The Montgomery advertiser., 1903-07-05

| per cent which it would be just ana proper for smaller sums to earn.
 Only Two Roads Earn Over Half Legal Interest on All Business in Alabama.
 ever. that of the Louisville and Nash vile. and Western Of Alabama, no rail road within this State. as 1t appears from the above tables, one and two earned for the fiscal year 1ed2 upon its entire business in the State more than one-haif of the legal rate of interest which obtains in Alabama. Only Ave others show an earning of as much as one-half of the legal rate of interest, or per cent. A few show actual de- ficits, and the remaining earnings vary from the fractional part of one per cent to less than four per cent.
 2 Per Cent Highest Earning on
 Domestic Business.
 With the interstate business eliminated from consideration. as this Commission is required to do under the law govern Ing 1t. it will readily be seen that the above earnings, where any earnings at all remain, will be reduced fin the highest instances to two per eent--or just one fourth of the legal rate of interest in Alabama and this Commission does not
 
 flair and just return" guaranteed to the railroad companies doing business In this State by the Constitution of the United States, and the State of Ala bama, as well as the act of February, 1908 clothing us with the powers which we possess, and to which we must look for guidance.
 Especially would this seem to be the proper ruling at this time, when 1t is ~ hnf An taken from the records of admittedly the most prosperous year in the history of the railroad companies in this State, namely. the year 1s02 If not exceeding a 2 per cent earning upon the invest ment. in the highest case. is shown for the most prosperous year in the life of a railroad. 1t would be manifestiy unjust to establish a rate which would yield a materially smaller per cent, should the present continuing prosperity not en- dure. and necessarily a much smaller per cent under adverse business conditions. Railroads Not Required to Give Same Rates in All States. It Is no sufficient argument nor answer to say that rates that can be maintained in Georgia can be maintained in Ala bama. Railroads may not discriminate against the people of any one State. but are not necessarily bound to give the same rates to the people of all the States. as the kind and amount and cost of business vary in the several States" '" In this connection 1t is interesting to note that, notwithstanding the higher rates prevailing in Alabama. the rail- roads in this State earned less money in the year 1902 than the Georgia rail- roads. If the Alabama roads upon a higher rate were unable to earn as large per cent as the Georgia roads upon a lower rate, 1t would clearly follow that the disparity between the, earnings of the roads in the two States would be further widened by placing Alabama upon . lower rate than that which now ob- tains; and if the Georgia earnings are to be taken as the correct and proper standard for this State, it does not seem that a general reduction in rates at this time will result in placing Alabama upon that basis.
 | This disparity in the earnings of the several railroad companies doing busi- bama would further seem to emphasize the inference that the kind and amount and cost of business" do vary in these States.
 Hay and Grain Rates. l Tn March, 1903 the Railroad Cemmis- 1 sion of Alabama ex mero motu cited the
 several railroad companies doing busi-
 ness fin this State to appear before them at the May session of the Commission to show cause why the rates should not | be reduced in Alabama upon hay. grain. and all the products of grain, including the home-raised and foreign products: I Upon the day set for the hearing of this question, the petition of F. 6. White, B.. B. Conner ct als in the present case under consideration was filed with this Commission.
 This petition calling for a larger and wider consideration, and its scope em- bracing a discussion of the questions in- volved in the case of the Railroad Com mission of Alabama against the several railroad companies in the State, by con sent of all parties concerned, the hear | ing upon both questions was set down for one and the same time, namely, June l 18th, 1903 In the case of the Commis- sion against the railroad companies an order has been made reducing the rates in Alabama upon hay. grain. four. and | all of the products of grain, constitut- ing classes C. D. and F. in the freight classification of the various railroads
 peas having been placed in class D; also fixing a very low rate on home-raised syrup and potatoes; and adopting q gem eral rule providing for a reduction of | 10 per cent from the sum of two locale.
 These orders will result In large and SuDStanJldi savings dHuuAtty ln AEo18nS charges to the people of Alabama; and
 will also stimplate the home production of the commodities embraced in these classes; in this way promote the agricui- l tural development of the State; and thus | increase the trafic in these articles to such an extent that the increased busi- ness will supply additional tonnage and thus compensate the railroads affected by the reduced rates.
 Further Reductions Not Justified. Having made these reductions in the life. where 1t seemed to the Commission that any reduction should first be made, this Commission is not of the opinion that 1t would be justified in making further reductions in freight charges at this time, and in granting the petition of complainants to establish in Ala bama the Georgia classification as to commodities, and the freight tariffs which exist in that State. believing that to do so would prevent the several rail- road companies in this State from earn ing "a fair and just return" according to the requirements of the law creating this Commission.
 As to that portion of the petition which requests that reasonable joint rates be established between boats ply ing the Tennessee River and railroads which connect with them on shipments Commission has no Jurisdiction in the premises The act creating this Com mission. and from which 1t derives its | .aa-.