The Montgomery advertiser., 1903-07-03

home and saves transportation. The rail- way policy of the long haul has. been supplanted by the new system. and an exchange of products between different parts of the State is one of the com mendable results. and the roads net earn ings per mile has been increased. We commend the policy of these States to our railroads and Railroad Commis- sion, apd we have every reason to be- lieve from the experience of those States, that the same good results will be wrought out in our own State. Good for all. injury to none."
 Contention of Railroads. The railroad men contend that as the local Mississippi rates are considerably higher than those in Alabama it would be just as equitable for them to advo- cate the Mississippi rates as 1t is TOT Mir. Conner to advocate the Georgia rate. It is shown that the intra State rates of Tennessee, Kentucky and Illinois, so far as the Louisville and Nashville Rail- road is concerned, are the same as the intra State rates of Alabama.
 The attention of the Railroad Commits sion is drawn to the decision of the United States Supreme Court that rail- roads must be permitted to earn a fair and just return on the value of the rail- road. their appurtenances and equip ment, based on intra State business. 1t is said that 1t therefore follows that if the intra State earnings do not yield a fair return the courts would set aside any reduction made.
 The briefs show that some of the rail- roads in Alabama are operated with yearly deficits and that there has been a large percentage of increase in the prices of material used in operating the lines.
 It is also shown that the average capi- talization of railroads in the United States is $e4.0OO mile. while the highest $61 900 per mile, this being the Southern Railway.
 Brief by MT. Winburn.
 As showing the position of the railroads and the earning capacity of some of the lines. the following brief prepared by w. A. Winburn, Vice-President and Traffic Manager of the Central of Georgia Rail- way Company, is published:
 Savannah, Ga, June 22nd, 1903. Hon. John V. Smith. President Alabama
 Railroad Commission, Montgomery,
 Ala:
 Dear Sir-You will doubtless recall my verbal statement to the Commission, on the 17th instant, that our cost of opera tion had been materially increased by the higher prices prevailing on practically all of the articles used in the maintenance of the roadway and the running of trains
 ''In proof of that contention, beg to hand you herewith a statement recently prepared and sworn to by our auditor. showing the actual cost of certain SUD- plies at current prices and their cost if the prices were the same as they were in 1897, showing an increase in our expendi- lures for these supplies of $343, ,26o66. We submit that this is a sufficient reason why InA NNlafa uN,<sz -t,0 duction in our local rates on freight in Alabama.
 "1 also quote the statement of approxi- | mate earnings and expenses and net re- suits obtained by this company from the operation of it's Alabama lines, during the twelve months ended June 30th. 1902. | to wit:
 Mileage operated .............. 53S Gross earnings from operations. $1 ,685, 1903 17 Operating expenses .............. 1,2O9. $50. 20 l Naxes &,028. .63 $1,2s6, ,S7S. .sS | Percentage of fixed charges
 on basis of mileage for en- tire system-Alabama propor- tion 292 per cent of $1, ,663, ,s00.. 5Ss, ,OS9 II $1,SS4.96S .O5 I OeHClI ........................ ly9, ,664 .Se "As l explained to the Commission in person these results are approximate there being no actual accounting of the revenue earned in Alabama, separate from our earnings in Georgia. The earn- ings credited to the State of Alabama, however, include all earnings on traffic | passing to. from and through that State It does not appear from these figures that the Alabama business is now paying a fair share of operating expenses, taxes and fixed charges.
 l Reference was made by MT Conner in his discussion to the alleged stimulating | effect that the Georgia rates have had upon railroad building in this State. | wish to caIl the attention of the Commis. sion to the fact that during the past ter years. practically all of the additional milage constructed in the State of Geor. eia has been built south of a line drawr by the Georgia Railroad from Augusta to Macon aud by the Central of Georgia Railroad from Macon via Fort Valley tC Columbus. The mileage shown by the Georgia Railroad Commission in 1892 1T the territory north of this dividing nnt was 2,051 miles; 1902, 2.30S miles, an in l crease of 252 miles. In the territory soutl of this line. the mileage in 1892 was PAT miles; in 1902. 3,537 miles, showing an in crease of 1,060 miles. The territory lying ! 5OuIn Ok AS ILc ySllOW plne
 belt, and the mileage that has been con structed in this State during the past tel | years has, almost without exception, beer
 built for the purpose of developing th'
 yellow pine lumber traffic, and, in m,
 opinion, this construction has in no wis,
 been affected by the freight rates in Geor gia generally.
 T wish again to call the attention o
 the Commission to the somewhat unfor
 tunate position this company occupies
 with reference to the location of it's lines
 in Alabama. When the Montgomery ant
 Eufaula Railroad was purchased, 1t was
 the only through line from the west tC
 southwest Georgia and Florida, passing
 through the State of Alabama. The Co.,
 lumbus and Western Railroad and the Alabama Midland Railroad had not ther
 been built. Since the completion of the
 Alabama Midland Railroad large part oi l the through traffic formerly enjoyed by the Montgomery and Eufaula RailroaC has been diverted to the Alabama Mid. land Railroad Our earnings on that line and the Mobile and Girard and on the Eufamla and Ozark roads have also been adversely affected by the construction oi the Alabama Midland Railroad to and through Troy and Ozark, Ala, and by the building of the Georgia and Alabama Railway through Hurtsboro, Ala, and | parallel with the entire line from Mont | gomery to Eufaula. Our earnings were still further reduced by the building of the Union Springs and Northern Railroad | from TIniOn GDrin0s fo Fort Do1,ts