The Montgomery advertiser., 1908-01-23

Grating expenses The roads mad mo-
shown fairly their real earnings.
Towards the close OF his address. Mr..
Selheimer declared that the Supreme
Court had never struck down a rate
which paid any returns at all In the In
vestment. He said that q search of the
decisions OF the Supreme Court OF the
United States would show that the
court never declared a rate confisca-
tory IL 1t paid any returns on the In
vestment" For the court to strike
down rate" Mr.. Selheimer said. IL
was necessary for II to be shown that
the rate charger brought In no return
at all. that 1t resulted In actual deficit.
III possible would like for you to
writs me brief on that particular
point.y said Judge Jones'.
Il would be glad 10 do So" said Mr..
Selheimer. but think that we have
already covered It in the briefs submit
ted.
T. M. Cunningham replied to Mr..
Selheimer. so far as 1t applied to the
Central of Georgia. Mr.. Cunningham
defended the system Of book keeping
employed BY his road. He took issue,
too. with some OF the figures which had
been quoted by Mr.. Selheimer. as AFFECT
ing the Central. The Central of Geor-
gia, as a matter Of fact. has for three
years past divided as nearly as 1t
could in Its book keeping the cost and
return from its Interstate business and
the cost and returns from its mira
state business. His road was the first
In the South to adopt this system. Mr..
Cunningham said.
"But we saw this coming" he said.
1--WE saw this trouble ahead of us. We
knew it was coming and we prepared
for 1t as nearly as y~e could. We Ovid
cd our business In our bookkeeping and
we had our business In it's books as
nearly systematized as 1t Is possible.
MFR. Cunningham refuted the charge
that his road had made overcharge
against Its operating expenses and he
aenied the charge that his road had
been overcapttalfzed or that there had
been any watering of stock. AS q
matter OF fact" said Mr.. Cunningham.
"the capitalization OF the property OF
mile more than 1t was twenty-five
years ago. With all the growth Of the
country, and with some years OF prose
perity, the Central OF Georgia has In
creased Its capital stock only $50 q
mile
He went further into the assertion
that the various roads had charged
against the operating expenses accounts
that should not have been SO charged.
lie QeJalle0 ~ ASuBtu Wh1s enO1S
charges had been spent for, such as the
purchase Of engines and other equip
ment.
When Mr., Cunningham had conclud-
ed his brief argument, Major r. ~.
Steiner spoke for the Western OF Ala
bama He began by sayings
"If there ever was a clear case where
q temporary injunction should be Is
sued it is in the case of the Western OF
Alabama, under the showing that we
hae made to your honor"
Major Steiner particularly objected
to some of the conclusions that Mr..
Selheimer had drawn from the figures
given in affidavfts filed In the West
ern. Mr. Selheimer. he contended. had
probably through error misquoted the
figures and he set out to give the fig-
ures as they were set down In the
afiidavits of the oftlcials of the roads.
Under the favorable conditions which
had existed--prosperous times ana the
old rates-the Western had made but
the smallest kind of q return on its
property. He doubted IL the rates were
left undisturbed under conditions which
now exist IL the road could make any
return. 1t was plainly shown in the
bills filed that If the new rates were
administered, the company would faco
a deficit.
Major Steiner's argument was short,
and was devoted to the refutation Of
figures quoted by Mr.. Selheimer. and
the Interpretation put ON them. It
dealt. however, with the interstate and
the fntrastates business Of the road and
the effect of the new acts on the gem
eral business OF the Western OF Ala
bama.