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To the Honorable the Senate and House of Representatives :

In consequence of the recent decision of the Supreme Court of South Carolina (to be found on pages 211-214 of this Report), the Railroad Commissioners respectfully call the attention of your honorable bodies to the great hardship to railroads, which are wholly within this State, in carrying out the provisions of the law as it now stands in regard to freight traffic.

The law provides in Section 1442, that "it shall be unlawful to charge, collect, or receive, for the transportation of any passenger or freight of any description, for any distance within this State, the same or a greater amount of toll or compensation than is at the same time charged, collected, or received for the transportation of any passenger of the same class, or like quantity of freight of the same class, over a greater distance of the same railroad."

Railroads have been built to the interior of South Carolina, running to our State line through parts of other States. Under the decision of the Supreme Court, traffic over such lines from one point in South Carolina to another point in the same State, passing through part of another State, is inter-State commerce, and as such the regulation of it is not within the jurisdiction of South Carolina or its Railroad Commission.

It will be readily perceived that it is unjust to require railroads lying wholly within the State, reaching the same points as these interState roads, to make rates under our law which would practically shut them out from such territory, as they are not allowed to charge "the same or greater toll," &c., for a shorter than for a longer distance. The Commission respectfully submits, whether the difficulty may not be obviated by striking out the words, "the same or," wherever they occur before the word "greater" in Section 1442, General Statutes.

The Commission, in view of the early meeting of your honorable bodies, have allowed rates to be maintained by roads lying wholly within the State which are not in strict conformity to the law, believing that it is not the intention of the Legislature to impose such restrictions on those roads as would deprive them of a share of the business to points in South Carolina reached by them, as well as by roads passing partly through other States.

It is further recommended that your honorable bodies pass an addition to the Railroad Law of the State, requiring that notice of changes of passenger schedules or time tables be published at least three days before they go into effect.

There seems to be a doubt on the part of some of the railroad corporations doing business in South Carolina, as to whether or not the

propor

amendments to the General Railroad Law, passed by your honorable bodies at their last session, and known as Sections 1451a and 1451b, confer upon the Railroad Commission power to control joint rates within the State over two or more roads, and to prescribe the tion of such joint rates that each road should receive. The Commission would respectfully ask your honorable bodies to more clearly define the provisions of these amendments during your session of 1889.

COMPLAINTS AND CORRESPONDENCE.

The following letters and complaints, &c., are published for the information of all interested.

Special Examination of the Port Royal and Augusta Ry., Mar. 18, 1889.

In consequence of the many complaints published in the daily papers of the State in regard to what was stated to be the bad and dangerous condition of this road, the Commission made a careful examination of the entire line.

From the Savannah River to Allendale, the road is now laid in good steel rails, 56 to 63 lbs., with the exception of about mile near Ellenton and mile near Allendale, and a few laminated rails were observed near Beech Island. From Allendale to mile south of Almeda is laid in iron fishbar, and the road is not in good order-particularly at points near Brunson's and Hampton, there is some very bad track. At Almeda, and along the track south of same, about 3 miles of 631⁄2 lb. rail is distributed, and is being laid as fast as is practicable. From mile south of Almeda to Early Branch, new steel 631⁄2 lb. rail of an excellent pattern has been recently laid, and the track is in good order. From Early Branch to one mile south of Yemassee, with the exception of mile of 633 lb. rail, is laid in 56 lb. steel rail, all of which is in excellent order. From one mile south of Yemassee to Coosaw is laid in old iron chair rail, in many places badly laminated; it is, however, well timbered, and very securely spiked. From Coosaw to within one mile of Beaufort is good 56 lb. steel rail in good order. From one mile north of Beaufort to Port Royal is iron fishbar and chair rail, and the track is not in good order along this section.

The trestles are, for the most part, in excellent condition, many of them having been entirely rebuilt within past two years, in accordance with the excellent standard adopted by this system. Defects were noted at No. 36 E (Holly Creek ?), where the bents, with one exception, were in good order; but the entire superstructure needs rebuilding. Upper Three Runs will require considerable repairs during the coming summer.

Bentley's has standard bents and chords, but will need in course of next six months new flooring and guard rails. Whale Branch, on northern end, will need some repairs to superstructure during the coming summer, but, on the whole, is in good order. Salt Water is only in fair order, and will need some repairs at no distant day. Ely's is in good order, except as to alignment, which needs some attention. It was noted that in some places the drainage was defective, particularly at points between Allendale and Almeda; thorough ditching should be done along this portion of line, in order to secure and keep up a good road-bed.

