The Birmingham age-herald., 1907-10-24
President of Louisville & NaSh- vIIt Says He VIII Fight
 To Ind
COMER URGED ID CALL
 OFF TIE EXTRA SESSION
MT. Smith Declares That the Governor Has Aroused Public clamor and Impaired Confidence, Which
 He Should Restore.

Montgomery, october 3.-(Spocial)-. That all hope of settling the differences between the state and the Louisville and Nashville are off is shown this afternoon by the issuing of letter to the public by President Milton II. Smith of the line
 mentioned in which he makes plain the
 determination of his company to fight to
 the end. He calls on Governor Conner,
 to whom the letter is addressed. to cease
 his war on the railroads, revoke the call
 for an extra session of the legislature which has for it's avowed purpose the
 punishment of the roads he represents.
 and allow the questions at issue to be set tied in that impartial tribunal to which they have been referred.
 MT. Smith reeites the history of the building of the lines of his company in the state says that $sO 100000 has been invested here on his recommendation, and l he must insist that nothing be done that will impair or destroy It's values. The money has been put in here because of the confidence in the fairness of the peo- 1 pie and the belief that nothing would be done to take 1t away without just re- turns. Influences which have been
 brought on legislation by the road have l been to prevent bad legislation and never l for gain to the officers. Need of im- | provements in the way of double track l are pointed out all of which cannot be
 made if It is established that the state
 can pass and enforce laws that are con-
 fiscatory and have the power to thus take private property without return. It is the | tl,gs. 4I,.f ha
 Is fighting, and must fight to the end.
 If it is defeated, than capital will come l in and feel safe; if not, Alabama cannot 1 expect money. to be spent in it's midst | that may be legislated away at will. Clos | ing his letter, MT. Smith says: You l have fomented a public clamor which you l you have and are directing. and by which | you have obtained preferment, but in do- l ing so you have inflicted incalculable in- l jury upon the state. 1 again appeal to | you to earnestly strive to do what you l can to quiet the apprehension and restore 1 or endeavor to restore confidence so badly 1 impaired. Permit the differences between ] the railways and you. as representing the l state to be decided by the impartial tri- l bunal which, under our form of govern 1 ment, has been created to adjust such 1 contentious
 MT. Smiths Letter.
 Montgomery, Ala, October 13, 1907. l Hon. B. B. Conner, Governor of Alabama. Dear Sr:-The importance 10 the cit- l lZens of Alabama of the contention be- 1 tween the state and corporations operat- i Ing railways between it's borders prompts ] me to make record of some of the req 1 sons earnestly urged at our interview at ! the executive office on yesterday. in an 1 effort to induce you to cease your en- | deaVors to prevent the arbitration of the l l,tt aa tril IT, | tained for that purpose. with the hope | that the views presented in this way may | be more effective than when verbally 1 expressed.
 | Relations of the Louisville and Nashville f Railroad to the Citizens of Alabama | The Louisville and Nashville Railroad 1 company first became interested in Ala l bama when 1t assumed the contract be- | tween Sam Tate and associates and the | South and North Alabama Railroad com l pany to complete the construction of the | line between Montgomery and Decatur. | which was done. and the line opened for | traffic on October l. 1872. The transac- | ton proved to he an onerous and burden 1 some one Under the then existing condi- ] tions the cost of the road was very great. | and the ensuing panic in 1873 rendered l operations unprohtable, and the result of l operations of that road has never been l sufficient to pay interest upon indebted l ness. notwithstanding the enormous in ! vestments made by the Louisville and 1 Nashville Railroad company in construct 1 ing branch roads and acquiring roads l which have, been maintained as feeders. | Nevertheless, the Louisville and Nash 1 ville as indorser of the bonds of the | South and North Alabama. owner of the 1 majority of the capital stock, has paid 1 each obligation as 1t matured, and the 1 credit of that company Is. therefore, cer-
 tainly as good as that of the Louisville l and Nashville.
 In 1871 the Louisville and Nashville 1 leased the Nashville and Decatur rail- 1 road, operating 23 miles in Alabama. l agreeing to pay dividends of per cent | per annum upon the capital stock. About 1 the time the lease was made. or shortly | before, the stock was selling as low as l 10 cents the dollar.
 | In 1880 the Louisville and Nashville pur- 1 chased from the then owners the Mobile 1 and Montgomery railroad paying a very | full price therefor, although that com | pany or it's predecessors had defaulted l and the property sold under foreclosure l and acquired by the owners of the secur- 1 tiles; i'm other words large sums in- | vested in the construction (some of which l l believe was contributed by the state | of Alabama and some by municipalities) | were lost. Yet the Louisville and Nash | vile was not benefited by this default because 1t paid a full price-probably ! equal to the original cost of construction l for the property.
 ! About the same time it also acquired 1 the New Orleans. Mobile and Texas rall- 1 road, operating 9 miles in Alabama. This | company was the successor of corpora ! tions that had defaulted and the property l acquired by lien holders. The Louisville | and Nashville, however, paid for the 1 property of the reorganized company a | full price. approximating, 1 believe, about l s45.00O per mile.
 l The railroad company was, therefore in | possession of a main line in Alabama, ex- | tending from Elkmont, on the Tennessee 1 line, to Grand Bay. on the Mississippi l line. distance of about 40 miles. We l may assume that in acquiring the line
 passing for so many miles through Ala | bama, the management was influenced by
 | the possibility of developing the mineral resources known to exist In the vicinity