The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-07
FERTILIZER TALK FINISHED.
COMMISSIONS DECISION MAY DE
ANNOUNCED TODAY.

ModiIcation of the Cut of - Per
Cent. in Freight Rates Looked For.
Capt. ID. G. Purse says the Rail-
roads Are so Heavily oVcr-Capi-
taIfzed That They Ought Not to
Earn DiVidends-COl. A. II. La"ton
Denies the Allegation.
Atlanta. Ga. Jan. 6.-The hearing Of the
fertilizer rate case was resumed to-day be-
fore the state railroad commission and
concluded but no decision has been an
nounced
After testimony had been taken the
hearing was interrupted a week ago on
account of illness in the family of Chair
man TrammeL Upon resuning the case
this morning the arguments were made
Commissioner D. q. Purse Of the Sa-
vannah freight bureau, representing ihe
fertilizer men, made the argument on that
side of the case at the former meeting
urging the commission to sustain It's origi-
nal order granting the 20 per cent cut in
local rates TO all points in the state. Dur
ing the hearing the Southern Fertilizer
Company and the John M. Greens Com
pan of Atlanta withdrew from the pet!-
ton. stating that they had decided the
cut would not benefit them.
President Conner Of the Central railroad
is a stakeholder in the Southern Fertilizer
Company.
Col W. G. Charlton Of the Georgia and
Alabama railroad opened the arguments
Sor the railroads to-day.
He was followed by Capt. Purse, who
made a supplementary argument in be
half of the fertilizer men, in the course OF
which he attacked the railroad situation
in Georgia along the lines of excessive
capitalization and watered stock. intimat-
ing that they we're not entitled to earn a
per cent. upon such a capitalization.
Hon. F G. duBignon, attorney of the
Plant system. made an elaborate argu-
nent, in the course of which he cited a
number of federal decisions to sustain the
position taken by the roads
Hon Bryan Cumming of Augusta, rep
resenting the Georgia road, Traffic Man
ager Joseph NJ Brown of the Western and
Atlantic and General Counsel Henderson
of the Southern also submitted arguments
General counsel A. r, Lawton Of Savan-
nah argued for the Central railway. In
the course of his remarks he took direct
issue with the position taken by Capt
Purse. that the railroads were not entitled
TO make a profit on their capitalization,
claiming that so far as the Central, at
least, was concerned. that road was not
capitalized beyond its legitimate worth.
lie took the position that the property
was valued for taxation very much be.ow
The capitalization because the state would
not allow it to charge such rates as would
make it possible for it TO earn revenue on
a basis of its capitalization.
Chairman Trammell interrupted Mr..
Lawton on this point and stated that the
commission had allowed the Central TO
increase its rates during its
receivership. Then, when the prop
critics came TO be reorganized,
Chairman Trammel said, the Southwestern.
its leased line. it was found. had amassed
a surplus of $4,000, which went into the
pockets of the receivers and lawyers. this
creased charges in freights allowed by
the commission. on the showing made by
the management that the line was not
making sufficient earnings.
Mr. Lawton replied to this statement of
the chairman, by saying that the $4,000
surplus of the Southwestern was simply
3 per cent. on its capitalization, and rep
resented the dividends that ought to have
been paid to stockholders for three years
prior.
The commission will probably announce
its decision tomorrow. 1t is believed that
the order granting the 20 per cent. cut
will be modified.