The Montgomery advertiser., 1906-10-26

nov. from S2s to sssi Instead of s11,- nov nov from Sis. .6OS to Sao. 900; instead of
 and % So1 ions ssUS hecHssary railroad purchases.
 Price sf Lsbes Increased. r-eit ..< .alf ,ycur attention to the plies to every industry, and the rail wayvy are not only exempt, but they sunef the. great disadvantage not shar- ed by others that Increased prosper mess does not brinx to them Increased prices for the on1y article they have for sale lc--transportation.
 mercbAnt. when paying higher wages nr higher prices Tor raw material, ob- tains. as a rule . higher price for his
 Not 70 wits, tho. c,.rr,er. He must, under stress of market com. -:,' ion and the inexorable decree of publis senti- ment. keep the prices for his product --transportation-at the same or at
 increased taxes have also added sub stantial burdens to the carriers. the taxes on the Southern Railway Compa- ny for example. pss mile of road having
 Coupled with these increased exren- ses. there has been a constant reduc- age contributed by transportation rates to the cost of whatever the peo- pie consume is much smaller than ever before In history. and smaller in Amer lea than in any other country of the world. And yet the loudest cry that Is heard today from the public voice, and the most persistent demand from every. quarter, is for an enforced reduc- tion In railway charges.
 Without dwelling upon this complex, and perplexing question of rates, 1t is pertinent to ask you to consider, as men, how these conditions affect the ability of~the railroad manager to meet successfully the high and in- creasing obiiEations on him to pro merce of the country. With an ln- crease in the price of everything the carrier must buy--with an increase in the aaaic G0.t of labor, labor of materials: in the taxes-and with decreasing rates, a point must ultimately be reached where the carriers capacity to meet the pub must be substantially impaired. If not destroyed. It must be apparent that If there is a continual increase in the units of expenses. with continual decrease in the units oi revenue. the financial strength of the enterprise cannot sur vive indefinitely. If the progress Is carried far enough. more increase in the carriers thus far will not sufiice, and without financial strength and credit the carrier cannot adequately meet the proper requirements of the
 Justice of the People.
 Nothing will avert the public ca!ani- ity of such conditions except the uiti- mate conseryatism and sense of justice stili aave faith. When their >atten- tion is seriously, and earnestly directed to the real problem. their conclusion Tn the establishment of just and rent and protection of corporate 2. appreciate the fac: tha: the fiighest | service arailroad manager can rem l der to the section ne undertakes to serve Is, while properly performing | credit of his company on firm and en- during basis In no other way can he | give so certain an assurance-in no | to the people of his ability to meet the demands and advance the interests Of | their expanding commerce.
 The use of this credit is chiefly in | the form or the sale Of mortgage bonds, | although there are few companies whose earnings are such that capital 1 stock ca1 be sold to raise funds for l needed improvement and equipment. To | those whose commercial success has not l attained this fortunate position there l property. -,
 There Is no farmer or manufacturer in the South who does not know the business danger of mortgage upon property. Happily the distress which ] has come to many of them in former ! years from this source fs now largely | memory only. but nevertheless a l memory, which must long be vivid, of anxiety and struggle and privation to mesf ,oss ,rs pressing obligations and avoid
 A mortgage upon a farm or a factory or a dwelling does not differ in prin- 1 cipie from a mortgage upon a railway. burden except from necessity.
 The farmer may frequently avoid 1 such necessity by foregoing the ben enits or possible profits of the en- desires to make.
 The improvements to the railway are required not solely for the profit or but are almost always rendered neces- sary by the demands of the public for proper service at the hands of It's auasi-servant. the common carrier, The owner an officer has little choice or option as 10 whether such improve ment shall be made. when the pressure for additional facilities is great as 1t now .s in the South.
 Mortgages and Improvements.
 And yet, with this irresistible pres- sure upon us. the public mind has been so warped, or the subject has been so IT who attempt to discuss it, that the is- suc of such mortgages solely for such purposes has been seriously condemn ed as a stock tobbing, stock watering process. adopted for private gain. and to extort additional interest charges from the public.
 The fact is. every dollar of the pro- ceeds of such mortgage bonds issued by the railways of the South must be spent for Improvements upon Southern property. for the necessary and better of Southern trafflc and By far the greater part going directly to pay Southern labor for permanent and immovable struc- lures upon Southern soil.
 Ought the creation of such mortgages or the sale of stock for such purposes 1t not rather merit only public approv al but public support, since it has its purpose in the require ments of the public service from which the owners of the railway prop critics cannot properly shrink?
 The underlying basis of all credit of business enterprises. Is business sue in railway operation is earning power from the transportation of passengers and freight.
 The rates obtained for the service rendered are therefore the vital con sideration upon which the ultimate success of the enterprise must depend.
 Time does not admit of a full dis of the erroneous impressions which have found lodgment in the public mind inTrespect to it, deserve especial notice. Unfortunately ttis question of rates has gotten into the very vortex of acute political agitation. It has