The Montgomery advertiser., 1907-11-11


 yiIle and Nashville R. K. Co.'
 Louisville, Ky.
 Dear Sir--I have read your letter ol October 2s with interest and agree with you that drastic legislauon py the Alabama Legislature at this tune ID calculated to do great injury 70 ,ne business interests of the State or Ala bama, and more particularly to tnis district.
 The company with which l am con nected has shipped to the general mar kets in the South. for several years about one and three-quarters million tons of coal per annum. IRis ton mage is equal to something more .nan half the tonnage of the entire cotton crop of the country, and the coal is sold and delivered in eight States
 Rates that enable us to compete with the mines in Kentucky, East Tennessee Virginia, as we'll as the output of Pitts burg which comes down the Mississip- pi River, and that of West Virsinls and old Virginia district which comes down the Atlantic Coast out Of NOT folk, Va. are so carefully adjusted thaf for the several years that l have per- sonally seen to the marketing Of our product, have not asked the railroad people for a reduction in the rate or freight to single point. On the con trary the present rates would admit 
 keted in excess of that now being pro- duced in Alabama. In other words, if we could produce the coal, and the rail- ways were in position to handle It, we could enlarge our market very greatly by pushing back the coal from the North and West in the sections where we now meet them.
 As a particular mark of the friend- iy feeling which the Louisville and Nashville Railroad has always shown to the Alabama coal field. l would call your attention to the statement l have heard made, that had it not been for you the rate to the City of New Or- leans would have been put. three years ago, to a point that would have virtual- ly prohibited the shipments of Ala bama coal to that market. and thus deprived the mines of Alabama of a market for 1000 tons daily. or 6O0,Ooo toms per annum I have been told that you informed the man who suggested st to you. that this advance in the rate of freight would shut down, or seriously injure, the mines along the line of the Louisville and Nashville road in Alabama, and that you would, under no conditions. agree to the ad- vance suggested <,
 I am unable, at this time, to recall a single instance where a serious conn piaint has been made by our custom CTS as 10 the FAtc tO1 AIciShh' Oh eAAS contrary this is, as a rule, not dis- cussed, and the thing that the people I have met In business way have complained about. and in most cases 5ustly. was the slow deliveries made by the carriers. and the shortage or equipment, which, on some roads. has been very serious.
 I have been in close daily contact with the troubles incident to railroad Transportation for some years, and af- ter careful, and. think, impartial study of conditions. I have come to the conclusion that practically all or the shortcomings of the Southern trans portation lines are to be charged to two causes. Lack of funds Is the 1rgncipal one. lack of time is the other. The business of the South, and of the whole country. increased at such a rapid rate during the past SIX or seven years that the locomotive ana car shops were unable to keep up Witn the requirements for new cars and en- xines, and labor could not be had n sufficient quantity for extensions ana improvements.
 Al the beginning of the period or nrnznaritv. some of the Southern roads did not have the additional capital re- 1uired to add to their equipment as fast as their necessities demanded it. My observation is that the railroad IS
 
 when 1t is graded rails laid and oper- ation commenced.
 have read that the oldest and bes: roads of the country. Pennsylvania and New York Central have spent for many years more money yearly m dou- bIe tracking. reduction or grades ana crrvatures than it cost to build their main lines originally. Railroad men who are in a position to know have told me that all the main lines Tn the Birmingham district move a tom mage daily over their rails that is in excess of the proper capacity Of single track road. am sure that this is true and that if we get any greater tonnage of coal. coke pig iron pipe. rails or other productions of the BirYningham district moved by the rail- roads. they will have to provide them- selves with double tracks on which to move it. This will take many millions of dollars and cannot be built Tn hal1 a century If it has to be paid out Of the surplus earnings of the roads. The only other way it can be done Is for he railroads to provide themselves with funds to do this work from the sale of their securities. They cannot. or course, sell their securities to the in- vestine public unless they are able to show their ability to earn in terest on ther bonded indebtedness, and a reasonable dividend above fixed char geg All of the main lines of the prin- cipal roads of Alabama were built hur- riedIy and by men whose capital was limited and for that reason tht dou- ble tracking of our roads Is very much greater undertaking than Is thought by most people. The roads are full of heavy grades and curves. In order to move tonnage economically it is absolutely necessary to cut out the hills and straighten the curves This means a new roadbes and in most cases a new right or way. In fact 1t Is not double tracking the railroads but in most cases building new dou- ble track line. If this Is not done speedily Birmingham and the mineral districts of Alabama will be brought to a standstill in so far as increased production is concerned.
 The agitation of the rate question and the legislation which it has brought about could not have come at more inopportune time than at the present As 1t seems to me it is absolutely necessary that the earning capacity of the railroads be shown not only to be sufficient to take care of their pres- ent obligations. inciudtEg reasonable dividend on their stock but they should be able to show to the public who have money to invest permanently that they can, with more money, in. crease their track facilities to earn a still greater sum which would be suf. fcient to pay interest and charges on additional amount required. I firmly believe that if this question: was put fairly and squarely before the people of Alabama they would cheerfully pay tba ratas thev have na i'd heretofore nd