The Birmingham age-herald., 1909-04-02
Interstate Commerce COmmis
 sion Takes Up Hearing
JUDGE WEAKLEY SPEAKS
Alabama Attorney Aims to Show That Railroads Are Not as Bad Off As They Say They
 Are.

Washington, April 1.-(Special.) .)-The in- terstate commerce commission today heard arguments in the cases of the railroad commission of Alabama vs. the Louisville and Nashville Railroad com pany; the railroad commission of Geor- gia vs the Atlantic Coast Line and the A. P. Morgan Grain company vs the Atlantic Coast Line. The cases will be completed tomorrow. The compliments are represented by Edgar Watkins, Henry G. Selheimer Samuel D. Weakley and James K Hines. The defendants were represented by w. G. Dearing, Ed Bax- ter Walton Morre and Claudian North rop.
 On August 1, 1908, the railroads in- creased the rate on fresh meal by the car load three cents a hundred pounds, on grain and hay two cents per hund- red pounds and on packing house pro- ducts three cents per hundred pounds. The complainants claim that the ad- vance is unjust and unreasonable and that the railroads should not be per- mitted to make such an advance on articles of prime importance. The rail- roads say they are justified in the ad- vance because of the necessity for more revenue and that this advance is pre- liminary to a general advance. In con cluding his argument Judge w. G. Dear ing of Louisville, general attorney for the Louisville and Nashville ,said;
 Solving Problems.
 s.The southeastern territory is a mga- nificent portion of our country. Its fu- ture development and greatness will depend upon the manner in which they solve transportation problems. broad and liberal. policy on the part of the people will very materially aid the roads in making a dense population, thriving business throughout the section. and a mutual good will and feeling. Indeed this record fails to show any general or ex- tensive opposition on the part of the business man of that section to this increase in freight rates.
 "Is it to the interest of roads to up- build and not destroy. The increase of future net earnings depends upon the prosperity of the people. It has been is necessary. Then clements of costs entering into consideration, maintenance, construction and operation, have mat erially increased. Rates have decreased, net earnings nave been growing less and less and unless something is done there will soon be no such things as net earn ings. The increase in rates will, scarce ly be felt by the people in that section and this increase is absolutely necessary for the continued prosperity of the rail- road companies ot the south"
 In the course of his argument on the case Judge Samuel D. Weakley, repre- senting the railroad commission of Ala bama, said:
 Judge WeakIeys Views.
 ..we earnestly contend that this cry ing need of the railroads for more track, more compliment. more facilities and more extensions, is not one which it is the duty of the public to supply by pay ing increased rates, nor one which this commission should consider in determin- ing the reasonableness of the rates un- der consideration. Nor is the possible de- velopment of the territory traversed by these roads as result of increased fa- clities of the railroads result which justifies an increase in rates or a con sideration which should influence this commission.
 However great the benefit to the pub lie from this development the public can not be taxed by the railroads for such development in order mat the railroads may make more money. When the bus inesss of railroads becomes so great that they must have more track. more equip ment and more facilities of every kind to handle 1t, the money to acquire these ad- ditional facilities must be furnished by capital and not from earnings.
 .sThe railroads cannot justly or legally demand the right to earn sufficient to acquire these facilities. They must first acquire the facilities by acquiring new and additional capital and then demand the right to earn a fair return on the increased capital or increased value of the property They have no more right to demand that the public furnish the money necessary for the additional facil- ities by paying increased rates than they had to demand that the public furnish the money for the original construction of the road.
 "The railroads are legally entitled to earn fair return on the value of the property employed for the convenience of the public and this is the limit of what they can legally demand