xt7dv40jwr6m https://exploreuk.uky.edu/dips/xt7dv40jwr6m/data/mets.xml North Carolina Historical Records Survey of North Carolina 1942 Prepared by the North Carolina Historical Records Survey, Division of Community Service Programs, Work Projects Administration; Other contributors include: United States Work Projects Administration Division of Community Service Programs, North Carolina Historical Commission; v, 64 leaves, 28 cm; Typescript (photocopy); Included index and bibliography; UK holds archival copy for ASERL Collaborative Federal Depository Program libraries; Call number FW 4.14:N 81c/ser.4/no.1 books English Raleigh, North Carolina: The Survey This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. North Carolina Works Progress Administration Publications Inventory of the State Archives of North Carolina, Regulatory Agencies, Series IV, Number 1 Utilities Commission text Inventory of the State Archives of North Carolina, Regulatory Agencies, Series IV, Number 1 Utilities Commission 1942 1942 2015 true xt7dv40jwr6m section xt7dv40jwr6m   V    »’ 7 ,`   ` UupTv$Rs{TYOr6K5Nl'UWK¥_\`  
,\_ y ‘ iw»ww`\\
M gi Q       R \\\\<\\Nh\\l\\\~\@\@»\\\x \@_\[@l@hxQ
— ’ C R 1 3 DH
¥°;5 at * · _________________w_”_____“_________
{ I
in { Inventory of the State
- I Archives of North Carolina
I
  /
Q Series IV g
l Regulatory Agencies l
K NO. 1 l
1 Utilities Com ission
B
* _.....-.......
i Forth Carolina Historical
` { Records Survey l
{ Division of Community t
" 5 Service Programs l
i Work Projects Administration
Q Raleigh, N. C.
] March 1942 `
1

 ` `
I
{
I
I
\
· -

  
_i INVENTORY OF TEE STATE ARCHIVES
I OF- I `
lj NORTH CAROLINA
SERIES IV
_ l l REGULATORY AGENCIES
l‘iO• 1
  · UTILITIES COMMISSION
~ Prepared By
l The North Carolina Historical Records Survey
. Division of Com unity Service Programs
A Work Projects Administration
A   * * * * # * »
Raleigh, North Carolina
The North Carolina Historical Records Survey
March 1942 · ·
\_  

 I  
{ Historical Records Survey A
Sargent B. Child, Director
M.‘A•~Ru¤hton, Jr., Acting State Supervisor
Research and Records Program
Harvey E. Bccknell, Director
Milten`W. Blanton, Regional Supervisor
Colbert F. Crutchfield, State Supervisor
Division of Community Service Programs
Florence Kerr, Assistant Commissioner
Blanche M. Ralston, Chief Regional Supervisor I
I May E. Campbell, State Director
WORK PROJECTS ADMINISTRATION
Howard O. Hunter, Commdssioner I
Roy Schrober, Regional Director ‘
C. C. McGinnis, State Administrator
Sponsored by the North Carolina Historical Commission A
R• D• 7:\I• Connor, Ch8.irm3.n
i C. C. Crittenden, Secretary

 u F O R E W O R D
The Inventory of the State Archives of North Carolina is one of a
number of guides to—histEricalUmaterials prepared throughout the
United States by workers on the Historical Records Survey of the W0rk
Projects Administration. Each state department, institution, or other
agency will be represented by a separate section of the inventory; the
sections for functionally related agencies will be grouped in series.
The Historical Records Survey program was undertaken in the winter
of l955-36 for the purpose of providing useful employment to needy
unemployed historians, lawyers, teachers, and research and clerical-
workers. In carrying out this objective, the project was organized to
compile inventories of historical materials, particularly the unpublish-
ed government documents and records which are basic in the administra-
tion of local government, and which provide invaluable data for stud-
ents of political, economic, and social historyu Up to the present
time approxhnately l,8OO Survey publications have been issued through-
out the country. The archival guide herewith presented is intended to
meet the requirements of day-to—day administration by the officials of
the.State, and also the needs of lawyers, businessmen, and other citi-
zens who require facts from the public records for the proper conduct
of their affairs. The volume is so designed that it can be used by
the historian in his research in unprinted sources in the same way he
uses the library card catalog for printed sources.
The inventories produced by Historical Records Survey projects
* attempt to do more than merely give a list of records--they attempt to
sketch in the historical background and to describe precisely and in
` detail the organization and functions of the agencies whose records
‘ they list. The inventories for the entire country will, when completed,
constitute an encyclopedia of state and local government as well as a
bibliography of state and local archives.
The successful conclusion of the work of the Historical Records
Survey, even in a single agency, would not be possible without the
‘ support of public officials, historical and legal specialists, and
many other groups in the community. Their co—operation is gratefully
acknowledged.
The Survey program was organized by Luther H. Evans, who served as
Director until March l, 1940, when he was succeeded by Sargent B.
Child. The Survey operates as a Nation-wide series of locally sponsor-
od projects in the Division of Community Service Programs, of which
Mrs. Florence Kerr, Assistant Commissioner, is in charge.
HOWARD O. HUNTER
Cosmissionor of Work Projects

