The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-07-04
Mr.. COMER'S VIEWS
ON FREIGHT RATES
President ofCommisSion Thinks
He Sees Gross Irregularities
MAKES TWO COMPARISONS
Says Railways Place Valuation High
to Get Money for Dividends and
Low When Assessed
for Taxes.
MAKES TWO COMPARISONS

Montgomery, July s.-(Specitl)-B. B.
Conner president of the railroad commits
sion, read at the opening of the commits
sioners session here today his opinion
regarding railway freight rates in which
he dissents from the conclusions reached
by the majority members of the commits
| sion.
| The opinion contains considerable stalls
| tical information presented in tabulated
| form, all of which is intended to elucidate
Mr. Corners idea of railway rate reform.
After reviewing somewhat tediously the
history of the action upon which the dis
| senting opinion is based, Mr. Conner goes
into the question of railway valuations
and railway earnings.
| Regarding the question of railway earn
| ings Mr. Conner said:
Regarding Railway Earnings.
1.-The legal rate of Alabama is per
cent, and If the railroads and the ma
| jority of this commissions interpreta-
| lions of the law regulating railroads in
consequence of these court decisions are
| correct, and regardless or what ever ex-
| tortion and discrimination there might
be in the rate charged. they could assess
the shipments along their lines sufficient
amount to earn per cent from their do
nestle business earnings on, say one
| third of their value of their property, or
s per cent on their entire business and at
their valuation of their property, 1t can
easily be seen from their statement OF
their earnings on some OF the roads at
least they could charge an amount that
would confiscate all the products offered
for shipment on those roads. For instance,
as shown in table No. 2. 1t is claimed the
Southern railway Is only earning 9-10 OF
/ per cent, or eight times what they are
now charging on their local business to
earn eight times as much as they are
now earning. And as shown in table No.
they are all earning 1-16 per cent on all
of their business, whereas they are en-
titled to earn s per cent practically four
times as much as they are now earning,
and could under the courts decision
charge without hinderance from any pow
er sufficient increase In rates to earn
four times as much as they are now earn
ing; and as shown in table No they are
earning per cent on only $4,000 per mile
valuation. whereas under Mr. Green,
their traffic managers evidence, they are
entitled to earn per cent on SCI, 600 per
mile.
".Take the Central road, under Table
No. 2, they are only earning l lilo per
cent on their entire local business. where
as they are entitled to earn per cent
They could charge nearly eight times as
much on their local freight as they are
now charging; and in Table No. they
show they are only earning lilo per cent
on all their business. state and Interstate,
while they are entitled to earn per cent
or nearly four times as much as they
are now earning In Table No. they
are earning per cent on only S9,4n per
mile valuation. while they are entitled
to earn 8 per cent on 1880 per mile val
uaton.
1.-THE Louisville and Nashville In Table
No. 2 are earning only 2h per cent on To-
cal business. whereas they are entitled TO
earn per cent. or could charge suffclent
increase to earn three and one-half times
as much as they are earning and in
Table No. g. on all of their business they
are earning only 2-10 per cent. where
as. they are entitled to earn per cent,
or could charge sufficient to earn twice
as much on all of their business as they
are now earning. In Table No. 4. they
are earning per cent on only s2s.ooo per
mile and are entitled TO earn per cent
on $53.500 per mile.
"Tn Table No. the Coast Line earn
ing 2-1O per cent on their local business.
is entitled to earn per cent. or couid
charge two and one-half times as much
as they are now charging; and on their
entire business, as shown in Table NO. 3,
they are only earning $40 per cent
whereas they are entitled to earn per
cont or nearly twice as much. In Table
No 4 they are earning per cent on
only $21 800 per mile whereas they are
entitled to earn per cent on $39'2l7 per
mile.
Railway Valuations.
1.-THE Seaboard Air Line and Nash
vile, Chattanooga and st. Louis as
shown in Table No. q are running at
loss. whereas they are entitled to charge
a sufficient increase to earn at least
nine times as much as they are now earn
ing on their local business; and Table
No. shows a deficit on all of their bust
ness. whereas they are entitled to earn
nine times as much as they are now earn
ing, and there would he no law or power
to hinder them.
About the Valuations.
1.-THE Atlantic Coast Line in their evil
dence before the auditor of the state,
placing the value Of their road, includ-
ing rolling stock. at Ss7f0O per mile. and
the value before the commission as $685.
217 per mile. shows that they are willing
to tax the people five times more than
they are willing to be taxed by the
people
erbe Louisville and Nashville value to
be taxed by the people was $1,000 per mile,
and s53534 per mile to tax the people.
shows a difference of six hundred per
cent in their ideas of valuation when
taxing and being taxed
.The Frisco's statement to the auditor
was s5716 per mile, and $4,000 per mile
to the commission. nearly seven hundred
per cent difference: these comparisons
clearly show the bias Of sef-interest, and
these comparisons also show that the
Louisville and Nashville, according to Ia
BILE No A. are now earning. according to
tirejr own statement subject to all the
bias of self-interest. eight per cent on
four times the amount they say their road
Is worth when giving 1t In to the state
auditor. And the Coast Line comparing
with the same tables, are earning 8 per
cent on valuation of practically three
times as much as they gave in to the
state auditor. and the Frisco Is earning
per cent on a valuation of $4,000 per mile
or nearly six times as great as they gave