The age-herald., 1900-03-25

The present average rates in Alabama are considerably lower than those enjoined in Texas, and the conclusion seems inevit- able that if rates were subjected to the critical scrutiny of a judicial inquiry they would be declared unreasonably low. It must be borne in mind too that to the cot ton producer in the neighborhood of Bir- mingham it is far more important that he have competitive rates to ultimate mar kets and ito mill points of consumption in the states east of him than it is that he should have his local rate on cotton into Birmingham or into Cordova reduced. The rates on cotton to the ports and to the mill points in the east are very low from all points in Alabama. The rate on cotton from Birmingham, Eufaua and Montgom- cry to Savannah, Brunswick and Charles ton Is 45 cents per 100 pounds, which is the same as the rate from Columbus, Ga., to these ports. The rate from Birmingham and Montgomery and all points east thereof on cotton ito Boston and milling points in the east taking Boston rate, Is only 65 cents per 100 pounds, which is the blanket rate carried in very extensive territory in the southeast. These rates on cotton from Birmingham and Montgomery to eastern mills place these cotton markets in position to compete with other cotton-ship- ping markets in the south, and while this is the case the railroads at the same time make rates on cotton factory products from Birmingham to Boston and points taking Boston rate of 55, to New Yo-k, 55 cer,s, thus enabling the growers of cotton and dealers in cotton to have the advantage of either the local Birmingham consuming market through its cotton mills, or the ben eft of the eastern or foreign markets.
 Seventh-In considering the general ques- tion of the rates charged in Alabama being higher than in Georgia, we must confne ourselves to the question of earnings on traffic having origin and destination in the state of Alabama, that is to say, to the earnings on interstate traffic in contra dis tinction to interstate traffic Justice Har- Ian, in the case of Smyth vs. Ames, lays down this general rule:
 ''In our judgment it must be held that the reasonableness or unreasona beness of rates prescribed by a state for the transporta- tion of persons and property wholly within it's limits, must be determined without re- ference to the interstate business done by the carrier or the profits derived there- from"
 This ruling was made in the cele ebrated Ne braska rate case where it was claimed that the local rates in Nebraska should be re- duced because the carriers were securing large returns on their interstate traffic We invoke this rule with the grea ter as- surance because it cannot be shown that we have at any time advanced our rates in Alabama because of a reduction in any rates on any other portions of our lines, either intrastate or interstate and because further it cannot even be claimed or assert ed in fact as was alleged in the Nebraska case, that the railroads in Alabama are generally securing large returns on inter state traffic. The opposite is the fact. The general tendency of our local rates in the state of Alabama has been steadily down. ward and whatever change we have made has been a reduction.
 We therefore ask you to consider wheth- CT the rates applied on local traffic in Ala bama are reasonable in themselves. 1t Is unfair and unItenable to say that they are too high because they are higher than the rates in Georgia. comparison with the rates in other states is a factor, but not a controlling factor. Upon this point, like wise, Justice Harlan made a ruling which is well worth quoting:
 "We hold, however, that the basis of all calculations as to the reasonab bleness or unreasonableness of rates to be charged by a corporation maintaining highway un- der legislative sanction must be the fair valuation of the propenty being used by it for the convenience of the public. And