — no ostentation about it. The people of North Carolina are giving to the people in distress because they are prompted by a noble sentiment. A great calamity like this offers to those who have, an opportunity to justify their worthi- ness to have. In this time of universal prosperity we will not allow our neighbors and fellow-citizens to suffer in sudden adversity. We do not fully and definitely know the extent of the damage, nor the needs of the people, but this will be ascer- tained as expeditiously as possible. RELIEF OF FLOOD SUFFERERS 235 "It. is certain that demands for relief in many sections are great and imperative. Funds are needed, and needed badly. We must continue to call earnestly upon all the people of the State, with an unfaltering faith that this call will meet with a generous response." Governor Craig said that the committee that he had appointed, with Mr. Edward E. Britton as chairman, had done splendid work, and had done it most earnestly and unselfishly ; that while he was in Asheville he kept in touch with the situation as best he could by telegraph and telephone, and he says that he could not have added anything to the work that has been done by this committee had he been present in Baleigh. Governor Craig stated that the city of Asheville had acted spontaneously and heroically for the relief of sufferers in that community. "At 10 o'clock on Sunday, July 16th," said he, "the waters reached the highest point in the valleys of the French Broad and the Swannanoa. On Sunday afternoon the citizens of Asheville met and raised sufficient money to meet all immediate demands. At 10 o'clock Monday morning there was a mass meeting held in the auditorium, at which $12,000 was contributed. The people were eager to give. The communities in that section were notified that the money contributed by Asheville would be applied to their relief. At this meeting there was no self -exploitation. Everybody was in earnest to meet the situation promptly and completely. Offers for outside assist- ance were politely declined with appreciation. The statement was made that Asheville was able to provide sufficient funds and that assistance from the outside could not be accepted until the people of Asheville had discharged their own obliga- tion. The town of Hendersonville sent word that it would provide for the sufferers at Bat Cave and Chimney Eock. Some relief was sent to these two villages from Asheville, but after the receipt of these messages Hendersonville looked after that section. "North Carolina is really one community — the whole State. "We are loyal to one another too, and this loyalty is not diminished by removal to other States, as evidenced by the sympathy and generosity of North Carolinians who now reside elsewhere. There are sections that cannot provide for themselves. The generosity of neighbors ought not to be taxed too much. The whole State is doing its duty in gladly coming to the relief of the distressed sections. I feel that whatever money is necessary to relieve the suffering in North Carolina will be furnished by the people of North Carolina, who are able to do it, and who are determined to help the ones that have been stricken down by this disaster. "We gratefully appreciate the benevolence manifested by North Carolinians in other States, and by others whose humanity makes them our kindred. We have accepted their gifts, sanctified by sympathy and kindness. "This spirit which has been manifested in our State inspires a feeling of exalta- tion in every man who loves the State and who believes in the nobility of her citizenship. The flood has visited communities with financial ruin, but it has called forth the higher sentiments of humanity whose value cannot be estimated in dollars." 236 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (3) LETTER SENT TO COUNTIES IN FLOOD-STRICKEN DISTRICT State of North Carolina Governor's Office Raleigh August 10, 1916. Dear Sir: — The immediate necessities of the people who suffered in the moun- tain section by the recent flood have, as far as I know, been provided for. The conditions in many places are serious, and many of those who were left destitute must be looked after and helped for several months to come, especially during the winter season. Assurances coming to me from the generous people of North Carolina have convinced me that no one will be allowed to suffer on account of this unprecedented disaster. A considerable amount has already been contributed — altogether, as much as $75,000. The contributions that have come to the central committee have nearly always been accompanied by the statement that more would be given if the necessity of the situation should require. This giving has been spontaneous, without ostentation, and in the genuine spirit of kindness and sympathy. Several organizations have heretofore collected and administered funds. It seems to me most desirable that these funds contributed by the people of North Carolina should be systematically administered by one organization, unified and harmonious. I therefore submit to you the following plan, with the request that you make any suggestion in amendment thereto : 1. The funds contributed by the people of the State to be under the control of the Central Executive Committee at Raleigh and apportioned to the various counties according to their needs. 