The Montgomery advertiser., 1905-05-05

Butter Butter ..... .ao .2s .2s ssasnes ssasn :, ..:: ::.: .:sss :d5ss .5s ..55ss Domestics .25 II IF rn3,o1 rl9ws ,i;... ,ie. .2s .ds 'Ss 'SSss Cement (less car
 A Reasonable Rate.
 Mir. Green. asked for a definition of reasonable rate. said he considered 1t traffic allowing a profit to the producer, without burdening the consumer, and permitting fair return on the invest ment of the carrier"
 MT. Green said that the Southern Railway in Alabama has reduced the rates on cotton to the mills in the State.
 Talking of cotton rates, the Chair attitude towards the cotton -'nill de- velopment. He said he hoped the rail- road men would not associate his pros ecution of the movement with any self terest in the Avondale cotton mill. of Avondale. He said that would look as If he was shooting at short range. :" He said that his mill would gain less. perhaps, than any other from reduced rates.
 The Chairman named the Central Of Georgia Railway. the Alabama Great Railroad. the Memphis and Charleston, the Selma and Mobile. as having been acquired in the majority by the south ern Railway since the road came into Alabama. This was apropos. accordin ? to the Chairman. to the statement of the Southern that the road IS losing money in Alabama.
 said uniform rates should be made tor all those lines as they are of common ownership.
 J, M: Gglg, vice.Prssissnt .s ,,,s of the the Railway traffic officials have never al. tated the rates on the lines named nv the Chairman.
 The Chairman here disputed again
 MT. CuIp said the stocks and secuc1- ties of any road always exceed the money originally put into the road. He thought this ought te have osen pat- ent to the Chairman.
 Statement of Southern.
 Mir Green read a statement of the gross earnings, the operating expenses, the stocks. etc, of the Southern Rail- way, as follows:
 Railway in Alabama, from all sources were s5.s2s, ,75s.s7.
 ''The total operating expenses with, to $4.454.120.35.
 Earnings in excess of operating ex- penses were. therefore, $1,174,63362.
 The net earnings without any de- which amounted to $172,1S419. or for spent on improvements within the State, which amounted to S6l,291.4l, did not produce a return at the iegad5 per cent, on valuation exceeding $14.064 per mile. and did not produce a return at per cent on valuation exceeding $22.500 per mile.
 n fnflI sum expended for improvements within the State, the remainder would yield & per cent interest on valuation not exceeding $11.270 per mile, and 5 per ceeding $1S.030 per mile.
 "Deducting from the net earnings only 45.79 per cent of the taxes paid in Alabama, and nothing whatever for the expense of Improvements. and the re- suits represents 8 per cent on a valua- tion of $13.572 per mile. or per cent on valuation of $21,7l5 per mile ..ooL per mile of the Southern Railway in Alabama amounts to $26.S73; the bond ed indebtedness, $24,356; a total or SoI,- ,2s per mis snd tSa adeng would De in creased to S52.3S7 per mile. which is the maximum that could possibly pc tenn in the State of Alabama
 Cost of Building.
 ''Expert testimony presented to the Federal court for the Northern DIS, trict of Georgia, showed that 1t would cost to reproduce the lines of the exist at this time, at $45,155 per mile.
 Tn the case of the Interstate Com merce Commission versus southern Company before the Circuit 745, affirmed by c. c. A. 132 F. R. SOo), the court stated, in dealing with the question of the value of the southern Railway that the evidence den IS that tla odd l1 per mile oe road to reproduce the road, terminals and equipment of the com pany, considering the cost Of acqulrlns what may be called the good will of US
 We have not heretofore been called upon to determine by. expert examlnd- ton what would be the cost Of repro way in Alabama as they now exist; but if has been shown that as to the South ern Railway System. the cost approxi- mates $5O,OOO per mile. and that 9 as 10 the State of Georgia, the lines could not be reproduced for less than $45'ooO per mile. .,t.. that the lines of the Southern RaiiIway gay in Alabama could not be reproduced TOT less than $45.000 per mile. 1,..,..
 Chairman Conner reminded MT. Culp of a law on the Texas statute books which compels an examlnattiion 1i hl all NJ fore they are put on the market; He said corporation lobbyists threatened to withdraw all investments of rall- roads in Texas If this law was going to be passed. The purpose of the law, said Mir Conner, was to squeeze all me water out of stocks. The resul', ne said, is that anybody has no Tear or investing in Texas railroad securi i-s and investments are still Tn progre-j in Texas.
 The chairman read a letter from past chairman of the Texas Commis- sion giving a history of conditions since the reduction of rates which showed increased net earnings or the roads and diminution of bankrupted
 MT. Green said that was nothing strange as even with gradual rate re- 1uctiOns in Alaba ma there has been an approach on the Southern to net
 The Chairman said if the traffic man ager insisted on his belief that the mileage valuation of his road in Ala oama Is at at least $45,OO0 he (Mr ireen), would have many to disagree
 Nevertheless" answered MT. Green, I still have my belief. sir
 The chairman quoted increases in southern Railway securities for mum per of years in the past and the wit ness said that never has there been time when Alabama contributed to he increases.
 Chairman Conner here made T mo- ton that the Southern Railway adopt for Alabama on all its lines Class 6 and Classes A, B, C, D. P. F, c, H, K. L, M, N, o and P of the Georgia tariff. These classes include. according to
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