The Montgomery advertiser., 1906-06-19
--Ravings 0f D. D. Q. after

& w). Huntsville Division N. c. & St. L., and Chattanooga Southern. Rail- roads to perfect their systems. or cor porations to carry on paying busl- ness, will construct or buy roads iR some instances which do not pay for their own operation.
 While the State Commission has nothing to do with interstate rates, and can only look to the earnings of in- terstate business in deciding the req condolences of rates, the entire busi- ness of the roads in the State may have effect in induing capital to em- bark in railroad construction, and the interstate business appears, from ta- bles the commission has had prepared, purely for the information of the pub lie, to Increase the earnings of some Of the roads considerably, but not be- yond very reasonable limit The commissioners are not without a guide as to the percentage investors in railroad property are entitled to re- ceive upon their investment The Su- preme Court of the United States In the case, of the Louisville and Nash vile Railroad vs. Brown. 123 Fed. Rep. 946, decided that the roads were entitled to 8 compensatory amount equal at least to the usual and legal rate of Interest in the locality in which the road is situated No rail- road in this State shows an earning equal to the legal rate of interest on its local, or on its entire business. The three last of the above named roads show a deficit on their entire busi- ness, and most of their earnings far below eight per cent. Llabama has vast forests to be hauled away, un- told mineral wealth to be developed. furnaces, foundries. mills and towns to spring up, and increased acreage of cotton, stock. and vegetable farms to be added to its rural assets, all of which will require new railroad con struction. Is 1t not well. then, to harken to the voice of our painstak- Ing. conservative commissioners, and beware of imposing such rates as will retard and prevent railroad develop ment
 MT. Conner said in his Tuscaloosa speech, delivered December s, 1905, and widely distributed by himself, that he would suggest the Georgia classification and the Georgia freight rates for local rates. Mir. Sanders tells US in his opinion bearing date May 18th, 1905. what the Georgia clas- siflcation is. Roads in that State are classified according to their earn ings. There is a standard class, or Class A. and roads occupying a lower class are permitted to charge a per centage over the rates prescribed for Class A. There are 6229.31 miles of railroad in Georgia, of which
 5s0.73 miles. or s.3 constitute Class A.
 e7s.s5 miles. or 10.s constitute Class B.
 S44zO3 miles. or 55.S constitute Class c.
 1522.7o miles. or PAS constitute Class
 Rates in Class B are twenty per cent. higher than in A.
 Rates in Class c are twenty-five per cent. higher than in A.
 Rates In Class D are thirty.iive per cent. higher than in A"
 The application of the standard rate of Georgia to the roads in Alabama would in the estimation Of competent authorities ruin the Alabama roads. Walker D. Hines. first vice-president of the Louisville and Nashville Railroad. stated in a speech delivered before the Alabama Railroad Commission, June 18th and 17th, 1903, that the applica- tIon of the Georgia rates to those roads in Alabama which are a part Of the Louisville and Nashville system would have reduced net earnings to i.9s per cent on the cost Of the roads. leaving out of view the cost of equip ment or to i6s per cent. of the cost of road and equipment. The Louisville and Nashville, estimated by earnings per mile on domestic or enllre DuGl~ ness, is an average road. and if it's earnings would be so small under the Georgia rates what hope for the other roads not so prosperous
 The earnings of the roads being al- ready below the amount allowed by the decisions of the courts. and the dictates of business fairness, why should they be lowered at all The rates in Georgia are said to be too low. At any rate, they are not a measure for this State. for Georgia is larger a more populous. a richer, a greater manufacturing State. with a wider seaboard. and more important distributing points Alabama is group ed In railroad classification with GeQr- gia, Florida, Mississippi. and Tennes- see, and all of these States exc6pt Georgia have higher local rates than Alabama, according to our commission CTS opinion, based on accurate evil dence. The calm, impartial disinteres- | ted Judgment of the majority of the Alaabma Railroad Commission is worthy of careful consideration by the people of Alabama In this crisis of fe- verish railroad rate excitement. W. D. Vasser.