The Montgomery advertiser., 1907-11-11

estfng to note that during the twelve months ending June, 1907, the I,ouis- Vile and Nashville and South and North Alabama Railroads moved for the Tennessee Coal. Iron and Railroad Company in the Birmingham district eS,o12 car loads containing 2,2ss, ,2s9 tons. Tor which they received approxi- mateiy II cents per ton of 1000 pounds ''Mr. Nesbitt asserts that the claim
 that the rates fixed by the statutes are conhscatory. is fallaciolis; and to prove his statement he refers to the gross and net earnings, or the result of op- erations, including revenues from in- vestments etc. of the entire system during the fiscal year ending June
 1907. He does not seem to be aware that the State of Alabama may not and, may add. should not---require the Louisville and Nashville Railroad Company to transport property and persons between points within the State at loss because 1t may be op-
 erating at profit in smother State or be transporting interstate trafic at a profit His attention is respectfully called to the following extract from the syllabus of the decision of the IJnf- ted States Supreme Court in the case or Smyth vs. Ames. or what is known ass the Nebraska Freight Rate case: The reasonableness or unreason- VI lotcS pEcStEIDeQ DIV al State
 Tor the transportation of persons and property wholly within its limits must be determined without reference to inc interstate business done by the car. Tier or to the profits derived from that business. The State cannot justify un- reasonably low rates for domestic transportation considered alone unon the ground that the carrier is earning large profits On its interstate business over which. so far as the rates are concerned. the State has no control
 NOT can the carrier justify unrea son. aoiy nigh rates on domestic business upon the ground that it will be abJe s9a n'y m tnat way to meet the losses on
 However, if Mir Nesbitt and b;s as. sociates including the Governor representing the state are assured that the claim of the Louisville and Nash vile Railroad Company, that the rates iixed by statutes are confiscatory. ifs iailacious. why do they not energetical- " proceed to prosecute the litieation now pending in the United States Cir. cult Court. to conclusion? If the statement of the Associate Cornn1is- siener is correct. the decision must necessarily be in favor of the state.
 MT. Nesbitt says: While the fun figures for 19o6-7 have not been anaiyzed. it is true that both the sross lnEOme increased over the same figures for 1905-6.''~ In letter to Hon. B. B. Conner. Governor. dated August 2s. 1907, | said.
 The gross receipts of the Louis vile and Nashville Railroad Company for the twelve months ending June 1907 were s43,00S, ,996; for. the twelve months ending June 1907, s4s,26s.945; inarease 3s.a54s4s, The increase in the net result, after paying operating expenses. interest. taxes and dividends (the amount of dividends being the same in each year1 was $102.147. Of the net Increase of $5,254.949. in the gross receipts. over ninety eight per cent was absorbed by the increase in operating expenses. .in. terest and taxes. And Yet 1t is your purpose to still Further aggravate an unfavorable result by reducing the re- munera ton which the railway com panies receive for transportation by in- creasing taxes, and in all other ways that your ingenuity can suggest"
 T have recently received a state ment showing the results of operations for the three months July. August and September, 1907. It showed an in- crease in gross earnings of $1,252,- 7ss.1s. and a decrease Tn net earnings of $223,50s.12.
 Again I quote from Mir Nesbitt's statement While it is true that about seventy-six per cent of the tom mage furnished by this state is low revenue producing. 1t Is also true that this tonnage costs vastly less than the