The Birmingham age-herald., 1903-07-05
Georgia Freight Rates and Classification Are Not
 Adopted MATERIAL REDUCTIONS
 ON ALL FOOD PRODUCTS
Commission States That Railroads Are Entitled to Earn Falr and Just Re- turns and lntra-state Bus-
 ness Not Considered.

Montgomery. July 4.-6speoial.1-The decision of the Alabama Railroad Com mission in the rate cases was made pub this this afternoon, and it proves to be one of the most interesting documents that has ever been Issued by that body.
 It is the first order of the commission
 under powers granted it by the legisla-
 ture recently in session. and the ship
 pers in the state reap a good benefit as
 result of it. There are two decisions,
 covering the two cases before the com
 mission the one asking for a reduction
 of rates on grain and hay, and the other
 asking for the adoption of the Georgia
 tariff in Alabama.
 1 The commission has been considering these cases since March. The commits
 sion itself instituted the case citing the l railroad to show cause why rates should | not be reduced on food products and home commodities in Alabama When this case came up for hearing, B. B. Conner and other presented case in- volving the question of establishing the Georgia classification and rates. and the hearing was postponed for thirty days in order that all parties might have an op- ! portnnlty to properly prepare their cases.
 Georgia Rates Not Adopted. The commission di,. not see it's way | clear to adopt the Georgia rate and cias- sifcation, but there are very fiaterial re- dnctfons ordered In 8he feaa product cases. and the consumers asia shippers
 h Alabama will reap the benefit to the
 extent of quarter of a million dollars. l The full text of the orders making these l reductions make most interesting reading 1 matter tC tbose w'lo bage been students
 of the re question in Alabama.
 There are several reasons set forth by the commission why they could not see I their way clear, under the facts and
 the law. to grant the petition establish l ing the Georgia rate The act creating 1 the commission and the supreme court f 1 the United States declares the railroad companies are entitled to earn a fair l and just return upon the value of their
 property. including appurtenances and l equipments. The supreme court of the l United States has held that this earn l ing must be based strictly on domestic
 business, and the interstate business can
 not be considered by the commission in l fixing intra-state rate.
 Earning Less Than 2 Per Cent.
 - The case was argued at great length l by both sides before the commission
 and facts submitted show that the larg- l est earnings III AldDaHd QDmtbl1C bub- l mess are less than two per cent. Rang | ing from that down to actual deficits. The only roads showing earnings of two per cent were the Louisville and Nash vile and the Western Alabama. When the combined earnings on do- nestle and foreign business consid- cred only two roads in the state reach as high as six per cent; five reach four l per cent, and the remaining earnings are 1 on descending scale reaching as low
 as the fractional part of one per cent. 1 The capitalization upon which the earn | ings are based Is much below the aver l age capitalization of roads in the United States. and in no instance Is as high as l this average.
 The figures presented conelusively show
 that on domestic business the earnings
 would be less than the legal rate of in-
 terest in Alabama upon the capitalization | of the various roads operating in this
 state, reduced as low as one-fourth of l the funded debt stocks and bonds. 1 The opinion prepared by Associate Com | missioner Sanders goes exhanstively into
 the whole question, and the facts and ar
 guments set forth are convincing. Tho
 opinion follows in full:
 Opinion In Full.
 Frank s. White, B. B. Conner, ct als., vs.
 Louisville and Nashville Railroad Com
 pany. ct als Opinion by Associate Com 1 !.
 The compliments in this cause peti- | ton the railroad commission of Alabama l (D to estab blish in this state the Georgia l classification as to commodities, and to l put in force in Alabama the freight tar- l iffs which now obtain In the state of Geor- gia; @ that just and reasonable rates be made and maintained for the carrying of freight by railroads from points on the Tennessee river in this state where rail- roads connect with such points. and (3) that reasonable joint rates be established between boats plying said river and rail- roads which connect with them on ship ments within this state.
 | The case has been elaborately and ex- | haustively presented and argued most | ably orally and upon written briefs. both | by the complainants and the defendants; | and has received the fullest measure of i consideration on the part Of the commis- l sion.
 Section 10 of the act of the legislature of 1 Alabama. approved February 2S. 1903. pre-
 scribes that the commission shall exer- I else a watchful and careful supervision | over all tariffs and their operation. and l revise the same. from time to time as jus
 tice to the public and the railroads may require, and increase or reduce any of the rates, as experience and business opera | tons may show to be just. but in revising | the tariff, the commissioners shall take | Into conslueration the nature or the Serv- 1 ice to be performed, the entire business of | the railroad, and It's earnings from pas- senger and other traffic, and so revise tho same as to allow a fair and just return on the value of the railroad. It's appurte- nances and equipments"
 This legislative enactment imposes a | limitation upon the authority of the com missioners, and is in recognition of the fourteenth amendment to the federal con I stitution against depriving a carrier of its property without due process or law, and denying to it the eqnal proiect!on of the lava. smyth vs. Ames. 1ea U. S.. page 46s
 Power Not Arbitrary.