The Montgomery advertiser., 1905-04-04

s4.l54.12o.35. leaving balance of t1,- 17s.e33.e2 for the payment of taxes. im~ provements, interest and dividends
 The total taxes paid in the State of Alabsma amounted to $172,1S4.1g; the expenditures for Improvements. $e1.- 297. 41. leaving net earnings on all trafic within the State. applicable to interest and dividends, s94i.i5202.
 "on that traffic having origin and destination within the State the re. suits Of operation were as follows:
 The total intra-state earnings from all sources amounted to S2.577,369. z6.
 The total operating expenses prop eriy chargeab1e to intra-state traffic amounted to $2.2s7. .20e.22.
 Leaving balance of s2s0. fs0. .0l.
 '"rhe taxes accrued in Alabama amounted to Si72.1s4.1S.
 'The charges for improvements within the state were $6i.2e7.4f.
 Making total of $2ss.4S1.6o.
 Leaving a balance net intra-state earnings applicable to interest and dividends of only s46.s7S4s.
 The total annual interest of the Southern Railway for It's entire line for the year ended June 30. fe0S. amounted to $s.ei0,s51 .s2.
 'The average number of miles op- erated for the system was 7.16A39. The average interest ger mile of rcad was. therefore. $1,3a1.4S.
 'The average mileage in Alabama was i,04s.57. The interest charge properly applicable tc Alabama was s1. 9,e2S.2S of which interest charge the intra-State earnings in Alabama should bear its proper proportion.
 "As shown above, the net fntra-S State earnings in Alabama amounted to S2s0, ,166.04. or 23.s5 per cent of the to-; tai net earnings for the system. Therss fore. the interest charge properly ap- piled to net earnings from intra-state traffic was at least $33S.ss2 .2s.
 Summary of K3uslness.
 gro summarize, the intra-State gross earnings from all sources amounted to S2,577,3e9. .26, and the intra-stats ex- penses. exclusive of taxes and iIn- provements. amounted to 32.2e7.20s.z3, leaving the intra-state net earnings s2g0, 0,16O. 04, and even if interstate traffic should bear a proportion oe State taxes and improvements, the re- suits would not yield fair and just return to the Southern Railway Cofn~ pany in Alabama as may be seen by the following:
 "The total taxes accrued in Alabams amounted to $IT2.1S4.19. If we dis. tributed but 23. S5 per cent of this sun to intra State traffc. the charge would be S4t.065.93. The total expense Of improvements in Alabama was sSi.- 2Sf.41. The intra-State trafic should bear it's proportion of this sum. at least on basis of the ratio of frtras State earnings to total earnings wtth- in the State; namely. 4s.7s per cent. The charge would. therefore be szss- 06s .os.
 'The intra-state interest based on the ratio of ntra-state net earnings to total net earnings properly charge able in Alabama amount to xSs3,sS2.ss. Therefore, the total of these thres items on this basis would be S4oss- 0ls 90, leaving a deficit on this basis of S122.s56.s6.
 "ApplyinR the total taxes and ex- pense of improvements in AlaDama. az it should be applied. to tnttra-stats earnings the result would be as foi- lows: Total expenses in Alabama. s1T2,is4-ls Total improvements in Ala bama .............s.'s 0AsSet.aA Proportion of interest prop
 erly charged to intra-state
 traffic in Alabama SSS,SSS.sS
 
 Total .........s...'.s' .s''sootFeoF'1s eve thus have a deficit in intra-state earnings in meeting total taxes, im- provements. and proper proportion of interest charged of $2S7,204.4b.
 we respectfully submit that the re-
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