The Montgomery advertiser., 1907-01-23

thing that the railroads use has in- creased in its cost In the last few years."
 President Finley told his hearers that the business in the South had in- creased far over the expectation of the Southern Railway officials. The South was developing more rapidly than any part of the common dpuntry with the possible exception of the two North western States, Oregon and Washing ton. The railroads were physically unable to meet the wonderful and un- expected increase of prosperity in the South. :
 This had brought about conditions which eau d diEcontent and com plaint. " 1t the South most needed now was Increased traffic facilities which would enable it to meet the conditions that came with prosperity a11 which we Ill allow it to put it's products into the outer orld in com petition with other markets
 No Dividends Paid.
 In speaking of the financial condi- ton of his road, President Finley said:
 Not dollars dividend has been paid on the coz non stock of the road. We have been able to pay dividends on the bonds and on the preferred stocks, but the Southern has never
 
 common stocks, out of its earnings"
 Mir. Finley spoke with some pride of the contributions the Southern had made to the upbuilding of the port of Mobile. He had himself suggested to the Mallory Line that it put it's steam CT. which was not in use, on between New York and Mobile. The road had steadily kept the welfare of the port of Mobile in it's mind, and in various ways had assisted its upbuilding.
 In conclusion Mir. Finley said that the necessities of the road were very great. and they had to be met. He sub mitted that the prosperity of the State was bound up in ths prosperity of its transportation lines, that the people of the State could not be prosperous 1T the railroads weer not prosperous.
 T ask you. gentlemen, don't put upon us this burden that is proposed in some of your bills. It is mcse than we can bear"
 He was asked by Senator Lusk:
 By what rule do you fix your rates? 2"
 By no rule at all,'' said MT. Finley, there Is no set rule. I wish there was some way in which we could fix a rate which we would know would be just to the people and adequate to the road at the same time"
 In beginning the hearing, Chairman Ovcxton said that the committee had decided to give each side two hours to pre.Snt its views in pending measures.
 Major R. E.. Steiner, acting for the railroad interests of the State. asked that Col. R. c. Thom or Washington, General Counsel of the Southern Rail way, should close the debate.
 Taylor Opens Argument.
 The discussion was opened by Rich ard V. Taylor, General Manager of the Mobile and Ohio. Mir Taylor began by alluding to his thirty years of service with the Mobile and Ohio Railroad. His road, he informed the committee, had three pieces of property which might come under the consideration of the committees: first, the sixty-oue miles from the City of Mobile to the Missis- sippi State Line; second, a little suburb an line, the Mobile and Bay Shore, run hing south of Mobile, and third, the Montgomery Division which runs f67 miles from Montgomery to the Missis- sippi line.
 MT. Taylor told of trip he took in 1894 at the request of officials of the Mobile and Ohio, overland Som the State line to Montgomery to investigate the advisability of building a road over the Alabama hills.
 q made that trip, partly by horse- back, and partly by private conveyance. I passed through wild country, an un-
 
 timber. I saw people who had never heard the whistle of a locomotive.
 q made q report in which I advis- ed the building of the road and largely because of that report, this line was constructed. l have not been surpris- ed nor have been disappointed at the result of the early years operations of that road But 1 will tell you, gen. tlemen, that since that road was built, there has never been a day or year in which that road has made a single solitary dollar. I'll tell you, gentle men, further, that if the credit of the Mobile and Ohio was withdrawn from this road, 1t would be worth no nor" than the rails if they were taken up and sold at public auction.
 Has Met Every Demand.
 This road gentlemen, has not finched from a single burden of the State. It has met every obligation, It has paid its taxes. It has helped your schools and your other institutions. We beg of you not to destroy this road.
 ''The capital that built this roaII came in from other States. It came In to develop your State, 10 help to in- crease it's productiveness and to help pay its taxes. We ask you to help us keep faith with that capital to which we have paid no returns. We ask you not to destroy this property. but let us keep it at its work of developing the State, until it can pay some returns on the capital it has brought to the State.
 The railroads, said Mir Taylor, were between two great forces. One of these was power of Legislation engaged in reducing it's rates and tho other was the demands of union labor. On the one hand, was the legal reduction of it's revenue; on the other, the demands Of trainmen and employees for higher