The Birmingham age-herald., 1907-09-25
President Finley Speaks of Rail-
 road RetreRChment
BUSINESS REASONS ONIY
Southern's President Says That It Is Hard to Borrow Money Now to
 Complete Improvements,
 Hence Forces Reduced.

Washington, September 24-(Speeial.)- In an interview today President Finley of the Southern Railway declares that the abatement of the roads activity in making improvements is not done in d spirit of retaliation on account of rail road legislation In several of the southern states. On the contrary the Southern s president says Il has been necessary to postpone many important improvements owing to the present financial situation and the attitude of investors toward rsa- road securities He points out that forces have been reduced and expenses curtailed as much in the state where there has been no unfavorable legisla- ton as in the others. In discussing the subject, MT Finley said:
 The urgent need of increased and inn proved transportation facilities in the southern states Is thoroughly appreciated by the management of the Southern Rail way company. It shall continue to be the policy of the company in the future as 1t has been in the past to provide improved facilities as rapidly as its re- sources will permit.
 In some quarters 1t has been represented that york has ben stopped and forces reduced as a measure Ol ItAdBdAhoh against adverse state Legislation. In no case has this been true. This company has not been governed in any case by any but sound business considerations, such as must govern a railway as well as every other business enterprise. Current railway Income is insufficient to pro- vide funds necessary for extensive lm- provements and betterments. These can only be provided now as in the past by obtaining new capital
 Present financial conditions and the present attitude of investors toward rail- way securities are such that it Is impos- sible for the moment to sell railway securities on d basis that any business concern. managed in acordance with sound business principles. would be Jus flied ir accepting. It has, therefore, been necessary to postpone many important projects for improvements. Only those l will be ushed to completion at the time or which work has progressed so far that the public and the railway can re- celve the benefit of their completion at an early date. Other projects have not been abandoned, but will bee arried out just as soon as conditions are such that the necessary capital can be secured.
 "The reductions in shop forces and re- ductions in the expense of administration wherever it has been proper to make them have in every instance been made in conformity with sound business prin- ciplcs. During the past nine months the shops of the company have been running with frll forces, and substantial progress has been made in repairing the equipment of the company and putting it in condi- ton for the heavier traffic of the fall and winter. This has been done at great expense as result of increases In wages and the prices Of materials used in the shope. and the shop rolls In the az gregate after this reduction, are now in excess of what they were at this time last year
 Prudent business policy has dictated a reduction In shop expenses so far as it could be made without permitting the equipment of the company to deterlorate. In no case has a reduction been made in a spirit of retaliation. but forces have been reduced and expenses curtailed in the same ratio in those states in which these has been no adverse legislative action as in others w. s.