The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1896-09-15
THE WAR OF THE ROADS
President Spencer, of the Southern Takes
Mr.. ST. John to Task.
REfuTEs A NUMBER OF STATEMENTS.

Credit OF the Seaboard AIR Lin,
and President Honman's Reply
He Denounces the Article as
SIander- Facts and Figures.
Mr.. Samuel Spencer. OF the Southern
dressed; however. TO Hon. l.: N. Tram:
we'll chairman OF the Georgia Railroad
denies and refutes a number OF statements
regarding the Southern made by Mr.. st.
John. vice-presldent and general manager
pondence with Mr.. Tramwell
In the first place. says MIR. Spencer, Mr..
ST. Johns statement that the Southern.
''as is well known, owns every share OF the
capital stock of the Central of Georgia
halfway" Is impossible OF acceptance in
OF the sout hern to the Central OF Georgia
| the commission, and the Southern is ready
to give TO that body all facts and knowl-
edge IN, In rs G possession .,. In respect to IT,
by the Southern Railway Company. then
| II follows. continues Mr.. Spencer, that the
road. the Atlanta and West Point or the
Western Railway OF Alabama.
Proceeding. the letter denies that the
southern has the power or ever attempted
to compel the Atlanta and West Point and
the Western of Alabama to refuse those
Air Line which they accord TO the South
ern. nor does Il own the route to New
any interests in the same South of Meri-
Mir. St. John says "of the lines centerinr
| towards the East, and the Western and
lAtlantic, towards the West, are free from
the domination OF this uhe Southern) cor
does sven il the 9ss,s s0uthsrn eSntrols.
I "a IF MT III "a
controlled, the Georgia Railroad"
MI. ST John Says that the Southern
hallway Company controls three competi-
tive and parallel routes from Atlanta to
Macon. in this State
The fact is. asserts the Southern official,
the Southern controls but one line between
Atlanta and Macon" and adds in regard
to Mr.. st. Johns statement that there is
not competitive line at Macon which it
| (Southernl does not control the letter
| claims that the Georgia Railroad reaches
Macon, and is used actively and competi-
| East by the South Carolina and Georgia
| and the Clyde Line.
Inc statement that the financial powers
which dominate the Southern likewise con-
troll the Louisville and Nashville" Mr.
Spencer puts down as untrue and without
| the slightest foundation in fact"
Continuing the letter says: Mr. st.
John says: The Southern has absorbed, by
stock 1% R SIwnieTshhip, or StheTwse the Macon
and Florida, the Georgia Midland and Gulf
and Il is said controls the Columbus South
ern.'"
The Southern has lawfully leased the
Georgia Midland but 1t does not own a
share OF stock, nor, does 1t control the
macon ana birmingham road. 1t owns an
Interest in the Georgia, Southern and
Florida, as above stated, but not a con-
Southern road. which is in the hands OF a
receiver. l may say that in my opinion
the Southern would have perfect right,
railroads. If 1t so desired"
Mr.. St. John says in his cry for your
majority OF the stock of the Seaboard
Air Line and of the Bay Line is in hands
Sa,,So, IT p cannot be purchased by the
The fact is that little less than six
months ago the majority OF the capital
stock Of the controlling company OF the
Seaooard Air Line was offered to me and
was not accepted"
Mr.. ST. John says
The Seaboard's fixed charges are much
less per mile than those OF the Southern
Railway, while Its dead roads Include an
ern's mileage will not much more than pay
for It's operating expenses on a low basis -
statement OF fixed charges per mile
of earnings per mile
The earnings per mile OF road of the
Seaboard Air Line for the year ending
June so, 1895. the last year for which the
company has reported. were:
Net after adding miscellaneous in. '''-''
come ........ ......... ..........,. COZ
Fixed charges and other deductions w
AT
Net deficit per mile of road. ......... iG:
Those of the Southern for the same yeai
were:
Gross ........ ......... 81 12-
Net including miscellaneous income / -:
FIXED charges and other deductions
from income. ........ .... / 02:
Net surplus over all charges ....... p;
While the nxed charges and other de.
ductions from income of the Southerr
were IS per cent greater than those of tn,
Seaboard Air line. the total net Income OF
the Southern for the same period MAS NOR,
than 100 per cent. greater than that OF the
Seaboard." ~
On the sixth page of the letter Mr.. Spen.
Ger remarks:
1T the Southern) has done nothing ir
Its history to Cypress any interest and
challenge MIR. ST; John or any one else &c
produce any evidence of an attempt or q
desire upon its part to do. II has not rails
ed the rates at any point. and IL has no,
attempted TO control them: and II IL i'm.
possible TO conceive that any ACQUISITION
or combination by ii of lines in the Sour
could be sufhcinetly strong to enable II Il
eXercise an absolute control over rates M
any point. No combination can be large
{ enough In the United States to contro
rates. and the railroad manager who at
tempts II or asserts it writes himself d
fool. There can be no clearer PROOF nj
what would be the futility of such effort,
. man the present rate situation in IN,
south, when one small line, GOO miles in
length, from Portsmouth to Atlanta des
troys. as II is now doing. the rate fabri,
! from New England to New Orleans am
: Florida"
THE effort of the Southern Railway ha.
been, not to control rates. but to keei
!. them uniform and reasonable and public