2. All funds apportioned by the central committee to be administered by a county committee constituted as follows: (1) a citizen of the county appointed by the -Governor; (2) the chairman of the board of county commissioners; (3) a citizen of the county appointed by the relief committee in the county. 3. The citizen appointed by the Governor to be the chairman of the county committee, and administer the fund apportioned to the county in cooperation with the other members of the committee as they may deem proper. 4. The county committee to report to the central committee. The work of relief as stated above will be prolonged for several months. We must provide that it be done systematically and effectively. Our best citizens have been prompt and eager to render service to the distressed, unselfishly and generously. Please let me hear from you. Yours sincerely, Locke Ckaig. RELIEF OF FLOOD SUFFERERS 237 (4) GENERAL RELIEF COMMITTEE WORK Raleigh, August 11, 1916. The General Relief Committee for the Worth Carolina flood sufferers met in the offices of Governor Locke Craig at 12 o'clock, noon, Governor Locke Craig presiding. Judge P. C. Cocke was elected secretary. Upon motion of Cameron Morrison of Charlotte, the Governor was instructed to perfect an organization in each county for the purpose of distributing the State relief funds and the funds to be derived from the Government appropriation. The Governor was instructed to distribute and apply the State relief funds in such manner and in such ways as he should see fit. Major G. A. Youngberg of the corps of engineers of the United States Army, stationed at Charleston, S. C, read a report from the War Department at Wash- ington, in the matter of the work to be done under his direction in ISTorth Carolina. This report dealt with Government relief for the flood sufferers in all the counties of ISTorth Carolina except those counties in the French Broad Valley. Upon motion, Major Youngberg was instructed to confer with the War Department in an effort to have the French Broad Valley section included in the territory to be aided; the French Broad Valley section being in the Tennessee division of the engineering corps, the assistance for this district, it was intended by the War Department, to come from the Knoxville division. Major Youngberg read a copy of the resolution of the Congress of the United States appropriating $540,000 for flood sufferers. Mr. J. A. Evans, representing the Department of Agriculture at Washington, made a report of the manner and method of relief which the Department of Agri- culture was to render to the flood sufferers. Governor Craig, upon motion, appointed a working committee for each county affected by the recent floods. The said co mmi ttee to be composed of the chairman of the board of county commissioners, a member to be appointed by the relief committee of each county, and a member to be appointed by the Governor for each county; the member so appointed in each county by the Governor to be the chair- man of the committee in that county. This committee to have charge of the relief work in the county and to disburse the county's part of the State and Government funds. Mr. E. E. Britton moved that the thanks of this committee be extended to Secretary Baker of the War Department; to Secretary Houston of the United States Department of Agriculture, and their respective representatives, Major Youngberg and Mr. Evans, for their energy, zeal, and patriotism in promptly rendering assistance to the flood sufferers. This motion was unanimously adopted. Upon motion, a committee composed of C. M. Dickson, J. W. Pless, P. C. Cocke, and Henry B. Stevens was appointed by Governor Craig to draft resolutions denoting the appreciation of the General Relief Committee for the contributions made by the citizens of the State. The following chairmen were appointed for each county's working committee: Wilkes C. C. Wright Hunting Creek McDowell J. W. Pless Marion Burke J. Ernest Erwin Morganton Caldwell W. C. Newland Lenoir 238 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG Ashe C. M. Dickson Silas Creek Surry Alexander Chatham, Jr Elkin Avery Frank Edmondson Newlands Rutherford M. H. Justice Rutherfordton Transylvania John C. McMinn Brevard Henderson C. E. Brooks Henderson ville Yadkin W. A. Hall Yadkinville Watauga B. B. Dougherty Boone Alleghany R. A. Dough ton Sparta Alexander J. H. Burke Taylorsville Madison J. R. Sams Mars Hill Buncombe J. E. Rankin Asheville Mitchell W. L. Lambert Bakersville Polk J. C. Fisher Tryon Catawba W. A. Self Hickory Davidson Lee V. Phillips Lexington Davie M. J. Hendricks Cana Gaston R. K. Davenport Mount Holly Hickory Nut Gap Highway District Dr. Joseph Hyde Pratt Chapel Hill List of those present : T. L. Sigmon C. M. Dickson R. W. Collett F. A. Edmondson Judge H. B. Stevens W. S. Shytle W. J. Byerly A. C. Avery, Jr. E. Carl Duncan and Governor Craig. Upon motion, the meeting adjourned. W. M. McNairy A. G. Hendren B. W. Kilgore Maj. G. A. Youngberg E. E. Britton F. M. Rennells J. H. Allen B. F. Davis Judge P. C. Cocke C. C. Wright J. A. Evans C. R. Hudson W. C. Newland Cameron Morrison W. R. Hill Nathan O'Berry W. J. Martin J. W. Pless P. C. Cocke, Secretary. (5) RESOLUTIONS OF COMMITTEE APPOINTED BY GOVERNOR CRAIG FROM THE GENERAL RELIEF COMMITTEE "Whereas the appeal of the General Relief Committee to the people of ISTorth Carolina for aid for the flood sufferers has met with a patriotic response ; and Whereas funds have been generously contributed