 I
~ PREFACE
‘ The Historical Records Survey was created in the winter of 1955-56
as a Nation-wide Works Progress Administration project for the"discovery,
· preservation and listing of basic materials for research in the history
of the United States."l Under the direction of Dr. Luther H. Evans, the
Survey undertook an extensive program for the inventory of state and
local archives, early American imprints, church archives, and collection
of manuscripts. Pursuant to the provisions of the Emergency Relief Act
passed June 50, 1959, the existence of the Survey as a single Nation-wide
project sponsored by WPA itself was terminated August 51, 1959; and the
work of the Survey was continued within the individual states by locally
sponsored projects operating within the National WPA Historical Records
Survey which continued under the direction of Dr. Evans until his resigna-
tion and the subsequent appointment of Sargent B. Child as National Dir-
ector on March 1, 1940.
The North Carolina Project of the Federal Historical Records Survey
was established February 1, 1956, with Dr. C. C. Crittenden, Seeretary of
0 the North Carolina Historical Commission, as director. Until November
1956 the Survey operated as an autonomous unit of the Federal Writers'
Project, directed in North Carolina by Edwin Bjcrkman. Dr. Crittenden
resigned as State Director June 50, 1957, and was succeeded by Dan Lacy,
who had previously served as Assistant State Director. The work of the
North Carolina unit of the Historical Records Survey was continued by the
North Carolina Historical Records Survey Project established September 1,
1959, and sponsored by the North Carolina historical Commission. Mr.
z Lacy resigned as State Supervisor on April 2, 1940, to accept an appoint-
i ment as Assistant to the Director of Historical Records Survey Projects
I in Washington, D. C., and was succeeded by Colbert F. Crutchfield, who
; resigned on December 7, 1941 to accept a position as State Supervisor of
g Research and Records Program.in North Carolina. He was succeeded by
A M. A. Rushton, Jr., as Acting State Supervisor.
The Inventory of the States Archives of North Carolina is being
Q published in nine functignalwgroups or~series, namely; I, General Gov-
é ernmental Agencies; II, Agencies of Fiscal Control; III, Courts and Law
1 Enforcement Agencies; IV, Regulatory Agencies; V, Public Works Agencies;
y VI, Agricultural and Conservational Agencies; VII, Educational Agencies
{ and Institutions; VIII, Social Service Agencies; and IX, Miscellaneous
R Agencies. The order of offices within each group is based partly on
M age, partly on importance, but chiefly on functional relationships with
1 other offices in the same group. The present section, the inventory of
V; the records of the Utilities Commission, No. l, Series IV, Regulatory
2 Agencies, gives the structural organization and evolution of the office,
y its powers and duties, and the housing, care, and accessibility of its
f records. The record series of the agency are described in entries 1-85,
g 1. Works Progress Administration, Opcrating Procedure No. W-2, Revised
  July 2, ies?. ' " ` ”` `”“
i
3

 .  -V-.
which show the following information: title of the record, dates for
which available, quantity, labeling and variant titles, description of
contents, manner of arrangement, indexing, nature of recording, size of
volumes or containers, and location.
The inventory was prepared under the supervision of Branson Harley,
Assistant Project Supervisor in charge of public archives. Field work
A was done by George B. Umstead, Irene Mangum, and.WilLa Saul; under the
supervision of James W} Parker. Legal research of the laws relative to
the Utilities Commission was done by·Nathaniel Bass. The inventory was
read for the sponsor by Dr. C. C. Crittenden of the North Carolina
Historical Commission and was edited by Den Farran of the central office
staff. The survey is indebted to the members of the staff of the Util-
ities Commission for their generous co-operation in the work.
~ M. A. RUSHTON, JR.
_ Acting State Supervisor
North Carolina Historical Records Survey
March 1942

