The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-06
RATE ON COAL TO
Be INCREASED
President Smith of the |. & N.
Makes Announcement
Conner SAYS HE is HUMAN
That Is the Reason He Did Not Raise
Wages of His Employees
When Cotton Was
Up.
Conner SAYS HE Is HUMAN

Montgomery May 5.-(Special) AT the
meeting of the railroad commission today
President Milton Smith of the Louisville
and Nashville said that on May % his
road would increase the rate on coal from
the Birmingham district to Alabama City,
Gadsden and Admission for all purposes
save furnaces from 80 cents ton as now
to 10 cents. This followed a kick from Tai
ladega for the same rate as these other
places.
The commission completed the hearing
of the Louisville and Nashville railroad
and the Nashville Chattanooga and st.
Louis railway today In the investiga-
tion of freight tariffs in this state with
a view of general revision.
The testimony of the Louisville and
Nashville consumed the major portion of
the time, during which President Milton
II. Smith and General Traffic Manager
c. b. Compton were under examination
President Smiths statements were nearly
all voluntary, and purported to show the
immense investments of his road in the
state of Alabama since its history began
in 1852. He told of how the entire proper
ties were bound by an aggregation of the
municipalities along the line until 1879,
when, he said, they were unfortunately
acquired by Spectators He admitted that
two years thereafter the capital stock
was increased from 80, 600, 600 to SIS, 100000.
and characterized this proceeding as very
culpable
Enormous Sum in Development.
He said, however, in the final justifca-
tion of the road, that since that time it
has spent in Alabama developments more
than the amount of the 100000 of addi-
tional capital Stock which resident b.
B. Conner of the railroad commission char
aeterized as ''watered."
Mr.. Smith said that now it was
fortunate thing for the road and its pa
irons that 1t is now impossible for specu-
lators ito tamper with more than mi
nority of the stock
Mr.. Smith reiterated today his denial of
President Corners charge that when the
Atlantic Coast Line in 1902 acquired a
majority of the Louisville and Nashville
stock there was found in its treasury
cash fund of $30000,000 Mr.. Conner again
said that his information on this point
was obtained from a circular issued by
the Atlantic Coast Line, but which he
could not produce, he said. at present.
President Smith announced to the COM
mission that 1t was the intention of his
road on May % to increase the rate on
domestic and steam coal from the Blrm-
ingham district to Admission Gadsden and
Alabama City from so cents to 20 cents
per ton. He said he would like to do this
with the acquiesence of the commissioner,
but otherwise its enforcement would be
attempted.
In explanation he said 1t was through
commercial necessity that the rate of 80
cents is given coal to those points
for furnace use.
G. r. Knox, general freight agent of
the Nashville Chattanooga and ST. Louis
railway submitted arguments as to why
the rates his line In Alabama should
not be reduced He submitted statements
showing annual losses on the operation of
the road in this state varying from $4,000
to $4,000.
compton's Testimony.
In his evidence before the commission
the following facts were brought out by
c. b. Compton of the Louisville and Nash
Vile:
The gross earnings Of the L. &
n. r. r. in Alabama for the
fiscal year ending June 30,
1905, as set forth in the re-
port of the honorable commits
sion of Alabama, are. ......... $40, 097, 672 .95
81 % per cent of said earn
ings is :. ................... s,152 4sS. 40
Number of employees in Ala
bama Observation-Disclosures. 9,2f0
Average wages paid employees
per day ACKNOWLEDGEMENTS. 1.b0
Total wages paid employees per
day :. ACKNOWLEDGEMENTS. 1882 90
Total wages paid employees per
month :. :. .................. 44496o 90
Total wages paid employees per
annum :. :. ....~.............. SAL. $50 90
Amount paid for supplies pur-
chased by L. & N r. r. in
the state of Alabama for
year ending June 3d. 1904. 3,314,S35. 03
(Attach al Is a statement show
ing items purchased)
State, county and municipal
taxes laid by the l.. & N.
r. r. for the fiscal year end
ing June 3d. 1904, approx
mately :. :. ................. 10000 90
Total paid by L. e. N. for
wages. supplies and taxes. S'946, .03
Therefore the earnings from
intra-state business were less
than the amount expended for
labor supplies and taxes... 5,794.0 21 "a
That is tc. say tho Louisville and Nash
willie railroad contributed to the benefits
of the state of Alabama an amount near
ly three times as much as it earned on
domestic or intra-state business.
The amount of taxes paid. state, county
and municipal Is approximately 1920 900.
About 90 per cent Of said taxes are de-
voted to educational purposes, you might
say for the education of the children of
the state. In making this calculation
have assumed that about so per cent of
the taxes paid are appropriated for that
purpose. The auditor at Montgomery will
give accurate information If this estimate
should be questioned
In addition to this. about 10 per cent of
the taxes paid by the Louisville and
Nashville railroad in the state of Ala