and services volunteered: Therefore, Be it Resolved, That for the people of the flood stricken district who are now almost helpless to speak and act for themselves, we, their representatives, here desire to express their heartfelt thanks. The generosity comes so spontaneously and freely that the sufferers accept it without wounds to the feelings of a proud people. These gifts wax rich because the givers are kind. C. M. Dickson, J. W. Pless, P. C. Cocke, Henby B. Stevens, Committee. RELIEF OF FLOOD SUFFERERS 239 (6) LETTER SENT TO CHAIRMAN OF EACH COUNTY'S WORKING COMMITTEE State of North Carolina Governor's Office Raleigh August 15, 1916. My dear Sir: — A conference was held in my office on trie 11th. of August, attended by representative citizens from the counties damaged by the recent floods. After consultation with the gentlemen present, the plan of organization for the collection and disbursement of funds was adopted. I enclose you the plan. In accordance therewith I have appointed you chairman of the committee in your county. I hope that you will confer with the chairman of the board of county commissioners at once, and will see that the relief committee of your county appoint a member of your committee as provided in the plan of organization. Major Youngberg of the War Department was present at the conference in my office on August 11th. He has been placed in charge of the work east of the Blue Ridge, and I am expecting that the War Department will enlarge his jurisdiction so as to include the counties west of the ridge. Major Youngberg stated at the conference on August 11th that he had full authority from the Secretary of War to disburse this money under the provisions of the joint resolution adopted by Congress. He further stated that he would recognize the chairmen of the committees that I have appointed in the various counties as suitable persons through whom to disburse the money; that he would deposit with each one of them at any time as much as a thousand dollars for the expenditure of work on the roads that have been destroyed ; that they can proceed at once to the employment of men at the current rate of wages in each neighbor- hood to work upon the public roads ; that such bills would be promptly paid. I do not understand that Major Youngberg said, or meant to say, that a thousand dollars was the total that he would disburse for the benefit of any county. If the necessities require, more than that would be allotted to each county ; but he urged the careful and economical expenditure of this money. There is no reason why work should not begin upon the damaged roads without delay by all of the men in each community who desire employment. I hope that you will immediately begin work in your county, if the condition of the roads demand it, and that you will act, according to the enclosed plan of organization, in cooperation with the chairman of the board of county commissioners, and with the committeeman to be appointed by the relief committee of your county. Please keep me informed as to the needs of those who have been left destitute or in a condition to be assisted. You may be assured that the whole State recognizes with grateful appreciation the services which you are willing to render to the unfortunate people in this time of calamity. With the highest regards, Yours sincerely, Locke Craig. 240 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (7) PLAN OF ORGANIZATION 1. The funds contributed by the people of the State to be under the control of the Central Executive Committee at Raleigh, and apportioned to the various coun- ties according to their needs. 2. All funds apportioned by the central committee to be administered by a county committee constituted as follows: (1) a citizen of the county appointed by the Governor; (2) the chairman of the board of county commissioners; (3) a citizen of the county appointed by the relief committee in the county. 3. The citizen appointed by the Governor to be the chairman of the county com- mittee, and administer the fund apportioned to the county in cooperation with the other members of the committee as they may deem proper. 4. The county committee to report to the Central Committee. NOTE. — On August 14th the Governor made a personal investigation of the flood- stricken districts, accompanied by Chairman Edward E. Britton and Mr. George Holder- ness of the General Relief Committee of the State. They were met at Greensboro by General Superintendent Simpson of the Southern Railway, who tendered them the use of his private car and accompanied them on their tour. The party visited North Wilkes- boro, Morganton, Marion, and Old Fort, and made various short stops along the route. At all stops they were welcomed by crowds who were eager to hear the Governor's mes- sage of cheer and assurance of help from the State and Federal Governments. Engineers were sent wherever needed, and the work of rebuilding and repairing the roads was immediately begun everywhere. Thousands of dollars were paid into the general relief fund by the people of the State, and this was added to by an appropriation by the Federal Government. (8) STATEMENT TO THE PRESS Asheville, August 16, 1916. Governor Locke Craig arrived in Asheville Wednesday night. He had made a tour of the districts in the State damaged by the high waters of July 16th. He says that he traveled fifty or sixty miles along the Yadkin River; that all of the crops