The Montgomery advertiser., 1907-11-03
Hilton H. Smith Issues a Reply. STATE SHOULD REGULATE, BUT SHOULD NOT DESTROY Says Course Adopted in Alabama Has Inflicted Great Injury. Aska Question If Citizens of Southern stntes Would Invest Their Savings m Raifroad Property Under
 Conner Brand of
 Regulation.

In communication by President Mil- ton H. Smith. of the Louisville and Nashville Railroad Company, who gave out the letter last evening, as he was passing through Montgomery. he de- ciares that the signed statement of the Governors of Alabama, Georgia and North Carolina in conference in Allan ta. contains affirmations which are not Sustained by fact.
 Mir. Smith denies the Governors statement that mo injury has been done to any corporation in any of our States by the power of regulation" He asserts that the power of regulation as exercised in the States represented by the three Governors has inflicted incal- culab1e injury upon the railroads.
 He assents to the proposition that regulation, when confined to the inhi- bition of rebates and other unjust dis criminafions and evils is commendable, E but that as practiced in Alabama and some other. States. 1t is disastrous
 The president of the Louisville and Nashville declares that the Governors have by vitnperation and invective, h. <lusfriously disseminated misinforma- { ton by which they have gained polit- fcaI preferment"
 The full text of NIT. Smiths letter is copied here:
 Birmingham, Ala, Nov. ?. 1907
 ssIn the press reports of the Agree xnant 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 mada:
 4 No injury has been done to any corporation in any of our States by the exercise of the power of regula- xf0nss
 .The foregoing affirmation Is not sus- enined by the facts. known to every one The power of regulation as exer- cised in Alabama Georgia, North Caro- lima and some other States, has infiict- cd incalculable injury upon the rail- way corporations and allied interests and an that way unfavorably affected the interests of the citizens.
 sReguIation, when confined to the inhibition of rebates, unjust discrimin- akaons and other manifest evils. and to fhe requirement. of publicity of rates and other usages essential to the maintenance of order and jus tice.s is commendable. but when ever cssed, as Is being done in Alabama. Georgia. and some other States, to su- nerviBe and control physical conditions, onerations, finance and movement of < xfafIic and arbitrarily fix the remuner- atfon for service rendered, Is disas- trous; and the exercise, or attempted exercise. of these powers by States and the National Government is large x ly, if not altogether. responsible for the destruction of the credit of railway companies and consequent injury to the credit of industrial corporations. A denial by parties responsible for such conditions will not deceive.
 @AnOther Mere Affirmation"
 Increased business as a conse- ouence of reduced rates required by our State authorities has in every case, where fairly tried, compensated the corporations.
 -Another mere affirmation, not sus- tained by any investigation or proof. It is possible that few more people may travel when the rate is 1-2 cents per mile than when 1t is cents per mile. but this has not yet been estab- lished by experiment.
 .sIn referring to instances where the number of persons travelling at the reduced rate has increased, they ignore the equally we'll established fact that there has been a corresponding in- crease in the number of persons tray ding where the rates have not been reduced During the past two or three years there has been a very marked in- crease In the passenger traffic of all the roads in the country.
 "FWe deplore the fact that railroad corporations have in some instances deen damaged by the efforts of their officers to disregard the action of our States. This has happened in very case where they have made allegation in the courts of sensational claims of injury contrary to the facts