The Montgomery advertiser., 1908-08-09
RATES INCREASED
(ContInuea from Page one.l

The foregoing shows that the Gov erno's statement that you have only to so back year and a half and see what proportion their earnings have increased under the rates" Is true, so far as it relates to gross earnings, but that even at the period fixed by him, the results of operations were unfavor- able, because operating expenses in- creased in a much greater ratio than earnings increased. But why should the Governor ignore existing c0ndi- tions? He knows that under changed conditions the results of operations are disastrous, and yet he censures the railroads for endeavoring to reduce expenses. and asserts that the alleged reason for increase in rates, namely cost of operations. is a "subterfuge." and that the railroads have "cut every price of labor .. that they could cut" and for these reasons they should not be permitted to increase the charges for services rendered.
 The Governor Understands.
 The increase in rates which became effective on the first instant on pack ing house products. grain and grain products, from points on and beyond the Ohio and Mississippi Rivers, and from Nashville to Alabama, the Gov ernor "understands' will add $1.000. 900 per annum to the transportation charges on such property paid by the citizens of Alabama. Taking the ship ments of such property from the points named to points in Alabama for the twelve months ending December, 1907. as a basis, the gross receipts of all the railroads sh ou1d be increased s204.- 810. provided they transport the same quantity of packing-house products. grain products, during the year ending July, 1909, as they did during the year ended December, 1907. There has been a decrease of over 20 per cent in the movement of all kinds of property. and 1t is not unreasonable to assume that tn ere may be a. corresponding reduction in the movement. of packing-house products. grain and grain products.
 In asserting that the larger part of the increase in the transportation charge Twill come directly out of the poorest labor on earth that which pro- duces. cotton" the Governor ignores the fact that the labor which produces cotton also produces a considerable portion of the grain and grain products, and what are termed packing-house products, consumed. According to statistics compiled by the United states Government, the State of Alabama pro- duced 47,S49, 1892 bushels of corn In 1906. The total shipments by rail from points on and beyond the Ohio and MleGi8StpDl ttlNSESs anu ANOAi EdShfAAlSs to points in Alabama, Mobile not tn- cluded. during the year 1906. was B. 551,625 bushels. Assuming that the increase in rates which became effec- tive August 1 will be borne by the con sumer, 1. e., that the price or value Of the increase in the rate, may not con sideratfon be given to the fact that the value of packing products-i. e., bacon. beef, etc.. etc c.-and grain and grain products produced in the State of Alabama, Is correspondingly in- creased Taking the present retail prices at Montgomery, we find that me cents per hundred may Increase the price to the consumer, of bulk meat 27-l0O of one per cent; of hams, less than 2-1O of one per cent; of beef. pork and mutton, less than 2-1o of one per cent.
 No railroad in Alabama Is paying ,.interest on watered securi- tIes." No railroad in Alabama is pay ing It's owners a reasonable return up- on the cost of the property.
 To Increase Business.
 Every thoughtful man will concede that the interests of the people of Ala bama will be promoted if the railways can. in a legitimate way, without ma terial injury to any interest. increase their net revenues. which can only be done by reducing expenses and increas- ing receipts. If the railways fall to earn sufficient to pay the cost of oper- alton, interest on Indebtedness, taxes,