on the fertile bottom-lands of that stream have been destroyed; that the land itself in many places had been swept away. He said that along his whole journey of the Yadkin he saw but one man at work in the field. There are no fields there to work in. The valley is a barren waste. The Catawba River was just as destructive as the Yadkin, if not more so. Immense landslides were washed out of the sides of the Blue Ridge, descending like mighty avalanches, crushing everything before them. There must have been on the Blue Ridge at this time a multitude of water-spouts. "I have never seen," said he, "a more beautiful nor a better cultivated country than was the North Cove of McDowell County on the North Fork of the Catawba. The lands were fertile, the farmers took delight in their beautiful fields. Now this valley is a desert of sand and rock. Fine residences were swept away and crushed; the humble homes of the poor are now in drifts along the banks of the RELIEF OF FLOOD SUFFERERS 241 stream. In hundreds of instances everything that the tenant-farmer had was lost — his stock, his house, his furniture, his crop. He escaped with nothing except the clothes that the family wore. Many instances related to me are most pathetic. "One man with eleven children got his family to the hill in safety. He went back after something. The chimney of the house was knocked down by a drift; it fell on him and killed him. The wife and the brood of children stayed in the rain and darkness on the hillside all night, calling and trying to locate each other and the father. "In another case an infant was torn from the arms of its mother. Its little body was found in a drift twenty miles down the Catawba. "They told me of another case where a baby and a larger sister were caught by the waters and swept down into a drift, where they remained until late the next day. The baby was well and unharmed ! the sister, who held the baby in her arms, died shortly after the rescue. "Another man lost everything he had — home, land, and stock — except one crib of corn. He told his sons to keep five bushels for the family and to divide the other among the neighbors. "Many similar accounts of tragedy and sacrifice are given by the people in this stricken territory. "They have gone to work on their public roads, using the money appropriated by the General Government. The relief committees are doing a magnificent and unselfish work in all the counties. Every one is eager with sympathy and the helping hand, and ready to give as necessity requires. "Mr. Edward E. Britton, chairman of the relief committee of the State, and Mr. George Holderness, of Tarboro, accompanied me through the whole trip. Mr. Britton has done his work splendidly. He has omitted no detail. Mr. Holderness is one of the leading business men of eastern North Carolina. The people to whom he went appreciated his coming and his words of encouragement and sympathy. Large crowds greeted us at Wilkesboro, Morganton, Marion, and at places where the train stopped. "Mr. R. E. Simpson, general superintendent of the Southern Railway, carried us in his private car. He took personal supervision of the rebuilding the road from Winston-Salem to Wilkesboro. On the Sunday of the flood, at the head of his wrecking crew, he waded on foot through the mud and water, ankle deep to waist deep, from Donnaha to Wilkesboro, a distance of sixty miles, employing everybody along the way that would work, organizing squads to open the railroad as soon as possible, regardless of expense. He did open his road in ten days. "The Southern has shown the finest spirit of enterprise and determination in rehabilitating its destroyed lines. "I drove yesterday afternoon from Old Fort to Ridgecrest in a buggy. I understood that a work train would go over the road last night. "The C. C. and 0. Railroad, from Marion on to Johnson City, was severely injured. I do not know how much it suffered, but I have understood that they are working to build it again, and have thousands of men employed and the most improved machinery. They tell me that they have shown an energy and determina- tion similar to that exhibited by the Southern. "So far as I know, all cases of necessity have been ministered to in the stricken country. The winter is coming on. The money for relief continues to come in. If there be demands for larger amounts, I will let the people of North Carolina know it, and I am sure that they will come to the rescue." 16 (XIII) FISHERIES COMMISSION APPOINTMENT OF FISHERIES COMMISSION BOARD Until the present year the regulation of the fisheries of the State has been local, and by means of acts relating to fisheries that have affected simply local areas. The establishment of the Fisheries Commission for the State of North Carolina by the General Assembly is a recognition of the fact that this great industry is not merely of local interest, but of interest to the entire State as one of her greatest resources. Similar acts relating to the fisheries have been considered by previous General Assemblies, and in several instances came very near passing both houses. Governor Craig became interested in such an act at the beginning of his administration in 1913, and advocated a bill to establish a fisheries commission that was introduced in the General Assembly of that year. During the next two years he manifested in many ways his continued interest in the fisheries of the State, and it was