The Montgomery advertiser., 1905-05-09
LETTERF FROM MIR. SMITH
PRESIDENT OF L. X N. WRITES
 RAILROAD COMMISSION.
He Sets Forth Additional Facts as to Operation of His System and Speaks of Employees in
 Alabama.

When he returned to his office in Louisville, Ky, from attendance on the meeting of the Alabama Railroad Com mission President Milton H. smith or the Louisville and Nashville Railroad Company wrote the commission a let ter giving additional interesting facts as to the operation of his system in Alabama.
 The full text of MT. Smiths letter is as follows:
 Louisville and Nashville Railroad
 Company, Presidents Office.
 Louisville, Ky, May 6, 1905. Alabama Railroad Commission,
 Montgomery, Ala.
 "Gentlemen:
 "At the hearing on yesterday, inquI- ries were made as to the financial con- dition of the Louisville and Nashville Railroad Company, the tenor of which was to the effect that it was receiv- ing an excessive revenue for services rendered. Attention was called to the fact that the gross earnings for year ending June 30, 1904, 2,955.9S miles were $1S,974.336.93. and for the year ending June 30, 1904, 3,637.S miles S36,- 943,792.73.
 Tt is, think, apropos to call your at tention to the fact that the earnings for the year ending June 30, 1885, 2955.5 miles were $22,403,6 ,639.25, thus
 
 June 30, 1894 of $3,429, ,302.32. No div idends were paid to stockholders from result of operations of that year, or for several years thereafter, and to avoid default, it was necessary to reduce the pay of all of the officers, employees and agents of the company twenty and ten per cent, which reduction was contin- ued in effect for between five and six years, such officers, agents and em- ployes loyalty serving the company for reduced compensation, and the stock holders, during the same period, recelV- ing no return on their investment.
 During this period of depression, the amount expended by the Louisville and Nashville Railroad Company for mate rial and supplies was reduced to a min- imum.
 The operating expenses and taxes for the year ending June 30, 1894, amount ed to $12,464, ,143,S6, and for the year ending June 30, 1904 $26,063,24S.25 which is conclusive evidence that the increased prosperity of the company as evidenced by It's improved financial condition, has been participated in by the communities which it served. The increase in revenue is altogether due to | increase in traffic. such increase in freight traffic having been secured at material decrease in the average rate per ton per mile received for transport ing property. The enormous increase in traffic is conclusive evidence that the rates for the transportation of prop erty have been adjusted so as to pro mote and create traffic, which would not have been the result had they been excessive.
 q also invite your consideration to the fact that the Louisville and Nash vile Railroad Company employs very large number of citizens of Alabama, and that such citizens are of the best element. Officers, agents and employees of the Company must be sober, intelli- gent and industrious; they must pay their debts. Necessarily, their exam pie exercises a beneficial influence in all communities served by the company. They have the respect of other citi- zens, and are entitled to the same con sideration as other citizens. tho only distinction being that they are not per mitted to hold public office while in the employ of the company.
 Tt is hoped that contingencies will not, in the near future, render a cessa- tion of dividends to stockholders, or d reduction in the compensation paid em- ployes, but that stockholders may con- tinue to receive a reasonable return on their investment ,and employees a req sonable compensation for services rem dered
 q remain. Very respectfully.
 M. H. Smith,
 President"
 The letter of Mir. Smith has beer filed with the other records of the com misaion and will be considered Gt it. next meeting.