Savannah morning news. [volume] (Savannah) 1868-1887, 1881-05-02
THE R. R. COMMISSION.
DANGERS THREATENED BY THE
LAW.
Its Effect on the Savannah, Florida
and Western Railway. and the Fu-
ture of Southwest GeorgIa-The
DespOtic Power Vested In the Conn
missiOn-A Plain Case Plainly
Stated.

SOUTH GEORGIA, April 28, 18S1.-Edito,
Morning Neaos: The great hope and dream OF
this section Of Georgia has been, and now
Is, railway connection from Savannah.
via South Georgia, direct to New Orleans.
But short while ago, everything seemed to
betoken the early consummation of that
greatly desired object. Now clouds have
gathered and the mutterings of coming
storm are heard. Where shall we seek
shelterS The hope that was so bright was,
that the Savannah, Florida and
Western Railway Company would ex-
tend from Bainbridge. The clouds
are the Railroad Commission of Georgia
and of Alabama, and the continually up
turning indices of q notion on the part of
that corporation to seek more genial rail-
road skies. do not propose to discuss the
Commissions, nor the General Assemblies
that passed the acts under which the Com
missions were created. accord to both
Assemblies and to both Commissions purity
and patriotism of purpose. But do nro-
pose to show that effects most damaging
to this section Of Georgia are about to re-
suit from the operation of the present rail
road law.
At the first step towards putting that law
into effect In Georgia the Commits
sioners and the managers of the Sa.
vannah, Florida and Western Railway
Company differed, and differed wide
ly upon two (besides others) material
points-(1st) the valuation of the railroad
property and Gay what would be Just and
reasonable operating expenses per annum.
These were preliminary questions, and once
determined, the other work of adjusting the
rates, If fixed on the basis of SO much Der
mile, was a mathematical calculation. Such
per cent. on the value for income, added
to the operating expenses, fixed the aggre-
gate allowed to be earned, according to the
Commissioners rule. (See Report of Com
missioners November 10th, 1880, page 2S.l
By what rule or theory the Commissioners
arrived at $4,000,000 as the value of the
property of the Savannah, Florida and Wes-
tern Railway Company, a property fresh
from the test of what it will bring on the
market, test accepted by the world as the
most accurate, is beyond my ken. The Com
missioners arrived at $3.50, 900 per annum
as proper operating expenses. Patrick Hen
rvs lamp experience was certainly not fol-
lowed If the reports made for years by the
officers of the old Atlantic and Gulf Rail
TOdu COMPANY were True.
Who were right !? The Commissioners or the
owners OF the property? Which the Just
and reasonable valuation The price bid
and paid at the public sale does not seem to
have been taken as the basis of value, The
amount the experience of years showed to be
actual does not seem to have been allowed
as operating expenses. The Commission
made its schedules in the face of most
solem protestatfOn that rates based on such
reduced valuation and operating allowances
would be ruinous. A foreign stakeholder
appealed to the court for protection.
That court said; "Mr. Stakeholder, YOU
must present your cause to the General
Assembly OF Georgia. This court can give
you no relief. Now, from this array of what
| hold to be the facts of the dispute be-
tween the triumvirate and the road, what
mast be the auimus of the present owners
of the road Any sane man can answer
by simply putting himself in their place.
Mr. Plant and associates can but feel most
deeply the injustice and sting of such treat
ment.
The Atlanta Constitution. some days
since, published an interview with
the Railroad Commissioners from the
State of Alabama, in which those Commits
sioners are made to say in substance, that
while the Alabama law does not make the
adoption of the rates of freight and passenger
transportation fixed by the Commissions
obligatory on the railroads of that State, 1t
amounts to the same thing, 1t subjects rail-
roads refusing to adopt such rates to innu-
merable law suits.n
The State of Florida, already most at
tractive to capitalists, reaches nearly to the
city of Mobile, and is offering large land
subsidies TO capitalists to induce them to
take hold of aud extend the Florida road
westward to q New Orleans connection.
Florida has no Commissioners of Railroads
70 ant 10 infn xxyit Fotu
agement by the railroad companies of their
own property.
With such an experience In the State of
Georgia; with the press of the section most
ly affected by the prosperity of their line
criticising In severe terms an alleged at
tempt on the part of the management of
this railroad to have, what is by
them considered grievous wrong ad-
justed on some equitable and fair
basis; with such threats as are put in the
mouths of the Alabama Commission, and
with such tender of assistance from the
State OF Florida, place beyond debate the
course reasonable and cautious men will
doubtless pursue under the circumstances.
This is no overwraught coloring, and it
makes me seriously apprehensive for the
future development of Southern Georgia.
But 1t is claimed that the Savannah.
Florida and Western Railway Company al
abandon 1t and buy the road in Florida.
True. the corporation owns tho property,
but it is not permitted to control the same
as the wishes, interests or judgment of
stockholders suggest. Their plan was TO
make the lice FIRST class as to track, stations
and equipments. Steel rails, with Improved
fastenings, attractive station buildings and
modern passenger coaches east money In no
small amounts for length of line like this
F,o
Judgment, to invest in improving and en-
hancing property already reduced in vslu-
alton by edict of these men about one sew.
enth of its actual cost to them
This road is about $50 miles long. OF this
about 100 miles has the new steel rail. leay
ing about $50 miles yet to Improve. The
rails and fastenings cost about 5000 ner
mile, and for this improvement alone would
require about 81 SOC, GOO of money. Wbl
ard the investment. The road ea> naz
it under existing rates. TheIafr- 4noe carr
OF the line weat Of No. 8 y.Dst re 1a, Cns; par.
1t is. "S' remain Il
:. 4 hastty glance at the men Of the United
States shows that he Of what G 3 now Ut'9u =,
from, NJ. 70 st class railroads stretches
viS.n NS Aork to Savannah and Jackson
This series of lines cannot stop al
.nat. The great West and Northwest centre
! at New Orleans. There must and will be
| direct connection between these points
| This theory, in connection with the state
ment of facts mentioned before, explain th'
meaning of the bid by the attorney for thu
Savannah, Florida and Western Railway
| Company for the Florida Railroad.
The Commission of Georgia fixed the
value of this entire line at $4.000,000
| Considering that the car-shops, offices and
wharf of the Company are In Savannah
| that most of the rolling stock will be uset
between Savannah and Jacksonville; tina
| the improved facilities of the Florida line
running parallel and distant from this abou
| 25 miles for nearly 100 miles, viii draw
/ custom from this western end or the line
| and thereby permit reduction OF frelgn
and passenger service. / assume thab Whn'
east of No. 9 is only about tWo-sevenths ..
| the entire distance, it may oe IalfIy essl
| mated as one-haf the value OF the Wnolt
! at the Commissioners valuation ana VII
| leave S2. OOO. 900, or the other half, for oul
| western part of the line. Ihls VaiuaGloi
| under the Commissioners allowance 10
! s-ross earnings would be entitled to $40 GUt
| ner annum, which the company could affor(
| To allow TO remain under the guardianship
| of the Commission. Slow trains vii
| nrolopg the life of the old iron, and instead
! of working,up through business by way o
Albany, It viii be to their interest to max
everything possible pass over their owl
main line. The operation OF this presen
Railroad Commission can and will produc
the results herein set out. 1t looks TO IA
yerv plain, and it Is with the hope OF con
| tributipg to the escape from such conse
auence, that have written. ModincatloSn. ~ |.
| ii not repeal, of the law only VIII avert ehi
calamity to South Georgia. vnoms