 it
Q ABBREVIATIGNS, SYMBOLS, AND EXPLAHATORY`NOTES
p•,pp• ........................page(s)
S•,SS• ••••••••••••••••••••v••S€C.bj.O]rI(S)
Va •••••••••••••••••••••.••••VGI`SU.S
V vol. (s) . . . . . . . . . . . . . . . . . . . . . . . volume (s)
_1 • O O I I I O O I l O O O O I O O U I O        
Exact titles of records are written in all capitals without brackets,
as in entry 2.
Explanatory titles, written with initial capitals and enclosed in
brackets, have been added to exact titles which are misleading or which
are not sufficiently descriptive of record content, as in entry 4.
Descriptive titles,vvritten in all capitals and enclosed in brackets,
have been assigned to records having no exact titles on volumes or con-
tainers, as in entry l.
lf units of a record have distinguishing numberS’letters, or other
labeling, such labeling is indicated in parentheses following the state-
ment of quantity in the title line.
A title—line cross reference is used in the entry for a record if a
part of the record is kept for a period of tnne in the same volume or
container with another record and consequently appears physically in
another entry. It brings into the title line of the entry for a record
any separate parts and shows in what other entries these parts are con-
tained, as in entry 7; "l940-- in Miscellaneous File, entry 9."
A body-of-entry cross reference, appearing in the entry containing
the part and referring to the entry describing the record, is used to
complement each title-line cross reference.
E Third-paragraph cross references are used to indicate relationship
between records or to refer to records of snnilar nature described in
other entries.
Dimensions of volumes or record containers are given in inches.
Number of papers contained, as shown in title lines, is the approxi-
mate total number covered by the entry.
Unless otherwise indicated the condition of the record is assumed
to be good or excellent.
All records are housed in the Utilities Commission's office in the
State Administration Building, unless otherwise indicated.

 { UTILITIES COMMISSION
{ l. Structural Organization and Evolution
r The Utilities Com ission, as it at present exists, was created by act
; of the General Assembly of l9%l. Prior to that time the State's relation-
J ship to carriers and utilities had a long and involved history. From 1819
‘ until the Civil War the State acted as sponsor and patron of numerous move-
ments for the development of transportation and communication. It created
` a fund for internal improvements and a Board of Internal Improvements to
administer the fund for the purpose of stimulating the construction, first,
i ‘ of canals and roads, and, after l833, of railroads. The General Assembly
chartered numerous corporations, subscribed to the stock, and finally, as
I in the case of the North Carolina Railroad, actually built roads and rail-
, roads which were operated for profit. Because they were so closely con-
` neeted with the State Government (the State Treasurer or his appointee or
l an appointee of the General Assembly, exercised the same voting power, by
, virtue of the State's stock, as any stockholder) such concerns made reports
either to the General Assembly or to the Board of Internal Improvements.
There was no regulation, however.
V The Constitution of ISGS made provision for a Superintendent of Public
Works as a part of the Executive Department.l The Superintendent was
— elected by popular vote for a 4—year term and his duties were to be pre-
I scribed by the General Assembly.? The next session of the General Assembly
A provided that the Superintendent of Public Works have charge of the State's
interest in all railroads, canals, and other works of internal improvement
and of all public buildings belonging to the State.5 He was required to
I report annually to the Governor on the condition of all railroads exclus-
U ively owned or operated by the Stateé and on the condition and business
t conducted by every other railroad operating in the State and to recommend
such legislation as he deemed expedient.5 Every railroad, canal, or other
work of internal improvement was required to report annually to the super-
intendent on forms prescribed by hhn.6
Another act of the same session required that the president of each
railroad operating in the State, personally or through the superintendent,
report annually, on or before the first monday in November, to the super-
intendent of Public Works.? The details of the report were set forth in
· the law,8 and the superintendent was required to furnish suitable forms.9
I Any violations were to be prosecuted by the Attorney General.lO
_ In the 1871-72 session the first general law prescribing the method
‘ of creating railroad corporations was enacted. Prior to that time such
l. Const., Art. lll, s. 5. s. 98, sub s. S.
·2. Ibid., s. l2. 6. Ibid., s. IOO.
5. Laws of North Carolina, 7. Ibid., c. 27l, s. 1.
A l858-S9, o. 270, s. 97. 8. Ibid.
_. {ta   S• 98, Sub S• 2• Sq I-`D.l.d•, S• 4:•
1 5. Ibid., l868•69, c.`270, lO. Ibid., s. 3.

