The Montgomery advertiser., 1907-10-24

a very large mileage within the State. almost all of which has been acquired through foreclosure or from those who had acquired the property by such pro ceedings, large amount of capital in vested having been lost. The only ex- ception. I believe. is the construction of one short branch extending from near Ensley to the Warrior River, a distance of pSrhaps twenty miles, of so little importance that the time ta- bles do not seem to be inserted in the railway guide. indicating that no reg ular passenger train service is oper- ated.
 .It would seem. therefore, that the Southern Railway may be n a posi- ton where it's revenues may not be so seriously affected by the reduction which would result from enforcing the rates fixed by the Legislature. The structed branch roads into the mining and agricultural districts, must furnish facilities for the transportation of pas sengers. even where, the operation Of
 Such trains is unproftable, or where the earnings do not justify. I have before me q statement of the earnings of trains on such branch roads for the year ending June, 1907, which shows that we are operating many trains in Alabama the earnings of which are but little more than the wages of the crews.
 More rnvesfments Contemplated. Large additional expenditures have been under consideration by the man agemeDA for several years, such expen- ditures being seemingly required by the
 rapid increase in traffic, and seemingly Justified by prospective results. The in crease and prospective increase in traf- fic renders necessary the reduction of grades and construction of second track from Eilxmont on the Tennessee line to Mobile.
 "For some time past considerable
 sums have been expended in making
 surveys. and the work of reducing grades and completing the second
 track from Calera to Black Creek
 Junction, distance of about forty-one
 miles, has been entered upon and will be completed during the next four or five months, the total expenditure be- ing about $3,000,000. Surveys are also being made with a view of ascertain ing the feasibility of constructing Q shorter line between the coal fields and the Gulf. Plans and estimates have alse been made for constructing eommoasous shops at BoyIes, involving a large expenditure.
 ''Uhder existing conditions, all ex- pendituras on capital account have ceased except those for which the money ha already been provided. This in Alabama is limited to the completion of reduction of grade and second track betsfeen Hardy and Graces. No fur- + sther expenditures on capital account can be undertaken until the credit of the company is restored. or until 1t can obtain the money on it's longtime obli- gations upon reasonable terms.
 Attitude of the Executive.
 At our interview yesterday, I earn estly urged you to cease your war upon capital invested in private property de- l voted to public, use--i. e., railways; 1 that undoubtedly the State should reg nlate the railways in a proper manner, 1 but that such regulation should be confined to the inhibition of rebates, unjust determinations and other mani | fest evils, and to the of | publicity of rates and other usages generally recognized as being essential | to the maintenancesof order and justice ---in a word, regulations compatible | with the ends of commercial liberty | but that such regulations should not ! be extended to the supervision and | control of the physical condftions of ! railroads supervision and control or l railroad finance, supervision and con- l trol of the traffic of railroads, and the | absolute control of rates.
 | Ana l. AQpD1l6Q IO yOut dS LII O&RC- | rienced and successful business man, i to frankly admit the fact which must l be apparent to you, that If 1t once be I estab lished that the State of Alabama I has the power to enact and enforce
 rates and other regulations of, con
 4 fiscatory oh haracter-in other words. to | arbitrarily fix tho remuneration which | the owners of the property may re- ] ceive---and the equity of such arbitrary | enactments could not be submitted to I the decision of an impartial tribunal, I no one could be found to invest capi- | tai under such conditions; and l made | the assertion that you, individually, I would not today invest a dollar in the | construction of new railroads in Ala | bama, and I doubted if any other we'll | to-do citizen of the state would do so
 unless he was to be indirectly benefited, by the creation of facilities which
 would be a convenience or advantage
 to him--he would not invest for the
 sole purpose of receiving reasonable l return upon the Investment.
 A ReasonabIe Return.
 1 "Bear in mind that the contention of | the railways under existing laws is | reduced to aslSing-begging-to be | permitted to earn only reasonable re- l turn that Investments in railways un- l der such conditions are different from | your personal Investments in cotton l mills, on which you may hope to re- | ceive not only reasonable return '