Several accidents to freight trains have occurred lately, and causes of same were investigated as far as practicable. It was found that the most serious were at a point near Beaufort, where ten cars were derailed, but none broken up; and although the cause cannot be definitely ascertained, it was in all probability due to a broken truck; one near Ellenton, where two cars were broken up, and known to be caused by a truck breaking; and one on Whale Branch trestle (about the middle), caused by a car loaded with fertilizer breaking in half. This last tested thoroughly the strength and security of this trestle (upon which no repairs whatever were necessary in consequence of the accident), and attention is called to the fact, that the excellent guard rail on same, which is securely spiked on each tie, was the means of saving nearly the entire train from being precipitated into the water.

Work is apparently being pushed with considerable activity along this road; three bridge gangs are steadily employed, and the section hands average more than a man to the mile. The protracted spell of rainy weather (unprecedented in the history of this road) has not only prevented steady continuance of work, but is the cause in some places of the bad condition of the road, which cannot be worked on without making matters worse, until the weather becomes settled.

A large number of new ties are being distributed along the line, and will be placed in the track during the next few months.

No accidents have occurred to the passenger trains, and no lives have been lost, and no one injured, in those occurring to the freight traffic. The schedules of passenger trains seem to be arranged with due regard to safety, running with great care over such portions of the road as are in bad order, and the authorities were found to be fully alive to the necessity of pushing forward the betterment of the road as fast as practicable.

To the Railroad Commission of South Carolina, Columbia, S. C.

SAVANNAH, GA., March 16th, 1889.

GENTLEMEN: Seeing that your attention has been called to the condition of the Port Royal and Augusta

Railway in Hampton County, I beg leave to give you, as briefly as possible, an explanation of the difficulties under which that road is laboring.

As you are well aware, the road has but a light traffic, and is peculiarly expensive to maintain on account of its numerous trestles crossing the Savannah River and its tributaries, and the salt water creeks and marshes lying between Port Royal and the main land. In the valley of the Savannah River miles of embankment has been practically destroyed twice within the last eight months. The trestles crossing the salt water creeks and marshes require piles 50 and 60 feet in length, and these piles demand frequent renewals on account of the teredo. The terminal facilities at Port Royal also expose an enormous amount of piling to decay and the action of the worm. The stockholders of that road have never received a dollar in their lives, and the income bondholders but a single coupon ten years ago. Every dollar of the earnings of the road has been faithfully applied to the betterment of its condition as fast as earned.

Since I have been in charge of this road, that is, within the past two years, I have provided for it over 1,800 tons of steel rail, but there still remain in its track 36 miles of iron rail which is in bad condition. I have arranged, however, to obtain for the road sufficient credit to procure enough steel rail during the coming summer to take out nearly the whole of this iron, so that by next winter the road will practically be entirely laid in steel.

In common with all the other roads of this section, the track of the Port Royal road has become very rough during the last two months from the following causes: Within the past three years a great number of 50,000 and 60,000 pound cars have come into use throughout the South, which, when loaded, are heavier upon a track even than the ordinary locomotives. A 60,000 pound car, loaded, will weigh about 84,000, giving, say, 21,000 pounds on each axle. This is nearly as much as is carried by the driving axles of an ordinary mogul engine, and being upon a much smaller wheel, is more concentrated in its effect upon the track. Under these heavy loads a good track cannot be maintained with light rail in wet weather. The rain fall since January has been more than double that of either of the two preceding years, and under these conditions it has been impossible to maintain a smooth track.

I can only say that we are doing the best possible under the circumstances; that steel rail is now on hand and is arriving as fast as it can be laid; that ample ties are provided, and that as soon as dry weather sets in the track will be brought up to a better condition than has ever before existed on that road. Meanwhile I am pleased to say that while there have been many delays and annoyances, there has been no accident, I believe, resulting in any personal injury to any one.

Very respectfully yours,

E. P. ALEXANDER, President.

SAVANNAH, GA., March 22, 1889.

To the Railroad Commission of South Carolina, Columbia, S. C. GENTLEMEN: I have seen in the Charleston "Courier" a report of your inspection of the Port Royal road. I note carefully all the suggestions made where work is necessary, and I will have them all complied with as rapidly as possible.

Very respectfully yours,

E. P. ALEXANDER, President.

To the Railroad Commission of South Carolina, Columbia, S. C.

SAVANNAH, GA., March 22, 1889.

