The Montgomery advertiser., 1907-01-20
PRESIDENT rINLrr,s AppRrss.

The recent address of President Fin
 ley of the Southern Railway. to tht
 public and patrons served by that road
 Is worthy of careful study and consci'
 entious consideration on the part oi
 every thoushtful citizen.
 Mfr. Finley in the frankest manner
 admits the present inadeauacy of the
 service. and in am equally frank man.
 ner gives the reasons which he con-
 tends accounts for this inadequacy. It
 is to the credit of the South that her
 industrial development has far exceed
 ed the expectations. not only of the
 railroads, but of her leading men of
 affafrs. President Finley shows that since. 1895 there has been an increase
 in the ton mileage including the in-
 creased mileage, of 13s per cent. and
 on the same basis an increase of 80 per
 cem. in the number of passengers
 transported one mile. It is also shown
 that the cash value of the cotton crop has doubled in lthe past fifteen years, and that more cotton Is manufactured in the South than in the mills Of New England, and that the total value of her agricultural products is over sev- enteen hundred millions of dollars per annum. President Finley. alsoI shows the great difficu1ty the railroads have labored under in respect to labor, and the great increase in the cost of labor, of bridge timber, cross ties and steel rails, as we'll as all other material
 orA maintenance of the railroads. It is also /pointed out with great force that the taxes have increased, since 1895, s3. fl per cent, per mile, and that there has been a growing tendency, all the while on the part of the States to, add to the burden of the railroads in the way of inereased taxes, excessive ver- diets. on the part of juries, and to de- crease the revenue of the railroads by reducing transportation charges for freight and passenger service. It is also shown with much force that the imposition of penalties will not build railroad tracks, supply equipment, or enlarge and simplify terminals.
 Tn his conclusion Mir. Finley says that with. these greatly, increased ex- penseS for material. for labor, for taxes, for penalties and for damage. claims and with the just demands of the pub lie for better facilities and greater safety of operation. it must be appar- snt that reduction of revenue must conflict with the public interest in these larger questions of better facil- lties and greatsr safety" MT. Finley calls attention to the fact that while the Southern Railway has only been in existence for about twelve years, I during that time 1t has expended in thes South fon betterments and equip nfeHts. the sam of $9s, 4s2, ,s45, and that large contracts are now let for addi- tfonal equipments and improvements.
 The Advertiser comments this article to the thoughtful and careful consid- eration of the members of the present 
 No nasty action should be taken in these matters, and nothing should be done which would tend to stop the mar vicious development of the South. It Is generally known that the railroads now pay enc zAfth of all the taxes of the State. The bill recently passed by the Senate it is claimed will double this tax, thus imposing the burden at least of one-third of all the taxes of the State upon the railroads, while it is claimed that the bill introduced by Senator overton will probably reduce the present freight rates in Alabama 35 or 40 per cent. The present sched- ule of rates yields the railroads in Ala bama, on domestic business, about $f0,- 100000 per annum. If this is reduced S5 per cent. 1t would leave $6,500, ,o00. Now if from this is deducted the in- creased tax rate which is estimated Wal be ahopt $1.2OO,oo. double what it is. now 1t can be easily seen that the revenuestof the railroads will have to increase very rapidly to meet this situation.
 It has also been shown in recent hearings before the Railroad Commits sion, that on the entire business of the railroads, including inter and intra- State earnings, the railroads are not earning the legal rate of interest on their values. Now, If this is true, it is a serious question. for ic will not do to pass any laws which would be set aside by the courts. The Adver- tiser. while favoring rate reform and while in accord with the platform on that subject, feels that it is well to direct the attention of the representa- lives to these matters and to urge that nothing be done which will operate in- justice to any interest in Alabama.
 It is also claimed by the railroads that the increased tax rate, and the reduced revenue will wipe out all their net earnings It seems that the rail- roads have taken no steps and made no opposition to any pending measure affecting their interest. Is this silence due to the fact that they feel safe in their ability to set inside all radical ac- ton in the courts. Conservatism should always prevail in matters of this kind.