 i - 2
Q (Structural Organization (First entry, p. 57)
} and Evolution)
1 corporations, like all corporations, had been created under a law of 1850
Q which required five persons to sign the corporation papers before the
° clerk of superior court of the county in which the corporation's offices
— were to be 1ocated.ll Under a law of 1852 the incorporators paid their
V subscriptions of stock to the clerk of superior court, who certified a
L copy of the receipt to the Secretary of State. The Governor then issued
f letters patentlz which were recorded by the Secretary of Statelg and copies
V of which were filed in the office of the clerk of court.l4 A record of
the name, purpose, capital, and subscribers of corporations organized in
( the particular county was required to be kept by each clerk of court.15
The 1871-72 law prescribed that any number of persons, not less than
V 25, may form a company to construct, maintain, and operate a railroad for
A public use in the conveyance of persons and property and for that purpose
may sign articles of association giving the scope of the corporation, its
capital stock which must be not less than y5000, together with the number
of shares to be issued. These articles of association were then to be
filed with the Secretary of State, who issued a certificate of incorpora-
i tion. This law further prescribed that the corporation be registered with
the clerks of court in the counties in which it operated.l6
The chief powers of such corporations were; to intersect and unite
with other railroads at any points on the route; to regulate the time and
_ manner in which passengers and property should be transported; te fix the
I charges for such transportation services (with the exception that passenger
S fees were not to exceed a maximum of 5 cents a mile); and to borrow money
S for the completion and operation of the road.l7
It was further required that every corporation so formed should an-
i' nually submit to the Governor a report on the operations for the year end--
ing the 50th of September. Such report should be filed with the Superin-
· tendent of Public Works not later than H0vember 15. The details of the
1 report were set forth, and the superintendent was to supply the proper
it forms.l8
j The superintendent was required to arrange the information in tabular
form, to have the tables printed, and to submit copies to the General As-
sembly on the first day of the next session. This requirement applied to
· all railroads, and the report took the place of the annual report formerly
required.l9
;Q ll. Laws of North Carolina, ss. l-50; hereaft»r cited as
_ 1850,—e. 50. Public Laws.
F 12. ima., iesz, S. ai, S. i. iv. TSEIXQ 'f@T..7g_ O,
V is. TBR., S. Si. Tm; S. 29.
p' lg:} i—b_jT&.-I, SO 1. 18O   Sl 5]-O
’f 15. Ibid. 19. Laws of North Carolina,
°, 16. Public Laws of North Care- 1852,—e. 138, s. 51, Par,
s iina, 1871-72T c. 158, 105-105.

  Y
z
  -— 3 —
Yi (Structural Organization (First entry, p. 37)
1 and Evolution)
Q The Superintendent of Public Works and the Auditor were required to
1 examine the reports, and if the railroad made over 1O percent net income,
E the legislature might from time to time reduce rates.2O
E Consolidation or merger of continuing lines was permitted but was
E forbidden to competing 1ines.2l
3 Every corporation was required to file a profile and map of land used
* in each oountys The map was to be of the scale and on the paper designated
Q by the superintendent.22
j The offices of Superintendent of Public Works was abolished by the
# fourth amendment to the Constitution of North Carolina adopted by the
I Convention of 1875 and ratified by the peop1e.2$ The General Assembly of
{ that year re—enacted the law of 1871-72, revising it by giving to the newly
created Board of Internal Improvements the powers and duties formerly im-
, posed upon the Superintendent of Public Worksezé The Board was required to
i submit an annual report to the Governor based on the annual reports made
V by railroads and to recmmnend 1egis1ation.25
t During the late nineteenth century as the farmers of the country under
p the guidance of vociferous leaders, awoke and were awakened to a conscious-
Q ness of unity, they sought the causes of their hard economic lot. Among
i the economic forces which prevented the farmers receiving what they cen-
5 sidered a fair share of the wealth of the nation were the abuses in the
E railroad system. Consequently, one of the accomplishments of the agragian
§ movement was the setting up of state regulatory agencies and the Interstate
Q Com erce Commission of the Federal Government.
i As has been mentioned, because of the relatively great distance and
f the natural handicaps to easy com unication, North Carolina found it neces-
; sary to seize upon every promising means of reducing distances. The State
I} Government aided and encouraged the railroads by every method within its
Q power. State funds were invested in railroads, and several charters were
1 issued in which provision was made for relief from "any public charge or
it tax whatever." Other charters provided for such high rates that oven the
i unregulated railroads were afraid to charge the entire amount.26
f But by the 1880's the State‘s need for railroads had been sup lied.
Q By 1888 there were 51 companies with over 2,5OO miles of tract; by 1890
.§ Z0. Public Laws, 1871-72, 25. Jlbid., c. 202, s. 5.
  YT?-Y38,-—s`T-58. 26.     Carolina,
{ 21. Ibid., ss. 45, 57. 1855, c. 75, s. 19;
l 22. Ibid., s. 41. "Governor's VCSSQgO"•
Qi 25. IEEE of North Carolina, Public Documents of North
‘ IEEE-75,"`5T?s`sQ`T>‘I%Etr7H61e. cam11¤Q"i?z‘§§f'p;?T l·l—1"5..
f 24. Ibid., ss. 1, 2.
2.

