The Montgomery advertiser., 1907-09-03

crease in cost of fuel, $23s,1646s; in- | crease in cost of repairss SZOS,1lV'Al. Presidents Report.
 In substituting his annual report 10 the stockholders, President Hanson says in part; .
 eratIon of the property have not been as satisfactory as in recent years This Is due to a large increase n wages and in the cost of nearly every class of material necessary 10 the op- eration of the property. In addition 70 this, owing largely to inferior coaA and for a time. to inadequate motive nower.s there was a congestion at all the important points upon the system which made the cost of oeration much higher than would have been the case under normal conditions, After the new eouipment contracted for during the previous fiscal year was receNed' these conditions greatly improved ana re- suits were correspondingly better III addition to conditions described In our own territory, the general congestioh on th elines of our connections, hich was beyoud our control, made the sit- nation more difficult and expenslVe' Insufficient terminal facilities nave ih- terfered seriously with the handing or traffic and during the past year we have made large expenditures In in- creasing these facilities, and for sever al years to come additional expendl- lures for the same purpose will be nec- essary In order to handle the busi- ness of the company efficiently an1 eco nomically.
 During the year there were estab- lished on or adjacent to the lines or thfs company 2O5 industries, represent ing twenty-six classes, with capital of s4,465, 800, and employing 5'SS4 hands. 7S2,s65 fruit trees were plant ed on our line during the year, put there was a decrease of trees in bearing of s44.123
 Equipment Doubled.
 "The equipment of the company has been doubled in about six years. Dur ing this time we have increa-ed our shop facilities very little. Unless equipment Is kept in repair We cannot use it. and to meet our requirements Tn this resect we have acquired the nec- essary land at Macon and have com menced to build the main machine stops for the system at this point. Contracts have been placed for the car shop machinery, power house. motive power and smokestack. and we expect to have this part of the lant ready for operation early in 1908. We expect to proceed with the erection Of the roundhouse and mochine shops, the lat- ter to be supplied with modern tools' roVided we are not StopPSu Oy tHS want of money.
 we have expended $4s,246.S5 in ex- tending our car shops at Savannah. and $79,555,7S for new tools and machin- cry. .,.
 ''An of the capital reserves of the company were exhausted in providing betterments during the year. except s1 300, 900 of 5 per cent consolidated mortgage bonds of the company and aside from at the time of the reorga--- l ization for betterments. It will be nec- essary to sell all of these bonds durink the fiscal year commencing July l. a-711e amount realized from these bonds will faI short of our requirements for facilities that are indispensable
 The Supreme Court of the United States rendered decision in May last under which the railway companies in | this territory will be compelled to re- | fund cents ger hundred upon the lum- Der moved from and over their lines to Ohio river points during the past l four years This Is final Judgment
 with respect to this question. and as | our traffic department estimates that | it will require $150.O00 to pay this com any's proportional a reserve Of that l amount has been created and charged 1 against earnings for the fisca year.