The Montgomery advertiser., 1904-10-16

The ruIe fixed by the statute of Ala hs ma under which the commission op- erataa and from which 1t derives all of lie mowers. provides that in revising ana fixing rates, provision must be made so 'as to allow a fair and just return on the value of the railroad, It's appurtenances and equipments In this the statute but recognizes the well established guarantee or the Federal Constitution. This rule mas been ad- hered to by the commission in the de- termination of all matters submitted to 1t.
 Material reductions have been made by the commission in the rates upon the necessities of life; and favorable rates have been made looking to the establishment and encouragement of new industries; but many petitions for reductions have been denied because of the rule above referred to. and the construction by the Supreme Court of the United States of Q similar statute.
 ''A careful study of the question in- volved in rate-making has convinced us that. in order to build up our own State as a whole, 1t is of vital import ance that favorable interstate rates in- to Alabama should prevail. Of the to- tai amount of approximately twenty five millions of dollars of business done in Alabama, only about one-third was strictly intra-state or domestic busi- ness. It is an error to assume when considering the rates which apply Tn Alabama, that they are only the local rates between points within the State. On every article and commodity of commerce. not actually grown or man. ufactured in this State, the actual rate with which the shipper, consignee, or so to fha o< the local and interstate rates. It is well established that the State Rail- way Commissions have no Jurisdiction over interstate rates. nor can they con- trol or effect them.
 A1abama's Advantage.
 We found to our great satisfaction that the distributing centers in Ala bama have for many years enjoyed a superior advantage as to interstate rates, and that under the influence of these favorable interstate rates many manufacturing enterprises have locat- cd in Alabama, and that our State as a whole has grown and prospered to an unusual and remarkable degree, un- precedented in its history. We also found that the sum of the local added to the interstate rate from Ohio and Mississippi river crossings and wes- tern points gave the smaller towns and cities in Alabama an average rate equal to that Of our sister States, while the advantage to our distribut- ing centers over that of the distribut- ing centers in adjoining States was great. We found also that the earn ings of the several railroads in Ala bama, upon the present basis of rates, did not yield more than a fair return upon >the capital actually Invested in them; and that radical reduction in local rates generally. would logically result in a corresponding increase in the interstate rates, over which we had no control: and. SO finding, we were convinced that aside from the legal obstacles in the way, a sweeping reduction in domestic rates would not only not be advantageous. but would operate greatly to the detriment of the business intereaEs of Alabama.
 When we observe the earnest and futile efforts of the State of Georgia, through it's Railroad Commission, to get the alleged determinations from Ohio and Mississippi river crossings corrected against the cities of Atlanta, Macon and Columbus, and other dis tributing points, and the death grap- pie in the courts of Georgia to secure for those cities as favorable rates as the cities of Alabama now enjoy. and have enjoyed for many years, we are convinced of the wisdom of our course has been justified, and are constrained to felicitate the citizens of Alabama upon the friendly feeling which has existed between the railroads and the people of this State It is a fact which may be known to all who care to in- form themselves that our distributing centers in Alabama enjoy an interstate 0 rate from Ohio river points from 20 to 25 per cent lower than our sister State of Georgia enjoys. That this advan- tage could not be compensated for by any reduction of domestic rates which this Commission could at this time make. cannot be gainsaid.
 We again express the hope that tho continued prosperity of the country and the increase of business may make 1t practicable at no distant date, to make further reduction in freight rates in a spirit of fairness both to the people and the railroads. having always in view the solid, substantial and conservative interests of both the people and the railroads. To do sn earlier and in a different manner and spirit would be suicidal both to the business interests of the people and the State, and the railroad companies: and would result in stopping the wheels of progress that are gradually and safely forging Alabama to the front ranks of all the States. in the development of our mineral, agricultu- ral and industrial resources"
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