 yy } ·
A  - 4 —
fi (Structural Organization (First entry, p. 57)
g and Evolution)
fa
{
Qi there were 59 companies with 5,100 miles of traot.27 North Carolina
i farmers, like other states' farmers, were greatly agitated over their
{ economic plight and sought to remedy abuses. The rates charged by rail-
L roads were naturally of great importance to them. If the rates on incom-
E ing commodities were high, the retail prices for those commodities were
Q high. lf the rates on outgoing commodities were high, the prices the
1 farmers received for their produce were correspondingly low.
? The first bill looking toward the establishment of a railroad com-
j mission in North Carolina seems to have been introduced in the Senate in
A Fgbruary 1879.28 A harmless substitute bill was returned from the com-
1 mittee and after considerable debate passed the third reading by a
{ narrow margin.29 The House considered the bill but failed to pass it.5O
{ had not the congested condition of the calendar prevented its coming to
y a third reading, it might have become a law.5l
if In 1881 another bill was introduced in the Senate but died in a com-
f mittee.52
Q In 1885 and again in 1885 Governor Jarvis, in his message to the
i legislature, urged the creation of a commission with advisory and super-
g visory powers.$5 The 1885 suggestion resulted in the introduction of four
Q bills which were later combined into one measure which wasrpassed by
Q both houses with amendments, and which died in conference.8* In 1885
Q several bills were introduced but were reported unfavorably by commit-
l tees.35
Q3.
é Attempts to get a law in the session of 1887 likewise met with
"Q failure.$6
é Sweeping victories by Farmer’s Alliance candidates in the election
§ of 1888, however, heartened the supporters of regulation.57 Furthermore,
Q the Congress of the United States had created the Interstate Commerce
{ Com ission on February 4, 1887.58
1
f Governor Scales opened the session of 1889 by urging a strong three-
E man oommission.with power to adjust rates and recommending legislation
Q Q * ‘ i
é . s . » .
g B7., John D. Hicks, “The Farmer' 54. Sgnate Jcurnal, 1885,
{ Alliance in North Carolina", pp. 92, 25d, 401; House
§ Forth Carolina Historical Journal, p. 485.
Q Review, II, 166. 55. Senate Journal, pp. 221,
Q' 28. Senate Journal, 1879, p. é9l. 229.
1 29. Ibid., p. 605. 56. Senate Journal, p. 571;
Q 50. House Journal, 1879, p. 805. House Journal, py. 518,
Qi 51. Ferguson, Ep. cit., 164. 570.
§ 52. Senate Journal, 1881, p. 520. 57. Hicks, pp. cit., 17é.
§_ 55. Legislative Documents, 1885, 58. 24 Stat., 579, 585.
Q p. 10; 1885, p. 18.

