The Montgomery advertiser., 1908-02-21
COMMISSION NOT INFORMED L. & N. President Makes
 a Statement. ANSWERS ROOSEVELT LETTER Reeites Figures to Show Cause for
 Curtailment. Corrects statenest Made sy shs Tres sd~nt in His Letter te the In- tefssste Commeree ces.-
 mission.
ANSWERS ROOSEVELT LETTER

New York. Feb. 20--President Mii- ton. H. smith of the Louisville and Nashville Railroad Company. in Q statement given to the President to- day comments upon the letter which, on Tuesday, President Roosevelt sent to tho Interstate Commerce. Commis- sion. In his communication the Pres ident directed the Commission to com pile data concerning conditions on tne Louisville and Nashville and other railroads which have already. or might, result in q reduction of wages to ern- ployes and consequent controversy. President Smith first states that the Interstate Commerce Commission IS not at present in possession of the data to enable 1t to promptly advise as to the conditions obtainins which justify a reduction in pay. He con tinues:
 such data will show. that during the past six years there has been a material increase In the pay of nearly all classes of employees, the last im- portant increase of many classes be- coming effective March 14. 1907; that during the Ave years ending Junes 1908. there was a material increase in the gross and net revenues of the com- pany; that for the year ending June. 1907, there was large increase m gross revenue with a slight or nomi- nal increase in net revenues; and for the six months ending December. 1901. there waa a small increase in gross revenues, ta large increase in operat- ing expenses and a corresponding de- crease Ia net revenues:''
 He adds .'The result of Operatings for the month of December was as
 EmormouH Decrease.
 Gross earnings decreased $494.94x; operating expenses increased S296.4AO: net earniuEs decreased $99ls5Se. Add ing other income and aeducttug charges against income, taxes Inter est. etc, not including dividenda. "a defctt IS shown 1f a237.a1s.s f
 Enforced cuFtallmept fespltsd in 2 Ecut of soeicera sniarias nf and. 10 PCT ssns on Esss.sary 2 t4st aaa n9s s,. i tlAbir wa9es win Do reduced fo ep- proxiTnateIy ths3 pay they received prior to the advance on March I. 1907. MT. Smith denies the likeithood 0k a controversy with the employees who, no believes, will Loyalty accept the un- avoidabie cut
 The statement concludes: 'T make the following quotation from the Pres idant's communication. in which he
 
 iidantial character from the General Manager of the Louisville and Nash vile Committee to the System Chair man of the Brotherhood of Locomotive Engineers and the Chairman Of the Order of Railway Conductors:
 <" One of them. the Louisville and NashviIie. in announcing the reduction. states that the drastic laws inimicai to the interests of the railroads that have in the last year or two been en- acted by Congress and the State Leg islatures, are largely. sor chiefly, re- sponsible for conditions requiring the reduction The following is more extended quotation from the same conn munication:
 ".with the present conditions com fronting us, and with the drastic laws inimical to the interests of the rail- roads, that have in the last year or two been enacted by Congress and by the State Legislatures. which have re- suited and will undoubtedly continue 10 result, in the loss of revenue and in- creased expense. thereby greatly im- pairing the company's credit, 1t Is clearly apparent that there exists an argent necessity for reduction in the company's expenses.
 .'From the foregoing it will be seen that the General Manager did not as- sert that the legislation was largely or cliIeffy' responsible for the condt- tions requiring the reduction. but that such Iegislation has resulted and will undoubtedly continue to result in loss of revenue and increased expense-- a statement which l am sure no one will attempt to controvert.