The Montgomery advertiser., 1907-03-27

NCO4thMuc0 HUH pHKG oMG sP
 reproduction, to rebuild would entail necessary attendant expenses even as the actual construction called for ex- penses that were not contemplated or provided for in the original building
 But the court will in some way es- timate the actual value of the road, for upon that depends the contentious of the road that they be permitted to earn fair and reasonable reurn up- on their property. The bonds and the capitalization of the road will not fig- ure fin the fixing of this value, unless 1t Is shown that the bonded indebted ness of a road Is foolishly or corruptly too large. The anti-railroads agitators In the last campaign dwelt at consid- erable extent upon the watered stock and bonded indebtedness of the com panies. They asserted that the people Of Alabama were made to pay by ex- cessive rates, dividends and interest on watered stock and an undue bonded indebtedness.
 The roads are not claiming in these suits that they should be permitted to charge rates that would earn fair and reasonable return on their capital stock and bonded indebtedness They are claiming that this fair and reason able return should be allowed on the actual value of their property, as de- termined by the court. Some of the at torneys go so far as to say that they are willing that the tax value Of the roads as fixed by the State Board Of Equalization be used as the basis For fixing rates.
 One of the strongest protests in al- legations made in the bills in the Fed eral Court Is that the Legislature has no right to say on February 9. that the rates that prevailed on January l, shall be the maximum rate and thas under no circumstances shall any rate be higher than the rate which was in effect on January 1. The bills claim that this Is retroactive legislation. in conflict with the Constitution.
 And in this same connection they as- sert that the Legislature cannot com pei them to do business at loss. They claim that if the rates which were Tn effect on January 1, caused the road to lose money, they have the right under the Constitution to raise those rates so that they can get a just and reasona bIe return from their investment
 coald Not Improve Roads.
 Of special interest to the business and commercial interests of the state of Alabama, Is the declarations in the bills, that although the facilities of the railroads of Alabama are now taxed beyond their capacity and all roads are congested. the roads would never be able to make any further improvement of facilities if the pres ent rates went into effect. It fs as- serted that the work of double track ing the roads, of increasing the en- zine and other rolling stock of the road would be paralyzed. because such work would have to be done with borrowed money and the roads could not borrow mney when they had no earnings to show.
 In the meanwhile the State of Ala bama. or rather its officials, have not shown their hands, The papers fin the suit were served on Secretary Kenne- 1 dy of the Railroad Commission and ! Attorney General Garber. who is charged with the duty of enforcing the laws which are under ire. The members of the Commission were i'm mediately notified of the suit and all met in conference yesterday.
 After the conference, the members of the Commission said they had no | statement to make in reference to the | situation. It was intimated that their | answer would be made in court. The | members of the Commission were of the opinion that five days was such short time that the attorneys who would represent the State would hard | ly have time to examine the volum- 1 inous bills and make answer to them. The members of the Commission la- l ter had an informal conference with the Governor. Neither they nor the | Governor had anything to say of the | conference. The Governor las made
 no statement since the suit was brought.