The Montgomery advertiser., 1907-03-26

It was further contended that the re- auctions would lower the ratio or pro- property devoted to intra-state busi- ness.
 Tn section nine the complaint de- clares that 1t has steadily improved it's facilities for transacting the busi- ness of the road In the building of additional tracks. in double tracking, in building switches, new depots and in increasing the number of engines and cars.
 Notwithstanding all the improve ments that had been made they were unable to increase its facilities suffi- ciently to keep up with it's growing business. especially in the State of Alabama. Business was badly congest- ed and there could be no improvement in the congestion if the rates went into effect which would prevent the road from making any further im- provement.
 Cannot Borrow Money.
 strong point in this connection is made in the following section, sec- ton ten. It Is here averred that the Louisville and Nashville does not have sufficient money to make the needed improvement in double tracks, in switching and depot facilities and in the increasing of the engines and cars. To make such improvements 1t would be necessary to borrow. The complainant asserts that if its rates are so reduced that it cannot earn anything on its property, it certainly can not borrow money to increase it's facilities.
 The same idea Is emphasized in sec ton eleven of the complaint. which points out that the legal rate of in- terest in Alabama is eight per cent and that on the best security short time loans can be had at six per cent and above. It Is further stated that the average net earnings of factories. mills furnaces and other industrial enter prises is eight per cent and higher.
 As for railroading few businesses were so hazardous, few had so many risks to run, few depended upon so many complex conditions. Few per- sons would care to invest their money and have It's earnings depend upon so hazardous a business. The complain ant claims that because of the hazar- doHs nature of the railroading business 1t should be at least entitled to make eight per cent Yet on its intra-s state business, 1t has never made as much as eight per cent.
 argues that never again would 1t be able to earn as much as it earned in 1906. because higher wages were de- manded by its employees and paid them, than were paid in 1906 and that the price of material of all kinds as well db ol eQulpHSuL ndu bISdlfy aQNdncSO. The road would not therefore be able to earn as much as 1t earned in 1906 without an increase of rates.
 Section 13 of the complaint deals ex- clusively with the two and a half cent passenger tariff bill. The com plainant contends that this lnterferes with interstate business and Is there- fore Illegal.
 In the argument to show that the fnf Sxyfs In tetrstate business. the point is made that a passenger could buy a ticket from a point in Alabama to a point In a State where a higher rate pre- vails, or he could if he chose buy a ticket to the station nearest the Ala bama line and there take another train on another ticket for his des- tination.
 It would, moreover, handicap the road which sought to meet the com petition of a road which had a shorter line between two given points. The first road has in the past cut its rate to meet the competition Of the short CT line. but to meet that competition in the future, 1t would be necessary for the road to cut it's rate far below two and a half cents mile in many instances. It was asserted in this section that the bill would effect a total of seventy per cent. of the fn- terstate passenger business of the State in that 1t would reduce the in- come from interstate passenger busi- ness by s4s.os0.11.
 Anects Interstate Business
 In Section IS the maximum freight rate law was printed in full. the com plainant merely stating at the end that the articles named in the bills were articles commonly carried by the Louisville and Nashville.
 Section Is applied the same argu- ments against the continuance of the maximum freight rate bill as 1t ap- piled against the two and half cent passenger rate act The contention was strongly advanced that it's effect would be a decided interference with interstate business. In Section 16 this argument is emphasized in the quotation of figures to show the effect in losses from interstate business the road would suffer from its 1906 fig- ures.
 Section IT embodies one of the most important contentious of the com- plaint It relates to the special low rates which were granted in the min eral districts for the upbuilding of infant industries and for the general development of the State The com plainant declares that many of these infant industries have grown to pros- perity and that there is now no lon- ger any need of the low rate which the road voluntarily put into effect. It is claimed that the Legislature has not the right to compel the road to haul traffic at continual financial loss. Such an act would be arbitra- ry,' unjust and unfair. These rates were in effect on January l, 1907, and previous to February g. when the maximum act was approved. 1t is contended that the Legislature has no right to compel those rates, on which the road lost money, to remain in eff feet.
 It is declared in Section 20 of the bill if this general system of railroad laws, which the Commission Is charged with the duty of enforcing, had been in effect in 1906 the net earnings of all Intra- State business would have been $14s.o45,93. The proportion of the fair values of the Louisville and Nash vile devoted to intra-S State business was S16,405, ,530, and the percentage of net earnings was only 9 .6S The fixed charge properly chargeable against the intra- State business was $442.S52 S2, so that the fixed charges would have ex- ceeded the earnings by $292,906 29.
 It is then set forth that the increased cost of formally complying with the law, the printing and filing with the Railroad Commission all tariff sched- ules and freight tariffs. together with necessary clerical increase would amount to $32, ,00O. Thus the necessary expenses with the fixed charges would have exceeded the net earnings by S324 eO6 29 The effect of this act was