The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1897-02-01
ROADS WILL FIGHT IT
Georgia Railroads Preparing To Attack
the Rate Schedule.
B0NDHOLDERS WILL HEAD 1T
Present Tariff Is Declared to Be tse
Lowest in the United States
VIII Ask for Protection.

The Georgia railroad commission will
have to walk up and defend its whole
schedule of rates.
The investors I'm some OF the leading roads
IN the state have decided TO go into the
courts and attack the entire freight tariff
OF the state commission. This Is the re-
suit of the reduction I'm the fer tillzer rates.
That was the last straw which broke the
camels back. The bondholders say that
they are not allowed TO earn reasonable
return on their investment and they have
determined to appeal to the United States
courts for relief.
At first It was decided to attack the fer
tilizer rate alone. Then after some confer
ences the matter was left to the lawyers
They talked the situation over and report
ca 10 the bondholders. At the same time
the traffic departments We're called on to
prepare statements to show what the COM
9anies earn in Georgia.
An the railroad officials say that rates
are lower here than in any other state in
the union. not excepting Illinois. with her
great railroad mileage and vast population,
or Massachusetts with her large popula-
ton per mile OF railroad. Texas has al
ways been considered as about the hardest
state on railroads. with Kansas and Ne
the roads that GcorEia's commission has
beat an the others in regulating rates down.
The hondholdcrs claim that they are en-
utlcd 10 their interest and that il SIS unjust
to expect them 70 give good service and
then prevent them from making money to
pay for IT,.
The boudholdors of the Southern, the Cen
trail the Plant system and the Georgia
Southern and Florida and the Georgia and
Alabama Will probablv Join together ln tho
attack and there may be others. In the
case of the Central the movement may
come from the holders of second and third
Income bonds They are not getting amy
interest ANA they cannot get any until the
earnings Of ,he company increase consider
ably. These bonds represent "a stock In the
old company which only five wears ago WAS
paying per cent dividends and ten years
ago was paying S per cent In the last
ten wears that stock has been up 10 la6. Ia
the reorganization some OF the old stock
was exchanged fcr income bonds. Whicn
have not been paying any interest Tho
company's fixed charges were greatly re-
duced In the reorganization. too. These
Londholders are mostly Gcorgians and
many of the securities are held by estates
and charitable institutions MS Investments.
The bondholders Of the other roads are
largely uon-rcsidcnts.
4 meeting of railway officials will prob
ably De held here next week though no
call has been issued. That meeting VIII
consider tro matter. and win act in accord
auce with directions FROM the bondholders.
80 ii seems that while the roads appeared
To Dee accepting the commissions order uu-
oer protest they were not giving zap their
,ase hy amy means. Tho attorneys have
been looking up the law and the traffic de-
plrtmeuts have been getting uD figures. So.
instead of o.c item being attacked the
roads viii ASK for g. 49,
fue r0WmissipEF
been IrcmisiUe'.~
me the present 81. p, 'ny s-s0.- -,
that IS would be revision down instead -
up They Say thai thcv were hit hard last
.-ear 10y thc reductions aud thev looked for
,nors This ycar unless the commission is
checked. Yesterday thc hoar6 reduced cot
ton seed meal and la'ni, go per cent, putting
them in with fertilizers again. This was
overlooked whom phosphatus were reduced
.ls first OF this month. The commissiogt
has rulc defining fertilizers cotton s"ed
meal IS not u This rulc bat There is an
;.ct of tho general assembly declaring ..e
lncal to Doe "a fertilizer aul recurring u to
be inspected just as phosphates are inspect
"a. 10 IS said that farmers are getting up
counter petitions against The increase of
tLe fertilizer rates. So 10 turns ont o. hr
farmers against the railway rmployc II
is Also reported that farmers aye crcu-
latiuG petitions "a have the cotton rates re-
tactd.