his opinion that the best results in regard to their conservation, protection, and increased value were dependent upon an adequate law that would affect the State at large. He favored the bill that was introduced in 1915, and assisted in every way to bring it before the General Assembly. This bill authorized the Governor to appoint a fisheries commission board, con- sisting of five members, at least three of whom should be from the several fishing districts of the State. The General Assembly passed this bill, and it was ratified on March 4, 1915, and is entitled "An act to establish a Fisheries Commission to protect the fisheries of Worth Carolina." It will be found in chapter 84, page 102, Public Laws of 1915. In accordance with the provisions of this act the Governor, on April 7, 1915, named the following members as the Fisheries Commission Board : E. Chambers Smith, of Wake County For a term expiring June 1, 1917 A. V. Cobb, ot Bertie County For a term expiring June 1, 1917 F. T. Winslow, of Perquimans County... For a term expiring June 1, 1919 W. M. Webb, of Carteret County For a term expiring June 1, 1919 E. H. Freeman, of New Hanover County. For a term expiring June 1, 1919. The Governor recommended to this board that they elect Mr. H. L. Gibbs, of Hyde County, Fisheries Commissioner. Mr. Gibbs had previously held a position as Shell-fish Commissioner, and had made good in that place. The Commission met and organized, electing Mr. E. Chambers Smith chairman and Mr. A. V. Cobb secretary. Mr. H. L. Gibbs was elected Fish Commissioner. At a meeting of the National Association of Fish Commissioners held in Wil- mington, N. C, April 19, 1915, Hon. William C. Redfield, Secretary of Commerce, stated that in the passage of the act establishing the Fisheries Commission in North Carolina for the protection of the fisheries of the State, North Carolina now has the best fisheries act of any State in the Union. He further stated as his opinion that the full benefits of the act could not be obtained in a year or two, and, there- fore, it should be kept in force, and nothing done to repeal it, as by it the State would derive practically all the benefits that the Governor and others interested in its passage believed would accrue from it. (XIV) STATE HIGHWAY COMMISSION APPOINTMENT OF MEMBERS OF THE HIGHWAY COMMISSION The good roads movement in North Carolina was given such an impetus during the administration of Governor Craig that it has become a matter of vital interest to practically the entire State. The Governor was instrumental in bringing before the Legislature the need of a State highway commission. The act creating this commission was passed by the General Assembly of North Carolina in 1915, and is one of the most important and constructive acts passed by them in the past four years. This act is entitled "An act to create a State Highway Commission," and will be found in chapter 113, page 186, of the Laws of 1915. It was ratified on the 5th of March, 1915. The act provided, that the Governor should appoint on the said commission a citizen from the eastern part of the State, one from the central, and one from the western. It further provided that one of these appointees should be a member of the minor- ity political party. Accordingly, on March 13, 1915, the Governor appointed the following as members of the State Highway Commission : Hon. E. C. Duncan of Carteret County, Col. Bennehan Cameron of Durham County, Hon. Guy V. Roberts of Madison County. The act further provided that the Governor designate as members of this com- mission a professor of the University of North Carolina and a professor of the A. and M. College. He accordingly appointed, on March 13, 1915 : Prof. Marvin Hendricks Stacey of the University of North Carolina, Prof. W. C. Biddick of the College of the A. and M. Arts, Prof. M. H. Stacey, later resigned, and Prof. T. F. Hickerson of the University of North Carolina was appointed in his stead. The act further provided that the Governor should be a member of the com- mission, and also the State Geologist. Therefore the State Highway Commission, as constituted by the act of the Legislature and by appointment of the Governer, was composed as follows: The Governor, Dr. Joseph Hyde Pratt (State Geologist), Prof. T. F. Hickerson, Prof. W. C. Biddick, Hon. E. C. Duncan, Col. Bennehan Cameron, Hon. Guy V. Boberts. The first meeting was held on March 21, 1915, in the office of the Governor, who called the meeting to order. It was organized by the unanimous election of the Governor as chairman and Dr. Joseph Hyde Pratt as secretary. 250 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG The work which this commission has been able to do since its organization has proved conclusively its value to the State in the general road work. During his administration Governor Craig has been closely identified with the road work of the State, and he has assisted in every way possible in obtaining results from the various road bills that were passed by the General Assemblies of 1913 and 1915. He advocated and urged the passage of the bills authorizing the use of the State's prisoners in the construction of public roads — notably in the construction of the Hickory Nut Gap Highway in Henderson County and links of the Central Highway in McDowell County and in Madison County. (XV) SUPPLEMENTAL PAPERS Note. — Public papers issuing from the office of the Governor after the preceding mat- ter had gone to press. SUPPLEMENTAL PAPERS 1. Employment of additional counsel in suit of Republic of Cuba v. State of North Carolina. 