The Birmingham age-herald., 1907-06-26
RAILROADS EXPLAIN
 ADVANCE IN RATES Give Further Figures By Order
 of Judge Jones HELPED MANUFACTURERS Louisville and Nashville and North and South Railroads Claim That
 They Maintained Low Rates
 to Assist Infant Industries.
HELPED MANUFACTURERS

Montgomery, June 25.-(Special )-The Louisville and Nashville and the South and North railroad of Alabama, yester- day afternoon filed with the clerk of the United States court a statement in fur ther explanation of the advances made in the rates from points on their lines in Alabama. to various destinations in this state, requested by Judge Thomas G. Jones of the United States court, in the case of these roads vs. the state, and the Alabama railroad commission.
 The state is resisting the granting of an injunction to these roads in reference to the maximum rate bill, but are not re- sisting the other petitions for injunc- tions.
 The Louisville and Nashville sets forth that the rate clerk made an error in compiling the exhibit in reference to the rate on rough stone, in carloads Can't to Alabama City and Gadsden The rate was 31s on January l, and has not been raised. The rate on pig iron, Gadsden and Ironaton to Anniston was advanced since January 1, from 40 cents to 50 cents.
 Rates on building material, construction material and mine material were advanced from rates ranging as low as 1A cents per hundred pounds, or 25 cents per ton, to cents per hundred pounds As an explanation of this the road sets forth:
 Statement Made.
 Beginning many years ago, in the in- fancy of the iron and coal industries in Alabama, the Louisville and Nashville Railroad company extended aid in various forms to said industries. I the earlier stages this aid, in some instances, was in the form of free transportation. Later nominal charges were made for such transportation. In practically all instances the charges have, during the past sev- eral decades, been practically nominal, offering not the cost of service In other instances the rates have paid bare cost.
 Tt has never been sought by the com, pany to actually secure remuneration di- rect from the transportation of this class of business, and 1t cannot be said that the company has sought the freight in volyed to secure revenue direct from It's transportation. The benefits to the com pany have come in the development of the industries. and their upbuilding.
 "The condition of both the iron and coal business of the state Is now such that the industries can bear, on their construction material, the slightly higher rate than they could have done ten, twen- ty or thirty years ago; in short, the im- position of a fair rate charge would not be deterrent to an increase in the in- dustries, or the addition of new plants, whereas some years ago they were in need of such direct aid as the company was permitted to give them"
 Effect of Statute.
 After setting out a long list of fig ures the following is said
 .'The law which became effective Feb ruary 9, 1907. fixing as the maximum rates those in effect on January ], 1907, seeks to make the legal state-made rates all those which were voluntarily estab- lshed In aid of the industries. Thus the rate of 1A cents per one hundred pounds is south, in effect to be made the legal measure of rates on the same commodi- ties for similar distances in other direc- tions The rate in itself, is unreasonably low, does not pay cost of transportation and the company if it allowed 1t to re- main In effect, would have probably rem dered itself liable to a charge of unjust discrimination because of higher fig ure that was charged in many instances in other directions"
 The rate on ore, carloads, from Helen Bess to Alabama City was advanced from 1A cents per hundred pounds or 28 cents per gross ton to 30 cents per gross ton. The rate coal, carloads, for use of Western Railway of Alabama, Montgom- cry and Eufaula, and Albama Midland railroad. from Birmingham Mineral mines to Montgomery was advanced from 90 cents to s1 per ton. The company says:
 Local Coal Rate.
 .'The general rate on coal from Mont gomery proper for use of the public at large is, and has been for number of .ears past. s1 per ton minimum. The advance on the locomotive fuel coal was made to remove a possible discrimination.