  
  — 5 - ·
w
p§` (Structural Organization (First entry, p. 57)
SQ and Evolution)
 ; E
é for prevention of rebates, discrimination, and pooling and for insuring
% publicity for rates.$9 Five bills were introduced; but, while one bill
by passed the House, the new thoroughly aroused railroad interests prevented
§ its passage by the Senate.4O
1
{ In 1861 Governor Fowle repeated his predecessor's recom endations.
i "Every state in the Union, except ten, has appointed com issioners and
{ enacted laws to regulate the carrying trade of the railroads in the bord-
§ ers of the different states."4l As usual, several bills were introduced,
E and one of these, with unusually broad powers, was pushed through the
ff General Assembly. Thus was created the first commission in the South
Q with authority over corporations other than rai1roads.42
Q The act of 1891 provided for the general supervision of railroad,
Q steamboat, canal, express, and telegraph companies doing business in.North
% Carolina. The act created the Board of Railroad Commissioners which was
Q composed of three members, chosen by the General Assembly. No member of
{ the 1891 General Assembly was eligible for appointment to the board nor
A could the commissioners jointly or separately be the holder of any stock
Q and bonds, be the agent, attorney, or employee of any company under the
@4 jurisdiction of the commission, or have any interest in any way in such
A company as long as he was in office. Each conmissioner was required to
1 take an oath to support the Constitution and laws of the United States
Q and the Constitution and laws of North Carolina. In addition he was
Q required to take a written oath that he was not the owner of any stock
Q nor the agent, attorney, or employee of any company nor in any way inter-
CA ested in such company and that he would faithfully execute the duties of
AQ his office. The oath was to be administered by a judge of the supreme
§ Or Superior court, to be signed by the commissioner and to be filed with
g the Secretary of State. The commissioners were chosen for terms of 2, 4,
§ and 6 years respectfully and their successors were chosen for 6-year
% terms.45
A The salary of each Railroad Commissioner was originally $2,000 a
y year.44 In 1895 the salary was reduced to $l,5O0.@5
§ lf the commissioner became distributor or legatee or in any other way
g» entitled to any stock or bends or interest in any company regulated by
A the eonmission, he was required to dispose of the interest immediately.
l? lf any commissioner failed to do this or in any way became disqualified, it
§ was the duty of the Governor to suspend him and to report his suspension
`Q 59. Public Documenti, 1889, pp. 54, 55.
% pp. 19-20. 42. Ferguson, pp. pit., p. 167.
% 40. Senatp Journal, 1889, p. 45. Laws_2f North Carolina,
g 542; House Journal, 1889, 1891, c. 520, s. 1.
§ pp. 420, 541; Ferguson, 44. Ibid., s. 2.
m ep. cit., p. 166. 45. Public Laws, 1895, c. 154.
  41. TD-Gbl-I-e—Decwnents, isei, “""
 E, I

 W 
  ~ 6 —
it (structural Organization (First entry, p. 57)
gi and Evolution)
  1
1% to the next General Assembly; the reasonableness of his removal was then
agi determined by a majority of the General Assembly in joint session. The
% Governor filled a vacancy on the board until the next meeting of the Gener-
Qy al Assembly at which time a person was chosen for the unexpired term.
{ lf the joint session of the General Assembly, held for the purpose of con-
K sidering the suspension of a Railroad Commissioner, determined that such
é suspension was improper, the original appointee was automatically rein-
j stated and was entitled to all emoluments to which he would have been
Q entitled had he been in office.46
TQ
§ The commissioners were authorized to appoint a clerk at y1,2OO a
§ year,47 but if a skilled clerk was required, the com issioners were allowed
3s to pay him 25% more.48
Q The chairman of the board was designated by the General Assembly and
Q two members constituted a quorum.49
i
E The offices of the board were to be located in Raleigh and it was
3 required that they be supplied with the necessary furniture, equipment,
Q printing, and stationery on the Auditor's warrant.5O
é lt was the function of the board to approve the rates charged by, to
§ prevent discrimination by, to hold hearings in case of complaints against,
jg to make rules and regulations for, and to exercise general supervision over
it the companies under its control. Further, its members formed the Board of
Q Appraisers and Assessors of the property of the utilities under the super-
% vision of the Board of Railroad Commissioners.5l
Q The members of the board also became the State Board of Equalization
yi to equalize the valuation of property throughout the State.52
l The teard set to work immediately after its organization. The chair-
2, man went to Georgia to study the work of the commission which had been
W established there since 1879.55 After his return, the board began a study
f of the freight rates and classifications in effect in North Carolina, the
Q result of which was the promulgation of a standard classification for the
g whole State and a reduction of the rates charged by all roads which were
py making actual expenses.54 Special attention was paid to the rates on
ié necessities and commodities important to the economic life of the State.
% Some reductions were as great as 40 percent.55
pg 46. Public Laws, 1895, c. 154, 51. Ibid., 1891,
i¤ s. 1. c. 323; Public Laws, 1895,
  4:7g Ibldn, S• za Cn   _——-._
, 48. Ibid., 1895, c. 288. 52. Ibid., 1897, c. 510.
QQ 49. IEEE of North Carolina, 55. lherguson, op. cit., 168.
  1891,7. 520, HT"` 54. Ferguson, BE.   p. iee.
i 50. ibid., s. 2, 55. Hicks, ep[EéE;T_p. 175.
é
P 