2. Cuba withdraws her application to file suit in the United States Supreme Court, and message of the Governor an- nouncing the fact to the General Assembly. 3. Resolutions of the General Assembly in regard to withdrawal of petition by the Republic of Cuba, and expression of appre- ciation for services of Senator Overman. 4. Appropriation from earnings of the State's Prison to families of prisoners. Statement for the press, December 22, 1916. 5. General Julian S. Carr requested to act as chairman and form committee for erection of monument on Mitchell's Peak. Statement for the press, December, 1916. (1) EMPLOYMENT OF ADDITIONAL COUNSEL LN SUIT OF REPUBLIC OF CUBA V. STATE OF NORTH CAROLINA (Telegram) Governor Locke Craig, Washington, D. C, January 2, 1917. Raleigh, N. C. Think it important to employ Mr. Charles Henry Butler to appear in the bond ease. Will appear for a nominal fee, not to argue ease in the Supreme Court, but in bringing out certain information which in my judgment will absolutely settle the matter favorably to the State, on account of his association with certain diplomats here. He has already gotten certain valuable information, but does not wish to go further unless nominally employed. Lee g_ Overman. (Telegram) Senator Lee S. Overman, Raleigh, U. C, January 2, 1917. Washington, D. C. I authorize and request you to employ Mr. Charles Henry Butler in the bond case on such terms as to you may seem just and proper. Locke Craig Governor. (2) CUBA WITHDRAWS HER APPLICATION TO FILE SUIT IN THE UNITED STATES SUPREME COURT, AND MESSAGE OF THE GOVERNOR ANNOUNCING THE FACT TO THE GENERAL ASSEMBLY (Telegram) Governor Locke Craig, Washington, D. C, January 5, 1917. Raleigh, N. C. Being informed, from the recent debate on the floor of the Senate, for the first time of the real character of the North Carolina repudiated bonds, the Cuban Government informed me this morning that these bonds were donated by American bondholders to a charitable institution in Cuba and not to the Cuban Government, and that the Republic of Cuba had revoked the decree authorizing the suit against the State of North Carolina to validate these bonds. Lee S. Overman. 254 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (Telegram) Goveenoe Locke Ceaig, Washington, D. C, January 5, 1917. Raleigh, N. C. The following is the decree issued by President of the Republic of Cuba referred to in my conversation with you over the 'phone this afternoon : "The minister of Cuba to the United States is authorized to make public that the President of the Republic of Cuba has dictated a decree in date of January 4, 1917, the more important part of which is as follows: " 'Whereas, the necessary claim for the payment of said bonds and coupons has been presented to the Supreme Court of the United States; " 'Whereas, by the terms in which the question is presented the Government does not hold convenient to its interests and ends to continue the suit begun against the State of North Carolina for the payment of said bonds and coupons:' "At the proposal of the Secretary of Justice I resolve to revoke and leave without force the decree, No. 1438, of July 24, 1916, and therefore, without effect the appointment therein made, as attorneys, of Messrs. Marcus H. Burnstine and Guillermo Portela Y. Moller, to whom this shall be made known, to the proper objects and consequences. "The Secretary of Justice is encharged with the execution of this decree." The Minister of Cuba to the United States is also authorized to state that the claim has been made only by the Department of Public Health and Charities, though, according to law the President and the Secretary of Justice were called upon to give the powers of attorneys for the presentation of the claim. Lee S. Oveeman. State of !N~oeth Caeolina Executive Depaetment Raleigh To the Honorable, the General Assembly of North Carolina: I have the honor to inform you that President Menocal of the Republic of Cuba has issued a decree ordering the withdrawal of the petition which the Repub- lic of Cuba recently filed in the Supreme Court of the United States with the view of enforcing the payment by the State of North Carolina of Reconstruction Bonds amounting to more than two million dollars. I have received from Senator Overman the following telegram : "Being informed, from the recent debate on the floor of the Senate, for the first time of the real character of the North Carolina repudiated bonds, the Cuban Government informed me this morning that these bonds were donated by American bondholders to a charitable institution in Cuba, and not to the Cuban Government, and that the Republic of Cuba had revoked the decree authorizing the suit against the State of North Carolina to validate these bonds." The decree of President Menocal is as follows : SUPPLEMENTAL PAPERS 255 "The minister of Cuba to the United States is authorized to make public that the President of the Republic of Cuba has dictated a decree in date of January 4, 1917, the more important part of which is as follows: " 'Whereas, the necessary claim for the payment of said bonds and coupons has been presented to the Supreme Court of the United States; " 'Whereas, by the terms in which the question is presented the Government does not hold convenient