The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-07-04

In to the state auditor, while the Central
earning interest on only $500 per mile,
and whereas their road is 20 per cent in
Georgia., and 80 per cent in Alabama,
shows according to this statement that
they are earning in Georgia on the low
Georgia commission rates, which they
protested were confiscating, sufficient
amount not only to pay interest on their
lines In Georgia, but also to bring over
to Alabama a sufficient amount from
their Georgia earnings to pay all de-
ficiences which occurred In Alabama.
1.-THE Southern road with nearly all Of
its holdings in Virginia. North Carolina,
Georgia anG Alabama, being in the three
former states under strict railroad COM
mission rule and very much lower rates
tlan in Alabama, their statement show
ing eight per cent on only 12,UJ0 per mile
in Alabama Evidenced, If this statement
is correct, that they are making up their
losses which come from their high To-
ca. rates in Alabama from the surplus
Il at they make by operating their roads
under the low local rates of Virginia,
North Carolina and Georgia. All of these
roads showing in their reports to their
stockholders (see Ports Manlal OF Rail-
roads, greatly increased earnings ana
large increase In the value of their stoc--s
ard securities.
"The Louisville & Nashville, with
nearly half its owned lines In Alabama.
has doubled its earrings within the last
few years and with Its valuation OF
s5s. 800 mile the stock is selling at a47
share Of one hundred dollars.
Taxing and Being Taxed.
''There is so vile a difference in the
valuation of their property at which
the railroads give H. In to the auditor
or which to be taxed for the use OF the
st. te. and in giving in value to the
state railroad commission for the pur-
pc Sc of taxing the people, ana also
such a wide difference when they give
II. the amount of incomes to the rail-
road commission as basis for making
freight rates or which to tax the people
of the state in order to get a reasonable
return of eight per cent on their prop
erty in the earnings to the stockholders,
on which earnings they base the value
o. their stock on Wall street or else
wt.re that / think 1t would nave been
wise for this com mission to allow the
courts of the state TO investigate what
is a reasonable value OF the roads ana
on what valuation rates should be
fixed. as I take it, no state or any law
would allow an extortionate rate; nor
ary state or any law allow fctitiouz
or Fictitious val alton on which the
law can be invoked to force a payment
OF income; nor an. state or law allow
a franchise orporation-public carrier
to water their bonds and stocks ad
libitum and then invoke the law to
hold the properties or the state whiie
they force a tax levy to cover their
ideas OF jrst, income. The cupidity Of
man is too dangerous. the versatility of
figures TOO easy; u state can guarantee
TO A. public carrier eight per cent on
ter valuation of their property. much
less can this be done when the railroads
have the unhindered and unquestioned
statements both of valuation and In
come.
s'Tbe oninion OF nv associates is no
doubt valuable but they might possibly
have the bias OF environments. and 1t is
a very grave question to have the opinion
of two men so environed a flanalitv on so
important a business Droposition. Tne tax
ing without positive limitations of 10000
900 out of the producer. manufactures and
consumer. the supreme court might pos
sibIy differ from them In their construc-
ton of the law and their findings and APP
piications OF the facts. From my associ-
atas' decision against the people there Is
no appeal except to the ballot. II this
decision had been made against the rail-
roads. every court of the land would have
been open to the railroads for a rehear-
ing and correction.
1.-The fear that state control will be
abused Is not good reason for leaving
in private hands an ungoverned power
over the state. If the railroads. or the
public, one or the other. must take O
risk. I think consideration should first
be given to the public. There is nothing
sacred about a freight rate the con-
science of traffic manager is not hal.
lowed: the demands of railroad bond
and stakeholder is not free from selfish
desire. A conservative officer enforces the
law.
Purpose Of the Commission.
This commission. elected in the Interest
of the people to protect them from unrea.