The Birmingham age-herald., 1907-09-08

islature to pass a Sunday freight train law law domesticating the foreign corporations an excess baggage bill and bills affecting freight rates." and to avail yourself of the services of legal counsel to prepare such railroad regula- ton as you believe the people of Ala bama need-"will retaliate in every pos sibe way on the railroads" Has 1t oc- cured to you that your methods are those of the highwayman-"your money or your life'-"Adopt the reduced pas senger and freight rates that are not in effect or l. as chief executive of tho state of Alabama, will destroy you" Why should the state of Alabama sandbag the Louisville and Nashville and South and North Alabama Railroad companies?
 The Louisville and Nashville Railroad company became interested in Alabama when, in 1871, 1t took over from Sam Tate and associates, with the consent and approval of the South and North Ala bama Railroad company. an uneompleted road, and undertook to complete 1t. And 1t proved to be 0 most onerous obligation. Its next venture was the leasing of the Nashville and Decatur railroad. In 1881 1t acquired the road from Montgomery 10 Mobile, and from Mobile to New Dr. leans, thus giving 1t a main line in the state of Alabama from near Elkmont to Grand Bay, a distance of about 416 miles. In 1884 1t entered upon the construction of branches, and has since that date con- structed and acquired s46 miles of main line branch roads, As these branches have been largely constructed in mineral districts the side-track mileage forms large percentage of the main line mile- age. The total cost of the Louisville and Nashville and South and North Ala bama railroads in Alabama, including proportion of equipment (based on engine and cur mileage) to Juno s0 1907, Is S46,- S99, 2s1
 In obtaining and assuming this enor- nous sum, the company has at different times been on the verge of bankruptcy. For a large part of the period of the oornpany's existence, the stockholders re- ceived no dividends on their investment the net earnings, if any, derived from whatever source, being applied to the payment of cost of additions and better ments to tho property. For forty-sx years the average dividend has been less than three per cent upon the par value of the capital stock. At great cost, large mileage of branch roads has been con struoted in mineral districts. When the mineral deposits are exhausted tho roads will be worthless; and if not abandoned, will be maintained and operated at heavy loss. This means that the capital invested III buCn TOutlB VIII DS lObt ulAASN', during the period in which the minerals are being mined, the earnings are sufri- clent to permit of sinking fund boing created to reimburse at least the cost or construction. Assuredly the Louisville and Nashville Railroad company has m the past thirty-flve years been of untold benefit to the people of Alabama, and It is entitled to their good will, co1nmenda- ton and cooperation. Only thus will It ,.il ilal it, ,,a1F ther investments to create much needed additional facilities. Unfortunately, vio- lent anta9onism in the state developed under your leadership for several years past has all but utterly destroyed the ability of the company to make any fur ther developments-its credit has been paralyzed.
 At a hearing of the Railroad Commis- sion of Alabama on April 5, 1905, at which you as president presided, after calling attention to the needs of the Louisville and Nashville and South and North Ala bama Railroad companies for large amounts of additional capital in order to create facilities for handling the rapidly increasing traffic, I said: "Now, If this commission enters upon a campaign or antagonism against the railways, if It should reduce the rates so as to make the operations still more unproftaole, 1t VIII certainty leuu u pdldlJ HSb II IL NHNP not paralyze the efforts to get additional capital, and you will almost render futile the efforts of the railways to increase the traffic and develop the business of the state and of the country. It Is known of all that what l then feared has come to pass. The Louisville and Nashville Railroad company can not now borrow additional capital to reduce grades, con struct second track, and create other fa- lad fa n transport with reasonable promptness traffic now seeking movement In and through Alabama. Long time obligations of the company can not now be disposed of, and the management having-l lear unwisely-entered into obligations to build certain extensions and make addi- tiona beterments, has been compelled to issue upon onerous terms, what are termed short time obligations; and lt must necessarily withhould the enormous expenditure involved in reducing grades and double tracking the line between Elk mont, Ala and Mobile. Ala, which it has for some time past been considering. and which the necessities of the traffic really require. Instead 1t must coniine it's operations to existing lines, and re- strict it's traffic to existing facilities. Other railway companies operating In Alabama are in the same condition. There
 
 prudently make additional capital ex- penditures and. like the Louisville and Nashville they would. If they could. gladly suspend work on extensions and Improvements now under way. AS soon as work now under way Is completed, there must be abandonment of all dd- ditons requiring new capital.
 Engaged as you are in agricultural and manufacturing enterprises, you know that there has been very heavy increase in the cost of conducting all business op- erations That this increase Is especially applicable to railroad companies Is most true; and yet they are the only ones that are prohibited from increasing the price of their product (viz: transportation to correspond to the increased cost of pro- duction. The gross receipts of the Louis Vile and Nashville Railroad company for the twelve months ending June. 1906, were s43 00s 996 co: for the twelve months end ing June 1907, S4S, ,263, ,945.O0; increase. s5.- 254 949OO. The increase in the net result after paying operating expenses. interest, taxes and dividends (the amount of div idends being the same in each year) was sl02147O0 Of the increase of B. .254, ,940 co in gross receipts, over ninety-eight per cent was absorbed by the increase in op- erating expenses, interest and taxes And vet 1t Is your purpose to still further Gg- gravate such an unfavorable result by reducing the remuneration which the rail- way companies receive for transporta- tion: by increasing taxes: and in all other ways that your ingenuity can suggest.
 You say: "The people pay in the way of taxes four and a half million dollars q year. The railroads levy upol Alabama about thirty-five millions of dol