The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-17
Ratio of Domestic to All Business.

The foregoing table shows results from
all business, both domestic and interstate
business; and it therefore becomes neces-
sary to ascertain what portion of the
entire business In Alabama is domestic
In order to arrive at the proper basis
upon which freight rates In this state may
be regulated.
The evidence discloses that the follow
ing percentages of domestic or local BUSH
ness to the entire business In this state
apply to the several railroads 1entioned,
namely: Central of Georgia, 30 Is per
cent; Atlantic Coast Line, 30 l per cent;
Southern railway 1913 per cent; Mobile
and birmingham division of the Southern
railway, 10 per cent: Mohll, and Ohio.
20 per cent Kansas City. Memphis and
birmingham. is per cent, Alabama Great
Southern. 1864 per cent; Louisville and
Nashville, 81 % per cent. Western of Ala
bama, 2S.13 per cent; Northern Alabama.
So per cent: Montgomery divisaor of the
seaboard Air Line, IS per cent; Huntsville
division of the Nashville, Chattanooga
and st. Louis. SO 1-3 per cent; Chatta
nooga Southern, 10 per cent.
Extra Cost of Domestic Business.
Another factor of lportanoe to be con-
sldered In reference to domestic buSi-
ness is the increased cost of doing 1t.
The evidence is uncontroverteG that 1t
costs more to do domestic business than
through business. Some of the reasons
advanced for this are, among others that
the volume of Interstate business IS
greater, therefore, the cost proportionate-
~ less; that relatively more numerous
crews, longer time and more frequent
stops, which enter largely into the cost
of transportation. are required to handle
domestic business; that the maximum load
OF train throughout its rl'n is rarely
ever devoted to domestic BUSINESS, that
trains handling this character of busi-
ness frequently start upon their journey
loaded, and reach their destination empty,
or practically so, or start out empty
and take up their cargo in transit and
that thus all of the units Of the train are
not revenue producing. there being al
ways loaded and always empty cars on
trains doing domestic business while
trains doing a through business carry the
ma ximnm load in shorter time, and with
less handling
As to the percentage of increased cost
of handling domestic business. there is
some difference of opinion. In the case
of Smyth vs. Ames above referred to,
there was some testimony to the effect
that the cost Of carrying domestic freight
was four times as much as the cost Of
carrying through freight per ton mile;
there was other testimony that the cost
of the short haul was reasonably double
the long haul. There was no testimony
In that case that the extra cost of do
nestle business was less than 10 per
cent greater than the cost of all ether
business: nor was there any testimony
before the commission upon the trial of
this case that the cost of doing domes-
tic business was less than 10 per cent
greater than the cost of all other bus
mess. The tendency Of the evidence in
this case was to the effect that 10 per
cent would hardly represent the additional
cost of doing this business, but as 10 per
cent increase from all the evidence Is
perfectly fair to domestic business, and
as thai is the rule adopted by the supreme
court of the United States in the Ne
braska case, we have thought 1t proper
TO adopt that rule in this case and have
accordingly done so.
Value of Roads.
II remains therefore. to ascertain what
Is the value of the road upon which earn
ings should be computed Tits y To be
done by considering all the elements
constituting value. to wit: the cost OF
construction, the amount expended in
permanent improvements, the amount in
market value OF its bonds and stock,
the present as compared with the original
eoet of construction, the probable earning