Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-02-16
Earnings of Georgia Roads
During Panic Year Fell Off
ID Against IS Per Cent
Loss Through the Country.
FOUR BIG LINES
ACTUALLY INCREASED
THEIR EARNINGS
The People of Georgia Cannot Afford
To Abandon Present Policy of Reg
ulation, Declares Governor in Inn
portant Statement.

Gov. Holxe Smith Saturday gave to the
press an important statement in regard
to the net earnings of the railroads OF
Georgia for the year covered by the panic
The figures are taken from official re-
ports to the railroad commission, and
show that the net earnings of four of the
big lines actually increased, while the
[ falling of Of net earnings of eight OF the
principal systems in Georgia was but one
and one-half per cent, against loss or
fifteen per cent by the roads of the coun-
/ try as a whole.
The Governors Statement
| The governors statement follows:
1 Much has been said during the pass
4 twelve months to create the impression
that the railroads of the state have been
crippled by what is termed reform pol
| icies.
"Quite recently certain railroad im-
provements have been promised provided
! Georgia is real good and 'repeals some OF
| it's anti-corporation acts.
at believe that the legislation and adj
ministration in Georgia affecting railroads
and public service companies has been OF
great value and that q reactionary pollcy
would be a public calamity. For this
reason I wish to call attention BREEZY 10
what has taken place, and to the imam
ciaI showings of the principal Georgia
railroads during the year ending July
3
1st, 1908.
| Transportation companies and other
public service companies are given speciai
powers by the state, and are to large
extent necessarily monopolies. The courts
of America and England agree that the
state and nation owe to the public the
duty of requiring such companies TO give
proper service at reasonable rates. 10
insist upon the performance by state and
nation of this duty is not hostllity 70 rall-
| road companies. 1t is simply demand
for justice to both the companies and the
public.
'@rhe legislation passed in Georgia pre-
vides for a railroad commission with en-
larged powers to do no wrong to the COM
| panies but to see that to their customers
are accorded legitimate rights
Cannot Name Hostile Laws
'Tt is noticeable that the critics do not
dare name the legislation which they
/ say should be repealed. The legislation
and administration in Georgia on this
subject may be compared to that of New
York state without fear that our state
| will lose by the comparison.
THE administration has required bet
ter road beds and better service. II has
prevented the suspension of train service
necessary for public convenience. II mas
| required the settlement of claims due 10
shippers It has required service for fac-
tories andl ocal plants.
cit has prevented the wages Of employees
from being arbitrarily cut.
cit has stopped the free pass evil, ana
has reduced the cost of travel to those
| who pay.
''The public service corporations have
been compelled to pay more nearly their
| Just taxes.
aaThis IS the record. From what part
of it shall the state recede?
but have the railroads been crippled,
or has the outcry been rather once with
out reason unless for political effect?
"The railroad companies are required
/ TO file with the railroad commission state
ments showing the business which they
do annually. These reports cover the bust
ness of each fiscal year running from July
1st to July LIST.
A Remarkable Showing
THE reports of the nine largest rail-
roads, with the exception of the Seaooard,
are now in the hands Of the railroad COM
mission. The figures which l shall use
are from these reports.
Eight railroad companies In Georgia
from July 1, 1907 to July 1, 1905, made
net profits as follows:
Central of Georgia. ....$2, 49, izs.l ~
Western and Atlantic. 6Ss,24sH
Georgia railroad...... 4s2,Sl4.oz
Louisville and Nashville. 149, $3.50
Atlantic Coast Line. ........... 1AI,I4o.oI
Atlanta and West Point. 2S5, 3S5.sS
| Southern railway. ...... 1,l4l,S4
Georgia Southern and Florida. 455.O21.5e
Total net profits of roads. Sc. S67, 80
'sThe net profits of four of these roads
increased for the year ending July !, 1905
over their net profits for the year ending
July 1, 1907, as follows:
Central of Georgia.. ..... .$zl8S1o-Sd
Georgia railroad...... 1889
Louisville and Nashville. 99,7S1.57
Western and Atlantic. 100,e7s.d
Queer Figures of the West Point
while the Atlanta and West Point
showed a decrease of net prof1ts amount
ing to 1888 $3.50 for 1905, 1t also showed
an increase of operating expenses OF H5S,-
1870. Without some reason for this In
crease of operating expenses at time
when all roads were economizing, 1t may
fairly be attributed to changes in book
keeping rather than to real losses.
''The other railroads which showed loss
of net earnings are partly located in por-
lions of the state which indicate de-
pendence to a considerable extent upoa
the transportation of lumber and turpen-
tine.
The lessened use Of these comnnodi-
ties in other parts OF the United States,
due to the effect Of the panic in those
states, to a large extent accounts for
the shrinkage of business with these
roads. 1t is also true that the Atlanta
Birminham and Atlantic railroad cut
somewhat into their business.
In spite OF the fact that the year
ending July 1, 1908, was the year OF this
panic when all business was more or
| less affected throughout the entire
| country, the eight railroads to which
1 have called attention show as
whole only a loss OF net profits In
Georgia amounting to slightly more