to its interests and ends to continue the suit begun against the State of North Carolina for the payment of said bonds and coupons.' "At the proposal of the Secretary of Justice, I resolve to revoke and leave without force the decree, No. 1438, of July 24, 1916, and therefore, without effect, the appointment therein made as attorneys, of Messrs. Marcus B. Burnstine and Guillermo Portela Y. Moller, to whom this shall be made known, to the proper objects and consequences. "The Secretary of Justice is encharged with the execution of this decree. "The minister of Cuba to the United States is also authorized to state that the claim has been made only by the Department of Public Health and Charities, though, according to law, the President and the Secretary of Justice were called upon to give the powers of attorneys for the presentation of the claim." On Tuesday, the 2d day of January, Senator Lee S. Overman, of Worth Caro- lina, introduced a resolution in the Senate of the United States for the purpose of instituting an inquiry to ascertain how and from whom the Republic of Cuba secured these bonds. In his remarks to the Senate on the resolution, Senator Overman strongly set forth the lawless constitution of the General Assembly that provided for their issue, and the dishonesty and debauchery of the whole scheme. The discussion by Senator Overman on the floor of the Senate gave wide pub- licity to the character of the bonds, to their dishonor and repudiation by the State of North Carolina. When, from this discussion, the Government of Cuba became informed of the facts, the President of Cuba dictated the decree above set forth, revoking the authority for bringing the suit against the State of North Carolina, and directing that the petition be withdrawn. We are deeply gratified that the Eepublic of Cuba has refused to participate or be a party to the methods that have been employed by the holders of these dis- honored bonds. We have had an abiding interest and fraternal feeling for the people of Cuba, and in the war for her emancipation our soldiers bore a conspicu- ous part. With pride and gratification we have watched the development of the Island Eepublic, and rejoice now that she has generously and gladly removed all cause of any estrangement between us. We hoped from the beginning that the Republic of Cuba was imposed upon as to the facts of these bonds before filing this petition in the Supreme Court of the United States. We rejoice that Cuba, as the States of the Union, after ascertaining the facts, has refused to be a party to the unrighteous transaction. The attorneys for the State were confident of prevailing in the action before the Supreme Court of the United States if tried to a conclusion. They had pre- pared the case for presentation with diligence and ability, and had filed briefs which gave evidence of profound thought and of long and thorough research. 256 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG The determination of the Republic of Cuba to withdraw this action accom- plishes substantially what we would have secured by a favorable judgment in the Supreme Court. By the action of Cuba we have obtained this satisfactory result without the uncertainty and large expense of a lawsuit. The State of North Carolina acknowledges with gratitude the high sense of duty of Senator Overman to her, and his valuable services in this situation fraught with anxiety and danger. The resolution and the discussion by him in the United States Senate, and the subsequent withdrawal of the action by the Republic of Cuba, has given international publicity to the invalidity and the dishonor of these bonds. This action by Senator Overman is characteristic of the alertness and devotion of the State's representatives at Washington to her every interest. Locke Craig, January 5, 1917. Governor. (3) RESOLUTIONS OF THE GENERAL ASSEMBLY IN REGARD TO WITH- DRAWAL OF PETITION BY THE REPUBLIC OF CUBA, AND EXPRESSION OF APPRECIATION FOR SERVICES OF SENATOR OVERMAN Resolved by the House of Representatives, the Senate Concurring: Whereas, we learn with much gratification through the message of his Excel- lency, the Governor of Worth Carolina, that his Excellency, Mr. Menocal, Presi- dent of the Republic of Cuba, has dictated a decree withdrawing the petition filed by the Republic of Cuba in the Supreme Court of the United States for the pur- pose of enforcing the payment by the State of North Carolina of more than two million dollars of "Reconstruction Bonds"; and Whereas, this action by the Republic of Cuba was taken voluntarily and promptly as soon as the Republic of Cuba became acquainted with the character of the bonds, and the circumstances under which they were isssued ; Now, therefore, be it Resolved: Section 1. That we hereby tender to our sister Republic of Cuba our profound thanks for her patriotic action touching this matter so important to the interests of the State of North Carolina. Sec. 2. That we hope that the cordial relations between the Republic of Cuba and all of the States of the Union may continue to the welfare of both countries. Sec. 3. That we hereby tender to Senator Lee S. Overman our profound thanks, and an expression of our admiration for his patriotic and successful services ren- dered the State of North Carolina in bringing to an end satisfactory to the State this lawsuit brought by the Republic of Cuba. In the General Assembly read three