The Montgomery advertiser., 1905-04-05

return on their securities on intra- state business when they audit the products or Alabama which move interstate in or out of Alabama as interstate busi- ness. He believed that the State should be credited with the traffic originating from this State.
 MT. Compton replied that they re- quested nothing from the Commission but he would say that the State gets business in the way of Improvements and better service intra-State. Also Alabama should acknowledge that 1t is the part of prosperity to market It's products outside of the State. Wants to See Securities. The President called for all the se- curities on the South and North d. vision of the Louisville and Nashville Railroad. In June. 1904, he said the bonds on the division amounted to $9.- 991, ,000, and the stock $3,4S3,600. The President understood that s2,000,000 had been added to the securities since the end of the 1904 fiscal year. The Louisville and Nashville Rail- road is now extending a line from Hia- wassa to Cartersville, Ga. The chair man catechized Mir. Compton at length on new lines of the road and proposed Improvements.
 
 Nashville Railroad operates freight trains seven days in the week in Ala bama and six days in Georgia.
 Answering Mir. Smith of the Louis- vile and Nashville Railroad, Mir. Compton said that in the last six years the earning and prosperity of the road have increased and that 1t has been because of the prosperity of the peo- pie served and their satisfaction in u.nt tpA aARfsa IL. patrons of the road are pleased with the service and that is in part respon- sible for the increased prosperity. MT. Compton also admitted, in answer to the President, that the more the trade of State is confined to the borders the more money is retained in the pockets of the people of tha State.
 General Counsel Stone of the Louisville and Nashville Railroad, asked MT. Compton if it was not like ly that the fertilizer manufacturers and shippers would combine and take their tribute from the farmers on ac- count of decrease in fertilizer rates. The witness replied in the affirima- tive.
 The examination lapsed into bank ruptcy in railroad circle and President Conner said 1t was strange that when railroads go into bankruptcy they emerge from it with increased stock and put 1t up as a trust lien on fu- ture generations"
 Vice President Cuip, of the Southern Railway, said the chairman misunder- stands the situation when he (Mr. Comer), believed that his road did not give Alabama credit for traffic origi- hating in Alabama, destined for Ala bama and passing through Alabama. When the assessments are made on the traffic for interest, consideration is given to this inter state traffic.
 Mir. Culp said further that the traf- fic originating in Alabama is of a low class compared with other States pierced by the road. This may possi- bly, explain away the mystery that there is a little profit in other States even with the low tariff that exists.
 MT. Culp Says He Knows.
 MT. Culp in talking of fertilizers and rates on them said that ne had been told by the Chairman Monday that he (Mr Culp), did not know any
 q think do know something about it," added MT. Culp.
 The Chairman said he did not mean Monday to be so captious.
 The President said the trouble with the traffic men before him was that they could not appreciate small amounts which are much to the farm
  crease in cotton production in Geor- gia as the result of lower rates on fertilizers.
 Since 1869, the Louisville and Nash vile Railroad, said MT. Compton, an- swering Mir. Smith, the road has given low rates on fertilizers with the idea of increasing the tonnage and that President (Mr. Comer). The latter said, laughing, that he had always claimed the theory was the result of the experience of ages.
 H. M. Emerson, freight traffic mana ger of the Atlantic Coast Line, testified in behalf of that road. He repeated the fertilizer rates per ton of 2.0O0 pounds for the following distances: For 40 and over 35 miles, $1.40; 50 and over 40 miles. $1.50; 65 and over 50 miles, $1.6O; 75 and over GO. $1.65; S5 and over 75, $1.70; 95 and over S5, $1.75; no and over 95, $1.S0: 120 and over 110, $1.90: 150 and over 120, $2; 16O and over 150, $2.10; ITO and over 160, $2.2O: and 190 and over ITO, $2:30.
 Mir. Emerson said the net earnings in the State of Alabama and on intra- state traffic do not warrant reduction in their rates on fertilizers which were quoted in carload lots.
 The gross earnings of the Atlantic Coast Line with its 240 miles in Ala bama were $1,145,431.95 for the last fiscal year. The gross earnings of the line on intra state business last year were $677,619.59 and that If all the operating expresses and other items charged to the traffic were deducted the net earnings intra-state were only $9O,777.OS.
 Coast Lime Would Increase.
 MT. Emerson said this was not a fair return on the property in the State, being less than half the legal rate of interest. He said he thought the Commission should allow the Att lantic Coast Line to increase the rates of fertilizers.
 The North Carolina rates on fertilizer are no lower than in Alabama on the Atlantic Coast Line, said the speaker.
 MT. Emerson said, answering Com missioner Sanders, that he did not be- lieve the old Alabama Midland proper ties acquired by the Coast Line could be rebuilt at the price at which the mileage capitalization is placed
 The President said calculations are now progressing for road through the southeastern section of the State at lower rate per mile than was quoted for the Atlantic Coast Line.
 The chairman also reminded MT. Emerson that the Atlantic Coast Line should be very grateful for the de- velopment of Dethan and other south east paints of the State owing to Aux in the form of fertilizers.
 The President said his part of the Commission was willing to accept the Georgia rates on fertilizers if the Att lantic Coast Line would give them.