 E:.}   
an — 7 —
v  
yft  !* (Structural Organization (First entry, p. 37)
jh and Evolution)
l— Passenger, express, and telegraph rates soon received stnilar atten-
“.l tion. The standard passenger rate was fixed at 3 1/4 cents a mile and
% applied to a great part of the mileage in the State.56
Tl
gy lnstead of forcing the rulings on the companies under its supervision,
»% the board consulted them about the rates to be promulgated; consequently,
by there was a minimum of friction.57 There was only one appeal, the result
T of an order reducing the first class passenger rates, on the‘Wilmington
§ and Weldon Railroad from 5%·to 3 1/4 cents a mile. There was an appeal,
y and the case was finally settled in the Federal courts in favor of the
4% Commission.58
Q The com ission's work as appraisers and assessors of railroad property
7% was likewise effective. It did much to lessen the discrepancy between
Q the valuation of property for taxation and the capitalization of the com-
g§ panies, a matter which had long been cause for dissatisfaction. Further-
Ti more, it collected taxes from the Pullman Company and from out-of-state
FQ steamboat companies operating in North Carolina waters, sources which had
é never before been tapped.59
l
,§ The board even succeeded, by means of litigation, in terminating the
§ special exemption rights of companies, so that by 1894 the last right had
Q been surrendered.6O
JE
Q In 1898 Governor Russell suspended Chairman James W. Wilson and one of
E the commissioners from office. He instituted proceedings by writing the
;§ chairman a letter in which he alleged that Wilson was connected with the
;T Southern Railway and therefore disqualified from office and required him
é to show cause why he should not be removed. In his answer the chairman
lpg denied the allegations and the Governor's authority to suspend him. Never-
l§ theless the Governor suspended him and appointed L. C. Caldwell in his
T place. Wilson disregarded the order whereupon Caldwell brought action in
* the superior court to obtain the office.6l
§ In his answer Wilson contended, first, that, even had he the authority
_§· to remove him, the Governor had not given him a fair hearing and had there-
V& by used the power unlawfully; and, second, that the part of the law of 1891
if which gave the Governor authority to suspend a member of the commission
if violated the fourteenth amendment to the Constitution of the United States
y by depriving him of his office without due process of law and was further
1 unconstitutional because it interfered with tho independent tenure of a
 
% 56. Ferguson, op. cit., p. 169, lina, session 1875, number
` yi Railroad Cbm ission, Report, 1, p. 45.
Ԥ pT_37. 58. Ferguson, op. cit., 169.
jg 57. "Biennial Message of Thomas 59. "nessago of_Gov6rnor Ho1t,"
' ·§ I. Holt, Governor of North 46.
t Carolina", Pub1ic,Decuments 60. Ibid., 46-51.
f pf_thg State pf ggpth Caro- 61. Ferguson, op. pit., p. 170.
 
aaa

  
 Sw .. ..
§§ (structural Organization (First entr;5 p. 37)
  and livolution)
ii i
TIQ judicial officer. The superior court denied Wilson's contentions and ap-
Q peel was taken to the State supreme court.
1
l$t The supreme court held that the Board of Railroad Commissioners was
{ not a judicial body but was administrative and therefore the court had no
fg authority to review the power of suspension when it was exercised in an
T? orderly manner.62 _
d In 1889 the Board of Railroad Comnissioners and the whole of the sy-
§ stem of railroad regulations were abolished.65 In place of the board there
~%1 was created the North Carolina Corporation Com ission, the first corpora-
,$ tion commission created in the United States,64 which had general super-
 & vision over railroad, steamboat, canal, express, telegraph, and telephone
Ig companies, building and loan associations, banks, and sleeping car compan-
§ ies, and which consisted of three members chosen by the General Assembly
jp of 1899.65 The number, qualifications, tenure, and oath of office of the
§ Corporation Commissioners were the same as those of the Railroad Commis-
Q sioners, but they were chosen by popular election.69 It was