times and ratified this the 5th day of Jan- uary, 1917. SUPPLEMENTAL PAPERS 257 (4) APPROPRIATION FROM EARNINGS OF THE STATE'S PRISON TO FAMILIES OF PRISONERS. STATEMENT FOR THE PRESS, DECEMBER 22, 1916 Governor Craig made the following statement : "The Board of Directors of the State's Prison have passed a resolution appro- priating a sum of money necessary to give ten dollars to the dependent and needy families of the prisoners confined in the State's Prison. This resolution was passed by the unanimous vote of the Board of Directors, on the recommendation of the Governor. "During my administration the State's Prison has been more prosperous and successful, I believe, than ever before. It has made clear, above all expenses of every kind, about $400,000. The State gets the benefit of this large surplus. These net earnings of the prison have been due to wise and economical management, and have been earned by the labor of the prisoners. "The farm has been managed well, and has succeeded beyond precedent. Many prisoners have been hired out to the Hardaway Construction Company, at the price of $1.50 and $2 a day, under the supervision of the prison. "While the prisoners have been earning this money for the State the dependent families of most of them have been in hard circumstances for the necessities of life. It seems to me but just, and it seemed to the Prison Board but just, that a small sum should be appropriated by the Board and donated to the dependent families who are in need. A large amount could not be given to each family — it would aggregate too much, and then it might be wasted. Under this resolution six hundred and fifteen families will be aided, making the total of $6,150. "The hardships of winter press upon the poor. "In this time of universal prosperity, in these days of general rejoicing and benevolence this gift from the Directors of the Prison Board will relieve some suffering in the lowly homes of the unfortunate, and may be to all a testimonial that the State remembers them in sympathy. "The appropriation of this money made by the Prison Board may be some stretch of legal authority, but every citizen of this State can be assured that if the Legislature should disapprove of this appropriation, or, if by legal process, any citizen of this State should demand its return to the treasury of the prison, every dollar of it will be returned with promptness. "I will bring this subject to the attention of the General Assembly, and make recommendations in accordance with the action of the Board of Directors of the State's Prison, with the view that the subject may be systematically managed." The Governor stated that he would further recommend to the General Assem- bly that the Directors of the State's Prison retain a sufficient amount of the earn- ings of the prison to construct a modern prison at the State farm, equipped for the best management and care of the prisoners. 258 LETTERS AND PAPERS OF GOVERNOR LOCKE CRAIG (5) GENERAL JULIAN S. CARR REQUESTED TO ACT AS CHAIRMAN AND FORM COMMITTEE FOR ERECTION OF MONUMENT ON MITCHELL'S PEAK. STATEMENT FOR THE PRESS, DECEMBER, 1916 Governor Locke Craig yesterday appointed Gen. Julian S. Carr, of Durham, chairman of the Mitchell Monument Committee. Under this commission General Carr will have complete management and control of the building of a monument to Dr. Elisha Mitchell on the summit of the mountain which hears his name. The General will, if he desires, appoint a committee composed of such persons as he may select, and to the number that he may deem advisable, to assist him in securing the monument, the design for it, and the erection of it. "I am delighted that General Carr has consented to take charge of this work," said Governor Craig yesterday. "It would not be too much to say that he is the most generous and public-spirited citizen of the State. He has always been most generous to every noble purpose, and all the people of North Carolina love and admire him. "Since he has consented to undertake the building of this monument, we all know that it will be done, and most handsomely done. This mountain is the most conspicuous place in eastern America. Tens of thousands of tourists are visiting it every summer. The number will rapidly increase as the facilities of transporta- tion are improved, and as the surpassing grandeur of the mountain becomes better known. "General Carr is a native of Chapel Hill, a graduate of the University of North Carolina, at which Dr. Mitchell did his life-work, and won his fame. While professor at the University Dr. Mitchell explored the mountains of western North Carolina in connection with his teaching of geology, and ascertained that Mount Mitchell was higher than Mount Washington, and the highest land east of the Mississippi. "When Dr. Mitchell lost his life on the mountain General Carr was a lad living at Chapel Hill. He often saw the great old doctor, and knew of his ability and fine personality. General Carr has always been a devoted son of his alma mater and an admirer of Dr. Mitchell. The erection of this monument on Mitchell's Peak will be to him a task of love and patriotism. He will be identified with this place and this monument, and the people of North Carolina will acknowledge their debt of gratitude. The monument will preserve from any possible desecration the grave of Dr. Mitchell, and will stand as a suitable memorial on this sublime height." $> *Mi 3& A i