The Montgomery advertiser., 1908-08-09

and a reasonable return to the stock holders. their credit will be destroyed and they will be unable to obtain ad- ditional capital that may be needed to provide Increased facilities The Louis- vile and Nashville Railroad Company has expended over s30.000.000 In pro- viding increased facilities on its roads in Alabama. not including the cost of the main line from Elkmont to Grand Bay. Much the larger part of this capital was obtained on mortgage se- curities; some by the sale of stock; and a smaller portion from earnings. If the company fails to earn sufficient to permit of It's continuing to pay It's stockholders reasonable dividend its credit will be very materially affected. The laws of many of the States, espe- clally New York and New England States. prohibit savings banks from purchasing the bonds of railways that do not pay dividends. If the frenzied efforts of Governor Conner and those acting with him. to destroy the rail- ways or render their operations un- profitable, are successful, the resulting effect upon the general business of the country will be such that increased transportation facilities will not be created. leaving the existing railway lines to struggle as best they may with their existing indebtedness.
 It must be apparent to every thoughtful citizen of Alabama that the prosperity of it's citizens Is largely de- pendent upon the prosperity of the railroads. In a statement made by me to the Alabama Railroad Commission. Hon. B. B. Conner President at Mont gomery. on May 5, 1905, called atten- tion to the fact that the roads operat- ed by the L. & N. Railroad Company in Alabama, as originally constructed served the purposes for which they were created, but as the operations of the company are extended and the vol- ume of traffic increased, 1t is neces- sary that large sums be expended in reconstructing the existing lines, con- structing extensions and feeders. and adding to the equipment" Before the same Commission on April B. 1905, stated that "lf this Commission en- ters upon campaign of antagonism against the railroads. If 1t should re- duca the rates SO as to make the oper- atlons still more unprofitable. 1t will certainly tend to paralyze. If 1t does not paralyze. the efforts to get addi- tional capital, and will render futile the efforts of the railways to increase the trafiic and develop the business of the State and of the country"
 Some of the Effecta,
 As an illustration, during the month of May, 1906. the Louisville and Nash As~ S92.10s feet of yellow pine lumber, mostly in Alabama, for which 1t paid an average price of s25.10 per thou sand. Tn the month of May. 1908. 1t purchased 42,094 feet of yellow pine lumber. mostly in Alabama. for which 1t paid an average price of sIA4s per thousand. During the calendar year 1907, the Louisville and Nashville Rail- road Company purchased from the mills at Ensley 42.000 tons of steel rails. During the year 1908 it will purchase from the same mill 10000 tons.
 If 1t be conceded that the interests of the citizens of Alabama, will be pro- noted if the railways can be operated profitably, 1t follows that their repre- sentatives--tbe Governor Railroad Commission, and other officials--instead of doing all in their power to destroy the credit of railroads and embarrass their operations. should exert them selves, ofEicialiy and otherwise. to pro- mote successful operation by encourag- ing the citizens to cheerful1y pay . reasonable compensation for services rendered, and. so far as possible, leave them free from embarrassing and un- reasonable regulations which hamper and add to the cost of operation.
 Milton H Smith.