The Montgomery advertiser., 1907-03-26

 decision of the court . license is held to be . contract that may not be vio- lated without an agreement between the parties
 The bills praying for the injunctions especially attack the maximum freight nili.' the 2l-2 cent passenger fare bill, the bill regulating railroads. the bill governing the Railroad Commission and the schedule and classification bill, known In its passage as Senate bill IS.
 In the petition for the injunction Charles Henderson of Troy, John c. Harris of Montgomery and William D. Nesbit of Birmingham, members of the Alabama Railroad Commission. and Alex M. Garber. Attorney General, are made defendants. The complainant in each bill differs, but each Is a railroad doing business in Alabama
 Review of the Petition.
 Taking the Louisville and Nashville petition as an example of the inaugur- ation, the nature of the contentious, involved as they are in complicated le- gal verbiags, may be studied out and It's meaning ascertained in detail. Sec tfon l enumerates the State officials who are made defendants in the peti- ton Section 2 defines the nature of the bill, a petition to assure to the railroad corporations doing business in Alabama their constitutional rights and to forbid the enforcement of iegisla- tive acts, the operation of which would be confiscatory.
 Section 8 describes the Louisville and Nashville Railroad Company. a corpor- ation organized under the laws of Ken lucky. and operating 4,306.62 miles of ,ailroad. Section presents the vari- ous amendments to the charter of the road granted by the Legislature of Kentucky, and 1t sets forth in detail the compliance with every law and regulation demanded by the State of Alabama from railroad doing busi- ness in the State. Then follows a list of all lines and branch lines operated by the road in the State of Alabama
 The petition takes the fiscal year which ended June 30. 1906. as the basis or all annual comparisons, as 1t was contended that year was the most prosperous the road ever had. Section 5 calls attention to Exhibit "A" of the petition. which is a comprehensive financial statement of the operation of the company for that year, covering both passenger and freight business and both inter and intra-state busi- ness It is further alleged that in that particular year the road had charged s-cent passenger rate and a fair, just and equitable freight rate, which" the petition says, far from being pro- hibitive of the free movement of pas- sengers, freight and other traffic, en- couraged travel and transportation and increased the production, population and commerce of the territory contrib utory to lines of said complainant in Alabama"
 Net Making Money Under old Rate.
 It Is further contended in this section that although the year of 1906 was the most prosperous in the history of the road. the road nevertheless did not re- ceive 6 fair, just and reasonable return on the amount of its property 1t had devoted to interstate business in Ala bama. In that year the gross earn. ings from the interstate business in Alabama were $3,5Ss.0SS. .22. The cost of operation for the interstate busi- ness was s3.176,6s2.74 From other sources creditable to interstate busi- ness. the cost was increased by $2s,- S45.55, making the total net earnings $440,350.s3. The value of the property devoted to this business was $16,405,- 530. The net earnings on the inter- state traffic was therefore 2.6S per cent. Before dividends could be paid. there was to be deducted from that amount certain fixed charges. the in- terest on the bonded debt, interest on the sinking fund, rents for the leases and reserves for doubtful accounts.
 Before any income could be deduct ed the fixed charge amounted to $943,- 443.16.
 The pGLlClOn AIle&eS IurJuer that the roads intra-state business estimated upon its proportion of gross earnings of the entire gross earnings in the State constituted 46. .94 per cent of the entire business done In the State of Alabama; that therefore the proportion of the fixed charges which should have been fairly and reasonably borne by such inter state business was $442.- S52.22, so that the roads entire net earnings were less than the fair pro- portion of fixed charges assigned to the intra-state business in the State of Alabama by s2.501.2s.
 The petition ayers further that the cost of earning $1o0 by transporting local passengers and freight is fifteen times greater than through or inter state traffic. The petition explains and demonstrates this by pointing to the frequent stoppage of trains. the longer hours the employees have to be the train which may start from one point empty and pick up its cars along the road or the train which starts from one point full and leaves its cars at station after station.
 In either case the expense is for a whole train for the entire distance. while the pay Is for only half train
 Would Be No Increase in Business.
 In section eight 1t is contended that the Louisville and Nashville has been ably, skillfully and intelligently man. aged and that its net earnings were as large as they could possibly be- The rates charged were reasonable and as high as they could be under the laws of the State and with the compe- tition that the road was forced to meet.
 It was asserted that the proposed reduction In rates and traffic would not materially increase the traffic on passengers and freight. On the other hand, under the acts of the Legislature the rates would be less than the road