GENTLEMEN: There have recently been in the public press a number of complaints that the Port Royal and Augusta Railroad was "bottled up" by the present management; that "its earnings would be greater and its ability to make improvements increased if it were given the full advantage of its opportunities." If these statements are true, injustice is being done to Port Royal and the citizens generally along its line.

I do not know whether it comes within the scope of your official duties, but if you can consent officially to investigate this state of affairs and make a report upon it, I will esteem it a great favor to have you do so. The books and papers of the company shall be open to your inspection from the date of its existence, and the officers of the company will appear before you to make statements under oath and to be cross-examined, and we would especially be glad to have the citizens along the line of the road present any individual instances, or even what may seem to them to be circumstantial evidence, of any desire, however remote, to "bottle up" or suppress that road.

I am satisfied that the widespread popular opinion which the public press has given voice to will be found to be based solely on the popular delusion that the conjunction of deep water and a railroad are all that is necessary to build up a city, taking no account of many other necessary factors, the need of some of which will appear in the history of this corporation and the efforts which have been made by different managements from time to time to secure an export business through Port Royal.

Certainly I will be willing to abide by the result of any intelligent and impartial investigation into this matter, and will promise beforehand that if there is found anything whatever in the management of

this road to suppress its capabilities or prevent it receiving any business whatever that it could otherwise command, I will stand condemned, and the wrong shall be immediately remedied. Not only that, but if any way can be suggested in which the fostering care of this road and its influence in sending business to the Port Royal road which it would not otherwise get, can be more efficiently exerted than it has been steadily in the past, and is now, that also shall be done. Very respectfully yours,

E. P. ALEXANDER, President.

OFFICE OF RAILROAD COMMISSIONERS,
COLUMBIA, S. C., March 28th, 1889.

GEN. E. P. ALEXANDER, President, &c., Savannah, Ga. DEAR SIR: We are in receipt of your esteemed favor of the 22nd instant, and the Commission will take pleasure in forwarding your wishes for a full expression of opinion and proof of same from those parties along the line of the Port Royal and Augusta Railway who have been discussing that corporation.

The Commission deems it their duty whenever called upon, either by the railroads or the public, to render all the assistance in their power to have evils, if any exist, remedied, and to this end in this instance will publish your letter with the request that parties interested come forward and present their grievances in due form.

Yours truly,

M. L. BONHAM, Chairman Board Railroad Commissioners.

SAVANNAH, GA., April 1st, 1889.

GEN. M. L. BONHAM, Chairman Board of Railroad Commissioners, Columbia, S. C.
DEAR SIR: I acknowledge with many thanks your kind favor of the 28th ult., saying that the Com-
mission will take pleasure in investigating the state of affairs concerning the Port Royal & Augusta
Railway, referred to in my previous letter of March 22nd.

I will await information from your Committee as to the grievances that may be presented, and will then ask that a time be fixed for you to examine the officers of the company.

GRAND JURY PRESENTMENT,

Very truly yours,

E. P. ALEXANDER.

MARCH TERM, 1889.

We have also been requested to present to your Honor the dangerous condition of the Port Royal and Angusta Railway for more than 16 miles within this County which has been pronounced dangerous both to life and property, and to ask that your Honor issue an order requiring the State Railroad Commissioners to immediately demand that the authorities of the said railroad place the same in a safe travelling condition.

SOUTH CAROLINA, Hampton County.

In the Sessions.

D. I. PEEPLES, Foreman.

On motion of W. Perry Murphy, Solicitor, Ordered, That so much of the presentment of the Grand Jury as refers to the condition of the Port Royal and Augusta Railway be copied and served on the Railroad Commissioners for such action as to them shall seem proper in the premises.

6 March, 1889.

W. H. WALLACE,

Presiding Judge.

SOUTH CAROLINA,

Hampton County. S

OFFICE OF C. C. P. & G. S., Hampton County.

I, W. J. Causey, Clerk, certify that the foregoing is a true copy of the Presentment and order thereon. So much thereof as refers to the Port Royal and Augusta Railway at the March Term, 1889. Given under my hand and seal this first of April, 1889.

W. J. CAUSEY, C. C. P. & G. S.

Complaint of W. H. McLeod Against Port Royal and Augusta Railway for Non-Shipment of Mule and Other Matters.

BEAUFORT, S. C., March 30th, 1889.

MR. M. L. BONHAM, Chairman Board Railroad Commissioners, Columbia, S. C.
DEAR SIR: In compliance with your request, published in the News and Courier of 29th instant, I

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