The Montgomery advertiser., 1908-07-30
MAKES ANSWER TO GOV. COMER President M. H. Smith Challenges Statements GOVERNOR IS INACCURATE" Rates Have Not Been Raised
 Since 1887. President Of the L. sad N, After Re- viewing the Governors Pronuncia- menso. Declares He |. aIaeor-
 rigfbie.. snd win Not
 Inform Himself.
 
GOVERNOR IS INACCURATE.
President of the L. sad N. After Re- viewing the Goversor's Pronuneia-

President Milton H Smith of the Louisville and Nashville Railroad, in a letter to The Advertiser, takes notice of what he terms 'the infirmity of Governor Conner for making reckless statements" and challenges the asser- tions contained in the governors recent fiery pronunciamento. in which he an- nounced that the State would fight the proposed raise of interstate rates on Western and Southern lines.
 He points out specific errors and in- accuracies in the Governors pronuncia- mento and says of Governor Conner.
 He will not incur the slightest la- the important subjects of which he so persistently and energetically presumes to teach, '"
 President Smith takes issue with the Governor upon the statement made by the Governor:
 Some years ago they increased the freight rates a very large amount, and on that increase they were enabled to sell large blocks of securities that cost them nothing"
 Tn reply. President Smith makes the direct statement:
 There has been no increase in the rates of transportation of property from points on and beyond the Ohio and Mississippi Rivers to points south of the Memphis and Charleston and east of the Mobile and Ohio Railroads from the normal rates in effect in 1887. There have in that tirne been some reductions. No company operating railroads in Ala ban1a has paid interest on watered se- curities that cost them nothing. There is not a railroad in Alabama that Is able to pay it's owners a reasonable re- turn upon the cost of the property"
 President Smith, in his brief letter of refutation, does not touch upon the arr gument advanced by other aailroad of- f1cials, that since 1887. all commodities and all labor have greatly increased in price while railroad rates have either been reduced or have remained station ary. Tn discussing the situation. rail- road officials declare that everything fer which money IS spent has increased except transportation.
 MT. Smith. dealing with the Gov ernor's statement. writes:
 Louisville, Ky, July 2s. 1908. Montgomery Advertiser:
 In your issue of the 23rd. you pub fish statement made by Hon. B. B. Conner, which. in important respects. Is
 He says. "on the first of August there goes into effect the most wide spread increase of freight rates issued ih years" He refers to an increase From all points on and beyond the ohio and Mississippi Rivers to all points in the territory south of the Memphis and Charleston and east of the Mobile and Ohio Railroads. on packing house products of cents. and on grain and grain products of cents per hun dred. Taking the present price of family flour, which is not less than $6.S0 per barrel. the proposed increase is about seven-tenths of one per cent.
 He also says: Some years ago they increased the freight rates a very large amount, and on that increase they were enabled to sell large blocks of securities that cost them nothing"
 There has been no increase in the rates for transportation of property from points on and beyond the Ohio and Mississippi Rivers to points south of the Memphis and Charleston, and east of the Mobile and Ohio Railroads, from the normal rates in effeet in 1887. There have. during that time, been some reductions. No company operat- ing railroads in Alabama has paid ''in. terest on watered securities" and none have sold large blocks of securities that cost them nothing" There Is not railroad in Alabama that Is able to pay It's owners a reasonable return upon the cost of the property.
 From the foregoing, 1t is evident that the Governor has not been cured of his infrmity for making reckless state- nerlts. He is incorrigible He will not incur the slight labor required to inform himself upon the important subjects of which he So persistentIy and energetically presumes to teach
 Milton H. Smith.