The Birmingham age-herald., 1907-11-03
MILTON H. SMITH MAKES TART REPLY Assertions By Governors Not
 Sustained By Facts DENY APPEAL TO COURTS Smith Says Statements of Three Ex- ecutives Show Their Animus and
 Demonstrates insincerity of
 the Allegations.
DENY APPEAL TO COURTS

President Milton II. Smith of the Louisville and Nashville railroad was in the city yesterday
 When asked for a statement about the action of the governors of Alabama, North Carolina and Georgia, at their meeting in Atlanta, he dictated the fol- lowing:
 In the press reports of the agree ment made by executives of Alabama, Georgia and North Carolina" as pub- lished in the morning papers. is given the statement for publication signed by the governors of those states. from which the following quotations are made:
 No injury has been done to any
 corporation in any of our states
 by the exercise of the power of
 regulation"
 The foregoing affirmation is not sns tained by the facts, known to every one. The power of regulation as eX- ercised in Alabama, Georgia, North Carolina and some other states. has inflicted incalculable injury upon the railway corporations and allied inter ests. and in that way unfavorably af- fected tho interests of the citizens. Regulation, when .'confined to the in hibition of rebates, unjust discrimina- tions and other manifest evils, and to the requirement of publicity of rates and other usage essential to the maintenance of order and jus tce" is commendable. but when exer- cised. as is being done in Alabama, Georgia and some other states, to su- pervise and control physical condi- tons, operations, finance and movement of traffic and arbitrarily fix the re- muneration for service rendered. Is dls- astrous; and the exercise. or attempted exercise, of these powers by states and the national govrnment Is largely, IT not altogether, responsible for the de- struction of the credit of railway com panies and consequent injury to the credit of industrial corporations. denial by parties responsible for such conditions will not deceive.
 Increased business as q conse-
 duence of reduced rates required
 by our state authorities has in
 every case, where fairly tried, com
 pensated the corporations"
 Anoth CT mere affirmation not sus- stained by any investigation or proof It is possible that few more people may travel when the rate is 2 1a cents per mile than when it is cents per mile. but this has not yet been estab- lshed by experiment. In referring tc instances where the number of persons travelling at the reduced rate has in creased they ignore the equally vel estab lishe ed fact that there has beer n corresponding increase in the num- Der of persons travelling where the rates have not been reduced. During the past two or three years there has been very marked increase in tho passenger traffic of all the roads in the country.
 We deplore the fact that rail road corporations have in some in- stances been damaged by the enorts of their officers to disregard the action of our states. This has hap
 pened in every case where they have made allegation in the courts of sensational claims of injury contrary to the facts
 Affirmation, pure and simple. How can it be known that the allegations made by the railways are contrary tc the facts until the facts have beer nresented and after due consideration decision reached by the courts? If tho honorable gentlemen feel assured tha' the allegations in the bills filed by th' railway companies are contrary to lht facts. why do they so strenuouSly ane recklessly oppose trial or the causes in the courts?
 
 cease their false cry of confiscation
 and submit to the duly constituted authorities upon which alone rests the right to determine questions or publie policy. the railroad com panies may expect q rapid return oi nnblfc confidence and a restora ton of normal credit
 The inference to be drawn from th' foregoing Is that the governors are 1T their own opinion, the "constitnted tu tborities. upon which alone rests th' right to determine questions Of pup lie policy" and although they haV' bv vituperatfon and inyective, indus tI.fously disseminated nisinformatior bv which they have gained politica Dreferlnent and are thus necessarily precluded from judically determininf the rights and wrongs of the questions at issue. they are still demanding tha with them alone rests the question O deciding what remuneration the rall roads shall receive. and upon what con ditions they shall be managed; and Il addition they have the assurance t' deny an appeal to the courts. The! "are at all times ready to hear iron inc railroad companies fully and to ac | cord to them treatment not only jus | but liberaI' and thus after haYint | for years devoted themselves to de nounc!ng railway corporations. Thei ! attempt to place the responsibility 10 | destruction of confidence upon the rep | resentatfves of the railway compdnle | is pitiful. and the error of the state ment Is apparent.
 Again:
 we regard the complete recog- milton of the right of the state to ] regulate the intrastate business or