The Birmingham age-herald., 1907-10-24

on many occasions affirmed, reaffirmed and reiterated, that the state of Alabama has been liberal to the railroads-has acted eonservatively-whic statement IS
 not controverted. Had the drastice and confiscatory bills prepared and promoted | by the late Capt. W. l.. Bragg, and ln- 1 troduced simultaneously in both houses of the legislature of Alabama that con- vened on November Il, 1884, been enacted | and inforced, can any one believe that not controverted. Had the drastic and | enormous investments by the Louisville and Nashville Railroad company? And 1 can any one believe that, had l so ad- | vised, my advice would have been fol- | lowed? As stated to you, who is en- titled to the credit for the conservatism 1 or the fairness which the state of Ala 1 bama has until recently accorded and | encouraged investment in railways and | other industries? You, and many others I am sure, know that it is due to what | you term the dominating influence of the | Louisville and Nashville Railroad com l pany over legislation affecting railways; | that this influence has been persistently | (and until recently successfully exerted l in a legitimate manner to prevent the | enactment of unjust and injurious legs- 1 lation-legislation tending to prevent the 1 investment of capital in the construction | of railways and allied industries. The citizens of Alabama have, therefore, re- | ceived in addition to the large invest ments made the benefit of the influence l which the management has, with the CO., l operation of the other railways and 1n- | dustrial interests, exerted in preventing | the enactment and inforcement of sulcl- l dal laws. Bear in mind that any infiu- ence which may have been exercised by | the Louisville and Nashville or other l railway companies to prevent the enact ment dx unjust Legislation affecting their 1 interests. has not been so exercised to | secure the preferment of any one in any | way connected with the arrangements. The officers and employees of railways are
 not office seeking people. Their duties are such that they cannot be efficiently performed by those seeking political | preferment.
 Management of Other Important Rail- ways in Alabama Apparently Wiser Than That of the Louisville and Nash vile When Viewed from Existing Condi- tions.
 Contrast the policy of the Louisville and Nashville with that of other corporations: What is now the Alabama Great South
 crn railroad, extending from Chattanooga
 to Meridian, and running about 240 miles diagonally across the state of Alabama, was constructed under great difficulties the financial result being disastrous to the promoters-a large portion of the capital lost. Unable to meet its obligations, fore closure proceedings were instituted and the property acquired by bondholders who were citizens of other countries. con- trol passing to Baron Erlanger, a wealthy
 banker of Paris, and his associates. MT. Charles Schiff, one of the associates and joint owners, came to this country to look after large investments in the Alabama
 Great Southern and other railways, and
 in time created what was known as the
 would have advised, much less urged, the
 Schiff stated, Smith may build the
 branches and develop the industries; l will, instead, invest the capital in en-
 zines and cars to move the product
 The result is that today the Alabama
 Great Southern, not having any branch
 roads, is in a position where the drastic { legislation of the state of Alabama can
 not very seriously affect it, because it's
 revenue derived from intrastate traffic Is
 8 much less proportion of the total than
 is that of the Louisville and Nashville.
 From an investors standpoint, the fore
 sight of MT. Charles Schiff is to be com-
 mended. How is it when viewed from
 the standpoint of the material interests
 of the citizens of Alabama?
 The Southern railway is operating a
 very large mileage within the state. al-
 most all of which has been acquired
 
 had acquired the property by such pro-
 ceedings, large amount of capital in-
 vested having been lost. The only ex-
 ception, I believe. is the construction of
 one short branch extending from near
 Ensley to the Warrior river, a distance
 of perhaps 20 miles, of so little importance
 that the time tables do not seem to be in-
 serted in the Railway Guide indicating
 that no regular passenger train service IS
 hat
 the Southern railway may be in a posi-
 ton where it's revenues may not be so seriously affected by the reduction which would result from enforcing the rates fixed by the legislature. The Louisville and Nashville. having constructed branch
 roads into the mining and agricultural districts, must furnish facilities for the transportation of passengers, even where the operation of such trains is unprofit- able, or where the earnings do not jus tify. I have before me statement of the earnings of trains on such branch roads for the year ending June, 1907. which shows that we are operating many trains in Alabama. the earnings of which are but little more than the wages of the crews.
 Large Additional Investments Contem- plated by the Management of the Louis vile and Nashville Railroad Company. Large additional expenditures have been under consideration by the management for several years. such expenditures being
 seemingly required by the rapid increase in traffic and seemingly justified by prospective results. The increase and
 prospective increase in traffic renders
 necessary the reduction of grades and construction of second track from Elk mont, on the Tennessee line, to Mobile For some time past considerable sums | have been expended in making surveys, and the work of reducing grades and completing second track from Caera to Black Creek junction, distance of about fl miles. has been entered upon and will be completed during the next four or five | months. the total expenditure being about | 5000, GOO. Surveys are also being made
 with view of ascertaining the feasibility 1 of constructing shorter line between the | coal fields and the gulf. Plans and esti-
 mates have also been prepared for con- | structing commodious shops at Boyles, in volving a large expenditure. Under exist | ing conditions, all expenditures on capital | account have ceased except those for | which the money has already been pro- | vided. This in Alabama Is limited to the | completion of reduction of grade and sec | ond track between Hardy and Graces. No l further expenditures on capital account | can be undertaken until the credit of the | company is restored, or until it can ob- ! tain the money on it's longtime obliga- l tons upon reasonable terms.
 Attitude of the executive and legislature
 serious menace to the prosperity of the | state
 At our interview yesterday, I earn
 estly urged you to cease your war upon capital invested in private property de- voted to public use--i e., railways: that